Title 39 Postal Service

Revised as of July 1, 2018

Containing a codification of documents of general applicability and future effect

As of July 1, 2018

Published by the Office of the Federal Register National Archives and Records Administration as a Special Edition of the Federal Register

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Legal Status and Use of Seals and Logos The seal of the National Archives and Records Administration (NARA) authenticates the Code of Federal Regulations (CFR) as the official codification of Federal regulations established under the Federal Register Act. Under the provisions of 44 U.S.C. 1507, the contents of the CFR, a special edition of the Federal Register, shall be judicially noticed. The CFR is prima facie evidence of the original documents published in the Federal Register (44 U.S.C. 1510). It is prohibited to use NARA’s official seal and the stylized Code of Federal Regulations logo on any republication of this material without the express, written permission of the Archivist of the United States or the Archivist’s designee. Any person using NARA’s official seals and logos in a manner inconsistent with the provisions of 36 CFR part 1200 is subject to the penalties specified in 18 U.S.C. 506, 701, and 1017.

Use of ISBN Prefix This is the Official U.S. Government edition of this publication and is herein identified to certify its authenticity. Use of the 0–16 ISBN prefix is for U.S. Government Publishing Office Official Edi- tions only. The Superintendent of Documents of the U.S. Govern- ment Publishing Office requests that any reprinted edition clearly be labeled as a copy of the authentic work with a new ISBN.

U.S. GOVERNMENT PUBLISHING OFFICE U.S. Superintendent of Documents • Washington, DC 20402–0001 http://bookstore.gpo.gov Phone: toll-free (866) 512-1800; DC area (202) 512-1800

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Page Explanation ...... v

Title 39:

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

Chapter III—Postal Regulatory Commission ...... 361

Finding Aids:

Table of CFR Titles and Chapters ...... 511

Alphabetical List of Agencies Appearing in the CFR ...... 531

List of CFR Sections Affected ...... 541

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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, 2018), 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 Sep<11>2014 17:31 Aug 21, 2018 Jkt 244150 PO 00000 Frm 00005 Fmt 8008 Sfmt 8092 Q:\39\39V1.TXT PC31 kpayne on VMOFRWIN702 with $$_JOB 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. PAST PROVISIONS OF THE CODE Provisions of the Code that are no longer in force and effect as of the revision date stated on the cover of each volume are not carried. Code users may find the text of provisions in effect on any given date in the past by using the appropriate List of CFR Sections Affected (LSA). For the convenience of the reader, a ‘‘List of CFR Sections Affected’’ is published at the end of each CFR volume. For changes to the Code prior to the LSA listings at the end of the volume, consult previous annual editions of the LSA. For changes to the Code prior to 2001, consult the List of CFR Sections Affected compilations, published for 1949- 1963, 1964-1972, 1973-1985, and 1986-2000. ‘‘[RESERVED]’’ TERMINOLOGY The term ‘‘[Reserved]’’ is used as a place holder within the Code of Federal Regulations. An agency may add regulatory information at a ‘‘[Reserved]’’ location at any time. Occasionally ‘‘[Reserved]’’ is used editorially to indicate that a portion of the CFR was left vacant and not accidentally dropped due to a printing or computer error. 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. What if the material incorporated by reference cannot be found? If you have any problem locating or obtaining a copy of material listed 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, 8601 Adelphi Road, College Park, MD 20740-6001, 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 Authorities and Rules. A list of CFR titles, chapters, subchapters, and parts and an alphabetical list of agencies publishing in the CFR are also included in this volume.

VerDate Sep<11>2014 17:31 Aug 21, 2018 Jkt 244150 PO 00000 Frm 00006 Fmt 8008 Sfmt 8092 Q:\39\39V1.TXT PC31 kpayne on VMOFRWIN702 with $$_JOB 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. 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, 8601 Adelphi Road, College Park, MD 20740-6001 or e-mail [email protected]. SALES The Government Publishing 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 202-512-2104, 24 hours a day. For payment by check, write to: US Government Publishing Office – New Orders, P.O. Box 979050, St. Louis, MO 63197-9000. ELECTRONIC SERVICES The full text of the Code of Federal Regulations, the LSA (List of CFR Sections Affected), The United States Government Manual, the Federal Register, Public Laws, Public Papers of the Presidents of the United States, Compilation of Presi- dential Documents and the Privacy Act Compilation are available in electronic format via www.govinfo.gov. For more information, contact the GPO Customer Contact Center, U.S. Government Publishing Office. Phone 202-512-1800, or 866- 512-1800 (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/federal-register. The e-CFR is a regularly updated, unofficial editorial compilation of CFR material and Federal Register amendments, produced by the Office of the Federal Register and the Government Publishing Office. It is available at www.ecfr.gov.

OLIVER A. POTTS, Director, Office of the Federal Register July 1, 2018

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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, 2018.

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 this volume, Gabrielle E. Burns was Chief Editor. The Code of Federal Regulations publication program is under the direction of John Hyrum Martinez, assisted by Stephen J. Frattini.

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Part

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

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

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

Part Page

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

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

SUBCHAPTER C—POST OFFICE SERVICES [DOMESTIC MAIL]

GENERAL INFORMATION ON POSTAL SERVICE 111 General information on Postal Service ...... 26 113 Hazardous, restricted, and perishable mail ...... 28 121 Service standards for market-dominant mail products ...... 28 122 Service standards for market-dominant special services products ...... 35

SUBCHAPTER D—ORGANIZATION AND ADMINISTRATION 211 Application of regulations ...... 37 221 General organization...... 38 222 Delegations of authority ...... 41

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223 Relationships and communication channels ...... 42

INSPECTION SERVICE REQUIREMENTS 230 Office of Inspector General ...... 43 231 Protection of post offices ...... 52 232 Conduct on postal property ...... 53 233 Inspection Service authority ...... 56 235 Defense Department liaison ...... 88

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

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

RECORDS AND INFORMATION 261 Records and information management ...... 109 262 Records and information management definitions 110 263 Records retention and disposition ...... 113 264 Vital records...... 113 265 Production or disclosure of material or information ...... 114 266 Privacy of information ...... 141 267 Protection of information ...... 153 268 Privacy of information—employee rules of conduct 155 273 Administration of Program Fraud Civil Remedies Act ...... 156

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

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

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320 Suspension of the private express statutes ...... 167

SUBCHAPTER F—PERSONNEL 447 Rules of conduct for postal employees ...... 174 491 Garnishment of salaries of employees of the Postal Service and the Postal Rate Commission ...... 178 492 Administrative wage garnishment from non-postal sources ...... 181

SUBCHAPTER G—POSTAGE PROGRAMS 501 Authorization to manufacture and distribute postage meters ...... 183 551 Semipostal stamp program ...... 202

SUBCHAPTER H—PROCUREMENT SYSTEM FOR THE U.S. POSTAL SERVICE: INTELLECTUAL PROPERTY RIGHTS OTHER THAN PATENTS 601 Purchasing of property and services ...... 208 602 Intellectual property rights other than patents ..... 218

SUBCHAPTER I [RESERVED]

SUBCHAPTER J—POSTAL SERVICE DEBT OBLIGATIONS; DISBURSEMENT POSTAL MONEY ORDERS 760 Applicability of Treasury Department regulations 220 761 Book-entry procedures...... 220 762 Disbursement postal money orders ...... 223

SUBCHAPTER K—ENVIRONMENTAL REGULATIONS 775 National Environmental Policy Act procedures ..... 228 776 Floodplain and wetland procedures ...... 238

SUBCHAPTER L—SPECIAL REGULATIONS 777 Relocation assistance and real property acquisition policies ...... 243 778 Intergovernmental review of Postal Service facility actions ...... 262

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 ...... 266 5

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913 Procedures for the issuance of administrative subpoenas under 39 U.S.C. 3016 ...... 269 916 [Reserved]

RULES OF PROCEDURE BEFORE THE MAIL PROCESSING DEPARTMENT 927 Rules of procedure relating to fines, deductions, and damages ...... 271 931 Rules of procedure governing the compromise of obligations ...... 273

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 ...... 273

RULES OF PROCEDURE BEFORE THE JUDICIAL OFFICER 951 Procedure governing the eligibility of persons to practice before the Postal Service ...... 275 952 Rules of practice in proceedings relative to false representation and lottery orders ...... 277 953 Rules of practice in proceedings relative to mailability ...... 288 954 Rules of practice in proceedings relative to the denial, suspension, or revocation of periodicals mail privileges ...... 291 955 Rules of practice before the Postal Service Board of Contract Appeals ...... 297 956 [Reserved] 957 Rules of practice in proceedings relative to debarment from contracting ...... 309 958 Rules of practice in proceedings relative to civil penalties, clean-up costs and damages for violation of hazardous material regulations ...... 312 959 Rules of practice in proceedings relative to the private express statutes ...... 318 960 Rules relative to implementation of the Equal Ac- cess to Justice Act in Postal Service proceedings 326 961 Rules of practice in proceedings under section 5 of the Debt Collection Act ...... 332 962 Rules of practice in proceedings relative to the Program Fraud Civil Remedies Act ...... 336 963 Rules of practice in proceedings relative to violations of the pandering advertisements statute, 39 U.S.C. 3008 ...... 344

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964 Rules of practice governing disposition of mail withheld from delivery pursuant to 39 U.S.C. 3003, 3004 ...... 348 965 Rules of practice in proceedings relative to mail disputes ...... 353 966 Rules of practice in proceedings relative to administrative offsets initiated against former employees of the Postal Service ...... 355 967–999 [Reserved]

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Sec. Issue 11 ...... December 24, 1992. 20.1 International Mail Manual; incorpora- Issue 12 ...... July 8, 1993. Issue 13 ...... February 3, 1994. tion by reference. Issue 14 ...... August 4, 1994. 20.2 Effective date of the International Mail Issue 15 ...... July 9, 1995. Manual. Issue 16 ...... January 4, 1996. 20.3 Availability of the International Mail Issue 17 ...... September 12, 1996. Manual. Issue 18 ...... June 9, 1997. 20.4 Amendments to the International Mail Issue 19 ...... October 9, 1997. Manual. Issue 20 ...... July 2, 1998. Issue 21 ...... May 3, 1999. 20.5 [Reserved] Issue 22 ...... January 1, 2000. AUTHORITY: 5 U.S.C. 552(a); 13 U.S.C. 301– Issue 23 ...... July 1, 2000. 307; 18 U.S.C. 1692–1737; 39 U.S.C. 101, 401, 403, Issue 24 ...... January 1, 2001. Issue 25 ...... July 1, 2001. 404, 407, 414, 416, 3001–3011, 3201–3219, 3403–3406, Issue 26 ...... January 1, 2002. 3621, 3622, 3626, 3632, 3633, and 5001. Issue 27 ...... June 30, 2002. Issue 28 ...... January 1, 2003. SOURCE: 69 FR 59546, Oct. 5, 2004, unless Issue 29 ...... July 1, 2003. otherwise noted. Issue 30 ...... August 1, 2004. Issue 31 ...... May 31, 2005. § 20.1 International Mail Manual; in- Issue 35 ...... May 12, 2008. corporation by reference. Issue 36 ...... May 11, 2009. IMM ...... April 17, 2011. (a) Section 552(a) of title 5, U.S.C., re- IMM ...... June 24, 2012. lating to the public information re- IMM ...... January 26, 2015. quirements of the Administrative Pro- IMM ...... July 11, 2016. IMM ...... January 22, 2017. cedure Act, provides in pertinent part IMM ...... March 5, 2018. that matter reasonably available to the class of persons affected thereby is [75 FR 34017, June 16, 2010, as amended at 76 deemed published in the FEDERAL REG- FR 50414, Aug. 15, 2011; 77 FR 64724, Oct. 23, ISTER when incorporated by reference 2012; 80 FR 13493, Mar. 16, 2015; 81 FR 66822, therein with the approval of the Direc- Sept. 29, 2016; 82 FR 29005, June 27, 2017; 83 FR tor of the Federal Register. In con- 17922, Apr. 25, 2018] formity with that provision and 39 U.S.C. 410(b)(1), and as provided in this § 20.2 Effective date of the Inter- part, the Postal Service hereby incor- national Mail Manual. porates by reference its International The provisions of the International Mail Manual (IMM), issued March 5, Mail Manual issued March 5, 2018, are 2018. The Director of the Federal Reg- applicable with respect to the inter- ister approves this incorporation by national mail services of the Postal reference in accordance with 5 U.S.C. Service. 552(a) and 1 CFR part 51. (b) The current Issue of the IMM is [83 FR 17922, Apr. 25, 2018] incorporated by reference in paragraph § 20.3 Availability of the International (a) of this section. Successive Issues of Mail Manual. the IMM are listed in Table 1: Copies of the International Mail TABLE 1 TO PARAGRAPH (b) Manual may be purchased from the Su- perintendent of Documents, U.S. Gov- International Mail Manual Date of issuance ernment Printing Office, Washington, Issue 1 ...... November 13, 1981. DC 20402–9371. The IMM is available for Issue 2 ...... March 1, 1983. examination on the Internet at http:// Issue 3 ...... July 4, 1985. pe.usps.gov. Copies are available for Issue 4 ...... September 18, 1986. Issue 5 ...... April 21, 1988. public inspection during regular busi- Issue 6 ...... October 5, 1988. ness hours at area and district offices Issue 7 ...... July 20, 1989. of the Postal Service and at all post of- Issue 8 ...... June 28, 1990. Issue 9 ...... February 3, 1991. fices, classified stations, and classified Issue 10 ...... June 25, 1992. branches. You may also inspect a copy

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at the U.S. Postal Service Library, 475 § 20.4 Amendments to the Inter- L’Enfant Plaza West SW., Washington, national Mail Manual. DC 20260–1641, or at the National Ar- New issues of the International Mail chives and Records Administration Manual will be incorporated by ref- (NARA). For information on the avail- erence into this part and will be availability of this material at NARA, call able at http://pe.usps.gov. The text of 202–741–6030, or go to: http:// amendments to the International Mail www.archives.gov/federallregister/ Manual will be published in the FED- codeloflfederallregulations/ ERAL REGISTER and will be available in ibrllocations.html. the Postal Bulletin, copies of which may be accessed at http://www.usps.com/ cpim/ftp/bulletin/pb.htm.

§ 20.5 [Reserved]

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

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

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Transmittal letter Dated FEDERAL REG- § 113.1 Scope and purpose. for issue ISTER publication This part applies to the mailing and 55 ...... January 10, 2000 ...... 65 FR 1321. shipment of hazardous, restricted, and 56 ...... January 7, 2001 ...... 66 FR 8370. 57 ...... June 30, 2002 ...... 67 FR 46875. perishable materials. In order to mail 58 ...... August 10, 2003 ...... 68 FR 66018. hazardous, restricted, and perishable Premier Edition .. January 6, 2005 ...... 70 FR 14535. materials, mailers must properly pre- Issue 300 ...... January 8, 2006 ...... 73 FR 25509. pare their mailings in accordance with Issue 300 ...... July 15, 2007 ...... 73 FR 25509. the standards contained in USPS Pub- Issue 300 ...... May 12, 2008 ...... 75 FR 31702. Issue 300 ...... May 11, 2009 ...... 75 FR 31702. lication 52 (incorporated by reference, Issue 300 ...... May 7, 2008 ...... 73 FR 25508. see § 113.2). Issue 300 ...... May 11, 2009 ...... 75 FR 31702. DMM 300 ...... July 5, 2011 ...... 76 FR 48722. § 113.2 Incorporation by reference. DMM 300 ...... June 24, 2012 ...... 77 FR 45246. DMM 300 ...... January 25, 2015 ...... 80 FR 13492. (a) Certain material is incorporated DMM 300 ...... July 11, 2016 ...... 81 FR 66822. by reference into this part with the ap- DMM ...... January 22, 2017 ...... 82 FR 28559. proval of the Director of the Federal DMM ...... March 5, 2018 ...... 83 FR 17922. Register under 5 U.S.C. 552(a) and 1 CFR part 51. All approved material is [45 FR 40115, June 13, 1980] available for inspection by appoint- EDITORIAL NOTE: For FEDERAL REGISTER ci- ment only, during normal hours of op- tations affecting § 111.3, see the List of CFR eration, at the U.S. Postal Service Li- Sections Affected, which appears in the brary, 475 L’Enfant Plaza West SW, Finding Aids section of the printed volume Washington, DC 20260–1641 (call 202–268– and at www.fdsys.gov. 2906), and is available from the sources § 111.4 Approval of the Director of the listed below. It is also available for in- Federal Register. spection at the National Archives and Records Administration (NARA). For Incorporation by reference of the information on the availability of this publication now titled the Mailing Standards of the United States Postal material at NARA, call 202–741–6030 or Service, Domestic Mail Manual was ap- go to www.archives.gov/federal-register/ proved by the Director of the Federal cfr/ibr-locations.html. Register under 5 U.S.C 552(a) and 1 CFR (b) United States Postal Service, part 51 on April 25, 2018. Product Classification Office, USPS Headquarters, 475 L’Enfant Plaza SW, (5 U.S.C. 552(a); 39 U.S.C. 401, 404, 407, 408, Room 4446, Washington, DC 20260–5013: 3001–3011, 3201–3218, 3403–3405, 3601, 3621; 42 U.S.C. 1973cc–13, 1973cc–14) http://pe.usps.com/text/pub52/welcome.htm. (1) Publication 52, Hazardous, Re- [49 FR 47389, Dec. 4, 1984, as amended at 70 stricted and Perishable Mail, dated Au- FR 14535, Mar. 23, 2005; 73 FR 25509, May 7, 2008; 75 FR 31702, June 4, 2010; 76 FR 48722, gust 2017, IBR approved for § 113.1. Aug. 9, 2011; 77 FR 45247, July 31, 2012; 81 FR (2) [Reserved] 66823, Sept. 29, 2016; 82 FR 28560, June 23, 2017; 83 FR 17923, Apr. 25, 2018] PART 121—SERVICE STANDARDS § 111.5 [Reserved] FOR MARKET-DOMINANT MAIL PRODUCTS PART 113—HAZARDOUS, RESTRICTED, AND PERISHABLE MAIL Sec. 121.1 First-Class Mail. 121.2 Periodicals. Sec. 121.3 Standard Mail. 113.1 Scope and purpose. 121.4 Package Services. 113.2 Incorporation by reference. APPENDIX A TO PART 121—SERVICE STANDARD AUTHORITY: 5 U.S.C. 552(a); 13 U.S.C. 301– DAY RANGE TABLES 307; 18 U.S.C. 1692–1737; 39 U.S.C. 101, 401, 403, 404, 414, 416, 3001–3011, 3201–3219, 3403–3406, AUTHORITY: 39 U.S.C., 101, 401, 403, 404, 1001, 3621, 3622, 3626, 3632, 3633, and 5001. 3691.

SOURCE: 83 FR 1190, Jan. 10, 2018, unless SOURCE: 72 FR 72228, Dec. 19, 2007, unless otherwise noted. otherwise noted.

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§ 121.1 First-Class Mail. fore the day-zero CET with an origin or (a)(1) Until January 5, 2015, a 1-day destination that is in American Samoa (overnight) service standard is applied or one of the following 3-digit ZIP Code to intra-Sectional Center Facility areas in Alaska (or designated portions (SCF) domestic First-Class Mail® thereof): 995 (5-digit ZIP Codes 99540 pieces properly accepted before the through 99599), 996, 997, 998, and 999. day-zero Critical Entry Time (CET), (c) A 3-day service standard is applied except for mail between Puerto Rico to domestic First-Class Mail pieces and the U.S. Virgin Islands, mail be- properly accepted before the day-zero tween American Samoa and Hawaii, CET, if the 1-day and 2-day service and mail destined to the following 3- standards do not apply, and: digit ZIP Code areas in Alaska (or des- (1) Both the origin and the destina- ignated portions thereof): 995 (5-digit tion are within the contiguous 48 ZIP Codes 99540 through 99599), 996, 997, states; 998, and 999. (2) The origin is in the contiguous 48 (2) On and after January 5, 2015, a 1- states, and the destination is in any of day (overnight) service standard is ap- the following: the city of Anchorage, plied to intra-SCF domestic Presort Alaska (5-digit ZIP Codes 99501 through First-Class Mail pieces properly ac- 99539); the 968 3-digit ZIP Code area in cepted at the SCF before the day-zero Hawaii; or the 006, 007, or 009 3-digit CET, except for mail between Puerto ZIP Code areas in Puerto Rico; Rico and the U.S. Virgin Islands, and (3) The origin is in the 006, 007, or 009 mail destined to American Samoa and 3-digit ZIP Code areas in Puerto Rico, the following 3-digit ZIP Code areas in and the destination is in the contig- Alaska (or designated portions there- uous 48 states; of): 995 (5-digit ZIP Codes 99540 through (4) The origin is in Hawaii, and the 99599), 996, 997, 998, and 999. destination is in Guam, or vice versa; (b)(1) Until January 5, 2015, a 2-day (5) The origin is in Hawaii, and the service standard is applied to inter- destination is in American Samoa, or SCF domestic First-Class Mail pieces vice versa; or properly accepted before the day-zero (6) Both the origin and destination CET if the drive time between the ori- are within Alaska. gin Processing & Distribution Center (d) A 4-day service standard is ap- or Facility (P&DC/F) and destination plied to domestic First-Class Mail Area Distribution Center (ADC) is 6 pieces properly accepted before the hours or less; or if the origin and des- day-zero CET, if the 1-day, 2-day, and 3- tination are separately in Puerto Rico day service standards do not apply, and the U.S. Virgin Islands; or if the and: origin or destination is in American (1) The origin is in the contiguous 48 Samoa or one of the following 3-digit states and the destination is in any of ZIP Code areas in Alaska (or des- the following: any portion of Alaska ignated portions thereof): 995 (5-digit other than the city of Anchorage (5- ZIP Codes 99540 through 99599), 996, 997, digit ZIP Codes 99501 through 99539); 998, and 999. any portion of Hawaii other than the (2) On and after January 5, 2015, a 2- 968 3-digit ZIP Code area; or the U.S. day service standard is applied to Virgin Islands; intra-SCF single piece domestic First- (2) The destination is in the contig- Class Mail properly accepted before the uous 48 states and the origin is in Alas- day-zero CET, inter-SCF domestic ka, Hawaii, or the U.S. Virgin Islands; First-Class Mail pieces properly ac- or cepted before the day-zero CET if the (3) The origin and destination are in drive time between the origin P&DC/F different non-contiguous states or ter- and destination SCF is 6 hours or less, ritories, excluding mail to and from Presort First-Class Mail properly ac- Guam and mail between Puerto Rico cepted before the day-zero CET with an and the U.S. Virgin Islands. origin and destination that are sepa- (e) A 5-day service standard is applied rately in Puerto Rico and the U.S. Vir- to all remaining domestic First-Class gin Islands, and intra-SCF Presort Mail pieces properly accepted before First-Class Mail properly accepted be- the day-zero CET.

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(f) The service standard for Outbound (3) A 4-day service standard is applied Single-Piece First-Class Mail Inter- to Periodicals pieces properly accepted national TM; pieces properly accepted before the day-zero CET if: the origin before the day-zero CET is equivalent and destination are separately in Ha- to the service standard for domestic waii and Guam; or the origin and des- First-Class Mail pieces originating tination are separately in Hawaii and from the same 3-digit ZIP Code area American Samoa. and destined to the 3-digit ZIP Code (4)(i) A 5- to 8-day service standard is area in which the designated Inter- applied to Periodicals pieces properly national Service Center is located. accepted before the day-zero CET if (g) The service standard for Inbound they originate and destinate within the Single-Piece First-Class Mail Inter- contiguous 48 states, they are not national pieces properly accepted be- merged with First-Class Mail pieces for fore the day-zero CET is equivalent to surface transportation (as per the the service standard for domestic DMM), and the Area Distribution Cen- First-Class Mail pieces destined to the ter (ADC) and Sectional Center Facil- same 3-digit ZIP Code area and origi- ity (SCF) are co-located, with the nating from the 3-digit ZIP Code area standard specifically equaling the sum in which the designated International of 4 days plus the number of additional Service Center is located. days (from 1 to 4) required for surface transportation between the applicable [77 FR 31196 May 25, 2012, as amended at 79 3-digit ZIP Code origin-destination FR 4080, Jan. 24, 2014; 79 FR 44701, Aug. 1, pairs; 2014] (ii) A 6- to 9-day service standard is applied to Periodicals pieces properly § 121.2 Periodicals. accepted before the day-zero CET if (a) End-to-End. (1)(i) Until January 5, they originate and destinate within the 2015, a 2- to 4-day service standard is contiguous 48 states, they are not applied to Periodicals pieces properly merged with First-Class Mail pieces for accepted before the day-zero Critical surface transportation (as per the Entry Time (CET) and merged with DMM), and the ADC and SCF are not First-Class Mail pieces for surface co-located, with the standard specifi- transportation (as per the Domestic cally equaling the sum of 5 days plus Mail Manual (DMM)), with the stand- the number of additional days (from 1 ard specifically equaling the sum of 1 to 4) required for surface transpor- day plus the applicable First-Class tation between the applicable 3-digit Mail service standard; ZIP Code origin-destination pairs; (ii) On and after January 5, 2015, a 3- (5) A 12- to 26-day service standard is to 4-day service standard is applied to applied to all remaining Periodicals Periodicals pieces properly accepted pieces properly accepted before the before the day-zero CET and merged day-zero CET, with the standard spe- with First-Class Mail pieces for surface cifically equaling the sum of 5 days transportation (as per the DMM), with plus the number of additional days the standard specifically equaling the (from 7 to 21) required for intermodal sum of 1 day plus the applicable First- (highway, boat, air-taxi) transpor- Class Mail service standard. tation outside the contiguous 48 states (2) A 3-day service standard is applied for the applicable 3-digit ZIP Code ori- to Periodicals pieces properly accepted gin-destination pairs. before the day-zero CET if: the origin (b) Destination Entry. (1) Destination and destination are separately in Puer- Delivery Unit (DDU) Entered Mail. A 1- to Rico and the U.S. Virgin Islands; or day (overnight) service standard is ap- if the origin is in Alaska, the service plied to Periodicals pieces that qualify standards set forth in paragraphs for a DDU rate and are properly accept- (a)(1)(i) and (ii) do not apply, and the ed before the day-zero CET at the des- destination is in the following 3-digit ignated DDU. ZIP Code areas in Alaska (or des- (2) Destination Sectional Center Facility ignated portions thereof): 995 (5-digit (DSCF) Entered Mai.l (i) A 1-day (over- ZIP Codes 99540 through 99599), 996, 997, night) service standard is applied to 998, and 999. Periodicals pieces that qualify for a

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DSCF rate and are properly accepted thereof): 995 (5-digit ZIP Codes 99540 before the day-zero CET at the des- through 99599), 996, 997, 998, and 999; ignated DSCF, except for mail entered (iv) An 11-day service standard is ap- at the SCF in Puerto Rico and destined plied to Periodicals pieces that qualify to the U.S. Virgin Islands, mail entered for a DADC rate, are properly accepted at the SCF in Hawaii and destined to before the day-zero CET at the des- American Samoa, and mail destined to ignated DADC in the contiguous 48 the following 3-digit ZIP Code areas in states, and are destined to the 998 or Alaska (or designated portions there- 999 3-digit ZIP Code areas in Alaska. of): 995 (5-digit ZIP Codes 99540 through (4) Destination Network Distribution 99599), 996, 997, 998, and 999; Center (DNDC)/Auxiliary Service Facility (ii) A 3-day service standard is ap- (ASF) Entered Mail. (i) A 2-day service plied to Periodicals pieces that qualify standard is applied to Periodicals for a DSCF rate and are properly ac- pieces that qualify for a DADC contain- cepted before the day-zero CET at the erized rate, are properly accepted be- designated DSCF, if the they are en- fore the day-zero CET at the des- tered at the DSCF in Puerto Rico and ignated DNDC or ASF in the contig- destined to the U.S. Virgin Islands, en- uous 48 states, and are destined within tered at the DSCF in Hawaii and des- the contiguous 48 states, if the DADC tined to American Samoa, or destined to the following 3-digit ZIP Code areas and DSCF are co-located; in Alaska (or designated portions (ii) A 3-day service standard is ap- thereof): 995 (5-digit ZIP Codes 99540 plied to Periodicals pieces that qualify through 99599), 996, 997, 998, and 999. for a DADC containerized rate, are (3) Destination Area Distribution Center properly accepted before the day-zero (DADC) Entered Mail. (i) A 1-day (over- CET at the designated DNDC or ASF in night) service standard is applied to the contiguous 48 states, and are des- Periodicals pieces that qualify for a tined within the contiguous 48 states, DADC rate and are properly accepted if the DADC and DSCF are not co-lo- before the day-zero CET at the des- cated; ignated DADC, if the DADC and DSCF (iii) An 8- to 10-day service standard are co-located; is applied to Periodicals pieces that (ii) A 2-day service standard is ap- qualify for a DADC containerized rate, plied to Periodicals pieces that qualify are properly accepted before the day- for a DADC rate and are properly ac- zero CET at the designated DNDC or cepted before the day-zero CET at the ASF in the contiguous 48 states, and designated DADC, if the DADC and are destined outside the contiguous 48 DSCF are not co-located, unless the states, if the DADC and DSCF are co- mail is entered at a DADC within the located, with the specific standard contiguous 48 states and destined out- being based on the number of days reside the contiguous 48 states, or en- quired for transportation outside the tered at the DADC in Puerto Rico and contiguous 48 states; destined to the U.S. Virgin Islands, or (iv) A 9- to 11-day service standard is destined to either American Samoa or applied to Periodicals pieces that qual- the following 3-digit ZIP Code areas in ify for a DADC containerized rate, are Alaska (or designated portions there- properly accepted before the day-zero of): 995 (5-digit ZIP Codes 99540 through CET at the designated DNDC or ASF in 99599), 996, 997, 998, and 999; the contiguous 48 states, and are des- (iii) A 4-day service standard is ap- tined outside the contiguous 48 states, plied to Periodicals pieces that qualify if the DADC and DSCF are not co-lo- for a DADC rate and are properly ac- cated, with the specific standard being cepted before the day-zero CET at the based on the number of days required designated DADC, if they are entered for transportation outside the contig- at the DADC in Puerto Rico and destined to the U.S. Virgin Islands, or if uous 48 states. they are destined to American Samoa [77 FR 31196, May 25, 2012, as amended at 79 or the following 3-digit ZIP Code areas FR 4080, Jan. 24, 2014; 79 FR 44701, Aug. 1, in Alaska (or designated portions 2014]

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§ 121.3 Standard Mail. are accepted before the day-zero Crit- (a) End-to-End. (1) The service stand- ical Entry Time at the proper DDU ard for Sectional Center Facility (SCF) have a 2-day service standard. (2) Standard Mail pieces that qualify turnaround Standard Mail® pieces ac- for a DSCF rate and that are accepted cepted at origin before the day-zero before the day-zero Critical Entry Critical Entry Time is 3 days when the Time at the proper DSCF have a 3-day origin Processing & Distribution Cen- service standard when accepted on ter/Facility (OPD&C/F) and the SCF Sunday through Thursday and a 4-day are the same building, except for mail service standard when accepted on Fri- between the territories of Puerto Rico day or Saturday, except for mail and the U.S. Virgin Islands. (2) The service standard for Area Dis- dropped at the SCF in the territory of tribution Center (ADC) turnaround Puerto Rico and destined to the terri- Standard Mail pieces accepted at ori- tory of the U.S. Virgin Islands, or mail gin before the day-zero Critical Entry destined to American Samoa. (3) Standard Mail pieces that qualify Time is 4 days when the OPD&C/F and for a Destination Sectional Center Fa- the ADC are the same building, unless cility (DSCF) rate and that are accept- the ADC is in the contiguous 48 states ed before the day zero Critical Entry and the delivery address is not, or the Time at the SCF in the territory of mail is between Puerto Rico and the Puerto Rico and destined for the terri- U.S. Virgin Islands, or the mail is be- tory of the U.S. Virgin Islands, or are tween Hawaii and American Samoa. (3) The service standard for intra- destined to American Samoa, have a 4- Network Distribution Center (NDC) day service standard when accepted on Standard Mail pieces accepted at ori- Sunday through Thursday and a 5-day gin before the day-zero Critical Entry service standard when accepted on Fri- Time is 5 days for each remaining 3- day or Saturday. (4) Standard Mail pieces that qualify digit ZIP Code origin-destination pair for a Destination Network Distribution within the same Network Distribution Center (DNDC) rate, and that are ac- Center service area if the origin and destination are within the contiguous cepted before the day-zero Critical 48 states; the same standard applies to Entry Time at the proper DNDC have a mail that is intra-Alaska or between 5-day service standard, if both the ori- the state of Hawaii and the territory of gin and the destination are in the con- Guam or American Samoa. tiguous 48 states. (4) For each remaining 3-digit ZIP (5) Standard Mail pieces that qualify Code origin-destination pair within the for a Destination Network Distribution contiguous 48 states, the service stand- Center (DNDC) rate, and that are ac- ard for Standard Mail pieces accepted cepted before the day-zero Critical at origin before the day-zero Critical Entry Time at the proper DNDC in the Entry Time is the sum of 5 or 6 days contiguous 48 states for delivery to ad- plus the number of additional days dresses in the states of Alaska or Ha- (from 1 to 4) required for surface trans- waii or the territories of Guam, Amer- portation between each 3-digit ZIP ican Samoa, Puerto Rico, or the U.S. Code origin-destination pair. Virgin Islands, have a service standard (5) For each remaining 3-digit ZIP of 12–14 days, depending on the 3-digit Code origin-destination pair, the serv- origin-destination ZIP Code pair. For ice standard for Standard Mail pieces each such pair, the applicable day accepted at origin before the day-zero within the range is based on the num- Critical Entry Time is the sum of 5 or ber of days required for transportation 6 days plus the number of additional outside the contiguous 48 states. days (from 7 to 21) required for inter- [77 FR 31197, May 25, 2012, as amended at 79 modal (highway, boat, air-taxi) trans- FR 12393, Mar. 5, 2014] portation outside the contiguous 48 states for each 3-digit ZIP Code origin- § 121.4 Package Services. destination pair. (a) End-to-End. (1) The service stand- (b) Destination Entry. (1) Standard ard for Sectional Center Facility (SCF) Mail pieces that qualify for a Destina- turnaround Package Services mail action Delivery Unit (DDU) rate and that cepted at the origin SCF before the

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day-zero Critical Entry Time is 2 days Code origin-destination pair, this rep- when the origin Processing & Distribu- resents the sum of 3 to 4 days, plus the tion Center/Facility and the SCF are number of days (ranging from 7 to 22) the same building, except for mail be- required for intermodal (highway, boat, tween the territories of Puerto Rico air-taxi) transportation between each and the U.S. Virgin Islands, and mail 3-digit ZIP Code origin-destination destined to American Samoa. pair. (2) The service standard for intra- (6) The service standard for Inbound Network Distribution Center (NDC) Surface Parcel Post® pieces (subject to Package Services mail accepted at ori- Universal Postal Union rates) is the gin before the day-zero Critical Entry same as the service standard for do- Time is 3 days, for each remaining mestic Package Services mail from the (non-intra-SCF) 3-digit ZIP Code origin-destination pair within a Network 3-digit ZIP Code area in which the Distribution Center service area, where International Network Distribution the origin and destination is within the Center is located in the 3-digit ZIP contiguous 48 states and is not served Code in which the delivery address is by an Auxiliary Service Facility; and located. for mail between the territories of (b) Destination Entry. (1) Package Puerto Rico and the U.S. Virgin Is- Services mail that qualifies for a Des- lands, and for mail destined to Amer- tination Delivery Unit (DDU) rate, and ican Samoa. that is accepted before the day-zero (3) The service standard for intra- Critical Entry Time at the proper Network Distribution Center (NDC) DDU, has a 1-day (overnight) service Package Services mail accepted at ori- standard. gin before the day-zero Critical Entry (2) Package Services mail that quali- Time is 4 days for each remaining 3- fies for a Destination Sectional Center digit ZIP Code origin-destination pair Facility (DSCF) rate, and that is ac- within a Network Distribution Center cepted before the day-zero Critical service area, where the destination de- Entry Time at the proper DSCF, has a livery address is served by an Auxiliary 2-day service standard, except for mail Service Facility; the same standard ap- dropped at the SCF in the territory of plies to all remaining intra-Alaska Puerto Rico and destined to the terri- mail and mail between the state of Ha- tory of the U.S. Virgin Islands, and waii and the territory of Guam, and mail destined to American Samoa. mail destined to American Samoa. (4) For each remaining 3-digit ZIP (3) Package Services mail that quali- Code origin-destination pair within the fies for a Destination Sectional Center contiguous 48 states, the service stand- Facility (DSCF) discount, is accepted ard for Package Services mail accepted before the day-zero Critical Entry at origin before the day-zero Critical Time at the SCF, and is destined to ei- Entry Time is between 5 and 8 days. ther American Samoa or the U.S. Vir- For each such 3-digit ZIP Code origin- gin Islands, has a 3-day service stand- destination pair, this is the sum of 4 ard. days, plus the number of additional (4) Package Services mail that quali- days (from 1 to 4) required for surface fies for a Destination Network Dis- transportation between each 3-digit tribution Center (DNDC) rate, and is ZIP Code origin-destination pair, plus accepted before the day-zero Critical an additional day if the destination de- Entry Time at the proper DNDC or livery address is served by an Auxiliary Destination Auxiliary Service Facility, Service Facility. and originates and destinates in the (5) For each remaining 3-digit ZIP contiguous 48 states, has a 3-day serv- Code origin-destination pair for which ice standard. either the origin or the destination is (5) Package Services mail that quali- outside the contiguous 48 states, the service standard for Package Services fies for a Destination Network Dis- mail accepted at origin before the day- tribution Center (DNDC) rate, and that zero Critical Entry Time is between 10 is accepted before the day-zero Critical and 26 days. For each such 3-digit ZIP Entry Time at the proper DNDC in the

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contiguous 48 states for delivery to ad- CONTIGUOUS UNITED STATES dresses in the states of Alaska or Ha- End-to-end waii, or the territories of Guam, Amer- Mail class range ican Samoa, Puerto Rico, or the U.S. (days) Virgin Islands has a service standard of First-Class Mail ...... 1–3 either 11 or 12 days, depending on the 3- Periodicals ...... 2–9 digit ZIP Code origin-destination pair. Standard Mail ...... 3–10 For each such pair, the applicable day Package Services ...... 2–8 within the range is based on the number of days required for transportation Table 2. On and after January 5, 2015, end- to-end service standard day ranges for mail outside the contiguous 48 states. originating and destinating within the con- [77 FR 31198, May 25, 2012] tiguous 48 states and the District of Colum- bia. APPENDIX A TO PART 121—TABLES DE- CONTIGUOUS UNITED STATES PICTING SERVICE STANDARD DAY RANGES End-to-end Mail class range The following tables reflect the service (days) standard day ranges resulting from the ap- First-Class Mail ...... 1–3 plication of the business rules applicable to Periodicals ...... 3–9 the market-dominant mail products ref- Standard Mail ...... 3–10 erenced in §§ 121.1 through 121.4: Package Services ...... 2–8 Table 1. Prior to January 5, 2015, end-to- end service standard day ranges for mail Table 3. Prior to January 5, 2015, end-to- originating and destinating within the con- end service standard day ranges for mail tiguous 48 states and the District of Colum- originating and/or destinating in non-contig- bia. uous states and territories.

NON-CONTIGUOUS STATES AND TERRITORIES

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

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

NON-CONTIGUOUS STATES AND TERRITORIES

First-Class Mail...... 1–3 1–3 1–2 3–4 3–5 3–4 4–5 4–5 4–5 Periodicals ...... 3–4 3–4 3 13–19 12–22 11–16 21–25 21–26 23–26 Standard Mail...... 3–5 3–5 3–4 14–20 13–23 12–17 23–26 23–27 24–27 Package Services...... * 2–4 2–4 2–3 12–18 11–21 10–15 21–26 20–26 20–24 * Excluding bypass mail.

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Table 5. Destination-entry service standard day ranges for mail to the contiguous 48 states and the District of Columbia.

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

CONTIGUOUS UNITED STATES

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

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

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

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

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

Periodicals ...... 1 1–3 1 1–3 1–4 (AK) 1 (HI) 1–4 10–11 10 8–10 11 (JNU) 2 (GU) 11 (KTN) Standard Mail ...... 2 3–4 3–5 3–5 ...... 14 13 12 Package Services .. 1 2 2–3 2–3 ...... 12 11 11 AK = Alaska 3-digit ZIP Codes 995–997; JNU = Juneau AK 3-digit ZIP Code 998; KTN = Ketchikan AK 3-digit ZIP Code 999; HI = Hawaii 3-digit ZIP Codes 967 and 968; GU = Guam 3-digit ZIP Code 969.

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

PART 122—SERVICE STANDARDS provision of delivery-related informa- FOR MARKET-DOMINANT SPE- tion is that it be made available to the CIAL SERVICES PRODUCTS sender no later than 24 hours after the time of the recorded delivery-related Sec. scan performed by the Postal Service 122.1 Ancillary special services. on mail for which the following special 122.2 Stand-alone special services. services have been purchased: Domes- TM AUTHORITY: 39 U.S.C. 101, 401, 403, 404, 1001, tic Certified Mail service, domestic 3691. Delivery Confirmation TM service, do-

SOURCE: 72 FR 72228, Dec. 19, 2007, unless mestic and inbound international Reg- otherwise noted. istered Mail TM service, domestic Col- lect On Delivery, domestic electronic § 122.1 Ancillary special services. Return Receipt, and domestic Signa- (a) For the market-dominant mail ture Confirmation TM scans. products identified above in part 121, (2) For domestic electronic Address mailers may purchase various ancil- Correction Service, the service stand- lary special services products, which ard for the electronic provision of ad- are designed to provide electronic ac- dress change information is that it be cess to information regarding delivery- made available to the sender no later related events or forwarding addresses than 24 hours after the time of the scan for individual mailpieces. of the mailpiece by the Postal Auto- (1) For the following special services, mated Redirection System. the service standard for the electronic

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(b) For the market-dominant mail The service standard for the electronic products identified above in part 121, provision of CONFIRM service scan in- mailers may purchase insurance from formation is that it be made available the Postal Service TM to provide indem- to the sender no later than 24 hours nity against loss or damage to the con- after the recorded time of the CON- tents of a mailpiece. The service stand- FIRM scan performed by the Postal ard for the administrative resolution of Service. domestic insurance claims is that a (d) The service standard for Postal final agency decision must be trans- Money Order Inquiry service is transmitted to the claimant no later than 30 mission of a response to the customer’s calendar days after the date on which completed inquiry within 15 business the Postal Service has received all in- days of receipt of the inquiry by the formation from the claimant necessary for analysis of the claim. Postal Service, excluding designated postal holidays. § 122.2 Stand-alone special services. (e) The service standards for Stamp (a) The service standard for P. O. Fulfillment Services order fulfillment Box TM service is that mail be available service is shipment of orders within the for pickup at the box each delivery day following timeframes, based from the no later than the daily ‘‘up-time’’ pub- time of order receipt within SFS sys- licly posted at the Post Office TM loca- tems, excluding designated postal holi- tion that includes the box section. days. (b) The service standard for completion of Address List Services (change- STAMP FULFILLMENT SERVICES—SERVICE of-address information for election STANDARDS FOR FULFILLMENT PROCESS boards and registration commissions, Customer order Service standard 1 correction and ZIP Code placement of mailing lists, and address sequencing) Internet Orders: Non-Philatelic/Non- ≤2 Business Days. is transmission of the corrected ad- Custom. ≤ dresses within 15 business days of re- Business Level Orders ...... 5 Business Days. Philatelic/Custom and All Other Order ≤10 Business Days. ceipt to the requester, except for the Sources. period from November 16 through Jan- uary 1. [72 FR 72228, Dec. 19, 2007, as amended at 76 (c) For the domestic market-domi- FR 61053, Oct. 3, 2011] nant mail products identified above in part 121, CONFIRM ® service allows subscribing customers to obtain electronic information regarding when and where mailpieces undergo barcode scans in mail processing operations.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Chief Postal Inspector in writing of overseas may be obtained from the De- such designation. partment of Defense. (h) Records. (1) All requests for mail [58 FR 36599, July 8, 1993, as amended at 61 covers, with records of action ordered FR 42557, Aug. 16, 1996; 74 FR 18297, Apr. 22, thereon, and all reports issued pursu- 2009; 81 FR 74308, Oct. 26, 2016; 82 FR 32474, ant thereto, shall be deemed within the July 14, 2017] custody of the Chief Postal Inspector. However, the physical storage of this § 233.4 Withdrawal of mail privileges. data shall be at the discretion of the (a) False representation and lottery or- Chief Postal Inspector. ders—(1) Issuance. Pursuant to 39 U.S.C. (2) If the Chief Postal Inspector, or 3005, the Judicial Officer of the Postal his designee, determines a mail cover Service, acting upon a satisfactory evi- was improperly ordered, all data ac- dentiary basis, may issue a mail-stop quired while the cover was in force order against anyone seeking mailed remittance of money or property by shall be destroyed, and the requesting means of a false-representation or lot- authority notified of the discontinu- tery scheme. Such orders provide for ance of the mail cover and the reasons return of mail and refund of postal therefor. money orders to remitters. (3) Any data concerning mail covers (2) Enforcement. Notice of these or- shall be made available to any mail ders, including any necessary instruc- cover subject in any legal proceeding tions on enforcement responsibilities through appropriate discovery proce- and procedures, is published in the dures. Postal Bulletin. Generally, an order (4) The retention period for files and against a domestic enterprise is en- records pertaining to mail covers shall forced only by the post office des- be 8 years. ignated in the order. All personnel (i) Reporting to requesting authority. processing mail for dispatch abroad as- Once a mail cover has been duly or- sist in enforcing orders against foreign dered, authorization may be delegated enterprises by forwarding mail ad- to any employee in the Postal Inspec- dressed to such enterprises to des- tion Service to transmit mail cover re- ignated post offices. ports directly to the requesting author- (b) Fictitious name or address and not ity. residents of the place of address orders— (j) Review. (1) The Chief Postal In- (1) Issuance. Pursuant to 39 U.S.C. 3003, spector, or his designee at Inspection 3004, when there is satisfactory evi- Service Headquarters shall periodically dence that mail is addressed to a ficti- review mail cover orders issued by the tious name, title, or address used for Manager, Inspection Service Oper- any unlawful business, and no one has ations Support Group or their des- established a right to have the mail de- ignees to ensure compliance with these livered to him, or that mail is ad- regulations and procedures. dressed to places not the residence or regular business address of the person (2) The Chief Postal Inspector shall for whom they are intended to enable select and appoint a designee to con- the person to escape identification, the duct a periodic review of national secu- Judicial Officer may, pursuant to Part rity mail cover orders. 964, order that the mail be returned to (3) The Chief Postal Inspector’s de- the sender. termination in all matters concerning (2) Notice. (i) The Chief Postal Inspec- mail covers shall be final and conclu- tor or his delegate must give notice to sive and not subject to further admin- the addressee of mail withheld from de- istrative review. livery pursuant to 39 U.S.C. 3003, 3004 (k) Military postal system. Section that such action has been taken and 233.3 does not apply to the military advise him that he may: postal system overseas or to persons (A) Obtain such mail upon presenting performing military postal duties over- proof of his identity and right to re- seas. Information about regulations ceive such mail, or prescribed by the Department of De- (B) Petition the Judicial Officer for fense for the military postal system the return of such mail. (ii) The notice

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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to conduct these surveys. The post- (b) Role of Postal Service. The Postal master or his designee will schedule Service and the Red Cross will share the survey on or near the date re- information on the whereabouts of per- quested and will promptly reply to sons displaced by disasters, and other- FHLBB so that the necessary forms wise cooperate with each other, as fol- will be provided on time. lows: (ii) All necessary forms and instruc- (1) The Red Cross will use Form 3575, tions will be supplied directly to each Change of Address Order, as a standard 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 USPS at twice the normal rates for (2) The Postal Service will provide 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. (4) The Postal Service and the Red (e) Unauthorized projects prohibited. Cross will encourage appropriate local Do not conduct special surveys or oth- postal officials and Red Cross chapters erwise participate in any cooperative to maintain contact with each other projects without the authorization in and to participate in local and commu- paragraph (c) of this section. nity 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 for disaster relief. § 259.2 Red Cross. (6) Regional Postmasters General and (a) General. The Postal Service and Postal Inspectors in Charge are respon- the Red Cross cooperate to maintain sible for seeing that post offices imple- communication between the individual ment these cooperative arrangements and the community during times of in disaster situations. disaster. This applies only to natural (7) The instructions in § 259.2 serve as disasters such as those caused by a broad framework within which field floods, tornados, hurricanes, earth- officials of both agencies may coordi- quakes, fires, explosions, etc., and not nate their facilities and resources. to those caused by enemy action.

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

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

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

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

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

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

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

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or to the preservation of the rights and PART 265—PRODUCTION OR DIS- interests of the Postal Service, its em- CLOSURE OF MATERIAL OR IN- ployees, contractors or customers. To FORMATION ensure that these records are available when needed, specific controls are re- Subpart A—Procedures for Disclosure of quired which affect all organizational Records Under the Freedom of Infor- components having the custody of mation Act records defined as being ‘‘vital.’’ Sec. § 264.2 Policy. 265.1 General provisions. It is the policy of the U.S. Postal 265.2 Proactive disclosure of Postal Service records. Service to ensure the availability of all 265.3 Procedure for submitting a FOIA re- records considered critical to the con- quest. tinuity of its operations and the pres- 265.4 Responsibility for responding to re- ervation of the rights and interests of quests. the Postal Service, its employees, con- 265.5 Timing of responses to requests. tractors, and customers. Vital records 265.6 Responses to requests. shall be routinely maintained at 265.7 Confidential commercial information obtained from submitters. predesignated off-site locations to en- 265.8 Administrative appeals. sure their availability when needed by 265.9 Fees. management and operating personnel. Subpart B—Production or Disclosure in § 264.3 Responsibility. Federal and State Proceedings (a) Manager, Records Office. The Man- 265.11 Compliance with subpoenas duces ager, Records Office, is responsible for tecum, court orders, and summonses. categorizing records as vital, and in 265.12 Demands for testimony or records in conjunction with the Chief Postal In- certain legal proceedings. spector/Emergency Coordinator shall 265.13 Compliance with subpoenas, sum- establish and maintain the vital monses, and court orders by postal em- records program, and ensure compli- ployees within the Postal Inspection ance with supportive procedures. Service where the Postal Service, the (b) Chief Postal Inspector. As the United States, or any other Federal agency is not a party. Postal Service’s Emergency Coordi- nator, the Chief Postal Inspector shall Subpart C—Availability of Records establish and maintain a program to ensure that vital records are available 265.14 Rules concerning specific categories at predesignated off-site locations for of records. use during a national emergency. AUTHORITY: 5 U.S.C. 552; 5 U.S.C. App. 3; 39 (c) Custodians. Custodians are respon- U.S.C. 401, 403, 410, 1001, 2601; Pub. L. 114–185. sible for following vital records pro- SOURCE: 81 FR 86271, Nov. 30, 2016, unless gram procedures including the for- otherwise noted. warding of vital records to predesignated off-site locations. Subpart A—Procedures for Disclo- [44 FR 51224, Aug. 31, 1979, as amended at 60 sure of Records Under the FR 57344, Nov. 15, 1995; 64 FR 41290, July 30, Freedom of Information Act 1999; 68 FR 56558, Oct. 1, 2003] § 265.1 General provisions. § 264.4 Vital Records Program. (a) Policy. (1) This subpart contains Complete procedures concerning the the regulations that implement the identification, categorization, proc- Freedom of Information Act (FOIA), 5 essing, protection, and transfer of vital U.S.C. 552, insofar as the Act applies to records are provided by the office of the Postal Service. These rules should Corporate Accounting or the USPS be read in conjunction with the text of Emergency Coordinator, as appro- the FOIA and the Uniform Freedom of priate. Information Fee Schedule and Guide- [44 FR 51224, Aug. 31, 1979, as amended at 60 lines published by the Office of Man- FR 57344, Nov. 15, 1995; 64 FR 41290, July 30, agement and Budget (OMB Guidelines). 1999] The Postal Service FOIA Requester’s

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Guide, an easy-to-read guide for mak- ment or facility within the Postal ing Postal Service FOIA requests, is Service that maintains records; the Of- available at http://about.usps.com/who- fice of Inspector General; and the Post- we-are/foia/welcome.htm. al Inspection Service. Postal Service (2) Requests made by individuals for refers to all such components collec- records about themselves under the tively. Privacy Act of 1974, 5 U.S.C. 552a, are processed under part 266 of this chapter [82 FR 32767, July 18, 2017] as well as under this subpart. § 265.2 Proactive disclosure of Postal (3) It is the policy of the Postal Serv- Service records. ice to make its official records available to the public to the maximum ex- (a) In general. The Postal Service is tent consistent with the public inter- responsible for determining which of est. This policy requires a practice of its records must be made publicly full disclosure of those records that are available, for identifying additional covered by the requirements of the records of interest to the public that FOIA, subject only to the specific ex- are appropriate for public disclosure, emptions required or authorized by and for posting and indexing such law. The exemptions from mandatory records. The Postal Service’s FOIA Re- disclosure for various types of records quester Service Centers (RSCs) and provided by 5 U.S.C. 552(b) and 39 FOIA Public Liaisons can assist indi- U.S.C. 410(c) reflect the fact that under viduals in locating Postal Service some circumstances, the public inter- records. Descriptions of, and contact est may be better served by leaving the information for, the various FOIA disclosure of particular records to the RSCs can be found at http:// discretion of the Postal Service rather about.usps.com/who-we-are/foia/wel- than by requiring their disclosure. This come.htm. Postal Service policy does not create (b) Records available in an electronic any right enforceable in court. format. Records that the FOIA requires (4) Nothing in this subpart shall be the Postal Service to make available construed to entitle any person, as of for public inspection in an electronic right, to any service or to the disclo- format pursuant to 5 U.S.C. 552(a)(2) sure of any record to which such person and that are exempt from the require- is not entitled under the FOIA. ments of 5 U.S.C. 552(a)(3), may be (b) Definitions—(1) Record. (i) For accessed through the Postal Service’s purposes of this part, a record is a dis- Web site at http://about.usps.com/who- crete, distinct, or segregable grouping we-are/foia/welcome.htm. The Postal of information that pertains to a spe- Service must ensure that its Web site cific topic that is: of posted records and indices is re- (A) Recorded, regardless of media, viewed and updated on an ongoing format, or physical characteristics, in- basis. Such records available for public cluding electronic data; and inspection in an electronic format in- (B) In the custody or control of the clude the following: Postal Service. (1) Opinions. All final opinions and (ii) The definition of a record does orders made in the adjudication of not include any discrete, distinct, or cases by the Judicial Officer and Ad- segregable grouping of information cre- ministrative Law Judges, all final de- ated at the discretion of an employee terminations pursuant to section 404(b) primarily for the employee’s conven- of title 39, United States Code, to close ience and not disclosed to other em- or consolidate a post office, or to dis- ployees. The definition of a record is approve a proposed closing or consoli- not the same as a ‘‘document;’’ a single dation, all advisory opinions con- ‘‘document’’ may be a single record or cerning the private express statutes it may include multiple records and issued pursuant to 39 CFR 310.6, and all groupings of information that do not supplier disagreement decisions are on constitute records as defined in this file and available for inspection and section. copying at the Headquarters Library (2) Component. For purposes of this and, if created on or after November 1, subpart, component means any depart- 1996, also at the Postal Service’s Web

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site at http://about.usps.com/who-we-are/ may be relied on as precedents in the foia/welcome.htm. disposition of cases, administrative (2) Administrative manuals and instruc- staff manuals and instructions that af- tions. The manuals, instructions, and fect the public, and other materials other publications of the Postal Serv- which the Postal Service elects to ice that affect members of the public index and make available to the public are available through the Headquarters on request in the manner set forth in Library and at many post offices and paragraph (b) of this section. other postal facilities. Those which are (ii) The index contains references to available to the public but are not list- matters issued after July 4, 1967, and ed for sale may be inspected in the may reference matters issued prior to Headquarters Library, at any postal fa- that date. cility which maintains a copy, or, if (iii) Any person may arrange for the created on or after November 1, 1996, inspection of any matter in the public through the Postal Service’s Web site index in accordance with the proce- at http://about.usps.com/who-we-are/foia/ dures of § 265.3. welcome.htm. Copies of publications (iv) Copies of the public index and of which are not listed as for sale or as matters listed in the public index may available free of charge may be re- be requested through the procedures quested on an individual basis in ac- described in § 265.3, with payment of cordance with the procedures provided any applicable fees. in § 265.3. (v) Materials listed in the public (3) Previously released records. Copies index that were created on or after No- of all records, regardless of form or for- vember 1, 1996, will also be available in mat, that have been released to any electronic format at the Postal Serv- person pursuant to the FOIA; and that ice’s Web site at http://about.usps.com/ because of the nature of their subject who-we-are/foia/welcome.htm. matter, the Postal Service determines have become or are likely to become § 265.3 Procedure for submitting a the subject of subsequent requests for FOIA request. substantially the same records; or that (a) To whom submitted. A request have been requested 3 or more times, as must be submitted to the appropriate well as a general index of such records. FOIA Requester Service Center (RSC). Records processed and disclosed after Descriptions of, and contact informa- March 31, 1997, are available for inspection for, the various FOIA RSCs can be tion and copying at the Headquarters found at http://about.usps.com/who-we- Library. Any such records created by are/foia/welcome.htm. For assistance in the Postal Service on or after Novem- determining the appropriate FOIA ber 1, 1996, also will be available at the RSC, requesters may contact the USPS Postal Service’s Web site identified at HQ FOIA Requester Service Center, § 265.2(b). Records described in this Privacy and Records Office, U.S. Postal paragraph that were not created by, or Service, 475 L’Enfant Plaza SW., Wash- on behalf of, the Postal Service gen- ington, DC 20260, telephone (202) 268– erally will not be available at the Web 2608. Requests for listings of postal em- site. Records will be available in the ployee names should also be sent to the form in which they were originally dis- USPS HQ FOIA Requester Service Cen- closed, except to the extent that they ter. contain information that is not appro- (b) Form of request. A request to in- priate for public disclosure and may be spect or to obtain a copy of an identifi- withheld pursuant to this section. Any able Postal Service record must be in deleted material will be marked and writing and bear the caption ‘‘Freedom the applicable exemptions indicated in of Information Act Request’’ or other- accordance with § 265.6(d). wise be clearly and prominently identi- (4) Public index. (i) A public index is fied as a request for records pursuant maintained in the Headquarters Li- to the Freedom of Information Act, brary and at the Web site of all final both on the letter and on the envelope opinions and orders made by the Postal or other cover. Requests for records Service in the adjudication of cases, that are labeled incorrectly may be de- Postal Service policy statements which layed in reaching the appropriate FOIA

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RSC. A requester must provide his or pertain to a third party, a requester her full name and mailing address. A may receive greater access by submit- requester may also provide a daytime ting a written authorization signed by telephone number or email address to that individual authorizing disclosure facilitate communication regarding his of the records to the requester, or by or her request. submitting proof that the individual is (c) Content of request. Requesters deceased (e.g., a copy of a death certifi- must describe the records sought in cate or an obituary). As an exercise of sufficient detail to enable Postal Serv- administrative discretion, each compo- ice personnel to locate them with a nent can require a requester to supply reasonable amount of effort. Whenever a notarized authorization, a declara- possible, requesters should include spe- tion, or other additional information if cific information about each record necessary in order to verify that a par- sought, such as the type of record (e.g., ticular individual has consented to dis- contract, report, memorandum, etc.); closure. the title or case number of a specific (f) Improper requests. A request that document or report; the topic or sub- does not reasonably describe the ject matter; the name of the office, fa- records sought, or does not comply cility, functional unit or employees with the published rules regarding the most likely to possess the record; the procedures to be followed for submit- geographical location, such as a city ting a request, will be deemed to be an and state, where the records are improper FOIA request. If after receiv- thought to exist; the date or general ing a request, the Postal Service deter- timeframe of the record’s creation; and mines that it is improper, the Postal any details related to the purpose of Service will inform the requester as to the record. Requests for email records why the request is improper. If the re- should specify the likely senders and quester fails to respond to the Postal recipients, keywords, and a range of Service’s request for clarification or dates. If seeking information about a additional information within 30 cal- company, requesters should provide the endar days, the Postal Service will as- exact name and address of the company sume the requester is no longer inter- (many companies use similar names). ested in pursuing the request and close Before submitting requests, requesters its file. The FOIA Requester Service may contact the relevant Postal Serv- Centers and the FOIA Public Liaisons ice FOIA Requester Service Center to are available to assist requesters in discuss the records they are seeking correcting a request that does not rea- and to receive assistance in describing sonably describe the records sought. the records. The request may state the maximum amount of fees for which the § 265.4 Responsibility for responding requester is willing to accept liability to requests. without prior notice. If no amount is (a) In general. When a request is re- stated, the requester will be deemed ceived, the FOIA RSC will either re- willing to accept liability for fees not spond to the request, or refer the re- to exceed $25.00. See paragraph (e)(2) of quest to the appropriate FOIA RSC or § 265.9.The request may also specify the records custodians. The FOIA RSC will preferred form or format (including advise the requester of any such refer- electronic formats) of the requested ral. The Postal Service, the Office of records. Inspector General of the Postal Serv- (d) First-party requests. A requester ice, and the Postal Inspection Service, who is making a request for records respectively, are responsible for re- about himself must provide sponding to requests they receive for verification of identity sufficient to records they maintain. Records respon- satisfy the component as to his iden- sive to a request ordinarily will include tity prior to release of the record. For only records in the Postal Service’s Privacy Act-protected records, the re- possession as of the date of the search. quester must further comply with the If any other date is used, the Postal procedures set forth in 39 CFR 266.6. Service shall inform the requester of (e) Third-party requests. Where a FOIA that date. A record that is excluded request seeks disclosure of records that from the requirements of the FOIA

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pursuant to 5 U.S.C. 552(c) is not con- (2) Within each track, the Postal sidered responsive to the request. Service processes requests in the order (b) Authority to grant or deny requests. in which they are received. When ap- The records custodian of the requested propriate, the FOIA RSC or the compo- record, or his designee, is authorized to nent will notify the requester if it has grant or to deny the request. FOIA placed the request in the ‘‘Complex’’ RSC staff may also grant or deny re- track, and provide the requester with quests. an opportunity to limit the scope of (c) Receipt and tracking of requests. the request. If the requester limits the FOIA RSCs are responsible for the ini- scope of the request, it may result in tial receipt and tracking of FOIA re- faster processing. quests. (c) Expedited processing. (1) Requests (d) Acknowledgments of requests. FOIA and appeals shall be processed on an RSCs must acknowledge the request in expedited basis whenever it is deter- writing and assign it an individualized mined that they involve: tracking number if it will take longer (i) Circumstances in which the lack than 10 working days to process. The of expedited processing could reason- acknowledgement of the request must ably be expected to pose an imminent include a brief description of the threat to the life or physical safety of records sought to allow requesters to an individual; more easily keep track of their re- (ii) An urgency to inform the public quests. about an actual or alleged Federal Gov- [81 FR 86271, Nov. 30, 2016, as amended at 82 ernment activity, if made by a person FR 15139, Mar. 27, 2017] who is primarily engaged in dissemi- nating information. § 265.5 Timing of responses to re- (2) A requester who seeks expedited quests. processing must submit a statement, (a) In general. Requests will ordi- certified to be true and correct, ex- narily be responded to according to plaining in detail the basis for making their order of receipt. A request that is the request for expedited processing. not initially submitted to the appro- For example, under paragraph (e)(1)(ii) priate FOIA RSC will be deemed to of this section, a requester who is not have been received by the Postal Serv- a full-time member of the news media ice at the time that it is actually re- must establish that the requester is a ceived by the appropriate FOIA RSC, person whose primary professional ac- but in any case a request will be tivity or occupation is information dis- deemed to have been received no later semination, though it need not be the than 10 business days after the request requester’s sole occupation. Such a re- is first received by a FOIA RSC. quester also must establish a par- (b) Multitrack processing. (1) Unless ticular urgency to inform the public expedited processing has been granted, about the government activity in- the Postal Service places each request volved in the request—one that extends in simple or complex tracks based on beyond the public’s right to know the amount of work and time involved about government activity generally. in processing the request. Factors con- The existence of numerous articles sidered in assigning a request into the published on a given subject can be complex track may include one or helpful in establishing the requirement more of the following factors: that there be an ‘‘urgency to inform’’ (i) The request involves voluminous the public on the topic. As a matter of documents; administrative discretion, a component (ii) The complexity of the material; may waive the formal certification re- (iii) The request involves record quirement. searches at multiple facilities or loca- (3) A component shall notify the re- tions; quester within 10 calendar days of the (iv) The request requires consulta- receipt of a request for expedited proc- tion among components or other agen- essing of its decision whether to grant cies; or deny expedited processing. If expe- (v) The number of open requests sub- dited processing is granted, the request mitted by the same requester. shall be given priority, placed in the

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processing track for expedited re- (b) Adverse determinations of requests. quests, and shall be processed as soon A component making an adverse deter- as practicable. If a request for expe- mination denying a request in any re- dited processing is denied, any appeal spect shall notify the requester of that of that decision shall be acted on expe- determination in writing. Adverse de- ditiously terminations, or denials of requests, in- (d) Unusual circumstances. Whenever clude decisions that: the requested the statutory time limit for processing record is exempt, in whole or in part; a request cannot be met because of the request does not reasonably de- ‘‘unusual circumstances’’, as defined in scribe the records sought; the informa- the FOIA, and the component extends tion requested is not a record subject the time limit on that basis, the com- to the FOIA; the requested record does ponent shall, before the expiration of not exist, cannot be located, or has the 20-day period to respond, notify the been destroyed; or the requested record requester in writing of the unusual cir- is not readily reproducible in the form cumstances involved and of the date by or format sought by the requester. Ad- which processing of the request can be verse determinations also include deni- expected to be completed. Where the als involving fees or fee waiver matters extension exceeds 10 working days, the or denials of requests for expedited component shall, as described by the processing. FOIA, provide the requester with an (c) Content of denial. The denial shall opportunity to modify the request or include, to the extent applicable: arrange an alternative time period for (1) The name and title or position of processing and alert the requester to the person responsible for the denial; the availability of the Office of Govern- (2) A brief statement of the reasons ment Information Services to provide for the denial, including any FOIA ex- dispute resolution services. The compo- emption applied by the component in nent shall make available its des- denying the request; ignated FOIA contact and its FOIA (3) An estimate of the volume of any Public Liaison for this purpose. records or information withheld, such (e) Aggregating requests. For the pur- as the number of pages or some other poses of satisfying unusual cir- reasonable form of estimation, al- cumstances under the FOIA, the Postal though such an estimate is not re- Service may aggregate requests in quired if the volume is otherwise indi- cases where it reasonably appears that cated by deletions marked on records multiple requests, submitted either by that are disclosed in part or if pro- a single requester or by a group of re- viding an estimate would harm an in- questers acting in concert, constitute a terest protected by an applicable ex- single request that would otherwise in- emption; and volve unusual circumstances. Multiple (4) A statement that the denial may requests that involve unrelated mat- be appealed under § 265.8, and a descrip- ters shall not be aggregated. tion of the requirements set forth [81 FR 86271, Nov. 30, 2016, as amended at 82 therein. FR 32767, July 18, 2017] (5) A statement notifying the requester of his or her right to seek dis- § 265.6 Responses to requests. pute resolution services from the FOIA (a) Grants of requests. Once a compo- Public Liaison or the Office of Govern- nent makes a determination to grant a ment Information Services. request in whole or in part, it shall no- (d) Markings on released documents. tify the requester in writing and in- Markings on released documents must clude a statement alerting the re- be clearly visible to the requester. quester of his or her right to seek as- Records disclosed in part shall be sistance from the FOIA Public Liaison. marked to show the amount of infor- The component also shall inform the mation deleted and the exemption requester of any fees charged under under which the deletion was made un- § 265.9 and shall disclose the requested less doing so would harm an interest records to the requester promptly upon protected by an applicable exemption. payment of any applicable fees. The location of the information deleted

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shall also be indicated on the record, if (i) The requested information has technically feasible. been designated in good faith by the (e) Use of record exclusions. (1) In the submitter as information considered event that a component identifies protected from disclosure under Ex- records that may be subject to exclu- emption 4; or sion from the requirements of the (ii) The Postal Service has a reason FOIA pursuant to 5 U.S.C. 552(c), the to believe that the requested informa- component must confer with Depart- tion may be protected from disclosure ment of Justice, Office of Information under Exemption 4, but has not yet de- Policy (OIP), to obtain approval to termined whether the information is apply the exclusion. protected from disclosure under that exemption or any other applicable ex- § 265.7 Confidential commercial infor- emption. mation obtained from submitters. (2) The notice shall either describe (a) Definitions. (1) Confidential com- the commercial information requested mercial information means commercial or include a copy of the requested or financial information obtained by records or portions of records con- the Postal Service from a submitter taining the information. In cases in- that may be protected from disclosure volving a voluminous number of sub- under Exemption 4 of the FOIA, 5 mitters, notice may be made by post- U.S.C. 552(b)(4). ing or publishing the notice in a place or manner reasonably likely to accom- (2) Submitter means any person or en- plish it. tity, including a corporation, State, or (d) Exceptions to submitter notice re- foreign government, but not including quirements. The notice requirements of another Federal Government entity, this section shall not apply if: that provides information, either di- (1) The Postal Service determines rectly or indirectly to the Postal Serv- that the information is exempt under ice. the FOIA or 39 U.S.C. 410(c); (b) Designation of confidential commer- (2) The information has been lawfully cial information. A submitter of con- published or has been officially made fidential commercial information must available to the public; use good faith efforts to designate by (3) Disclosure of the information is appropriate markings, either at the required by a statute other than the time of submission or within a reason- FOIA or by a Postal Service regula- able time thereafter, any portion of its tion; if disclosure is required by a Post- submission that it considers to be pro- al Service regulation and the submitter tected from disclosure under Exemp- provided written justification for pro- tion 4. The Postal Service will not detection of the information under Ex- termine the validity of any request for emption 4 at the time of submission or confidential treatment until a request a reasonable time thereafter, advanced for disclosure of the information is re- written notice of the disclosure must ceived. These designations shall expire be provided to the submitter; or 10 years after the date of the submis- (4) The designation made by the sub- sion unless the submitter requests and mitter under paragraph (b) of this sec- provides justification for a longer des- tion appears obviously frivolous or ignation period. overly broad, except that, in such (c) When notice to submitters is re- cases, the component shall give the quired. (1) The Postal Service shall submitter written notice of any final promptly provide written notice to a decision to disclose the information submitter of confidential commercial and must provide that notice within a information whenever records con- reasonable number of days prior to a taining such information are requested specified disclosure date. under the FOIA if, after reviewing the (e) Opportunity to object to disclosure. request, the responsive records, and (1) The Postal Service shall specify a any appeal by the requester, the Postal reasonable time period within which Service determines that it may be re- the submitter must respond to the no- quired to disclose the records, pro- tice referenced above. If a submitter vided: has any objections to disclosure, it

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should provide the Postal Service a de- (3) A specified disclosure date, which tailed written statement that specifies shall be a reasonable time subsequent all grounds for withholding the par- to the notice. ticular information under any exemp- (h) Notice of FOIA lawsuit. Whenever a tion of the FOIA. In order to rely on requester files a lawsuit seeking to Exemption 4 as basis for nondisclosure, compel the disclosure of confidential the submitter must explain why the in- commercial information, the compo- formation constitutes a trade secret or nent shall promptly notify the sub- commercial or financial information mitter. Whenever a submitter files a that is privileged or confidential. lawsuit to prevent disclosure of con- Whenever possible, the submitter’s fidential commercial information, the claim of confidentiality should be sup- component shall promptly notify the ported by a statement or certification requester. by an officer or authorized representa- (i) Requester notification. The Postal tive of the submitter that the information in question is in fact confidential, Service shall notify a requester when- has not been disclosed to the public by ever it notifies the submitter of its in- the submitter, and is not routinely tent to disclose the requested informa- available to the public from other tion. sources. (2) A submitter who fails to respond § 265.8 Administrative appeals. within the time period specified in the (a) Requirements for making an appeal. notice shall be considered to have no Requesters may appeal adverse deci- objection to disclosure of the informa- sions rendered by the Postal Inspection tion. Information received by the Post- Service or any Postal Service compo- al Service after the date of any disclo- nent by mail to the General Counsel, sure decision shall not be considered by U.S. Postal Service, 475 L’Enfant Plaza the Postal Service. Any information SW., Washington, DC 20260; or by email provided by a submitter under this sub- to [email protected]. The requester part may itself be subject to disclosure must make the appeal in writing and under the FOIA. The Postal Service to be considered timely it must be must consider a submitter’s objections postmarked, or in the case of elec- and specific grounds for nondisclosure tronic submissions, transmitted, within deciding whether to disclose the re- in 90 calendar days after the date of the quested information. response; or within a reasonable time if (f) Determination that confidential the appeal is from a failure of the cus- treatment is warranted. If the Postal todian to act. The General Counsel Service determines that confidential may, in his or her discretion, consider treatment is warranted for any part of late appeals. In the event of the denial the requested records and that the of a request or of other action or fail- records will therefore be redacted or ure to act on the part of a custodian withheld, it must inform the requester from which no appeal is taken, the in writing, and must advise the re- General Counsel may, if he or she con- quester of the right to appeal. A copy siders that there is doubt as to the cor- of the letter of denial must also be pro- rectness of the custodian’s action or vided to the submitter of the records in failure to act, review the action or fail- any case in which the submitter had ure to act as though an appeal pursu- been notified of the request. (g) Notice of intent to disclose. If the ant to this section had been taken. A Postal Service decides to disclose in- letter of appeal should include, as ap- formation over the objection of a sub- plicable: mitter, the Postal Service shall pro- (1) A copy of the request, of any noti- vide the submitter written notice, fication of denial or other action, and which shall include: of any other related correspondence; (1) A statement of the reasons why (2) The FOIA tracking number as- each of the submitter’s disclosure ob- signed to the request; jections was not sustained; (3) A statement of the action, or fail- (2) A description or copy of the infor- ure to act, from which the appeal is mation to be disclosed; and taken;

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(4) A statement identifying the spe- directly to the requester. If not prohib- cific redactions to responsive records ited by or under law, the General Coun- that the requester is challenging; sel, or his designee may direct the dis- (5) A statement of the relief sought; closure of a record even though its dis- and closure is not required by law or regu- (6) A statement of the reasons why lation. the requester believes the action or (d) When appeal is required. Before failure to act is erroneous. seeking judicial review of a compo- (b) Adjudication of appeals. (1) The de- nent’s adverse determination, a re- cision of the General Counsel or his or quester generally must first submit a her designee constitutes the final deci- timely administrative appeal. sion of the Postal Service on the issue (e) Appeal procedures for the Office of being appealed. The General Counsel the Inspector General. The appeal proce- will give prompt consideration to an dures for the Office of the Inspector appeal for expedited processing of a re- General are described in 39 CFR 230.5. quest. All other decisions normally will be made within 20 working days from § 265.9 Fees. the time of the receipt by the General (a) In general. The Postal Service Counsel. The 20-day response period shall charge for processing requests may be extended by the General Coun- under the FOIA in accordance with the sel, or his or her designee, for a period provisions of this section and with the not to exceed an additional 10 working OMB Guidelines. In order to resolve days when reasonably necessary to per- any fee issues that arise under this sec- mit the proper consideration of an ap- tion, a component may contact a repeal, under one or more of the unusual quester for additional information. The circumstances set forth in paragraph Postal Service will conduct searches, (a)(5) of this section. The aggregate review, and duplication in the most ef- number of additional working days uti- ficient and the least expensive manner. lized, however, may not exceed 10 The Postal Service ordinarily will col- working days. lect all applicable fees before sending (2) An appeal ordinarily will not be copies of records to a requester. Re- adjudicated if the request becomes a questers must pay fees by check or matter of FOIA litigation. money order made payable to ‘‘U.S. (3) On receipt of any appeal, the Gen- Postal Service.’’ eral Counsel, or his or her designee, (b) Definitions. For purposes of this must take appropriate action to ensure section: compliance with applicable classifica- (1) Commercial-use requester is a re- tion rules. quester who asks for information for a (c) Decisions on appeals. A decision on use or a purpose that furthers a com- an appeal must be made in writing. A mercial, trade, or profit interest, which decision that upholds a component’s can include furthering those interests determination in whole or in part will through litigation. The Postal Serv- contain a statement that identifies the ice’s decision to place a requester in reasons for the affirmance, including the commercial use category will be any FOIA exemptions applied. The de- made on a case-by-case basis based on cision will provide the requester with the requester’s intended use of the in- notification of the statutory right to formation. file a lawsuit and will inform the re- (2) Direct costs are those expenses quester of the mediation services of- that the Postal Service incurs in fered by the Office of Government In- searching for and duplicating records formation Services of the National Ar- in order to respond to a FOIA request. chives and Records Administration as a In the case of commercial-use request- non-exclusive alternative to litigation. ers, direct costs include reviewing and If a custodian’s decision is remanded or taking all other measures needed to modified on appeal, the requester will prepare the records for disclosure. be notified of that determination in (3) Search is the process of looking for writing. The component will further and retrieving records or information process the request in accordance with responsive to a request. Search time that appeal determination and respond includes page-by-page or line-by-line

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identification of information within (8) Representative of the news media is records and the reasonable efforts ex- any person or entity that gathers in- pended to locate and retrieve informa- formation of potential interest to a tion from electronic records. segment of the public, uses its editorial (4) Duplication is reproducing a copy skills to turn the raw materials into a of a record, or of the information con- distinct work, and distributes that tained in it, necessary to respond to a work to an audience. The term news FOIA request. Copies can take the form means information that is about cur- of paper, audiovisual materials, or rent events or that would be of current electronic records, among others. interest to the public. Examples of (5) Review is the examination of a news media entities include television record located in response to a request or radio stations that broadcast in order to determine whether any por- ‘‘news’’ to the public at large and pub- tion of it is exempt from disclosure. lishers of periodicals that disseminate Review time includes processing any ‘‘news’’ and make their products avail- record for disclosure, such as doing all able through a variety of means to the that is necessary to prepare the record general public, including news organi- for disclosure, including the process of zations that disseminate solely on the redacting the record and marking the Internet. A request for records sup- appropriate exemptions. Review costs porting the news-dissemination func- are properly charged even if a record tion of the requester shall not be con- ultimately is not disclosed. Review sidered to be for a commercial use. time also includes time spent both ob- ‘‘Freelance’’ journalists who dem- taining and considering any formal ob- onstrate a solid basis for expecting jection to disclosure made by a con- publication through a news media enti- fidential commercial information sub- ty shall be considered as a representa- mitter under § 265.6, but it does not in- tive of the news media. A publishing clude time spent resolving general contract would provide the clearest legal or policy issues regarding the ap- evidence that publication is expected; plication of exemptions. however, the Postal Service shall also (6) Educational institution is any consider a requester’s past publication school that operates a program of record in making this determination. scholarly research. A requester in this (c) Charging fees. In responding to fee category must show that the re- FOIA requests, the Postal Service shall quest is authorized by, and is made charge the following fees unless a waiv- under the auspices of, an educational er or reduction of fees has been granted institution and that the records are not under paragraph (j) of this section. Be- sought for a commercial use, but rath- cause the fee amounts provided below er are sought to further scholarly re- already account for the direct costs as- search. To fall within this fee category, sociated with a given fee type, compo- the request must serve the scholarly nents should not add any additional research goals of the institution rather costs to charges calculated under this than an individual research goal. section. (7) Noncommercial scientific institution (1) Search. (i) Requests made by edu- is an institution that is not operated cational institutions, noncommercial on a ‘‘commercial’’ basis, as defined in scientific institutions, or representa- paragraph (b)(1) of this section and tives of the news media are not subject that is operated solely for the purpose to search fees. Search fees shall be of conducting scientific research the charged for all other requesters, sub- results of which are not intended to ject to the restrictions of paragraph (d) promote any particular product or in- of this section. The Postal Service may dustry. A requester in this category charge for time spent searching even if must show that the request is author- no responsive records are located or if ized by and is made under the auspices it determines that the records are en- of a qualifying institution and that the tirely exempt from disclosure. records are sought to further scientific (ii) For each half hour spent by per- research and are not for a commercial sonnel searching for requested records, use. including electronic searches that do

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not require new programming, the fee be charged at the same rates as those shall be $21.00. charged for a search under paragraph (iii) Requesters shall be charged the (c)(1)(ii) of this section. direct costs associated with conducting (d) Restrictions on charging fees. (1) No any search that requires the creation search fees will be charged for requests of a new computer program to locate by educational institutions (unless the the requested records. Requesters shall records are sought for a commercial be notified of the costs associated with use), noncommercial scientific institu- creating such a program and must tions, or representatives of the news agree to pay the associated costs before media. the costs may be incurred. (2)(i) If a component fails to comply (iv) For requests that require the re- with the time limits in which to retrieval of records stored at a Federal spond to a request, it may not charge records center operated by the Na- search fees, or, in the instances of re- tional Archives and Records Adminis- quests from requesters described in tration (NARA), or other storage facil- paragraph (d)(1) of this section, may ity, additional costs may be charged not charge duplication fees. for their retrieval. (ii) If a component has determined (2) Duplication. Duplication fees shall that unusual circumstances as defined be charged to all requesters, subject to by the FOIA apply and the component the restrictions of paragraph (d) of this provided timely written notice to the section. A component shall honor a re- requester in accordance with the FOIA, quester’s preference for receiving a the component has an additional 10 record in a particular form or format days to respond to the request. where it is readily reproducible by the (iii) If a component has determined component in the form or format re- that unusual circumstances as defined quested. Where photocopies are sup- by the FOIA apply and more than 5,000 plied, the component shall provide one pages are necessary to respond to the copy per request at a cost of fifteen request, the component may charge cents per page. For copies of records search fees, or, in the case of request- produced on tapes, disks, or other ers described in paragraph (d)(1) of this media, components shall charge the di- section, may charge duplication fees if rect costs of producing the copy, in- the following steps are taken: cluding operator time. Where paper (A) The component provides timely documents must be scanned in order to written notice of unusual cir- comply with a requester’s preference to cumstances to the requester; and receive the records in an electronic format, the requester shall pay the direct (B) The component discussed or made costs associated with scanning those three good faith attempts to discuss materials. For other forms of duplica- via mail, email, or telephone how the tion, components shall charge the di- requester could effectively limit the rect costs. scope of the request in accordance with 5 U.S.C. 552(a)(6)(B)(ii). (3) Review. Commercial-use requesters shall be charged review fees. Re- (iv) If a court has determined that view fees shall be assessed in connec- exceptional circumstances exist, a fail- tion with the initial review of the ure to comply with the time limits record, i.e., the review conducted by a shall be excused for the length of time component to determine whether an provided by the court order. exemption applies to a particular (3) No search or review fees will be record or portion of a record. No charge charged for a quarter-hour period un- will be made for review at the adminis- less more than half of that period is re- trative appeal stage of exemptions ap- quired for search or review. plied at the initial review stage. How- (4) Except for requesters seeking ever, if a particular exemption is records for a commercial use, compo- deemed to no longer apply, any costs nents shall provide without charge: associated with a component’s re-re- (i) The first 100 pages of duplication view of the records in order to consider (or the cost equivalent for other the use of other exemptions may be as- media); and sessed as review fees. Review fees shall (ii) The first two hours of search.

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

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(3) Where a requester has previously public interest because it is likely to failed to pay a properly charged FOIA contribute significantly to public un- fee within 30 calendar days of the bill- derstanding of operations or activities ing date, a component may require of the Postal Service, components shall that the requester pay the full amount consider all four of the following fac- due on that prior request, and the com- tors: ponent may require that the requester (i) The subject of the request must make an advance payment of the full concern identifiable operations or ac- amount of any anticipated fee before tivities of the Postal Service, with a the component begins to process a new connection that is direct and clear, not request or continues to process a pend- remote or attenuated. ing request or any pending appeal. (ii) Disclosure of the requested Where a component has a reasonable records must be meaningfully inform- basis to believe that a requester has ative about government operations or misrepresented the requester’s identity activities in order to be ‘‘likely to con- in order to avoid paying outstanding tribute’’ to an increased public under- fees, it may require that the requester standing of those operations or activi- provide proof of identity. ties. The disclosure of information that (4) In cases in which a component re- already is in the public domain, in ei- quires advance payment, the request ther the same or a substantially iden- shall not be considered received and tical form, would not contribute to further work will not be completed such understanding where nothing new until the required payment is received. would be added to the public’s under- If the requester does not pay the ad- standing. vance payment within 30 calendar days (iii) The disclosure must contribute after the date of the component’s fee to the understanding of a reasonably determination, the request will be ad- broad audience of persons interested in ministratively closed. the subject, as opposed to the indi- (i) Other statutes specifically providing vidual understanding of the requester. for fees. The fee schedule of this section does not apply to fees charged under A requester’s expertise in the subject any statute that specifically requires area as well as the requester’s ability the Postal Service to set and collect and intention to effectively convey in- fees for particular types of records. In formation to the public shall be consid- instances where records responsive to a ered. A representative of the news request are subject to a statutorily- media does not automatically satisfy based fee schedule program, the compo- this consideration. nent shall inform the requester of the (iv) The public’s understanding of the contact information for that program. subject in question must be enhanced (j) Requirements for waiver or reduction by the disclosure to a significant ex- of fees. (1) Records responsive to a re- tent. quest shall be furnished without charge (3) To determine whether disclosure or at a reduced rate below the rate es- of the requested information is pri- tablished under paragraph (c) of this marily in the commercial interest of section, where a component deter- the requester, components shall con- mines, based on all available informa- sider the following factors: tion, that the requester has dem- (i) Components shall identify any onstrated that: commercial interest of the requester, (i) Disclosure of the requested infor- as defined in paragraph (b)(1) of this mation is in the public interest because section, that would be furthered by the it is likely to contribute significantly requested disclosure. Requesters shall to public understanding of the oper- be given an opportunity to provide ex- ations or activities of the Postal Serv- planatory information regarding this ice, and consideration. (ii) Disclosure of the information is (ii) Disclosure to data brokers or oth- not primarily in the commercial inter- ers who merely compile and market est of the requester. government information for direct eco- (2) In deciding whether disclosure of nomic return shall not be presumed to the requested information is in the primarily serve the public interest.

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(4) Where only some of the records to 20210–0001. Also notify the attorney re- be released satisfy the requirements for sponsible for the issuance of the sub- a waiver of fees, a waiver shall be poena or court order. granted for those records. (4) Employee medical records are pri- (5) Requests for a waiver or reduction marily under the exclusive jurisdiction of fees should be made when the re- of the U.S. Civil Service Commission. quest is first submitted to the compo- The Commission has delegated author- nent and should address the criteria ity to the Postal Service and to the referenced above. A requester may sub- Commission’s Regional Directors to remit a fee waiver request at a later time lease medical information, in response so long as the underlying record re- to proper requests and upon competent quest is pending or on administrative medical advice, in accordance with the appeal. When a requester who has com- following criteria: mitted to pay fees subsequently asks (i) Except in response to a subpoena for a waiver of those fees and that or court order, do not release any med- waiver is denied, the requester shall be ical information about an employee to required to pay any costs incurred up any non-Federal entity or individual to the date the fee waiver request was without authorization from the em- received. ployee. [81 FR 86271, Nov. 30, 2016, as amended at 82 (ii) With authorization from the em- FR 2896, Jan. 10, 2017; 82 FR 12921, Mar. 8, ployee, the Area, Information Systems 2017] Service Center, or Chief Field Counsel will respond as follows to a request Subpart B—Production or Disclo- from a non-Federal source for medical sure in Federal and State Pro- information: ceedings (A) If, in the opinion of a Federal medical officer, the medical informa- § 265.11 Compliance with subpoena duces tecum, court orders, and tion indicates the existence of a malig- summonses. nancy, a mental condition, or other condition about which a prudent physi- (a) Compliance with subpoena duces cian would hesitate to inform a person tecum. (1) Except as required by Part suffering from such a condition as to 262, produce other records of the Postal its exact nature and probable outcome, Service only in compliance with a sub- do not release the medical information poena duces tecum or appropriate court order. to the employee or to any individual (2) Time, leave, and payroll records of designated by him, except to a physi- postal employees are subject to produc- cian, designated by the employee in tion when a subpoena duces tecum or writing. If a subpoena or court order appropriate court order has been prop- was issued, the responding official shall erly served. The custodian of the caution the moving party as to the pos- records may designate a postal em- sible dangers involved if the medical ployee to present the records. The pres- information is divulged. entation by a designee rather than the (B) If, in the opinion of a Federal employee named in the subpoena or medical officer, the medical informa- court order must meet with the ap- tion does not indicate the presence of proval of the attorneys for each side. In any condition which would cause a pru- addition, such records may be released dent physician to hesitate to inform a if authorized in writing by the em- person of the exact nature and probable ployee. outcome of his condition, release it in (3) If the subpoena involves a job-con- response to a subpoena or court order, nected injury, the records are under or to the employee or to any person, the exclusive jurisdiction of the Office firm, or organization he authorizes in of Workers’ Compensation Programs, writing. Department of Labor. Requests for au- (C) If a Federal medical officer is not thorization to produce these records available, refer the request to the Civil shall be addressed to: Office of Work- Service Commission regional office ers’ Compensation Programs, U.S. De- with the medical certificates or other partment of Labor, Washington, DC medical reports concerned.

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(5) Do not release any records con- (b) Definitions. The following defini- taining information as to the employ- tions apply to this section: ee’s security or loyalty. (1) Adjudicative authority includes, (6) Honor subpoenas or court orders but is not limited to, the following: only when disclosure is authorized. (i) A court of law or other judicial fo- (7) When authorized to comply with a rums, whether local, state, or federal; subpoena duces tecum, do not leave the and original records with the court. (ii) Mediation, arbitration, or other (b) [Reserved] forums for dispute resolution. (2) Demand includes a subpoena, sub- § 265.12 Demands for testimony or poena duces tecum, request, order, or records in certain legal pro- other notice for testimony or records ceedings. arising in a legal proceeding. (a) Scope and applicability of this sec- (3) Employee means a current em- tion. (1) This section establishes proce- ployee or official of the Postal Service. dures to be followed if the Postal Serv- (4) General Counsel means the General ice or any Postal Service employee re- Counsel of the United States Postal ceives a demand for testimony con- Service, the Chief Field Counsels, or an cerning or disclosure of: employee of the Postal Service acting (i) Records contained in the files of for the General Counsel under a delega- the Postal Service; tion of authority. (ii) Information relating to records (5) Legal proceeding means: contained in the files of the Postal (i) A proceeding before an adjudica- Service; or tive authority; (iii) Information or records acquired (ii) A legislative proceeding, except or produced by the employee in the for a proceeding before either House of course of his or her official duties or Congress or before any committee or because of the employee’s official sta- subcommittee of Congress; or tus. (iii) An administrative proceeding. (2) This section does not create any (6) Private litigation means a legal right or benefit, substantive or proce- proceeding to which the United States dural, enforceable by any person is not a party. against the Postal Service. (7) Records custodian means the em- (3) This section does not apply to any ployee who maintains a requested of the following: record. For assistance in identifying (i) Any legal proceeding in which the the custodian of a specific record, con- United States is a party; tact the Manager, Records Office, U.S. (ii) A demand for testimony or Postal Service, 475 L’Enfant Plaza SW., records made by either House of Con- Washington, DC 20260, telephone (202) gress or, to the extent of matter within 268–2608. its jurisdiction, any committee or sub- (8) Testimony means statements made committee of Congress; in connection with a legal proceeding, (iii) An appearance by an employee including but not limited to state- in his or her private capacity in a legal ments in court or other forums, deposi- proceeding in which the employee’s tions, declarations, affidavits, or re- testimony does not relate to the em- sponses to interrogatories. ployee’s official duties or the functions (9) United States means the federal of the Postal Service; or government of the United States and (iv) A demand for testimony or any of its agencies, establishments, or records submitted to the Postal Inspec- instrumentalities, including the United tion Service (a demand for Inspection States Postal Service. Service records or testimony will be (c) Requirements for submitting a de- handled in accordance with rules in mand for testimony or records. (1) Ordi- § 265.13). narily, a party seeking to obtain (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

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the Postal Service’s regulations imple- L’Enfant Plaza SW., Washington DC menting the FOIA at 39 CFR 265.1 20260–1100, or the Chief Field Counsel. A through 265.9, 265.14; or the Privacy demand for testimony or records must Act, 5 U.S.C. 552a and the Postal Serv- be received by the employee and the ice’s regulations implementing the Pri- General Counsel or Chief Field Counsel vacy Act at 39 CFR 266.1 through 266.10. at least ten (10) working days before (2) A demand for testimony or the date testimony or records are need- records issued pursuant to the rules ed. governing the legal proceeding in (d) Procedures followed in response to a which the demand arises must: demand for testimony or records. (1) After (i) Be in writing; an employee receives a demand for tes- (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

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Counsel authorizes the testimony of an arising out of the employee’s official employee, the party seeking testimony duties or the functions of the Postal shall make arrangements for the tak- Service, for any party other than the ing of testimony by those methods United States, except that in extraor- that, in the General Counsel’s view, dinary circumstances, the General will least disrupt the employee’s offi- Counsel may approve such expert testi- cial duties. For example, at the Gen- mony in private litigation. A Postal eral Counsel’s discretion, testimony Service employee may not testify as may be provided by affidavits, answers such an expert witness without the ex- to interrogatories, written depositions, press authorization of the General or depositions transcribed, recorded, or Counsel. A litigant must obtain au- 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; ployee to give testimony. Upon request and and for good cause shown (for example, (ii) Request that the demand be when a particular Postal Service em- stayed pending the employee’s receipt ployee has direct knowledge of a mate- of the General Counsel’s instructions. rial fact not known to the substitute (6) If the court or other authority de- employee designated by the Postal clines the request for a stay, or rules Service), the General Counsel may per- that the employee must comply with mit testimony by a named Postal Serv- the demand regardless of the General ice employee. Counsel’s instructions, the employee or (g) Fees and costs. (1) The Postal Serv- counsel for the employee shall respect- ice may charge fees, not to exceed ac- fully decline to comply with the de- tual costs, to private litigants seeking mand, citing United States ex rel. Touhy testimony or records by request or de- v. Ragen, 340 U.S. 462 (1951), and the mand. The fees, which are to be cal- regulations in this section. culated to reimburse fully the Postal (7) The General Counsel may request Service for processing the demand and the assistance of the Department of providing the witness or records, may Justice or a U.S. Attorney where nec- include, among others: essary to represent the interests of the (i) Costs of time spent by employees, Postal Service and the employee. including attorneys, of the Postal (8) At his or her discretion, the Gen- Service to process and respond to the eral Counsel may grant a waiver of any demand; procedure described by this section, (ii) Costs of attendance of the em- where waiver is considered necessary ployee and agency attorney at any dep- to promote a significant interest of the osition, hearing, or trial; United States or for other good cause. (iii) Travel costs of the employee and (9) If it otherwise is permissible, the agency attorney; records custodian may authenticate, (iv) Costs of materials and equipment upon the request of the party seeking used to search for, process, and make disclosure, copies of the records. No available information. employee of the Postal Service shall (2) All costs for employee time shall respond in strict compliance with the be calculated on the hourly pay of the terms of a subpoena duces tecum un- employee (including all pay, allowance, less specifically authorized by the Gen- and benefits) and shall include the eral Counsel. hourly fee for each hour, or portion of (e) Postal Service employees as expert each hour, when the employee is in witnesses. No Postal Service employee travel, in attendance at a deposition, may testify as an expert or opinion hearing, or trial, or is processing or re- witness, with regard to any matter sponding to a request or demand.

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(3) At the discretion of the Postal promote the careful supervision of In- Service, where appropriate, costs may spection Service resources and to re- be estimated and collected before testi- duce the risk of inappropriate disclo- mony is given. sures that might affect postal oper- (h) Acceptance of service. This section ations. does not in any way abrogate or modify (c) Definitions. For the purposes of the requirements of the Federal Rules this section: of Civil Procedure (28 U.S.C. Appendix) (1) Authorizing official is the person regarding service of process. responsible for giving the authorization for release of documents or per- § 265.13 Compliance with subpoenas, mission to testify. summonses, and court orders by (2) Case or matter means any civil pro- postal employees within the Postal Inspection Service where the Postal ceeding before a court of law, adminis- Service, the United States, or any trative board, hearing officer, or other other Federal agency is not a party. body conducting a judicial or adminis- (a) Applicability of this section. The trative proceeding in which the United rules in this section apply to all fed- States, the Postal Service, or another eral, state, and local court proceedings, federal agency is not a named party. as well as administrative and legisla- (3) Demand includes any request, tive proceedings, other than: order, or subpoena for testimony or the (1) Proceedings where the United production of documents. States, the Postal Service, or any (4) Document means all records, pa- other Federal agency is a party; pers, or official files, including, but not (2) Congressional requests or sub- limited to, official letters, telegrams, poenas for testimony or documents; memoranda, reports, studies, calendar (3) Consultative services and tech- and diary entries, graphs, notes, nical assistance rendered by the In- charts, tabulations, data analyses, sta- spection Service in executing its nor- tistical or information accumulations, mal functions; records of meetings and conversations, (4) Employees serving as expert wit- film impressions, magnetic tapes, com- nesses in connection with professional puter discs, and sound or mechanical and consultative services under 5 CFR reproductions; part 7001, provided that employees act- (5) Employee or Inspection Service em- ing in this capacity must state for the ployee, for the purpose of this section record that their testimony reflects only, refers to a Postal Service em- their personal opinions and should not ployee currently or formerly assigned be viewed as the official position of the to the Postal Inspection Service, stu- Postal Service; dent interns, contractors and employ- (5) Employees making appearances in ees of contractors who have access to their private capacities in proceedings Inspection Service information and that do not relate to the Postal Service records. (e.g., cases arising from traffic acci- (6) Inspection Service means the orga- dents, domestic relations) and do not nizational unit within the Postal Serv- involve professional or consultative ice that performs the functions speci- services; and fied in part 233 of this chapter. (6) When in the opinion of the Coun- (7) Inspection Service Legal Counsel is sel or the Counsel’s designee, Office of an attorney authorized by the Chief the Chief Postal Inspector, it has been Postal Inspector to give legal advice to determined that it is in the best inter- members of the Inspection Service. est of the Inspection Service or in the (8) Inspection Service Manual is the di- public interest. rective containing the standard oper- (b) Purpose and scope. The provisions ating procedures for Postal Inspectors in this section limit the participation and certain Inspection Service employ- of postal employees within or assigned ees. to the Inspection Service, in private (9) Nonpublic includes any material or litigation, and other proceedings in information not subject to mandatory which the Postal Service, the United public disclosure under § 265.14(b). States, or any other federal agency is (10) Official case file means official not a party. The rules are intended to documents that relate to a particular

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case or investigation. These documents (v) Prevention of the expenditure of may be kept at any location and do not Postal Service resources for private necessarily have to be in the same lo- purposes. cation in order to constitute the file. (3) If additional information is nec- (11) Postal Inspector reports include all essary before a determination can be written reports, letters, recordings, or made, the authorizing official may, in other memorializations made in con- coordination with Inspection Service junction with the duties of a Postal In- legal counsel, request assistance from spector. the Department of Justice. (12) Testify or testimony includes both (e) Compliance with subpoena duces in-person oral statements before any tecum. (1) Except as required by part body conducting a judicial or adminis- 262 of this chapter, produce any other trative proceeding and statements record of the Postal Service only in made in depositions, answers to inter- compliance with a subpoena duces rogatories, declarations, affidavits, or other similar documents. tecum or appropriate court order. (13) Third-party action means an ac- (2) Do not release any record con- tion, judicial or administrative, in taining information relating to an em- which the United States, the Postal ployee’s security or loyalty. Service, or any other federal agency is (3) Honor subpoenas and court orders not a named party. only when disclosure is authorized. (d) Policy. (1) No current or former (4) When authorized to comply with a employee within the Inspection Service subpoena duces tecum or court order, do may testify or produce documents con- not leave the originals with the court. cerning information acquired in the (5) Postal Inspector reports are con- course of employment or as a result of sidered to be confidential internal doc- his or her relationship with the Postal uments and shall not be released unless Service in any proceeding to which this there is specific authorization by the section applies (see paragraph (a) of Chief Postal Inspector or the Inspector this section), unless authorized to do in Charge of the affected field Division, so. Authorization will be provided by: after consulting with Inspection Serv- (i) The Postal Inspector in Charge of ice legal counsel. the affected field Division, or designee, (6) The Inspection Service Manual for Division personnel and records, and other operating instructions issued after that official has determined to Inspection Service employees are through consultation with Inspection considered to be confidential and shall Service legal counsel that no legal ob- not be released unless there is specific jection, privilege, or exemption applies authorization, after consultation with to such testimony or production of doc- Inspection Service legal counsel. If the uments. requested information relates to con- (ii) The Chief Postal Inspector or designee 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 20260–2101, 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 552. 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 Postal Inspector, before designating an Inspection Service employee as an ex- Subpart C—Availability of Records pert or opinion witness. § 265.14 Rules concerning specific cat- (j) Postal liability. This section is in- egories of records. tended to provide instructions to In- spection Service employees and does (a) Records available to the public on not create any right or benefit, sub- request. Except as otherwise proscribed stantive or procedural, enforceable by by law or regulations, including but any party against the Postal Service. not limited to paragraphs (b) and (c) of (k) Fees. (1) Unless determined by 28 this section, § 265.2 and § 265.11–§ 265.13, U.S.C. 1821 or other applicable statute, Postal Service records will be made the costs of providing testimony, in- available to any person in accordance cluding transcripts, shall be borne by with the procedures provided in § 265.3. the requesting party. (b) Records not subject to mandatory (2) Unless limited by statute, such public disclosure. Certain classes of costs shall also include reimbursement records are exempt from mandatory to the Postal Service for the usual and disclosure under exemptions contained ordinary expenses attendant upon the in the Freedom of Information Act and employee’s absence from his or her of- in 39 U.S.C. 410(c). The Postal Service ficial duties in connection with the will exercise its discretion, in accord- case or matter, including the employ- ance with the policy stated in § 265.1(c), ee’s salary and applicable overhead as implemented by instructions issued charges, and any necessary travel ex- by the Records Office with the approval penses as follows: of the General Counsel in determining (i) The Inspection Service is author- whether the public interest is served by ized to charge reasonable fees to par- the inspection or copying of records ties demanding documents or informa- that are: tion. Such fees, calculated to reim- (1) Related solely to the internal per- burse the Postal Service for the cost of sonnel rules and practices of the Postal responding to a demand, may include Service. the costs of time expended by Inspec- (2) Trade secrets, or privileged or tion Service employees, including at- confidential commercial or financial torneys, to process and respond to the information, obtained from any person. demand; attorney time for reviewing the demand and for legal work in con- (3) Information of a commercial na- nection with the demand; expenses gen- ture, including trade secrets, whether erated by equipment used to search for, or not obtained from a person outside produce, and copy the requested infor- the Postal Service, which under good mation; travel costs of the employee business practice would not be publicly and the agency attorney, including disclosed. This class includes, but is lodging and per diem where appro- not limited to: priate. Such fees shall be assessed at (i) Information pertaining to meth- the rates and in the manner specified ods of handling valuable registered in § 265.9. mail. (ii) At the discretion of the Inspec- (ii) Records of money orders, except tion Service where appropriate, fees as provided in R900 of the Domestic Mail and costs may be estimated and col- Manual (DMM). lected before testimony is given. (iii) Technical information con- (iii) The provisions in this section do cerning postage meters and prototypes not affect rights and procedures gov- submitted for Postal Service approval erning public access to official docu- prior to leasing to mailers.

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(iv) Reports of market surveys con- (i) Could reasonably be expected to ducted by or under contract in behalf interfere with enforcement proof the Postal Service. ceedings; (v) Records indicating rural carrier (ii) Would deprive a person of a right lines of travel. to a fair trial or an impartial adjudica- (vi) Records compiled within the tion; Postal Service which would be of po- (iii) Could reasonably be expected to tential benefit to persons or firms in constitute an unwarranted invasion of economic competition with the Postal personal privacy; Service. (iv) Could reasonably be expected to (vii) Information which, if publicly disclose the identity of a confidential disclosed, could materially increase source, including a State, local, or for- procurement costs. eign agency or authority or any pri- (viii) Information which, if publicly vate institution which furnished infor- disclosed, could compromise testing or mation on a confidential basis, and, in examination materials. the case of a record or information compiled by a criminal law enforce- (4) Interagency or internal memo- ment authority (such as the Postal In- randa or letters that would not be spection Service) in the course of a available by law to a private party in criminal investigation, or by an agency litigation with the Postal Service. conducting a lawful national security (5) Reports and memoranda of con- intelligence investigation, information sultants or independent contractors, furnished by a confidential source; except to the extent they would be re- (v) Would disclose techniques and quired to be disclosed if prepared with- procedures for law enforcement inves- in the Postal Service. tigations or prosecutions, or would dis- (6) Files personal in nature, including close guidelines for law enforcement medical and personnel files, the disclo- investigations or prosecutions if such sure of which would constitute a clear- disclosure could reasonably be ex- ly unwarranted invasion of personal pected to risk circumvention of the privacy. law; or (7) Information prepared for use in (vi) Could reasonably be expected to connection with proceedings under endanger the life or physical safety of chapter 36 of title 39, U.S. Code, relat- any individual. ing to rate, classification, and service (2) Whenever a request is made which changes. involves access to records that could (8) Information prepared for use in reasonably be expected to interfere connection with the negotiation of col- with law enforcement proceedings, and lective bargaining agreements under (i) The investigation or proceeding chapter 12 of title 39, U.S. Code, or involves a possible violation of crimi- minutes of, or notes kept during, nego- nal law; and tiating sessions conducted under such (ii) There is reason to believe that, chapter. (A) The subject of the investigation (9) Other matter specifically exempt- or proceeding is not aware of its pended from disclosure by statute. ency, and (c) Records or information compiled for (B) Disclosure of the existence of the law enforcement purposes. (1) Investiga- records could reasonably be expected to tory files compiled for law enforcement interfere with enforcement pro- purposes, whether or not considered ceedings, the Postal Service may, dur- closed, are exempt by statute from ing only such time as that cir- mandatory disclosure except to the ex- cumstance continues, treat the records tent otherwise available by law to a as not subject to the requirements of party other than the Postal Service, 39 the Freedom of Information Act. U.S.C. 410(c)(6). As a matter of policy, (3) Whenever informant records however, the Postal Service will nor- maintained by a criminal law enforce- mally make records or information ment agency (such as the Postal In- compiled for law enforcement purposes spection Service) under an informant’s available upon request unless the pro- name or personal identifier are reduction of these records: quested by a third party according to

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the informant’s name or personal iden- tion. (Lists of permit holders may not tifier, the records may be treated as be disclosed to members of the public. not subject to the requirements of the See paragraph (e)(1) of this section.) Freedom of Information Act unless the (3) Name and address of postage evi- informant’s status as an informant has dencing user. The name and address of been officially confirmed. an authorized user of a postage meter (4) Authority to disclose records or or PC Postage product (postage evi- information compiled for law enforce- dencing systems) printing a specified ment purposes to persons outside the indicium will be furnished to any per- Postal Service must be obtained from son upon the payment of any fees au- the Chief Postal Inspector, U.S. Postal thorized by § 265.9(b), provided the user Service, Washington, DC 20260–2100, or is using the postage meter or PC Post- designee. (d) Disclosure of names and addresses of age product for business purposes. The specifically identified Postal Service cus- request for this information must be tomers. Upon request, the names and sent to the manager of Postage Tech- addresses of specifically identified nology Management, Postal Service Postal Service customers will be made Headquarters. The request must in- available only as follows: clude the original or a photocopy of the (1) Change of address. The new address envelope or wrapper on which the post- of any specific customer who has filed age meter or PC postage indicium in a permanent or temporary change of question is printed, and a copy or de- address order (by submitting PS Form scription of the contents to support 3575, a hand-written order, or an elec- that the sender is a business or firm tronically communicated order) will be and not an individual. (Lists of author- furnished to any person, except that ized users of postage meters or PC the new address of a specific customer Postage products may not be disclosed who has indicated on the order that the to members of the public.) address change is for an individual or (4) Post Office boxholder information. an entire family will be furnished only Information from PS Form 1093, Appli- in those circumstances stated at para- cation for Post Office Box or Caller Serv- graph (d)(5) of this section. Disclosure ice, will be provided as follows: will be limited to the address of the (i) Except as provided in paragraph specifically identified individual about (d)(4)(iii) of this section, the boxholder whom the information is requested (not other family members or individ- applicant name and address from PS uals whose names may also appear on Form 1093 will be provided only in the change of address order). The Post- those circumstances stated in para- al Service reserves the right not to dis- graphs (d)(5)(i) through (iii) of this sec- close the address of an individual for tion. the protection of the individual’s per- (ii) Except as provided in paragraph sonal safety. Other information on PS (d)(4)(iii) of this section, the names of Form 3575 or copies of the form will not persons listed as receiving mail, other be furnished except in those cir- than the boxholder applicant, will be cumstances stated at paragraphs furnished from PS Form 1093 only in (d)(5)(i), (d)(5)(iii), or (d)(5)(iv) of this those circumstances stated in para- section. graphs (d)(5)(i) and (iii) of this section. (2) Name and address of permit holder. (iii) When a copy of a protective The name and address of the holder of order has been filed with the post- a particular bulk mail permit, permit master, information from PS Form 1093 imprint or similar permit (but not in- will not be disclosed except pursuant to cluding postage meter licenses), and the order of a court of competent juris- the name of any person applying for a diction. permit in behalf of a holder will be fur- (5) Exceptions. Except as otherwise nished to any person upon the filing of a proper FOIA request and payment of provided in these regulations, names or any applicable fees. For the name and addresses of specifically identified address of a postage meter license Postal Service customers will be fur- holder, see paragraph (d)(3) of this sec- nished only as follows:

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(i) To a Federal, State or local gov- using the standard format on the sub- ernment agency upon prior written cer- mitter’s own letterhead, the standard tification that the information is re- format must be used in its entirety. quired for the performance of its du- The warning statement and certifi- ties. The Postal Service requires gov- cation specifically must be included ernment agencies to use the format ap- immediately before the signature pearing at the end of this section when block. If the request lacks any of the requesting the verification of a cus- required information or a proper signa- tomer’s current address or a cus- ture, the postmaster will return it to tomer’s new mailing address. If the re- the requester specifying the deficiency. quest lacks any of the required infor- (iii) In compliance with a subpoena mation or a proper signature, the post- or court order, except that change of master will return the request to the address or boxholder information agency, specifying the deficiency in the which is not otherwise subject to dis- space marked ‘OTHER’. A copy of PS closure under these regulations may be Form 1093 may be provided. disclosed only pursuant to a court (ii)(A) To a person empowered by law order. to serve legal process, or the attorney (iv) To a law enforcement agency, for for a party in whose behalf service will oral requests made through the Inspec- be made, or a party who is acting pro tion Service, but only after the Inspec- se,1 upon receipt of written information tion Service has confirmed that the in- that specifically includes all of the fol- formation is needed in the course of a lowing: criminal investigation. (All other re- (1) A certification that the name or quests from law enforcement agencies address is needed and will be used sole- should be submitted in writing to the ly for service of legal process in con- postmaster as in paragraph (d)(5)(i) of nection with actual or prospective liti- this section.) gation; (6) Jury service. The mailing address (2) A citation to the statute or regu- of any customer sought in connection lation that empowers the requester to with jury service, if known, will be fur- serve process, if the requester is other nished without charge upon prior writ- than the attorney for a party in whose ten request to a court official, such as behalf service will be made, or a party a judge, court clerk or jury commis- who is acting pro se; sioner. (3) The names of all known parties to (7) Address verification. The address of the litigation; a postal customer will be verified at (4) The court in which the case has the request of a Federal, State, or local been or will be commenced; government agency upon written cer- (5) The docket or other identifying tification that the information is re- number, if one has been issued; and quired for the performance of the agen- (6) The capacity in which the cy’s duties. ‘‘Verification’’ means ad- boxholder is to be served, e.g., defend- vising such an agency whether or not ant or witness. its address for a postal customer is one (B) By submitting such information, at which mail for that customer is cur- the requester certifies that it is true. rently being delivered. ‘‘Verification’’ The address of an individual who files neither means nor implies knowledge with the postmaster a copy of a protec- on the part of the Postal Service as to tive court order will not be disclosed the actual residence of the customer or except as provided under paragraphs as to the actual receipt by the cus- (d)(5)(i), (iii), or (iv) of this section. A tomer of mail delivered to that ad- copy of Form 1093 will not be provided. dress. The Postal Service requires gov- The Postal Service suggests use of the ernment agencies to use the format ap- standard format appearing at the end pearing at the end of this section when of this section when requesting infor- requesting the verification of a cus- mation under this paragraph. When tomer’s current address or a customer’s new mailing address. If the re- 1 The term pro se means that a party is not quest lacks any of the required infor- represented by an attorney but by himself or mation or a proper signature, the post- herself. master will return the request to the

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agency, specifying the deficiency in the quest in accordance with the proce- space marked ‘‘OTHER’’. dures of § 265.3, the Postal Service will, (8) Business/Residence location. If the to the extent required by law, provide location of a residence or a place of a listing of postal employees working business is known to a Postal Service at a particular postal facility. employee, whether as a result of offi- (2) Records or other documents which cial duties or otherwise, the employee are classified or otherwise specifically may, but need not, disclose the loca- authorized by Executive Order 12356 tion or give directions to it. No fee is and implementing regulations to be charged for such information. kept secret in the interest of the na- (9) Private mailbox information. Infor- tional defense or foreign policy are not mation from PS Form 1583, Application subject to disclosure pursuant to this for Delivery of Mail Through Agent, will part. be provided as follows: (3) Records consisting of trade se- (i) Except as provided in paragraph crets or confidential financial data, the (d)(9)(iii) of this section, information disclosure of which is prohibited by 18 from PS Form 1583 will be provided U.S.C. 1905, are not subject to disclo- only in the circumstance stated in sure pursuant to this part. paragraph (d)(5)(iii) of this section. (4) Other records, the disclosure of (ii) To the public only for the purpose of identifying a particular address as which is prohibited by statute, are not an address of an agent to whom mail is subject to disclosure pursuant to this delivered on behalf of other persons. No part. other information, including, but not (f) Protection of the right of privacy. If limited to, the identities of persons on any record required or permitted by whose behalf agents receive mail, may this part to be disclosed contains the be disclosed to the public from PS name of, or other identifying details Form 1583. concerning, any person, including an (iii) Information concerning an indi- employee of the Postal Service, the vidual who has filed a protective court disclosure of which would constitute a order with the postmaster will not be clearly unwarranted invasion of per- disclosed except pursuant to the order sonal privacy, the name or other iden- of a court of competent jurisdiction. tifying details shall be deleted before (e) Information not available for public the record is disclosed and the redisclosure. (1) The Postal Service and quester so informed. its officers and employees shall not (g) Disclosure in part of otherwise ex- make available to the public by any empt record. Any reasonably segregable means or for any purpose any mailing portion of a record shall be provided list or other list of names and address- after deleting the information which is es (past or present) of postal patrons or neither subject to mandatory disclo- other persons in response to a request sure nor available as a matter of dis- under this part except that, upon a re- cretion.

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[81 FR 86271, Nov. 30, 2016, as amended at 82 266.5 Procedures for requesting notification, FR 12921, Mar. 8, 2017; 82 FR 32767, July 18, inspection, copying, or amendment of 2017; 83 FR 9433, Mar. 6, 2018] records. 266.6 Appeal procedure. PART 266—PRIVACY OF 266.7 Schedule of fees. 266.8 Exemptions. INFORMATION 266.9 Computer matching.

Sec. AUTHORITY: 5 U.S.C. 552a; 39 U.S.C. 401. 266.1 Purpose and scope. SOURCE: 82 FR 47116, Oct. 11, 2017, unless 266.2 Responsibility. otherwise noted. 266.3 Collection and disclosure of information about individuals. 266.4 Notification.

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§ 266.1 Purpose and scope. oversees Postal Service computer This part contains the rules that the matching activities. The Board’s prin- Postal Service follows under the Pri- cipal function is to review, approve, vacy Act of 1974, 5 U.S.C. 552a. These and maintain all written agreements rules should be read together with the for use of Postal Service records in Privacy Act, which provides additional matching programs to ensure compli- information about records maintained ance with the Privacy Act and all rel- on individuals. The rules in this part evant statutes, regulations, and guide- apply to all records in systems of lines. In addition, the Board annually: records maintained by the Postal Serv- Reviews matching programs and other ice that are retrieved by an individ- matching activities in which the Post- ual’s name or personal identifier. They al Service has participated during the describe the procedures by which indi- preceding year to determine compli- viduals may request notification of or ance with applicable laws, regulations, access to records about themselves, re- and agreements; compiles a biennial quest amendment of those records, and matching report of matching activi- request an accounting of disclosures of ties; and performs review and advice those records by the Postal Service. In functions relating to record accuracy, addition, the Postal Service processes recordkeeping and disposal practices, all Privacy Act requests for access to and other computer matching activi- records under the Freedom of Informa- ties. tion Act (FOIA), 5 U.S.C. 552, following (2) Composition. The Privacy Act re- the rules contained in 39 CFR 265, as quires that the senior official respon- necessary, which provides the re- sible for implementation of agency Pri- quester with the greatest access to his vacy Act policy and the Inspector Gen- or her personal records. eral serve on the Board. The Chief Pri- § 266.2 Responsibility. vacy and Records Management Officer, as administrator of Postal Service Pri- (a) Privacy and Records Management vacy Act policy, serves as Secretary of Office. The Privacy and Records Man- the Board and performs the adminis- agement Office will ensure Postal Serv- ice-wide compliance with this part. trative functions of the Board. The (b) Records Custodian. Records Board is composed of these and other Custodians are responsible for adher- members designated by the Postmaster ence to this part within their respec- General, as follows: tive units, and in particular for afford- (i) General Counsel and Executive ing individuals their rights to inspect Vice President (Chairman). and obtain copies of records concerning (ii) Chief Postal Inspector. them. (iii) Inspector General. (c) Corporate Information Security Of- (iv) Chief Human Resources Officer fice. This office is responsible for ensur- and Executive Vice President. ing compliance with information secu- (v) Chief Privacy and Records Man- rity policies, including protection of agement Officer. information resources containing customer, employee, or other individuals’ § 266.3 Collection and disclosure of in- information; developing policy for safe- formation about individuals. guarding and disposing of electronic (a) This section governs the collec- records (including emails) that are tion of information about individuals, maintained in information systems (including those that are subject to legal as defined in the Privacy Act of 1974, holds); serving as the central contact throughout Postal Service operations; for information security issues; pre- (1) The Postal Service will: venting and engaging in some inves- (i) Collect, solicit and maintain only tigation of cybercrime and misuse of such information about an individual Postal Service information technology as is relevant and necessary to accom- resources; and providing security con- plish a purpose authorized by statute sultation as requested. or Executive Order. (d) Data Integrity Board—(1) Respon- (ii) Collect information, to the great- sibilities. The Data Integrity Board est extent practicable, directly from

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the subject individual when such infor- (iii) The dissemination is in accord- mation may result in adverse deter- ance with paragraph (b)(2) of this sec- minations about an individual’s rights, tion. benefits, or privileges. (2) Dissemination. Dissemination of (iii) Inform any individuals who have personal information may be made: been asked to furnish information (i) To a person pursuant to a require- about themselves, whether that disclo- ment of the Freedom of Information sure is mandatory or voluntary, by Act (5 U.S.C. 552); what authority it is being solicited, the (ii) To those officers and employees principal purposes for which it is in- of the Postal Service or employees of a tended to be used, the routine uses Postal Service contractor who have a which may be made of it, and any con- need for such information in the per- sequences for the individual, which are formance of their Postal Service du- known to the Postal Service, which ties; will result from refusal to furnish it. (iii) For a routine use as contained in (2) The Postal Service will not dis- the system notices published in the favor any individual who fails or re- FEDERAL REGISTER; fuses to provide personal information unless that information is required or (iv) To a recipient who has provided necessary for the conduct of the sys- advance adequate written assurance tem or program in which the individual that the information will be used sole- desires to participate. ly as a statistical reporting or research (3) No information will be collected record, and to whom the information is (or maintained) describing how an indi- transferred in a form that is not individual exercises rights guaranteed by vidually identifiable; the First Amendment unless expressly (v) To the Bureau of the Census for authorized by statute or by the indi- purposes of planning or carrying out a vidual about whom the information is census or survey or related activity maintained or unless pertinent to and pursuant to the provisions of title 13 of within the scope of an authorized law the U.S. Code; enforcement activity. (vi) To the National Archives and (4) The Postal Service will not re- Records Administration as a record quire an individual to furnish a Social which has sufficient historical or other Security number or deny a right, privi- value to warrant its continued preser- lege or benefit because of that individ- vation by the U.S. Government, or for ual’s refusal to furnish the number un- evaluation by the Archivist of the less required by Federal law. United States or an authorized des- (b) Disclosures—(1) Limitations. The ignee to determine whether the record Postal Service will not disseminate in- has such value; formation about an individual unless (vii) To a person pursuant to a show- reasonable efforts have been made to ing of compelling circumstances affect- assure that the information is accu- ing the health or safety of an indi- rate, complete, timely and relevant to vidual, if upon such disclosure notifica- the extent provided by the Privacy Act tion is transmitted to the last known and unless: address of such individual; (i) The individual to whom the record (viii) To a Federal agency or to an in- pertains has requested in writing that strumentality of any governmental ju- the information be disseminated, un- risdiction within or under the control less the individual would not be enti- of the United States for a civil or tled to access to the record under the criminal law enforcement activity, if Postal Reorganization Act, the Privacy such activity is authorized by law and Act, or other law; if the head of the agency or instrumen- (ii) The requester has obtained the tality has made a written request to prior written consent of the individual the Postal Service specifying the par- to whom the record pertains, unless ticular portion of the record desired the individual would not be entitled to and the law enforcement activity for access to the record under the Postal which the record is sought; Reorganization Act, the Privacy Act, (ix) To either House of Congress or or other law; or its committees or subcommittees to

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the extent of matter within their juris- tion upon request: Grade, duty station, diction; dates of employment, job title, and sal- (x) To the Comptroller General or ary. If additional information is de- any of that officer’s authorized rep- sired, the requester must submit the resentatives in the course of the per- written consent of the employee and an formance of the duties of the Govern- accounting of the disclosure must be ment Accountability Office; or kept. (xi) Pursuant to the order of a court (5) Employee job references. Upon re- of competent jurisdiction. quest, prospective employers of a cur- (3) Under 39 U.S.C. 412(a), the Postal rent or former postal employee may be Service shall not make a mailing or furnished with the information in para- other list of names or addresses (past graph (b)(4) of this section, in addition or present) of postal patrons or other to the date and the reason for separa- persons available to the public, unless tion, if applicable. The reason for sepa- such action is authorized by law. Con- ration must be limited to one of the sistent with this provision, the Postal following terms: Retired, resigned, or Service may make such a list available separated. Other terms or variations of as follows: these terms (e.g., retired-disability) (i) In accordance with 39 U.S.C. may not be used. If additional informa- 412(b), to the Secretary of Commerce tion is desired, the requester must sub- for use by the Bureau of the Census; mit the written consent of the em- (ii) As required by the terms of a le- ployee, and an accounting of the disclo- gally enforceable contract entered into sure must be kept. by the Postal Service under its author- (6) Computer matching purposes. ity contained in 39 U.S.C. 401(3) and Records from a Postal Service system when subject to a valid non-disclosure of records may be disclosed to another agreement. The purpose of the contract agency for the purpose of conducting a must comply with 5 U.S.C. 552a(n), computer matching program or other which prohibits the sale or rental of an matching activity as defined in individual’s name and address; § 262.5(c) and (d), but only after a deter- (iii) As required by the terms of a le- mination by the Data Integrity Board gally enforceable interagency agree- that the procedural requirements of ment entered into by the Postal Serv- the Privacy Act, the guidelines issued ice under its authority contained in 39 by the Office of Management and Budg- U.S.C. 411 and when subject to a valid et, and these regulations as may be ap- non-disclosure agreement. The purpose plicable are met. These requirements of the interagency agreement must comply with 5 U.S.C. 552a(n), which include: prohibits the sale or rental of an indi- (i) Routine use. Disclosure is made vidual’s name and address; only when permitted as a routine use (iv) In accordance with 5 U.S.C. of the system of records. The Chief Pri- 552a(b), the Postal Service may dis- vacy and Records Management Officer close a list of names and addresses of determines the applicability of a par- individuals pursuant to a written re- ticular routine use and the necessity quest by, or with the prior written con- for adoption of a new routine use. sent of, each individual whose name (ii) Computer matching agreement. The and address is contained in such list, participants in a computer matching provided that such names and address- program must enter into a written es are derived from records maintained agreement specifying the terms under by the Postal Service in a system of which the matching program is to be records as defined by 5 U.S.C. 552a(a); conducted (see § 266.9). The Privacy and or Records Management Office may re- (v) As otherwise expressly authorized quire that other matching activities be by federal law. conducted in accordance with a written (4) Employee credit references. A credit agreement. bureau or other commercial firm from (iii) Data Integrity Board approval. No which a current or former postal em- record from a Postal Service system of ployee is seeking credit may be given records may be disclosed for use in a the following past or present informa- computer matching program unless the

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matching agreement has received ap- (c) Notification of amendment. See proval by the Postal Service Data In- § 266.5(c)(1) relating to amendment of tegrity Board (see § 266.9). Other match- records upon request. ing activities may, at the discretion of (d) Notification of new use. Any new the Privacy and Records Management intended use of personal information Office, be submitted for Board ap- maintained by the Postal Service will proval. be published in the FEDERAL REGISTER (c) Amendment or dispute disclosure. If 30 days before such use becomes oper- a personal record contains any amend- ational. Public views may then be sub- ments or notations of dispute relating mitted to the Privacy and Records to the accuracy, timeliness or rel- Management Office. evance of the record, any person or (e) Notification of exemptions. The other agency to which the record has Postal Service will publish in the FED- been or is to be disclosed must be in- ERAL REGISTER its intent to exempt formed of the amendments or notations any system of records and will specify within 30 days of the modification. the nature and purpose of that system. (d) Recording of disclosure. (1) An ac- (f) Notification of computer matching curate accounting of each disclosure program. The Postal Service publishes will be kept in all instances except in the FEDERAL REGISTER and forwards those in which disclosure is made to to Congress and to the Office of Man- the subject of the record, to Postal agement and Budget (OMB) advance Service employees or employees of notice of its intent to establish, sub- Postal Service contractors in the per- stantially revise, or renew a matching formance of their Postal Service du- program, unless such notice is pub- ties, when the record is publicly avail- lished by another participant agency. able, or as required by the Freedom of In those instances in which the Postal Information Act (5 U.S.C. 552). Service is the ‘‘recipient’’ agency, as (2) The accounting will be main- defined in the Act, but another partici- tained for at least 5 years or the life of pant agency sponsors and derives the the record, whichever is longer. principal benefit from the matching (3) The accounting will be made program, the other agency is expected available to the individual named in to publish the notice. The notice must the record upon inquiry, except for dis- be sent to Congress and OMB, and pub- closures made pursuant to paragraph lished at least 30 days prior to: (b)(2)(viii) of this section relating to (1) The initiation of any matching ac- law enforcement activities. tivity under a new or substantially revised program; or [82 FR 47116, Oct. 11, 2017, as amended at 83 (2) The expiration of the existing FR 3085, Jan. 23, 2018] matching agreement in the case of a renewal of a continuing program. § 266.4 Notification. (a) Notification of systems. Upon writ- § 266.5 Procedures for requesting noti- ten request, the Postal Service will no- fication, inspection, copying, or tify any individual whether a specific amendment of records. system named by the individual con- The purpose of this section is to pro- tains a record pertaining to that indi- vide procedures by which an individual vidual, unless exempt from notification may request notification of, access to, under the Privacy Act or other law. or amendment of personal information See § 266.5 for the suggested form of a within a Privacy Act System of request. Records. (b) Notification of disclosure. The Post- (a) Submission of requests—(1) Manner al Service will make reasonable efforts of submission. Inquiries regarding the to serve notice on an individual before contents of records systems or access any personal information on such indi- or amendment to personal information vidual is made available to any person should be submitted in writing in ac- under compulsory legal process when cordance with the procedures described such process becomes a matter of pub- in the applicable system of records no- lic record. tice, or to the Privacy and Records

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Management Office, U.S. Postal Serv- (2) Identification of requester. The re- ice, 475 L’Enfant Plaza SW., Wash- quester must present identification ington, DC 20260–1101. Requests to the sufficient to satisfy the custodian as to U.S. Postal Inspection Service should the requester’s identity prior to record be submitted to the Chief Postal In- review or other access. As appropriate spector, U.S. Postal Inspection Service, under the circumstances of the access 475 L’Enfant Plaza SW., Washington, request, the requester may be required DC 20260. Requests to the Office of In- to comply with one of the following spector General should be submitted to identification verification methods: the Freedom of Information Act/Pri- (i) Provision of a completed Certifi- vacy Officer, U.S. Postal Service Office cation of Identity if the records pertain of Inspector General, 1735 North Lynn to the requester available at http:// Street, Arlington, VA 22209–2020. In- about.usps.com/who-we-are/foia/wel- quiries should be clearly marked, come.htm; ‘‘Privacy Act Request.’’ Any inquiry (ii) Provision of official photo identi- concerning a specific system of records fication if the records pertain to the re- should include the information con- quester, examples of which are a valid tained under ‘‘Notification Procedure’’ driver’s license, unexpired passport, for that system as published in the and unexpired federal government- issued employee identification card; or FEDERAL REGISTER or within USPS Handbook AS–353, Guide to Privacy, the (iii) Provision of a completed Privacy if the records pertain to another Freedom of Information Act, and Records Waiver individual available at http:// Management, Appendix. If the informa- about.usps.com/who-we-are/foia/wel- tion supplied is insufficient to locate come.htm. or identify the record, if any, the re- (3) Responsibilities of requester. The requester will be notified promptly and, quester assumes the following respon- if possible, informed of additional in- sibilities regarding the review of offi- formation required. Amendment re- cial personal records: quests that contest the relevance, ac- (i) The requester must agree not to curacy, timeliness or completeness of leave Postal Service premises with offi- the record should include a statement cial records unless specifically given a of the amendment requested. copy for that purpose by the custodian (2) Period for response by custodian. or the custodian’s representative. Upon receipt of an inquiry, the custo- (ii) At the conclusion of the inspec- dian will respond with an acknowledge- tion, the requester must sign a statement of receipt within 10 days. ment indicating the requester has re- (b) Compliance with request for access— viewed specific records or categories of (1) Notification to requester. When a re- records. If the requester indicates at quested record has been identified and the beginning of the inspection that he is to be made available to the requester or she will not sign the statement, for inspection and copying, the custo- records may still be reviewed, and the dian must ensure that the record is time and date of review will be noted in made available promptly and must im- the file. mediately notify the requester where (iii) The requester may be accom- and when the record will be available panied by a person of the requester’s for inspection and copying. Postal choice to aid in the inspection of infor- Service records will normally be avail- mation and, if applicable, the manual able for inspection and copying during recording or copying of the records if regular business hours at the postal fa- the requester submits a signed state- cilities at which they are maintained. ment authorizing the person to do so, The custodian may, however, designate and discussion of the records in the ac- other reasonable locations and times companying person’s presence. for inspection and copying of some or (4) Special restrictions for medical and all of the records that are in the psychological records. A medical or psy- custodian’s possession. If the requested chological record must be disclosed to record has been identified and a copy is the requester to whom it pertains un- to be provided to the requester, the less, in the judgment of the medical of- copy must be promptly provided. ficer, access to such record could have

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an adverse effect upon such individual. Management Office is available to pro- When the medical officer determines vide an individual with assistance in that the disclosure of medical informa- exercising rights pursuant to this part. tion could have an adverse effect upon the individual to whom it pertains, the § 266.6 Appeal procedure. medical officer will transmit such in- (a) Appeal procedure. (1) If a request formation to a medical doctor named for notification of or to inspect, copy, by the requesting individual. In such or amend a record is denied, in whole cases, an accounting of the disclosure or in part, or if no determination is must be kept. made within the period prescribed by (5) Limitations on access. Nothing in this part, the requester may appeal to this section shall allow an individual the General Counsel, U.S. Postal Serv- access to any information compiled in reasonable anticipation of a civil ac- ice, 475 L’Enfant Plaza SW., Wash- tion or proceeding. Other limitations ington, DC 20260–1101. on access are specifically addressed in (2) The requester must submit an ap- paragraph (b)(4) of this section and peal in writing within 90 days of the § 266.8. date of denial, or within 90 days of such (6) Response when compliance is not request if the appeal is from a failure possible. A reply denying a written re- of the custodian to make a determina- quest to review or otherwise access a tion. The letter of appeal should in- record must be in writing, signed by clude, as applicable: the custodian or other appropriate offi- (i) Reasonable identification of the cial and must be made only if such a record to which the requester sought record does not exist or does not con- notification, access, or amendment; tain personal information relating to (ii) A statement of the Postal Service the requester, or is exempt from disclo- action or failure to act, and of the re- sure. This reply must include a state- lief sought; and ment regarding the determining fac- (iii) A copy of the request, of the no- tors of denial, and the right to appeal tification of denial, and of any other the denial to the General Counsel. related correspondence, if any. (c) Compliance with notification re- (3) Any record found on appeal to be quest. The custodian must promptly no- incomplete, inaccurate, not relevant, tify a requester if a record has been lo- or not timely, must be appropriately cated in response to a request for noti- amended within 30 working days of the fication as to whether a specific system date of such findings. of records contains a record pertaining (4) The decision of the General Coun- to the requester, unless exempt from sel constitutes the final decision of the notification. Postal Service on the right of the re- (d) Compliance with request for amend- quester to be notified of; inspect, copy, ment. The custodian must: or otherwise have access to; or change (1) Correct or eliminate any information that is found to be incomplete, in- or update a record. The decision on the accurate, not relevant to a statutory appeal must be in writing and, in the purpose of the Postal Service, or not event of a denial, must set forth the timely, and notify the requester when reasons for such denial and state the this action is complete; or individual’s right to obtain judicial re- (2) Not later than 30 working days view in a district court. An indexed file after receipt of a request to amend, no- of decisions on appeals must be main- tify the requester of a determination tained by the General Counsel. not to amend, the reason for the re- (b) Submission of statement of disagree- fusal, and of the requester’s right to ment. If the final decision concerning a appeal, or to submit, in lieu of an ap- request for the amendment of a record peal, a statement of reasonable length does not satisfy the requester, any setting forth a position regarding the statement of reasonable length pro- disputed information to be attached to vided by that individual setting forth a the contested personal record. position regarding the disputed infor- (e) Availability of assistance in exer- mation will be accepted and attached cising rights. The Privacy and Records to the relevant personal record.

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§ 266.7 Schedule of fees. visions hereof implementing any sub- (a) Policy. The purpose of this section sections of 5 U.S.C. 552a from which is to establish fair and equitable fees to those systems have been exempted. permit duplication of records for sub- (b) Paragraph (b)(1) of this section ject individuals (or authorized rep- summarizes the provisions of 5 U.S.C. resentatives) while recovering the full 552a for which exemption is claimed for allowable direct costs incurred by the some systems of records pursuant to, Postal Service. and to the extent permitted by, 5 (b) Duplication. (1) For duplicating U.S.C. 552a(j) and (k). Paragraphs (b)(2) any paper or micrographic record or through (5) of this section identify the publication or computer report, the fee exempted systems of records, the ex- is $.15 per page, except that the first emptions applied to each, and the rea- 100 pages furnished in response to a sons for the exemptions: particular request must be furnished (1) Explanation of provisions of 5 U.S.C. without charge. See paragraph (c) of 552a for which an exemption is claimed in this section for fee limitations. the systems discussed in this section. (i) (2) The Postal Service may at its dis- Subsection (c)(3) of 5 U.S.C. 552a re- cretion make user-paid copy machines quires an agency to make available to available at any location. In that the individual named in the records an event, requesters will be given the op- accounting of each disclosure of portunity to make copies at their own records at the individual’s request. expense. (ii) Subsection (c)(4) requires an (3) The Postal Service normally will agency to inform any person or other not furnish more than one copy of any agency to which a record has been dis- record. If duplicate copies are fur- closed of any correction or notation of nished at the request of the requester; dispute the agency has made to the a fee of $0.15 per page is charged for record in accordance with 5 U.S.C. each copy of each duplicate page with- 552a(d). out regard to whether the requester is (iii) Subsections (d)(1) through (4) re- eligible for free copies pursuant to § 266.7(b)(1). quire an agency to permit an indi- (c) Limitations. No fee will be charged vidual to gain access to records about to an individual for the process of re- the individual, to request amendment trieving, reviewing, or amending a of such records, to request a review of record pertaining to that individual. an agency decision not to amend such (d) Reimbursement. The Postal Service records, and to provide a statement of may, at its discretion, require reim- disagreement about a disputed record bursement of its costs as a condition of to be filed and disclosed with the dis- participation in a computer matching puted record. program or activity with another agen- (iv) Subsection (e)(1) requires an cy. The agency to be charged is noti- agency to maintain in its records only fied in writing of the approximate costs such information about an individual before they are incurred. Costs are cal- that is relevant and necessary to ac- culated in accordance with the sched- complish a purpose required by statute ule of fees set forth at § 265.9. or executive order of the President. (v) Subsection (e)(2) requires an agen- § 266.8 Exemptions. cy to collect information to the great- (a) The Postal Reorganization Act, 39 est extent practicable directly from U.S.C. 410(c), provides that certain cat- the subject individual when the infor- egories of information are exempt from mation may result in adverse deter- disclosure under the Privacy Act. In minations about an individual’s rights, addition, the Privacy Act, 5 U.S.C. benefits, and privileges under Federal 552a(j) and (k), authorizes the Post- programs. master General to exempt systems of (vi) Subsection (e)(3) requires an records meeting certain criteria from agency to inform each person whom it various other subsections of 5 U.S.C. asks to supply information of the au- 552a. With respect to systems of thority under which the information is records so exempted, nothing in this sought, the purposes for which the in- part shall require compliance with pro- formation will be used, the routine

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uses that may be made of the informa- nal laws. The reasons for exemption tion, whether disclosure is mandatory follow: or voluntary, and the effects of not (i) Disclosure to the record subject providing the information. pursuant to subsections (c)(3), (c)(4), or (vii) Subsections (e)(4)(G) and (H) re- (d)(1)–(4) could: quires an agency to publish a FEDERAL (A) Alert subjects that they are tar- REGISTER notice of its procedures gets of an investigation or mail cover whereby an individual can be notified by the Postal Inspection Service or an upon request whether the system of investigation by the Office of Inspector records contains information about the General; individual, how to gain access to any (B) Alert subjects of the nature and record about the individual contained scope of the investigation and of evi- in the system, and how to contest its dence obtained; content. (C) Enable the subject of an inves- (viii) Subsection (e)(5) requires an tigation to avoid detection or appre- agency to maintain its records with hension; such accuracy, relevance, timeliness, (D) Subject confidential sources, wit- and completeness as is reasonably nec- nesses, and law enforcement personnel essary to ensure fairness to the indi- to harassment or intimidation if their vidual in making any determination identities were released to the target of about the individual. an investigation; (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 make them reluctant to offer in- becomes a matter of public record. formation; (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; or to the individual, obtain access to the (H) Seriously impede or compromise record, and request amendment. law enforcement, mail cover, or back- (xi) Subsection (g) provides for civil ground investigations that might in- remedies if an agency fails to comply volve law enforcement aspects as a re- with the access and amendment provi- sult of the above. sions of subsections (d)(1) and (3), and (ii) Application of subsections (e)(1) with other provisions of 5 U.S.C. 552a, and (5) is impractical because the rel- or any rule promulgated thereunder, in evance, necessity, or correctness of such a way as to have an adverse effect specific information might be estab- on an individual. lished only after considerable analysis (xii) Subsection (m) requires an agen- and as the investigation progresses. As cy to apply the requirements of 5 to relevance (subsection (e)(1)), effec- U.S.C. 552a to a contractor operating a tive law enforcement requires the system of records to accomplish an keeping of information not relevant to agency function. a specific Postal Inspection Service in- (2) Pursuant to 5 U.S.C. 552a(j)(2), vestigation or Office of Inspector Gen- Postal Service record systems; Inspec- eral investigation. Such information tion Service Investigative File System, may be kept to provide leads for appro- USPS 700.000; Mail Cover Program priate law enforcement and to estab- Records, USPS 700.100; Inspector General lish patterns of activity that might re- Investigative Records, USPS 700.300 are late to the jurisdiction of the Office of exempt from subsections 552a (c)(3), Inspector General, Postal Inspection (c)(4), (d)(1)–(4), (e)(1)–(3), (e)(4)(G) and Service, and other agencies. As to ac- (H), (e)(5), (e)(8), (f), (g), and (m) be- curacy (subsection (e)(5)), the correct- cause the systems contain information ness of records sometimes can be estab- pertaining to the enforcement of crimi- lished only in a court of law.

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(iii) Application of subsections (e)(2) gram Records, USPS 700.100; and Inspec- and (3) would require collection of in- tor General Investigative Records, USPS formation directly from the subject of 700.300, are exempt from subsections a potential or ongoing investigation. 552a(c)(3), (d)(1)–(4), (e)(1), (e)(4) (G) and The subject would be put on alert that (H), and (f) for the same reasons as he or she is a target of an investigation stated in paragraph (b)(2) of this sec- by the Office of Inspector General, or tion. an investigation or mail cover by the (ii) Labor Relations Records, USPS Postal Inspection Service, enabling 200.000, is exempt from subsections avoidance of detection or apprehen- 552a(d)(1)–(4), (e)(4)(G) and (H), and (f) sion, thereby seriously compromising for the following reasons: law enforcement, mail cover, or back- (A) Application of the requirements ground investigations involving law en- at subsections (d)(1)–(4) would cause forcement aspects. Moreover, in cer- disruption of the enforcement of the tain circumstances the subject of an laws relating to equal employment op- investigation is not required to provide portunity (EEO). It is essential to the information to investigators, and infor- integrity of the EEO complaint system mation must be collected from other that information collected in the in- sources. vestigative process not be prematurely (iv) The requirements of subsections disclosed. (e)(4)(G) and (H), and (f) do not apply (B) The requirements of subsections because these systems are exempt from (e)(4)(G) and (H), and (f) do not apply the provisions of subsection (d). Never- for the same reasons described in para- theless, the Postal Service has pub- graph (b)(2)(iv) of this section. lished notice of its notification, access, and contest procedures because access (iii) Financial Transactions, USPS is appropriate in some cases. 860.000, is exempt from subsections (v) Application of subsection (e)(8) 552a(c)(3), (d)(1)–(4), (e)(1), (e)(4)(G) and could prematurely reveal an ongoing (H), and (f) for the following reasons: criminal investigation to the subject of (A) Disclosure of the record subject the investigation. pursuant to subsections (c)(3) and (vi) The provisions of subsection (g) (d)(1)–(4) would violate the non-notifi- do not apply because exemption from cation provision of the Bank Secrecy the provisions of subsection (d) renders Act, 31 U.S.C. 5318(g)(2), under which the provisions on suits to enforce sub- the Postal Service is prohibited from section (d) inapplicable. notifying a transaction participant (vii) If one of these systems of that a suspicious transaction report records is operated in whole or in part has been made. In addition, the access by a contractor, the exemptions provisions of subsections (c)(3) and claimed herein will remain applicable (d)(1)–(4) would alert individuals that to it (subsection (m)). they have been identified as suspects or (3) Pursuant to 5 U.S.C. 552a(k)(2), possible subjects of investigation and Postal Service record systems Labor thus seriously hinder the law enforce- Relations Records, USPS 200.000; Em- ment purposes underlying the sus- ployee Inquiry, Complaint and Investiga- picious transaction reports. tive Records, USPS 100.900; Inspection (B) This system is in compliance with Service Investigative File System, USPS subsection (e)(1) because maintenance 700.000; Mail Cover Program Records, of the records is required by law. Strict USPS 700.100; Inspector General Inves- application of the relevance and neces- tigative Records, USPS 700.300; and Fi- sity requirements of subsection (e)(1) nancial Transactions, USPS 860.000, are to suspicious transactions would be im- exempt from certain subsections of 5 practical, however, because the rel- U.S.C. 552a because the systems con- evance or necessity of specific informa- tain investigatory material compiled tion can often be established only after for law enforcement purposes other considerable analysis and as an inves- than material within the scope of sub- tigation progresses. section 552a(j)(2). (C) The requirements of subsections (i) Inspection Service Investigative File (e)(4)(G) and (H) and (f) do not apply System, USPS 700.000; Mail Cover Pro- because this system is exempt from the

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provisions of subsection (d). Neverthe- contest procedures because access is less, the Postal Service has published appropriate in some cases. notice of its notification, access, and (ii) Inspection Service Investigative File contest procedures because access is System, USPS 700.000; and Inspector Gen- appropriate in some cases. eral Investigative Records, USPS 700.300, (4) Pursuant to 5 U.S.C. 552a(k)(5), are exempt from subsections 552a(c)(3), Postal Service record systems Recruit- (d)(1)–(4), (e)(1), (e)(4) (G) and (H), and ing, Examining, and Placement Records, (f) for the same reasons as stated in USPS 100.100; Inspection Service Inves- paragraph (b)(2) of this section. tigative File System, USPS 700.000; and (5) Pursuant to 5 U.S.C. 552a(k)(6), Inspector General Investigative Records, Postal Service record systems Employee USPS 700.300 are exempt from certain Development and Training Records, USPS subsections of 5 U.S.C. 552a because the 100.300; Personnel Research Records, systems contain investigatory material 100.600; and Emergency Management compiled for the purpose of deter- Records, USPS 500.300 are exempt from mining suitability, eligibility, or quali- subsections 552a(d)(1)–(4), (e)(4)(G) and fications for employment, contracts, or (H), and (f) because the systems con- access to classified information. tain testing or examination material (i) Recruiting, Examining, and Place- the disclosure of which would comment Records, USPS 100.100, is exempt promise the objectivity or fairness of from subsections 552a(d)(1)(4) and (e)(1) the material. The reasons for exemp- for the following reasons: tion follow: (A) During its investigation and eval- (i) These systems contain questions uation of an applicant for a position, and answers to standard testing mate- the Postal Service contacts individuals rials, the disclosure of which would who, without an assurance of anonym- compromise the fairness of the future ity, would refuse to provide informa- use of these materials. It is not feasible tion concerning the subject of the in- to develop entirely new examinations vestigation. If a record subject were after each administration as would be given access pursuant to subsection necessary if questions or answers were (d)(1)–(4), the promised confidentiality available for inspection and copying. would be breached and the confidential Consequently, exemption from sub- source would be identified. The result section (d) is claimed. would be restriction of the free flow of (ii) The requirements of subsections information vital to a determination of (e)(4)(G) and (H), and (f) do not apply an individual’s qualifications and suit- because these systems are exempt from ability for appointment to or continued the provisions of subsection (d). Never- occupancy of his or her position. theless, the Postal Service has pub- (B) In collecting information for in- lished notice of its notification, access, vestigative and evaluative purposes, it and contest procedures because access is impossible to determine in advance is appropriate in some cases. what information might be of assistance in determining the qualifications § 266.9 Computer matching. and suitability of an individual for ap- (a) General. Any agency or Postal pointment. Information that seems ir- Service component that wishes to use relevant, when linked with other infor- records from a Postal Service automation, can sometimes provide a com- mated system of records in a computer- posite picture of an individual that as- ized comparison with other postal or sists in determining whether that indi- non-postal records must submit its pro- vidual should be appointed to or re- posal to the Postal Service Privacy and tained in a position. For this reason, Records Management Office. Computer exemption from subsection (e)(1) is matching programs as defined in claimed. § 262.5(c) must be conducted in accord- (C) The requirements of subsections ance with the Privacy Act, as amended (e)(4)(G) and (H), and (f) do not apply by the Computer Matching and Privacy because this system is exempt from the Protection Act of 1988. Records may provisions of subsection (d). Neverthe- not be exchanged for a matching pro- less, the Postal Service has published gram until all procedural requirements notice of its notification, access, and of the Act and these regulations have

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been met. Other matching activities (v) Procedures for verifying informa- must be conducted in accordance with tion produced in a matching program the Privacy Act and with the approval and for providing individuals an oppor- of the Privacy and Records Manage- tunity to contest the findings in ac- ment Office. See § 266.3(b)(6). cordance with the requirement that an (b) Procedure for submission of match- agency may not take adverse action ing proposals. A proposal must include against an individual as a result of in- information required for the matching formation produced by a matching pro- agreement discussed in paragraph (d)(1) gram until the agency has independ- of this section. The Inspection Service ently verified the information and pro- must submit its proposals for matching vided the individual with due process; programs and other matching activi- (vi) Procedures for ensuring the ad- ties to the Privacy and Records Man- ministrative, technical, and physical agement Office through: Counsel, In- security of the records matched; for spection Service, U.S. Postal Service, the retention and timely destruction of 475 L’Enfant Plaza SW., Washington, records created by the matching pro- DC 20260. All other matching proposals, gram; and for the use and return or de- whether from postal organizations or struction of records used in the pro- other government agencies, must be gram; mailed directly to: Privacy and (vii) Prohibitions concerning duplica- Records Management Office, U.S. Post- tion and redisclosure of records ex- al Service, 475 L’Enfant Plaza SW., changed, except where required by law Washington, DC 20260–1101. or essential to the conduct of the (c) Lead time. Proposals must be sub- matching program; mitted to the Postal Service Privacy (viii) Assessments of the accuracy of and Records Management Office at the records to be used in the matching least three months in advance of the program; and anticipated starting date to allow time (ix) A statement that the Comp- to meet Privacy Act publication and troller General may have access to all review requirements. records of the participant agencies in (d) Matching agreements. The partici- order to monitor compliance with the pants in a computer matching program agreement. must enter into a written agreement (2) Approval. Before the Postal Serv- specifying the terms under which the ice may participate in a computer matching program is to be conducted. matching program or other computer The Privacy and Records Management matching activity that involves both Office may require similar written USPS and non-USPS records, the Data agreements for other matching activi- Integrity Board must have evaluated ties. the proposed match and unanimously (1) Content. Agreements must specify: approved the terms of the matching (i) The purpose and legal authority agreement. Agreements are executed for conducting the matching program; by the Chairman of the Board. If a (ii) The justification for the program matching agreement is disapproved by and the anticipated results, including, the Board, any party may appeal the when appropriate, a specific estimate disapproval in writing to the Director, of any savings in terms of expected Office of Management and Budget, costs and benefits, in sufficient detail Washington, DC 20503, within 30 days for the Data Integrity Board to make following the Board’s written dis- an informed decision; approval. (iii) A description of the records that (3) Effective dates. The agreement will are to be matched, including the data become effective in accordance with elements to be used, the number of the date in the matching agreement records, and the approximate dates of and as provided to Congress and the Of- the matching program; fice of Management and Budget and (iv) Procedures for providing notice published in the FEDERAL REGISTER. to individuals who supply information The agreement remains in effect only that the information may be subject to as long as necessary to accomplish the verification through computer match- specific matching purpose, but no ing programs; longer than 18 months, at which time

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the agreement expires unless extended. both restricted and national security The Data Integrity Board may extend information. an agreement for one additional year, [44 FR 51224, Aug. 31, 1979] without further review, if within three months prior to expiration of the 18- § 267.3 Responsibility. month period it finds that the match- (a) Chief Postal Inspector and Chief ing program is to be conducted without Privacy Officer. The Chief Postal In- change, and each party to the agree- spector and the Chief Privacy Officer ment certifies that the program has will ensure within their respective been conducted in compliance with the areas of jurisdiction: matching agreement. Renewal of a con- (1) Postal Service-wide compliance tinuing matching program that has run with this policy and related standards for the full 30-month period requires a and procedures; and new agreement that has received Data (2) Implementation of remedial ac- Integrity Board approval. tion when violations or attempted violations of these standards and proce- PART 267—PROTECTION OF dures occur. INFORMATION (b) Custodians. All custodians are responsible for insuring that information Sec. security standards and procedures are 267.1 Purpose and scope. followed and that all relevant employ- 267.2 Policy. ees participate in the information se- 267.3 Responsibility. curity awareness programs. 267.4 Information security standards. [40 FR 45726, Oct. 2, 1975, as amended at 60 FR 267.5 National Security Information. 57345, Nov. 15, 1995; 68 FR 56560, Oct. 1, 2003] AUTHORITY: 39 U.S.C. 401; Pub. L. 93–579, 88 Stat. 1896. § 267.4 Information security standards. (a) The Postal Service will operate § 267.1 Purpose and scope. under a uniform set of information se- This part addresses the protection of curity standards which address the fol- information and records in the custody lowing functional aspects of informa- of the Postal Service throughout all tion flow and management: phases of information flow and within (1) Information system development, all organization components, and in- (2) Information collection, cludes micromated, manual and data (3) Information handling and proc- processing information. essing, (4) Information dissemination and [40 FR 45726, Oct. 2, 1975] disclosure, (5) Information storage and destruc- § 267.2 Policy. tion, Consistent with the responsibility of (b) Supplementing this list are infor- the Postal Service to make its official mation security standards pertaining records available to the public to the to the following administrative areas: maximum extent required by the pub- (1) Personnel selection and training, lic interest, and to ensure the security, (2) Physical environment protection, confidentiality, and integrity of offi- (3) Contingency planning, cial records containing sensitive or na- (4) Information processing or storage tional security information, it is the system procurement, policy of the Postal Service to main- (5) Contractual relationships. tain definitive and uniform informa- [40 FR 45726, Oct. 2, 1975; 40 FR 48512, Oct. 16, tion security safeguards. These safe- 1975] guards will have as their purpose: (a) Ensuring the effective operation of the § 267.5 National Security Information. Postal Service through appropriate (a) Purpose and scope. The purpose of controls over critical information, and this section is to provide regulations (b) Protecting personal privacy, the implementing Executive Order 12356 public interest, and the national secu- National Security Information (herein- rity by limiting unauthorized access to after referred to as the Executive

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Order) which deals with the protection, taining national security information handling and classification of national at USPS Headquarters and to provide security information. functional direction to the field. (b) Definitions. (1) In this section, Na- (v) In conjunction with the USPS Se- tional Security Information means infor- curity Officer, prepare and issue in- mation on the national defense and for- structions for the control, protection, eign relations of the United States that and derivative classification of na- has been determined under the Execu- tional security information in the cus- tive Order or prior Orders to require tody of, and use by, the Postal Service. protection against unauthorized disclo- These instructions shall include re- sure and has been so designated. quirements that: (2) Derivative Classification means the (A) A demonstrable need for access to carrying forward of a classification national security information is estab- from one document to a newly created lished before requesting the initiation document that contains national secu- of administrative clearance procedures; rity information which is in substance (B) Ensure that the number of people the same as information that is cur- granted access to national security in- rently classified. formation is reduced to and maintained (3) In the Custody of the Postal Service at the minimum number consistent means any national security informa- with operational requirements and tion transmitted to and held by the needs; U.S. Postal Service for the information (vi) Establish, staff and direct activi- and use of postal officials. (This does ties for controlling documents con- not include any national security in- taining national security information formation in the U.S. Mails.) at USPS Headquarters and provide (c) Responsibility and authority. (1) functional direction to each Regional The Manager, Payroll Accounting and Records Control Officer; Records, serves as the USPS National (vii) As part of the overall program Security Information Oversight Offi- implementation, develop a training cer. This officer shall: program to familiarize appropriate (i) Conduct an active oversight pro- postal employees of the requirements gram to ensure that the appropriate for control, protection and classifica- provisions of these regulations are tion; and complied with; (ii) Chair a committee composed of (viii) Report to the USPS Security the Manager, Payroll Accounting and Officer any incidents of possible loss or Records; the Chief Postal Inspector compromise of national security infor- (USPS Security Officer); the General mation. Counsel; the Executive Assistant to the (2) The USPS Security Officer (the Postmaster General; and the Director, Chief Postal Inspector) shall: Operating Policies Office; or their des- (i) Provide technical guidance to the ignees, with authority to act on all Manager, Payroll Accounting and suggestions and complaints concerning Records in implementing the national compliance by the Postal Service with security information program; the regulations in this part; (ii) Conduct investigations into re- (iii) Ensure that appropriate and ported program violations or loss or prompt corrective action is taken possible compromise of national secu- whenever a postal employee know- rity information and report any actual ingly, willfully and without authoriza- loss or compromise to the originating tion: agency; (A) Discloses national security infor- (iii) Periodically conduct an audit of mation properly classified under the the USPS national security informa- Executive order, or prior orders, tion program; (B) Compromises properly classified (iv) Process requests for sensitive information through negligence, or clearances; conduct the appropriate in- (C) Violates any provisions of these vestigations and grant or deny a sen- regulations or procedures; sitive clearance to postal employees (iv) Establish, staff, and direct ac- having an official ‘‘need to know’’ na- tivities for controlling documents con- tional security information; and

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(v) Report to the Attorney General sification and release of information), any evidence of possible violations of including requests by the news media, federal criminal law by a USPS em- should be submitted to: Manager, ployee and of possible violations by Records Office, U.S. Postal Service, 475 any other person of those federal crimi- L’Enfant Plaza, SW., Washington, DC nal laws. 20260. (3) All postal employees who have ac- (ii) In response to an FOIA request or cess to national security information a mandatory review request, the Postal shall: Service shall not refuse to confirm the (i) Sign a nondisclosure agreement; existence or non-existence of a docu- (ii) Be familiar with and follow all ment, unless the fact of its existence or Program regulations and instructions; non-existence would itself be classifi- (iii) Actively protect and be accountable. able for all national security informa- (iii) The Postal Service shall forward tion entrusted to their care; all FOIA and mandatory review re- (iv) Disclose national security infor- quests for national security informa- mation only to another individual who tion in its custody (including that is authorized access; within records derivatively classified (v) Immediately report to the Man- by the USPS) to the originating agency ager, Payroll Accounting and Records for review unless the agency objects on and the USPS Security Officer any suspected or actual loss or compromise of the grounds that its association with national security information; and the information requires protection. (vi) Be subject to administrative The requester shall be notified that: sanctions should requirements (ii) (A) The request was referred; and through (v) not be followed. (B) The originating agency will pro- (d) Derivative classification. When ap- vide a direct response. plying derivative classifications to doc- (4) Research requests. Requests from uments created by the Postal Service, historical researchers for access to na- the Postal Service shall: tional security information shall be re- (1) Respect original classification deferred to the originating agency. cisions; (39 U.S.C. 401 (2), (10), 404(a)(7)) (2) Verify the information’s current level of classification so far as prac- [44 FR 51224, Aug. 31, 1979, as amended at 45 ticable before applying the markings; FR 30069, May 7, 1980; 49 FR 22476, May 30, and 1984; 60 FR 57345, 57346, Nov. 15, 1995; 64 FR (3) Carry forward to any newly cre- 41291, July 30, 1999; 68 FR 56560, Oct. 1, 2003] ated documents the assigned dates or events for declassification or review PART 268—PRIVACY OF INFORMA- and any additional authorized mark- TION—EMPLOYEE RULES OF ings in accordance with section 2 of the CONDUCT Executive order. (e) General provisions—(1) Dissemina- Sec. tion. National security information re- 268.1 General principles. ceived by the U.S. Postal Service shall 268.2 Consequences of non-compliance. not be further disseminated to any other agency without the consent of AUTHORITY: 39 U.S.C. 401; 5 U.S.C. 552a. the originating agency. § 268.1 General principles. (2) Disposal. Classified documents no longer needed by the Postal Service In order to conduct its business, the shall be either properly destroyed or Postal Service has the need to collect returned to the originating agency. various types of personally identifiable (3) Freedom of Information Act or information about its customers, em- mandatory review requests. ployees and other individuals. Informa- (i) Requests for classified documents tion of this nature has been entrusted made under the Freedom of Informa- to the Postal Service, and employees tion Act (FOIA) and mandatory review handling it have a legal and ethical ob- requests (requests under Section 3–501 ligation to hold it in confidence and to of the Executive Order for the declas- actively protect it from uses other

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than those compatible with the pur- records which contain individually pose for which the information was col- identifiable information and who, lected. This obligation is legally im- knowing that disclosure of the specific posed by the Privacy Act of 1974, which material is prohibited by Postal Serv- places specific requirements upon all ice regulations, willfully discloses the Federal agencies, including the Postal material to a person or agency not en- Service, and their employees. In imple- titled to receive it, shall be guilty of a mentation of these requirements, the misdemeanor and fined not more than following rules of conduct apply: $5,000. (a) Except as specifically authorized (2) Any officer or employee who will- in § 266.4(b)(2) of this chapter, no em- fully maintains a system of records ployee shall disclose, directly or indi- without meeting the notice require- rectly, the contents of any record ments set forth in Postal Service regu- about another individual to any person lations shall be guilty of a mis- or organization. Managers are to pro- demeanor and fined not more than vide guidance in this regard to all em- $5,000. ployees who must handle such informa- (3) Any person who knowingly and tion. willfully requests or obtains any record (b) No employee will maintain a secret concerning another individual from the system of records about individuals. All Postal Service under false pretense records systems containing personally shall be guilty of a misdemeanor and identifiable information about individ- fined not more than $5,000. uals must be reported to the Manager, (c) In addition to the criminal sanc- Records Office. tions, any employee violating any pro- (c) All employees shall adhere strict- visions of these rules of conduct is sub- ly to the procedures established by the ject to disciplinary action which may U.S. Postal Service to ensure the con- result in dismissal from the Postal fidentiality and integrity of informa- Service. tion about individuals that is collected, [40 FR 45726, Oct. 2, 1975] maintained and used for official Postal Service business. Employees shall be held responsible for any violation of PART 273—ADMINISTRATION OF these procedures. PROGRAM FRAUD CIVIL REM- EDIES ACT [45 FR 44273, July 1, 1980, as amended at 60 FR 57346, Nov. 15, 1995; 68 FR 56560, Oct. 1, 2003] Sec. 273.1 Purpose. § 268.2 Consequences of non-compli- 273.2 Definitions. ance. 273.3 Liability for false claims and statements. (a) The Privacy Act authorizes any 273.4 Non-exclusivity of penalty authority. individual, whether or not an em- 273.5 Investigations of alleged violations. ployee, to bring a civil action in U.S. 273.6 Evaluation by reviewing official. District Court to obtain judicial review 273.7 Concurrence of Attorney General. of the failure of the Postal Service to 273.8 Issuance of complaint. comply with the requirements of the 273.9 Collection of civil penalties or assessments. Act or its implementing regulations. In 273.10 Reports. certain instances of willful or inten- tional non-compliance, the plaintiff AUTHORITY: 31 U.S.C. Chapter 38; 39 U.S.C. may recover damages from the Postal 401. Service in the minimum amount of SOURCE: 52 FR 12901, Apr. 20, 1987, unless $1,000 together with costs of the action otherwise noted. and attorney fees. (b) The Act provides criminal sanc- § 273.1 Purpose. tions for individuals, including employ- This part establishes procedures for ees, who violate certain of its provi- imposing civil penalties and assess- sions. ments under the Program Fraud Civil (1) Any officer or employee who, by Remedies Act of 1986 (codified at 31 virtue of his employment or position, U.S.C. 3801–3812) against any person has possession of, or access to, official who makes, submits, or presents, or

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causes to be made, submitted, or pre- § 962.21 of this title any designee within sented, a false fictitious, or fraudulent the Judicial Officer Department. claim or written statement to the (e) Knows or has reason to know, for Postal Service. Procedures governing purposes of establishing liability under the hearing and appeal rights of any 31 U.S.C. 3802, means that, with respect person alleged to be liable for such pen- to a claim or statement, although no alties and assessments are set forth in proof of specific intent to defraud is re- part 962 of this title. quired, a person: (1) Has actual knowledge that the § 273.2 Definitions. claim or statement is false, fictitious, (a) Claim means any request, demand, or fraudulent; or submission: (2) Acts in deliberate ignorance of the (1) Made to the Postal Service for truth or falsity of the claim or state- property, services, or money (including ment; or money representing grants, loans, in- (3) Acts in reckless disregard of the surance, or benefits); or truth or falsity of the claim or state- (2) Made to a recipient of property, ment. services, or money from the Postal Service or to a party to a contract with (f) Person refers to any individual, the Postal Service: partnership, corporation, association, (i) For property or services if the or private organization. United States: (g) Postmaster General refers to the (A) Provided such property or serv- Postmaster General of the United ices; States or his designee. (B) Provided any portion of the funds (h) Presiding Officer refers to an Ad- for the purchase of such property or ministrative Law Judge designated by services; or the Judicial Officer to conduct a hear- (C) will reimburse such recipient or ing authorized by 31 U.S.C. 3803 in ac- party for the purchase of such property cordance with Part 962 of this title. or services; or (i) Respondent refers to any person al- (ii) For the payment of money (in- leged to be liable for civil penalty or cluding money representing grants, assessment under 31 U.S.C. 3802. loans, insurance or benefits) if the (j) Reviewing Official refers to the United States: General Counsel of the Postal Service (A) Provided any portion of the or any designee within the Law Depart- money requested or demanded; or ment who serves in a position for (B) Will reimburse such recipient or which the rate of basic pay is not less party for any portion of the money than the minimum rate of basic pay for paid on such request or demand; or grade GS–16 under the General Sched- (3) Made to the Postal Service which ule. has the effect of decreasing an obliga- (k) Statement means any representation to pay or account for property, tion, certification, affirmation, docu- services, or money. ment, record, or accounting or book- (b) Complaint refers to the adminis- keeping entry made: trative Complaint served by the Re- viewing Official on a Respondent pur- (1) With respect to a claim or to ob- suant to § 273.8. tain the approval or payment of a (c) Investigating Official refers to the claim (including relating to eligibility Inspector General of the Postal Service to make a claim); or or any designee within the United (2) With respect to (including relat- States Office of the Inspector General ing to eligibility for)— who serves in a position for which the (i) A contract with, or a bid or pro- rate of basic pay is not less than the posal for a contract with; or minimum rate of basic pay for grade (ii) A grant, loan, or benefit from, the GS–15 under the General Schedule. Postal Service, or any State, political (d) Judicial Officer refers to the Judi- subdivision of a State, or other party, cial Officer or Acting Judicial Officer if the United States Government proof the United States Postal Service or vides any portion of the money or prop- for purposes other than specified in erty under such contract or for such

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grant, loan, or benefit, or if the Gov- (5) If the Government has made pay- ernment will reimburse such State, po- ment on a claim, a person subject to litical subdivision, or party for any the civil penalty referred to in para- portion of the money or property under graph (a)(1) of this section shall also be such contract or for such grant, loan or subject to an assessment of not more benefit. than twice the amount of such claim or [52 FR 12901, Apr. 20, 1987, as amended at 56 twice the amount of that portion FR 55825, Oct. 30, 1991; 67 FR 16024, Apr. 4, thereof that is determined to be in vio- 2002; 72 FR 39012, July 17, 2007] lation of paragraph (a)(1) of this section. This assessment shall be in lieu of § 273.3 Liability for false claims and damages sustained by the United statements. States because of such claim. Section 3802 of title 31, United States (b) Statements. (1) Any person who Code, provides for liability as follows: makes, presents, or submits, or causes (a) Claims. (1) Any person who makes, to be made, presented, or submitted, a presents, or submits, or causes to be written statement that— made, presented, or submitted, a claim (i) The person knows or has reason to that the person knows or has reason to know— know— (A) Asserts a material fact which is (i) Is false, fictitious, or fraudulent; false, fictitious, or fraudulent; or or (B) Is false, fictitious, or fraudulent (ii) Includes or is supported by any because it omits a material fact that written statement asserting a material the person making, presenting or sub- fact which is false, fictitious, or fraud- mitting such statement had a duty to ulent; or include in such statement; and (iii) Includes or is supported by any (ii) Contains or is accompanied by an written statement that— express certification or affirmation of (A) Omits a material fact; the truthfulness and accuracy of the (B) Is false, fictitious, or fraudulent contents of the statement. as a result of such omission; and Shall be subject to, in addition to any (C) Is a statement in which the per- other remedy that may be prescribed son making, presenting, or submitting by law, a civil penalty of not more such statement has a duty to include than $5,500 for each such statement. such material fact; or (2) Each written representation, cer- (iv) Is for payment for the provision tification, or affirmation constitutes a of property or services which the per- separate statement. son has not provided as claimed (3) A statement shall be considered Shall be subject to, in addition to any made, presented, or submitted to the other remedy that may be prescribed Postal Service when such statement is by law, a civil penalty of not more actually made to an agent, fiscal inter- than $5,500 for each such claim. mediary, or other entity, including any (2) Each voucher, invoice, claim State or political subdivision thereof, form, or other individual request or de- acting for or on behalf of the Postal mand for property, services, or money Service. constitutes a separate claim. (c) In any case in which it is deter- (3) A claim shall be considered made, mined that more than one person is lia- presented, or submitted to the Postal ble for making a claim or statement Service, recipient, or party when such under this section, the civil penalty re- claim is actually made to an agent, fis- ferred to in paragraph (a)(1) of this sec- cal intermediary, or other entity, in- tion may be imposed on each such per- cluding any State or political subdivi- son without regard to the amount of sion thereof, acting for or on behalf of any penalties collected or demanded the Postal Service, recipient, or party. from others. (4) Each claim for property, services, (d) In any case in which it is deter- or money is subject to the civil penalty mined that more than one person is lia- referred to in paragraph (a)(1) of this ble for making a claim under this sec- section regardless of whether such tion on which the Government has property, service, or money is actually made payment, an assessment may be delivered or paid. imposed against any such person or

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jointly and severally against any com- (2) In the case of contumacy or re- bination of such persons. The aggre- fusal to obey a subpoena issued pursu- gate amount of the assessments col- ant to paragraph (b)(1) of this section, lected with respect to such claim shall the district courts of the United States not exceed twice the portion of such have jurisdiction to issue an appro- claim determined to be in violation of priate order for the enforcement of paragraph (a)(1) of this section. such subpoena. Any failure to obey [52 FR 12901, Apr. 20, 1987, as amended at 56 such order of the court may be punish- FR 55825, Oct. 30, 1991; 61 FR 55750, Oct. 29, able as contempt. In any case in which 1996] the Postal Service seeks the enforcement of a subpoena under this section, § 273.4 Non-exclusivity of penalty au- the Postal Service shall request the At- thority. torney General to petition the district (a) A determination by the Reviewing court for the district in which the per- Official that there is adequate evidence son receiving the subpoena resides or to believe that a person is liable under conducts business to issue such an 31 U.S.C 3802, or a final determination order. that a person is liable under such stat- (c) Upon completing an investigation ute, may provide the Postal Service under this part, the Investigating Offi- with grounds for commencing any ad- cial shall submit to the Reviewing Offi- ministrative or contractual action cial a report containing the findings against such person which is author- and conclusions of his investigation, ized by law and which is in addition to including: any action against such person under (1) A description of the claims or chapter 38 of title 31, United States statements for which liability under 31 Code. U.S.C. 3802 is alleged; (b) In the case of an administrative (2) A description of any evidence or contractual action to suspend or which supports allegations of liability debar any person from eligibility to under 31 U.S.C. 3802, or where applica- enter into contracts with the Postal ble, a description of any evidence that Service, a determination referred to in tends to support a conclusion that such paragraph (a) of this section shall not statute has not been violated; be considered as a conclusive deter- (3) An estimate of the amount of mination of such person’s responsi- money or the value of property or serv- bility pursuant to Postal Service pro- ices allegedly requested or demanded curement regulations. in violation of 31 U.S.C. 3802; (4) A statement of any exculpatory or § 273.5 Investigations of alleged violations. mitigating circumstances which may relate to the claims or statements (a) Investigations of allegations of li- under investigation; ability under 31 U.S.C. 3802 shall be (5) A statement of the amount of pen- conducted by the Investigating Offi- alties and assessments that, consid- cial. ering the information described in (b)(1) For purposes of an investiga- paragraphs (c) (3) and (4) of this section under this part, the Investigating tion, the Investigating Official rec- Official may issue a subpoena requiring ommends be demanded from the person the production of all information, doc- alleged to be liable; and uments, reports, answers, records, ac- (6) An estimate of the prospects of counts, papers, and data not otherwise collecting the amount specified in reasonably available to the Postal paragraph (c)(5) of this section, and Service. Any subpoena issued by the any reasons supporting such estimate. Investigating Official under this authority shall cite 31 U.S.C. 3804(a) as (d) Nothing in these regulations the authority under which it is issued, modifies any responsibility of the In- shall be signed by the Investigating Of- vestigating Official to report violations ficial, and shall command each person of criminal law to the Attorney Gen- to whom it is directed to produce the eral specified documentary material at a [52 FR 12901, Apr. 20, 1987, as amended at 56 prescribed time and place. FR 55825, Oct. 30, 1991]

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§ 273.6 Evaluation by reviewing offi- are submitted at the time such claim is cial. submitted. (a) Based upon the investigatory re- § 273.7 Concurrence of Attorney Gen- port prepared by the Investigating Offi- eral. cial, the Reviewing Official shall determine whether there is adequate evi- (a) The Attorney General is required dence to believe that a person is liable by 31 U.S.C. 3803(b) to respond to the under 31 U.S.C. 3802, and, if so, whether Reviewing Official’s written notice de- prosecution would likely result in the scribed in § 273.6 within 90 days. The imposition and collection of civil pen- Reviewing Official may refer allega- alties and applicable assessments. tions of liability to the Judicial Officer (b) If the Reviewing Official deter- only if the Attorney General or his des- mines that a case has merit and should ignee approves such action in a written be referred to the Judicial Officer for statement which specifies: assignment to a Presiding Officer, he (1) That the Attorney General or his must first transmit to the Attorney designee approves the referral to the General a written notice containing Judicial Officer of the allegations of li- the following information: ability set forth in the notice described (1) A statement setting forth the Re- in § 273.6; and viewing Official’s reasons for proposing (2) That the initiation of a pro- to refer the case to a Presiding Officer; ceeding under the Program Fraud Civil (2) A description of the claims or Remedies Act is appropriate. statements for which liability under 31 (b) If at any time after the Attorney U.S.C. 3802 is alleged; General approves the referral of a case (3) A statement specifying the evi- to the Judicial Officer, the Attorney dence that supports the allegations of General or his designee transmits to liability; the Postmaster General a written find- (4) An estimate of the amount of ing that the continuation of any pro- money or the value of property or serv- ceeding under the Program Fraud Civil ices allegedly requested or demanded Remedies Act with respect to a claim in violation of 31 U.S.C. 3802; or statement may adversely affect any (5) A statement of any exculpatory or pending or potential criminal or civil mitigating circumstances which may action related to such claim or state- relate to the claims or statements ment, such proceeding shall be imme- under investigation; diately stayed and may be resumed (6) A statement of the amount of pen- only upon written authorization of the alties and assessments that, consid- Attorney General. ering the factors listed in paragraphs (b)(4) and (5) of this section, the Re- § 273.8 Issuance of complaint. viewing Official recommends be de- (a) If the Attorney General or his manded from the person alleged to be designee approves the referral of alle- liable; and gations of liability to the Judicial Offi- (7) A statement that, in the opinion cer, the Reviewing Official shall serve of the Reviewing Official, there is a on the Respondent, pursuant to para- reasonable prospect of collecting the graph (b) of this section, a Complaint, amount specified in paragraph (b)(6) of which: this section and the reasons supporting (1) Specifies the allegations of liabil- such statement. ity against the Respondent, including (c) No allegations of liability under the statutory basis for liability; 31 U.S.C. 3802 with respect to any claim (2) Identifies the claims or state- made, presented, or submitted by any ments that are the basis for the alleged person shall be referred to the Judicial liability, and the reasons why liability Officer if the Reviewing Official deter- allegedly arises from such claims or mines that (1) an amount of money in statements; excess of $150,000; or (2) property or (3) Specifies the amount of penalties service with a value in excess of or assessments the Postal Service $150,000 is requested or demanded in seeks to impose; violation of section 3802 in such claim (4) Informs the Respondent of his or in a group of related claims which right to request an oral hearing before,

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or a decision on the record by, a Pre- for such penalty or assessment be- siding Officer concerning the allega- comes final. tions of liability and the amount of (b) The amount of any penalty or as- proposed penalties or assessments; sessment which has become final may (5) Informs the Respondent of how to be collected by administrative offset in request a hearing described in para- accordance with 31 U.S.C 3716, 3807. graph (a)(4) of this section; (c) Any penalty or assessment im- (6) Includes a copy of the procedures posed by the Postal Service under this which govern hearings under the Pro- part shall be deposited in the Postal gram Fraud Civil Remedies Act, and Service Fund established by section which are set forth in part 962 of this 2003 of title 39. title; and (7) Notifies the Respondent that his § 273.10 Reports. or her failure to request a hearing on (a) Not later than October 31 of each the issues raised by the Complaint year, the Postmaster General shall pre- within 30 days of its receipt may result pare and transmit to the appropriate in the imposition of the proposed pen- committees and subcommittees of the alty and assessments pursuant to Congress an annual report summa- §§ 962.4(a) and 962.15(d) of this title. rizing actions taken under the Pro- (b) Service of a Complaint issued gram Fraud Civil Remedies Act during under paragraph (a) of this section the most recent 12-month period end- must be effected by registered or cer- ing the previous September 30. tified mail, return-receipt requested, or (b) The report referred to in para- by personal delivery. In the case of per- graph (a) of this section shall include sonal service, the person making serv- the following information for the pe- ice shall, if possible, secure from the riod covered by the report: person sought to be served, or his or (1) A summary of matters referred by her agent, a written acknowledgment the Investigating Official to the Re- of receipt, showing the date and time viewing Official under this part; of such receipt. If the person upon (2) A summary of matters trans- whom service is made declines to ac- mitted to the Attorney General under knowledge receipt, the person effecting this part; service shall execute a statement, indi- (3) A summary of all hearings con- cating the time, place and manner of ducted by a Presiding Officer under service, which shall constitute evi- part 962 of this title, and the results of dence of service. such hearings; and [52 FR 12901, Apr. 20, 1987, as amended at 56 (4) A summary of the actions taken FR 55825, Oct. 30, 1991] during the reporting period to collect any civil penalty or assessment im- § 273.9 Collection of civil penalties or posed under the Program Fraud Civil assessments. Remedies Act. (a) Any penalty or assessment imposed under the Program Fraud Civil Damage to or Destruction of Firm Remedies Act may be recovered in a Mailings civil action brought by the Attorney General. In any such action, no matter that was raised or that could have been PART 281—FIRM MAILINGS DAM- raised in a hearing conducted under AGED OR DESTROYED THROUGH part 962 of this title or pursuant to ju- TRANSPORTATION ACCIDENTS dicial review under 31 U.S.C. 3805 may OR CATASTROPHES be raised as a defense and the determination of liability and the deter- Sec. mination of amounts of penalties and 281.1 Notification of firm mailers. assessments shall not be subject to re- 281.2 Action required by processing postal view. A civil action to recover a pen- officials. alty or assessment shall be commenced 281.3 Postal inspector responsibilities. within three years after the date on 281.4 Disclaimer. which the determination of liability AUTHORITY: 39 U.S.C. 401, 403, and 404.

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§ 281.1 Notification of firm mailers. (c) Anticipated delivery delay; and Whenever bulk firm mail shipments (d) If known, the shipment delivery are involved in transportation acci- destination(s). dents or catastrophes, such as train or [39 FR 20974, June 17, 1974, as amended at 40 highway accidents, fire, flood, etc., it FR 2179, Jan. 10, 1975] will be the responsibility of the sectional center director of customer serv- § 281.3 Postal inspector responsibil- ices at the office of mailing to give ities. known mailers timely notification of The postal inspector investigating the incident and its effect on their mail the incident should assure that the shipment(s). processing postal officials are fulfilling [39 FR 20974, June 17, 1974, as amended at 40 their notification responsibilities on a FR 2179, Jan. 10, 1975] timely basis. Should the situation arise where no postal officials are involved § 281.2 Action required by processing in processing affected mail, then the postal officials. investigating postal inspector will take Postal officials processing salvable necessary action to insure that appro- mail recovered from the scene of an ac- priate notification is made. cident or catastrophe are responsible [39 FR 20974, June 17, 1974] for giving timely notification of the incident to the sectional center director § 281.4 Disclaimer. of customer services at the office of The Postal Service will not be liable mailing. The notification should in- in damages for any loss occasioned by clude, but not be limited to: any failure to notify firm mailers in (a) The determinable names of the accordance with this part of damage to major mailers involved; or destruction of firm mailings. (b) The nature and extent of damage or destruction; [39 FR 20974, June 17, 1974]

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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basis of race, color, religion, sex, na- into any Postal Service facility or tional origin, or age. premises, whether the container has (d) No employee shall engage in been opened or not. Intoxicating bev- criminal, dishonest, notoriously dis- erages other than beer and wine may graceful or immoral conduct, or other never be brought into any Postal Serv- conduct prejudicial to the Postal Serv- ice facility or premises under any cir- ice. Conviction of a violation of any cumstances. criminal statute may be grounds for (f) Illegal use of drugs may be disciplinary action by the Postal Serv- grounds for removal from the Postal ice in addition to any other penalty Service. imposed by or pursuant to statute. (g) No employee while on property (e)(1) Except as provided in this paragraph, employees must not drink beer, owned or leased by the Postal Service wine, or other intoxicating beverages or the United States or while on duty, while on duty; begin work or return to shall participate in any gambling ac- duty intoxicated; or drink intoxicating tivity, including the operation of a beverages in a public place while in gambling device, in conducting or act- uniform. Employees found to be vio- ing as an agent for a lottery or pool, in lating this policy may be subject to conducting a game for money or prop- disciplinary action. erty, or in selling or purchasing a num- (2) A nonbargaining employee may bers slip or ticket. consume beer or wine at an Officer Ap- NOTE: Paragraph (g) of this section does proved Event. An Officer Approved not prohibit participation in activities speci- Event means: A meeting of Postal Serv- fied herein if participation is necessitated by ice employees convened by manage- an employee’s law enforcement duties, or if ment, such as a working meal, an em- participation is in accordance with section 7 ployee recognition event, or an em- of Executive Order No. 12353, of March 23, 1982, relating to agency-approved solicita- ployee appreciation event; or an event tions. whose primary purpose is to interact with external individuals or entities, [39 FR 1990, Jan. 16, 1974; 39 FR 3677, Jan. 28, such as an industry conference, a sales 1974, as amended at 48 FR 48231, Oct. 18, 1983. meeting, or a supplier meeting; that in Redesignated and amended at 60 FR 47244, all cases is either attended by an Offi- Sept. 11, 1995; 72 FR 49195, Aug. 28, 2007; 82 FR cer of the Postal Service who person- 33807, July 21, 2017] ally decides that the consumption of beer and wine by employees is appro- Subpart C—Ethical Conduct Advi- priate, or with respect to which an Of- sory Services and Post-Em- ficer of the Postal Service has granted ployment Activities specific, written, and advance approval for the consumption of beer and wine § 447.31 Advisory service. by employees. (a) The Ethical Conduct Officer is re- (3) A nonbargaining employee may sponsible for the administration of the consume beer, wine, or other intoxi- ethics program of the Postal Service. cating beverages at a Postmaster Gen- In the exercise of that responsibility, eral Approved Event. A Postmaster Gen- eral Approved Event means any Postal the Ethical Conduct Officer shall co- Service-related event with respect to ordinate the advisory service provided which the Postmaster General person- by this section, assure that authori- ally approves the consumption of beer, tative interpretations of the Standards wine, or other intoxicating beverages. of Ethical Conduct for Employees of (4) No employee may become intoxi- the Executive Branch (Standards) and cated while at an Officer Approved Supplemental Postal Service Regula- Event or a Postmaster General Ap- tions (Supplemental Regulations) are proved Event. Except in connection available to the Associate Ethical Con- with an Officer Approved Event or a duct Officers, and render final rulings Postmaster General Approved Event on behalf of the Postal Service in ap- occurring at a Postal Service facility peals by employees from rulings under or premises, no employee shall have or the Standards and Supplemental Regu- bring any container of beer or wine lations made by an agency designee.

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The Ethical Conduct Officer shall pro- ice under this subpart will not nor- vide advice and guidance for the Post- mally be available in an instance in master General and all Associate Eth- which a grievance is pending or dis- ical Conduct Officers concerning ques- ciplinary action has been initiated. tions arising under the Standards and (e) An employee may request any rul- Supplemental Regulations. The Ethical ing provided for by the Standards and Conduct Officer may delegate to an As- Supplemental Regulations by submit- sistant Ethical Conduct Officer author- ting a request in writing to the Senior ity to perform any duty or function Counsel, Ethics, or, in the field, to the vested in him or her by this Section. Chief Field Counsel or Deputy Chief The General Counsel is the Ethical Field Counsel, General Law. Conduct Officer of the Postal Service (f) An employee may appeal to the and the Designated Agency Ethics Offi- Ethical Conduct Officer from a ruling cial for purposes of the Ethics in Gov- made by an agency designee concerning ernment Act, as amended, and imple- matters covered by the Standards and menting regulations of the Office of Supplemental Regulations within 30 Government Ethics, including 5 CFR days from the date of the ruling. The part 2638. appeal must be in writing and must (b) The Deputy Postmaster General contain a full statement of the rel- is the Associate Ethical Conduct Offi- evant facts. It should be addressed to cer for the Office of the Postmaster the Ethical Conduct Officer, U.S. Post- General and the Office of the Deputy al Service, Washington, DC 20260, and a Postmaster General. The Chief Oper- copy thereof should be sent to the offi- ating Officer, Senior Vice Presidents, cial whose ruling is being appealed. Vice Presidents, and such other persons as the Ethical Conduct Officer [60 FR 47244, Sept. 11, 1995] may designate are Associate Ethical § 447.32 Post-employment activities. Conduct Officers for their respective organizational elements. Each Asso- (a) Restrictions on the post-employ- ciate Ethical Conduct Officer shall des- ment activities of persons who have ignate a suitable employee to coordi- been employed by the Postal Service nate the ethics program within his or are imposed by 18 U.S.C. 207. The Eth- her organization and to act as liaison ics Reform Act of 1989 includes amend- with the Ethical Conduct Officer. Each ments to 18 U.S.C. 207, which became Associate may designate other suitable effective January 1, 1991. Employees employees to assist or act for him or who terminated their employment her and shall ensure that there is an prior to January 1, 1991, are subject to adequate number of Qualified Ethics the restrictions imposed under 18 Trainers to comply with the require- U.S.C. 207 in effect prior to that date, ments of the annual ethics training while all other employees are subject program. to the restrictions imposed under 18 (c) The Ethical Conduct Officer and, U.S.C. 207 as amended. with his or her approval, Associate (b) The Office of Government Ethics Ethical Conduct Officers, may delegate has issued regulations, contained in 5 to additional persons or classes of per- CFR part 2637, that implement 18 sons the authority to make determina- 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

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such employees may be obtained in ac- that vehicle is being used for official cordance with § 447.31 of this part. postal purposes. [60 FR 47244, Sept. 11, 1995] [39 FR 1990, Jan. 16, 1974. Redesignated at 60 FR 47245, Sept. 11, 1995]

Subpart D—Political Activities § 447.43 Investigation and enforcement. § 447.41 General. The Office of the Special Counsel and (a) Postal Service employees, except the Merit Systems Protection Board those mentioned in paragraph (b) of investigate and adjudicate allegations this section, are subject, at all times to of political activity in violation of the restrictions on their participation in regulations of the Office of Personnel political activity (5 U.S.C. subchapter Management by Postal Service em- III of chapter 73, and 18 U.S.C. 602, 603, ployees. For jurisdiction in such a case, and 607), and to the regulations issued see 5 CFR 734.102 and part 1201. by the Office of Personnel Management relating thereto. [60 FR 47245, Sept. 11, 1995] (b) Those Postal Service employees who are employed on an irregular or Subpart E—Participation in occasional basis; e.g., experts and con- Community Affairs sultants, substitute rural carriers, others on a per diem basis, and without § 447.51 General. compensation or when actually em- An employee is permitted to partici- ployed employees, are subject to the pate in community affairs to the ex- restrictions mentioned in paragraph (a) tent consistent with the proper per- of this section only while in an active formance of his postal duties and with duty status and only for the entire 24 applicable laws and regulations. Noth- 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. Redesignated at 60 [39 FR 1990, Jan. 16, 1974, as amended at 48 FR 47245, Sept. 11, 1995] FR 48231, Oct. 18, 1983. Redesignated at 60 FR 47245, Sept. 11, 1995] § 447.52 Holding of State or local office by Postal Service employees. § 447.42 Additional prohibited political activities. (a) An employee may seek, accept, or hold a nonpartisan State or local office (a) In addition to the restrictions on subject to the provisions of this Code political activities mentioned in and in particular this section. A ‘‘non- § 447.51, an employee may not: partisan’’ office is one filled by a (1) Display a political picture or ‘‘nonpartisan election’’, which is an sticker on property owned or leased by election at which none of the can- the Postal Service. He is not forbidden didates are to be nominated or elected by this paragraph, however, from dis- as representing a political party any of playing a picture, including a person- whose candidates for presidential elec- ally autographed picture of a political tor received votes in the last preceding figure in his office or place of work if it election at which presidential electors has no language in the nature of polit- were selected. ical campaigning; (b) An employee who wishes to seek, (2) Wear a political badge or button accept, or hold a nonpartisan State or while in uniform or while on duty when local office is responsible for that duty requires him to deal with the ascertaining: public or be in the view of the public; (1) Whether the office is ‘‘non- (3) Display a political picture or partisan’’ within the definition in sticker on his private vehicle while § 447.62(a).

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(2) Whether State or local law per- rated from the Postal Service or granted mits a Postal Service employee to leave without pay. seek, accept, or hold the particular of- (e) A postmaster or acting post- fice. master in salary level EAS–25 or higher (3) Whether the duties of the office shall not be authorized to take annual would result in a conflict with his leave or leave without pay for the pur- Postal Service employment. pose of campaigning for a full-time (4) Whether the discharge of the du- State or local nonpartisan office. ties of the office would interfere with the performance by the particular em- [39 FR 1990, Jan. 16, 1974, as amended at 48 ployee of his Postal Service duties in FR 48231, Oct. 18, 1983. Redesignated and an acceptable manner or would inter- amended at 60 FR 47245, Sept. 11, 1995] fere with the performance by other Postal Service employees of their re- Subpart F—Bribery, Undue spective duties in an acceptable man- Influence, or Coercion ner. (c) An employee is encouraged to § 447.61 General. seek advice from his Associate Ethical (a) An employee shall report imme- Conduct Counselor prior to taking any diately to the General Counsel, U.S. action to seek, accept, or hold a State Postal Service, Washington, DC 20260: or local office. If, after the employee (1) Any instance in which a person ei- has entered upon the discharge of the ther within or outside the Postal Serv- duties of this non-postal office, his ice uses or attempts to use a bribe, non-postal duties interfere with the undue influence, or coercion to induce 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 office while on annual leave or on au- [39 FR 1990, Jan. 16, 1974. Redesignated at 60 thorized leave without pay during the FR 47245, Sept. 11, 1995] campaign when: (1) The criteria in paragraphs (b) (1) PART 491—GARNISHMENT OF SAL- and (2) of this section are met, and ARIES OF EMPLOYEES OF THE (2) The Vice President, Area Oper- POSTAL SERVICE AND THE POST- ations, determines that the employee’s AL RATE COMMISSION postal responsibilities are being conducted in a satisfactory manner and Sec. that the absence of the employee dur- 491.1 Authorized Agent to receive service. ing the campaign period will not dis- 491.2 Manner of service. rupt the operation of the facility where 491.3 Sufficient legal form. he or she is employed. 491.4 Identification of employees. NOTE: Requests shall be submitted through 491.5 Costs. the postmaster or other installation head to 491.6 Response to process. the Vice President, Area Operations. If the 491.7 Release of information. employee is elected to and takes such a full- 491.8 Execution of process. time office, he or she may either be sepa- 491.9 Restrictions on garnishment.

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AUTHORITY: 5 U.S.C. 5520a; 39 U.S.C. 401; delivery service pursuant to its author- E.O.12897, 59 FR 5517, 3 CFR, 1994 Comp., p. ity for the private carriage of letters 858. under an exception to the Private Ex- SOURCE: 63 FR 67403, Dec. 7, 1998, unless press Statutes, 39 U.S.C. 601–606, pro- otherwise noted. vided that the private delivery organization issues a receipt bearing the § 491.1 Authorized Agent to receive name and address of both the addressee service. and sender, as well as the date of deliv- Notwithstanding the designation, in ery and the signature of the receiving § 2.2 of this chapter, of the General agent. No garnishment is effectively Counsel as agent for the receipt of served until it is received by the Au- legal process against the Postal Serv- thorized Agent or his designee regard- ice, the sole agent for service of gar- less of the chosen mode of delivery. nishment process directed to the pay of Process addressed to, delivered to, or in Postal Service employees and employ- any manner given to any employee, ees of the Postal Rate Commission other than the Authorized Agent or his (‘‘employees’’) is the Manager, Payroll designee, may, at the sole discretion of Processing Branch, 2825 Lone Oak the employee, be returned to the Parkway, Eagan, MN 55121–9650 (‘‘Au- issuing court marked ‘‘Not Effectively thorized Agent’’). The Authorized Served.’’ A copy of or reference to Agent shall have sole authority to re- these regulations may be included. Em- ceive service of legal process in the na- ployees are not authorized to redirect ture of garnishment (hereinafter some- or forward garnishment process to the times referred to as ‘‘process’’) arising Authorized Agent. In the event that under the law of any state, territory, the address of the Authorized Agent is 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

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the bankruptcy court’s jurisdiction be- respond within a longer period of time fore the creditor’s garnishment may be as may be prescribed by applicable processed. Documents deficient in any state Law. Neither the Authorized of these respects may be returned to Agent nor any employee shall be re- the issuing court or authorized official quired to respond in person to any gar- inscribed ‘‘Insufficient as to legal nishment served according to the pro- form.’’ visions of 5 U.S.C. 5520a and the regulations in this section. A sufficient re- § 491.4 Identification of employees. sponse to legal process shall consist of Garnishments must be accompanied any action of the Postal Service con- by sufficient information to permit sistent with these regulations. The ac- prompt identification of the employee tion shall be considered to be given and the payments involved. Garnish- under penalty of perjury and shall con- ment of an employee whose name and stitute a legally sufficient answer to social security number is similar to any garnishment. The Postal Service but not identical with the name and so- may, in its sole discretion, answer or cial security number on the garnish- otherwise respond to documents pur- ment will not be processed. An exact porting to be legal process which are match of both name and social security insufficient as to the manner of serv- number is required in order to permit ice, insufficient as to the identification processing; otherwise, the garnishment of the employee, insufficient as to legal will be returned marked ‘‘Insufficient form or insufficient for any other rea- identifying information.’’ Garnish- son. ments which are insufficient in regard (b) The requirements of paragraph (a) to identifying information will not be of this section are illustrated by the held pending receipt of further infor- following example: mation and must be served again when Example: Each periodic check with the ac- the proper information is obtained. companying Financial Institution State- ment shall be considered to be a legally suf- § 491.5 Costs. ficient answer. Where legal process has been The Postal Service’s administrative processed but no money was deducted, (for costs in executing the garnishment ac- the reason of insufficient pay, prior garnishment in force, etc.) the mailing label or tion shall be added to each garnish- other written response shall be a sufficient ment and the costs recovered shall be answer. Where the Postal Service sends a retained as offsetting collections. The check or mailing label, no further action will Postal Service reserves the right to re- be required (such as a cumulative report or determine the administrative cost of notarized statement.) Documents which are any garnishment if, in administering defective with respect to service, lack of any garnishment, extra costs beyond legal sufficiency, failure to properly identify the employee, or other reason, do not require those normally encountered are in- a response or an answer but if the Postal curred, and add the extra cost to each Service chooses to act in any way, such as to garnishment. The extra costs recovered return the document, that act shall be a suf- shall be retained as offsetting collec- ficient answer. tions. § 491.7 Release of information. § 491.6 Response to process. (a) No employee whose duties include (a) Within fifteen days after receipt responding to interrogatories to gar- of process that is sufficient for legal nishments shall release information in form and contains sufficient informa- response to a garnishment until it is tion to identify the employee, the Au- determined that sufficient informa- thorized Agent shall send written no- tion, as required in § 491.4, has been re- tice that garnishment process has been ceived in writing as part of the gar- served, together with a copy thereof, to nishment legal process. The Authorized the affected employee at his or her Agent may, at his or her sole discre- duty station or last known address. tion, accept or initiate telephone or The Authorized Agent shall respond, in telefax inquiries concerning garnish- writing, to the garnishment or inter- ments. No other employee may release rogatories within thirty days of receipt any information about employees ex- of process. The Authorized Agent may cept in conformity with the Privacy

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Act of 1974, 5 U.S.C. 552a, and the regu- Service shall not be required to estab- lations in 39 CFR Part 266, ‘‘Privacy of lish an escrow account to comply with Information.’’ legal process even if the applicable law (b) The Authorized Agent’s response of the jurisdiction requires private em- to legal process is sufficient if it con- ployers to do so. Legal process must tains only that information not other- state on its face that the Postal Serv- wise protected from release by any fed- ice withhold up to a specific total eral statute including the Privacy Act. amount of money, the Postal Service Neither the Postal Service nor the will not calculate interest, charges, or Postal Rate Commission shall be re- any variable in processing a garnish- quired to provide formal answers to in- ment. The Postal Service may continue terrogatories received prior to the re- processing a garnishment if the gar- ceipt of legal process. Employment nishing attorney provides the adjusted verification may be obtained by access- total including the additional money ing the Postal Service’s employment owed, as determined from his calcula- verification system by dialing 1–(800) tion of the variable amounts. The at- 276–9850. torney is deemed to certify on his pro- § 491.8 Execution of process. fessional responsibility that the cal- (a) All legal process in the nature of culations are correct and will indem- garnishment shall be date and time nify the employee directly for any er- stamped by the Authorized Agent when rors. All garnishments of periodic pay received for the purpose of determining may be effectuated in accordance with the order of receipt of process which is the bi-weekly pay schedule. The Postal sufficient as to legal form and contains Service need not vary its pay and dis- sufficient information for identifica- bursement cycles to accommodate tion of the employee, the Authorized withholding on any other cycle. Agent’s date and time stamp shall be (c) Neither the Postal Service, the conclusive evidence. Child support and Postal Rate Commission nor any dis- alimony garnishments will be accorded bursing officer shall be liable for any priority over commercial garnishments payment made from moneys due from, under 5 U.S.C. 5520a as provided in 5 or payable by the Postal Service or the U.S.C. 5520a(h)(2). Garnishments shall Postal Rate Commission to any indi- be executed provided that the pay cycle vidual pursuant to legal process reg- is open for input or, if closed, will be ular on its face. held until the next cycle. In no event (d) The Postal Service, the Postal shall the Postal Service be required to Rate Commission, any disbursing offi- vary its normal pay or disbursement cer or any other employee shall not be cycles in order to comply with legal liable to pay money damages for fail- process of any kind. Garnishments ure to comply with legal process. shall be recalculated, if required, to fit within the normal postal pay cycles. § 491.9 Restrictions on garnishment. The Postal Service shall not be re- Garnishments under this section quired to withhold pay and hold the shall be subject to the restrictions in 15 funds in escrow. The Postal Service, in its sole discretion, may process more U.S.C. 1671–1677, including limits on the than one garnishment at a time within amounts which can be withheld from the restrictions on garnishments in an employee’s pay and the priority of Section 491.9 of these regulations. The garnishments. Postal Service may, in its sole discretion, accept and hold for processing PART 492—ADMINISTRATIVE WAGE garnishments received after the gar- GARNISHMENT FROM NON- nishment currently in force. POSTAL SOURCES (b) The Postal Service will only accept and effectuate legal process for a person who is currently employed. AUTHORITY: 31 U.S.C. 3720D; 39 U.S.C. 204, Upon cessation of employment, process 401, 2601; 31 CFR 285.11. relating to that individual will be ter- SOURCE: 79 FR 46183, Aug. 7, 2014, unless minated and not retained. The Postal otherwise noted.

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§ 492.1 Collection of delinquent non- istrative wage garnishment, and con- tax debts by administrative wage duct administrative wage garnishment garnishment. hearings, on behalf of the Postal Serv- (a) This section provides procedures ice in accordance with the require- for the Postal Service to collect money ments of 31 U.S.C. 3720D and the proce- from a debtor’s disposable pay by dures contained in 31 CFR 285.11. means of administrative wage garnish- (c) The Postal Service adopts the pro- ment, in accordance with 31 U.S.C. visions of 31 CFR 285.11 in their en- 3720D and 31 CFR 285.11, to satisfy de- tirety. The provisions of 31 CFR 285.11 linquent nontax debt owed to the should therefore be read as though United States. modified to effectuate the application (b) The Postal Service authorizes the of that regulation to administrative U. S. Department of the Treasury Bu- wage garnishment proceedings con- reau of the Fiscal Service or its suc- ducted by, or on behalf of, the U.S. cessor entity to collect debts by admin- Postal Service.

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PART 501—AUTHORIZATION TO such as meter imprints or information- MANUFACTURE AND DISTRIBUTE based indicia to indicate postage pay- POSTAGE EVIDENCING SYSTEMS ment. They include but are not limited to postage meters and PC Postage systems. Sec. 501.1 Definitions. (b) A postage meter is a Postal Serv- 501.2 Postage Evidencing System provider ice-approved Postage Evidencing Sys- authorization. tem that uses a device to account for 501.3 Postage Evidencing System provider postage purchased and printed. The qualification. term meter as used in this part refers to 501.4 Changes in ownership or control, a postage meter. bankruptcy, or insolvency. (c) PC Postage products are Postal 501.5 Burden of proof standard. Service-approved Postage Evidencing 501.6 Suspension and revocation of author- Systems that use a personal computer ization. 501.7 Postage Evidencing System require- as an integral part of the system. PC ments. Postage products may use the Internet 501.8 Postage Evidencing System test and to download postage to a mailer’s com- approval. puter from which the postage indicia 501.9 Demonstration or test Postage Evi- may then be printed. dencing Systems. (d) A provider is a person or entity 501.10 Postage Evidencing System modifica- authorized under this section to manu- tions. facture and/or distribute Postage Evi- 501.11 Reporting Postage Evidencing Sys- tem security weaknesses. dencing Systems to customers. 501.12 Administrative sanctions. (e) A manufacturer of postage meters 501.13 False representations of Postal Serv- produces postage meters. ice actions. (f) A distributor of postage meters 501.14 Postage Evidencing System inven- may be a manufacturer who leases tory control processes. postage meters directly to end-user 501.15 Computerized Meter Resetting Sys- customers or may be an independent tem. entity who leases postage meters to 501.16 PC postage payment methodology. end-user customers on behalf of the 501.17 Decertified Postage Evidencing Sys- tems. manufacturer. 501.18 Customer information and authoriza- (g) A customer is a person or entity tion. authorized by the Postal Service to use 501.19 Intellectual property. a Postage Evidencing System as an end 501.20 Discontinued Postage Evidencing In- user in accordance with Mailing Stand- dicia. ards of the United States Postal Service, 501.21 Customized Postage products. Domestic Mail Manual (DMM), includ- AUTHORITY: 5 U.S.C. 552(a); 39 U.S.C. 101, ing 604 Postage Payment Methods and 401, 403, 404, 410, 2601, 2605; Inspector General Refunds, 4.0 Postage Meters and PC Act of 1978, as amended (Pub. L. 95–452, as Postage Products (Postage Evidencing amended); 5 U.S.C. App. 3. Systems). SOURCE: 71 FR 65733, Nov. 9, 2006, unless [71 FR 65733, Nov. 9, 2006, as amended at 80 otherwise noted. FR 42392, July 17, 2015]

§ 501.1 Definitions. § 501.2 Postage Evidencing System (a) Postage Evidencing Systems regu- provider authorization. lated by part 501 produce evidence of (a) The Postal Service considers prepayment of postage by any method Postage Evidencing Systems and their other than postage stamps and permit respective infrastructure to be essen- imprints. A Postage Evidencing Sys- tial to the exercise of its specific pow- tem is a device or system of compo- ers to prescribe postage and provide nents that a customer uses to generate evidence of payment of postage under and print evidence that postage re- 39 U.S.C. 404(a)(2) and (4). quired for mailing has been paid. Post- (b) Due to the potential for adverse age Evidencing Systems print indicia, impact upon Postal Service revenue,

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

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

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

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

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(d) Providers must also ensure that § 501.9 Demonstration or test Postage customers acknowledge, agree, and Evidencing Systems. warrant in writing that: (a) A demonstration or test postage (1) The customer bears full responsi- evidencing system is any system that bility and liability for obtaining au- produces an image that replicates a thorization to reproduce and otherwise postage indicium for which the Postal use the matter as proposed (including, Service has not received payment for without limitation, any trademarks, postage. The following procedures must slogans, likenesses or copyrighted ma- be followed to implement controls over terial contained in the image); demonstration or test Postage Evi- (2) The customer in fact has the legal dencing Systems: authority to reproduce and otherwise (1) A demonstration or test Postage use the matter as proposed; and Evidencing System may print only (3) The customer understands that specimen or test indicia. A specimen or images or other matter is not provided, test indicia must clearly indicate that approved, or endorsed in any way by the indicia does not represent valid the Postal Service. postage. [71 FR 65733, Nov. 9, 2006, as amended at 78 (2) A demonstration or test Postage FR 44439, July 24, 2013; 82 FR 60118, Dec. 19, Evidencing System must be recorded as 2017] such on internal provider inventory records and must be tracked by model § 501.8 Postage Evidencing System test number, serial number, and physical and approval. location. (a) To receive Postal Service ap- (3) A demonstration or test Postage proval, each Postage Evidencing Sys- Evidencing System must remain under tem must be submitted by the provider the provider’s direct control. A dem- and evaluated by the Postal Service in onstration or test Postage Evidencing accordance with the Postage Evidenc- System may not be left in the posses- ing Product Submission Procedures sion of a customer under any cir- published by PT. Copies of the current cumstance. Performance Criteria may be requested (b) All indicia printed by a dem- via mail to the address in § 501.2(g). onstration or test Postage Evidencing These procedures apply to all proposed System must be collected and de- Postage Evidencing Systems regardless stroyed daily. of whether the provider is currently authorized by the Postal Service to dis- § 501.10 Postage Evidencing System tribute Postage Evidencing Systems. modifications. All testing required by the Postal Serv- (a) An authorized provider must re- ice will be an expense of the provider. ceive prior written approval from the (b) As provided in § 501.11, the pro- manager, PT, of any and all changes vider has a duty to report security made to a previously approved Postage weaknesses to the Postal Service to en- Evidencing System. The notification sure that each approved Postage Evi- must include a summary of all changes dencing System protects the Postal made and the provider’s assessment as Service against loss of revenue at all to the impact of those changes on the times. A grant of approval of a system security of the Postage Evidencing does not constitute an irrevocable de- System and postage funds. Upon re- termination that the Postal Service is ceipt of the notification, PT will re- satisfied with the revenue-protection view the summary of changes and capabilities of the system. After ap- make a decision regarding the need for proval is granted to manufacture and/ the following: or distribute a Postage Evidencing Sys- (1) Additional documentation. tem, no change affecting its basic fea- (2) Level of test and evaluation re- tures or safeguards may be made ex- quired. cept as authorized or ordered by the (3) Necessity for evaluation by a lab- Postal Service in writing. oratory accredited by the National In- [71 FR 65733, Nov. 9, 2006, as amended at 78 stitutes of Standards and Technology FR 44439, July 24, 2013] (NIST) under the National Voluntary

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

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

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

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

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

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

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PC Postage system, and any other ap- ACKNOWLEDGMENT OF DEPOSIT plications and technology infrastruc- REQUIREMENT—PC POSTAGE ture considered material to the serv- By signing this agreement with the pro- ices provided to the Postal Service by vider, you represent that you have read the the provider. Such examinations are to Acknowledgment of Deposit Requirement— PC Postage and are familiar with its terms. be conducted on no less than an annual You agree that, upon execution of this agree- basis, and are to be as of and for the 12 ment with the provider, you will also be months ended June 30 of each year (ex- bound by all terms and conditions of the Ac- cept for new contracts for which the knowledgment of Deposit Requirement—PC examination period will be no less than Postage, as it may be amended from time to the period from the contract date to time. (i) Revenue assurance. (1) The PC the following June 30, unless otherwise Postage provider must support busi- agreed to by the Postal Service). The ness practices to assure Postal Service examination reports are to be provided revenue and accurate payment from to the Postal Service by August 15 of customers. For purposes of this para- each year. To the extent that internal graph, PC Postage provider shall mean: control weaknesses are identified in a providers who offer PC Postage products SOC 1 Type II SSAE 16 report, the (as such terms are defined in § 501.1); Postal Service may require the remedi- Click-N-Ship® service; and postage re- ation of such weaknesses, and review sellers when such resellers transmit working papers and engage in discus- postage revenue to the Postal Service sions about the work performed with in any manner other than through a PC the service auditor. The Postal Service Postage provider. With respect to the requires that all remediation efforts (if reseller transactions described above, applicable) are completed and reported the resellers, and not the PC Postage by the provider prior to the Postal providers who provide the labels, are Service’s fiscal year end (September responsible for complying with this 30). In addition, the provider will be re- paragraph. For the purpose of this sponsible for performing an examina- paragraph, a reseller is an entity that tion of their internal control environ- obtains postage through a PC Postage ment related to the PC Postage system provider and is authorized to resell and any other applications and tech- such postage to its customers pursuant nology infrastructure considered mate- to an agreement with the Postal Serv- rial to the services provided to the ice. For example, an entity that sells postage to its customers, but uses a PC Postal Service by the provider, in par- Postage provider to enable its cus- ticular, disclosing changes to internal tomers to print postage labels, is a re- controls for the period of July 1 to Sep- seller hereunder. If that entity collects tember 30. This examination should be postage revenue from its customers documented and submitted to the Post- and transmits it to the Postal Service al Service by October 14. The provider directly (instead of through the PC will be responsible for all costs related Postage provider) that entity shall be to the examinations conducted by the deemed a PC Postage provider here- service auditor and the provider. under. For the purpose of this para- (g) Inspection of records and facilities. graph, a customer is the person or enti- The provider must make its facilities, ty that deposits the mail piece into the which handle the operation of the PC mail system. PC Postage providers Postage system and all records about must comply with these revenue assur- the operation of the system, available ance requirements regardless of wheth- for inspection by representatives of the er they have a direct relationship with Postal Service at all reasonable times. the customer or sell postage to the cus- (h) To the extent that the customer tomer through one or more resellers. maintains funds on deposit for the pay- (2)(i) For the purposes of this para- ment of postage, the provider is re- graph, a postage adjustment is defined as quired to incorporate the following lan- the difference between the postage or fee actually paid to the Postal Service guage into its agreements with PC for a specific service, and the actual Postage customers: postage due to the Postal Service

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under the published or negotiated rate ceived by the customer, and attempt to for that service, as applicable, which collect the postage adjustment by ad- shall be calculated as of the time the justing the funds available to the cus- mail piece is entered into the tomer in the Postage Evidencing Sys- mailstream. tem, or if funds are not available, fa- (ii) When the collection of a postage cilitating customer payment by adjustment or the provision of a refund invoicing the customer or by pursuing is appropriate because a customer has other methods available to collect underpaid or overpaid the amount of against the customer or access funds of postage that should have been paid, the customer. If the customer has a and such postage adjustment exceeds a Postage Evidencing System account, threshold amount to be set by the the PC Postage provider must process Postal Service from time to time in its any refunds due to the customer under discretion, the PC Postage provider paragraph (i)(2)(iii)(B) of this section must, upon receiving notice from the before processing any collections due Postal Service, pay, attempt to collect, to the Postal Service hereunder. If the or refund, as applicable, the postage PC Postage provider opts to pursue col- adjustment in accordance with para- lection activity, it shall continue to graph (i)(2)(iii) of this section. The make affirmative efforts to collect the Postal Service will supply the PC Post- postage adjustment from the customer age provider with the details necessary until the postage adjustment is satis- to explain the correction and the fied in whole or the collection period amount of the postage adjustment to (as defined in paragraph (i)(2)(iii)(C) of be used in the adjustment process. As this section) expires. Immediately part of this process, the PC Postage upon receiving or securing access to provider shall enable customers to sub- funds of the customer, the PC Postage mit disputes concerning the postage provider shall remit to the Postal Serv- adjustment to the Postal Service, in a ice any and all available funds from the method approved by the Postal Serv- customer’s account from the Postage ice, including via phone call to the cus- Evidencing System or that are other- tomer care center or API in the PC wise recovered by the PC Postage pro- Postage provider’s user interface of vider to the extent necessary to satisfy postage collections. In addition, the PC the postage adjustment. The postage Postage provider must convey the adjustment must be paid in full; no Postal Service’s dispute decision to the partial payments will be accepted by customer. If the Postal Service deter- the Postal Service, except for pay- mines the customer’s dispute was ments made under paragraph para- valid, and the customer had already graph (i)(2)(iii)(C) of this section. paid the postage adjustment, the PC (B) In the case of an overpayment Postage provider must return the post- that exceeds the threshold amount, the age adjustment to the customer when Postal Service shall within 14 business notified by the Postal Service accord- days of identifying the overpayment, ing to the rules set forth in paragraph provide notice of the postage adjust- (i)(2)(iii)(B) of this section. ment to the PC Postage provider and (iii)(A) In the case of an under- instruct the PC Postage provider to payment that exceeds the threshold give the customer a credit and adjust amount, within 14 business days of re- the funds available to the customer in ceiving notice of the underpayment the Postage Evidencing System. If the from the Postal Service the PC Postage Postage Evidencing System account provider must pay the postage adjust- has been closed or for customers who ment directly to the Postal Service, or do not have individual Postage Evi- seek to collect the postage adjustment dencing System accounts, the Postal from the customer in accordance with Service shall instruct the PC Postage this paragraph. If the PC Postage pro- provider to issue a refund to the cus- vider opts to pursue collection activ- tomer and the Postal Service shall ei- ity, it must notify the customer of the ther refund the postage adjustment to details of the postage adjustment (in- the PC Postage provider or permit the cluding the dispute process), retain evi- PC Postage provider to submit a rec- dence that such notice was actually re- onciliation to the Postal Service. The

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PC Postage provider must immediately vider, customer or other party for any upon receiving notice of the overpay- direct, indirect, exemplary, special, ment from the Postal Service, notify consequential, or punitive damages (in- the customer and, consistent with the cluding without limitation damages re- Postal Service’s instructions, adjust lating to loss of profit or business the funds available to the customer in interruption) arising from or related to the Postage Evidencing System, refund any customer’s permanent or tem- the postage adjustment to the cus- porary inability to print postage labels tomer, or provide a credit to the cus- in accordance with this paragraph tomer. If the PC Postage provider is (i)(2)(iv) or as a result of funds offset in unable to comply with the above re- accordance with this paragraph. quirements within 2 business days, the (v) The Postal Service, in its discre- PC Postage provider must immediately tion, may adopt and modify from time notify the Postal Service. to time, and the PC Postage providers (C) The collection period is a time pe- shall comply with, business rules set- riod to be set by the Postal Service not ting forth processes (including time to exceed 60 calendar days after initial constraints) for payments, refunds, ac- notification by the Postal Service, sub- count suspensions, collections, notifi- ject to any applicable notification peri- cations, dispute resolutions and other ods and dispute mechanisms that may activities to be performed hereunder. be available to customers for these cor- Such business rules will be published in rections. If an underpayment has not the FEDERAL REGISTER. been satisfied within this collection pe- (3)(i) Without regard to any thresh- riod, the PC Postage provider shall ad- old, if the PC Postage provider incor- just any funds available to the cus- rectly programmed postage rates, de- tomer in the Postage Evidencing Sys- layed programming postage rate tem to satisfy the postage adjustment changes, or otherwise provided systems to the greatest extent possible, and as- or software which caused customers to sist the Postal Service in its efforts to pay incorrect postage amounts, then pursue any remedies that may be avail- within two calendar weeks of the PC able in law or equity, including seeking Postage provider being made aware of payment directly from the customer. such error, the PC Postage provider (iv)(A) In the case of an under- shall: payment that exceeds the threshold (A) Correct the programming error; amount, immediately upon receiving (B) Provide the Postal Service with a notice of the underpayment from the detailed breakdown of how the error af- Postal Service the PC Postage provider fected the PC Postage provider’s col- shall prohibit the customer from print- lection of revenue; and ing additional postage labels until the (C) Pay the Postal Service for the postage adjustment is satisfied in ac- postage deficiency caused by the pro- cordance with paragraph (i)(2)(iii)(A) of gramming error, except in instances this section, or the customer disputes where the error was caused by the the adjustment and prevails. The Post- Postal Service or as a direct result of al Service may, in its discretion, waive incorrect specifications provided by or delay this prohibition in specific in- the Postal Service. stances. (4) The PC Postage provider is re- (B) Separately, without regard to any sponsible for ensuring that: threshold, in certain cases (such as (i) All customers pay (and the Postal where a customer is suspected of hav- Service receives) the current published ing intentionally or repeatedly under- prices that are available to customers paid postage) the Postal Service may, who purchase postage through an ap- in its discretion, instruct the PC Post- proved PC Postage provider, or nego- age provider to shut down temporarily tiated contracted prices where applica- or permanently a customer’s ability to ble in accordance with this paragraph; print PC Postage, and the PC Postage and provider shall promptly comply with (ii) All payments to the Postal Serv- such instruction. ice (or the log files necessary for the (C) In no event shall the Postal Serv- Postal Service to collect payments di- ice be liable to any PC Postage pro- rectly from customers) are complete

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and accurate and are initiated or trans- tives failing to comply with the terms mitted, as applicable, to the Postal of this section, or any applicable law, Service each day. regulation, rule, or government policy; (5) Each PC Postage provider shall: and (i) Before each customer’s first trans- (vi) In performing its obligations action following the implementation hereunder, comply with the business date of August 1, 2017, provide notice to rules that shall be published in the such customer of the terms, conditions FEDERAL REGISTER from time to time and processes described in this para- and provide all agreed-upon interface graph—including, without limitation, documentation (as updated from time that the customer may be charged for to time). deficient payments and prevented from (6) In the event that the Postal Serv- printing additional postage labels ice fails to exercise or delays exer- while a postage adjustment remains cising any right, remedy, or privilege unpaid—and obtain a certification under this paragraph, such failure or from each customer that the customer delay shall not operate as a waiver has read, understands and agrees to thereof or of any other provision here- such terms, conditions and processes, of, nor shall any single or partial exer- as they may be amended or supple- cise of any right, remedy, or privilege mented from time to time; preclude any further exercise of the (ii) Ensure that each customer cer- same. The rights and remedies avail- tifies that it: able to the Postal Service under this (A) Will comply with all laws and paragraph are cumulative and in addi- regulations applicable to Postal Serv- tion to, and do not diminish, any rights ice services, including, without limita- or remedies otherwise available to the tion, the provisions of the Domestic Postal Service. Mail Manual and the International Mail Manual, [72 FR 33163, June 15, 2007, as amended at 75 (B) Does not owe any money to the FR 56472, Sept. 16, 2010; 79 FR 10995, Feb. 27, Postal Service and is not a controlling 2014; 80 FR 42392, July 17, 2015; 82 FR 15465, member or officer of an entity that Mar. 29, 2017] owes money to the Postal Service, and § 501.17 Decertified Postage Evidenc- (C) Authorizes the PC Postage pro- ing Systems. vider to disclose the customer’s personal information to the Postal Service (a) A Decertified Postage Evidencing and such other information retained by System is a device for which the pro- the PC Postage provider that may en- vider’s authority to distribute has been able the Postal Service to collect debts withdrawn by the Postal Service as a owed to it; result of any retirement plan for a (iii) Maintain a complete and accu- given class of meters published by the rate record for each customer, which Postal Service in the FEDERAL REG- includes such customer’s current name ISTER; a suspension or revocation under and a valid U.S. address that is suffi- § 501.6; or a voluntary withdrawal un- cient for service of process under the dertaken by the provider. law, as well as a copy of all terms (b) A Decertified Postage Evidencing agreed to by the customer and the date System must be withdrawn from serv- of such agreements; ice by the date agreed to by the Postal (iv) Comply with applicable laws, Service and provider. rules, regulations and guidelines and (c) To the extent postage meters are ensure that its Postage Evidencing involved, the provider must utilize the Systems, software, interfaces, commu- approved procedures for lost and stolen nications and other properties that are meters under § 501.14(c)(7) to locate the used to sell or market Postal Service meter and remove it from service by products accurately describe such prod- the agreed upon date. ucts; (d) Decertified Postage Evidencing (v) Cover any costs or damages that Systems that are not submitted to the the Postal Service may incur as a re- Postal Service for refund within one sult of such PC Postage provider or its hundred and eighty (180) days of the employees, contractors, or representa- agreed upon withdrawal from service

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date will not be eligible for refund of (1) A Postage Evidencing System is unused postage. used for any illegal scheme or enter- (e) Postage indicia printed by Decer- prise. tified Postage Evidencing Systems (2) The customer’s Postage Evidenc- may no longer be considered valid posting System is not used for twelve (12) age one hundred and eighty (180) days consecutive months. from the agreed upon withdrawal from (3) Sufficient control of a Postage service date. Evidencing System is not exercised or the standards for its care or use are not § 501.18 Customer information and au- followed. thorization. (4) The Postage Evidencing System is (a) Authorized providers must elec- kept or used outside the customs terri- tronically transmit the necessary cus- tory of the United States or those U.S. tomer information to the designated territories and possessions where the Postal Service central data processing Postal Service operates. facility, in Postal Service-specified for- (5) The customer is in possession of a mat, in order for the Postal Service to Decertified Postage Evidencing Sys- authorize a customer to use a Postage tem. Evidencing System. Postal Service re- (6) The customer has any unresolved ceipt and acceptance of the customer postage discrepancies. information provides the customer (d) The provider must electronically with the authorization to possess or transmit any updates to the necessary use a Postage Evidencing System in ac- customer information to the des- cordance with DMM 604 Postage Pay- ignated Postal Service central data ment Methods, 4.0 Postage Meters and processing facility, in Postal Service- PC Postage Products (Postage Evidenc- specified format. ing Systems). (e) No one other than an authorized provider may possess a Postage Evi- (b) The Postal Service may refuse to dencing System without a valid rental issue a customer authorization to use a or other agreement with the provider. Postage Evidencing System for the fol- Other parties in possession of a Post- lowing reasons: age Evidencing System must imme- (1) The customer submitted false or diately surrender it to the provider or fictitious information. the Postal Service. (2) Within five years preceding sub- (f) The Postal Service may use cus- mission of the information, the customer information consistent with the tomer violated any standard for the Privacy Act and the Postal Service’s care or use of the Postage Evidencing privacy policies posted on http:// System, including any unresolved iden- www.usps.com. Examples include the tified postage discrepancies that re- following: sulted in revocation of that customer’s (1) Communication with customers authorization. who may no longer be visiting a tradi- (3) Or there is sufficient reason to be- tional Postal Service retail outlet or lieve that the Postage Evidencing Sys- communication with customers tem is to be used in violation of the ap- through any new retail channels. plicable standards. (2) Issuance (including re-authoriza- (c) The Postal Service will notify the tion, renewal, transfer, revocation or provider of the revocation of a cus- denial, as applicable) of authorization tomer’s authorization to use a Postage to use a Postage Evidencing System to Evidencing System. Within ten (10) a postal patron that uses a Postage Ev- days of receipt of the notice of revoca- idencing System, and communications tion, the provider must cancel any with respect to the status of such au- lease or other agreement and remove thorization. the Postage Evidencing System from (3) Disclosure to a meter provider of service. A customer’s authorization to the identity of any meter required to use a Postage Evidencing system is be removed from service by that meter subject to revocation for any of the fol- provider, and any related customer lowing reasons: data, as the result of revocation of an

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authorization to use a Postage Evi- (11) To contact customers in cases of dencing System, questioned accurate revenue fraud or revenue security. registration of that meter, or de-cer- (12) Disclosure to a Postage Evidenc- tification by the Postal Service of any ing System provider of applicant infor- particular class or model of postage mation pertaining to that provider’s meter. customers that the Postal Service (4) Tracking the movement of meters views as necessary to enable the Postal between a meter provider and its cus- Service to carry out its duties and pur- tomers and communications to a meter poses. provider (but not to any third party (13) To transmit to a Postage Evi- other than the customer) concerning dencing System provider all applicant such movement. The term meter pro- and system information pertaining to vider includes a meter provider’s deal- that provider’s customers and systems ers and agents. that may be necessary to permit such (5) To transmit general information provider to synchronize its computer to all Postage Evidencing System cus- databases with information contained tomers concerning rate and rate cat- in the computer files of the Postal egory changes implemented or pro- Service. posed for implementation by the Postal (14) Subject to the conditions stated Service. herein, to communicate in oral or writ- (6) To advertise Postal Service serv- ten form with any or all applicants any ices relating to the acceptance, proc- information that the Postal Service essing, and delivery of, or postage pay- views as necessary to enable the Postal ment for, metered mail. Service to carry out its duties and pur- (7) To allow the Postal Service to poses under part 501. communicate with Postal Service cus- [71 FR 65733, Nov. 9, 2006, as amended at 80 tomers on products, services, and other FR 42393, July 17, 2015] information otherwise available to Postal Service customers through tra- § 501.19 Intellectual property. ditional retail outlets. Providers submitting Postage Evi- (8) Any internal use by Postal Serv- dencing Systems to the Postal Service ice personnel, including identification for approval are responsible for obtain- and monitoring activities relating to ing all intellectual property licenses Postage Evidencing Systems, provided that may be required to distribute that such use does not result in the dis- their product in commerce and to allow closure of applicant information to any the Postal Service to process mail third party or will not enable any third bearing the indicia produced by the party to use applicant information for Postage Evidencing System. To the ex- its own purposes; except that the appli- tent approval is granted and the Post- cant information may be disclosed to age Evidencing System is capable of other governmental agencies for law being used in commerce, the provider enforcement purposes as provided by shall indemnify the Postal Service for law. use of such intellectual property in (9) Identification of authorized Post- both the use of the Postage Evidencing age Evidencing System providers or an- System and the processing of mail nouncement of the de-authorization of bearing indicia produced by the Post- an authorized provider, or provision of age Evidencing System. currently available public information, where an authorized provider is identi- § 501.20 Discontinued Postage Evi- fied. dencing Indicia. (10) To promote and encourage the (a) Decertified indicia (evidence of pre- use of Postage Evidencing Systems as a paid postage) are indicia that have form of postage payment, provided that been withdrawn by the Postal Service the same information is provided to all as valid forms of postage evidence Postage Evidencing System customers through publication by the Postal and no particular Postage Evidencing Service in the FEDERAL REGISTER, or System provider will be recommended by voluntary withdrawal undertaken by the Postal Service. by the provider.

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(b) Effective January 1, 2016, all Post- established by the Postal Service, age Evidencing Systems (postage me- which are: ters and PC Postage products) will be (1) Images or text must be ‘‘commer- required to produce Information-Based cial’’ or ‘‘social,’’ as defined below: Indicia (IBI) or Intelligent Mail Indicia (i) Commercial means intended for no (IMI) for evidence of pre-paid postage. purpose other than the sale of goods or Non-IBI and non-IMI indicia will be de- services in commerce. certified effective January 1, 2016, and (ii) Social means promoting or depict- may not be used as a valid form of ing people, animals, items, or events postage evidence. These decertified in- commonly associated with community dicia will not be recognized as valid postage after December 31, 2015. relations or companionship and likely to generate invitations, announce- [78 FR 8407, Feb. 6, 2013] ments, notices, thank-you notes, RSVPs, or similar correspondence. § 501.21 Customized Postage products. (2) Acceptable commercial or social (a) Definitions. (1) As used in this sec- images or text must not contain con- tion, a provider is: tent that is unsuitable for all-ages au- (i) A Postage Evidencing System pro- diences, including but not limited to: vider as defined under § 501.1(d) that is (i) Any non-incidental depiction of authorized by the Postal Service to alcohol, tobacco, gambling, or firearms produce Customized Postage products or other weapons; in accordance with this section and (ii) Any depiction of controlled sub- subject to any additional requirements stances, including but not limited to set forth in individual approval letters; marijuana; or (iii) Any depiction of political, reli- (ii) An entity that is affiliated under conditions respecting postage revenue gious, violent or sexual content; or security with a Postage Evidencing (iv) Any depiction of subject matter System provider and authorized by the prohibited for display under U.S. law. Postal Service to produce Customized (3) Acceptable commercial or social Postage products in accordance with images or text must not contain con- this section and subject to any addi- tent that the customer or provider does tional requirements set forth in indi- not have the right to use either dividual approval letters. rectly or under license, including but (2) Customized Postage products are not limited to images or text that may products combining barcode indicia of be the subject of third party rights postage payment with digital, graphic, such as copyright, trademarks, or or pictorial images or text. Customers rights of publicity or privacy. select or provide images or text that (4) The Postal Service reserves the meet Eligibility Criteria established by right to determine independently the Postal Service, and the image or whether any image, text, or category text is combined with the barcode indi- of images or text meets any of the Eli- cia of postage payment by providers gibility Criteria contained in this sec- and produced under controlled condition. tions for mailing to customers. (c) Customized Postage provider author- (3) As used in this section, a customer ization is conditioned on the following is a person or entity seeking to pur- requirements: chase Customized Postage products from a provider. (1) Publication of Eligibility Criteria. (b) Eligibility Criteria. The Eligibility Providers must make the Eligibility Criteria contained in this section re- Criteria set forth in paragraph (b) of strict Customized Postage content by this section available to customers on identifying allowable images, text, or provider websites or in any other me- categories of images or text. Any con- dium through which Customized Post- tent not identified by the Eligibility age products are purchased. Criteria is prohibited. To be eligible for (2) Use of Eligibility Criteria in pur- use in Customized Postage products, chases. Providers must maintain a images and/or text must meet criteria

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process in providing or accepting im- Customized Postage products are in ages and/or text for Customized Post- compliance with the Eligibility Guide- age products that uses only the Eligi- lines set forth in paragraph (b) of this bility Criteria set forth in paragraph section. (b) of this section. (6) Individual authorization letters. Ad- (i) Providers may not use any other ditional conditions and requirements eligibility criteria, represent the use of for provider authorization may be set any other eligibility criteria to cus- forth in individual provider authoriza- tomers, or otherwise give the appear- tion letters. ance that any eligibility criteria other (7) Suspension and revocation of Au- than the Eligibility Criteria set forth thorization. The Postal Service may in paragraph (b) of this section is used suspend or revoke authorization to in providing or accepting images and/or produce Customized Postage products text for Customized Postage products. if the provider engages in any unlawful (ii) In the event that full and good scheme or enterprise; fails to comply faith administration of the process re- with any provision in this part, or any quired by this paragraph (c)(2) of this provision in an individual approval let- section fails to determine eligibility of ter; fails to implement instructions an individual image, text, or category issued by the Postal Service within its of images or text, providers may seek authority over Customized Postage clarification from the Postal Service. products; misrepresents to customers (3) Use of Eligibility Criteria in proof the Postal Service any decisions, ac- motional material. Providers must en- tions, or proposed actions of the Postal sure that any images and/or text used Service respecting its regulation of in providing or promoting Customized Customized Postage products; or if Postage products, for individual sale or Customized Postage products or infra- as part of a category of images and/or structure of the provider is determined text provided or made available for to constitute an unacceptable risk to customer selection, displayed on pro- Postal Service business interests, in- vider websites or in any medium, including legal, financial, or brand inter- cluding without limitation exemplars, ests. ordering templates, customization op- (8) Correspondence. The Postal Serv- tions, or customer correspondence: ice office responsible for administra- (i) Are fully compatible with the Eli- tion of this part is the Office of Brand gibility Criteria set forth in paragraph Marketing or its successor organiza- (b) of this section; and tion. All correspondence with the Post- (ii) Do not give the appearance that al Service required by this part is to be images that are not fully compatible made to this office in person or via with the Eligibility Criteria set forth mail to 475 L’Enfant Plaza SW, Room in paragraph (b) of this section are 5117, Washington, DC 20260–0004. available or offered for purchase through providers or otherwise. [82 FR 60118, Dec. 19, 2017] (4) Disassociation from U.S. stamps. Providers must not promote Cus- PART 551—SEMIPOSTAL STAMP tomized Postage products as ‘‘U.S. PROGRAM stamps’’ or make any representations tending to imply that Customized Sec. Postage products are related in any 551.1 Semipostal Stamp Program. way to official U.S. postage stamps or 551.2 Semipostal stamps. to any aspect of the Postal Service 551.3 Procedure for selection of causes and recipient executive agencies. philatelic program. 551.4 Submission requirements and selec- (5) Authorization fee and Eligibility Cri- tion criteria. teria audit. Providers must pay an an- 551.5 Frequency and other limitations. nual authorization fee and participate 551.6 Pricing. in any audit conducted by the Postal 551.7 Calculation of funds for recipient exec- Service to ensure that the customer-se- utive agencies. lected or -provided images or text dis- 551.8 Cost offset policy. played on Customized Postage products AUTHORITY: 39 U.S.C. 101, 201, 203, 401, 403, or in the promotion in any medium of 404, 410, 414, 416.

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SOURCE: 66 FR 31826, June 12, 2001, unless Service intends to issue five semipostal otherwise noted. stamps under these regulations during the 10-year period established by Con- § 551.1 Semipostal Stamp Program. gress in 39 U.S.C. 416(g). Each The Semipostal Stamp Program is semipostal stamp will be sold for no established under the Semipostal Au- more than two years. Proposals may be thorization Act, Public Law 106–253, 114 submitted and will be considered on a Stat. 634 (2000), as amended by Public rolling basis until seven years after Law 107–67, section 652, 115 Stat. 514 May 20, 2016. The Office of Stamp Serv- (2001). The Office of Stamp Services has ices may publicize this request for pro- primary responsibility for admin- posals in the FEDERAL REGISTER or istering the Semipostal Stamp Pro- through other means, as it determines gram. The Office of Accounting, Fi- in its discretion. Proposals for nance, Controller has primary respon- semipostal stamps made prior to May sibility for the financial aspects of the 20, 2016 will not be given further con- Semipostal Stamp Program. sideration. Nothing in these regula- [67 FR 5215, Feb. 5, 2002] tions should be construed as barring the resubmission of previously sub- § 551.2 Semipostal stamps. mitted causes and recipient executive Semipostal stamps are stamps that agencies. are sold for a price that exceeds the (b) Proposals will be received by the postage value of the stamp. The dif- Office of Stamp Services, which will reference between the price and postage view each proposal under § 551.4. value of semipostal stamps, also known (c) The Office of Stamp Services will as the differential, less an offset for forward those proposals that satisfy reasonable costs, as determined by the the requirements of § 551.4 to the Citi- Postal Service, consists of a contribu- zens’ Stamp Advisory Committee for tion to fund causes determined by the its consideration. Postal Service to be in the national (d) Based on the proposals received public interest and appropriate. Funds from the Office of Stamp Services, the are to be transferred to selected recipi- Citizens’ Stamp Advisory Committee ent executive agencies, as defined may make recommendations on causes under 5 U.S.C. 105. The office of Stamp and eligible recipient executive agen- Services determines the print quan- cies to the postmaster general. The tities of semipostal stamps. The use of Citizens’ Stamp Advisory Committee semipostal stamps shall be voluntary may recommend more than one cause on the part of postal patrons. and eligible recipient executive agency at the same time. § 551.3 Procedure for selection of (e) Meetings of the Citizens’ Stamp causes and recipient executive Advisory Committee are closed, and agencies. deliberations of the Citizens’ Stamp The Postal Service has discretionary Advisory Committee are pre-decisional authority to select causes and recipi- in nature. ent executive agencies to receive funds (f) In making decisions concerning raised through the sale of semipostal semipostal stamps, the postmaster gen- stamps. These regulations apply only eral may take into consideration such to such discretionary semipostal factors, including the recommenda- stamps and do not apply to semipostal tions of the Citizens’ Stamp Advisory stamps that are mandated by Act of Committee, as the postmaster general Congress, such as the Breast Cancer Re- determines are appropriate. The deci- search stamp. The procedure for selec- sion of the postmaster general shall be tion of causes and recipient executive the final agency decision. agencies is as follows: (g) The Office of Stamp Services will (a) The Office of Stamp Services will notify each executive agency in writing accept proposals from interested per- of a decision designating that agency sons for future semipostal stamps be- as a recipient of funds from a ginning on May 20, 2016. The Office of semipostal stamp. Stamp Services will begin considering (h) As either a separate matter, or in proposals on July 5, 2016. The Postal combination with recommendations on

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

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

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§ 551.8 Cost offset policy. (e) Cost items recoverable from the differential revenue include, but are (a) Postal Service policy is to recover not limited to, the following: from the differential revenue for each (1) Packaging costs in excess of the semipostal stamp those costs that are cost to package comparable stamps; determined to be attributable to the (2) Printing costs of flyers and spe- semipostal stamp and that would not cial receipts; normally be incurred for stamps having (3) Costs of changes to equipment; similar sales; physical characteristics; (4) Costs of developing and executing and marketing, promotional, and pub- marketing and promotional plans in lic relations activities (hereinafter excess of the cost for comparable ‘‘comparable stamps’’). stamps; (b) Overall responsibility for track- (5) Other costs specific to the ing costs associated with semipostal semipostal stamp that would not nor- stamps will rest with the Office of Ac- mally have been incurred for com- counting, Finance, Controller. Indi- parable stamps; and vidual organizational units incurring (6) Costs in paragraph (g) of this sec- costs will provide supporting docu- tion that materially exceed those that mentation to the Office of Accounting, would normally have been incurred for Finance, Controller. comparable stamps. (c) For each semipostal stamp, the (f) The Semipostal Stamp Program Office of Stamp Services, in coordina- incorporates the following provisions tion with the Office of Accounting, Fi- that are intended to maximize differen- nance, Controller, shall, based on judg- tial revenues available to the selected ment and available information, iden- causes. These include, but are not lim- tify the comparable stamp(s) and cre- ited to, the following: ate a profile of the typical cost charac- (1) Avoiding, to the extent prac- teristics of the comparable stamp(s) ticable, promotional costs that exceed (e.g., manufacturing process, gum those of comparable stamps; type), thereby establishing a baseline (2) Establishing restrictions on the for cost comparison purposes. The de- number of concurrently issued termination of comparable stamps may semipostal stamps; and change during or after the sales period, (3) Making financial and retail sys- and different comparable stamp(s) may tem changes in conjunction with regu- be used for specific cost comparisons. 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. Such costs are not recovered, un- termines to be inconsequentially less they materially exceed the costs of small, which include those cost items comparable stamps. These include, but which are less than $3,000 per invoice are not limited to, the following: and are not specifically charged to a (1) Costs of stamp design (including semipostal finance number. market research); (2) Costs for which the cost of track- (2) Costs of stamp production and ing or estimation would be burdensome printing; (e.g., costs for which the cost of track- (3) Costs of stamp shipping and dis- ing exceeds 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 (7) Costs associated with the destruc- Stamp Program had been established. tion of unsold stamps; and

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(8) Costs associated with the incorpo- advertising for the Postal Service as an ration of semipostal stamp images into entity. [66 FR 31826, June 12, 2001, as amended at 67 FR 5216, Feb. 5, 2002; 69 FR 7689, Feb. 19, 2004; 70 FR 6765, Feb. 9, 2005]

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

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

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

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

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

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

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

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

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

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

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

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

SUBCHAPTER I [RESERVED]

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

SUBCHAPTER M [RESERVED]

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Part Page 3000 Standards of conduct ...... 363 3001 Rules of practice and procedure ...... 364 3002 Organization ...... 409 3003 Privacy Act rules ...... 413 3004 Public records and Freedom of Information Act ..... 415 3005 Procedures for compelling production of information by the Postal Service ...... 424 3007 Treatment of non-public materials provided by the Postal Service ...... 430 3008 Ex parte communications ...... 440 3010 Regulation of rates for market dominant products 443 3015 Regulation of rates for competitive products ...... 457 3017 Procedures related to Commission views ...... 458 3020 Product lists...... 459 3025 Rules for appeals of Postal Service determinations to close or consolidate post offices ...... 475 3030 Rules for complaints ...... 478 3031 Rules for rate or service inquiries ...... 481 3032 Special rules for complaints alleging violations of 39 U.S.C. 404a ...... 482 3035 Rules for market tests of experimental products .... 483 3050 Periodic reporting...... 487 3055 Service performance and customer satisfaction reporting ...... 497 3060 Accounting practices and tax rules for the theoretical competitive products enterprise ...... 503 3061–3099 [Reserved]

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§ 3000.55 [Reserved] 3001.9 Filing of documents. 3001.10 Form and number of copies of docu- APPENDIX A TO PART 3000—CODE OF ments. ETHICS FOR GOVERNMENT SERVICE 3001.11 General contents of documents. 3001.12 Service of documents. Resolved by the House of Representatives 3001.13 Docket and hearing calendar. (the Senate concurring), That it is the sense 3001.14 Consolidation and separation of proof the Congress that the following Code of ceedings. Ethics should be adhered to by all Govern- 3001.15 Computation of time. ment employees, including office-holders: 3001.16 Continuances and extensions of time. CODE OF ETHICS FOR GOVERNMENT SERVICE 3001.17 Notice of proceeding. Any person in Government service should: 3001.18 Nature of proceedings. 1. Put loyalty to the highest moral prin- 3001.19 Notice of prehearing conference or ciples and to country above loyalty to per- hearing. sons, party, or Government department. 3001.20 Formal intervention. 2. Uphold the Constitution, laws, and legal 3001.20a Limited participation by persons regulations of the United States and of all not parties. governments therein and never be a party to 3001.20b Informal expression of views by their evasion. persons not parties or limited partici- 3. Give a full day’s labor for a full day’s pators (commenters). pay; giving to the performance of his duties 3001.21 Motions. his earnest effort and best thought. 3001.22 Requests for waiver. 4. Seek to find and employ more efficient 3001.23 Presiding officers. and economical ways of getting tasks accom- 3001.24 Prehearing conferences. plished. 3001.25 Discovery—general policy. 5. Never discriminate unfairly by the dis- 3001.26 Interrogatories for purpose of dis- pensing of special favors or privileges to any- covery. one, whether for remuneration or not; and 3001.27 Requests for production of docu- never accept, for himself or his family, fa- ments or things for purpose of discovery. vors or benefits under circumstances which 3001.28 Requests for admissions for purpose might be construed by reasonable persons as of discovery. influencing the performance of his govern- 3001.29 Settlement conferences. mental duties. 3001.30 Hearings. 6. Make no private promises of any kind 3001.31 Evidence. binding upon the duties of office, since a 3001.31a In camera orders. Government employee has no private word 3001.32 Appeals from rulings of the presiding which can be binding on public duty. officer. 7. Engage in no business with the Govern- 3001.33 Depositions. ment, either directly or indirectly, which is 3001.34 Briefs. 3001.35 Proposed findings and conclusions. inconsistent with the conscientious perform- 3001.36 Oral argument before the presiding ance of his governmental duties. 8. Never use any information coming to officer. 3001.37 Oral argument before the Commis- him confidentially in the performance of sion. governmental duties as a means for making 3001.38 Omission of intermediate decisions. private profit. 3001.39 Intermediate decisions. 9. Expose corruption wherever discovered. 10. Uphold these principles, ever conscious 3001.40 Exceptions to intermediate deci- that public office is a public trust. sions. Passed July 11, 1958. 3001.41 Rulemaking proceedings. 3001.42 [Reserved] 3001.43 Public attendance at Commission PART 3001—RULES OF PRACTICE meetings. AND PROCEDURE 3001.44 Automatic Closure of Inactive Dock- et. Subpart A—Rules of General Applicability 3001.45 Motions to Stay Automatic Closure or Reopen Automatically Closed Dock- Sec. ets. 3001.1 Construction of rules. 3001.2 [Reserved] Subparts B–C [Reserved] 3001.3 Scope of rules. 3001.4 Method of citing rules. Subpart D—Rules Applicable to Requests 3001.5 Definitions. for Changes in the Nature of Postal 3001.6 Appearances. Services 3001.7 [Reserved] 3001.8 No participation by investigative or 3001.71 Applicability. prosecuting officers. 3001.72 Advisory opinion and special studies.

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3001.73 Computation of time. § 3001.4 Method of citing rules. 3001.74 Service by the Postal Service. 3001.75 Motions. This part shall be referred to as the 3001.76–3001.79 [Reserved] ‘‘rules of practice.’’ Each section, para- 3001.80 Procedural schedule. graph, or subparagraph shall include 3001.81 Pre-filing requirements. only the numbers and letters to the 3001.82 Filing of formal requests. right of the decimal point. For exam- 3001.83 Contents of formal requests. ple, ‘‘3001.24 Prehearing conferences’’ 3001.84 Filing of prepared direct evidence. shall be referred to as ‘‘section 24’’ or 3001.85 Mandatory technical conference. ‘‘rule 24.’’ 3001.86 Discovery—in general. 3001.87 Interrogatories. [65 FR 6539, Feb. 10, 2000] 3001.88 Production of documents. 3001.89 Admissions. § 3001.5 Definitions. 3001.90 Rebuttal testimony. 3001.91 Surrebuttal testimony. (a) Act means title 39, United States 3001.92 Hearings. Code, as amended. 3001.93 Initial and reply briefs. (b) Postal Service means the U.S. APPENDIX A TO SUBPART D OF PART 3001— Postal Service established by the Act. PRO-FORMA N-CASE PROCEDURAL SCHED- (c) Commission or Commissioner means, ULE respectively, the Postal Regulatory Commission established by the Act or a Subparts E–L [Reserved] member thereof.

AUTHORITY: 39 U.S.C. 404(d); 503; 504; 3661. (d) Secretary means the Secretary or the Acting Secretary of the Commis- SOURCE: 36 FR 396, Jan. 12, 1971, unless oth- sion. erwise noted. (e) Presiding officer means the Chair- EDITORIAL NOTE: Nomenclature changes to man of the Commission in proceedings part 3001 appear at 70 FR 48277, Aug. 17, 2005, conducted by the Commission en banc and 72 FR 33165, June 15, 2007. or the Commissioner or employee of the Commission designated to preside Subpart A—Rules of General at hearings or conferences. Applicability (f) Person means an individual, a partnership, corporation, trust, unin- § 3001.1 Construction of rules. corporated association, public or pri- The rules in this part shall be lib- vate organization, or governmental erally construed to secure just and agency. speedy determination of issues. (g) Party means the Postal Service, a [38 FR 4327, Feb. 13, 1973] complainant, an appellant, or a person who has intervened in a proceeding be- § 3001.2 [Reserved] fore the Commission. (h) Participant means any party to § 3001.3 Scope of rules. the proceeding, including formal inter- Except as otherwise provided in venors as described in § 3001.20, and the § 3001.71, the rules of practice in this Public Representative. In a proceeding part are applicable to proceedings be- that is not conducted under subpart D fore the Postal Regulatory Commission of this part, for purposes of §§ 3001.11(e), under the Act, including those which 3001.12, 3001.21, 3001.23, 3001.24, 3001.29, involve a hearing on the record before 3001.30, 3001.31, and 3001.32 only, the the Commission or its designated pre- term participant includes persons who siding officer and, as specified in part are limited participators. 3005 of this chapter to the procedures (i) Complainant means a person or infor compelling the production of infor- terested party who as permitted by sec- mation by the Postal Service. They do tion 3662 of the Act files a complaint not preclude the informal disposition with the Commission in the form and of any matters coming before the Com- manner hereinafter prescribed. mission not required by statute to be (j) Hearing means a hearing under determined upon notice and hearing. sections 556 and 557 of title 5, U.S.C. (80 [79 FR 33406, June 10, 2014] Stat. 386), as provided by section 3661 of

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the Act or in any other proceeding no- (2) Is not dominant in its field of op- ticed by the Commission under eration; §§ 3001.17 and 3001.18(a). (3) Has a place of business located in (k) Record means the transcript of the United States; testimony and exhibits, together with (4) Operates primarily within the all papers and requests filed in the pro- United States or makes a significant ceeding, which constitutes the exclu- contribution to the United States econ- sive record for decision. omy by paying taxes or using Amer- (l) Effective date of an order or notice ican products, materials, or labor; and issued by the Commission or an officer (5) Together with its affiliates, quali- thereof means the date of issuance un- fies as small in its primary industry less otherwise specifically provided. under the criteria and size standards (m) Petitioner means a person who is established by the Small Business Ad- permitted by 39 U.S.C. 404(d)(5) to ap- ministration in 13 CFR 121.201 based on peal to the Commission a determina- annual receipts or number of employ- tion of the Postal Service to close or ees. consolidate a post office. [36 FR 396, Jan. 12, 1971, as amended at 38 FR (n) Commission meeting means the de- 4327, Feb. 13, 1973; 42 FR 8142, Feb. 2, 1977; 42 liberations of at least three Commis- FR 10992, Feb. 25, 1977; 42 FR 13290, Mar. 10, sioners where such deliberations deter- 1977; 44 FR 26075, May 4, 1979; 58 FR 38976, mine or result in the joint conduct or July 21, 1993; 65 FR 6539, Feb. 10, 2000; 69 FR disposition of official Commission busi- 7593, Feb. 18, 2004; 71 FR 2472, Jan. 17, 2006; 72 ness, but does not include deliberations FR 63691, Nov. 9, 2007; 77 FR 6679, Feb. 9, 2012; required or permitted by § 3001.43(d) or 78 FR 36436, June 18, 2013; 79 FR 33406, June 10, 2014; 79 FR 54562, Sept. 11, 2014; 81 FR § 3001.43(e). 42541, June 30, 2016] (o)–(p) [Reserved] (q) Public Representative or PR means § 3001.6 Appearances. an officer of the Commission des- (a) By whom. An individual may ap- ignated to represent the interests of pear in his/her own behalf; a member of the general public in a Commission a partnership may represent the part- proceeding. nership; and an officer may represent a (r) Negotiated service agreement means corporation, trust, unincorporated as- a written contract, to be in effect for a sociation, or governmental agency. A defined period of time, between the person may be represented in a pro- Postal Service and a mailer, that proceeding by an attorney at law admitted vides for customer-specific rates or fees to practice and in good standing before and/or terms of service in accordance the Supreme Court of the United with the terms and conditions of the States, the highest court of any State contract. A rate associated with a ne- or Territory of the United States or gotiated service agreement is not a the District of Columbia, or the Court rate of general applicability. of Appeals or the District Court for the (s) Postal service refers to the delivery District of Columbia. of letters, printed matter, or mailable (b) Authority to act. When an officer packages, including acceptance, collec- of any participant or an attorney act- tion, sorting, transportation, or other ing in a representative capacity ap- functions ancillary thereto. pears in person, submits a document to (t) Product means a postal service the Commission online as a Principal with a distinct cost or market char- Account Holder, or signs a paper filed acteristic for which a rate or rates are, with the Commission, his/her personal or may reasonably be, applied. appearance, online submission, or sig- (u) Rate or class of general applicability nature, shall constitute a representa- means a rate or class that is available tion to the Commission that he/she is to all mailers equally on the same authorized to represent the particular terms and conditions. participant in whose behalf he/she acts. (v) Small business concern means a for- Any person appearing before or profit business entity that: transacting business with the Commis- (1) Is independently owned and oper- sion in a representative capacity may ated; be required by the Commission or the

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presiding officer to file evidence of his/ ticipate or advise as to the inter- her authority to act in such capacity. mediate decision or Commission deci- (c) Notice of appearance and with- sion in that proceeding except as a wit- drawal of appearance. An individual in- ness or counsel in public proceedings. tending to appear before the Commis- sion or its presiding officer in a rep- § 3001.9 Filing of documents. resentative capacity for a participant (a) Filing with the Commission. The fil- in a proceeding shall file with the Com- ing of each written document required mission a notice of appearance in the or authorized by these rules or any ap- form prescribed by the Secretary un- plicable statute, rule, regulation, or less that individual is named in an ini- order of the Commission, or by direc- tial filing of the participant whom he/ tion of the presiding officer, shall be she represents as a person to whom made using the Internet (Filing Online) communications from the Commission pursuant to § 3001.10(a) at the Commis- in regard to the filing are to be ad- sion’s Web site (http://www.prc.gov), un- dressed. A person whose authority to less a waiver is obtained. If a waiver is represent a participant in a specific obtained, a hard copy document may Commission proceeding has been ter- be filed either by mailing or by hand minated shall file a timely notice of delivery to the Office of Secretary and withdrawal of appearance with the Administration, Postal Regulatory Commission. Commission, 901 New York Avenue (d) Standards of conduct. Individuals NW., Suite 200, Washington, DC 20268– practicing before the Commission shall 0001 during regular business hours on a conform to the standards of ethical date no later than that specified for conduct required of practitioners in the such filing. The requirements of this courts of the United States. section do not apply to participants (e) Disqualification and suspension. other than the Postal Service in pro- After hearing, the Commission may ceedings conducted pursuant to part disqualify and deny, temporarily or 3025 of this chapter. permanently, the privilege of appear- (b) Account holder. In order for a doc- ing and practicing before it in any way ument to be accepted using Filing On- to any individual who is found not to line, it must be submitted to the Com- possess the requisite qualifications, or mission by a principal account holder to have engaged in unethical or im- or an agent account holder (Filing On- proper professional conduct. Contuma- line account holder). The authority of cious conduct at any hearing before the the principal account holder to rep- Commission or its presiding officer resent the participant on whose behalf shall be ground for exclusion of any in- the document is filed must be valid and dividual from such hearing and for current, in conformance with § 3001.6. summary suspension for the duration The authority of an agent account of the hearing by the Commission or holder to submit documents for a prin- the presiding officer. cipal account holder must be valid and current. A principal account holder [36 FR 396, Jan. 12, 1971, as amended at 38 FR 4327, Feb. 13, 1973; 51 FR 8827, Mar. 14, 1986; 58 must promptly inform the Secretary of FR 38976, July 21, 1993; 67 FR 67559, Nov. 6, any change in his/her authority to rep- 2002] resent participants in a proceeding or any change in the authority delegated § 3001.7 [Reserved] to an agent account holder to submit documents on his/her behalf. § 3001.8 No participation by investiga- (c) Acceptance for filing. Only such tive or prosecuting officers. documents as conform to the require- In any proceeding noticed pursuant ments of this part and any other appli- to § 3001.17, no officer, employee or cable rule or order authorized by the agent of the Commission who appears Commission shall be accepted for fil- in the hearing in a proceeding before ing. In order for a document to be ac- the Commission as an attorney or wit- cepted using Filing Online, it must be ness or who actively participates in the submitted to the Commission by a Fil- preparation of evidence or argument ing Online account holder. presented by such persons, shall par- (1) Subject to § 3001.9(d):

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(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) Documents filed online must sat- Saturday, Sunday, or federal holiday, isfy Filing Online system compat- shall be deemed to be filed on the next ibility requirements specified by the regular business day. Secretary in the Filing Online User (d) Rejected filings. Any filing that Guide, which may be accessed from the does not comply with any applicable Filing Online page on the Commis- rule or order authorized by the Com- sion’s Web site, http://www.prc.gov. mission may be rejected. Any filing (5) Documents requiring privileged or that is rejected is deemed not to have protected treatment shall not be filed been filed with the Commission. If a online. filing is rejected, the Secretary or the (6) Documents requiring privileged or Secretary’s designee will notify the protected treatment shall not be filed person submitting the filing, indi- online. cating the reason(s) for rejection. Ac- (b) Hard copies. Each document filed ceptance for filing shall not waive any in paper form must be produced on let- failure to comply with this part, and ter-size paper, 8 to 81⁄2 inches wide by such failure may be cause for subse- 101⁄2 to 11 inches long, with left- and quently striking all or any part of any right-hand margins not less than 1 inch document. and other margins not less than .75 (e) Account holder exemptions. Notices inches, except that tables, charts or of intervention and comments solicited special documents attached thereto by the Commission may be filed under may be larger if required, provided that temporary Filing Online accounts. they are folded to the size of the docu- Temporary Filing Online accounts may ment to which they are attached. If the be obtained without meeting all of the document is bound, it shall be bound requirements of paragraphs (b) and (c) on the left side. Copies of documents of this section, and the subscription re- for filing and service must be printed quirements of § 3001.11(e). Other cat- from a text-based pdf version of the egories of documents may be filed document, where possible. Otherwise, under temporary Filing Online ac- they may be reproduced by any dupli- counts under extraordinary cir- cating process that produces clear and cumstances, for good cause shown. legible copies. Each person filing a [67 FR 67559, Nov. 6, 2002, as amended at 68 hardcopy document with the Commis- FR 47, Jan. 2, 2003; 77 FR 6679, Feb. 9, 2012; 78 sion must provide an original and two FR 36437, June 18, 2013] fully conformed copies of the document required or permitted to be filed under § 3001.10 Form and number of copies this part, except for a document filed of documents. under seal, for which only the original (a) Documents. Each document filed and two (2) copies need be filed. The with the Commission must be sub- copies need not be signed but shall mitted through Filing Online by an ac- show the full name of the individual count holder, unless a waiver is ob- signing the original document and the tained. certificate of service attached thereto. (1) The text of documents filed with (c) Computer media. A participant the Commission shall be formatted in that has obtained a waiver of the on- not less than one and one-half spaced line filing requirement of § 3001.9(a)

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may submit a document on standard he/she knows the contents thereof; that PC media, simultaneously with the fil- if executed in any representative ca- ing of one printed original and two pacity, the document has been sub- hard copies, provided that the stored scribed and executed in the capacity document is a file generated in either specified in the document with full Acrobat (pdf), Word, WordPerfect, or power and authority so to do; that to Rich Text Format (rtf). the best of his/her knowledge, informa- (d) Exception for appeals of post office tion and belief every statement con- closings and consolidations. The require- tained in the document is true and no ments of this section do not apply to such statements are misleading; and participants other than the Postal that such document is not filed for pur- Service in proceedings conducted purposes of delay. suant to part 3025 of this chapter. (1) For a document filed via the Internet by an account holder, the sub- [67 FR 67559, Nov. 6, 2002, as amended at 77 scription requirement is met when the FR 6679, Feb. 9, 2012; 78 FR 36437, June 18, 2013] document is filed with the Commis- sion. § 3001.11 General contents of docu- (2) For a hardcopy document filed ments. under either § 3001.10(b) or (c), the origi- (a) Caption and title. The caption of nal shall be signed in ink by the indi- each document filed with the Commis- vidual filing the same or by an author- sion in any proceeding shall clearly ized officer, employee, attorney, or show the docket designation and title other representative and all other cop- of the proceeding before the Commis- ies of such document filed with the sion. The title of such document shall Commission and served on the partici- identify each participant on whose be- pants in any proceeding shall be fully half the filing is made and include a conformed thereto. brief description of the document or (f) Table of contents. Each document the nature of the relief sought therein filed with the Commission consisting of 20 or more pages shall include a (e.g., motion for extension, brief on ex- table of contents with page references. ceptions, complaint, notice of interven- For briefs see § 3001.34. tion, answer to complaint). (g) Certificate of service. A certificate (b) Designation of individuals to receive of service signed in ink must be at- service. Each notice of intervention tached to the original of each hardcopy filed pursuant to § 3001.20 or § 3001.20a document filed with the Commission must state the name, full mailing ad- showing service on all participants in a dress, telephone number, and e-mail proceeding as prescribed by § 3001.12. address of up to two individuals des- All copies filed and served shall be ignated to receive service of hardcopy fully conformed thereto. documents relating to the proceeding. (c) Contents. In the event there is no [67 FR 67559, Nov. 6, 2002] rule, regulation, or order of the Com- mission which specifically prescribes § 3001.12 Service of documents. the contents of any document to be (a) Service by account holders. Each filed, such document shall contain a document filed in a proceeding via the proper identification of the parties Internet by an Account Holder shall be concerned and a concise but complete deemed served on all participants when statement of the relief sought and of it is accepted by the Secretary and the facts and citations of authority and posted on the Commission’s Web site, precedent relied upon. except that: (d) Improper matter. Defamatory, scur- (1) A document that must be served rilous, or unethical matter shall not be on a participant that the Commission included in any document filed with or presiding officer has determined is the Commission. unable to receive service through the (e) Subscription. Each document filed Commission’s Web site shall be served with the Commission shall be sub- on such participant by the Secretary scribed. Subscription constitutes a cer- by First-Class Mail. tification that he/she has read the doc- (2) In proceedings conducted pursu- ument being subscribed and filed; that ant to part 3025 of this chapter, the

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Secretary will serve documents (except service list for each current proceeding an administrative record) on partici- will be available on the Commission’s pants who do not use Filing Online. Web site http://www.prc.gov. Each par- Service will be 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. its website. Service of Commission doc- (i) Form of hardcopy certificate of serv- uments on any participant that the ice. The certificate of service of Commission or presiding officer has de- hardcopy documents shall show the termined is unable to receive service name of the participant or his/her through the Commission Web site shall counsel making service, the date and be by First-Class Mail. place of service, and include the state- (d) Hardcopy documents. Each partici- ment that ‘‘I hereby certify that I have pant filing a hardcopy document in a this day served the foregoing document proceeding shall serve such document upon all participants of record in this upon each person on the proceeding’s proceeding in accordance with section service list, unless that person is sub- 12 of the rules of practice. ject to paragraph (b) of this section, or the Commission or presiding officer [67 FR 67559, Nov. 6, 2002, as amended at 77 otherwise directs. FR 6679, Feb. 9, 2012; 78 FR 36437, June 18, (e) Limitation on extent of hardcopy 2013] service. To avoid the imposition of an unreasonable burden upon participants, § 3001.13 Docket and hearing calendar. the Commission or the presiding officer The Secretary shall maintain a dock- may, by appropriate order, limit serv- et of all proceedings, and each pro- ice of hardcopy documents to service ceeding as initiated shall be assigned upon participants intending to actively an appropriate designation. The Sec- participate in the hearing, or upon a retary shall maintain a hearing cal- person or persons designated for prop- endar of all proceedings that have been erly representative groups, or by reset for hearing. Proceedings shall be quiring the making of documents heard on the date set in the hearing available for convenient public inspec- order, except that the Commission may tion, or by any combination of such for cause, with or without motion, at methods. any time with due notice to the parties (f) Service list. The Secretary shall advance or postpone the date of hear- maintain a current service list in each ing. All documents filed in a docket, proceeding which shall include the par- other than matter filed under seal, and ticipants in that proceeding and up to the hearing calendar may be accessed two individuals designated for service remotely via the Commission’s Web of documents by each participant. The site, or viewed at the Commission’s

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docket section during regular business by written or oral motion to the pre- hours. siding officer. Requests for continuances or extensions of time may as a [67 FR 67559, Nov. 6, 2002] matter of discretion be acted upon § 3001.14 Consolidation and separation without waiting for answers thereto. of proceedings. § 3001.17 Notice of proceeding. The Commission, with or without motion, may order proceedings involv- (a) When issued. The Commission ing related issues or facts to be consoli- shall issue a notice of a proceeding to dated for hearing of any or all matters be determined on the record with an in issue in such proceedings. The Com- opportunity for any interested person mission may sever proceedings which to request a hearing whenever: have been consolidated, or order sepa- (1) The Postal Service files a request rate proceedings on any issue pre- with the Commission to issue an advi- sented, if it appears that separate pro- sory opinion on a proposed change in ceedings will be more convenient, expe- the nature of postal services which will ditious, or otherwise appropriate. generally affect service on a nationwide or substantially nationwide basis; § 3001.15 Computation of time. (2) The Commission determines that Except as otherwise provided by law, a complaint filed under part 3030 of this in computing any period of time pre- chapter raises one or more material scribed or allowed by this part, or by issues of fact or law in accordance with any notice, order, rule or regulation of § 3030.30 of this chapter; or the Commission or a presiding officer, (3) The Commission in the exercise of the day of the act, event, or default its discretion determines it is appro- after which the designated period of priate. time begins to run is not to be in- (b) Publication and service of notice. cluded. The last day of the period so Each notice of proceeding shall be pub- computed is to be included unless it is lished in the FEDERAL REGISTER and a Saturday, Sunday, or federal holiday, served on the Postal Service, and the in which event the period runs until complainant in a complaint pro- the end of the next day which is nei- ceeding. ther a Saturday, Sunday, nor a Federal (c) Contents of notice. The notice of a holiday. Except in proceedings con- proceeding shall include the following: ducted under subpart D of this part, in (1) The general nature of the pro- computing a period of time which is 5 ceeding involved in terms of categories days or less, all Saturdays, Sundays listed in paragraph (a) of this section; and Federal holidays are to be ex- (2) A reference to the legal authority cluded. under which the proceeding is to be [79 FR 33406, June 10, 2014] conducted; (3) A concise description of proposals § 3001.16 Continuances and extensions for changes in rates or fees, proposals of time. for the establishment of or changes in Continuances of any proceeding or the mail classification schedule, pro- hearing and extensions of time for posals for changes in the nature of making any filing or performing any postal services and, in the case of a act required or allowed to be done complaint, an identification of the within a specified time or by a speci- complainant and a concise description fied date may be granted by the Com- of the subject matter of the complaint; mission or the presiding officer upon (4) The date by which notices of motion for good cause shown unless the intervention and requests for hearing time for performance or filing is lim- must be filed; ited by statute. Requests for extension (5) In proceedings under subpart D of of time shall be by written motion this part involving Postal Service re- timely filed with the Commission stat- quests for issuance of an advisory opin- ing the facts on which the application ion, the notice issued under this sec- rests, except that after a hearing has tion shall include the procedural sched- convened, such requests shall be made ule provided for under § 3001.80; and

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(6) Such other information as the § 3001.17(a), the Commission shall give Commission may desire to include. due notice of any prehearing conference or hearing by including the [77 FR 6679, Feb. 9, 2012, as amended at 78 FR 36437, June 18, 2013; 79 FR 33406, June 10, 2014] time and place of the conference or hearing in the notice of proceeding or § 3001.18 Nature of proceedings. by subsequently issuing a notice of prehearing conference or hearing. Such (a) Proceedings to be set for hearing. notice of prehearing conference or Except as otherwise provided in these hearing shall give the title and docket rules, in any case noticed for a pro- designation of the proceeding, a ref- ceeding to be determined on the record erence to the original notice of pro- pursuant to § 3001.17(a), the Commis- ceeding and the date of such notice, sion may hold a public hearing if a and the time and place of the con- hearing is requested by any party to ference or hearing. Such notice shall be the proceeding or if the Commission in published in the FEDERAL REGISTER the exercise of its discretion deter- and served on all participants in the mines that a hearing is in the public proceeding. Notice of the time and interest. The Commission may give no- place where a hearing will be recon- tice of its determination that a hearing vened shall be served on all partici- shall be held in its original notice of pants in the proceeding unless an- the proceeding or in a subsequent no- nouncement was made thereof by the tice issued pursuant to paragraph (b) of presiding officer at the adjournment of this section and § 3001.19. an earlier session of the prehearing (b) Procedure in hearing cases. In pro- conference or hearing. ceedings which are to be set for hearing, the Commission shall issue a no- [78 FR 36437, June 18, 2013] tice of hearing or prehearing con- § 3001.20 Formal intervention. ference pursuant to § 3001.19. After the completion of the hearing, the Com- (a) Who may intervene. A notice of mission or the presiding officer shall intervention will be entertained in receive such briefs and hear such oral those cases that are noticed for a pro- argument as may be ordered by the ceeding pursuant to § 3001.17(a) from Commission or the presiding officer any person claiming an interest of such pursuant to §§ 3001.34 to 3001.37. The nature that intervention is allowed by Commission shall then issue an advi- the Act, or appropriate to its adminis- sory opinion or final decision, as appro- tration. (b) A notice of intervention priate. Contents. shall clearly and concisely set forth (c) Procedure in non-hearing cases. In the nature and extent of the interve- any case noticed for a proceeding to be nor’s interest in the issues to be de- determined on the record in which a cided, including the classifications of hearing is not requested by any party postal service utilized by the inter- or ordered by the Commission, the venor giving rise to his/her interest in Commission or the presiding officer the proceeding, and to the extent shall issue a notice of the procedure to known, the position of the intervenor be followed with regard to the filing of with regard to the proposed changes in briefs and oral argument. The Commis- postal rates, fees, classifications, or sion shall then issue an advisory opin- services, or the subject matter of the ion or final decision, as appropriate. complaint, as described in the notice of The Commission or presiding officer the proceeding. Such notice shall state may, if necessary or desirable, call pro- whether or not the intervenor requests cedural conferences by issuance of a a hearing or in lieu thereof, a con- notice pursuant to § 3001.19. ference, and whether or not the inter- [36 FR 396, Jan. 12, 1971, as amended at 65 FR venor intends to actively participate in 6540, Feb. 10, 2000; 78 FR 36437, June 18, 2013] a hearing. Such notice shall also include on page one thereof the name and § 3001.19 Notice of prehearing con- full mailing address of no more than ference or hearing. two persons who are to receive service In any proceeding noticed for a proof any documents relating to such proceeding on the record pursuant to ceeding.

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(c) Form and time of filing. Notices of § 3001.20a Limited participation by intervention shall be filed no later persons not parties. than the date fixed for such filing in Except for cases noticed for a pro- any notice or order with respect to the ceeding under subpart D of this part, proceeding issued by the Commission any person may, notwithstanding the or its Secretary, unless in extraordinary circumstances for good cause provisions of § 3001.20, appear as a lim- shown, the Commission authorizes a ited participator in any case that is no- late filing. Notices of intervention ticed for a proceeding pursuant to shall conform to the requirements of § 3001.17(a) in accordance with the fol- §§ 3001.9 through 3001.12. lowing provisions: (d) Oppositions. (1) Except as other- (a) Form of intervention. Notices of wise provided in paragraph (d)(2) of this intervention as a limited participator section, oppositions to notices of inter- shall be in writing, shall set forth the vention may be filed by any partici- nature and extent of the intervenor’s pant in the proceeding no later than 10 interest in the proceeding, and shall days after the notice of intervention is conform to the requirements of §§ 3001.9 filed. through 3001.12. (2) Oppositions to notices of interven- (b) Oppositions. Oppositions to notices tions in proceedings conducted under to intervene as a limited participator subpart D of this part may be filed by may be filed by any participant in the any participant in the proceeding no proceeding no later than 10 days after later than 3 days after the notice of the notice of intervention as a limited intervention is filed. participator is filed. (3) Pending Commission action, an opposition to intervention shall, in all (c) Scope of participation. Subject to proceedings except those conducted the provisions of § 3001.30(f), limited under subpart D of this part, delay on participators may present evidence a day-for-day basis the date for re- which is relevant to the issues involved sponses to discovery requests filed by in the proceeding and their testimony that intervenor. shall be subject to cross-examination (e) Effect of intervention. A person fil- on the same terms applicable to that of ing a notice of intervention shall be a formal participants. Limited partici- party to the proceeding subject, how- pators may file briefs or proposed find- ever, to a determination by the Com- ings pursuant to §§ 3001.34 and 3001.35, mission, either in response to an oppo- and within 15 days after the release of sition, or sua sponte, that party status an intermediate decision, or such other is not appropriate under the Act. Inter- time as may be fixed by the Commis- venors are also subject to the right of sion, they may file a written statement the Commission or the presiding officer of their position on the issues. The as specified in § 3001.24 to require two Commission or the presiding officer or more intervenors having substan- may require limited participators hav- tially like interests and positions to ing substantially like interests and po- join together for purposes of service of sitions to join together for any or all of documents, presenting evidence, mak- the above purposes. Limited partici- ing and arguing motions and objec- pators are not required to respond to tions, propounding discovery, cross-ex- discovery requests under §§ 3001.25 amining witnesses, filing briefs, and presenting oral arguments to the Com- through 3001.28 except to the extent mission or presiding officer. No inter- that those requests are directed specifi- vention shall be deemed to constitute a cally to testimony which the limited decision by the Commission that the participators provided in the pro- intervenor is aggrieved for purposes of ceeding; however, limited participators perfecting an appeal of any final order are advised that failure to provide rel- of the Commission. evant and material information in support of their claims will be taken into [48 FR 15627, Apr. 12, 1983, as amended at 58 FR 38976, July 21, 1993; 58 FR 38976, July 21, account in determining the weight to 1993; 65 FR 6540, Feb. 10, 2000; 67 FR 67561, Nov. 6, 2002; 79 FR 33407, June 10, 2014]

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be placed on their evidence and argu- parte communication within the mean- ments. ing of § 3001.7. [48 FR 15627, Apr. 12, 1983, as amended at 58 [42 FR 8142, Feb. 9, 1977. Redesignated at 48 FR 38976, July 21, 1993; 60 FR 12115, Mar. 6, FR 15627, Apr. 12, 1983, as amended at 58 FR 1995; 65 FR 6540, Feb. 10, 2000; 67 FR 67561, 38976, July 21, 1993; 68 FR 47, Jan. 2, 2003; 78 Nov. 6, 2002; 78 FR 36438, June 18, 2013; 79 FR FR 36438, June 18, 2013] 33407, June 10, 2014] § 3001.21 Motions. § 3001.20b Informal expression of (a) Scope and contents. An application views by persons not parties or limited participators (commenters). for an order or ruling not otherwise specifically provided for in this part Notwithstanding the provisions of shall be by motion. Motions shall set §§ 3001.20 and 3001.20a, any person may forth with particularity the ruling or file with the Commission, in any case relief sought, the grounds and basis that is noticed for a hearing pursuant therefor, and the statutory or other au- to § 3001.17(a), an informal statement of thority relied upon, and shall be filed views in writing, in accordance with with the Secretary and served pursuant the following provisions: to the provisions of §§ 3001.9 to 3001.12. (a) Form of statement. A statement All motions to dismiss proceedings or filed pursuant to this section may be other motions which involve a final de- submitted as a hardcopy letter mailed termination of the proceeding shall be to the Secretary or an electronic mes- addressed to the Commission. After a sage entered under the ‘‘Contact Us’’ presiding officer is designated in any link on the Commission’s Web site, proceeding, and before the issuance of http://www.prc.gov. an intermediate decision pursuant to (b) Contents of statement. A statement § 3001.39 or certification of the record to filed pursuant to this section shall set the Commission pursuant to § 3001.38, forth the name and full mailing address all other motions in that proceeding of the person by whom or on whose be- shall be addressed to the presiding offi- half it is filed, a concise statement of cer. the issue or issues to which the com- (b) Answers. Within seven days after a ments contained therein apply, and a motion is filed, or such other period as clear statement of any views, opinions, the rules provide or the Commission or or suggestions which the person filing presiding officer may fix, any partici- the statement wishes to lay before the pant to the proceeding may file and Commission. serve an answer in support of or in op- (c) Disposition by the Commission or position to the motion pursuant to presiding officer. Statements filed pur- §§ 3001.9 to 3001.12. Such answers shall suant to this section shall be made a state with particularity the position of part of the Commission’s files in the the participant with regard to the rul- proceeding. The Secretary shall maining or relief requested in the motion tain a file of such statements which and the grounds and basis and statu- shall be segregated from the evi- tory or other authority relied upon. dentiary record in the proceeding, and Unless the Commission or presiding of- shall be open to public inspection dur- ficer otherwise provides, no reply to an ing the Commission’s office hours. A answer or any further responsive docu- statement or exhibit thereto filed pur- ment shall be filed. suant to this section shall not be ac- (c) Motions to strike. Motions to strike cepted in the ‘‘record,’’ as defined by are requests for extraordinary relief § 3001.5(k) except to the extent that it and are not substitutes for briefs or re- is (1) otherwise formally introduced in buttal evidence in a proceeding. All evidence, or (2) a proper subject of offi- motions to strike testimony or exhibit cial notice, pursuant to § 3001.31(j). materials are to be submitted in writ- (d) Ex parte communications—excep- ing at least 14 days before the sched- tion. A statement filed pursuant to this uled appearance of the witness, unless section shall not be considered an ex

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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 intermediate deci- 1993; 65 FR 6540, Feb. 10, 2000; 78 FR 36438, sion in accordance with §§ 3001.38 and June 18, 2013] 3001.39; and § 3001.22 Requests for waiver. (10) To take any other action necessary or appropriate to the discharge Upon request by motion, any require- of the duties vested in them, consistent ment of any subpart of this Part 3001 with the statutory or other authorities may be waived in whole or in part to under which the Commission functions the extent permitted by law upon a and with the rules, regulations, and showing that such waiver will not unduly 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 expeditious discharge of its responsibil- fair and impartial hearing and to main- ities under the Act. A request for waiv- tain order. Any disregard by partici- er shall not be entertained unless it is pants or counsel of his/her rulings on timely filed so as to permit Commis- matters of order and procedure shall be sion disposition of the request prior to noted on the record, and where he/she the date specified for the requirement deems it necessary shall be made the for which waiver is requested. The subject of a special written report to pendency of a request for waiver does the Commission. In the event that par- not justify or excuse any person from ticipants or counsel should be guilty of timely meeting the requirements of disrespectful, disorderly, or contuma- this part. cious language or conduct in connection with any hearing, the presiding of- § 3001.23 Presiding officers. ficer immediately may submit to the (a) Authority delegated. Presiding offi- Commission his/her report thereon, to- cers shall have the authority, within gether with his/her recommendations, the Commission’s powers and subject and in his/her discretion, suspend the to its published rules, as follows: hearing. (1) To regulate the course of the (c) Ex parte communication. Except to hearing, including the recessing, recon- the extent required for the disposition vening, and adjournment thereof, unless otherwise directed by the Commis- of ex parte matters as authorized by sion, as provided in § 3001.16; law and by the rules of the Commis- (2) To administer oaths and affirma- sion, no presiding officer shall, in any tions; proceeding in which the Commission (3) To issue subpoenas authorized by may so direct, or in any proceeding re- law; quired by statute to be determined on (4) To rule upon offers of proof and the record after opportunity for hear- receive relevant evidence; ing, consult any person on any matter (5) To take or authorize that deposi- in issue unless upon notice and oppor- tions be taken as provided in § 3001.33; tunity for all participants to be heard. (6) To hold appropriate conferences (d) Disqualification. A presiding offi- before or during hearings and to rule cer may withdraw from a proceeding on matters raised at such conferences when he/she deems himself disqualified, including those specified in paragraph or may be withdrawn by the Commis- (d) of § 3001.24; sion for good cause found after timely (7) To dispose of procedural requests affidavits alleging personal bias or or similar matters but not, before their other disqualifications have been filed. intermediate decision, to dispose of motions made during hearings to dis- [36 FR 396, Jan. 12, 1971, as amended at 49 FR miss proceedings or other motions 6490, Feb. 22, 1984; 51 FR 8827, Mar. 14, 1986; 58 which involve a final determination of FR 38976, July 21, 1993; 78 FR 36438, June 18, the proceeding; 2013]

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§ 3001.24 Prehearing conferences. expected to cooperate fully at all (a) Initiation and purposes. In any pro- stages of the proceeding to achieve ceeding the Commission or the pre- these objectives, through thorough ad- siding officer may, with or without mo- vance preparation for the prehearing tion, upon due notice as to time and conference, including informal commu- place, direct the participants in a pro- nications between the participants, re- ceeding to appear for a prehearing con- quests for discovery and appropriate ference for the purposes of considering discovery procedures at the earliest all possible ways of expediting the pro- possible time and no later than at the ceeding, including those in paragraph prehearing conference, and the com- (d) of this section. It is the intent of mencement of preparation of evidence the Commission to issue its advisory and cross-examination. The failure of opinion on requests under section 3661 any participant to appear at the pre- of the Act with the utmost practicable hearing conference or to raise any mat- expedition. The Commission directs ters that could reasonably be antici- that these prehearing procedures shall pated and resolved at the prehearing be rigorously pursued by the presiding conference shall not be permitted to officer and all participants to that end. unduly delay the progress of the pro- (b) Informal off-the-record procedures. ceeding and shall constitute a waiver In order to make the prehearing con- of the rights of the participant with reference as effective as possible, the pre- gard thereto, including all objections siding officer may, in his/her discre- to the agreements reached, actions tion, direct that conferences be held off taken, or rulings issued by the pre- the record at the beginning of a presiding officer with regard thereto. hearing conference or at other appro- (d) Matters to be pursued. At the pre- priate times, without the presiding of- hearing conference in any proceeding, ficer being present. Such informal off- the presiding officer and the partici- the-record conferences shall be pre- pants shall consider and resolve the sided over by the Commission’s officer following matters: designated to represent the interests of (1) The definition and simplification the general public or such other person of the issues including any appropriate as the participants may select. At such explanation, clarification, or amend- off-the-record conferences the partici- ment of any proposal, filing, evidence, pants shall be expected to reach agree- complaint or other pleading filed by ment on those matters which will expe- any participant; dite the proceeding, including the mat- (2) Arrangement for timely comple- ters specified in the notice of the pre- tion of discovery from the Postal Serv- hearing conference, in the ruling of the ice or any other participant concerning presiding officer directing that the off- information desired by any participant the-record conference be held and in with regard to any issues in the pro- paragraph (d) of this section. A report ceeding or prior filings, evidence or on the results of such off-the-record pleadings of any participant; conference shall be made to the pre- (3) Agreement as to procedures for siding officer on the record at a time timely discovery with regard to any fu- specified by the presiding officer and ture evidentiary filings of any partici- he/she shall then determine the further pant; prehearing procedures to be followed. (4) Stipulations, admissions or con- (c) Required preparation and coopera- cessions as to evidentiary facts, and tion of all parties. All participants in agreements as to documentary mat- any proceeding before the Commission ters, exhibits and matters of official are required and expected to come to notice, which will avoid unnecessary the prehearing conference fully pre- proof or dispute; pared to discuss in detail and resolve (5) Grouping parties with substan- all matters specified in paragraph (d) tially like interests for purposes of pre- of this section, and notice of the presenting evidence, making and arguing hearing conference, and such other no- motions and objections, cross-exam- tice or agenda as may have been issued ining witnesses, filing briefs, and pre- by the Commission or the presiding of- senting oral argument to the Commis- ficer. All participants are required and sion or presiding officer;

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(6) Disclosure of the number, identity § 3001.25 Discovery—general policy. and qualifications of witnesses, and the (a) Sections 3001.26 to 3001.28 allow nature of their testimony, particularly discovery reasonably calculated to lead with respect to the policies of the Act to admissible evidence during a noticed and, as applicable according to the na- proceeding. Generally, discovery ture of the proceeding; 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. 3661, or set for hearing the use of discovery prior to the hear- under part 3030 of this chapter, when a ing and submission of written testi- participant needs to obtain informa- mony and exhibits on matters in dis- tion (such as operating procedures or pute so as to restrict to a bare min- data) available only from the Postal imum the amount of hearing time re- Service. Discovery requests of this na- quired for oral cross-examination of ture are permissible only for the pur- witnesses; pose of the development of rebuttal (9) Division of the proceeding where testimony and may be made up to 20 practicable into two or more phases for days prior to the filing date for final separate simultaneous hearings; rebuttal testimony. (10) Fixing dates for the submission (b) The discovery procedures set and service of such written testimony forth in rules 26 through 28 are not ex- and exhibits as may be appropriate in clusive. Participants are encouraged to advance of the hearing; engage in informal discovery whenever (11) Order of presentation of the evi- possible to clarify exhibits and testi- dence and cross-examination of wit- mony. The results of these efforts may nesses so that the hearing may proceed be introduced into the record by stipu- in the most expeditious and orderly lation, by supplementary testimony or manner possible; and exhibit, by presenting selected written (12) All other matters which would interrogatories and answers for adop- aid in an expeditious disposition of the tion by a witness at the hearing, or by proceeding, including consent of the other appropriate means. In the inter- participants to the conduct of the en- est of reducing motion practice, parties tire proceedings off the record. also are expected to use informal (e) Rulings by presiding officer. The means to clarify questions and to iden- presiding officer at such prehearing tify portions of discovery requests con- conference, irrespective of the consent sidered overbroad or burdensome. of the participants, shall dispose of by (c) If a participant or an officer or ruling (1) any of the procedural mat- agent of a participant fails to obey an ters itemized in paragraph (d) of this order of the Commission or the pre- section and (2) such other procedural siding officer to provide or permit dis- matters on which he/she is authorized covery pursuant to §§ 3001.26 to 3001.28, to rule during the course of the hearing the Commission or the presiding officer if ruling at this stage would expedite may make such orders in regard to the the proceeding. Either on the record at failure as are just, and among others, the conclusion of such prehearing con- may direct that the matters regarding ference, or by order issued shortly which the order was made or any other thereafter, the presiding officer shall designated facts shall be taken to be state the agreements reached by the established for the purposes of the pro- participants, the actions taken, and ceeding in accordance with the claim the rulings made by the presiding offi- of the participants obtaining the order, cer. Such rulings shall control the sub- or prohibit the disobedient participant sequent course of the proceedings un- from introducing designated matters in less modified at the hearing to prevent evidence, or strike the evidence, com- manifest injustice. plaint or pleadings or parts thereof. [36 FR 396, Jan. 12, 1971, as amended at 58 FR [65 FR 6543, Feb. 10, 2000, as amended at 78 38976, July 21, 1993; 78 FR 36438, June 18, 2013] FR 36438, June 18, 2013]

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§ 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 ticipant to identify each person whom that such an interrogatory need not be the other participant expects to call as answered until a prehearing conference a witness at the hearing and to state or other later time. Objections shall be the subject matter on which the wit- filed with the Commission in conform- ness is expected to testify. The partici- ance with §§ 3001.9 through 3001.12 with- pant propounding the interrogatories in 10 days of the filing of the interrog- shall file them with the Commission in atories. conformance with §§ 3001.9 through (d) Motions to compel responses to dis- 3001.12. Follow-up interrogatories to covery. Motions to compel a more re- clarify or elaborate on the answer to sponsive answer, or an answer to an in- an earlier discovery request may be terrogatory to which an objection was filed after the initial discovery period interposed, should be filed within 14 ends. They must be filed within seven days of the answer or objection to the days of receipt of the answer to the discovery request. The text of the dis- previous interrogatory unless extraor- covery request, and any answer pro- dinary circumstances are shown. vided, should be provided as an attach- (b) Answers. Answers to discovery re- ment to the motion to compel. Partici- quests shall be prepared so that they pants who have objected to interrog- can be incorporated as written cross- atories which are the subject of a mo- examination. Each answer shall begin tion to compel shall have seven days to on a separate page, identify the indi- answer. Answers will be considered vidual responding and the relevant tes- supplements to the arguments pre- timony number, if any, the participant sented in the initial objection. who asked the question, and the num- (e) Compelled answers. The Commis- ber and text of the question. Each in- sion, or the presiding officer, upon mo- terrogatory shall be answered sepa- tion of any participant to the pro- rately and fully in writing, unless it is ceeding, may compel a more responsive objected to, in which event the reasons answer, or an answer to an interrog- for objection shall be stated in the atory to which an objection has been manner prescribed by paragraph (c) of raised if the objection is found not to this section. The participant respond- be valid, or may compel an additional ing to the interrogatories shall file the answer if the initial answer is found to answers in conformance with §§ 3001.9 be inadequate. Such compelled answers through 3001.12 within 14 days of the shall be filed in conformance with filing of the interrogatories or within §§ 3001.9 through 3001.12 within seven such other period as may be fixed by days of the date of the order compel- the Commission or presiding officer, ling an answer or within such other pe- but before the conclusion of the hear- riod as may be fixed by the Commis- ing. sion or presiding officer, but before the (c) Objections. In the interest of expe- conclusion of the hearing. dition, the bases for objection shall be (f) Supplemental answers. The indi- clearly and fully stated. If objection is vidual or participant who has answered

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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 3001.12 within 14 was incorrect when made or is no days after the request is filed, or with- longer true. Participants shall serve in 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, (g) Orders. The Commission or the the part shall be specified. A partici- presiding officer may order that any pant claiming privilege shall identify participant or person shall answer on the specific evidentiary privilege as- such terms and conditions as are just serted and state with particularity the and may for good cause make any pro- reasons for its applicability. A partici- tective order, including an order lim- pant claiming undue burden shall state iting or conditioning interrogatories, with particularity the effort that as justice requires to protect a partici- would be required to answer the re- pant or person from undue annoyance, quest, providing estimates of cost and embarrassment, oppression, or expense. work hours required, to the extent pos- [65 FR 6541, Feb. 10, 2000, as amended at 67 sible. Objections shall be filed with the FR 67561, Nov. 6, 2002] Commission in conformance with §§ 3001.9 through 3001.12 within 10 days § 3001.27 Requests for production of of the request for production. documents or things for purpose of (d) Motions to compel requests for pro- discovery. duction of documents or things for pur- (a) Service and contents. In the inter- poses of discovery. Motions to compel est of expedition and limited to infor- shall be filed within 14 days of the an- mation which appears reasonably cal- swer or objection to the discovery re- culated to lead to the discovery of ad- quest. The text of the discovery re- missible evidence, any participant may quest, and any answer provided, should serve on any other participant to the be provided as an attachment to the proceeding a request to produce and motion to compel. Participants who permit the participant making the re- have objected to requests for produc- quest, or someone acting in his/her be- tion of documents or things which are half, to inspect and copy any des- the subject of a motion to compel shall ignated documents or things that con- have seven days to answer. Answers stitute or contain matters, not privi- will be considered supplements to the leged, that are relevant to the subject arguments presented in the initial ob- matter involved in the proceeding and jection. that are in the custody or control of (e) Compelled answers. Upon motion of the participant to whom the request is any participant to the proceeding to addressed. The request shall set forth compel a response to discovery, as pro- the items to be inspected either by in- vided in paragraph (d) of this section, dividual item or category, and describe the Commission or the presiding officer each item and category with reason- may compel production of documents able particularity, and shall specify a or things to which an objection is reasonable time, place and manner of found not to be valid. Such compelled making inspection. The participant re- documents or things shall be made questing the production of documents available to the participant making or things shall file its request with the the motion within seven days of the Commission in conformance with date of the order compelling produc- §§ 3001.9 through 3001.12. tion or within such other period as

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may be fixed by the Commission or pre- Commission in conformance with siding officer, but before the conclu- §§ 3001.9 through 3001.12, within 10 days sion of the hearing. When complying of the request for admissions. with orders to produce documents or (d) Motions to compel responses to re- things, notice shall be filed in conform- quests for admissions. Motions to compel ance with §§ 3001.9 through 3001.12. The a more responsive answer, or an answer Commission or the presiding officer to a request to which an objection was may, on such terms and conditions as interposed, shall be filed within 14 days are just and reasonable, order that any of the answer or objection to the re- participant in a proceeding shall request for admissions. The text of the spond to a request for inspection, and may make any protective order of the request for admissions, and any answer nature provided in § 3001.26(g) as may provided, should be provided as an at- be appropriate. tachment to the motion to compel. Participants who have objected to re- [65 FR 6541, Feb. 10, 2000, as amended at 67 quests for admissions which are the FR 67562, Nov. 6, 2002; 78 FR 36438, June 18, 2013] subject of a motion to compel shall have seven days to answer. Answers § 3001.28 Requests for admissions for will be considered supplements to the purpose of discovery. arguments presented in the initial ob- (a) Service and content. In the interest jection. of expedition, any participant may (e) Compelled answers. Upon motion of serve upon any other participant a any participant to the proceeding the written request for the admission, for Commission or the presiding officer purposes of the pending proceeding may compel answers to a request for only, of any relevant, unprivileged admissions to which an objection has facts, including the genuineness of any been raised if the objection is found not documents or exhibits to be presented to be valid. Such compelled answers in the hearing. The participant re- shall be filed with the Commission in questing the admission shall file its re- conformance with §§ 3001.9 through quest with the Commission in conform- 3001.12 within seven days of the date of ance with §§ 3001.9 through 3001.12. the order compelling production or (b) Answers. Each matter of which an within such other period as may be admission is requested shall be sepa- fixed by the Commission or the pre- rately set forth and is admitted unless siding officer, but before the conclu- within 14 days after the request is filed, or within such other period as may be sion of the hearing. If the Commission fixed by the Commission or presiding or presiding officer determines that an officer, the participant to whom the re- answer does not comply with the request is directed files a written answer quirements of this rule, it may order or objection pursuant to paragraph (c) either that the matter is admitted or of this section. A participant who an- that an amended answer be filed. swers a request for admission shall file [65 FR 6542, Feb. 10, 2000, as amended at 67 its answer with the Commission in con- FR 67562, Nov. 6, 2002] formance with §§ 3001.9 through 3001.12. (c) Objections. In the interest of expe- § 3001.29 Settlement conferences. dition, the bases for objection shall be clearly and fully stated. If objection is Any participant in a proceeding may made to part of an item, the part shall submit offers of settlement or pro- be specified. A participant claiming posals of adjustment at any time and privilege shall identify the specific evi- may request a conference between the dentiary privilege asserted and state participants to consider such offers or the reasons for its applicability. A par- proposals. The Commission or the pre- ticipant claiming undue burden shall siding officer shall afford the partici- state with particularity the effort that pants appropriate opportunity prior to would be required to answer the re- or during the hearing for conferences quest, providing estimates of cost and for the purpose of considering such of- work hours required to the extent pos- fers or proposals as time, the nature of sible. Objections shall be filed with the the proceeding, and the public interest

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permit. Unaccepted offers of settle- pants and for the initial proponent to ment or adjustment and proposed stip- present surrebuttal evidence. New af- ulations not agreed to shall be privi- firmative matter (not in reply to an- leged and shall not be admissible in other participant’s direct case) should evidence against any participant not be included in rebuttal testimony claiming such privilege. or exhibits. When objections to the admission or exclusion of evidence before § 3001.30 Hearings. the Commission or the presiding officer (a) How initiated. Hearings for the are made, the grounds relied upon shall purpose of taking evidence shall be ini- be stated. Formal exceptions to rulings tiated by the issuance of a notice by are unnecessary. the Commission as provided in § 3001.19. (2) Written cross-examination. Written (b) Presiding officer. All hearings shall cross-examination will be utilized as a be held before the Commission sitting substitute for oral cross-examination en banc, or a duly designated presiding whenever possible, particularly to in- officer. troduce factual or statistical evidence. (c) Entering of appearances. The Com- Designations of written cross-examina- mission or the presiding officer before tion should be served in accordance whom the hearing is held will cause to with §§ 3001.9 through 3001.12 no later be entered on the record all appear- than three working days before the ances together with a notation showing scheduled appearance of a witness. Des- in whose behalf each such appearance ignations shall identify every item to has been made. be offered as evidence, listing the par- (d) Order of procedure. In public hear- ticipant who initially posed the dis- ings before the Commission, the Postal covery request, the witness and/or Service shall open and close in pro- party to whom the question was ad- ceedings which it has initiated under dressed (if different from the witness section 3661 of the Act, and a complain- answering), the number of the request ant shall open and close in proceedings and, if more than one answer is pro- on complaints filed under section 3662 vided, the dates of all answers to be in- of the Act and set for hearing pursuant cluded in the record. (For example, to § 3001.18(a). With respect to the order ‘‘PR–T1–17 to USPS witness Jones, an- of presentation of all other partici- swered by USPS witness Smith (March pants, and in all other proceedings, un- 1, 1997) as updated (March 21, 1997)).’’ less otherwise ordered by the Commis- When a participant designates written sion, the presiding officer shall direct cross-examination, two hard copies of the order of presentation of evidence the documents to be included shall si- and issue such other procedural orders multaneously be submitted to the Sec- as may be necessary to assure the or- retary of the Commission. The Sec- derly and expeditious conclusion of the retary of the Commission shall prepare hearing. for the record a packet containing all (e)(1) Presentations by participants. materials designated for written cross- Any participant shall have the right in examination in a format that facili- public hearings of presentation of evi- tates review by the witness and coun- dence, cross-examination (limited to sel. The witness will verify the answers testimony adverse to the participant and materials in the packet, and they conducting the cross-examination), ob- will be entered into the transcript by jection, motion, and argument. The the presiding officer. Counsel may ob- case-in-chief of participants other than ject to written cross-examination at the proponent shall be in writing and that time, and any designated answers shall include the participant’s direct or materials ruled objectionable will be case and rebuttal, if any, to the initial stricken from the record. proponent’s case-in-chief. It may be ac- (3) Oral cross-examination. Oral cross- companied by a trial brief or legal examination will be permitted for memoranda. (Legal memoranda on clarifying written cross-examination matters at issue will be welcome at and for testing assumptions, conclu- any stage of the proceeding.) There will sions or other opinion evidence. No- be an opportunity for participants to tices of intent to conduct oral cross-ex- rebut presentations of other partici- amination should be filed three or

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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 amination of witnesses for that partici- a part of his/her intermediate decision. pant should be delivered to counsel for This section shall not preclude a pre- that participant and served three or siding officer, within his/her discretion, more working days before the an- from referring any motion made in nounced appearance of the witness, and hearing to the Commission for ulti- cross-examination exhibits should be mate determination. delivered to counsel for the witness at (i) Transcript corrections. Corrections least two calendar days (including one to the transcript of a hearing should working day) before the scheduled ap- not be requested except to correct a pearance of the witness. material substantive error in the tran- (f) Limitations on presentation of the scription made at the hearing. evidence. The taking of evidence shall [36 FR 396, Jan. 12, 1971, as amended at 60 FR proceed with all reasonable diligence 12116, Mar. 6, 1995; 65 FR 6543, Feb. 10, 2000; 67 and dispatch, and to that end, the Com- FR 67563, Nov. 6, 2002; 78 FR 36439, June 18, mission or the presiding officer may 2013] limit appropriately (1) the number of witnesses to be heard upon any issue, § 3001.31 Evidence. (2) the examination by any participant (a) Form and admissibility. In any pub- to specific issues, and (3) the cross-ex- lic hearing before the Commission, or a amination of a witness to that required presiding officer, relevant and material for a full and true disclosure of the evidence which is not unduly repeti- facts necessary for the disposition of tious or cumulative shall be admis- the proceeding and to avoid irrelevant, sible. Witnesses whose testimony is to immaterial, or unduly repetitious tes- be taken shall be sworn, or shall af- timony. firm, before their testimony shall be (g) Motions during hearing. After a deemed evidence in the proceeding or hearing has commenced in a pro- any questions are put to them. ceeding, a request may be made by mo- (b) Documentary material—(1) General. tion to the presiding officer for any Documents and detailed data and infor- procedural ruling or relief desired. mation shall be presented as exhibits. Such motions shall set forth the ruling Exhibits should be self-explanatory. or relief sought, and state the grounds They should contain appropriate foot- therefor and statutory or other sup- notes or narrative explaining the porting authority. Motions made dur- source of each item of information ing hearings may be stated orally upon used and the methods employed in sta- the record, except that the presiding tistical compilations. The principal officer may require that such motions title of each exhibit should state what

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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 ument containing other matter not vouching for or sponsoring the mate- material or relevant or not intended to rial provided); Category 6—All Other be put in evidence, the participant of- Material (consisting of library ref- fering the same shall plainly designate erences not fitting any of the other the matter offered excluding the imma- categories). terial or irrelevant parts. If other mat- (ii) The practice of filing a library ter in such document is in such bulk or reference is authorized primarily as a extent as would unnecessarily encum- convenience to filing participants and ber the record, it may be marked for the Commission under certain cir- identification, and, if properly authen- cumstances. These include when the ticated, the relevant and material physical characteristics of the mate- parts may be read into the record, or, if rial, such as number of pages, bulk, or the Commission or presiding officer so format, are reasonably likely to render directs, a true copy of such matter in compliance with the service require- proper form shall be received in evi- ments unduly burdensome; and one of dence as an exhibit. Copies of docu- the following considerations apply: ments shall be delivered by the partici- (A) Interest in the material or things pant offering the same to the other so labeled is likely to be so limited participants or their attorneys appear- that service on the entire list would be ing at the hearing, who shall be af- unreasonably burdensome, and the par- forded an opportunity to examine the ticipant agrees to serve the material entire document and to offer in evi- on individual participants upon request dence in like manner other material within three days of a request, or to and relevant portions thereof. provide, within the same period, an ex- (2) Library references. (i) The term planation of why the material cannot ‘‘library reference’’ is a generic term or be provided within three days, and to label that participants and others may undertake reasonable efforts to use to identify or designate certain promptly provide the material; or documents or things (‘‘material’’) filed (B) The participant satisfactorily with the Commission’s docket section. demonstrates that designation of mate- To the extent possible, material filed rial as a library reference is appro- as a library reference shall be identi- priate because the material constitutes fied and referred to by participants in a secondary source. A secondary source terms of the following categories: Cat- is one that provides background for a egory 1—Reporting Systems Material position or matter referred to else- (consisting of library references relat- where in a participant’s case or filing,

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but does not constitute essential sup- reference relates, to the extent prac- port and is unlikely to be a material ticable; factor in a decision on the merits of (F) Identify other library references issues in the proceeding; or or testimony relied upon or referred to (C) Reference to, identification of, or in the designated material, to the ex- use of the material would be facilitated tent practicable; if it is filed as a library reference; or (G) Indicate whether the library ref- (D) The material is filed in compli- erence is an update or revision to an- ance with a discovery request for pro- other library reference and, if it is, duction of documents or things. clearly identify the predecessor mate- (iii) Other circumstances. If a partici- rial. pant considers it appropriate to file (H) To the extent feasible, identify material as a library reference because portions expected to be entered into its physical characteristics render the record and the expected sponsor (if service unduly burdensome, but cannot the participant filing a library ref- satisfy the terms set out in paragraphs erence anticipates seeking, on its own (b)(2)(ii)(A) through (D) of this section, behalf, to enter all or part of the mate- the material may be filed (by means of rial contained therein into the evi- a notice) subject to the following con- dentiary record). ditions: (v) Labeling. Material filed as a li- (A) Inclusion in the accompanying brary reference shall be labeled in a notice of a detailed explanation of the manner consistent with standard Com- reason for filing the material under mission notation and any other condi- this provision; tions the presiding officer or Commis- (B) Satisfaction of all other applica- sion establishes. ble requirements relating to library (vi) Optional preface or summary. In- references; and clusion of a preface or summary in a li- (C) The Commission’s right to refuse brary reference addressing the matters acceptance of the material in its dock- set out in paragraphs (b)(2)(iv)(A) et room and its right to take other ac- through (H) of this section is encour- tion to ensure participants’ ability to aged but optional. obtain access to the material. (vii) Electronic version. Material filed (iv) Filing procedure. Participants fil- as a library reference shall also be ing material as a library reference made available in an electronic shall file contemporaneous written no- version, absent a showing of why an tice of this action in conformance with electronic version cannot be supplied §§ 3001.9 through 3001.12. The notice or should not be required to be sup- shall: plied. Participants are encouraged to (A) Set forth the reason(s) why the include in the electronic version the material is being designated as a li- information and disclosures required to brary reference, with specific reference be included in the accompanying no- to paragraphs (b)(2)(ii) and (iii) of this tice. section; (viii) Number of copies. Except for (B) Identify the category into which good cause shown, two hard copies of the material falls and describe in detail each library reference shall be filed. what the material consists of or rep- (ix) Special requests and motions seek- resents, noting matters such as the ing service. In situations other than presence of survey results; that covered in paragraph (b)(2)(ii)(A) (C) Explain in detail how the mate- of this section, special requests for rial relates to the participant’s case or service of material contained in a li- to issues in the proceeding; brary reference may be made by the (D) Identify authors or others mate- participant that filed the interrogatory rially contributing to substantive as- or inquiry that generated a response in pects of the preparation or develop- the form of a library reference. Service ment of the library reference; shall be made within a reasonable (E) Identify the documents (such as time. Others seeking service of the ma- testimony, exhibits, and an interrog- terial contained in a library reference atory) or request to which the library shall file a detailed motion setting

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forth the reasons why service is nec- must be made at least 6 days before the essary or appropriate. date for filing the participant’s direct (x) Waiver. Upon the filing of a mo- case. Oppositions to motions for des- tion showing good cause, the Commis- ignations and/or requests for counter- sion may waive one or more of the pro- designations shall be filed within 3 visions relating to library references. days. Oppositions to requests for Motions seeking waiver may request counter-designations are due within 2 expedited consideration and may seek days. waiver for categories of library ref- (3) In all other proceedings subject to erences. this section, these requests must, in (xi) Status of library references. Des- the absence of extraordinary cir- ignation of material as a library ref- cumstances, be made at least 28 days erence and acceptance in the Commis- before the date for filing the partici- sion’s docket section do not confer evi- pant’s direct case. Oppositions to mo- dentiary status. The evidentiary status tions for designations and/or requests of the material is governed by this sec- for counter-designations shall be filed tion. within 14 days. Oppositions to requests (c) Commission’s files. Except as other- for counter-designations are due within wise provided in § 3001.31(e), in case any 7 days. matter contained in a report or other (4) In all proceedings subject to this document on file with the Commission section, the moving participant must is offered in evidence, such report or submit two copies of the identified ma- other document need not be produced terial to the Secretary at the time re- or marked for identification, but may quests for designations and counter- be offered in evidence by specifying the designations are made. report, document, or other file con- (f) Form of prepared testimony and ex- taining the matter so offered. hibits. Unless the presiding officer oth- (d) Public document items. Whenever erwise directs, the direct testimony of there is offered in evidence (in whole or witnesses shall be reduced to writing in part) a public document, such as an and offered either as such or as an ex- official report, decision, opinion or hibit. All prepared testimony and ex- published scientific or economic statis- hibits of a documentary character tical data issued by any of the Execu- shall, so far as practicable, conform to tive Departments (or their subdivi- the requirements of § 3001.10(a) and (b). sions), legislative agencies or commit- (g) Copies to participants. Except as tees, or administrative agencies of the otherwise provided in these rules, cop- Federal Government (including Gov- ies of prepared testimony and exhibits ernment-owned corporations) and such shall be furnished to the presiding offi- document (or part thereof) has been cer and to the participants or counsel, shown by the offeror thereof to be rea- unless the presiding officer otherwise sonably available to the public, such directs. In addition, unless otherwise document need not be produced or directed by the presiding officer, eight physically marked for identification, copies of all prepared testimony and but may be offered in evidence as a exhibits shall be furnished for the use public document item by clearly iden- of the Commission. tifying the document and the relevant (h) Reception and ruling. The pre- parts thereof. siding officer shall rule on the admissi- (e) Designation of evidence from other bility of evidence and otherwise con- Commission dockets. (1) Participants trol the reception of evidence so as to may request that evidence received in confine it to the issues in the pro- other Commission proceedings be en- ceeding. tered into the record of the current (i) Offers of proof. Any offer of proof proceeding. These requests shall be made in connection with any ruling of made by motion, shall explain the pur- the presiding officer rejecting or expose of the designation, and shall iden- cluding proffered oral testimony shall tify material by page and line or para- consist of a statement of the substance graph number. of the evidence which counsel contends (2) In proceedings conducted under would be adduced by such testimony; subpart D of this part, these requests and if the excluded evidence consists of

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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 data sources; knowledge of the Commission as an ex- (5) An assessment of the effects of ed- pert body. Any participant shall, on iting and imputation; timely request, be afforded an oppor- (6) Identification of applicable statis- tunity to show the contrary. tical models, when model-based proce- (k) Introduction and reliance upon dures are employed; and studies and analyses—(1) General. In the (7) An explanation of all statistical case of all studies and analyses offered tests performed and an appropriate set in evidence in hearing proceedings or of summary statistics summarizing the relied upon as support for other evi- results of each test. dence, other than the kinds described (ii) Other sample surveys. (a) A clear in paragraphs (k) (2) and (3) of this sec- description of the survey design, in- tion, there shall be a clear statement cluding the definition of the universe of the study plan, all relevant assump- under study, the sampling frame and tions and a description of the tech- units, and the validity and confidence niques of data collection, estimation limits than can be placed on major es- and/or testing. In addition, there shall timates; and be a clear statement of the facts and (b) An explanation of the method of judgments upon which conclusions are selecting the sample and the character- based, together with an indication of istics measured or counted. the alternative courses of action con- (iii) Experimental analyses. (a) A com- sidered. Tabulations of input data shall plete description of the experimental be made available upon request at the design, including a specification of the offices of the Commission. controlled conditions and how the con- (2) Statistical studies. All statistical trols were realized; studies offered in evidence in hearing (b) A complete description of the proceedings or relied upon as support methods of making observations and for other evidence shall include a com- the adjustments, if any, to observed prehensive description of the assump- data. tions made, the study plan utilized and (iv) Econometric Studies. (a) A presen- the procedures undertaken. Where a tation of the economic theory under- computer analysis is employed to ob- lying the study; tain the result of a statistical study, (b) A complete description of the all of the submissions required by econometric model(s) and the reasons § 3001.31(k)(3) shall be furnished, upon for each major assumption and speci- request. In addition, for each of the fol- fication; lowing types of statistical studies, the (c) The definition of the variables se- indicated information should be fur- lected and the justification for their nished: selection; (i) Market research. (a) The following (d) For any alternative model whose data and information shall be provided: computed econometric results influ- (1) A clear and detailed description of enced the choice of the preferred the sample, observational, and data model, a statement of the reasons for preparation designs, including defini- rejecting that alternative, an identi- tions of the target population, sam- fication of any differences between pling frame, units of analysis, and sur- that alternative and the preferred vey variables; model with respect to variable defini- (2) An explanation of methodology tions, equation forms, data, or esti- for the production and analysis of the mation methods, and, upon request,

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the computed econometric results for tion as to why such codes cannot be so that alternative; furnished) and such description shall be (e) A reference to a detailed descrip- furnished in all cases. For the purpose tion in a text, manual, or technical of completing such foundation, the fol- journal for every econometric tech- lowing additional items shall be nique used in the estimation process deemed presumptively necessary and and the reasons for selecting the tech- shall be furnished upon request of a nique, or, in the alternative, a descrip- participant, the Commission, or the tion and analysis of the technique that presiding officer, unless the presump- is sufficient for a technical evaluation; tion is overcome by an affirmative (f) Summary descriptions and source showing. citations for all input data and, upon (a) For all input data, designations of request, a complete listing of the data. all sources of such data, and expla- Complete descriptions of any alter- nations of any modifications to such ations or transformations made to the data made for use in the program; data as received from the original 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 (v) All other studies involving statistical necessary to illustrate the response se- ( ) The formula used for methodology. a quence. statistical estimates; (i) An expert on the design and oper- (b) The standard errors of each component estimated; ation of the program shall be provided (c) Test statistics and the description at a technical conference to respond to of statistical tests and all related com- any oral or written questions con- putations, and final results; and cerning information that is reasonably (d) Summary descriptions of input necessary to enable independent rep- data, and upon request the actual input lication of the program output. Ma- data shall be made available at the of- chine-readable data files and program fices of the Commission. files shall be provided in the form of a (3) Computer analyses. (i) In the case compact disk or other media or method of computer studies or analyses which approved in advance by the Office of are being offered in evidence, or relied Secretary and Administration of the upon as support for other evidence, a Postal Regulatory Commission. Any foundation for the reception of such machine-readable data file or program materials must be laid by furnishing a file so provided must be identified and general description of the program that described in accompanying hardcopy includes the objectives of the program, documentation. In addition, files in the processing tasks performed, the text format must be accompanied by methods and procedures employed, and hardcopy instructions for printing a listing of the input and output data them. Files in machine code must be and source codes (or a showing pursu- accompanied by hardcopy instructions ant to paragraph (k)(3)(iii) of this sec- for executing them.

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(j) Computer simulation models of- immediately notify the requestor and fered in evidence or relied upon as sup- the Presiding Officer. If valid, the Pre- port for other evidence, shall be bound siding Officer shall devise means of ac- by all applicable provisions of para- commodating such rights. Such means graph (k)(3) of this section and the sep- may include protective orders, includ- arate requirements of paragraph (k)(2) ing access under protective conditions of this section, to the extent that por- to the computer facilities of the recipi- tions of the simulation model utilize or ent of a request, making material rely upon such studies. Information available for inspection, compensation, that compares the simulation model or other procedures, according to the output results to the actual phe- nature of the right affected by compli- nomena being modelled, using data ance with this paragraph (k)(3) of this other than those from which the model section. If the Presiding Officer deter- was developed, shall be separately mines that compensation is necessary identified and submitted as evidence to accommodate the affected right, the supporting the test and validation of cost of compensation shall be borne in the simulation model. Separate state- the same manner that paragraph ments concerning the model limita- (k)(3)(iii) of this section prescribes for tions, including limiting model design bearing the costs referenced there. If assumptions and range of data input such right cannot be accommodated by utilized in model design, shall be pro- reasonable compensation, or by protec- vided. Where test and validation of the tive orders or other procedures, and, as entire simulation model are not pos- a result, materials required by this sible, test and validation information paragraph (k)(3) of this section cannot shall be provided for disaggregate por- be provided, the Presiding Officer shall tions of the model. If disaggregate test- determine, in his/her discretion, wheth- ing and validation are not possible, er evidence that relies upon the mate- separate statements to that effect and rials not provided shall be admissible statements regarding operational ex- or afforded limited weight. perts’ review of model validity shall be (4) Expedition. The offeror shall expe- provided. dite responses to requests made pursu- (ii) Upon timely and otherwise proper ant to this section. Responses shall be request of a participant, or sua sponte, served on the requesting party, and no- the Commission or the Presiding Offi- tice thereof filed with the Secretary in cer may rule that matters other than accordance with the provisions of those listed in paragraphs (k)(3)(i) (a) § 3001.12 no later than 3 days after a re- through (h) of this section are nec- quest is made under paragraph (e)(2) of essary to establish the foundation for this section or no later than 14 days reception of the evidence concerned after a request is made under paragraph (e)(3) of this section. and must be furnished. (iii) When the requestor is other than [36 FR 396, Jan. 12, 1971, as amended at 45 FR the Commission or the Presiding Offi- 65580, Oct. 3, 1980; 47 FR 12796, Mar. 25, 1982; cer, the cost of producing the material 50 FR 43392, Oct. 25, 1985; 51 FR 8827, Mar. 14, required in paragraph (k)(3)(i) (d), (f), 1986; 51 FR 14992, Apr. 22, 1986; 54 FR 35494, Aug. 28, 1989; 58 FR 38976, July 21, 1993; 62 FR and (g)of this section, shall be borne by 45729, Aug. 29, 1997; 64 FR 67490, Dec. 2, 1999; the requesting party unless otherwise 65 FR 6543, Feb. 10, 2000; 67 FR 67563, Nov. 6, ordered, for good cause shown by the 2002; 78 FR 36439, June 18, 2013; 79 FR 33407, requestor. When the Commission or the June 10, 2014] Presiding Officer is the requestor, it may assume or equitably allocate such § 3001.31a In camera orders. costs for good cause shown by the (a) Definition. Except as hereinafter requestee. provided, documents and testimony (iv) If the recipient of a request for made subject to in camera orders are materials pursuant to this paragraph not made a part of the public record, (k)(3) of this section asserts that com- but are kept confidential, and only au- pliance with the request would conflict thorized parties, their counsel, author- with patent, copyright, trade secret or ized Commission personnel, and court contract rights applicable to the re- personnel concerned with judicial requested material, the recipient shall view shall have access thereto. The

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right of the presiding officer, the Com- briefs, or other papers, counsel for all mission, and reviewing courts to dis- parties shall make a good faith at- close in camera data to the extent nec- tempt to refrain from disclosing the essary for the proper disposition of the specific details of in camera documents proceeding is specifically reserved. and testimony. This shall not preclude (b) In camera treatment of documents references in such proposed findings, and testimony. Presiding officers shall briefs, or other papers to such docu- have authority, but only in those un- ments or testimony including general- usual and exceptional circumstances ized statements based on their con- when good cause is found on the record, tents. To the extent that counsel con- to order documents or oral testimony sider it necessary to include specific offered in evidence whether admitted details of in camera data in their pres- or rejected, to be placed in camera. The entations, such data shall be incor- order shall specify the date on which in porated in separate proposed findings, camera treatment expires and shall in- briefs, or other papers marked ‘‘conclude: (1) A description of the docu- fidential,’’ which shall be placed in ments and testimony; (2) a full state- camera and become a part of the in cam- ment of the reasons for granting in era record. camera treatment; and (3) a full statement 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; 78 FR 36439, June 18, 2013] presentation of the case, to disclose in § 3001.32 Appeals from rulings of the camera documents or testimony to ex- presiding officer. perts, consultants, prospective witnesses, 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), the proceeding, the notation ‘‘In Cam- rulings of the presiding officer may be era Record under § 3001.31a,’’ and the appealed when the presiding officer date on which in camera treatment ex- certifies in writing that an interlocu- pires. tory appeal is warranted. The presiding (c) Release of in camera information. In officer shall not certify an appeal un- camera documents and testimony shall less the officer finds that (i) the ruling constitute a part of the confidential involves an important question of law records of the Commission. However, or policy concerning which there is the Commission, on its own motion or substantial ground for difference of pursuant to a request, may make in opinion and (ii) an immediate appeal camera documents and testimony avail- from the ruling will materially ad- able for inspection, copying, or use by vance the ultimate termination of the any other governmental agency. The proceeding or subsequent review will be Commission shall, in such cir- an inadequate remedy. cumstances, give reasonable notice of (2) A request for the presiding officer the impending disclosure to the af- to certify an appeal shall be made fected party. However, such notice may within 5 days after the presiding offi- be waived in extraordinary cir- cer’s ruling has been issued. The re- cumstances for good cause. quest shall set forth with specificity (d) Briefing of in camera information. the reasons that a participant believes In the submittal of proposed findings, that an appeal meets the criteria of

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paragraphs (b)(1) (i) and (ii) of this sec- of the appeal in that order or at a later tion. Such requests shall also state in time. detail the legal, policy, and factual ar- (e) Effect of appeals. Unless the pre- guments supporting the participant’s siding officer or the Commission so or- position that the ruling should be ders, the certification of an appeal or modified. If the appeal is from a ruling the filing of an application for review rejecting or excluding evidence, such shall not stay the proceeding or the ef- request shall include a statement of fectiveness of any ruling. the substance of the evidence which (f) Review at conclusion of proceeding. the participant contends would be ad- If an interlocutory appeal is not cer- duced by the excluded evidence and the tified pursuant to paragraph (b)(1) of conclusions intended to be derived this section, objection to the ruling therefrom. may be raised on review of the pre- (3) The presiding officer may request siding officer’s intermediate decision, responsive pleadings from other par- or, if the intermediate decision is omit- ticipants prior to ruling upon the re- ted, in the participants’ briefs in ac- quest to certify an appeal. cordance with § 3001.34. (c) Appeals not certified by the pre- (g) Form, filing, and service of docu- siding officer. If the presiding officer de- ments. Requests for certification, appli- clines to certify an appeal, a partici- cations for review, and any responses pant who has requested certification shall be in writing and shall be in con- may apply to the Commission for re- formity with §§ 3001.10 and 3001.11. They view within 10 days. Unless the Com- shall be filed and served pursuant to mission directs otherwise, its review of §§ 3001.9 and 3001.12. the application will be based on the record and pleadings filed before the [38 FR 4328, Feb. 13, 1973, as amended at 42 presiding officer pursuant to paragraph FR 8143, Feb. 9, 1977; 51 FR 8827, Mar. 14, 1986; (b) of this section. 78 FR 36439, June 18, 2013] (d) Action by the Commission. (1) The § 3001.33 Depositions. Commission may dismiss an appeal certified by the presiding officer if it (a) When permissible. The testimony determines that (i) the objection to the of a witness may be taken by deposi- ruling should be deferred until the tion upon authorization by the Com- Commission’s consideration of the en- mission or the presiding officer on ap- tire proceeding or (ii) interlocutory re- plication of any participant before the view is otherwise not warranted or ap- hearing is closed. An authorization to propriate under the circumstances. take the deposition of a witness will be (2) Where the presiding officer has de- issued only if (1) the person whose dep- clined to certify an appeal, the Com- osition is to be taken would be unavail- mission will not allow an application able at the hearing, or (2) the deposi- for review unless it determines (i) that tion is deemed necessary to perpetuate the presiding officer should have cer- the testimony of the witness, or (3) the tified the matter, (ii) that extraor- taking of the deposition is necessary to dinary circumstances exist, and (iii) prevent undue and excessive expense to that prompt Commission decision is a participant and will not result in necessary to prevent grave detriment undue delay or an undue burden to to the public interest. other participants. (3) The Commission may issue an (b) Application. An application for au- order accepting an interlocutory ap- thorization to take testimony by depo- peal within 15 days after the presiding sition shall be filed in duplicate with officer certifies the appeal or a partici- the Commission or the presiding officer pant files an application for review. If and shall state (1) the name, identifica- the Commission fails to issue such an tion, and post office address of the wit- order, leave to appeal from the pre- ness, (2) the subject matter of the testi- siding officer’s interlocutory ruling mony, (3) the time and place of taking shall be deemed to be denied. If the the deposition, (4) the name, identifica- Commission issues an order accepting tion, and post office address of the offi- an appeal, it may rule upon the merits cer before whom the deposition is to be

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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 with the number of copies required by the timely issuance of the decision or the authorization to be made by such advisory opinion. In addition, subject officer, shall be forwarded by the offi- to such consideration, due regard shall cer to the Secretary by personal deliv- be given to the nature of the pro- ery or registered mail. Upon receipt ceeding, the complexity and impor- the Secretary shall hold the original tance of the issues involved, and the for use in the hearing upon request by magnitude of the record. In cases sub- any participant and shall make copies ject to a limitation on the time avail- available for public inspection. able to the Commission for decision, (f) Scope and conduct of examination. the Commission shall generally direct Unless otherwise directed in the au- that each participant shall file a single thorization, the witness may be ques- brief at the same time. In cases where, tioned regarding any matter which is because of the nature of the issues and relevant to the issues involved in the the record or the limited number of proceeding. Participants shall have the participants involved, the filing of ini- right of cross-examination and objec- tial and reply briefs, or the filing of

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initial, answering, and reply briefs, will § 3001.35 Proposed findings and con- not unduly delay the conclusion of the clusions. proceeding and will aid in the proper The Commission or the presiding of- disposition of the proceeding, the par- ficer may direct the filing of proposed ticipants may be directed to file more findings and conclusions with a brief than one brief and at different times statement of the supporting reasons for rather than a single brief at the same each proposed finding and conclusion. time. The presiding officer or the Com- mission may also order the filing of [38 FR 4329, Feb. 13, 1973; 51 FR 8827, Mar. 14, 1986] briefs during the course of the proceeding. § 3001.36 Oral argument before the (b) Contents. Each brief filed with the presiding officer. Commission shall be as concise as pos- In any case in which the presiding of- sible, within any page limitation speci- ficer is to issue an intermediate deci- fied by the Commission or the pre- sion, such officer may permit the pres- siding officer, and shall include the fol- entation of oral argument when, in his/ lowing in the order indicated: her opinion, time permits, and the na- (1) A subject index with page ref- ture of the proceedings, the complexity erences, and a list of all cases and au- or importance of the issues of fact or thorities relied upon, arranged alpha- law involved, and the public interest betically, with references to the pages warrants hearing such argument. The where the citation appears; presiding officer shall determine the (2) A concise statement of the case time and place for oral argument, and from the viewpoint of the filing partic- may specify the issue or issues on ipant; which oral argument is to be presented, (3) A clear, concise and definitive the order in which the presentations statement of the position of the filing shall be made, and the amount of time participant as to the proposals of the allowed each participant. A request for Postal Service and the advisory opin- oral argument before the issuance of an ion or decision to be issued; intermediate decision shall be made (4) A discussion of the evidence, rea- during the course of the hearing on the sons, and authorities relied upon with record. exact references to the record and the [78 FR 36440, June 18, 2013] authorities; and (5) Proposed findings and conclusions § 3001.37 Oral argument before the with appropriate references to the Commission. record or the prior discussion of the (a) When ordered. In any proceeding evidence and authorities relied upon. before the Commission for decision, the (c) Incorporation by references. Briefs Commission, upon the request of any before the Commission or a presiding participant or on its own initiative, officer shall be completely self-con- may order oral argument when, in the tained and shall not incorporate by ref- Commission’s discretion, time permits, erence any portion of any other brief, and the nature of the proceedings, the pleading or document. complexity or importance of the issues (d) Excerpts from the record. Testi- of fact or law involved, and public in- mony and exhibits shall not be quoted terest warrants such argument. or included in briefs except for short (b) How requested. Any participant in excerpts pertinent to the argument a proceeding before the Commission for decision may request oral argument be- presented. fore the Commission by filing a timely (e) Filing and service. Briefs shall be motion pursuant to § 3001.21. In a pro- filed in the form and manner and ceeding before the Commission on ex- served as required by §§ 3001.9 to 3001.12. ceptions to an intermediate decision, [36 FR 396, Jan. 12, 1971, as amended at 38 FR such motion shall be filed no later than 4328, Feb. 13, 1973; 51 FR 8827, Mar. 14, 1986; 78 the date for the filing of briefs on ex- FR 36439, June 18, 2013] ceptions. Motions requesting oral argument may be included in briefs or

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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 Commission, oral argument shall be sioner or hearing officer has presided limited to matters properly raised on at the reception of evidence, such pre- the record and in the briefs before the siding officer, as soon as practicable Commission. after the conclusion of the hearing and (d) Use of documents at oral argument. the filing of briefs, shall certify and Charts, graphs, maps, tables and other file with the Secretary, a copy of the written material may be presented to record of the hearing and his/her initial the Commission at oral argument only decision on the matters and issues pre- if limited to facts in the record of the sented for decision in such proceeding. case being argued and if copies of such (b) Tentative decision. Prior to the documents are filed with the Secretary issuance of an initial decision by the and served on all parties at least 7 days presiding officer, the Commission, with in advance of the argument. Enlarge- notice to the participants or by order ments of such charts, graphs, maps and in specific cases or by general rule for tables may be used at the argument a class of cases, may direct the certifi- provided copies are filed and served as cation of the record to the Commission required by this paragraph. for the purpose of the issuance of a ten- § 3001.38 Omission of intermediate de- tative decision. In such cases, the Com- cisions. mission may issue a tentative decision or require that the presiding officer or (a) Basis of omission. In any pro- any designated responsible officer of ceeding noticed pursuant to § 3001.17, the Commission, on the motion of any the Commission recommend a decision. participant or on its own initiative, (c) Contents. All intermediate deci- may direct the certification of the sions shall include findings and conclu- record to the Commission and omit any sions, and the reasons or basis therefor, intermediate decision upon a finding on all the material issues of fact, law, on the record that due and timely exe- or discretion presented on the record, cution of its functions imperatively and the appropriate intermediate deci- and unavoidably so requires. In pro- sion pursuant to the Act. An inter- ceedings in which all participants con- mediate decision in a proceeding under cur in a request by any participant section 3661 of the Act shall include a that any intermediate decision be determination of the question of omitted, the Commission shall direct whether or not the proposed change in the certification of the record to the the nature of postal service conforms Commission and forthwith render a to the policies established under the final decision unless the Commission Act. denies such request within 10 days next (d) Service and Commission review. All following its filing or referral by the intermediate decisions shall be part of presiding officer. the record, shall be served on the par- (b) Requests for omission. Requests for ticipants to the proceeding by the Sec- omission of the intermediate decision retary pursuant to § 3001.12 and shall be in any proceeding shall be made by mo- subject to review by the Commission tion pursuant to § 3001.21 or made orally on the record before the presiding of- on its own initiative, or the filing of ficer who shall promptly refer the same exceptions by the participants pursu- to the Commission. Such requests shall ant to § 3001.40. specify (1) the concurrence of other

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(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 recommended decision or will itself issued brief on exceptions of another partici- a tentative decision, as the Commis- pant to which reference is made. sion may deem appropriate. (c) Failure to except results in waiver. (f) Effect of intermediate decision. Un- Any participant who fails to except or less briefs on exceptions are filed to an object to any part of an intermediate intermediate decision pursuant to decision in its brief on exceptions may § 3001.40 or unless the Commission not thereafter raise such exceptions or issues an order to review an inter- objections which shall be deemed to mediate decision on its own initiative, have been waived. the intermediate decision shall become the final action of the Commission [36 FR 396, Jan. 12, 1971, as amended at 38 FR after 30 days from the date of issuance 4329, Feb. 13, 1973; 78 FR 36440, June 18, 2013] thereof. If briefs on exceptions are § 3001.41 Rulemaking proceedings. timely filed or the Commission initiates 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 any such proposed rulemaking, the [36 FR 396, Jan. 12, 1971, as amended at 58 FR 38976, July 21, 1993; 78 FR 36440, June 18, 2013] Commission will cause general notice to be given by publication in the FED- § 3001.40 Exceptions to intermediate ERAL REGISTER, such notice to be pub- decisions. lished therein not less than 30 days (a) Briefs on exceptions and opposing prior to the date fixed for the consider- exceptions. Any participant in a pro- ation of the adoption of a proposed rule ceeding may file exceptions to any in- or rules or for the commencement of termediate decision by filing a brief on the hearing, if any, on the proposed exceptions with the Commission within rulemaking, except where a shorter pe- 30 days after the date of issuance of the riod is reasonable and good cause exists intermediate decision or such other therefor. However, where the Commis- time as may be fixed by the Commis- sion, for good cause, finds it impracti- sion. Any participant to a proceeding cable, unnecessary, or contrary to the may file a response to briefs on excep- public interest to give such notice, it tions within 20 days after the time lim- may proceed with the adoption of rules ited for the filing of briefs on excep- without notice by incorporating there- tions or such other time as may be in a finding to such effect and a concise fixed by the Commission. No further statement of the reasons therefor. Ad- response will be entertained unless the Commission, upon motion for good vance notice shall not be required for cause shown or on its own initiative, so rules subject to 5 U.S.C. 553(d). orders. (b) Contents of notice. The notice shall (b) Filing and contents. Briefs on ex- include (1) a statement of the time, ceptions and briefs opposing exceptions place and nature of the public rule- shall be filed in accordance with making proceedings; (2) reference to § 3001.34. In briefs on exceptions, the the legal authority under which the discussion of evidence, reasons and au- rule is proposed; and (3) either the thorities shall be specifically directed terms or substance of the proposed rule to the findings, conclusions and rec- or a description of the subjects and ommendations in the intermediate de- issues involved.

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(c) Participation. After notice given as attempting to observe, or to record or provided in paragraph (a) of this sec- photograph, the Commission meeting. tion, the Commission shall give inter- (b) Physical arrangements for open ested persons an opportunity to par- meetings. The Secretary shall be re- ticipate in the rulemaking through sponsible for seeing that ample space, submission of written data, views, or sufficient visibility, and adequate arguments with or without opportunity acoustics are provided for public obser- for oral presentation. vation of the Commission meetings. (d) General statement as to basis and (c) Closed Commission meetings. Except purpose. After consideration of the rel- in a case where the Commission finds evant matter presented, the Commis- that the public interest requires other- sion shall incorporate in the rules wise, the second sentence of paragraph adopted a concise general statement of (a) shall not apply to any portion of a their basis and purpose. Commission meeting, and the require- (e) Exceptions. Except when notice or ments of paragraphs (d) and (e) shall hearing is required by statute, the not apply to any information per- Commission may issue at any time taining to such meeting otherwise re- rules of organization, procedure or quired by this section to be disclosed to practice, or interpretive rules, or state- the public, where the Commission prop- ments of policy, without notice or pub- erly determines that such portion or lic procedure, and this section is not to portions of its meetings or the disclo- be construed as applicable to the ex- sure of such information is likely to tent that there may be involved any (1) Disclose matters that are (i) spe- military, naval or foreign affairs func- cifically authorized under criteria es- tion of the United States, or any mat- tablished by an Executive order to be ter relating to the Commission’s man- kept secret in the interests of national defense or foreign policy and (ii) in fact agement or personnel, or to U.S. prop- properly classified pursuant to such erty, loans, grants, benefits, or con- Executive order; tracts. (2) Relate solely to the internal per- [36 FR 396, Jan. 12, 1971, as amended at 38 FR sonnel rules and practices of the Com- 4329, Feb. 13, 1973; 78 FR 36440, June 18, 2013] mission; (3) Disclose matters specifically ex- § 3001.42 [Reserved] empted from disclosure by statute (other than section 552 of title 5), pro- § 3001.43 Public attendance at Com- vided that such statute (i) requires mission meetings. that the matter be withheld from the (a) Open Commission meetings. (1) public in such a manner as to leave no Commissioners shall not jointly con- discretion on the issue, or (ii) estab- duct or dispose of agency business lishes particular criteria for with- other than in accordance with this sec- holding or refers to particular types of tion. Except as provided in paragraph matters to be withheld; (c) of this section, every portion of (4) Disclose trade secrets and com- every meeting of the Commission shall mercial or financial information ob- be open to public observation. 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 pro- information which is proposed to be ceedings, (ii) deprive a person of a right withheld under paragraph (c) of this to a fair trial or an impartial adjudica- section. A single vote may be taken tion, (iii) constitute an unwarranted with respect to a series of meetings, a invasion of personal privacy, (iv) dis- portion or portions of which are pro- close the identity of a confidential posed to be closed to the public, or source and, in the case of a record com- with respect to any information con- piled by a criminal law enforcement cerning such series of meetings, so long authority in the course of a criminal as each meeting in such series involves investigation, or by an agency con- the same particular matters and is ducting a lawful national security in- scheduled to be held no more than 30 telligence investigation, confidential days after the initial meeting in such information furnished only by the con- series. The vote of each Commissioner fidential source, (v) disclose investiga- participating in such vote shall be re- tive techniques and procedures, or (vi) corded and no proxies shall be allowed. endanger the life or physical safety of (2) Whenever any person whose inter- law enforcement personnel; ests may be directly affected by a por- (8) Disclose information contained in tion of a meeting requests that the or related to examination, operating, Commission close such portion to the or condition reports prepared by, on be- public for any of the reasons referred half of, or for the use of an agency re- to in paragraph (c) (5), (6), or (7) of this sponsible for the regulation or super- section, the Commission upon request vision of financial institutions; of any one of its members, shall vote (9) Disclose information the pre- by recorded vote whether to close such mature disclosure of which would be meeting. likely to significantly frustrate imple- (3) Within 1 day of any vote taken mentation of a proposed Commission pursuant to paragraph (d)(1) or (2) of action, except that paragraph (c)(9) this section, the Commission shall shall not apply in any instance where make publicly available a written copy the Commission has already disclosed of such vote reflecting the vote of each to the public the content or nature of member on the question. If a portion of its proposed action, or where the Com- a meeting is to be closed to the public, mission is required by law to make the Commission shall, within 1 day of such disclosure on its own initiative the vote taken pursuant to paragraph prior to taking final Commission ac- (d)(1) or (2) of this section, make pub- tion on such proposal; or licly available a full written expla- (10) Specifically concern the Commis- nation of its action closing the portion sion’s issuance of a subpoena or the together with a list of all persons ex- Commission’s participation in a civil pected to attend the meeting and their action or appellate proceeding, an ac- affiliation. tion in a foreign court or international (4) Any person may protest a Com- tribunal, or an arbitration, or the initi- mission decision to hold a closed meet- ation, conduct or disposition by the ing under paragraph (d)(1) or (2) of this Commission of a particular case of for- section by filing a motion to open the mal Commission adjudication pursuant meeting. Such motion shall be ad- to the procedures in section 554 of title dressed to the Commission and shall 5 or otherwise involving a determina- set forth with particularity the statu- tion on the record after opportunity for tory or other authority relied upon, a hearing. the reasons for which the movant be- (d) Procedures for closing meetings. (1) lieves the meeting should not be Action under paragraph (c) of this sec- closed, and the reasons for which the tion shall be taken only when three movant believes that the public inter- Commissioners vote to take such ac- est requires the meeting to be open. tion. A separate vote of the Commis- Such motion shall be filed with the sioners shall be taken with respect to Secretary no later than 24 hours prior each agency meeting a portion or por- to the time for which the closed meet- tions of which are proposed to be closed ing is scheduled. to the public pursuant to paragraph (c) (5) The Commission has determined of this section, or with respect to any that a majority of its meetings may be

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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- sioner on the question, is made avail- (e) of this section, notice of the time, able 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 reception area of the (e) Scheduling and public announce- Postal Regulatory Commission located ment. (1) In the case of each meeting, at 901 New York Avenue NW., Suite 200, the Commission shall make public an- Washington, DC 20268–0001; nouncement, at least 1 week before the (ii) Mailing a copy to all persons meeting, of the time, place, and subject whose names are on a mailing list matter of the meeting, whether it is to be open or closed to the public, and the maintained for this purpose; name and phone number of the official (iii) Operating a recorded telephone designated by the Commission to re- announcement, giving the announce- spond to requests for information ment; and about the meeting. Such announce- (iv) Any other means which the Sec- ment shall be made unless three Com- retary believes will serve to further in- missioners determine by a recorded form any persons who might be inter- vote that Commission business re- ested. quires that such meeting be called at (f) Certification of closed meetings; an earlier date, in which case the Com- transcripts, electronic recordings, and mission shall make public announce- minutes. (1) Before any meeting to be ment of the time, place, and subject closed pursuant to paragraphs (c) (1) matter of such meeting, and whether through (10) of this section, the Gen- open or closed to the public, at the ear- eral Counsel of the Commission, or in liest practicable time. the General Counsel’s absence, the sen- (2) The time or place of a meeting ior advisory staff attorney available, may be changed following the public should publicly certify that, in his/her announcement required by paragraph opinion, the meeting may be closed to (e)(1) of this section only if the Com- the public and shall state each relevant mission publicly announces such change at the earliest practicable time. exemptive provision. A copy of such The subject matter of a meeting, or the certification, together with a state- determination of the Commission to ment from the presiding officer of the open or close a meeting, or a portion of meeting setting forth the time and a meeting, to the public, may be 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 Secretary minutes. Such minutes shall fully and and Administration no later than three clearly describe all matters discussed working days after the issuance of the and shall provide a full and accurate notice of meeting to which the request summary of any actions taken, and the pertains. Requests received after that reasons therefor, including a descrip- time will be returned to the requester tion of the views expressed on any item with a statement that the request was and the record of any rollcall vote (re- untimely received and that copies of flecting the vote of each Commissioner any nonexempt portions of the tran- on the question). All documents consid- script or minutes for the meeting in ered in connection with any action question will ordinarily be available in shall be identified in such minutes. the Office of Secretary and Adminis- (2) The Commission shall make tration 10 working days after the meet- promptly available to the public, in a ing. place easily accessible to the public, (2)(i) Any person whose interests may the transcript, electronic recording, or be directly affected may request in minutes (as required by paragraph (f)(1) writing that the Commission close to of this section) of the discussion of any public observation discussion of a mat- item on the agenda, or of any item of ter which it has earlier decided to open 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 Sec- shall be furnished to any person at the retary and Administration as soon as actual cost of duplication or tran- possible after the issuance of the notice scription. The Commission shall main- of meeting to which the request pertain a complete verbatim copy of the tains. However, a single copy of the re- transcript, a complete copy of the min- quest will be accepted. Requests to utes, or a complete electronic record- close meetings must be received by the ing of each meeting, or portion of a Office of Secretary and Administration meeting, closed to the public, for a pe- no later than the time scheduled for riod of at least 2 years after such meet- the meeting to which such a request ing, or until 1 year after the conclusion pertains. of any Commission proceeding with re- (3) The Secretary shall retain one spect to which the meeting or portion copy of timely requests and forward was held, whichever occurs later. one copy to each Commissioner, one (g) Requests to open or close Commis- copy to the interested Office, and two sion meetings. (1)(i) Any person may re- copies to the Docket Section, one for quest in writing that the Commission entry in the appropriate docket file, if open to public observation discussion any, and one to be posted on the Public

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Notice Board located in that section as § 3001.45 Motions to Stay Automatic an attachment to the Notice of Meet- Closure or Reopen Automatically ing to which it pertains. Closed Dockets. (4) Pleadings replying to requests to (a) Motion to stay automatic closure. (1) open or close shall not be accepted. Interested persons, including the Post- (5) Any Commissioner may require al Service or a Public Representative, that the Commission vote upon the re- may file a motion to stay automatic quest to open or close. If the request is closure, pursuant to § 3001.21, and re- supported by the votes of a majority of quest that the docket remain open for the agency membership, notice of a specified term not to exceed 12 change in meeting shall be issued and months. Motions to stay automatic closure must be filed at least 15 days the Secretary shall immediately notify prior to the automatic closure date. the requester and, before the close of (2) The Commission may order a business the next working day, have docket remain open for a specified posted such vote and other material re- term not to exceed 12 months and must quired by paragraphs (d) and (e) of this file such order at least 15 days prior to section on the Commission’s Public No- the automatic closure date. tice Board. (b) Motion to reopen automatically (6) If no Commissioner requests that closed docket. (1) If, at any time after a a vote be taken on a request to open or docket has been automatically closed, close a Commission meeting, the Sec- interested persons, including the Post- retary shall by the close of the next al Service or a Public Representative, working day after the meeting to may file a motion to reopen an auto- which such request pertains certify matically closed docket, pursuant to that no vote was taken. The Secretary § 3001.21, and must set forth with par- shall forward one copy of that certifi- ticularity good cause for reopening the cation to the requester and two copies docket. of that certification to the Docket Sec- (2) The Commission may order an automatically closed docket to be re- tion, one to be placed in the appro- opened, and must set forth with par- priate docket file, if any, and one to be ticularity good cause for reopening the posted on the Public Notice Board, docket. where it will be displayed for one week. [80 FR 43019, July 21, 2015] [42 FR 13290, Mar. 10, 1977, as amended at 42 FR 25729, May 19, 1977; 58 FR 38976, July 21, 1993; 62 FR 45530, Aug. 28, 1997; 65 FR 6544, Subparts B–C [Reserved] Feb. 10, 2000; 78 FR 36440, June 18, 2013] Subpart D—Rules Applicable to § 3001.44 Automatic Closure of Inac- Requests for Changes in the tive Docket. Nature of Postal Services (a) The Commission shall automatically close a docket in which there has SOURCE: 79 FR 33407, June 10, 2014, unless been no activity of record by any inter- otherwise noted. ested person for 12 consecutive months, except those dockets in which the Com- § 3001.71 Applicability. mission must issue a final determina- The rules in this subpart govern the tion by rule or statute, or if the Com- procedure with regard to proposals of mission has otherwise indicated a final the Postal Service pursuant to 39 order is forthcoming in the docket and U.S.C. 3661 requesting from the Com- has yet to do so. mission an advisory opinion on changes (b) Each month the Commission shall in the nature of postal services that post on the Web site a list of dockets will generally affect service on a na- that will be subject to automatic clo- tionwide or substantially nationwide sure in the following month and will basis. The Rules of General Applica- include the date on which the docket bility in subpart A of this part are also applicable to proceedings conducted will automatically close. pursuant to this subpart except that [80 FR 43019, July 21, 2015] § 3001.21 (Motions); § 3001.25 (Discovery—

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general policy); § 3001.26 (Interrog- not have access to the Commission’s atories for purposes of discovery); Web site. § 3001.27 (Requests for production of documents or things for the purpose of § 3001.75 Motions. discovery); § 3001.30 (Hearings); § 3001.33 (a) In general. (1) An application for (Depositions) and § 3001.34 (Briefs) do an order or ruling not otherwise spe- not apply in proceedings conducted cifically provided for in this subpart under this subpart. shall be made by motion. A motion shall set forth with particularity the § 3001.72 Advisory opinion and special ruling or relief sought, the grounds and studies. basis therefor, and the statutory or (a) Issuance of opinion. In the absence other authority relied upon, and shall of a determination of good cause for ex- be filed with the Secretary and served tension, the Commission shall issue an pursuant to the provisions of §§ 3001.9 advisory opinion in proceedings con- through 3001.12. A motion to dismiss ducted under this subpart not later proceedings or any other motion that than 90 days following the filing of the involves a final determination of the Postal Service’s request for an advi- proceeding, any motion under § 3001.91, sory opinion. and a motion that seeks to extend the (b) Special studies. Advisory opinions deadline for issuance of an advisory shall address the specific changes pro- opinion shall be addressed to the Com- posed by the Postal Service in the na- mission. After a presiding officer is ture of postal services. If, in any pro- designated in a proceeding, all other ceeding, alternatives or related issues motions in that proceeding, except of significant importance arise, the those filed under part 3007 of this chap- Commission may, in its discretion, un- ter, shall be addressed to the presiding dertake an evaluation of such alter- officer. native or issues by means of special (2) Within 5 days after a motion is studies, public inquiry proceedings, or filed, or such other period as the Com- other appropriate means. mission or presiding officer in any proceeding under this subpart may estab- § 3001.73 Computation of time. lish, any participant to the proceeding In computing any period of time pre- may file and serve an answer in sup- scribed or allowed by this subpart, the port of or in opposition to the motion term day means a calendar day unless pursuant to §§ 3001.9 through 3001.12. explicitly specified otherwise. The last Such an answer shall state with speci- day of the period so computed is to be ficity the position of the participant included unless it is a Saturday, Sun- with regard to the ruling or relief re- day, or Federal holiday for the Com- quested in the motion and the grounds mission, in which event the period runs and basis and statutory or other au- until the end of the next day which is thority relied upon. Unless the Com- neither a Saturday, Sunday, nor Fed- mission or presiding officer otherwise eral holiday. provides, no reply to an answer or any further responsive document shall be § 3001.74 Service by the Postal Service. filed. By filing its request electronically (b) Motions to be excused from answer- with the Commission, the Postal Serv- ing discovery requests. (1) A motion to be ice is deemed to have effectively served excused from answering discovery re- copies of its formal request and its pre- quests shall be filed with the Commis- pared direct evidence upon those per- sion within 3 days of the filing of the sons, including the officer of the Com- interrogatory, request for production, mission, who participated in the pre- or request for admission to which the filing conference held under § 3001.81. motion is directed. If a motion to be The Postal Service shall be required to excused from answering is made part of serve hard copies of its formal request an interrogatory, request for produc- and prepared direct evidence only upon tion, or request for admission, the part those persons who have notified the to which objection is made shall be Postal Service, in writing, during the clearly identified. Claims of privilege pre-filing conference(s), that they do shall identify the specific evidentiary

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privilege asserted and state the reasons clude in the notice of proceeding issued for its applicability. Claims of undue under § 3001.17 a procedural schedule burden shall state with particularity based upon the pro forma schedule set the effort that would be required to an- forth in Appendix A of this part. The swer or respond to the request, pro- procedural schedule shall include: viding estimates of costs and (1) A deadline for notices of interven- workhours required, to the extent pos- tions; sible. (2) The date(s) for the mandatory (2) An answer to a motion to be ex- technical conference between the Post- cused from answering a discovery real Service, Commission staff, and in- quest shall be filed within 2 days of the terested parties; filing of the motion. The text of the (3) The deadline for discovery on the discovery request and any answer pre- Postal Service’s direct case; viously provided by the Postal Service (4) The deadline for responses to par- shall be included as an attachment to ticipant discovery on the Postal Serv- the answer. ice’s case; (3) Unless the Commission or pre- (5) The deadline for participants to siding officer grants the motion to be confirm their intent to file a rebuttal excused from answering, the Postal case; Service shall answer the interrogatory, (6) The date for filing participant reproduction request, or request for ad- buttal testimony, if any; mission. Answers shall be filed in con- (7) The dates for filing motions for formance with §§ 3001.9 through 3001.12 leave to file surrebuttal testimony and within 3 days of the date on which a answers thereto; motion to be excused from answering is (8) The date for filing surrebuttal, if denied. any; (4) The Commission or presiding offi- (9) The date(s) for hearings on the cer may impose such terms and condi- Postal Service’s direct case, rebuttal tions as are just and may, for good testimony, and surrebuttal testimony, cause, issue a protective order, includ- if any; ing an order limiting or conditioning (10) The date for filing initial briefs; interrogatories, requests for production, and requests for admission as jus- (11) The date for filing reply briefs; tice requires to protect the Postal and Service from undue annoyance, embar- (12) A deadline for issuance of an ad- rassment, oppression, or expense. visory opinion which is 90 days from (c) Motions to strike. Motions to strike the date of filing. are requests for extraordinary relief (b) Changes for good cause. These and are not substitutes for briefs or re- dates are subject to change for good buttal evidence in a proceeding. A mo- cause only. tion to strike testimony or exhibit ma- (c) Incomplete request. If at any time terials must be submitted in writing at the Commission determines that the least 3 days before the scheduled ap- Postal Service’s request is incomplete pearance of a witness, unless good or that changes made subsequent to its cause is shown. Responses to motions filing significantly modify the request, to strike are due within 2 days. the Commission may extend the dead- (d) Motions for leave to file surrebuttal lines established or take any other ac- testimony. Motions for leave to file tion as justice may require. surrebuttal testimony submitted pursuant to § 3001.91 and any answers § 3001.81 Pre-filing requirements. thereto must be filed on or before the (a) Pre-filing conference required. Prior dates provided in the procedural sched- to the Postal Service filing a request ule established by the Commission. that the Commission issue an advisory opinion on a proposed change in the na- §§ 3001.76–3001.79 [Reserved] ture of postal services subject to the procedures established in this subpart, § 3001.80 Procedural schedule. the Postal Service shall conduct one or (a) Notice. Subject to paragraph (b) of more pre-filing conference(s) with in- this section, the Commission shall interested persons in the proceeding and

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shall make a good faith effort to ad- issue an advisory opinion on a proposed dress the concerns of such persons. change in the nature of postal services (b) Purpose. The purpose of a pre-fil- subject to this subpart, the Postal ing conference is to expedite consider- Service shall file with the Commission ation of the Postal Service’s request a formal request for such an opinion in for the issuance of advisory opinions by accordance with the requirements of informing interested persons of the §§ 3001.9 through 3001.11 and § 3001.83. Postal Service’s proposal; by providing The request shall be filed not less than an opportunity for interested persons 90 days before the proposed effective to give feedback to the Postal Service date of the change in the nature of that can be used by the Postal Service postal services involved. Within 5 days to modify or refine its proposal before after the Postal Service has filed a for- it is filed at the Commission; and by mal request for an advisory opinion in identifying relevant issues and infor- accordance with this section, the Sec- mation needed to address those issues retary shall lodge a notice thereof with during proceedings at the Commission. the director of the Office of the Federal (c) Rationale for the proposal. The Postal Service shall make available at Register for publication in the FED- the pre-filing conference a representa- ERAL REGISTER. tive capable of discussing the policy ra- § 3001.83 Contents of formal requests. tionale behind the Postal Service’s proposal with interested persons. (a) General requirements. A formal re- (d) Notice. The Postal Service shall quest filed under this subpart shall in- file with the Commission a notice of its clude such information and data and intent to conduct any pre-filing con- such statements of reasons and basis as ference(s) at least 10 days before the are necessary and appropriate to fully first scheduled conference. The notice inform the Commission and interested filed by the Postal Service shall in- persons of the nature, scope, signifi- clude a schedule of proposed date(s) cance, and impact of the proposed and location(s) for the conference(s). change in the nature of postal services Upon receipt of such notice, the Com- and to show that the change in the na- mission shall issue a notice of pre-fil- ture of postal services is in accordance ing conference(s), which shall be pub- with and conforms to the policies es- lished in the FEDERAL REGISTER, and tablished under title 39, United States appoint a Public Representative. Code. (e) Nature of conferences. Discussions (b) Specific information. A formal re- during the pre-filing conference(s) shall quest shall include: be informal and off the record. No for- (1) A detailed statement of the mal record will be created during a pre- present nature of the postal services filing conference. proposed to be changed and the change (f) Noncompliance. If the Postal Serv- proposed; ice’s noncompliance with the requirements of the pre-filing conference (2) The proposed effective date for under § 3001.83(b)(4) is established by a the proposed change in the nature of participant, the Commission may, in postal services; its discretion, consider an extension of, (3) A full and complete statement of or modification to, the procedural the reasons and basis for the Postal schedule. Service’s determination that the pro- (g) Informal meetings. Interested per- posed change in the nature of postal sons may meet outside the context of a services is in accordance with and con- pre-filing conference, among them- forms to the policies of title 39, United selves or with the Postal Service, indi- States Code; vidually or in groups, to discuss the (4) A statement that the Postal Serv- proposed changes in the nature of post- ice has completed the pre-filing con- al services. ference(s) required by § 3001.81, including the time and place of each con- § 3001.82 Filing of formal requests. ference and a certification that the Whenever the Postal Service deter- Postal Service has made a good faith mines to request that the Commission effort to address concerns of interested

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persons about the Postal Service’s pro- (b) Witnesses. The Postal Service posal raised at the pre-filing con- shall make available at the technical ference(s); conference each witness whose pre- (5) The prepared direct evidence re- pared direct testimony was filed pursu- quired by § 3001.84; ant to § 3001.84. If the Postal Service (6) The name of an institutional wit- seeks for any witness to be excused on ness capable of providing information the basis that the witness’s testimony relevant to the Postal Service’s pro- neither presents nor is based upon posal that is not provided by other technical information, it shall make Postal Service witnesses; and such a motion concurrent with its re- (7) Confirmation that Postal Service quest. witnesses, including its institutional (c) Purpose. The purpose of the tech- witness, will be available for the man- nical conference is to provide an infor- datory technical conference provided mal, off-the-record opportunity for par- for in § 3001.85. ticipants, the officer of the Commis- sion representing the interests of the (c) Additional information. The Com- general public, and Commission staff mission may request additional infor- to clarify technical issues and to iden- mation from the Postal Service con- tify and request information relevant cerning a formal request. to an evaluation of the nature of (d) Reliance on prepared direct evi- changes to postal services proposed by dence. The Postal Service may incor- the Postal Service. The technical con- porate detailed data, information, and ference is not part of the formal record statements of reason or basis contained in the proceeding. in prepared direct evidence submitted (d) Relation to discovery process. Infor- under paragraph (b)(5) of this section mation obtained during the mandatory into its formal request by reference to technical conference may be used to specific portions of the prepared direct discover additional relevant informa- evidence. tion by means of the formal discovery mechanisms provided for in §§ 3001.86 § 3001.84 Filing of prepared direct evi- through 3001.89. dence. (e) Record. Information obtained dur- As part of a formal request for an ad- ing, or as a result of, the mandatory visory opinion under this subpart, the technical conference is not part of the Postal Service shall file all of the pre- decisional record unless admitted pared direct evidence upon which it under the standards of § 3001.31(a). proposes to rely in the proceeding on the record before the Commission to § 3001.86 Discovery—in general. establish that the proposed change in (a) Purpose. The rules in this subpart the nature of postal services is in ac- allow discovery that is reasonably cal- cordance with and conforms to the culated to lead to admissible evidence policies of title 39, United States Code. during a proceeding. The notice and Such prepared direct evidence shall be scheduling order issued pursuant to in the form of prepared written testi- § 3001.80 shall provide that discovery mony and documentary exhibits which will be scheduled to end at least 3 days shall be filed in accordance with prior to the commencement of hear- § 3001.31. ings. (b) Informal discovery. The discovery § 3001.85 Mandatory technical con- procedures in § 3001.86 and §§ 3001.87 ference. through 3001.89 are not exclusive. Par- (a) Date. A date for a mandatory ticipants are encouraged to engage in technical conference shall be included informal discovery whenever possible in the procedural schedule required by to clarify exhibits and testimony. The § 3001.80. The date for this technical results of these efforts may be intro- conference shall be set based upon the duced into the record by stipulation, or pro forma schedule set forth in Appen- by other appropriate means. In the in- dix A to this subpart. The conference terest of reducing motion practice, par- shall be held at the offices of the Com- ticipants also are expected to use infor- mission. mal means to clarify questions and to

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identify portions of discovery requests (b) Answers. (1) Answers to interrog- considered overbroad or burdensome. atories shall be prepared so that they (c) Failure to obey orders or rulings. If can be incorporated into the record as a participant fails to obey an order of written cross-examination. Each an- the Commission or ruling of presiding swer shall begin on a separate page, officer to provide or permit discovery identify the individual responding and pursuant to this section or §§ 3001.86 the relevant testimony number, if any, through 3001.89, the Commission or the the participant who propounded the in- presiding officer may issue orders or terrogatory, and the number and text rulings in regard to the failure as are of the question. just. These orders or rulings may, (2) Each interrogatory shall be an- among other things: swered separately and fully in writing (1) Direct that certain designated by the individual responsible for the facts are established for the purposes of answer, unless it is objected to, in the proceeding; which event the reasons for objection (2) Prohibit a participant from intro- shall be stated in a motion to be ex- ducing certain designated matters in cused from answering in the manner evidence; prescribed by paragraph (c) of this sec- (3) Strike certain evidence, requests, tion. pleadings, or parts thereof; or, (3) An interrogatory otherwise proper (4) Such other relief as the Commis- is not necessarily objectionable be- sion deems appropriate. cause an answer would involve an opinion or contention that relates to fact § 3001.87 Interrogatories. or the application of law to fact. (a) Service and contents. In the inter- (4) Answers filed by a respondent est of expedition and limited to infor- shall be filed in conformance with mation which appears reasonably cal- §§ 3001.9 through 3001.12 within 7 days of culated to lead to the discovery of ad- the filing of the interrogatories or missible evidence, any participant in a within such other period as may be proceeding may propound to any other fixed by the Commission or presiding participant no more than a total of 25 officer. Any other period fixed by the written, sequentially numbered inter- Commission or presiding officer shall rogatories, by witness, requesting non- end before the conclusion of the hear- privileged information relevant to the subject matter of the proceeding. An ing. interrogatory with subparts that are (c) Motion to be excused from answer- logically or factually subsumed within ing. A respondent may, in lieu of an- and necessarily related to the primary swering an interrogatory, file a motion question will be counted as one inter- pursuant to § 3001.75(b) to be excused rogatory. The respondent shall answer from answering. each interrogatory and furnish such in- (d) Supplemental answers. A respond- formation as is available. The partici- ent has a duty to timely amend a prior pant propounding the interrogatories answer if it obtains information upon shall file them with the Commission in the basis of which it knows that the conformance with §§ 3001.9 through answer was incorrect when made or is 3001.12. Follow-up interrogatories to no longer true. A respondent shall clarify or elaborate on the answer to serve supplemental answers to update an earlier discovery request may be or to correct responses whenever nec- filed after the period for intervenor dis- essary, up until the date the answer covery on the Postal Service case ends could have been accepted into evidence if the interrogatories are filed within 7 as written cross-examination. A re- days of receipt of the answer to the spondent shall indicate whether the an- previous interrogatory. In extraor- swer merely supplements the previous dinary circumstances, follow-up inter- answer to make it current or whether rogatories may be filed not less than 6 days prior to the filing date for the it is a complete replacement for the participant’s rebuttal or surrebuttal previous answer. testimony.

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§ 3001.88 Production of documents. purposes of the pending proceeding (a) Service and contents. (1) In the in- only. The participant requesting the terest of expedition and limited to in- admission shall file its request with formation which appears reasonably the Commission in conformance with calculated to lead to the discovery of §§ 3001.9 through 3001.12. admissible evidence, any participant (b) Answers. (1) A matter for which may serve on any other participant a admission is requested shall be sepa- request to produce and permit the par- rately set forth in the request and is ticipant making the request, or some- deemed admitted unless, within 7 days one acting on behalf of the participant, after the request is filed, or within to inspect and copy any designated such other period as may be estab- documents or things that constitute or lished by the Commission or presiding contain matters, not privileged, that officer, the respondent files a written are relevant to the subject matter in- answer or motion to be excused from volved in the proceeding and that are answering pursuant to paragraph (c) of in the custody or control of the re- this section. Answers to requests for spondent. admission shall be filed with the Com- (2) The request shall set forth the mission in conformance with §§ 3001.9 items to be inspected either by indi- through 3001.12. vidual item or category, and describe (2) If the answer filed by the respond- each item and category with reason- ent does not admit a matter asserted in able particularity, and shall specify a the participant’s request, it must ei- reasonable time, place, and manner of ther specifically deny the matter or ex- making inspection. The participant re- plain in detail why it cannot truthfully questing the production of documents admit or deny the asserted matter. or items shall file its request with the When good faith requires, the respond- Commission in conformance with ent must admit a portion of the as- §§ 3001.9 through 3001.12. serted matter and either deny or qual- (b) Answers. (1) The respondent shall ify the remaining portion of such as- file an answer to a request under para- serted matter. Lack of knowledge for graph (a) of this section with the Com- failing to admit or deny can be invoked mission in conformance with §§ 3001.9 only after reasonable inquiry if the in- through 3001.12 within 7 days after the formation already possessed or reason- request is filed, or within such other ably obtainable is insufficient to en- period as may be fixed by the Commis- able an admission or denial. sion or presiding officer. The answer (3) Grounds for objection to requests shall state, with respect to each item for admission must be stated. Objec- or category, whether inspection will be tions cannot be based solely upon the permitted as requested. ground that the request presents a gen- (2) If the respondent objects to an uine issue for trial. item or category, it shall state the rea- (c) Motion to be excused from answer- sons for objection in a motion to be ex- ing. A respondent may, in lieu of an- cused from answering as prescribed by swering a request for admission, file a paragraph (c) of this section. motion pursuant to § 3001.75(b) to be ex- (c) Motions to be excused from answer- cused from answering. ing. A respondent may, in lieu of answering a request for production, file a § 3001.90 Rebuttal testimony. motion pursuant to § 3001.75(b) to be ex- (a) Timing. Any participant may file cused from answering. rebuttal testimony on or before the date established for that purpose by § 3001.89 Admissions. the procedural schedule issued by the (a) Service and content. In the interest Commission pursuant to § 3001.80. Hear- of expedition, any participant may ing on rebuttal testimony shall proceed serve upon any other participant a as set forth in the procedural schedule. written request for the admission of (b) Limitations. The scope of rebuttal any relevant, unprivileged facts, in- testimony shall be limited to material cluding the genuineness of any docu- issues relevant to the specific proposal ments or exhibits to be presented in made by the Postal Service. Rebuttal the hearing. The admission shall be for testimony shall not propose, or seek to

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address, alternatives to the Postal may be filed, the remaining dates in Service’s proposal. the procedural schedule may be ad- (c) Intent to file rebuttal testimony. If a justed by the Commission as it deems participant wishes to file rebuttal tes- to be necessary and appropriate. timony, it must file a document con- firming its intent to file rebuttal testi- § 3001.92 Hearings. mony with the Commission by the date (a) Initiation. Hearings for the pur- provided in the procedural schedule. pose of taking evidence shall be initi- (d) Adjustment of dates. If no partici- ated by the issuance of a notice and pant files a confirmation of intent to scheduling order pursuant to § 3001.80. file rebuttal testimony on or before the (b) Presiding officer. All hearings shall date established by the procedural be held before the Commission sitting schedule issued by the Commission en banc with a duly designated pre- pursuant to § 3001.80, the Commission siding officer. may adjust other dates in the proce- (c) Entering of appearances. The Com- dural schedule as it deems to be nec- mission or the presiding officer before essary and appropriate. whom the hearing is held will cause to be entered on the record all appear- § 3001.91 Surrebuttal testimony. ances together with a notation showing (a) Scope. Surrebuttal testimony on whose behalf each such appearance shall be limited to material issues rel- has been made. evant to the Postal Service’s proposal (d) Order of procedure. In requests for and to the rebuttal testimony which advisory opinions before the Commis- the surrebuttal testimony seeks to ad- sion, the Postal Service shall be the dress. Testimony that exceeds the first participant to present its case. scope of the Postal Service’s proposal Unless otherwise ordered by the Com- or rebuttal testimony shall not be permission, the presiding officer shall di- mitted. rect the order of presentation of all (b) Motion for leave to file surrebuttal. other participants and issue such other A participant who wishes to file procedural orders as may be necessary surrebuttal testimony must obtain to assure the orderly and expeditious prior approval by filing with the Com- conclusion of the hearing. mission a motion for leave to file (e)(1) Presentations by participants. surrebuttal pursuant to § 3001.75(d) on Each participant shall have the right or before the date provided in the pro- in public hearings to present evidence cedural schedule established by the relevant to the Postal Service’s pro- Commission. The motion must summa- posal, cross-examine (limited to testi- rize the surrebuttal testimony the par- mony adverse to the participant con- ticipant wishes to file and must iden- ducting the cross-examination), object, tify and explain exceptional cir- move, and argue. The participant’s cumstances that require the filing of presentation shall be in writing and such testimony. The moving partici- may be accompanied by a trial brief or pant bears the burden of demonstrating legal memoranda. (Legal memoranda exceptional circumstances that war- on matters at issue will be welcome at rant a grant of the motion. Answers to any stage of the proceeding.) When ob- such motions may be filed as provided jections to the admission or exclusion in § 3001.75(d). of evidence before the Commission or (c) Deadline for filing surrebuttal au- the presiding officer are made, the thorized by the Commission. In the event grounds relied upon shall be stated. the Commission grants the motion for Formal exceptions to rulings are un- leave to file surrebuttal testimony, the necessary. moving participant must file its pro- (2) Written cross-examination. Written posed surrebuttal testimony by the cross-examination will be utilized as a date provided in the procedural sched- substitute for oral cross-examination ule established pursuant to § 3001.80. whenever possible, particularly to in- (d) Adjustment of procedural dates. If troduce factual or statistical evidence. no participant files a motion for leave Designations of written cross-examina- to file surrebuttal testimony, or if the tion shall be served in accordance with Commission denies all such motions as §§ 3001.9 through 3001.12 no later than 3

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days before the scheduled appearance mission to receive service of docu- of a witness. Designations shall iden- ments in hardcopy form, hardcopy notify every item to be offered as evi- tices of intent to conduct oral cross-ex- dence, listing the participant who ini- amination of witnesses for that partici- tially posed the discovery request, the pant shall be delivered to counsel for witness and/or party to whom the ques- that participant and served 3 or more tion was addressed (if different from working days before the announced ap- the witness answering), the number of pearance of the witness. Cross-exam- the request and, if more than one an- ination exhibits shall be delivered to swer is provided, the dates of all an- counsel for the witness at least 2 days swers to be included in the record. (For (including 1 working day) before the example, ‘‘PR–T1–17 to USPS witness scheduled appearance of the witness. Jones, answered by USPS witness (f) Limitations on presentation of the Smith (March 1, 1997) as updated evidence. The taking of evidence shall (March 21, 1997)’’). When a participant proceed with all reasonable diligence designates written cross-examination, two hard copies of the documents (un- and dispatch, and to that end, the Com- fastened, single-spaced, not hole- mission or the presiding officer may punched) to be included shall simulta- limit appropriately: neously be submitted to the Secretary (1) The number of witnesses to be of the Commission. The Secretary of heard upon any issue, the Commission shall prepare for the (2) The examination by any partici- record a packet containing all mate- pant to specific issues, and rials designated for written cross-ex- (3) The cross-examination of a wit- amination in a format that facilitates ness to that required for a full and true review by the witness and counsel. The disclosure of the facts necessary for ex- witness will verify the answers and ma- ploration of the Postal Service’s pro- terials in the packet, and they will be posal, disposition of the proceeding, entered into the transcript by the pre- and the avoidance of irrelevant, imma- siding officer. Counsel may object to terial, or unduly repetitious testimony. written cross-examination at that (g) Motions during hearing. Except as time, and any designated answers or provided in § 3001.75(a), after a hearing materials ruled objectionable will not has commenced in a proceeding, a re- be admitted into the record. quest may be made by motion to the (3) Oral cross-examination. Oral cross- presiding officer for any procedural examination will be permitted for ruling or relief desired. Such motions clarifying written cross-examination shall set forth the ruling or relief and for testing assumptions, conclu- sought, and state the grounds therefore sions or other opinion evidence. No- and statutory or other supporting au- tices of intent to conduct oral cross-ex- thority. Motions made during hearings amination shall be filed 3 or more days may be stated orally upon the record, before the announced appearance of the except that the presiding officer may witness and shall include specific ref- require that such motions be reduced erences to the subject matter to be examined and page references to the rel- to writing and filed separately. Any evant direct testimony and exhibits. A participant shall have the opportunity participant intending to use complex to answer or object to such motions at numerical hypotheticals, or to ques- the time and in the manner directed by tion using intricate or extensive cross- the presiding officer. references, shall provide adequately (h) Rulings on motions. The presiding documented cross-examination exhib- officer is authorized to rule upon any its for the record. Copies of these ex- motion not reserved for decision by the hibits shall be filed at least 2 days (in- Commission in § 3001.75(a). This section cluding 1 working day) before the shall not preclude a presiding officer scheduled appearance of the witness. from referring any motion made in They may be filed online or delivered hearing to the Commission for ulti- in hardcopy form to counsel for the mate determination. witness, at the discretion of the partic- (i) Transcript corrections. Corrections ipant. If a participant has obtained per- to the transcript of a hearing shall not

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be requested except to correct a mate- (c) Length. Initial briefs filed by all rial substantive error in the tran- participants other than the Postal scription made at the hearing. Service shall not exceed 14,000 words. (j) Field Hearings. Field hearings will Initial briefs filed by the Postal Serv- not be held except upon a showing by ice shall not exceed 21,000 words. Reply any participant and determination by briefs filed by all participants other the Commission that there is excep- than the Postal Service shall not ex- tional need or utility for such a hear- ceed 7,000 words. Reply briefs filed by ing which cannot be accomplished by the Postal Service shall not exceed alternative means. 10,500 words. All participants shall at- § 3001.93 Initial and reply briefs. test to the number of words contained in their brief. Tables of cases, tables of (a) When filed. At the close of the citations, and appendices shall not be taking of testimony in any proceeding, considered as part of the word count. participants may file initial and reply briefs. The dates for filing initial and (d) Include by reference. Briefs before reply briefs shall be established in the the Commission or a presiding officer procedural schedule issued pursuant to shall be completely self-contained and § 3001.80. Such dates may be modified shall not incorporate by reference any by subsequent order issued by the Com- portion of any other brief, pleading, or mission or the presiding officer. document. (b) Contents. Each brief filed with the (e) Excerpts from the record. Testi- Commission shall be as concise as pos- mony and exhibits shall not be quoted sible and shall include the following in or included in briefs except for short the order indicated: excerpts pertinent to the argument (1) A subject index with page ref- presented. erences, and a list of all cases and au- (f) Filing and service. Briefs shall be thorities relied upon, arranged alpha- filed in the form and manner and betically, with references to the pages served as required by §§ 3001.9 through where the citation appears; 3001.12. (2) A concise statement of the case (g) Statements of Position. As an alter- from the viewpoint of the filing partic- native to filing a formal brief, a participant; (3) A clear, concise, and definitive ipant may file a Statement of Position. statement of the position of the filing To the extent practicable, the contents participant as to the Postal Service re- of each Statement of Position should quest; include a clear, concise, and definitive (4) A discussion of the evidence, rea- statement of the position of the filing sons, and authorities relied upon with participant as to the Postal Service re- precise references to the record and the quest, as well as any points or factors authorities; and in the existing record that support the (5) Proposed findings and conclusions participant’s position. Statements of with appropriate references to the Position shall be limited to the exist- record or the prior discussion of the ing record and shall not include any evidence and authorities relied upon. new evidentiary material.

APPENDIX A TO SUBPART D OF PART 3001—PRO FORMA N-CASE PROCEDURAL SCHEDULE

Line Action Day number

1 ...... Pre-Filing Consultations 1 ...... n/a. 2 ...... Commission Order 2 ...... n/a. 3 ...... Filing of Postal Service Request ...... 0. 4 ...... Commission Notice and Order 3 ...... 1–3. 5 ...... Technical Conference ...... 10. 6 ...... Participant Discovery on Postal Service Case 28. Ends. 7 ...... Responses to Participant Discovery on Post- 35. al Service Case.

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Line Action Day number

8 ...... Participants Confirm Intent to File a Rebuttal 37.4 Case. 9 ...... Filing of Rebuttal Cases (if submitted) ...... 42. 10 ...... Deadline for Motions to Leave to File 44.5 Surrebuttal. 11 ...... Deadline for Answers to Motions for 46. Surrebuttal. 12 ...... Filing of Surrebuttal Cases (if authorized) ..... 49.6 13 ...... Hearings. Hearings (with no Rebuttal Cases) ...... 42–44. Hearings (with Rebuttal Cases, but no re- 49–51. quests for leave to file Surrebuttal Cases). Hearings (with Rebuttal Cases and requests 54–56. for leave to file Surrebuttal Cases). 14 ...... Initial Briefs ...... (7 days after conclusion of hearings). 15 ...... Reply Briefs ...... (7 days after filing of Initial Briefs). 16 ...... Target Issuance Date of Advisory Opinion .... 90. 1 The Postal Service would initiate pre-filing consultations and would file a notice with the Commission of such consultations prior to their commencement. 2 This order would appoint a Public Representative. 3 This notice and order would announce the Postal Service request, set a deadline for interventions, set a date for a technical conference, and establish a procedural schedule. 4 If no participant elects to file a rebuttal case, hearings begin on Day 42. 5 If no surrebuttal cases are requested, hearings begin on Day 49. 6 If one or more surrebuttal cases are requested (whether or not authorized by the Commission), hearings begin on Day 54.

Subparts E–L [Reserved] requirements of 39 U.S.C. 3622 and 3633. The Commission consults with the PART 3002—ORGANIZATION Postal Service on delivery service standards and performance measures Sec. and with the Department of State on 3002.1 Purpose. international postal policies. The Com- 3002.2 Statutory functions. mission adjudicates rate and service 3002.3 Official seal. complaints filed pursuant to 39 U.S.C. 3002.4–3002.9 [Reserved] 3662 and offers advisory opinions on 3002.10 The Commission and its offices. proposed changes to postal services 3002.11 Office of Secretary and Administra- tion. pursuant to 39 U.S.C. 3661. Pursuant to 3002.12 Office of Accountability and Compli- 39 U.S.C. 3651, the Commission provides ance. an annual report to the President and 3002.13 Office of the General Counsel. Congress, and pursuant to 39 U.S.C. 3002.14 The Public Representative. 3653, the Commission issues an annual 3002.15 Office of Public Affairs and Govern- compliance determination to assess ment Relations. whether the Postal Service’s rates, 3002.16 Office of Inspector General. fees, and services comport with the re- AUTHORITY: 39 U.S.C. 503; 5 U.S.C. 552. quirements of title 39. Pursuant to 39 SOURCE: 78 FR 27045, May 9, 2013, unless U.S.C. 404(d)(5), the Commission acts otherwise noted. on postal patrons’ appeals concerning Postal Service decisions to close or § 3002.1 Purpose. consolidate post offices. This part is published in compliance (b) Public participation. Interested with 5 U.S.C. 552(a)(1) and constitutes a persons may participate in formal pro- general description of the Postal Regu- ceedings described in §§ 3001.17 and latory Commission. 3001.18 of this chapter as formal intervenors (§ 3001.20 of this chapter), lim- § 3002.2 Statutory functions. ited participators (§ 3001.20a of this (a) Areas of jurisdiction. The Commis- chapter), or commenters (§ 3001.20b of sion develops and maintains regula- this chapter). Pursuant to 39 U.S.C. tions for a modern system of rate regu- 3662(a) and part 3030 of this chapter, lation, including maintaining the mar- any interested person may lodge rate ket dominant and competitive product and service complaints with the Com- lists in the Mail Classification Sched- mission. Persons served by a post office ule and ensuring that rates meet the that the Postal Service decides to close

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or consolidate may appeal such deter- ters and in base at the point of the tri- minations in accordance with 39 U.S.C. angle three Celeste mullets two, two 404(d) and part 3025 of this chapter. and one, the American Eagle with branch and arrows derived from the § 3002.3 Official seal. Great Seal of the United States (a) Authority. The Seal described in charged on the breast with the Com- this section is hereby established as mission’s earlier round seal inscribed the official seal of the Postal Regu- ‘‘Postal Regulatory Commission’’ and latory Commission. the date ‘‘2006’’, all in gold (yellow). (b) Description. (1) On a gold color (2) The official seal of the Postal (yellow) pentagon device, the base-line Regulatory Commission is modified formed as a ‘‘V,’’ edged with a black border, a black triangle point down and when reproduced in black and white between the inscription at top ‘‘Postal and when embossed, as it appears in Regulatory Commission’’ in white let- this section.

(c) Custody and authorization to affix. written approval. Such request must be (1) The seal is the official emblem of made in writing to the Secretary. the Postal Regulatory Commission and its use is permitted only as provided in §§ 3002.4–3002.9 [Reserved] this part. (2) The seal shall be kept in the cus- § 3002.10 The Commission and its offices. tody of the Secretary and is to be used to authenticate records of the Postal (a) The Commissioners. The Postal Regulatory Commission and for other Regulatory Commission is an inde- official purposes. pendent establishment of the executive (3) Use by any person or organization branch of the federal government cre- outside of the Commission may be ated by the Postal Accountability and made only with the Commission’s prior Enhancement Act (39 U.S.C. 501).

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(b) The Chairman and Vice-Chairman. of contact for all Commission con- The Chairman has the administrative tracts and audits. responsibility for assigning the busi- (c) The Office of Secretary and Ad- ness of the Commission to the other ministration is responsible for the Commissioners and to the offices and Commission’s human resources and employees of the Commission. He/She personnel. In this role, the Office of has the administrative duty to preside Secretary and Administration is re- at the meetings and sessions of the sponsible for Commission employee Commission and to represent the Com- hiring, training, travel, personnel pol- mission in matters specified by statute icy and compliance, and human capital or executive order or as the Commis- planning. In addition, the Office of Sec- sion directs. The Commission shall retary and Administration serves as an elect annually a member of the Com- Equal Employment Opportunity Offi- mission to serve as Vice-Chairman of cer for the Commission and manages the Commission for a term of one year the Commission’s continuity of oper- or until a successor is elected. In case ations planning. of a vacancy in the Office of the Chair- (d) The Office of Secretary and Ad- man of the Commission, or in the ab- ministration manages the Commis- sence or inability of the Chairman to sion’s records, including the Commis- serve, the Vice-Chairman, unless other- sion’s seal, administrative policies, or- wise directed by the Chairman, shall ders, reports, and official correspond- have the administrative responsibil- ence. In this role, the Office of Sec- ities and duties of the Chairman during retary and Administration manages the period of vacancy, absence, or in- the Commission’s dockets and docket ability. room, Web site, reference materials, (c) The Commission’s offices are lo- inter-agency reporting, and Freedom of cated at 901 New York Avenue NW., Information Act responsibilities. All Suite 200, Washington, DC 20268–0001. orders and other actions of the Com- On these premises, the Commission mission shall be authenticated or maintains offices for Commissioners signed by the Secretary or any such and staff; a docket room where docu- other person as may be authorized by ments may be filed with the Commis- the Commission. sion pursuant to § 3001.9 of this chapter (e) The Office of Secretary and Ad- and examined by interested persons, a ministration is responsible for the public reading room where the Com- Commission’s facilities and infrastruc- mission’s public records are available ture. In this role, the Office of Sec- for inspection and copying; and a hear- retary and Administration manages fa- ing room where formal evidentiary pro- cility security; provides information ceedings are held on matters before the technology and other support services Commission. The Commission also essential to the efficient and effective maintains an electronic reading room conduct of operations; acquires and as- accessible through the Internet, on its signs office space; and manages pro- Web site at http://www.prc.gov. curement and supply.

§ 3002.11 Office of Secretary and Ad- § 3002.12 Office of Accountability and ministration. Compliance. (a) The incumbent head of the office (a) The Office of Accountability and utilizes the title of ‘‘Secretary’’. Compliance is responsible for technical (b) The Office of Secretary and Ad- analysis and the formulation of policy ministration is responsible for the recommendations for the Commission Commission’s budget and accounting. in both domestic and international In this role, the Office of Secretary and matters, including those governed by Administration develops, implements, the Universal Postal Union. and administers the Commission’s fi- (b) The Office of Accountability and nancial management system and ac- Compliance provides the analytic sup- counting activities including those report to the Commission for the review lating to the budget and the payroll; is of rate changes, negotiated service responsible for the Commission’s stra- agreements, classification of products, tegic planning; and serves as the point the Annual Compliance Determination,

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the Annual Report, changes to postal § 3002.14 The Public Representative. services, post office closings and other (a) Pursuant to 39 U.S.C. 505, the issues which come before the Commis- Commission appoints a staff member, sion.’’ The functional areas of expertise on a case-by-case basis, to serve as a within this office are: representative of the general public’s (1) The economic analysis of the mar- interests in public proceedings before ket for postal services including the al- the Commission. This appointee is ternative sources for such services and called the Public Representative. the users of the service; (b) Individuals appointed to represent (2) The analysis of the operational the general public are subject to the characteristics of the postal system same ex parte prohibitions as apply to and its interface with various segments all other interested persons in the of the economy; and cases to which they are assigned to the (3) The analysis of the costs of oper- role of the Public Representative. ating the Postal Service and how such costs are influenced by operational § 3002.15 Office of Public Affairs and characteristics, changes in volume, and Government Relations. changes in other relevant factors. (a) The Office of Public Affairs and (c) These functional activities are Government Relations facilitates combined in the evaluation of the Post- prompt and responsive communica- al Service’s proposed rates, proposed tions for the Commission with the pub- service changes, proposed changes to lic, members of Congress, the Postal the Mail Classification Schedule, and product list designations, as well as Service, state and local governments, formal complaints, the Annual Compli- and the media. ance Determination, and all other pro- (b) The Office of Public Affairs and ceedings, reports, and filings before the Government Relations has three pri- Commission requiring such analysis. mary areas of responsibility: Govern- (d) The Office of Accountability and ment Relations, Consumer Affairs, and Compliance also collects, analyzes, and Communications. periodically summarizes financial and (1) Government Relations. The Office of various other statistical information Public Affairs and Government Rela- for use in its ongoing activities and for tions is the principal liaison between the development of future methods, the Commission and Members of Con- techniques, and systems of analysis gress. It develops and maintains effec- and reporting. tive working relationships with Con- gressional staff; monitors legislative § 3002.13 Office of the General Coun- activity; and advises the Commission sel. and its staff on legislative actions and (a) The General Counsel directs and policies related to the Commission and coordinates the functions of the Office its mission. The Office of Public Affairs of the General Counsel. The General and Government Relations works in Counsel does not appear as an attorney conjunction with all Commission of- in any proceeding before the Commis- fices to ensure that lawmakers are in- sion and takes no part in the prepara- formed of regulatory decisions and tion of evidence or argument presented policies and that the Commission is re- in such hearings. sponsive to Congressional inquiries for (b) The Office of the General Counsel technical information. The Office of provides legal assistance on matters in- Public Affairs and Government Rela- volving the Commission’s responsibil- tions also prepares Commissioners and ities; defends Commission decisions be- Commission staff when called upon to fore the courts; and advises the Com- provide Congressional testimony. mission on the legal aspects of pro- (2) Consumer Affairs. As the principal posed legislation, rulemaking, and source of outreach and education to policies on procurement, contracting, the public, the Office of Public Affairs personnel matters, ethics, and other internal legal matters.

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and Government Relations provides in- state and local government agencies, formation to postal consumers and as- and nongovernment entities for: sists in the resolution of rate and serv- (i) All matters relating to the pro- ice inquiries from members of the pub- motion of economy and efficiency in lic pursuant to part 3031 of this chap- the administration of, or the preven- ter. It supports the impartial resolution and detection of fraud and abuse tion of those inquiries through use of in, programs and operations adminis- the Postal Service’s Office of Consumer tered or financed by the Commission; Advocate and reports the results to the or Commission. The Office of Public Af- (ii) The identification and prosecu- fairs and Government Relations also tion of participants in such fraud and utilizes procedures available under the abuse; Commission’s rules and applicable law (6) Keep the Commission and Con- to assist relevant stakeholders in ap- gress fully and currently informed peals of Postal Service decisions to through reports concerning fraud and close or consolidate individual post of- other serious problems, abuses, and de- fices; maintains a record of service-re- ficiencies relating to programs and op- lated inquiries; and posts calendar up- erations administered or financed by dates and other public information on the Commission; recommend corrective the Commission’s Web site. action concerning such problems, (3) Communication. The Office of Pub- abuses, and deficiencies; and report on lic Affairs and Government Relations the progress made in implementing also develops public outreach strate- such corrective action. gies for the Commission, responds to (b) [Reserved] media inquiries, and disseminates information concerning Commission de- PART 3003—PRIVACY ACT RULES cisions and activities to the public. Sec. § 3002.16 Office of Inspector General. 3003.1 Purpose and scope. (a) The Office of Inspector General 3003.2 Definitions. has the duty and responsibility to: 3003.3 Procedures for requesting inspection, (1) Provide policy direction and con- copying, or correction. 3003.4 Response to a request. duct, supervise, and coordinate audits 3003.5 Appeals of denials of access or amend- and investigations relating to the pro- ment. grams and operations of the Commis- 3003.6 Fees. sion; 3003.7 Exemptions. (2) Review existing and proposed leg- AUTHORITY: Privacy Act of 1974 (Pub. L. 93– islation and regulations relating to 579), 5 U.S.C. 552a. programs and operations of the Com- mission; SOURCE: 64 FR 57982, Oct. 28, 1999, unless otherwise noted. (3) Make recommendations in semi- annual reports concerning the impact EDITORIAL NOTE: Nomenclature changes to of such legislation or regulations on part 3003 appear at 70 FR 48277, Aug. 17, 2005. the economy and efficiency of programs and operations administered or § 3003.1 Purpose and scope. financed by the Commission or on the This part implements the Privacy prevention and detection of fraud and Act of 1974 (5 U.S.C. 552a) by estab- abuse in the Commission’s programs lishing Commission policies and proce- and operations; dures that permit individuals to obtain (4) Recommend policies and conduct, access to and request amendment of in- supervise, or coordinate other activi- formation about themselves that is ties carried out or financed by the maintained in systems of records. This Commission for the purpose of pre- part does not expand or restrict any venting and detecting fraud and abuse rights granted under the Privacy Act in its programs and operations; of 1974. (5) Recommend policies and coordinate communications between the § 3003.2 Definitions. Commission and other federal agencies, For purposes of this part:

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(a) Commission means the Postal Reg- (5) Must, if requested by the chief ad- ulatory Commission. ministrative officer, provide additional (b) Individual, record, and system of proof of identification. records have the meanings specified in 5 U.S.C. 552a(a). § 3003.4 Response to a request. (c) Day means a calendar day and (a) In the case of a request for notice does not include Saturdays, Sundays, of the existence of a record, the chief and legal holidays. administrative officer shall respond within 10 days of receipt of a request [64 FR 57982, Oct. 28, 1999, as amended at 72 and shall inform the individual wheth- FR 33165, June 15, 2007] er a system of records maintained by § 3003.3 Procedures for requesting in- the Commission contains such a spection, copying, or correction. record. (b) In the case of a request for access (a) An individual who— to a record or for a copy of a record, (1) Wishes to know whether a Com- the chief administrative officer shall mission system of records contains a acknowledge the request within 10 days record about him or her, and shall promptly thereafter— (2) Seeks access to a Commission (1) Fulfill the request by mail or ar- record about him or her that is main- range for an inspection by the retained in a system of records (including quester in the Commission’s offices; or the accounting of disclosures), or (2) If the request is denied, notify the (3) Seeks to amend a record about requester of the denial, the reasons for him or her that is maintained in a sys- the denial, the procedures for appealing tem of records, may file a written re- the refusal, and the name and address quest with the chief administrative of- of the Chairman of the Commission ficer of the Commission at the Com- who will consider an appeal. mission’s current address (901 New (c) In the case of a request for amend- York Avenue NW., Suite 200, Wash- ment, the chief administrative officer ington, DC 20268–0001). The request shall: should state on the outside of the enve- (1) Acknowledge the request in writ- lope and in the request that it is a Pri- ing within 10 days; vacy Act request. (2) Promptly review the record; and (b) A request for amendment must (3)(i) Make any requested amendment describe the information sought to be of a record found to be not accurate, amended and the specific reasons for relevant, timely, or complete; notify the amendment. the requester of the change and provide (c) A requester— a copy of the corrected record; and no- (1) May request an appointment to tify any previous recipient of the inspect records at the Commission’s of- record (excluding Commission staff fices between the hours of 8 a.m. and who obtained the record in the per- 4:30 p.m. on any day; formance of their duties and recipients (2) Must present suitable identifica- under the Freedom of Information Act) tion, such as a driver’s license, em- of any change; or ployee identification card, or Medicare (ii) Inform the requester of a refusal card; to amend the record, the reasons for (3) If accompanied by another indi- the refusal, the procedures for appeal- vidual, must sign a statement, if re- ing the refusal, and the name and ad- quested by the chief administrative of- dress of the Chairman of the Commis- ficer, authorizing discussion of his or sion who will consider an appeal. her record in the presence of that individual; § 3003.5 Appeals of denials of access or (4) Who files a request by mail must amendment. include his or her date of birth, dates (a) If a request for access to or of employment at the Commission (if amendment of a record is denied, the applicable), and suitable proof of iden- requester may file a written appeal tity, such as a facsimile of a driver’s li- with the Chairman of the Commission. cense, employee identification card, or The Chairman will decide each appeal Medicare card; and within 30 days of receipt unless the

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Chairman has, for good cause, extended 3004.61 Freedom of Information Act Public the period for another 30 days. Liaison. (b) If an appeal is denied, the re- 3004.70 Third-party submission of non-pub- quester will be notified of the decision, lic materials. the reasons for the denial, the right to AUTHORITY: 5 U.S.C. 552; 39 U.S.C. 503. file a concise statement of disagree- SOURCE: 74 FR 57256, Nov. 5, 2009, unless ment, the procedures for filing a state- otherwise noted. ment of disagreement, the subsequent uses of a statement of disagreement, § 3004.1 Purpose. and of the right to seek judicial review (a) This part implements the Free- in accordance with subsection (g) of dom of Information Act (FOIA), 5 the Privacy Act. U.S.C. 552, and describes the procedures by which a person may request copies § 3003.6 Fees. of Commission records pursuant to The first copy of any record fur- FOIA. It contains the rules that the nished under the Privacy Act of 1974 Commission follows in handling re- will be provided without charge. Addi- quests, such as the amount of time it tional copies will be charged at the has to make a determination regarding cost of reproduction. release of records and what fees to charge. It also describes how a sub- § 3003.7 Exemptions. mitter of trade secrets or confidential The Postal Regulatory Commission business information can identify in- has not established any exempt system formation that the submitter believes of records. to be exempt from disclosure under 5 [64 FR 57982, Oct. 28, 1999, as amended at 72 U.S.C. 552(b). FR 33165, June 15, 2007] (b) Information required to be published or made available pursuant to 5 PART 3004—PUBLIC RECORDS AND U.S.C. 552(a)(1) and (a)(2) may be found FREEDOM OF INFORMATION ACT in 39 CFR part 3002, and on the Com- mission’s Web site at http:// www.prc.gov. The Commission’s guide Sec. 3004.1 Purpose. to FOIA, all required FOIA indexes, 3004.2 Presumption of openness. and recent annual FOIA reports are 3004.3 How to make a request. also available on the Web site. 3004.10 Public records. (c) Section 3004.10 identifies records 3004.11 Use of exemptions. that the Commission has determined to 3004.12 Reading room. be public. 3004.13 Notice and publication of public information. § 3004.2 Presumption of openness. 3004.20 Commission procedure when served a subpoena. (a) The Commission shall be 3004.30 Relationship among the Freedom of proactive and timely in identifying and Information Act, the Privacy Act, and posting public records and other fre- the Commission’s procedures for accord- quently requested records to its Web ing appropriate confidentiality. site. 3004.40 Hard copy requests for records and for expedited processing. (b) It is the stated policy of the Com- 3004.41 Electronic requests for records and mission that FOIA requests shall be ad- for expedited processing. ministered with a clear presumption of 3004.42 Tracking of requests. openness. The Commission will only 3004.43 Response to requests. withhold information if it reasonably 3004.44 Appeals. foresees that disclosure would harm an 3004.45 Extension of response time limit. interest protected by a FOIA exemp- 3004.50 Fees—definitions as used in this part. tion, as enumerated in § 3004.11, or dis- 3004.51 Fees—request category. closure is otherwise prohibited by law. 3004.52 Fees—general provisions. [82 FR 12507, Mar. 6, 2017] 3004.53 Fee schedule. 3004.54 Procedure for assessing and col- § 3004.3 How to make a request. lecting fees. 3004.60 Chief Freedom of Information Act (a) To request Commission records, Officer. please contact the Secretary of the

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Commission via letter or use the online (4) Offers of proof, motions and stipu- request form provided on the Commis- lations made during a hearing; sion’s Web site at http://www.prc.gov/ (5) Exhibits received in evidence dur- foia/onlinerequest. ing a hearing; (b) Requests must describe the (6) Certifications to the Commission; records sought in sufficient detail to and enable the Commission to locate them (7) Anything else upon which action with a reasonable amount of effort. To of a presiding officer or the Commis- the extent possible, the requests should sion may be based. provide any specific information that (c) Proposed testimony or exhibits might assist the Commission in re- filed with the Commission but not yet sponding to the request. offered or received in evidence. (c) Requesters must provide contact (d) Presiding officer actions and all information to assist the Commission presiding officer correspondence and in communicating with them con- memoranda to or from anyone other cerning requests and responding to the than staff assigned to provide assist- request. ance to the presiding officer. (e) Commission decisions, reports, [82 FR 12507, Mar. 6, 2017] opinions, orders, notices, findings, de- § 3004.10 Public records. terminations and other actions in any matter or proceeding and all Commis- (a) Except as provided in § 3004.11 and sion minutes which have been ap- in § 3007.10 of this chapter, the public proved. records of the Commission include all (f) Commission correspondence relat- submissions and filings as follows: ing to any data or information request (1) Requests of the Postal Service for directed to the Postal Service. decisions or advisory opinions, notices, (g) Commission correspondence with public reports, complaints (both formal respect to the furnishing of data, infor- and informal), and other papers seek- mation, comments, or recommenda- ing Commission action; tions to or by another branch, depart- (2) Financial, statistical and other ment, or agency of the Government reports to the Commission, and other where furnished to satisfy a specific re- filings and submittals to the Commis- quirement of a statute or where made sion in compliance with the require- public by that branch, department, or ments of any statute, executive order, agency. or Commission rule, regulation or (h) Commission correspondence and order; reports on legislative matters under (3) All answers, replies, responses, ob- consideration by the Office of Manage- jections, protests, motions, stipula- ment and Budget or Congress, but only tions, exceptions, other pleadings, no- if and after authorized for release or tices, depositions, certificates, proofs publication by that office, the Commis- of service, transcripts and briefs in any sion, or the Member of Congress in- matter or proceeding; volved. (4) Exhibits, attachments and appen- (i) Commission correspondence on dices to, amendments and corrections the interpretation or applicability of of, supplements to, or transmittals or any statute, rule, regulation, decision, withdrawals of any of the foregoing; advisory opinion, or public report and issued by the Commission and letters (5) Commission correspondence re- of opinion on that subject signed by lated to the foregoing. the General Counsel and sent to per- (b) All other parts of the formal sons other than the Commission, a record in any matter or proceeding be- Commissioner, or any of the staff. fore the Commission and correspond- (j) Copies of all filings by the Com- ence related thereto, including: mission, and all orders, judgments, de- (1) Notices or Commission orders ini- crees, and mandates directed to the tiating the matter or proceeding; Commission in court proceedings in- (2) Designation of the presiding offi- volving Commission action and all cor- cer; respondence with the courts, or clerks (3) Transcript of hearings; of court.

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(k) The Commission’s administrative would constitute a clearly unwarranted and operating manuals as issued. invasion of personal privacy. (h) Records or information compiled § 3004.11 Use of exemptions. for law enforcement purposes, the re- (a) Under FOIA, there are nine ex- lease of which: emptions which may be used to protect (1) Could reasonably be expected to information from disclosure. The Com- interfere with enforcement pro- mission has paraphrased the exemp- ceedings; tions in paragraphs (b) through (j) of (2) Would deprive a person of a right this section. These paraphrases are not to a fair trial or an impartial adjudica- intended to be interpretations of the tion; exemptions. (3) Could reasonably be expected to (b) National security information constitute an unwarranted invasion of concerning national defense or foreign personal privacy; policy, provided that such information (4) Could reasonably be expected to has been properly classified, in accord- disclose the identity of a confidential ance with an Executive Order. source and investigations or prosecu- (c) Information related solely to the tions if such disclosure could reason- internal personnel rules and practices ably be expected to risk circumvention of an agency. of the law; or (d) Information specifically exempted (5) Could reasonably be expected to from disclosure by statute, for exam- endanger the life or physical safety of ple, 39 U.S.C. 410(c): any individual. (1) The name or address, past or present, of any postal patron; (i) Information contained in or re- (2) Information of a commercial na- lated to examination, operating, or ture, including trade secrets, whether condition reports, prepared by, or on or not obtained from a person outside behalf of, or for the use of an agency the Postal Service, which under good responsible for regulating or super- business practice would not be publicly vising financial institutions. disclosed; (j) Geological and geophysical infor- (3) Information prepared for use in mation and data, including maps, con- connection with the negotiation of col- cerning wells. lective bargaining agreements under 39 (k) It is Commission policy to make U.S.C. chapter 12, or minutes of, or records publicly available upon re- notes kept during negotiating sessions quest, unless the record qualifies for conducted under such chapter; exemption under one or more of the (4) Information prepared for use in nine exemptions. It is Commission pol- connection with proceedings under 39 icy to make discretionary releases; U.S.C. chapter 36; and however, a discretionary release is not (5) The reports and memoranda of normally appropriate for records ex- consultants or independent contractors empt under exemptions identified in except to the extent that they would be paragraphs (b), (d), (e), (g), (h)(3) and required to be disclosed if prepared (h)(5) of this section. The remainder of within the agency. the exemptions are discretionary. (e) Trade secrets and commercial or (l) The following are examples of in- financial information which is ob- formation that is not part of the public tained from a person and is privileged records of the Commission: or confidential. (1) Written communications between (f) Inter-agency or intra-agency or among the Commission, members of memoranda or letters that would not the Commission, the Secretary, and ex- be available by law to a party other pressly designated staff members while than an agency in litigation with the particularly assigned, in accordance agency. This exemption shall not apply with all applicable legal requirements, to records created 25 years or more be- to aid the Commission in the drafting fore the date on which the records were of any decision, notice, order, advisory requested. opinion, or public report and findings, (g) Personnel and medical files and with or without opinion, or report in similar files, the disclosure of which any matter or proceeding;

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(2) Reports and records compiled or § 3004.20 Commission procedure when created by the Inspector General of the served a subpoena. Commission designated as confidential; If an officer or employee of the Com- and mission is served with a subpoena (3) Unaccepted offers of settlement in duces tecum, material that is not part any matter or proceeding unless or of the public files and records of the until made public by act of the offeror. Commission shall be produced only as [74 FR 57256, Nov. 5, 2009, as amended at 82 authorized by the Commission. Service FR 12507, Mar. 6, 2017] of such a subpoena shall immediately be reported to the Commission with a § 3004.12 Reading room. statement of all relevant facts. The (a) The Commission maintains a pub- Commission will thereupon enter such lic reading room at its offices (901 New order or give such instructions as it York Avenue, NW., Suite 200, Wash- deems advisable. ington, DC 20268–0001) and an electronic reading room at http://www.prc.gov. The § 3004.30 Relationship among the Free- public reading room at its offices is dom of Information Act, the Privacy Act, and the Commission’s proce- open during business hours. dures for according appropriate (b) The records available for public confidentiality. inspection and printing include, for example, decisions; reports; opinions; or- (a) Coverage. FOIA applies to all ders; notices; findings; determinations; Commission records and provides the statements of policy; copies of selected public with access to government records released under FOIA; indexes records. required to be maintained under FOIA; (b) Requesting records subject to the and records described in § 3004.10 relat- Privacy Act. A request by an individual ing to any matter or proceeding before for his or her own records contained in the Commission. a system of records is governed by the (c) The Commission shall make avail- Privacy Act. Release will first be con- able, in an electronic and physical sidered under the Privacy Act pursuant reading room, records previously re- to part 3003 of this chapter. However, if leased under FOIA and which the Com- there is any record that the Commis- mission determines are or are likely to sion need not release under the Privacy become of significant public interest, Act, the Commission will also consider including agency records that have the request under FOIA, and will re- been requested three or more times. lease the record if FOIA requires it. (c) Requesting another individual’s [74 FR 57256, Nov. 5, 2009, as amended at 82 record. Request for records of individ- FR 12508, Mar. 6, 2017] uals which may not be granted under the Privacy Act shall be considered § 3004.13 Notice and publication of under FOIA. public information. (1) If the Commission makes a disclo- (a) Decisions, advisory opinions, or- sure in response to a request and the ders, public reports, and agency records disclosure is permitted by the Privacy that have been requested three or more Act’s disclosure provision, 5 U.S.C. times will be made available to the 552a(b), the Commission will rely on public by posting on the Commission’s the Privacy Act to govern the disclo- Web site at http://www.prc.gov. sure. (b) Descriptions of the Commission’s (2) In some circumstances, the Pri- organization, its methods of operation, vacy Act may prohibit the Commis- statements of policy and interpreta- sion’s ability to release records which tions, and procedural and substantive may be released under FOIA. rules, are published in the FEDERAL (d) Requesting a Postal Service record. REGISTER publication system, and are The Commission maintains custody of available on the Commission’s Web records that are both Commission and site, http://www.prc.gov. Postal Service records. [74 FR 57256, Nov. 5, 2009, as amended at 82 (1) A request made pursuant to FOIA FR 12508, Mar. 6, 2017] for records designated as non-public by

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the Postal Service shall be referred to quest’’ both in the text of the request the Postal Service; and and on the envelope; and (2) A request made pursuant to part (3) Certify the statement of compel- 3007 of this chapter for records des- ling need to be true and correct to the ignated as non-public by the Postal best of the requester’s knowledge and Service shall be considered under the belief. At its discretion, the Commis- applicable standards set forth in that sion may waive the requirement for part. certification. (e) Requesting a third-party record submitted under seal. The Commission § 3004.41 Electronic requests for maintains records of a confidential na- records and for expedited proc- ture submitted by third parties as non- essing. public materials. (a) An electronic request for records (1) A request made pursuant to FOIA must: for records designated as non-public by (1) Be submitted using the Commis- a third party shall be considered in sion’s online FOIA request form at light of all applicable exemptions; and http://www.prc.gov; (2) A request made pursuant to part (2) Reasonably describe the records 3007 of this chapter for records designated as non-public by a third party sought; shall be considered under the applica- (3) Include a daytime telephone num- ble standards set forth in that part. ber and valid e-mail address; and (4) Identify the request category § 3004.40 Hard copy requests for under § 3004.51. records and for expedited proc- (b) Expedited processing. A person sat- essing. isfying the requirements of paragraph (a) A hard copy request for records (a) of this section may request expe- must: dited processing at the time of the ini- (1) Be in writing; tial request or at a later time by: (2) Include the name and address of (1) Demonstrating a compelling need the requester; as defined in 5 U.S.C. 552(a)(6)(E)(v); (3) Reasonably describe the records (2) Clearly identifying the request as sought; an ‘‘Expedited Freedom of Information (4) Include a daytime telephone num- Act Request’’ in the body of the sub- ber; mission; and (5) Be clearly identified as ‘‘Freedom (3) Certifying the statement of com- of Information Act Request’’ both in pelling need to be true and correct to the text of the request and on the enve- the best of the requester’s knowledge lope; and belief. At its discretion, the Com- (6) Identify the request category mission may waive the requirement for under § 3004.51; and certification. (7) Be submitted to the Secretary of the Commission at the offices of the § 3004.42 Tracking of requests. Commission (901 New York Avenue, (a) Upon receipt of a request, the NW., Suite 200, Washington, DC 20268– 0001). Commission shall assign a unique (b) Expedited processing. A person tracking number to the request and demonstrating a compelling need as de- within 3 days (excluding Saturdays, fined in 5 U.S.C. 552(a)(6)(E)(v) may re- Sundays and legal holidays) provide quest expedited processing at the time that number to the person making the of an initial request (or appeal) or at a request. later time. In addition to the require- (b) Any person with a tracking num- ments in paragraph (a) of this section, ber may call or e-mail the Commis- an expedited request for records must: sion’s Office of Public Affairs and Gov- (1) Demonstrate a compelling need as ernment Relations (PAGR) to check defined in 5 U.S.C. 552(a)(6)(E)(v); the status of a request. PAGR may be (2) Be clearly identified as ‘‘Expe- e-mailed at PRC–[email protected] or dited Freedom of Information Act Re- called at 202–789–6800.

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§ 3004.43 Response to requests. (1) Grant the request for expedited processing and process the request for (a) Within 20 days (excluding Satur- records as soon as practicable; or days, Sundays, and legal holidays) (2) Deny the request for expedited after receipt of a request for a Commis- processing by informing the individual sion record, the Secretary or Assistant of: Secretary will notify the requester of (i) The denial in writing; its determination to grant or deny the (ii) The right to appeal the denial to request and the right to seek assist- the Commission in writing; and ance from the Commission’s FOIA Pub- (iii) The procedures for appealing the lic Liaison. In the case of an adverse denial. determination, the Commission will (3) Any request for records that has notify the requester of their right to been denied expedited processing will appeal and right to seek dispute resolu- be processed in the same manner as a tion services from the Commission’s request that did not seek expedited FOIA Public Liaison or the Office of processing. Government Information Services. (f) Where a compelling need is not (b) Granting request. If granting the shown in an expedited request as speci- request, the Secretary, or Assistant fied in § 3004.41(b)(1), the Commission Secretary will notify the requester of may grant requests for expedited proc- any fees that must be paid. essing at its discretion. (c) Partial granting of request. If the [74 FR 57256, Nov. 5, 2009, as amended at 82 Commission is unable to grant the re- FR 12508, Mar. 6, 2017] quest in its entirety, any reasonably segregable portion of the request shall § 3004.44 Appeals. be provided, with deleted portions (a) The Commission may review any treated as specified in paragraph (d) of decision of the Secretary or Assistant this section, and the Secretary or As- Secretary on its own initiative. sistant Secretary will notify the re- (b) A requester who seeks to appeal quester of any fees that must be paid. any adverse determination must file an (d) Denying request. If denying the re- appeal with the Commission within 1 quest, in whole or in part, the Sec- year of the date of the Commission’s retary or Assistant Secretary will in- response. form the requester in writing of: (c)(1) The Commission will grant or (1) The reason for the denial, includ- deny the appeal in writing within 20 ing each exemption used as a basis for days (excluding Saturdays, Sundays, withholding of the records sought and, and legal holidays) of the date the ap- if applicable, the harm to an interest peal is received. If on appeal the ad- protected by a statutory exemption; verse determination is upheld, the (2) An estimate of the volume of re- Commission will notify the requester quested matter that was denied: of the availability of dispute resolution (i) If disclosure of a record has been services from the Office of Government partially denied, the amount of infor- Information Services as a voluntary, mation deleted will be indicated on the non-exclusive alternative to litigation released portion if technically feasible; and the provisions for judicial review and of that determination pursuant to 5 (ii) If revealing the amount or loca- U.S.C. 552(c). tion of a denied record will harm an in- (2) The Commission will expedi- terest protected by an exemption, then tiously consider an appeal of a denial the description of the amount or loca- of expedited processing. tion of deleted information shall be [74 FR 57256, Nov. 5, 2009, as amended at 82 withheld. FR 12508, Mar. 6, 2017] (3) The right to appeal the denial to the Commission within 1 year. § 3004.45 Extension of response time (e) Expedited processing. Within 10 limit. days (excluding Saturdays, Sundays (a) The Commission may extend the and legal holidays) after receipt of a time limit for a response to a request request for expedited processing, the or appeal for up to 10 business days due Secretary or Assistant Secretary will: to unusual circumstances, as specified

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in 5 U.S.C. 552(a)(6)(B)(iii). In such a tional education, which operates a pro- case, the Commission will notify the gram or programs of scholarly re- requester in writing of the unusual cir- search. cumstance causing the extension and Noncommercial scientific institution the date by which the Commission esti- means an institution, not operated on mates that the request can be proc- a commercial basis (as referenced essed. above), which is operated solely for the (b) If an extension will exceed 10 busi- purpose of conducting scientific re- ness days, the Commission will: search whose results are not intended (1) Provide the requester with an op- to promote any particular product or portunity to limit the scope of the re- industry. quest or to arrange an alternative Representative of the news media timeframe for processing the request or means any person or entity that gath- a modified request. The applicable time ers information of potential interest to limits are not tolled while the Commis- a segment of the public, uses its edi- sion waits for a response from the re- torial skills to turn the raw materials quester under this subsection; and into a distinct work, and distributes (2) Make its FOIA Public Liaison available to the requester and apprise that work to an audience. The term the requester of their right to seek dis- ‘‘news’’ means information that is pute resolution services from the Office about current events or that would be of Government Information Services. of current interest to the public. Exam- ples of news media entities are tele- [82 FR 12508, Mar. 6, 2017] vision or radio stations broadcasting to the public at large and publishers of § 3004.50 Fees—definitions as used in this part. periodicals (but only if such entities qualify as disseminators of ‘‘news’’) Commercial use means a request from who make their products available for or on behalf of a person seeking infor- purchase or by subscription or by free mation for a use or purpose that fur- distribution to the general public. thers the commercial, trade, or profit These examples are not all inclusive interests of the requester or person on and may include alternate media to whose behalf the request is made. In disseminate news. A freelance jour- determining the applicability of this nalist shall be regarded as working for term, the use to which a requester will a news media entity if the journalist put the document is considered first; can demonstrate a solid basis for ex- where reasonable doubt exists as to the pecting publication through that enti- use, the Commission may seek clarity (e.g., by a publication contract or fication before assigning the request to prior publication record), whether or a category. not the journalist is actually employed Direct costs means the expenditures by the entity. the Commission incurs in searching for, duplicating, and, where applicable, Review means examining documents reviewing documents to respond to a located in response to a request to de- request. They include (without limita- termine whether any portion is exempt tion) the salary of the employee(s) per- from disclosure, and processing or pre- forming work (the basic pay rate of paring documents for release, but not such employee(s) plus 16 percent to determination of general legal or pol- cover benefits). icy issues regarding application of ex- Duplication means copying the docu- emptions. ments necessary to respond to a re- Search includes all time spent look- quest. Such copies may be paper, ing for material responsive to a re- microform, audiovisual, or machine- quest, including identification of pages readable. or lines within documents. The term Educational institution means a pre- covers both manual and computerized school, a public or private elementary searching. or secondary school, an institution of graduate or undergraduate higher edu- § 3004.51 Fees—request category. cation, an institution of professional (a) The level of fee charged depends education, and an institution of voca- on the request category.

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(1) Commercial use. A request appear- (c) No requester will be charged a fee ing to be for commercial use will be when the Commission determines that charged the full direct costs of search- the cost of collecting the fee would ing for, reviewing, and duplicating the equal or exceed the fee itself. In deter- records sought. mining whether cost of collection (2) Educational and noncommercial sci- would equal or exceed the fee, the al- entific institutions. A request from an lowance for 2 hours’ search or 100 pages educational or noncommercial sci- of duplication will be made before com- entific institution will be charged for paring the remaining fee and the cost the cost of duplication only (excluding of collection. charges for the first 100 pages). To be (d) Records will be provided without eligible for this category, a requester charge or at a reduced charge if disclo- must show that the request is made sure of the information is in the public under the auspices of a qualifying in- interest because it is likely to constitution and that the records are not tribute significantly to public under- sought for commercial use but are in standing of the operations or activities furtherance of scholarly (in the case of of the government and is not primarily educational institutions) or scientific in the commercial interest of the re- (in the case of noncommercial sci- quester. entific institutions) research. (e) No requester will be charged a fee (3) News media. A request from a rep- after any search or response which oc- resentative of the news media will be curs after the applicable time limits as charged the cost of duplication only described in §§ 3004.43 and 3004.44, un- (excluding charges for the first 100 less: pages). (1) The Commission extends the time (4) Other requesters. A request from limit for its response due to unusual any other person will be charged the circumstances, pursuant to § 3004.45(a), full direct cost of searching for, review- and the Commission completes its re- ing, and duplicating records responsive sponse within the extension of time to the request, except that the first 100 provided under that section; or pages of duplication and the first 2 (2) The Commission extends the time hours of search/review will be furnished limit for its response due to unusual without charge. circumstances and more than 5,000 (b) Privacy Act. A request by an indi- pages are necessary to respond to the vidual for his or her own records in a request and the Commission has dis- system of records will be charged fees cussed with the requester how they as provided under the Commission’s could effectively limit the scope of the Privacy Act regulations in part 3003 of request or made at least three good this chapter. faith attempts to do so; or (3) A court has determined that ex- § 3004.52 Fees—general provisions. ceptional circumstances exist and ex- (a) The Commission may charge cused the Commission from responding search fees even if no records are found by court order. or if the records found are exempt from (f) The Commission may, however, disclosure. charge fees for review, and in some (b) Except in the case of commercial cases duplication, for a partial grant of use requesters, the first 100 pages of du- a request while it reviews records that plication and the first 2 hours of search may be exempt and may be responsive time are provided without charge. to the request, so long as the partial (1) A page for these purposes is a grant is made within the applicable letter- or legal-size sheet, or the equiv- time limits. alent amount of information in a me- [74 FR 57256, Nov. 5, 2009, as amended at 82 dium other than paper copy. FR 12508, Mar. 6, 2017] (2) Search time for these purposes refers to manual searching; if the search § 3004.53 Fee schedule. is performed by computer, the 2 hours (a) Fees will be calculated as follows: provided without charge will be equal (1) Manual search. At the salary rate to 2 hours’ salary of the person per- (basic pay plus 16 percent) of the em- forming the search. ployee(s) making the search. Search

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time may be charged for even if the day after the bill was sent. Receipt of Commission fails to locate records or if a fee by the Commission, whether proc- records located are exempt from disclo- essed or not, will stay the accrual of sure. interest. (2) Computer search. At the direct cost of providing the search, including com- § 3004.60 Chief Freedom of Informa- puter search time directly attributable tion Act Officer. to searching for records responsive to The Commission designates the Sec- the request runs and employee salary retary of the Commission as the Chief apportionable to the search. FOIA Officer. The Chief FOIA Officer (3) Review (commercial use). At the sal- shall be responsible for the administra- ary rate (basic pay plus 16 percent) of tion of and reporting on the Commis- the employee(s) conducting the review. sion’s Freedom of Information Act pro- Charges are imposed only for the re- gram. view necessary at the initial administrative level to determine the applica- § 3004.61 Freedom of Information Act bility of any exemption, and not for re- Public Liaison. view at the administrative appeal level The Commission designates the Di- of an exemption already applied. rector of the Office of Public Affairs (4) Duplication. At 10 cents per page and Government Relations or his or for paper copy, which the Commission her designee as the FOIA Public Liai- has found to be the reasonable direct son who shall assist in the resolution cost thereof. For copies of records pre- of any dispute between a requester and pared by computer the direct cost of the Commission. The FOIA Public Li- production, including employee time, aison may be contacted via e-mail at will be charged. [email protected] or telephone at 202– (5) Additional services. Postage, insur- 789–6800. ance, and other additional services that may be arranged for by the re- § 3004.70 Third-party submission of quester will be charged at actually in- non-public materials. curred cost. (a) Overlap with treatment of non-pub- (b) In addition to the fee waiver pro- lic materials. Any person who submits visions of § 3004.52(d), fees may be materials to the Commission (sub- waived at the discretion of the Com- mitter) that the submitter reasonably mission. believes to be exempt from public disclosure may submit materials under § 3004.54 Procedure for assessing and seal and lodge an application for non- collecting fees. public treatment as described in (a) Advance payment may be re- § 3007.10 of this chapter. quired if the requester failed to pay (b) Notice of request. Except as pro- previous bills in a timely fashion or vided in § 3004.30(d), if a FOIA request when the fees are likely to exceed $250. seeks materials designated as non- (1) Where the requester has pre- public materials, the Commission will viously failed to pay within 30 days of provide the submitter with notice of the billing date, the Commission may the request. The Commission may also require the requester to pay an ad- provide notice when it has reason to vance payment of the estimated fee to- believe that third-party materials pos- gether with either the past due fees sibly exempt from disclosure may fall (plus applicable interest) or proof that within the scope of any FOIA request. the past fees were paid. (c) Objections to disclosure. A sub- (2) When advance payment is re- mitter may file written objections to quired, the administrative time limits the request specifying all grounds for prescribed in 5 U.S.C. 552(a)(6) (§ 3004.43) withholding the information under begin only after such payment has been FOIA within 7 days of the date of the received. notice. If the submitter fails to respond (b) Interest at the rate published by to the notice, the submitter will be the Secretary of the Treasury as pre- considered to have no objection, be- scribed in 31 U.S.C. 3717 will be charged yond those objections articulated in its on unpaid fee bills starting on the 31st application for nonpublic treatment

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pursuant to § 3007.10 of this chapter, to § 3005.2 Terms defined for purposes of the disclosure of the information. this part. (d) Notice of decision. If, after consid- (a) Administrative law judge means an ering the submitter’s objections to dis- administrative law judge appointed by closure the Commission decides to dis- the Commission under 5 U.S.C. 3105. close the information, it will give the (b) Chairman means the Chairman of submitter written notice of the deci- the Commission. sion and a brief explanation of the rea- (c) Covered person means an officer, sons for not sustaining the submitter’s employee, agent, or contractor of the objections. The actual disclosure will Postal Service. not be made before 3 days after publi- (d) Designated Commissioner means cation of the Commission’s decision. any Commissioner who has been designated by the Chairman to act under PART 3005—PROCEDURES FOR this part. COMPELLING PRODUCTION OF INFORMATION BY THE POSTAL Subpart B—Subpoenas SERVICE § 3005.11 General rule—subpoenas. Subpart A—General (a) Subject to the provisions of this part, the Chairman, any designated Sec. Commissioner, and any administrative 3005.1 Scope and applicability of other parts law judge may issue a subpoena to any of this title. covered person. 3005.2 Terms defined for purposes of this (b) The written concurrence of a ma- part. jority of the Commissioners then hold- Subpart B—Subpoenas ing office shall be required before any subpoena may be issued under this sub- 3005.11 General rule—subpoenas. part. When duly authorized by a major- 3005.12 Subpoenas issued without receipt of ity of the Commissioners then holding a third-party request. office, a subpoena shall be issued by 3005.13 Subpoenas issued in response to a the Chairman, a designated Commis- third-party request. sioner, or an administrative law judge. 3005.14 Service of subpoenas. (c) Subpoenas issued pursuant to this 3005.15 Duties in responding to a subpoena. subpart may require the attendance 3005.16 Enforcement of subpoenas. and presentation of testimony or the Subpart C—Depositions and Written production of documentary or other Interrogatories evidence with respect to any proceeding conducted by the Commission 3005.21 Authority to order depositions and under title 39 of the United States Code responses to written interrogatories. or to obtain information for prepara- APPENDIX A TO PART 3005—SUBPOENA FORM tion of a report under that title. (d) Subpoenas issued pursuant to this AUTHORITY: 39 U.S.C. 503; 504; 3651(c); 3652(d). subpart shall include such conditions as may be necessary or appropriate to SOURCE: 75 FR 22107, Apr. 27, 2010, unless protect a covered person from oppres- otherwise noted. sion, or undue burden or expense, including the following: Subpart A—General (1) That disclosure may be had only on specified terms and conditions, in- § 3005.1 Scope and applicability of cluding the designation of the time or other parts of this title. place; (a) The rules in this part govern the (2) That certain matters not be in- procedures for compelling the produc- quired into, or that the scope of disclo- tion of information by the Postal Serv- sure be limited to certain matters; ice pursuant to 39 U.S.C. 504(f). (3) That disclosure occur with no one (b) Part 3001, subpart A, of this chap- present except persons designated by ter applies unless otherwise stated in the Commission; this part or otherwise ordered by the (4) That a trade secret or other con- Commission. fidential research, development, or

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commercial information not be re- the Commission may request the vealed or be revealed only in a des- issuance of a subpoena to a covered ignated way as provided in part 3007 of person pursuant to § 3005.11. this chapter; and (1) Subpoenas may be requested to (5) Such other conditions deemed enforce an order to compel previously necessary and appropriate under the issued pursuant to the rules of practice circumstances presented. with which the Postal Service has (e) Subpoenas shall be served in the failed to comply. manner provided by § 3005.14. (2) Requests for subpoenas under this section shall be made by written mo- § 3005.12 Subpoenas issued without re- tion filed with the presiding officer in ceipt of a third-party request. the manner provided in § 3001.21 of this (a) A subpoena duly authorized by a chapter. The Postal Service shall majority of the Commissioners then transmit a copy of the request to any holding office may be issued by the covered person that it deems likely to Chairman, a designated Commissioner, be affected by the request and shall or an administrative law judge under provide the person requesting the sub- § 3005.11 without a request having been poena with the name, business address made by a third party under § 3005.13. and business phone number of the per- (b) Except as provided in paragraph sons to whom the request has been (c) of this section, a subpoena shall not transmitted. be issued until after the covered person (3) Answers to the motion may be has been provided an opportunity to filed by the Postal Service, by any per- produce the requested information vol- son to whom the Postal Service has untarily. transmitted the request, and by any (c) A subpoena may be issued sum- other participant. Answers raising ob- marily without first providing an op- jections, including allegations of undue portunity to produce the requested in- burden or cost, must state with par- formation voluntarily if a delay in the ticularity the basis for such claims. issuance of the subpoena could unreasonably limit or prevent production of Answers shall be filed as required by the information being sought. § 3001.21(b) of this chapter. (d) Subpoenas issued under this sec- (4) The presiding officer shall forward tion shall be issued subject to the right copies of the motion and any responses of the Postal Service and other inter- to the Commission together with a rec- ested persons to file a motion pursuant ommendation of whether or not the re- to § 3001.21(a) of this chapter to quash quested subpoena should be issued and, the subpoena, to limit the scope of the if so, the scope and content thereof and subpoena, or to condition the subpoena conditions, if any, that should be as provided in § 3005.11(d). Such motion placed on the subpoena. Copies of the shall include any objections to the sub- presiding officer’s recommendation poena that are personal to the covered shall be served in accordance with person responsible for providing the in- § 3001.12 of this chapter. formation being sought. Motions alleg- (5) Following receipt of the materials ing undue burden or cost must state forwarded by the presiding officer, the with particularity the basis for such Commissioners shall determine wheth- claims. Answers to the motion may be er the requested subpoena should be filed by any interested person pursuant issued and, if so, whether any condi- to § 3001.21(b) of this chapter. Pending tions should be placed on the scope or the resolution of any such motion, the content of the subpoena or on the recovered person shall secure and main- sponses to the subpoena. The Commis- tain the requested information. sioners may, but are not required, to entertain further oral or written sub- § 3005.13 Subpoenas issued in re- missions from the Postal Service or the sponse to a third-party request. participants before acting on the re- (a) Procedure for requesting and issuing quest. In making their determination, subpoenas when hearings have been or- the Commissioners are not bound by dered. A participant in any proceeding any recommendation of a presiding of- in which a hearing has been ordered by ficer.

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(b) Procedure for requesting and issuing (c) Contents of requests for subpoenas. subpoenas when no hearings have been Each motion requesting the issuance of ordered. Any person may request the a subpoena shall include the following: issuance of a subpoena to a covered (1) A demonstration that the sub- person pursuant to § 3005.11 to enforce poena is being requested with respect an information request issued by the to a proceeding conducted by the Com- Commission or a Commissioner even mission under title 39 of the United though no hearings have been ordered States Code or that the purpose of the by the Commission. subpoena is to obtain information to be (1) A request for the issuance of a used by the Commission to prepare a subpoena shall be made by motion as report under title 39 of the United provided by § 3001.21 of this chapter. A States Code; copy of the request shall be served (2) A showing of the relevance and upon the Postal Service as provided by materiality of the testimony, docu- § 3001.12 of this chapter and by for- mentary or other evidence being warding a copy to the General Counsel sought; of the Postal Service, or such other (3) Specification with particularity of person authorized to receive process by any books, papers, documents, personal service, by Express Mail or writings, drawings, graphs, charts, pho- Priority Mail, or by First-Class Mail, tographs, sound recordings, images, or Return Receipt requested. The Postal other data or data compilations stored Service shall transmit a copy of the re- in any medium from which information quest to any covered person that it can be obtained, including, without deems likely to be affected by the re- limitation, electronically stored infor- quest and shall provide the person re- mation which is being sought from the questing the subpoena with the name, covered person; business address and business phone (4) In situations in which a hearing number of the persons to whom the re- has been ordered, the request must in- quest has been transmitted. Proof of clude in addition to the information re- service of the request shall be filed quired by paragraphs (c)(1), (2) and (3) with the Secretary by the person re- of this section, a certification that the questing the subpoena. The Secretary covered person has failed to comply shall issue a notice of the filing of with an order compelling discovery proof of service and the deadline for fil- previously issued pursuant to the Com- ing answers to the request. mission’s rules of practice; and (2) Answers to the motion may be (5) In situations in which a hearing filed by the Postal Service, by any per- has not been ordered, the request must son to whom the Postal Service has include in addition to the information transmitted the request, and by any required by paragraphs (c)(1), (2) and (3) other person. Answers raising objec- of this section, an explanation of the tions, including allegations of undue reason for the request and the purposes burden or cost, must state with par- for which the appearance, testimony, ticularity the basis for such claims. documentary or other evidence is being Answers shall be filed as required by sought, and a certification that the § 3001.21(b) of this chapter. Postal Service has failed to comply (3) Following receipt of the request with a previously issued Commission and any answers to the request, the order or information request. Commissioners shall determine whether the requested subpoena should be § 3005.14 Service of subpoenas. issued and, if so, whether any condi- (a) Manner of service—(1) Existing tions should be placed on the scope or Postal Service officers and employees. In content of the subpoena or on the re- addition to electronic service as pro- sponses to the subpoena. The Commis- vided by § 3001.12(a) of this chapter, sioners may, but are not required, to subpoenas directed to existing Postal entertain further oral or written sub- Service officers and employees must be missions before acting. A majority of served by personal service upon the the Commissioners then holding office General Counsel of the Postal Service must concur in writing before a sub- or upon such other representative of poena may be issued. the Postal Service as is authorized to

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receive process. Upon receipt, the sub- dered by the Commission, and must be poena shall be transmitted and deliv- accompanied by certifications of: ered by the Postal Service to the exist- (i) The manner, date, and time of de- ing officers and employees responsible livery of the subpoena; for providing the information being (ii) The name, business address, tele- sought by the subpoena. Subpoenas phone number, and e-mail address of served upon the Postal Service and the perseon upon whom the subpoena transmitted to Postal Service officers was served; and and employees shall be accompanied by (iii) The return date of the subpoena. a written notice of the return date of (2) Proof of transmission. The Postal the subpoena. Service shall within 2 business days of (2) Existing Postal Service agents and transmission of a subpoena by the contractors. In addition to electronic Postal Service to an existing Postal service as provided by § 3001.12(a) of Service officer, employee, agent, or this chapter, subpoenas directed to ex- contractor pursuant to §§ 3001.14(a)(i) or isting Postal Service agents and con- (ii) of this chapter, or such shorter or tractors must be served by personal longer period ordered by the Commis- service upon the General Counsel of the sion, file with the Secretary a certifi- Postal Service or upon such other rep- cation of: resentative of the Postal Service as is (i) The manner, date, and time of de- authorized to receive process. Upon re- livery of the subpoena; ceipt, the subpoena shall be trans- (ii) The name, business address, tele- mitted and delivered by the Postal phone number, and e-mail address of Service to existing agents and contrac- the person to whom the subpoena was tors responsible for providing the infor- transmitted; and mation being sought by the subpoena. (iii) The return date of the subpoena. Service upon such agents and contractors shall be accompanied by a written (c) Notice of service, proof of trans- notice of the return date of the submission, and return date. The Secretary poena. shall post a notice of service and proof (3) Prior Postal Service officers, employ- of transmission upon the Commission’s ees, agents, and contractors. Subpoenas Web site which specifies the return directed to Postal Service officers, em- date of the subpoena. ployees, agents, and contractors who, § 3005.15 Duties in responding to a at the time the subpoena is issued, are subpoena. no longer officers or employees of the Postal Service or are no longer agents (a) A covered person responding to a or contractors in an existing agency or subpoena to produce documents shall contract relationship with the Postal produce them as they are kept in the Service, must be served by personal usual course of business or shall orga- service. Service upon such officers, em- nize and label them to correspond with ployees, agents, or contractors shall be the categories in the subpoena. accompanied by a written notice of the (b) If a subpoena does not specify the return date of the subpoena. form or forms for producing electroni- (4) Service arrangements. Arrange- cally stored information, a covered ments for service upon the Postal Serv- person responding to a subpoena must ice under §§ 3001.14(a)(1) or 14(a)(2) of produce the information in a form or this chapter or upon former Postal forms in which the covered person ordi- Service officers, employees, agents, or narily maintains it or in a form or contractors under § 3001.14(a)(3) of this forms that are reasonably usable. chapter shall be arranged either by the (c) A covered person responding to a Commission or by the third party who subpoena need not produce the same requested issuance of the subpoena. electronically stored information in (b) Return of service and proof of trans- more than one form. mission— (1) Return of service. Proof of (d) A covered person commanded to service under § 3001.14(a) of this chapter produce and permit inspection or copy- must be filed with the Secretary within ing of designated electronically stored 2 business days following service, un- information, books, papers, or docu- less a shorter or longer period is or- ments need not appear in person at the

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place of production or inspection un- subpart, the Commission may apply for less commanded to appear for deposi- an order to enforce its subpoena as per- tion, hearing, or trial. mitted by 39 U.S.C. 504(f)(3). (e) A covered person who fails or refuses to disclose or provide discovery of Subpart C—Depositions and information on the grounds that the information is privileged or subject to Written Interrogatories protection as a trade secret or other § 3005.21 Authority to order deposi- confidential research, development, or tions and responses to written in- commercial information must ex- terrogatories. pressly support all such claims and shall provide a description of the na- The Chairman, any designated Com- ture of the information and the poten- missioner, or any administrative law tial harm that is sufficient to enable judge may order the taking of deposi- the Commission to evaluate and deter- tions and responses to written inter- mine the propriety of the claim. rogatories by a covered person with re- (f) Request for confidential treat- spect to any proceeding conducted ment of information shall be made in under title 39 of the United States Code accordance with part 3007 of this chap- or to obtain information to be used to ter. prepare a report under that title. § 3005.16 Enforcement of subpoenas. In the case of contumacy or failure to obey a subpoena issued under this

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APPENDIX A TO PART 3005—SUBPOENA FORM

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PART 3007—TREATMENT OF NON- SOURCE: 74 FR 30943, June 29, 2009, unless PUBLIC MATERIALS PROVIDED BY otherwise noted. THE POSTAL SERVICE § 3007.1 Definitions for purposes of this part. Sec. (a) Authorized representative means 3007.1 Definitions for purposes of this part. any Commissioner designated by the 3007.2 Scope. Chairman, any administrative law 3007.3 Data or information requests. judge appointed by the Commission 3007.10 Submission of non-public materials under seal. under 5 U.S.C. 3105, and any employee 3007.20 Application for non-public treat- of the Commission designated by the ment. Commission. The authorized represent- 3007.21 Content of the Postal Service appli- ative may administer oaths, examine cation for non-public treatment. witnesses, take depositions, and re- 3007.22 Content of third-party application ceive evidence with respect to any pro- for non-public treatment. ceeding before the Commission under 3007.23 Treatment of non-public materials. title 39 of the U.S. Code or obtain infor- 3007.24 Commission access to non-public mation to assist the Commission in the materials. 3007.25 Use of non-public materials. preparation of a report or performance 3007.30 Termination of non-public status. of a function under title 39 of the U.S. 3007.31 Request for early termination of Code. non-public status. (b) Non-public materials means any in- 3007.32 Preliminary determination of non- formation, documents, and things filed public status. with the Commission which are 3007.33 Standard for decision for early ter- claimed to be exempt from disclosure mination of non-public status. by the Postal Service pursuant to 39 3007.40 Request for access to non-public ma- U.S.C. 504(g), 3652(f) or 3654(f), or terials. claimed to be protectable under Fed- 3007.41 Termination of access to non-public materials. eral Rule of Civil Procedure 26(c) by a 3007.42 Standard for decision for request for third party with a proprietary interest access to non-public materials. in the materials. Non-public materials 3007.50 Request for access to non-public ma- cease to be non-public if the status has terials relevant to compliance. expired or been terminated by the 3007.51 Termination of access to non-public Commission pursuant to this part. materials relevant to compliance. 3007.52 Standard for decision for request for § 3007.2 Scope. access to non-public materials relevant to compliance. The Commission or its authorized 3007.60 Limitations on access to non-public representative may require the Postal materials. Service to provide any information, 3007.61 Continued effectiveness of protective documents, and things in its possession conditions. or control, or any information, docu- 3007.62 Sanctions for violations of protec- ments, and things that it can obtain tive conditions. through reasonable effort and expense, APPENDIX A TO PART 3007—STATEMENT OF that are likely to materially assist the COMPLIANCE WITH PROTECTIVE CONDITIONS Commission in its conduct of pro- AUTHORITY: 39 U.S.C. 503, 504. ceedings, in its preparation of reports,

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or in performance of its functions person filing the non-public materials under title 39 of the U.S. Code. Infor- shall submit two copies consisting, mation, documents, and things the where practicable, of two paper hard Postal Service may be required to pro- copies as well as two copies in easily vide, include, but are not limited to, usable electronic form such as compact paper hard copy and electronically discs (CDs) or digital video discs stored data and materials—including (DVDs) of the non-public materials writings, notes, e-mails, drawings, which shall also be clearly marked graphs, charts, photographs, sound re- ‘‘Confidential. Do Not Post on Web.’’ cordings, images, and other data or Spreadsheets submitted in electronic data compilations—stored in any me- form shall display the formulas used, dium from which information can be their links to related spreadsheets, and obtained either directly or, if nec- shall not be password protected. All essary, after translation into a reason- workpapers or data shall be submitted ably usable form; or any tangible in a form, and be accompanied by suffi- things. cient explanation and documentation to allow them to be replicated using a § 3007.3 Data or information requests. publicly available PC application. Each (a) The Commission or its authorized page of any paper hard copy non-public representative may issue data or infor- materials submitted shall be clearly mation requests to the Postal Service marked as non-public. seeking information, documents, and (b) The person submitting the non- things covered by § 3007.2. A data or in- public materials shall also file an elec- formation request shall describe the tronic public (redacted) copy of the documents, information, and things non-public materials pursuant to sought, briefly explain the reason for § 3001.9 of this chapter. The electronic the request, and specify a timeframe public (redacted) copy of the materials for receiving the requested information which are not spreadsheets, data files, and materials. or programs must be submitted in a (b) The Commission or its authorized searchable electronic format, but need representative may issue data or infor- not be submitted in its native format. mation requests to third parties seek- As part of its publicly available elec- ing any information, document or tronic filing, the Postal Service must thing. A data information request shall appropriately redact materials that describe the documents, information contain both public and non-public in- and things sought, briefly explain the reason for the request, and specify a formation. For example, the Postal timeframe for receiving the requested Service may not identify a whole page materials. or a whole table as non-public mate- (c) Any person may request that the rials if the page or table contains both Commission issue a data or informa- public and non-public information, but tion request by filing a motion with must redact only the information it the Commission, pursuant to § 3001.21 of claims to be non-public. If practicable, this chapter, which describes the docu- the Postal Service shall sequentially ments, information, and things sought, number each page of the materials explains the reasons the Commission identified as non-public. should make the request, and includes (c) The Postal Service or third party a statement of how the materials shall use the graphical redaction sought are relevant and material to the (blackout) method for all redacted ma- Commission’s duties under title 39 of terials. Should the Postal Service wish the U.S. Code. to use any other method, it must state with particularity the competitive § 3007.10 Submission of non-public ma- harm associated with use of the graph- terials under seal. ical redaction method to justify the (a) Non-public materials shall not be use of any other method, and indicate filed electronically pursuant to § 3001.9 the number of lines or pages removed of this chapter, but shall be filed in at each redaction. sealed envelopes clearly marked ‘‘Con- (d) The Postal Service or third party fidential. Do Not Post on Web.’’ The shall mark each page, item, and thing,

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or portion thereof, that it seeks to pro- or if such an identification is sensitive, tect from disclosure in a manner rea- contact information for a Postal Serv- sonably calculated to alert custodians ice employee who shall provide notice to the confidential nature of the infor- to that third party; mation or materials. (3) A description of the materials claimed to be non-public in a manner § 3007.20 Application for non-public treatment. that, without revealing the materials at issue, would allow a person to thor- (a) Whenever the Postal Service files oughly evaluate the basis for the claim non-public materials with the Commis- that they are non-public; sion, it shall at the same time file an (4) Particular identification of the application for non-public treatment under § 3007.21. nature and extent of commercial harm (b) Before the Postal Service files alleged and the likelihood of such non-public materials with the Commis- harm; sion which the Postal Service has rea- (5) At least one specific hypothetical, son to believe may implicate a third- illustrative example of each alleged party proprietary interest, the Postal harm; Service shall inform each such third (6) The extent of protection from party: public disclosure deemed to be nec- (1) Of the nature and scope of the fil- essary; ing with the Commission, including the (7) The length of time deemed nec- pertinent docket, and essary for the non-public materials to (2) That it may address its confiden- be protected from public disclosure tiality concerns directly with the Com- with justification thereof; and mission. (8) Any other factors or reasons rel- (c) A third party with a proprietary evant to support the application. interest in the materials may, if it deems necessary, independently seek § 3007.22 Content of third-party appli- non-public treatment under § 3007.22. cation for non-public treatment. § 3007.21 Content of the Postal Service (a) The application for relief from application for non-public treat- public disclosure submitted by a party ment. other than the Postal Service must (a) Whenever the Postal Service files clearly identify all materials believed non-public materials with the Commis- to be protected from disclosure. sion, it must submit an application for (b) The application for non-public non-public treatment that clearly iden- treatment must include a specific and tifies all non-public materials and de- detailed statement setting forth: scribes the circumstances causing (1) A description of the materials them to be submitted to the Commis- claimed to be non-public in a manner sion. that, without revealing the materials (b) An application for non-public at issue, would allow a person to thor- treatment is to fulfill the burden of oughly evaluate the basis for the claim persuasion that the non-public mate- that they are non-public; rials should be withheld from the pub- (2) Particular identification of the lic. nature and extent of the harm alleged (c) The application for non-public and the likelihood of such harm; and treatment must include a specific and (3) Any other factors or reasons rel- detailed statement setting forth: (1) The rationale for claiming that evant to support the application. the materials are non-public, including § 3007.23 Treatment of non-public ma- the specific statutory basis for the terials. claim, and a statement justifying application of the provision(s); The Commission or its authorized (2) Identification, including name, representative will not publicly dis- phone number, and e-mail address for close or grant access to non-public ma- any third party who is known to have terials except as provided in the rules a proprietary interest in the materials, of this part.

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§ 3007.24 Commission and court access in favor of public disclosure, the argu- to non-public materials. ment utilizing the non-public mate- (a) Non-public materials may be dis- rials shall be filed under seal. closed to the following persons: (b) Any interested person, including (1) Members of the Commission; the Postal Service, may file a response (2) Commission employees including to the request within 7 days after such public representatives carrying out a request is filed, unless a longer period their appropriate responsibilities; is specified by the Commission. (3) Contractors, attorneys, or other (c) Unless the Commission otherwise subject matter experts assisting the provides, no reply to a response filed Commission in carrying out its statu- pursuant to paragraph (a) of this sec- tory duties; tion shall be filed. (4) Reviewing courts and their staffs; (d) Following the filing of responses, or (5) Court reporters, stenographers, or if any, the Commission will issue an persons operating audio or video re- order determining the appropriate de- cording equipment for such court re- gree of protection, if any, to be ac- porters or stenographers at hearings or corded to the materials claimed to be depositions. non-public by the Postal Service or (b) Access to non-public materials for third party with a proprietary interest all persons not covered by this section in the materials. is pursuant to §§ 3007.40 and 3007.50. § 3007.32 Preliminary determination of § 3007.25 Use of non-public materials. non-public status. Except as pursuant to this part, per- (a) Whenever the Postal Service files sons with access to non-public mate- non-public materials, the Commission rials under § 3007.24 may not: may issue a notice of preliminary de- (a) Use such materials for purposes termination concerning the appro- other than the purposes for which they priate degree of protection, if any, to are supplied. be accorded to such materials. (b) Permit anyone who is not allowed (b) Any interested person, including access under § 3007.24 to have access to the Postal Service, may file a response any such materials. to the Commission’s notice of prelimi- § 3007.30 Termination of non-public nary determination within 7 days after status. such a notice is filed, unless a longer Ten years after the date of filing period is specified. with the Commission, non-public mate- (c) Unless the Commission otherwise rials shall lose non-public status unless provides, no reply to a response filed the Commission or its authorized rep- pursuant to paragraph (b) of this sec- resentative enters an order extending tion shall be filed. the duration of that status. (d) Following the filing of responses, if any, the Commission will issue an § 3007.31 Request for early termi- order determining the appropriate de- nation of non-public status. gree of protection, if any, to be ac- (a) Any person may make a request corded to the materials claimed to be to the Commission that non-public ma- non-public by the Postal Service or terials be publicly disclosed. Each such third party with a proprietary interest request shall provide a specific and de- in the materials. tailed statement justifying why the non-public materials should be made § 3007.33 Standard for decision for public, giving specific recognition to early termination of non-public sta- any pertinent rationale(s) provided in tus. the application for relief submitted (a) In determining whether to pub- pursuant to § 3007.21 or § 3007.22. The re- licly disclose non-public materials filed quest, however, shall not publicly disclose any of the non-public materials. by the Postal Service, the Commission If it is necessary to use the non-public shall balance the nature and extent of materials to formulate the argument the likely commercial injury identified

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by the Postal Service against the pub- not contest a person’s access subject to lic interest in maintaining the finan- agreed protective conditions, the Com- cial transparency of a government en- mission or its authorized representa- tity competing in commercial markets. tive may issue an order allowing access (b) In determining whether to pub- subject to the agreed protective condi- licly disclose non-public materials in tions. which the Commission determines a third party has a proprietary interest, § 3007.41 Termination of access to non- the Commission shall balance the in- public materials. terests of the parties based on Federal (a) Except as provided in paragraph Rule of Civil Procedure 26(c). (b) of this section, access to non-public materials obtained under § 3007.40 ter- § 3007.40 Request for access to non- minates either when the Commission public materials. issues a final order or report in the rel- (a) During a Commission proceeding, evant proceeding or the person with- any person may file a motion pursuant draws or is otherwise no longer in- to § 3001.21 of this chapter requesting volved in the proceeding, whichever oc- access to non-public materials. The curs first. For purposes of this section, motion shall include: an order or report is not considered (1) A detailed statement providing final until after the possibility of judi- justification for access; and cial review expires. (2) A list of relevant affiliations, in- (b) Access to non-public materials cluding employment or other relation- shall continue for persons seeking con- ship (including agent, consultant or tinued access under § 3007.50. contractor) with the party requesting (c) Upon termination of access under access, and whether that party is affili- paragraph (a) of this section, all non- ated with the delivery services, com- public materials in a person’s posses- munications or mailing industries. sion must be destroyed, and the form (b) To expedite the process, each per- attached to the protective conditions son seeking access to non-public mate- certifying destruction must be exe- rials may attach to the motion an executed and filed with the Commission. cuted copy of protective conditions such as those provided in Appendix A § 3007.42 Standard for decision for re- of this part. quest for access to non-public mate- (1) If an executed copy of protective rials. conditions is attached and if actual no- In determining whether to grant a re- tice of the motion has been provided by quest for access to non-public mate- conversation or e-mail exchange to all rials, the Commission shall balance the persons identified by the Postal Serv- interests of the parties based on Fed- ice under § 3007.2(c), answers are due eral Rule of Civil Procedure 26(c). within 3 days after such a motion is filed. § 3007.50 Request for access to non- (2) In all other circumstances, an- public materials relevant to compli- swers are due within 7 days after such ance. a motion is filed. (a) Any person may file a motion pur- (c) Unless the Commission otherwise suant to § 3001.21 of this chapter re- provides, no reply to an answer filed questing access to, or continued access pursuant to paragraph (b)(1) or para- to, non-public materials relevant to graph (b)(2) of this section shall be compliance under 39 U.S.C. 3653. The filed. motion shall include: (d) Following the filing of answers, if (1) A detailed statement providing any: justification for access, including ref- (1) The Commission will issue an erence to the materials’ relevance to order allowing or denying access and compliance under chapter 36 of title 39 setting forth the appropriate protec- of the U.S. Code; and tive conditions, if any, to be accorded (2) A list of relevant affiliations, in- non-public materials, or cluding employment or other relation- (2) If the Postal Service or third ship (including agent, consultant or party with a proprietary interest does contractor) with the party requesting

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access, and whether that party is affili- attached to the protective conditions ated with the delivery services, com- certifying destruction must be exe- munications or mailing industries. cuted and filed with the Commission. (b) To expedite the process, each person seeking access to non-public mate- § 3007.52 Standard for decision for re- rials may attach to the motion an exe- quest for access to non-public mate- cuted copy of protective conditions rials relevant to compliance. such as those provided in Appendix A In determining whether to grant a re- of this part. quest for access to non-public mate- (1) If an executed copy of protective rials relevant to compliance, the Com- conditions is attached and if actual no- mission shall balance the interests of tice of the motion has been provided by the parties based on Federal Rule of conversation or e-mail exchange to all Civil Procedure 26(c). persons identified by the Postal Serv- ice under § 3007.21(c), answers are due § 3007.60 Limitations on access to non- within 3 days after such a motion is public materials. filed. To afford appropriate confidentiality (2) In all other circumstances, an- to non-public materials during any swers are due within 7 days after such stage of a proceeding before the Com- a motion is filed. mission, or in connection with any (c) Unless the Commission otherwise other purpose under title 39 of the U.S. provides, no reply to an answer filed Code, the Commission may, based on pursuant to paragraph (b)(1) or para- Federal Rule of Civil Procedure 26(c): graph (b)(2) of this section shall be (a) Prohibit the public disclosure of filed. the non-public materials; (d) Following the filing of answers, if (b) Specify terms for public disclo- any: sure of the non-public materials; (1) The Commission will issue an (c) Order a specific method for dis- order allowing or denying access and closing the non-public materials; setting forth the appropriate protec- (d) Restrict the scope of the disclo- tive conditions, if any, to be accorded sure of the non-public materials as the non-public materials, or they relate to certain matters; (2) If the Postal Service or third party with a proprietary interest does (e) Restrict who may have access to not contest a person’s access subject to non-public materials; agreed protective conditions, the Com- (f) Require that a trade secret be remission or its authorized representa- vealed only in a specific and limited tive may issue an order allowing access manner or to limited or specified per- subject to the agreed protective condi- sons; and tions. (g) Order other relief as appropriate including, but not limited to, sealing a § 3007.51 Termination of access to non- deposition or part of a proceeding. public materials relevant to compliance. § 3007.61 Continued effectiveness of (a) Access to non-public materials protective conditions. obtained under § 3007.50 terminates ei- (a) If a court or other administrative ther when the Commission issues its agency issues a subpoena or orders pro- next Annual Compliance Determina- duction of non-public materials which tion (ACD) or the person withdraws or a person has obtained under protective is otherwise no longer involved in the conditions ordered by the Commission, relevant proceeding, whichever occurs the target of the subpoena or order first. shall, within 2 days of receipt of the (b) Access to non-public materials subpoena or order for production, no- shall continue for persons seeking con- tify the Postal Service of the pendency tinued access under § 3007.50. of the subpoena or order to allow the (c) Upon termination of access under Postal Service time to object to the paragraph (a) of this section, all non- production or to seek a protective public materials in a person’s posses- order or seek such other relief as it sion must be destroyed, and the form deems appropriate.

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(b) Any person seeking to disclose tive order violates the terms of such non-public materials shall make a good order, the Commission or its author- faith effort to obtain protective condi- ized representative shall impose sanctions at least as effective as those set tions on the person who violated the forth in the Commission order estab- protective order or the individuals or lishing the protective conditions. entities on whose behalf the person was (c) Protective conditions ordered by acting, or both. The sanctions may in- the Commission or its authorized rep- clude: resentative shall remain in effect (1) Dismissing the proceeding in throughout any subsequent review un- whole or in part; less overridden by the action of the re- (2) Ruling by default against the per- viewing court. son who violated the protective order; § 3007.62 Sanctions for violations of and protective conditions. (3) Such other sanctions as the Com- (a) No person who has been granted mission or its authorized representa- access to materials subject to protective deems appropriate. tive conditions shall disseminate the (b) The Postal Service, in its discre- materials in whole or in part to any tion, may pursue any remedies avail- person not authorized to obtain access able to it under the law against the in- under the protective conditions im- dividual who violated the protective posed by the Commission. If a person order, or the individuals or entities on who has been granted access to such whose behalf the person was acting, or non-public materials under a protec- both.

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APPENDIX A TO PART 3007—STATEMENT OF COMPLIANCE WITH PROTECTIVE CONDITIONS

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PART 3008—EX PARTE (b) The rules in this section are not COMMUNICATIONS applicable to public inquiry (PI) proceedings, undertaken to gather infor- Sec. mation and which are not intended to 3008.1 Applicability. result in a binding Commission deci- 3008.2 Definition of ex parte communica- sion. tions. (c) The rules in this section are not 3008.3 Definition of a matter before the applicable to international mail (IM) Commission. proceedings undertaken pursuant to 3008.4 Definitions of persons subject to ex part 3017 of this chapter. parte communication rules. (d) The rules in this section are not 3008.5 Prohibitions. applicable to specifically identified 3008.6 Required action upon ex parte com- proceedings upon written directive munication. from the Commission. 3008.7 Penalty for violation of ex parte communication rules. § 3008.2 Definition of ex parte commu- AUTHORITY: 39 U.S.C. 404(d)(5); 503; 504; nications. 3661(c); 3662. (a) Subject to the exceptions speci- SOURCE: 81 FR 42541, June 30, 2016, unless fied in paragraph (b) of this section, ex otherwise noted. parte communications include all communications, oral or written (including § 3008.1 Applicability. electronic), between Commission deci- (a) The rules in this section are appli- sion-making personnel, and the Postal cable to all Commission proceedings Service or public stakeholders regard- except for the instances identified in ing matters before the Commission. paragraphs (b) through (d) of this sec- (b) Ex parte communications do not tion. include:

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(1) Documents filed using the Com- before the Commission until resolution mission’s docketing system; of the matter under reconsideration; (2) Communications during the (3) A matter is again before the Com- course of Commission meetings or mission upon the remand of a Commis- hearings, or other widely publicized sion’s final decision or order by an ap- events where the Commission provides pellate court. The matter remains be- advance public notice of the event indi- fore the Commission until resolution of cating the matter to be discussed, the the matter under remand; and event is open to all persons partici- (4) The mere potential that a request pating in the matter before the Com- may be filed does not place a matter mission, and a summary of the event is before the Commission. An affirmative provided for the record; action announcing, or actively pre- (3) Communications during the paring, an actual request with the in- course of off-the-record technical content to file within a reasonable period ferences associated with a matter be- of time must be present. fore the Commission, or the pre-filing conference for nature of service cases § 3008.4 Definitions of persons subject required by § 3001.81 of this chapter, to ex parte communication rules. where advance public notice of the (a) Commission decision-making per- event is provided indicating the matter sonnel include: to be discussed, and the event is open (1) The Commissioners and their to all persons participating in the mat- staffs; ter before the Commission; (2) The General Counsel and staff; (4) Questions concerning Commission (3) The Director of the Office of Ac- procedures, the status of a matter be- countability and Compliance and staff; fore the Commission, or the procedural (4) Contractors, consultants, and oth- schedule of a pending matter, where ers hired by the Commission to assist these issues are not contested matters with the Commission’s analysis and de- before the Commission; and cision; and (5) Communications not material to (5) Any other employee who may rea- the matter before the Commission. sonably be expected to be involved in the decisional process. § 3008.3 Definition of a matter before the Commission. (b) The Postal Service includes all Postal Service employees, contractors, (a) A matter is before the Commis- consultants, and others with an inter- sion at such time as the Commission est in a matter before the Commission. may designate, but in no event later Any interaction between the Postal than the earlier of the filing of a re- Service and Commission decision-mak- quest to initiate a proceeding or the ing personnel concerning a matter be- Commission noticing a proceeding. fore the Commission expresses an in- (b) A matter is also before the Com- terest in the matter before the Com- mission at such time as the person remission. sponsible for the communication has (c) Public stakeholders include all knowledge that a request to initiate a other persons not previously described, proceeding is expected to be filed. with an interest in a matter before the (c) Paragraph (b) of this section does Commission. This includes the Com- not apply to periodic reviews or reports mission non-decision-making personnel issued by the Commission, or the 10- identified in paragraph (d) of this sec- year review pursuant to 39 U.S.C. tion. Any interaction between a public 3622(d)(3). stakeholder and Commission decision- (d) The following explanations apply: making personnel concerning a matter (1) A matter is no longer before the before the Commission expresses an in- Commission upon the issuance of the terest in the matter before the Com- final order or decision in the docketed mission. matter; (d) Commission non-decision-making (2) A matter is again before the Com- personnel include: mission upon the filing of a request for (1) All Commission personnel other reconsideration. The matter remains than decision-making personnel;

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(2) Commission personnel not partici- be placed, on the public record of the pating in the decisional process owing proceeding: to the prohibitions of § 3001.8 of this (1) All such written communications; chapter regarding no participation by (2) Memoranda stating the substance investigative or prosecuting officers; of all such oral communications; and (3) The Public Representative and (3) All written responses, and memo- other Commission personnel assigned randa stating the substance of all oral to represent the interests of the gen- responses, to the materials described in eral public pursuant to 39 U.S.C. 505 in paragraphs (b)(1) and (2) of this section. the specific case or controversy at (c) Requests for an opportunity to issue (regardless of normally assigned rebut, on the record, any facts or con- duties); and tentions contained in an ex parte com- (4) Contractors, consultants, and oth- munication which have been placed on ers hired by the Commission to provide the public record of the proceeding pur- an independent analysis of issues be- suant to paragraph (b) of this section fore the Commission (and Commission may be filed in writing with the Com- employees assigned thereto). mission. The Commission will grant such requests only where it determines § 3008.5 Prohibitions. that the dictates of fairness so require. (a) Ex parte communications between In lieu of actually receiving rebuttal Commission decision-making per- material, the Commission may in its sonnel, and the Postal Service or pub- discretion direct that the alleged fac- lic stakeholders is prohibited. tual assertion and the proposed rebut- (b) Commission decision-making per- tal be disregarded in arriving at a deci- sonnel shall not rely upon any informa- sion. tion obtained through ex parte communications unless the communications § 3008.7 Penalty for violation of ex parte communication rules. are made part of the record of the proceeding, where an opportunity for re- (a) The penalties for violation of ex buttal has been provided, and reliance parte communication rules specified in on the information will not cause this section are applicable only to: undue delay or prejudice to any party. (1) Nature of postal service pro- (c) Paragraph (a) of this section does ceedings conducted pursuant to 39 not constitute authority to withhold U.S.C. 3661(c); information from Congress. (2) Appeal of Postal Service decisions to close or consolidate any post office § 3008.6 Required action upon ex parte conducted pursuant to 39 U.S.C. communications. 404(d)(5); and (a) Commission decision-making per- (3) Rate or service complaints con- sonnel who receive ex parte commu- ducted pursuant to 39 U.S.C. 3662. nications relevant to the merits of the (b) Upon notice of a communication proceeding shall decline to listen to knowingly made or knowingly caused such communications and explain that to be made by a participant in viola- the matter is pending for determination of § 3008.5(a), the Commission or tion. Any recipient thereof shall advise presiding officer may, to the extent the communicator that the commu- consistent with the interests of justice nication will not be considered, and and the policy of the underlying stat- shall promptly and fully inform the utes, require the participant to show Commission in writing of the substance cause why his/her claim or interest in of and the circumstances attending the the proceeding should not be dismissed, communication, so that the Commis- denied, disregarded, or otherwise ad- sion will be able to take appropriate versely affected on account of such vio- action. lation. (b) Commission decision-making per- (c) The Commission may, to the ex- sonnel who receive, or who make or tent consistent with the interests of knowingly cause to be made, ex parte justice and the policy of the underlying communications prohibited by this statutes administered by the Commis- part shall promptly place, or cause to sion, consider a violation of § 3008.5(a)

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sufficient grounds for a decision ad- 3010.29 Maximum size of Type 1–B rate adverse to a party who has knowingly justments. committed such violation or knowingly 3010.30 De minimis rate increases. caused such violation to occur. Subpart D—Rules for Rate Adjustments for Negotiated Service Agreements (Type PART 3010—REGULATION OF RATES 2 Rate Adjustments) FOR MARKET DOMINANT PROD- UCTS 3010.40 Negotiated service agreements. 3010.41 Notice. 3010.42 Contents of notice of agreement in Subpart A—General Provisions support of a Type 2 rate adjustment. Sec. 3010.43 Data collection plan and report. 3010.1 Definitions. 3010.44 Proceedings for Type 2 rate adjust- 3010.2 Applicability. ments. 3010.3 Types of rate adjustments for market dominant products. Subpart E—Rules for Rate Adjustments in 3010.4 Type 1–A rate adjustment—in gen- Extraordinary and Exceptional Cir- eral. cumstances (Type 3 Rate Adjustments) 3010.5 Type 1–B rate adjustment—in general. 3010.60 Applicability. 3010.6 Type 1–C rate adjustment—in gen- 3010.61 Contents of exigent requests. eral. 3010.62 Supplemental information. 3010.7 Type 2 rate adjustment—in general. 3010.63 Treatment of unused rate adjust- 3010.8 Type 3 rate adjustment—in general. ment authority. 3010.9 Schedule for Regular and Predictable 3010.64 Expeditious treatment of exigent re- Rate Adjustments. quests. 3010.65 Special procedures applicable to exi- Subpart B—Rules for Rate Adjustments for gent requests. Rates of General Applicability (Type 1– 3010.66 Deadline for Commission decision. A and 1–B Rate Adjustments) AUTHORITY: 39 U.S.C. 503; 3622. 3010.10 Notice. SOURCE: 78 FR 52704, Aug. 26, 2013, unless 3010.11 Proceedings for Type 1–A, Type 1–B, otherwise noted. and Type 1–C rate adjustment filings. 3010.12 Contents of notice of rate adjustment. Subpart A—General Provisions Subpart C—Rules for Determining the § 3010.1 Definitions. Maximum Rate Adjustment (a) The definitions in paragraphs (b) 3010.20 Calculation of maximum rate adjust- through (m) of this section apply in ment. this part. 3010.21 Calculation of annual limitation (b) Annual limitation means: when Type 1–A or Type 1–B notices of (1) In the case of a notice of a Type rate adjustment are 12 or more months 1–A or Type 1–B rate adjustment filed apart. 3010.22 Calculation of annual limitation 12 or more months after the last Type when Type 1–A or Type 1–B notices of 1–A or Type 1–B notice of rate adjust- rate adjustment are less than 12 months ment, the full year limitation on the apart. size of rate adjustments calculated pur- 3010.23 Calculation of percentage change in suant to § 3010.21; rates. (2) In the case of a notice of a Type 3010.24 Treatment of volume associated 1–A or Type 1–B rate adjustment filed with negotiated service agreements and rate incentives that are not rates of gen- less than 12 months after the last Type eral applicability. 1–A or Type 1–B notice of rate adjust- 3010.25 Limitation on application of unused ment, the partial year limitation on rate adjustment authority. the size of rate adjustments calculated 3010.26 Calculation of unused rate adjust- pursuant to § 3010.22; and ment authority for Type 1–A and Type 1– (3) In the case of a notice of a Type B rate adjustments. 1–C rate adjustment, the annual limita- 3010.27 Calculation of unused rate adjustment authority for Type 1–C rate adjust- tion calculated pursuant to § 3010.21 or ments. § 3010.22, as applicable, for the most re- 3010.28 Application of unused rate adjust- cent notice of a Type 1–A or Type 1–B ment authority. rate adjustment.

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(c) Class means a class of market dominant products. With the exception dominant postal products. of Type 3 rate adjustments, these pro- (d) De minimis rate increase means a cedures allow a minimum of 45 days for rate adjustment described in § 3010.30. advance public notice of the Postal (e) Maximum rate adjustment means Service’s planned rate adjustments. the maximum rate adjustment that the Type 3 rate adjustments require the Postal Service may make for a class Postal Service to file a formal request pursuant to a notice of Type1–A or with the Commission and are subject Type 1–B rate adjustment. The max- to special procedures. imum rate adjustment is calculated in accordance with § 3010.20. [78 FR 52704, Aug. 26, 2013, as amended at 79 FR 33831, June 12, 2014] (f) Most recent Type 1–A or Type 1–B notice of rate adjustment, when used in § 3010.3 Types of rate adjustments for reference to a notice of rate adjust- market dominant products. ment for a class, means the most recent Type 1–A or Type 1–B notice of (a) There are five types of rate ad- rate adjustment for that class. justments for market dominant prod- (g) Rate of general applicability means ucts. A Type 1–A rate adjustment is au- a rate applicable to all mail meeting thorized under 39 U.S.C. 3622(d)(1)(D). A standards established by the Mail Clas- Type 1–B rate adjustment is authorized sification Schedule, the Domestic Mail under 39 U.S.C. 3622(d)(2)(C). A Type 1– Manual, and the International Mail C rate adjustment is authorized under Manual. A rate is not a rate of general 39 U.S.C. 3622. A Type 2 rate adjust- applicability if eligibility for the rate ment is authorized under 39 U.S.C. is dependent on factors other than the 3622(c)(10). A Type 3 rate adjustment is characteristics of the mail to which authorized under 39 U.S.C. 3622(d)(1)(E). the rate applies. A rate is not a rate of (b)(1) The Postal Service may com- general applicability if it benefits a bine Type 1–A, Type 1–B, and Type 2 single mailer. A rate that is only avail- rate adjustments for purposes of filing able upon the written agreement of with the Commission. both the Postal Service and a mailer, a (2) The Postal Service may not com- group of mailers, or a foreign postal op- bine a Type 1–C rate adjustment with erator is not a rate of general applica- any other type of rate adjustment. The bility. Postal Service may file a Type 1–C rate (h) Type 1–A rate adjustment means a adjustment and a de minimis rate in- rate adjustment described in § 3010.4. crease contemporaneously, but the (i) Type 1–B rate adjustment means a Type 1–C rate adjustment and the de rate adjustment described in § 3010.5. minimis rate increase must be con- (j) Type 1–C rate adjustment means a tained in separate notices of rate ad- rate adjustment described in § 3010.6. justment. (k) Type 2 rate adjustment means a [79 FR 33832, June 12, 2014] rate adjustment described in § 3010.7. (l) Type 3 rate adjustment means a § 3010.4 Type 1–A rate adjustment—in rate adjustment described in § 3010.8. general. (m) Unused rate adjustment authority (a) A Type 1–A rate adjustment is an means: adjustment based on the annual limita- (1) In the case of a Type 1–A or Type tion. 1–B rate adjustment, the percentage (b) A Type 1–A rate adjustment may calculated pursuant to § 3010.26; and result in a rate adjustment that is less (2) In the case of a Type 1–C rate ad- than or equal to the annual limitation, justment, the percentage calculated but may not exceed the annual limita- pursuant to § 3010.27. tion. [79 FR 33831, June 12, 2014] (c) A Type 1–A rate adjustment for any class that is less than the applica- § 3010.2 Applicability. ble annual limitation results in unused The rules in this part implement pro- rate adjustment authority associated visions in 39 U.S.C. chapter 36, sub- with that class. Part or all of the un- chapter I, establishing rate setting used rate adjustment authority may be policies and procedures for market used in a subsequent rate adjustment

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for that class, subject to the expiration (b) A Type 3 rate adjustment is not terms in § 3010.26(e). subject to the annual limitation or the restrictions on the use of unused rate [78 FR 52704, Aug. 26, 2013, as amended at 79 FR 33832, June 12, 2014] adjustment authority, and does not implement a negotiated service agree- § 3010.5 Type 1–B rate adjustment—in ment. general. (c) A Postal Service request for a A Type 1–B rate adjustment is an ad- Type 3 rate adjustment is subject to justment that is based on the annual public participation and Commission limitation and that uses unused rate review within 90 days. adjustment authority in whole or in [78 FR 52704, Aug. 26, 2013, redesignated at 79 part. FR 33832, June 12, 2014] [79 FR 33832, June 12, 2014] § 3010.9 Schedule for Regular and Pre- § 3010.6 Type 1–C rate adjustment—in dictable Rate Adjustments. general. (a) The Postal Service shall maintain (a) A Type 1–C rate adjustment is an on file with the Commission a Schedule adjustment to a rate of general appli- for Regular and Predictable Rate Ad- cability that contains only a decrease. justments. The Commission shall dis- A rate adjustment that includes both play the Schedule for Regular and Pre- an increase and a decrease in rates of dictable Rate Adjustments on the Com- general applicability is a Type 1–A or mission Web site, http://www.prc.gov. Type 1–B rate adjustment; it is not a (b) The Schedule for Regular and Pre- Type 1–C rate adjustment. dictable Rate Adjustments shall pro- (b)(1) Except as provided in para- vide mailers with estimated implemen- graph (b)(2) of this section, a Type 1–C tation dates for future Type 1–A rate rate adjustment may generate unused adjustments for each separate class of rate adjustment authority, as de- mail, should such adjustments be nec- scribed in § 3010.27. essary and appropriate. Rate adjust- (2) A Type 1–C rate adjustment filed ments will be scheduled at specified immediately after a Type 3 rate adjust- regular intervals. ment (that is, with no intervening (c) The Schedule for Regular and Pre- Type 1–A or Type 1–B rate adjustment) dictable Rate Adjustments shall pro- may not generate unused rate adjust- vide an explanation that will allow ment authority. mailers to predict with reasonable ac- (3) The Postal Service may elect not curacy the amounts of future scheduled to generate unused rate adjustment au- rate adjustments. thority in a Type 1–C rate adjustment. (d) The Postal Service should balance [79 FR 33832, June 12, 2014] its financial and operational needs with the convenience of mailers of each § 3010.7 Type 2 rate adjustment—in class of mail in developing the Sched- general. ule for Regular and Predictable Rate A Type 2 rate adjustment is based on Adjustments. a negotiated service agreement. A ne- (e) Whenever the Postal Service gotiated service agreement entails a deems it appropriate to change the rate adjustment negotiated between Schedule for Regular and Predictable the Postal Service and a customer or Rate Adjustments, it shall file a re- group of customers. vised schedule and explanation with [78 FR 52704, Aug. 26, 2013, redesignated at 79 the Commission. FR 33832, June 12, 2014] (f) The Postal Service may, for good cause shown, vary rate adjustments § 3010.8 Type 3 rate adjustment—in from those estimated by the Schedule general. for Regular and Predictable Rate Ad- (a) A Type 3 rate adjustment is a rate justments. In such case, the Postal adjustment that is authorized only Service shall provide a succinct expla- when justified by exceptional or ex- nation for such variation with its Type traordinary circumstances. 1–A filing. No explanation is required

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for variations involving smaller than (4) The identification of an officer of predicted rate adjustments. the Commission to represent the interests of the general public in the docket; [78 FR 52704, Aug. 26, 2013, redesignated at 79 FR 33832, June 12, 2014] (5) A period of 20 days from the date of the filing for public comment; and (6) Such other information as the Subpart B—Rules for Rate Adjust- Commission deems appropriate. ments for Rates of General (b) Public comments should focus Applicability (Type 1–A and primarily on whether planned rate ad- 1–B Rate Adjustments) justments comply with the following mandatory requirements of 39 U.S.C. § 3010.10 Notice. chapter 36, subchapter I: (a) The Postal Service, in every in- (1) Whether the planned rate adjust- stance in which it determines to exer- ments measured using the formula es- cise its statutory authority to make a tablished in § 3010.23(c) are at or below Type 1–A, Type 1–B, or Type 1–C rate the annual limitation calculated under adjustment for a class shall: §§ 3010.21 or 3010.22, as applicable; and (1) Provide public notice in a manner (2) Whether the planned rate adjust- reasonably designed to inform the ments measured using the formula es- mailing community and the general tablished in § 3010.23(c) are at or below public that it intends to adjust rates the limitation established in § 3010.29. no later than 45 days prior to the in- (c) Public comments may also ad- tended implementation date of the rate dress other relevant statutory provi- adjustment; and sions and applicable Commission or- (2) Transmit a notice of rate adjust- ders and directives. ment to the Commission no later than (d) Within 14 days of the conclusion 45 days prior to the intended imple- of the public comment period the Com- mentation date of the rate adjustment. mission will determine, at a minimum, whether the planned rate adjustments (b) The Postal Service is encouraged are consistent with the annual limita- to provide public notice and to submit tion calculated under § 3010.21 or its notice of rate adjustment as far in § 3010.22, as applicable, the limitation advance of the 45-day minimum as set forth in § 3010.29, and 39 U.S.C. 3626, practicable, especially in instances 3627, and 3629 and issue an order an- where the intended rate adjustments nouncing its findings. include classification changes or oper- (e) If the planned rate adjustments ations changes likely to have a mate- are found consistent with applicable rial impact on mailers. law by the Commission, they may take [78 FR 52704, Aug. 26, 2013, as amended at 79 effect pursuant to appropriate action FR 33832, June 12, 2014] by the Governors. (f) If planned rate adjustments are § 3010.11 Proceedings for Type 1–A, found inconsistent with applicable law Type 1–B, and Type 1–C rate adjust- by the Commission, the Postal Service ment filings. will submit an amended notice of rate (a) The Commission will establish a adjustment that describes the modi- docket for each notice of Type 1–A, fications to its planned rate adjust- Type 1–B, or Type 1–C rate adjustment ments that will bring its rate adjust- filing, promptly publish notice of the ments into compliance. An amended filing in the FEDERAL REGISTER, and notice of rate adjustment shall be ac- post the filing on its Web site. The no- companied by sufficient explanatory tice shall include: information to show that all defi- (1) The general nature of the pro- ciencies identified by the Commission ceeding; have been corrected. (2) A reference to legal authority (g) The Commission will post any under which the proceeding is to be amended notice of rate adjustment fil- conducted; ing on its Web site and allow a period (3) A concise description of the of 7 days from the date of the filing for planned changes in rates, fees, and the public comment. Comments in the Mail Classification Schedule; amended notice of rate adjustment

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should address the subjects identified (b) The notice of rate adjustment in paragraph (b) of this section and shall be accompanied by the following may address the subjects identified in information: paragraph (c) of this section. (1) The annual limitation calculated (h) The Commission will review any as required by § 3010.21 or § 3010.22, as amended notice of rate adjustment to- appropriate. This information must be gether with any comments filed for supported by workpapers in which all compliance and within 14 days issue an calculations are shown and all input order announcing its findings. values, including all relevant CPI–U (i) If the planned rate adjustments as values, are listed with citations to the amended are found to be consistent original sources. with applicable law, they may take ef- (2) A schedule showing unused rate fect pursuant to appropriate action by adjustment authority available for the Governors. However, no rate shall each class of mail displayed by class take effect until 45 days after the Post- and available amount for each of the al Service files a notice of rate adjust- preceding 5 years. This information ment specifying that rate. must be supported by workpapers in (j) If the planned rate adjustments in which all calculations are shown. an amended notice of rate adjustment (3) The percentage change in rates for are found to be inconsistent with appli- each class of mail calculated as re- cable law, the Commission shall ex- quired by § 3010.23. This information plain the basis of its determination and must be supported by workpapers in suggest an appropriate remedy. which all calculations are shown and (k) A Commission finding that a all input values, including current planned Type 1–A, Type 1–B, or Type 1– rates, new rates, and billing deter- C rate adjustment is in compliance minants, are listed with citations to with the annual limitation calculated the original sources. under § 3010.21 or § 3010.22, as applicable; (4) The amount of new unused rate the limitation set forth in § 3010.29; and adjustment authority, if any, that will 39 U.S.C. 3626, 3627, and 3629 is decided be generated by the rate adjustment on the merits. A Commission finding calculated as required by § 3010.26 or that a planned Type 1–A, Type 1–B, or § 3010.27, as applicable. All calculations Type 1–C rate adjustment does not con- are to be shown with citations to the travene other policies of 39 U.S.C. original sources. If new unused rate ad- chapter 36, subchapter I is provisional justment authority will be generated and subject to subsequent review. for a class of mail that is not expected to cover its attributable costs, the [78 FR 52704, Aug. 26, 2013, as amended by Postal Service must provide the ration- Order 1786, 78 FR 67952, Nov. 13, 2013; 79 FR ale underlying this rate adjustment. 33832, June 12, 2014] (5) A schedule of the workshare discounts included in the planned rates, § 3010.12 Contents of notice of rate adjustment. and a companion schedule listing the avoided costs that underlie each such (a) A Type 1–A, Type 1–B, or Type 1– discount. This information must be C notice of rate adjustment must in- supported by workpapers in which all clude the following information: calculations are shown and all input (1) A schedule of the planned rates; values are listed with citations to the (2) The planned effective date(s) of original sources. the planned rates; (6) Separate justification for all pro- (3) A representation or evidence that posed workshare discounts that exceed public notice of the planned changes avoided costs. Each such justification has been issued or will be issued at shall reference applicable reasons iden- least 45 days before the effective tified in 39 U.S.C. 3622(e)(2) or (3). The date(s) for the planned rates; and Postal Service shall also identify and (4) The identity of a responsible Post- explain discounts that are set substan- al Service official who will be available tially below avoided costs and explain to provide prompt responses to re- any relationship between discounts quests for clarification from the Com- that are above and those that are mission. below avoided costs.

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(7) A discussion that demonstrates (e) The notice of rate adjustment how the planned rate adjustments are shall identify for each affected class designed to help achieve the objectives how much existing unused rate adjust- listed in 39 U.S.C. 3622(b) and properly ment authority is used in the planned take into account the factors listed in rates calculated as required by § 3010.28. 39 U.S.C. 3622(c). All calculations are to be shown, in- (8) A discussion that demonstrates cluding citations to the original the planned rate adjustments are con- sources. sistent with 39 U.S.C. 3626, 3627, and (f) All cost, avoided cost, volume, and 3629. revenue figures submitted with the no- (9) For a notice that includes a rate tice of rate adjustment shall be devel- incentive: oped from the most recent applicable (i) If the rate incentive is a rate of general applicability, sufficient infor- Commission approved analytical prin- mation to demonstrate that the rate ciples. incentive is a rate of general applica- [78 FR 52704, Aug. 26, 2013, as amended at 79 bility; and FR 33832, June 12, 2014] (ii) Whether the Postal Service has excluded the rate incentive from the Subpart C—Rules for Determining calculation of the percentage change in rates under § 3010.23(e) or § 3010.24. the Maximum Rate Adjustment (10) For a Type 1–C rate adjustment, § 3010.20 Calculation of maximum rate whether the Postal Service elects to adjustment. generate unused rate adjustment authority. (a) Rate adjustments for each class of (11) A schedule identifying every market dominant products in any 12- change to the Mail Classification month period are limited. Schedule that will be necessary to im- (b) Type 1–A and Type 1–B rate ad- plement the planned rate adjustments. justments are subject to an inflation- (12) Such other information as the based annual limitation computed Postal Service believes will assist the using CPI–U values as detailed in Commission to issue a timely deter- §§ 3010.21(a) and 3010.22(a). mination of whether the planned rate (c) An exception to the annual limi- adjustments are consistent with appli- tation allows a limited annual recap- cable statutory policies. ture of unused rate adjustment author- (c) Whenever the Postal Service es- ity. The amount of unused rate adjust- tablishes a new workshare discount ment authority is measured separately rate, it must include with its filing: for each class. (1) A statement explaining its rea- (d) In any 12-month period the max- sons for establishing the discount; (2) All data, economic analyses, and imum rate adjustment applicable to a other information relied on to justify class is: the discount; and (1) For a Type1–A notice of rate ad- (3) A certification based on com- justment, the annual limitation for the prehensive, competent analyses that class; and the discount will not adversely affect (2) For a Type 1–B notice of rate ad- either the rates or the service levels of justment, the annual limitation for the users of postal services who do not class plus the unused rate adjustment take advantage of the discount. authority for the class that the Postal (d) Whenever the Postal Service es- Service elects to use, subject to the tablishes a new discount or surcharge limitation under § 3010.29. it does not believe is a workshare dis- (e) There is no limitation on the count, it must include with its filing: amount of a rate decrease contained in (1) An explanation of the basis for its a notice of Type 1–C rate adjustment. belief that the discount or surcharge is not a workshare discount; and [78 FR 52704, Aug. 26, 2013, as amended at 79 (2) A certification that the Postal FR 33833, June 12, 2014] Service applied approved analytical principles to the discount or surcharge.

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§ 3010.21 Calculation of annual limita- (b) If a notice of a Type 1–A or Type tion when Type 1–A or Type 1–B no- 1–B rate adjustment is filed less than 12 tices of rate adjustment are 12 or months after the most recent Type 1–A more months apart. or Type 1–B notice of rate adjustment, (a) The monthly CPI–U values needed then the annual limitation for the for the calculation of the full year lim- class (referred to as the partial year limitation under this section shall be ob- itation) will recognize the rate in- tained from the Bureau of Labor Sta- creases that have occurred during the tistics (BLS) Consumer Price Index— preceding 12 months. When the effects All Urban Consumers, U.S. All Items, of those increases are removed, the re- Not Seasonally Adjusted, Base Period maining partial year limitation is the 1982–84 = 100. The current Series ID for applicable restriction on rate in- the index is ‘‘CUUR0000SA0.’’ creases. (b) If a notice of a Type 1–A or Type (c) The applicable partial year limi- 1–B rate adjustment is filed 12 or more tation is calculated in two steps. First, months after the most recent Type 1–A a simple average CPI–U index is cal- or Type 1–B notice of rate adjustment, culated by summing the 12 most re- then the calculation of an annual limi- cently available monthly CPI–U values tation for the class (referred to as the from the date the Postal Service files full year limitation) involves three steps. its notice of rate adjustment and divid- First, a simple average CPI–U index is ing the sum by 12 (Recent Average). calculated by summing the most re- The partial year limitation is then cal- cently available 12 monthly CPI–U val- culated by dividing the Recent Average ues from the date the Postal Service by the Recent Average from the most files its notice of rate adjustment and recent previous notice of rate adjust- dividing the sum by 12 (Recent Aver- ment (Previous Recent Average) appli- age). Then, a second simple average cable to each affected class of mail and CPI–U index is similarly calculated by subtracting 1 from the quotient. The summing the 12 monthly CPI–U values result is expressed as a percentage, immediately preceding the Recent Av- rounded to three decimal places. erage and dividing the sum by 12 (Base (d) The formula for calculating the Average). Finally, the full year limita- partial year limitation for a notice of tion is calculated by dividing the Re- rate adjustment filed less than 12 cent Average by the Base Average and months after the last notice is as fol- subtracting 1 from the quotient. The lows: Partial Year Limitation = (Re- result is expressed as a percentage, cent Average/Previous Recent Average) rounded to three decimal places. ¥ 1. (c) The formula for calculating a full [78 FR 52704, Aug. 26, 2013, as amended at 79 year limitation for a notice of rate ad- FR 33833, June 12, 2014] justment filed 12 or more months after the last notice is as follows: Full Year § 3010.23 Calculation of percentage Limitation = (Recent Average/Base Av- change in rates. erage)¥1. (a) Definitions. In this section: [78 FR 52704, Aug. 26, 2013, as amended at 79 (1) Current rate—(i) In general. Except FR 33833, June 12, 2014] as provided in paragraphs (a)(1)(ii) and (iii) of this section, the term current § 3010.22 Calculation of annual limita- rate means the rate in effect when the tion when Type 1–A or Type 1–B no- Postal Service files the notice of rate tices of rate adjustment are less adjustment. than 12 months apart. (ii) Seasonal and temporary rates. (a) The monthly CPI–U values needed When used with respect to a seasonal for the calculation of the partial year or temporary rate, as described in limitation under this section shall be paragraph (a)(2) of this section, the obtained from the Bureau of Labor Sta- term current rate means the most re- tistics (BLS) Consumer Price Index— cent rate in effect for the rate cell, re- All Urban Consumers, U.S. All Items, gardless of whether the seasonal or Not Seasonally Adjusted, Base Period temporary rate is available at the time 1982 ¥ 84 = 100. The current Series ID the Postal Service files the notice of for the index is ‘‘CUUR0000SA0.’’ rate adjustment.

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(iii) Exception. When used with re- (2) Type 1–C rate adjustments. For a spect to a rate cell that corresponds to Type 1–C rate adjustment, for each a rate incentive that was previously class of mail and product within the excluded from the calculation of the class, the percentage change in rates is percentage change in rates under para- calculated by amending the graph (e)(1) of this section, the term workpapers attached to the Commis- current rate means the full sion’s order relating to the most recent undiscounted rate in effect for the rate Type 1–A or Type 1–B notice of rate ad- cell at the time of the filing of the no- justment to replace the planned rates tice of rate adjustment, not the dis- under the most recent Type 1–A or counted rate in effect for the rate cell Type 1–B notice of rate adjustment at such time. For example, if a rate in- with the corresponding planned rates centive provides a 5-cent discount on a applicable to the class from the Type 1– 25-cent rate and the Postal Service pre- C notice of rate adjustment. viously elected to exclude the rate in- (c) Formula. The formula for calcu- centive from the calculation of the per- lating the percentage change in rates centage change in rates, the Postal for a class described in paragraph (b) of Service may choose to begin including this section is as follows: the discounted rate in its calculation Percentage change in rates = of the percentage change in rates. If the Postal Service makes that choice, the current rate for the discounted rate cell will be 25 cents (the full undiscounted rate). (2) Rate cell. The term rate cell means each and every separate rate identified in any applicable notice of rate adjust- Where, ment for rates of general applicability. N = number of rate cells in the class A seasonal or temporary rate shall be i = denotes a rate cell (i = 1, 2, . . . , N) identified and treated as a rate cell Ri,n = planned rate of rate cell i Ri,c = current rate of rate cell i (for a Type separate and distinct from the cor- 1–A or Type 1–B rate adjustment) or rate responding non-seasonal or permanent from most recent Type 1–A rate adjust- rate. ment for rate cell i (for a Type 1–C rate (3) Rate incentive means a discount adjustment) that is not a workshare discount and Vi = volume of rate cell i that is designed to increase or retain (d) Volumes—(1) Obtaining Volumes volume, improve the value of mail for from billing determinants. The volumes mailers, or improve the operations of for each rate cell shall be obtained the Postal Service. from the most recent available 12 (b) Calculation—(1) Type 1–A and Type months of Postal Service billing deter- 1–B rate adjustments. For a Type 1–A or minants. Type 1–B rate adjustment, for each (2) Permissible adjustments. The Postal class of mail and product within the Service shall make reasonable adjust- class, the percentage change in rates is ments to the billing determinants to calculated in three steps. First, the account for the effects of classification volume of each rate cell in the class is changes such as the introduction, dele- multiplied by the planned rate for the tion, or redefinition of rate cells. The respective cell and the resulting prod- Postal Service shall identify and ex- ucts are summed. Then, the same set of plain all adjustments. All information rate cell volumes are multiplied by the and calculations relied upon to develop corresponding current rate for each the adjustments shall be provided to- cell and the resulting products are gether with an explanation of why the summed. Finally, the percentage adjustments are appropriate. change in rates is calculated by divid- (3) Basis for adjustments. Whenever ing the results of the first step by the possible, adjustments shall be based on results of the second step and sub- known mail characteristics or histor- tracting 1 from the quotient. The re- ical volume data, as opposed to fore- sult is expressed as a percentage. casts of mailer behavior.

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(4) Adjustment for deletion of rate cell (i) The rate incentive is in the form when alternate rate cell is not available. of a discount or can be easily trans- For an adjustment accounting for the lated into a discount; effects of the deletion of a rate cell (ii) Sufficient billing determinants when an alternate rate cell is not are available for the rate incentive to available, the Postal Service should ad- be included in the percentage change in just the billing determinants associ- rate calculation for the class, which ated with the rate cell to zero. If the may be adjusted based on known mail Postal Service does not adjust the bill- characteristics or historical volume ing determinants for the rate cell to data (as opposed to forecasts of mailer zero, the Postal Service shall include a behavior); and rationale for its treatment of the rate (iii) The rate incentive is a rate of cell with the information required general applicability. under paragraph (d)(2) of this section. (5) Procedures for mail preparation [79 FR 33833, June 12, 2014, as amended at 83 changes. The Postal Service shall pro- FR 4591, Feb. 1, 2018] vide published notice of all mail preparation changes in a single, publicly § 3010.24 Treatment of volume associated with negotiated service agree- available source. The Postal Service ments and rate incentives that are shall file notice with the Commission not rates of general applicability. of the single source it will use to provide published notice of all mail prepa- (a) Mail volumes sent at rates under ration changes. When providing notice a negotiated service agreement or a of a mail preparation change, the Post- rate incentive that is not a rate of gen- al Service shall affirmatively state eral applicability are to be included in whether or not the change requires the calculation of percentage change in compliance with paragraph (d)(2) of rates under § 3010.23 as though they this section. If the Postal Service’s de- paid the appropriate rates of general termination regarding compliance with applicability. Where it is impractical paragraph (d)(2) of this section is raised to identify the rates of general applica- by the Commission or any other party, bility (e.g., because unique rate cat- the Postal Service must demonstrate, egories are created for a mailer), the by a preponderance of the evidence, volumes associated with the mail sent that a mail preparation change does under the terms of the negotiated serv- not require compliance with paragraph ice agreement or the rate incentive (d)(2) of this section in any proceeding that is not a rate of general applica- where compliance is at issue. In any bility shall be excluded from the cal- challenge to the Postal Service’s deter- culation of percentage change in rates. mination concerning a mail prepara- (b) The Postal Service shall identify tion change, the challenging party and explain all assumptions it makes shall provide all information to rebut with respect to the treatment of nego- the Postal Service’s determination tiated service agreements and rate in- that the change is not subject to the centives that are not rates of general price cap. applicability in the calculation of the (e) Treatment of rate incentives. (1) percentage change in rates and provide Rate incentives may be excluded from the rationale for its assumptions. a percentage change in rates calculation. If the Postal Service elects to ex- [79 FR 33834, June 12, 2014] clude a rate incentive from a percentage change in rates calculation, the § 3010.25 Limitation on application of rate incentive shall be treated in the unused rate adjustment authority. same manner as a rate under a nego- Unused rate adjustment authority tiated service agreement (as described may only be applied after applying the in § 3010.24). annual limitation calculated pursuant (2) A rate incentive may be included to § 3010.21 or § 3010.22. in a percentage change in rates calculation if it meets the following criteria:

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§ 3010.26 Calculation of unused rate (d) Interim unused rate adjustment adjustment authority for Type 1–A authority may be used to make a rate and Type 1–B rate adjustments. adjustment pursuant to the notice of (a) Unused rate adjustment authority rate adjustment that led to its calcula- accrues during the entire period be- tion. If interim unused rate adjustment tween notices of Type 1–A and Type 1– authority is used to make such a rate B rate adjustments. When notices of adjustment, the interim unused rate Type 1–A or Type 1–B rate adjustments adjustment authority generated pursuant to the notice shall first be added to are filed 12 months apart or less, the the schedule of unused rate adjustment unused rate adjustment authority is authority devised and maintained the annual unused rate adjustment au- under paragraph (f) of this section as thority calculated under paragraph (b) the most recent entry. Then, any in- of this section. When notices of Type 1– terim unused rate adjustment author- A or Type 1–B rate adjustments are ity used in accordance with this para- filed more than 12 months apart, un- graph shall be subtracted from the ex- used rate adjustment authority is the isting unused rate adjustment author- sum of the annual unused rate adjust- ity using a first-in, first-out (FIFO) ment calculated under paragraph (b) of method, beginning 5 years before the this section plus the interim unused instant notice. rate adjustment authority calculated (e) Unused rate adjustment authority under paragraph (c)(2) of this section, generated under this section lapses 5 less any interim unused rate adjust- years after the date of filing of the no- ment authority used in accordance tice of rate adjustment leading to its with paragraph (d) of this section. calculation. (b) When notices of Type 1–A or Type (f) Upon the establishment of unused 1–B rate adjustments are filed 12 rate adjustment authority in any class, months apart or less, annual unused the Postal Service shall devise and rate adjustment authority will be cal- maintain a schedule that tracks the es- culated. Annual unused rate adjust- tablishment and subsequent use of un- ment authority for a class is equal to used rate adjustment authority for the difference between the annual limi- that class. tation calculated pursuant to § 3010.21 or § 3010.22 and the percentage change [78 FR 52704, Aug. 26, 2013, as amended at 79 FR 33834, June 12, 2014] in rates for the class calculated pursuant to § 3010.23(b)(1). § 3010.27 Calculation of unused rate (c)(1) When notices of Type 1–A or adjustment authority for Type 1–C Type 1–B rate adjustments are filed rate adjustments. more than 12 months apart, annual un- (a) For a notice of Type 1–C rate ad- used rate adjustment authority will be justment, unused rate adjustment au- calculated for the 12-month period end- thority for a class is calculated in two ing on the date on which the second no- steps. First, the difference between the tice is filed and interim unused rate ad- annual limitation calculated pursuant justment authority will be calculated to § 3010.21 or § 3010.22 for the most re- for the period beginning on the date cent notice of Type 1–A or Type 1–B the first notice is filed and ending on rate adjustment and the percentage the day before the date that is 12 change in rates for the class calculated months before the second notice is pursuant to § 3010.23(b)(2) is calculated. filed. Second, the unused rate adjustment (2) Interim unused rate adjustment authority generated in the most recent authority is equal to the Base Average Type 1–A or Type 1–B rate adjustment applicable to the second notice of rate is subtracted from that result. adjustment (as developed pursuant to (b) Unused rate adjustment authority § 3010.21(b)) divided by the Recent Aver- generated under paragraph (a) of this age utilized in the first notice of rate section lapses 5 years after the date of adjustment (as developed pursuant to filing of the most recent notice of Type § 3010.21(b)) and subtracting 1 from the 1–A or Type 1–B rate adjustment. quotient. The result is expressed as a (c) Unused rate adjustment authority percentage. generated under paragraph (a) of this

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section for a class shall be added to the (2) For each affected class, the sum of unused rate adjustment authority gen- all rate increases included in de minimis erated in the most recent notice of rate increases since the most recent Type 1–A rate adjustment on the sched- Type 1–A, Type 1–B, or Type 3 rate ad- ule maintained under § 3010.26(f). For justment that was not a de minimis rate purposes of § 3010.28, the unused rate increase does not result in the percent- adjustment authority generated under age change in rates for the class equal- paragraph (a) of this section for a class ing or exceeding 0.001 percent. shall be deemed to have been added to (b) No unused rate adjustment au- the schedule maintained under thority will be added to the schedule of § 3010.26(f) on the same date as the most unused rate adjustment authority recent notice of Type 1–A or Type 1–B maintained under § 3010.26(f) as a result rate adjustment. of a de minimis rate increase. (d) Unused rate adjustment authority (c) No rate decreases may be taken generated under paragraph (a) of this into account when determining wheth- section shall be subject to the limita- er rate increases comply with para- tion under § 3010.29, regardless of graphs (a)(1) and (2) of this section. whether it is used alone or in combina- (d) In the next notice of a Type 1–A tion with other existing unused rate or Type 1–B rate adjustment for a class adjustment authority. that is not a de minimis rate increase: [79 FR 33834, June 12, 2014] (1) The annual limitation shall be calculated as if the de minimis rate in- § 3010.28 Application of unused rate crease had not been filed; and adjustment authority. (2) For purposes of calculating the When the percentage change in rates percentage change in rates, the current for a class is greater than the applica- rate shall be the current rate from the ble annual limitation, then the dif- de minimis rate increase. ference between the percentage change (e) The Postal Service shall file sup- in rates for the class and the annual porting workpapers with each notice of limitation shall be subtracted from the de minimis rate increase that dem- existing unused rate adjustment au- onstrate that the sum of all rate in- thority for the class, using a first-in, creases included in de minimis rate in- first-out (FIFO) method, beginning 5 creases since the most recent Type 1–A, years before the instant notice. Type 1–B, or Type 3 notice of rate adjustment that was not de minimis does [78 FR 52704, Aug. 26, 2013, redesignated at 79 not result in a percentage change in FR 33834, June 12, 2014] rates for the class equaling or exceeding 0.001 percent. § 3010.29 Maximum size of Type 1–B rate adjustments. [79 FR 33834, June 12, 2014] Unused rate adjustment authority used to make a Type 1–B rate adjust- Subpart D—Rules for Rate Adjust- ment for any class in any 12-month pe- ments for Negotiated Service riod may not exceed 2 percentage Agreements (Type 2 Rate Ad- points. justments) [78 FR 52704, Aug. 26, 2013, redesignated at 79 FR 33834, June 12, 2014] § 3010.40 Negotiated service agreements. § 3010.30 De minimis rate increases. (a) In administering this subpart, it (a) The Postal Service may elect to shall be the objective of the Commis- file a Type 1–A notice of rate adjust- sion to allow implementation of nego- ment as a de minimis rate increase if: tiated service agreements that satisfy (1) For each affected class, the rate the statutory requirements of 39 U.S.C. increases contained within the notice 3622(c)(10). Negotiated service agree- of a Type 1–A rate adjustment do not ments must either: result in the percentage change in (1) Improve the net financial position rates for the class equaling or exceed- of the Postal Service (39 U.S.C. ing 0.001 percent; and 3622(c)(10)(A)(i)); or

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(2) Enhance the performance of oper- tion or operations of the Postal Serv- ational functions (39 U.S.C. ice. The projection of change in net fi- 3622(c)(10)(A)(ii)). nancial position as a result of the (b) Negotiated service agreements agreement shall be based on accepted may not cause unreasonable harm to analytical principles. The projection of the marketplace (39 U.S.C. change in net financial position as a re- 3622(c)(10)(B)). sult of the agreement shall include for (c) Negotiated service agreements each year of the agreement: must be available on public and reason- (1) The estimated mailer-specific able terms to similarly situated mail- costs, volumes, and revenues of the ers. Postal Service absent the implementa- § 3010.41 Notice. tion of the negotiated service agreement; The Postal Service, in every instance (2) The estimated mailer-specific in which it determines to exercise its costs, volumes, and revenues of the statutory authority to make a Type 2 Postal Service which result from im- rate adjustment for a market dominant plementation of the negotiated service postal product shall provide public no- agreement; tice in a manner reasonably designed to inform the mailing community and (3) An analysis of the effects of the the general public that it intends to negotiated service agreement on the change rates not later than 45 days contribution to institutional costs prior to the intended implementation from mailers not party to the agree- date; and transmit a notice of agreement; ment to the Commission no later than (4) If mailer-specific costs are not 45 days prior to the intended imple- available, the source and derivation of mentation date. the costs that are used shall be provided, together with a discussion of the § 3010.42 Contents of notice of agree- currency and reliability of those costs ment in support of a Type 2 rate ad- and their suitability as a proxy for the justment. mailer-specific costs; and Whenever the Postal Service pro- (5) If the Postal Service believes the poses to establish or change rates, fees, Commission’s accepted analytical prin- or the Mail Classification Schedule ciples are not the most accurate and based on a negotiated service agree- reliable methodology available: ment, the Postal Service shall file with (i) An explanation of the basis for the Commission a notice of agreement that belief; and that shall include at a minimum the (ii) A projection of the change in net following information: financial position resulting from the (a) A copy of the negotiated service agreement made using the Postal Serv- agreement; ice’s alternative methodology. (b) The planned effective date(s) of (g) An identification of each compo- the planned rates; nent of the agreement expected to en- (c) A representation or evidence that hance the performance of mail prepara- public notice of the planned rate adjustments has been issued or will be tion, processing, transportation, or issued at least 45 days before the effec- other functions in each year of the tive date(s) for the planned rates; agreement, and a discussion of the na- (d) The identity of a responsible ture and expected impact of each such Postal Service official who will be enhancement; available to provide prompt responses (h) Details regarding any and all ac- to requests for clarification from the tions (performed or to be performed) to Commission; assure that the agreement will not re- (e) A statement identifying all par- sult in unreasonable harm to the mar- ties to the agreement and a description ketplace; and clearly explaining the operative com- (i) Such other information as the ponents of the agreement; Postal Service believes will assist the (f) Details regarding the expected im- Commission to issue a timely deter- provements in the net financial posi- mination of whether the requested

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changes are consistent with applicable § 3010.44 Proceedings for Type 2 rate statutory policies. adjustments. [78 FR 52704, Aug. 26, 2013, as amended by (a) The Commission will establish a Order 1786, 78 FR 67952, Nov. 13, 2013] docket for each notice of Type 2 rate adjustment filed, promptly publish no- § 3010.43 Data collection plan and re- tice of the filing in the FEDERAL REG- port. ISTER, and post the filing on its Web (a) The Postal Service shall include site. The notice shall include: (1) The general nature of the pro- with any notice of agreement a de- ceeding; tailed plan for providing data or infor- (2) A reference to legal authority mation on actual experience under the under which the proceeding is to be agreement sufficient to allow evalua- conducted; tion of whether the negotiated service (3) A concise description of the agreement operates in compliance with planned changes in rates, fees, and the 39 U.S.C. 3622(c)(10). Mail Classification Schedule; (b) A data report under the plan is (4) The identification of an officer of due 60 days after each anniversary date the Commission to represent the inter- of implementation and shall include, at ests of the general public in the docket; a minimum, the following information (5) A period of 10 days from the date for each 12-month period the agree- of the filing for public comment; and ment has been in effect: (6) Such other information as the (1) The change in net financial posi- Commission deems appropriate. tion of the Postal Service as a result of (b) The Commission shall review the the agreement. This calculation shall planned Type 2 rate adjustments and include for each year of the agreement: the comments thereon, and issue an (i) The actual mailer-specific costs, order announcing its findings. So long as such adjustments are not incon- volumes, and revenues of the Postal sistent with 39 U.S.C. 3622, they may Service; take effect pursuant to appropriate ac- (ii) An analysis of the effects of the tion by the Governors. However, no negotiated service agreement on the rate shall take effect until 45 days net overall contribution to the institu- after the Postal Service files a notice tional costs of the Postal Service; and of rate adjustment specifying that (iii) If mailer-specific costs are not rate. available, the source and derivation of (c) Commission findings that a the costs that are used shall be pro- planned Type 2 rate adjustment is not vided, including a discussion of the cur- inconsistent with 39 U.S.C. 3622 are pro- rency and reliability of those costs, visional and subject to subsequent re- and their suitability as a proxy for the view. mailer-specific costs. (2) A discussion of the changes in op- Subpart E—Rules for Rate Adjust- erations of the Postal Service that ments in Extraordinary and have resulted from the agreement. This Exceptional Circumstances shall include, for each year of the (Type 3 Rate Adjustments) agreement, identification of each component of the agreement known to en- § 3010.60 Applicability. hance the performance of mail prepara- The Postal Service may request to tion, processing, transportation, or adjust rates for market dominant prod- other functions in each year of the ucts in excess of the maximum rate ad- agreement. justment due to extraordinary or ex- (3) An analysis of the impact of the ceptional circumstances. In this sub- negotiated service agreement on the part, such requests are referred to as marketplace, including a discussion of exigent requests. any and all actions taken to protect the marketplace from unreasonable § 3010.61 Contents of exigent requests. harm. (a) Each exigent request shall include the following:

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(1) A schedule of the proposed rates; § 3010.63 Treatment of unused rate ad- (2) Calculations quantifying the in- justment authority. crease for each affected product and (a) Each exigent request will identify class; the unused rate adjustment authority (3) A full discussion of the extraor- available as of the date of the request dinary or exceptional circumstances for each class of mail and the available giving rise to the request, and a com- amount for each of the preceding 5 plete explanation of how both the re- years. quested overall increase and the spe- (b) Pursuant to an exigent request, cific rate adjustments requested relate rate adjustments may use existing un- to those circumstances; used rate adjustment authority in (4) A full discussion of why the re- amounts greater than the limitation quested rate adjustments are necessary described in § 3010.28 of this subpart. to enable the Postal Service, under (c) Exigent increases will exhaust all best practices of honest, efficient, and unused rate adjustment authority for economical management, to maintain each class of mail before imposing ad- and continue the development of postal ditional rate adjustments in excess of services of the kind and quality adapt- the maximum rate adjustment for any ed to the needs of the United States; class of mail. (5) A full discussion of why the requested rate adjustments are reason- § 3010.64 Expeditious treatment of exi- able and equitable as among types of gent requests. users of market dominant products; (6) An explanation of when, or under Requests under this subpart seek what circumstances, the Postal Service rate relief required by extraordinary or expects to be able to rescind the exi- exceptional circumstances and will be gent rate adjustments in whole or in treated with expedition at every stage. part; It is Commission policy to provide ap- (7) An analysis of the circumstances propriate relief as quickly as possible giving rise to the exigent request, consistent with statutory requirements which should, if applicable, include a and procedural fairness. discussion of whether the cir- § 3010.65 Special procedures applica- cumstances were foreseeable or could ble to exigent requests. have been avoided by reasonable prior action; and (a) The Commission will establish a (8) Such other information as the docket for each exigent request, Postal Service believes will assist the promptly publish notice of the request Commission to issue a timely deter- in the FEDERAL REGISTER, and post the mination of whether the requested rate filing on its Web site. The notice shall adjustments are consistent with appli- include: cable statutory policies. (1) The general nature of the pro- (b) The Postal Service shall identify ceeding; one or more knowledgeable Postal (2) A reference to legal authority Service official(s) who will be available under which the proceeding is to be to provide prompt responses to Com- conducted; mission requests for clarification re- (3) A concise description of the pro- lated to each topic specified in para- posals for changes in rates, fees, and graph (a) of this section. the Mail Classification Schedule; (4) The identification of an officer of § 3010.62 Supplemental information. the Commission to represent the inter- The Commission may require the ests of the general public in the docket; Postal Service to provide clarification (5) A specified period for public com- of its request or to provide information ment; and in addition to that called for by (6) Such other information as the § 3010.61 in order to gain a better under- Commission deems appropriate. standing of the circumstances leading (b) The Commission will hold a pub- to the request or the justification for lic hearing on the Postal Service re- the specific rate adjustments request. During the public hearing, requested. sponsible Postal Service officials will

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appear and respond under oath to ques- PART 3015—REGULATION OF RATES tions from the Commissioners or their FOR COMPETITIVE PRODUCTS designees addressing previously identified aspects of the Postal Service’s re- Sec. quest and the supporting information 3015.1 Scope. provided in response to the topics spec- 3015.2 Changes in rates of general applica- ified in § 3010.61(a). bility. (c) Interested persons will be given 3015.3 Decrease in rates of general applica- an opportunity to submit to the Com- bility. mission suggested relevant questions 3015.4 Change in class of general applicability. that might be posed during the public 3015.5 Rate or class not of general applica- hearing. Such questions, and any ex- bility. planatory materials submitted to clar- 3015.6 Sufficiency of information. ify the purpose of the questions, should 3015.7 Standards for compliance. be filed in accordance with § 3001.9 of AUTHORITY: 39 U.S.C. 503; 3633. this chapter, and will become part of the administrative record of the pro- SOURCE: 72 FR 63697, Nov. 9, 2007, unless ceeding. otherwise noted. (d) The timing and length of the pub- § 3015.1 Scope. lic hearing will depend on the nature of the circumstances giving rise to the re- Rules in this part are applicable to quest and the clarity and completeness competitive products. of the supporting materials provided § 3015.2 Changes in rates of general with the request. applicability. (e) If the Postal Service is unable to (a) When the Postal Service deter- provide adequate explanations during mines to change a rate or rates of gen- the public hearing, supplementary eral applicability, it shall file notice of written or oral responses may be re- the change with the Commission no quired. later than the date of publication of (f) Following the conclusion of the the decision in the FEDERAL REGISTER public hearings and submission of any concerning such change, but at least 30 supplementary materials interested days before the effective date of the persons will be given the opportunity change. to submit written comments on: (b) The notice filed with the Commis- (1) The sufficiency of the justifica- sion shall include an explanation and tion for an exigent rate adjustment; justification for the change, the effec- (2) The adequacy of the justification tive date, and a schedule of the for adjustments in the amounts re- changed rates. quested by the Postal Service; and (3) Whether the specific rate adjust- § 3015.3 Decrease in rates of general applicability. ments requested are reasonable and equitable. (a) When the Postal Service deter- (g) An opportunity to submit written mines to change a rate or rates of gen- reply comments will be given to the eral applicability for any competitive Postal Service and other interested product that results in a decrease in persons. the average rate of that product, it shall file notice of the change with the § 3010.66 Deadline for Commission de- Commission no later than the date of cision. publication of the decision in the FED- ERAL REGISTER concerning such The Commission will act expedi- change, but at least 30 days before the tiously on the Postal Service request, effective date of the change. taking into account all written com- (b) The notice filed with the Commis- ments. In every instance a Commission sion shall include an explanation and decision will be issued within 90 days of justification for the change, the effec- the filing of an exigent request. tive date, and a schedule of the changed rates.

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(c) In addition to the notice, the mitted, and explaining why, following Postal Service shall file with the Com- the change, competitive products in mission: total will be in compliance with 39 (1) Sufficient revenue and cost data U.S.C. 3633(a)(1) and (3). for the 12-month period following the effective date of the rate to dem- § 3015.6 Sufficiency of information. onstrate that each affected competi- If, after review of the information tive product will be in compliance with submitted pursuant to this part, the 39 U.S.C. 3633(a)(2); and Commission determines additional in- (2) A certified statement by a rep- formation is necessary to enable it to resentative of the Postal Service at- evaluate whether competitive products testing to the accuracy of the data sub- will be in compliance with 39 U.S.C. mitted, and explaining why, following 3633(a), it may, in its discretion, re- the change, competitive products in quire the Postal Service to provide ad- total will be in compliance with 39 ditional information as deemed nec- U.S.C. 3633(a)(1) and (3). essary.

§ 3015.4 Change in class of general ap- § 3015.7 Standards for compliance. plicability. For purposes of determining competi- (a) In the case of a change in class of tive products’ compliance with 39 general applicability, the Postal Serv- U.S.C. 3633, the Commission will apply ice shall file notice of the change with the following standards: the Commission no later than the date (a) Incremental costs will be used to of publication of the decision in the test for cross-subsidies by market dom- FEDERAL REGISTER, but at least 30 days inant products of competitive products. before the effective date of the in- To the extent that incremental cost crease. data are unavailable, the Commission (b) The notice filed with the Commis- will use the sum of competitive prod- sion shall include an explanation and ucts’ volume-variable costs and prod- justification for the change, the effec- uct-specific costs supplemented to in- tive date, and the record of proceedings clude causally related, group-specific regarding such decision. costs to test for cross-subsidies. (b) Each competitive product must § 3015.5 Rate or class not of general recover its attributable costs as de- applicability. fined in 39 U.S.C. 3631(b). Pursuant to (a) When the Postal Service deter- 39 U.S.C. 3631(b), the Commission will mines to add or change a rate or class calculate a competitive product’s at- not of general applicability, it shall tributable costs as the sum of its vol- file notice of its decision with the Com- ume-variable costs, product-specific mission at least 15 days before the ef- costs, and those inframarginal costs fective date of the change. calculated as part of a competitive (b) The notice filed with the Commis- product’s incremental costs. sion shall include an explanation and (c) Annually, on a fiscal year basis, justification for the change, the effec- the appropriate share of institutional tive date, the rate and class decision, costs to be recovered from competitive and the record of proceedings regarding products collectively is, at a minimum, such decision. 5.5 percent of the Postal Service’s total (c) In addition to the notice, the institutional costs. Postal Service shall file with the Com- [72 FR 63697, Nov. 9, 2007, as amended at 81 mission: FR 88123, Dec. 7, 2016] (1) Sufficient revenue and cost data for the 12-month period following the PART 3017—PROCEDURES RELATED effective date of the rate or class to demonstrate that each affected com- TO COMMISSION VIEWS petitive product will be in compliance Sec. with 39 U.S.C. 3633(a)(2); and 3017.1 Definitions in this part. (2) A certified statement by a rep- 3017.2 Purpose. resentative of the Postal Service at- 3017.3 Establishment and scope of docket. testing to the accuracy of the data sub- 3017.4 Comment deadline(s).

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3017.5 Commission discretion as to treat- The Commission may establish other ment of comments. deadlines for comments as appropriate. AUTHORITY: 39 U.S.C. 407; 503. (b) The Commission may suspend or forego solicitation of comments if it SOURCE: 81 FR 877, Jan. 8, 2016, unless oth- determines that such solicitation is erwise noted. not consistent with timely submission § 3017.1 Definitions in this part. of Commission views to the Secretary of State. (a) Modern rate regulation refers to the standards and criteria the Commis- § 3017.5 Commission discretion as to sion has established pursuant to 39 treatment of comments. U.S.C. 3622. The Commission will review timely (b) Views refers to the opinion the filed comments responding to a Com- Commission provides to the Secretary mission solicitation under this part of State pursuant to 39 U.S.C. 407(c)(1) prior to submitting its views to the on the consistency with modern rate Secretary of State. regulation of a proposed treaty, con- vention, or amendment that establishes a market dominant rate or clas- PART 3020—PRODUCT LISTS sification. Subpart A—Product Lists and the Mail § 3017.2 Purpose. Classification Schedule The rules in this part are intended to Sec. facilitate public participation in, and 3020.1 Applicability. promote the transparency of, the devel- 3020.2 Product lists. opment of Commission views. 3020.3 Notice of product list change. 3020.4 Mail Classification Schedule. 3020.5 Modifications to the Mail Classifica- § 3017.3 Establishment and scope of tion Schedule. docket. APPENDIX A TO SUBPART A OF PART 3020— (a) On or about 150 days before a Uni- MARKET DOMINANT PRODUCT LIST versal Postal Union Congress convenes APPENDIX B TO SUBPART A OF PART 3020— or such advance time as the Commis- COMPETITIVE PRODUCT LIST sion determines for any other 39 U.S.C. 407(c)(1) matter, the Commission will Subpart B—Requests Initiated by the Postal establish a docket to solicit comments Service To Modify the Product Lists on the general principles that should 3020.30 General. guide the Commission’s development of 3020.31 Contents of a request. views on relevant proposals, in a gen- 3020.32 Supporting justification. eral way, and on specific relevant pro- 3020.33 Docket and notice. posals, if the Commission is able to 3020.34 Review. make these available. 3020.35 Further proceedings. (b) The docket established pursuant Subpart C—Requests Initiated by Users of to paragraph (a) of this section may the Mail to Modify the Product Lists also include matters related to development of the Commission’s views, 3020.50 General. such as the availability of relevant pro- 3020.51 Contents of a request. posals, Commission views, other docu- 3020.52 Supporting justification. ments, or related actions. 3020.53 Docket and notice. (c) The Commission shall arrange for 3020.54 Postal Service notice and reply. 3020.55 Review. publication in the FEDERAL REGISTER 3020.56 Further proceedings. of the notice establishing each docket authorized under this part. Subpart D—Proposal of the Commission to Modify the Product Lists § 3017.4 Comment deadline(s). (a) The Commission shall establish a 3020.70 General. 3020.71 Contents of a proposal. deadline for comments upon establish- 3020.72 Supporting justification. ment of the docket that is consistent 3020.73 Docket and notice. with timely submission of the Commis- 3020.74 Postal Service notice and reply. sion’s views to the Secretary of State. 3020.75 Review.

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3020.76 Further proceedings. (c) The Mail Classification Schedule shall provide current price and classi- Subpart E—Requests Initiated by the Postal fication information applicable to the Service To Make Material Changes or products appearing on the market dom- Minor Corrections to the Mail Classi- inant and competitive product lists. fication Schedule (d) Once established, the product lists 3020.80 Material changes to product descrip- and the Mail Classification Schedule tions. may be modified subject to the proce- 3020.81 Supporting justification for material dures specified in this part. changes to product descriptions. 3020.82 Docket and notice of material § 3020.2 Product lists. changes to product descriptions. 3020.83 Commission review of material (a) Market Dominant Product List. The changes to product descriptions. market dominant product list shall be 3020.84–3020.89 [Reserved] published in the FEDERAL REGISTER at 3020.90 Minor corrections to product de- Appendix A to subpart A of part 3020— scriptions. Market Dominant Product List. 3020.91 Docket and notice of minor correc- (b) Competitive Product List. The com- tions to product descriptions. petitive product list shall be published 3020.92 Commission review of minor correc- in the FEDERAL REGISTER at Appendix tions to product descriptions. B to subpart A of part 3020—Competi- Subpart F—Size and Weight Limitations for tive Product List. Mail Matter § 3020.3 Notice of product list change. 3020.110 General. (a) Whenever the Postal Regulatory 3020.111 Limitations applicable to market Commission issues a final order that dominant mail matter. 3020.112 Limitations applicable to competi- modifies the list of products in the tive mail matter. market dominant category or the competitive category, it shall cause notice AUTHORITY: 39 U.S.C. 503; 3622; 3631; 3642; of such change to be published in the 3682. FEDERAL REGISTER. SOURCE: 72 FR 63698, Nov. 9, 2007, unless (b) Notice shall be submitted to the otherwise noted. FEDERAL REGISTER for publication within 6 months of the issue date of the Subpart A—Product Lists and the applicable final order that affects the Mail Classification Schedule change. (c) Modifications pending publication SOURCE: 81 FR 38954, June 15, 2016, unless in the FEDERAL REGISTER are effective otherwise noted. immediately upon written direction from the Postal Regulatory Commis- § 3020.1 Applicability. sion. (a) The rules in this part require the (d) The FEDERAL REGISTER document Postal Regulatory Commission to es- shall: tablish and maintain lists of Postal (1) Identify modifications to the cur- Service products and a Mail Classifica- rent list of market dominant products tion Schedule. and the current list of competitive (b) The product lists shall categorize products; and postal products as either market domi- (2) Indicate how and when the pre- nant or competitive. As established, vious product lists have been modified. the market dominant and competitive product lists shall be consistent with § 3020.4 Mail Classification Schedule. the market dominant products identi- (a) The Postal Regulatory Commis- fied in 39 U.S.C. 3621(a) and the com- sion shall publish a Mail Classification petitive products identified in 39 U.S.C. Schedule (including both current and 3631(a). The market dominant and com- previous versions) on its Web site at petitive product lists shall also include http://www.prc.gov. Copies of the Mail products identified as market tests Classification Schedule also shall be pursuant to 39 U.S.C. 3641 and non- available during regular business hours postal pursuant to 39 U.S.C. 404(e). for reference and public inspection at

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the Postal Regulatory Commission lo- (C) The identification of each product cated at 901 New York Avenue NW., not of general applicability within the Suite 200, Washington, DC 20268–0001. meaning of 39 U.S.C. 3632(b)(3) for com- (b) The Mail Classification Schedule petitive products; shall include, but shall not be limited (D) Where applicable, the identifica- to: tion of a product as an experimental (1) Front matter, including: product undergoing a market test; and (i) A cover page identifying the title (E) Where applicable, the identifica- of the document as the Mail Classifica- tion of a product as a nonpostal prod- tion Schedule, the source of the docu- uct; and ment as the Postal Regulatory Com- (4) A glossary of terms and condi- mission (including Commission seal), tions; and and the publication date; (5) A list of country codes for inter- (ii) A table of contents; national mail prices. (iii) A table specifying the revision history of the Mail Classification § 3020.5 Modifications to the Mail Clas- sification Schedule. Schedule; and (iv) A table identifying Postal Serv- (a) Whenever the Postal Regulatory ice trademarks; and Commission issues a final order that (2) Information concerning market modifies the Mail Classification Sched- dominant products, including: ule, it shall update the Mail Classifica- (i) A copy of the Market Dominant tion Schedule appearing on its Web site Product List; at http://www.prc.gov in accordance (ii) Descriptions of each market dom- with paragraph (b) of this section. inant product organized by the class of (b) Modification to the Mail Classi- product, including: fication Schedule shall be incorporated (A) Where applicable, the general within 3 months of the issue date of the characteristics, size and weight limita- final order. tions, minimum volume requirements, (c) Modifications pending incorpora- price categories, and available optional tion into the Mail Classification Sched- features of each market dominant ule are effective immediately upon product; written direction from the Postal Reg- (B) A schedule listing the rates and ulatory Commission. fees for each market dominant product; APPENDIX A TO SUBPART A OF PART (C) Where applicable, the identifica- 3020—MARKET DOMINANT PRODUCT LIST tion of a product as a special classification within the meaning of 39 U.S.C. (An asterisk (*) indicates an organizational 3622(c)(10) for market dominant prod- class or group, not a Postal Service product.) ucts; Part A—Market Dominant Products (D) Where applicable, the identification of a product as an experimental 1000 Market Dominant Product List product undergoing a market test; and First-Class Mail * (E) Where applicable, the identifica- Single-Piece Letters/Postcards tion of a product as a nonpostal prod- Presorted Letters/Postcards uct; and Flats (3) Information concerning competi- Outbound Single-Piece First-Class tive products, including: Mail International (i) A copy of the competitive product Inbound Letter Post list; and USPS Marketing Mail (Commercial (ii) Descriptions of each competitive and Nonprofit) * product, including: High Density and Saturation Letters (A) Where applicable, the general High Density and Saturation Flats/ characteristics, size and weight limita- Parcels tions, minimum volume requirements, Carrier Route price categories, and available optional Letters features of each competitive product; Flats (B) A schedule listing the current Parcels rates and fees for each competitive Every Door Direct Mail—Retail product of general applicability; Periodicals *

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In-County Periodicals International Surface Air List (ISAL) Outside County Periodicals International Direct Sacks—M-Bags Package Services * Outbound Single-Piece First-Class Pack- Alaska Bypass Service age International Service Bound Printed Matter Flats Negotiated Service Agreements * Bound Printed Matter Parcels Domestic * Media Mail/Library Mail Priority Mail Express Contract 16 Special Services * Priority Mail Express Contract 23 Ancillary Services Priority Mail Express Contract 26 International Ancillary Services Priority Mail Express Contract 27 Address Management Services Priority Mail Express Contract 28 Caller Service Priority Mail Express Contract 29 Credit Card Authentication Priority Mail Express Contract 30 Priority Mail Express Contract 31 International Reply Coupon Service Priority Mail Express Contract 32 International Business Reply Mail Priority Mail Express Contract 34 Service Priority Mail Express Contract 35 Money Orders Priority Mail Express Contract 36 Post Office Box Service Priority Mail Express Contract 37 Customized Postage Priority Mail Express Contract 38 Stamp Fulfillment Services Priority Mail Express Contract 39 Negotiated Service Agreements * Priority Mail Express Contract 40 Priority Mail Express Contract 41 Domestic * Priority Mail Express Contract 42 PHI Acquisitions, Inc. Negotiated Priority Mail Express Contract 43 Service Agreement Priority Mail Express Contract 44 International * Priority Mail Express Contract 45 Inbound Market Dominant Multi- Priority Mail Express Contract 46 Service Agreements with Foreign Priority Mail Express Contract 47 Postal Operators 1 Priority Mail Express Contract 48 Inbound Market Dominant Expre´s Priority Mail Express Contract 49 Priority Mail Express Contract 50 Service Agreement 1 Priority Mail Express Contract 51 Inbound Market Dominant Reg- Priority Mail Express Contract 52 istered Service Agreement 1 Priority Mail Express Contract 53 Inbound Market Dominant PRIME Priority Mail Express Contract 54 Tracked Service Agreement Priority Mail Express Contract 55 Nonpostal Services * Priority Mail Express Contract 56 Alliances with the Private Sector to Priority Mail Express Contract 57 Priority Mail Express Contract 58 Defray Cost of Key Postal Func- Priority Mail Express Contract 59 tions Priority Mail Express Contract 60 Philatelic Sales Priority Mail Express Contract 61 Market Test * Parcel Return Service Contract 5 Parcel Return Service Contract 6 [82 FR 48633, Oct. 19, 2017] Parcel Return Service Contract 7 Parcel Return Service Contract 8 APPENDIX B TO SUBPART A OF PART Parcel Return Service Contract 9 3020—COMPETITIVE PRODUCT LIST Parcel Return Service Contract 10 (An asterisk (*) indicates an organizational Priority Mail Contract 77 group, not a Postal Service product.) Priority Mail Contract 78 Priority Mail Contract 80 Domestic Products * Priority Mail Contract 94 Priority Mail Contract 110 Priority Mail Express Priority Mail Contract 111 Priority Mail Priority Mail Contract 119 Parcel Select Priority Mail Contract 121 Parcel Return Service Priority Mail Contract 123 First-Class Package Service Priority Mail Contract 125 USPS Retail Ground Priority Mail Contract 126 International Products * Priority Mail Contract 127 Priority Mail Contract 130 Outbound International Expedited Services Priority Mail Contract 131 Inbound Parcel Post (at UPU rates) Priority Mail Contract 132 Outbound Priority Mail International Priority Mail Contract 133 International Priority Airmail (IPA) Priority Mail Contract 134

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Priority Mail Contract 136 Priority Mail Contract 217 Priority Mail Contract 137 Priority Mail Contract 218 Priority Mail Contract 138 Priority Mail Contract 219 Priority Mail Contract 140 Priority Mail Contract 220 Priority Mail Contract 141 Priority Mail Contract 221 Priority Mail Contract 144 Priority Mail Contract 222 Priority Mail Contract 145 Priority Mail Contract 223 Priority Mail Contract 146 Priority Mail Contract 224 Priority Mail Contract 148 Priority Mail Contract 225 Priority Mail Contract 149 Priority Mail Contract 226 Priority Mail Contract 150 Priority Mail Contract 227 Priority Mail Contract 153 Priority Mail Contract 229 Priority Mail Contract 154 Priority Mail Contract 230 Priority Mail Contract 155 Priority Mail Contract 231 Priority Mail Contract 156 Priority Mail Contract 232 Priority Mail Contract 157 Priority Mail Contract 233 Priority Mail Contract 158 Priority Mail Contract 234 Priority Mail Contract 159 Priority Mail Contract 235 Priority Mail Contract 160 Priority Mail Contract 236 Priority Mail Contract 161 Priority Mail Contract 237 Priority Mail Contract 163 Priority Mail Contract 238 Priority Mail Contract 164 Priority Mail Contract 239 Priority Mail Contract 166 Priority Mail Contract 240 Priority Mail Contract 167 Priority Mail Contract 242 Priority Mail Contract 168 Priority Mail Contract 243 Priority Mail Contract 169 Priority Mail Contract 244 Priority Mail Contract 170 Priority Mail Contract 245 Priority Mail Contract 171 Priority Mail Contract 246 Priority Mail Contract 172 Priority Mail Contract 247 Priority Mail Contract 174 Priority Mail Contract 248 Priority Mail Contract 175 Priority Mail Contract 249 Priority Mail Contract 176 Priority Mail Contract 250 Priority Mail Contract 177 Priority Mail Contract 251 Priority Mail Contract 178 Priority Mail Contract 252 Priority Mail Contract 179 Priority Mail Contract 253 Priority Mail Contract 180 Priority Mail Contract 254 Priority Mail Contract 181 Priority Mail Contract 255 Priority Mail Contract 185 Priority Mail Contract 256 Priority Mail Contract 186 Priority Mail Contract 257 Priority Mail Contract 188 Priority Mail Contract 258 Priority Mail Contract 189 Priority Mail Contract 259 Priority Mail Contract 190 Priority Mail Contract 260 Priority Mail Contract 191 Priority Mail Contract 261 Priority Mail Contract 192 Priority Mail Contract 262 Priority Mail Contract 193 Priority Mail Contract 263 Priority Mail Contract 194 Priority Mail Contract 264 Priority Mail Contract 195 Priority Mail Contract 265 Priority Mail Contract 196 Priority Mail Contract 266 Priority Mail Contract 197 Priority Mail Contract 267 Priority Mail Contract 198 Priority Mail Contract 268 Priority Mail Contract 199 Priority Mail Contract 269 Priority Mail Contract 200 Priority Mail Contract 270 Priority Mail Contract 201 Priority Mail Contract 271 Priority Mail Contract 202 Priority Mail Contract 272 Priority Mail Contract 203 Priority Mail Contract 273 Priority Mail Contract 204 Priority Mail Contract 274 Priority Mail Contract 205 Priority Mail Contract 275 Priority Mail Contract 206 Priority Mail Contract 276 Priority Mail Contract 207 Priority Mail Contract 277 Priority Mail Contract 208 Priority Mail Contract 278 Priority Mail Contract 209 Priority Mail Contract 279 Priority Mail Contract 210 Priority Mail Contract 280 Priority Mail Contract 211 Priority Mail Contract 281 Priority Mail Contract 212 Priority Mail Contract 282 Priority Mail Contract 213 Priority Mail Contract 283 Priority Mail Contract 215 Priority Mail Contract 284 Priority Mail Contract 216 Priority Mail Contract 285

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Priority Mail Contract 286 Priority Mail Contract 354 Priority Mail Contract 287 Priority Mail Contract 355 Priority Mail Contract 288 Priority Mail Contract 356 Priority Mail Contract 289 Priority Mail Contract 357 Priority Mail Contract 290 Priority Mail Contract 358 Priority Mail Contract 291 Priority Mail Contract 359 Priority Mail Contract 292 Priority Mail Contract 360 Priority Mail Contract 293 Priority Mail Contract 361 Priority Mail Contract 294 Priority Mail Contract 362 Priority Mail Contract 295 Priority Mail Contract 363 Priority Mail Contract 297 Priority Mail Contract 364 Priority Mail Contract 298 Priority Mail Contract 365 Priority Mail Contract 299 Priority Mail Contract 367 Priority Mail Contract 300 Priority Mail Contract 368 Priority Mail Contract 301 Priority Mail Contract 369 Priority Mail Contract 302 Priority Mail Contract 370 Priority Mail Contract 303 Priority Mail Contract 371 Priority Mail Contract 304 Priority Mail Contract 372 Priority Mail Contract 305 Priority Mail Contract 373 Priority Mail Contract 306 Priority Mail Contract 374 Priority Mail Contract 307 Priority Mail Contract 375 Priority Mail Contract 308 Priority Mail Contract 376 Priority Mail Contract 309 Priority Mail Contract 377 Priority Mail Contract 310 Priority Mail Contract 378 Priority Mail Contract 311 Priority Mail Contract 379 Priority Mail Contract 312 Priority Mail Contract 380 Priority Mail Contract 313 Priority Mail Contract 381 Priority Mail Contract 314 Priority Mail Contract 382 Priority Mail Contract 315 Priority Mail Contract 383 Priority Mail Contract 316 Priority Mail Contract 384 Priority Mail Contract 317 Priority Mail Contract 385 Priority Mail Contract 318 Priority Mail Contract 386 Priority Mail Contract 319 Priority Mail Contract 387 Priority Mail Contract 320 Priority Mail Contract 388 Priority Mail Contract 321 Priority Mail Contract 389 Priority Mail Contract 322 Priority Mail Contract 390 Priority Mail Contract 323 Priority Mail Contract 391 Priority Mail Contract 324 Priority Mail Contract 392 Priority Mail Contract 325 Priority Mail Contract 393 Priority Mail Contract 326 Priority Mail Contract 394 Priority Mail Contract 327 Priority Mail Contract 395 Priority Mail Contract 328 Priority Mail Contract 396 Priority Mail Contract 329 Priority Mail Contract 397 Priority Mail Contract 330 Priority Mail Contract 398 Priority Mail Contract 331 Priority Mail Contract 399 Priority Mail Contract 332 Priority Mail Contract 400 Priority Mail Contract 333 Priority Mail Contract 401 Priority Mail Contract 334 Priority Mail Contract 402 Priority Mail Contract 335 Priority Mail Contract 403 Priority Mail Contract 336 Priority Mail Contract 404 Priority Mail Contract 337 Priority Mail Contract 405 Priority Mail Contract 338 Priority Mail Contract 406 Priority Mail Contract 339 Priority Mail Contract 407 Priority Mail Contract 340 Priority Mail Contract 408 Priority Mail Contract 341 Priority Mail Contract 409 Priority Mail Contract 342 Priority Mail Contract 410 Priority Mail Contract 343 Priority Mail Contract 411 Priority Mail Contract 344 Priority Mail Contract 412 Priority Mail Contract 345 Priority Mail Contract 413 Priority Mail Contract 346 Priority Mail Contract 414 Priority Mail Contract 347 Priority Mail Contract 415 Priority Mail Contract 348 Priority Mail Contract 416 Priority Mail Contract 349 Priority Mail Contract 417 Priority Mail Contract 350 Priority Mail Contract 418 Priority Mail Contract 351 Priority Mail Contract 419 Priority Mail Contract 352 Priority Mail Contract 420 Priority Mail Contract 353 Priority Mail Contract 421

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Priority Mail Contract 422 Priority Mail Express & Priority Mail Con- Priority Mail Contract 423 tract 48 Priority Mail Contract 424 Priority Mail Express & Priority Mail Con- Priority Mail Contract 425 tract 49 Priority Mail Express & Priority Mail Con- Priority Mail Express & Priority Mail Con- tract 12 tract 50 Priority Mail Express & Priority Mail Con- Priority Mail Express & Priority Mail Con- tract 13 tract 51 Priority Mail Express & Priority Mail Con- Priority Mail Express & Priority Mail Con- tract 17 tract 52 Priority Mail Express & Priority Mail Con- Priority Mail Express & Priority Mail Con- tract 18 tract 53 Priority Mail Express & Priority Mail Con- Priority Mail Express & Priority Mail Con- tract 19 tract 54 Priority Mail Express & Priority Mail Con- Priority Mail Express & Priority Mail Con- tract 20 tract 55 Priority Mail Express & Priority Mail Con- Priority Mail Express & Priority Mail Con- tract 21 tract 56 Priority Mail Express & Priority Mail Con- Priority Mail Express & Priority Mail Con- tract 22 tract 57 Priority Mail Express & Priority Mail Con- Priority Mail Express & Priority Mail Con- tract 23 tract 58 Priority Mail Express & Priority Mail Con- Priority Mail Express & Priority Mail Con- tract 24 tract 59 Priority Mail Express & Priority Mail Con- Priority Mail Express & Priority Mail Con- tract 25 tract 60 Priority Mail Express & Priority Mail Con- Priority Mail Express & Priority Mail Con- tract 27 tract 61 Priority Mail Express & Priority Mail Con- Priority Mail Express & Priority Mail Con- tract 28 tract 62 Priority Mail Express & Priority Mail Con- Priority Mail Express & Priority Mail Con- tract 29 tract 63 Parcel Select & Parcel Return Service Priority Mail Express & Priority Mail Con- Contract 3 tract 30 Parcel Select & Parcel Return Service Priority Mail Express & Priority Mail Con- Contract 5 tract 31 Parcel Select & Parcel Return Service Priority Mail Express & Priority Mail Con- Contract 6 tract 32 Parcel Select Contract 2 Priority Mail Express & Priority Mail Con- Parcel Select Contract 8 tract 33 Parcel Select Contract 9 Priority Mail Express & Priority Mail Con- Parcel Select Contract 10 tract 34 Parcel Select Contract 11 Priority Mail Express & Priority Mail Con- Parcel Select Contract 12 tract 35 Parcel Select Contract 13 Priority Mail Express & Priority Mail Con- Parcel Select Contract 14 tract 36 Parcel Select Contract 15 Priority Mail Express & Priority Mail Con- Parcel Select Contract 16 tract 37 Parcel Select Contract 17 Priority Mail Express & Priority Mail Con- Parcel Select Contract 18 tract 38 Parcel Select Contract 19 Priority Mail Express & Priority Mail Con- Parcel Select Contract 20 tract 39 Parcel Select Contract 21 Priority Mail Express & Priority Mail Con- Parcel Select Contract 22 tract 41 Parcel Select Contract 23 Priority Mail Express & Priority Mail Con- Parcel Select Contract 24 tract 42 Parcel Select Contract 25 Priority Mail Express & Priority Mail Con- Parcel Select Contract 26 tract 43 Parcel Select Contract 27 Priority Mail Express & Priority Mail Con- Parcel Select Contract 28 tract 44 Parcel Select Contract 29 Priority Mail Express & Priority Mail Con- Parcel Select Contract 30 tract 45 Priority Mail—Non-Published Rates Priority Mail Express & Priority Mail Con- Priority Mail—Non-Published Rates 1 tract 46 First-Class Package Service Contract 38 Priority Mail Express & Priority Mail Con- First-Class Package Service Contract 39 tract 47 First-Class Package Service Contract 40

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First-Class Package Service Contract 41 Priority Mail Express, Priority Mail & First-Class Package Service Contract 42 First-Class Package Service Contract14 First-Class Package Service Contract 43 Priority Mail Express, Priority Mail & First-Class Package Service Contract 44 First-Class Package Service Contract 15 First-Class Package Service Contract 45 Priority Mail Express, Priority Mail & First-Class Package Service Contract 46 First-Class Package Service Contract 16 First-Class Package Service Contract 47 Priority Mail Express, Priority Mail & First-Class Package Service Contract 48 First-Class Package Service Contract 17 First-Class Package Service Contract 49 Priority Mail Express, Priority Mail & First-Class Package Service Contract 50 First-Class Package Service Contract 18 First-Class Package Service Contract 51 Priority Mail Express, Priority Mail & First-Class Package Service Contract 52 First-Class Package Service Contract 19 First-Class Package Service Contract 53 Priority Mail Express, Priority Mail & First-Class Package Service Contract 54 First-Class Package Service Contract 20 First-Class Package Service Contract 55 Priority Mail Express, Priority Mail & First-Class Package Service Contract 57 First-Class Package Service Contract 21 First-Class Package Service Contract 59 Priority Mail Express, Priority Mail & First-Class Package Service Contract 60 First-Class Package Service Contract 22 First-Class Package Service Contract 61 Priority Mail Express, Priority Mail & First-Class Package Service Contract 62 First-Class Package Service Contract 23 First-Class Package Service Contract 63 Priority Mail Express, Priority Mail & First-Class Package Service Contract 64 First-Class Package Service Contract 24 First-Class Package Service Contract 65 Priority Mail Express, Priority Mail & First-Class Package Service Contract 66 First-Class Package Service Contract 25 First-Class Package Service Contract 67 Priority Mail Express, Priority Mail & First-Class Package Service Contract 68 First-Class Package Service Contract 26 First-Class Package Service Contract 69 Priority Mail Express, Priority Mail & First-Class Package Service Contract 71 First-Class Package Service Contract 27 First-Class Package Service Contract 72 Priority Mail Express, Priority Mail & First-Class Package Service Contract 73 First-Class Package Service Contract 28 First-Class Package Service Contract 74 Priority Mail Express, Priority Mail & First-Class Package Service Contract 75 First-Class Package Service Contract 29 First-Class Package Service Contract 76 Priority Mail Express, Priority Mail & First-Class Package Service Contract 77 First-Class Package Service Contract 30 First-Class Package Service Contract 78 Priority Mail Express, Priority Mail & First-Class Package Service Contract 79 First-Class Package Service Contract 31 First-Class Package Service Contract 80 Priority Mail Express, Priority Mail & First-Class Package Service Contract 81 First-Class Package Service Contract 32 First-Class Package Service Contract 82 Priority Mail & First-Class Package Serv- First-Class Package Service Contract 83 ice Contract 2 First-Class Package Service Contract 84 Priority Mail & First-Class Package Serv- First-Class Package Service Contract 85 ice Contract 4 First-Class Package Service Contract 86 Priority Mail & First-Class Package Serv- First-Class Package Service Contract 87 ice Contract 6 First-Class Package Service Contract 88 Priority Mail & First-Class Package Serv- First-Class Package Service Contract 89 ice Contract 7 First-Class Package Service Contract 90 Priority Mail & First-Class Package Serv- First-Class Package Service Contract 91 ice Contract 8 Priority Mail Express, Priority Mail & Priority Mail & First-Class Package Serv- First-Class Package Service Contract 5 ice Contract 9 Priority Mail Express, Priority Mail & Priority Mail & First-Class Package Serv- First-Class Package Service Contract 6 ice Contract 10 Priority Mail Express, Priority Mail & Priority Mail & First-Class Package Serv- First-Class Package Service Contract 7 ice Contract 11 Priority Mail Express, Priority Mail & Priority Mail & First-Class Package Serv- First-Class Package Service Contract 8 ice Contract 13 Priority Mail Express, Priority Mail & Priority Mail & First-Class Package Serv- First-Class Package Service Contract 9 ice Contract 15 Priority Mail Express, Priority Mail & Priority Mail & First-Class Package Serv- First-Class Package Service Contract 10 ice Contract 16 Priority Mail Express, Priority Mail & Priority Mail & First-Class Package Serv- First-Class Package Service Contract 11 ice Contract 17 Priority Mail Express, Priority Mail & Priority Mail & First-Class Package Serv- First-Class Package Service Contract 12 ice Contract 18 Priority Mail Express, Priority Mail & Priority Mail & First-Class Package Serv- First-Class Package Service Contract 13 ice Contract 19

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Priority Mail & First-Class Package Serv- Priority Mail & First-Class Package Serv- ice Contract 20 ice Contract 53 Priority Mail & First-Class Package Serv- Priority Mail & First-Class Package Serv- ice Contract 21 ice Contract 54 Priority Mail & First-Class Package Serv- Priority Mail & First-Class Package Serv- ice Contract 22 ice Contract 55 Priority Mail & First-Class Package Serv- Priority Mail & First-Class Package Serv- ice Contract 23 ice Contract 56 Priority Mail & First-Class Package Serv- Priority Mail & First-Class Package Serv- ice Contract 24 ice Contract 57 Priority Mail & First-Class Package Serv- Priority Mail & First-Class Package Serv- ice Contract 25 ice Contract 58 Priority Mail & First-Class Package Serv- Priority Mail & First-Class Package Serv- ice Contract 26 ice Contract 59 Priority Mail & First-Class Package Serv- Priority Mail & First-Class Package Serv- ice Contract 27 ice Contract 60 Priority Mail & First-Class Package Serv- Priority Mail & First-Class Package Serv- ice Contract 28 ice Contract 61 Priority Mail & First-Class Package Serv- Priority Mail & First-Class Package Serv- ice Contract 29 ice Contract 62 Priority Mail & First-Class Package Serv- Priority Mail & First-Class Package Serv- ice Contract 30 ice Contract 63 Priority Mail & First-Class Package Serv- Priority Mail & First-Class Package Serv- ice Contract 31 ice Contract 64 Priority Mail & First-Class Package Serv- Priority Mail & First-Class Package Serv- ice Contract 65 ice Contract 32 Priority Mail & First-Class Package Serv- Priority Mail & First-Class Package Serv- ice Contract 66 ice Contract 33 Priority Mail & First-Class Package Serv- Priority Mail & First-Class Package Serv- ice Contract 67 ice Contract 34 Priority Mail & First-Class Package Serv- Priority Mail & First-Class Package Serv- ice Contract 68 ice Contract 35 Priority Mail & First-Class Package Serv- Priority Mail & First-Class Package Serv- ice Contract 69 ice Contract 36 Priority Mail & First-Class Package Serv- Priority Mail & First-Class Package Serv- ice Contract 70 ice Contract 37 Priority Mail & First-Class Package Serv- Priority Mail & First-Class Package Serv- ice Contract 71 ice Contract 38 Priority Mail & First-Class Package Serv- Priority Mail & First-Class Package Serv- ice Contract 72 ice Contract 39 Priority Mail & First-Class Package Serv- Priority Mail & First-Class Package Serv- ice Contract 73 ice Contract 40 Priority Mail & First-Class Package Serv- Priority Mail & First-Class Package Serv- ice Contract 74 ice Contract 41 Priority Mail & First-Class Package Serv- Priority Mail & First-Class Package Serv- ice Contract 75 ice Contract 42 Priority Mail & First-Class Package Serv- Priority Mail & First-Class Package Serv- ice Contract 76 ice Contract 43 Priority Mail & Parcel Select Contract 1 Priority Mail & First-Class Package Serv- Priority Mail & Parcel Select Contract 2 ice Contract 44 Priority Mail Express & First-Class Pack- Priority Mail & First-Class Package Serv- age Service Contract 1 ice Contract 45 Priority Mail Express & First-Class Pack- Priority Mail & First-Class Package Serv- age Service Contract 2 ice Contract 46 Priority Mail & First-Class Package Serv- Outbound International * ice Contract 47 Global Expedited Package Services (GEPS) Priority Mail & First-Class Package Serv- Contracts ice Contract 48 GEPS 3 Priority Mail & First-Class Package Serv- GEPS 5 ice Contract 49 GEPS 6 Priority Mail & First-Class Package Serv- GEPS 7 ice Contract 50 GEPS 8 Priority Mail & First-Class Package Serv- GEPS 9 ice Contract 51 Global Bulk Economy (GBE) Contracts Priority Mail & First-Class Package Serv- Global Plus Contracts ice Contract 52 Global Plus 1C

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Global Plus 1D International Business Reply Service Com- Global Plus 1E petitive Contract 1 Global Plus 2C International Business Reply Service Com- Global Plus 3 petitive Contract 3 Global Reseller Expedited Package Con- Inbound Direct Entry Contracts with Cus- tracts tomers Global Reseller Expedited Package Serv- Inbound Direct Entry Contracts with For- ices 1 eign Postal Administrations Global Reseller Expedited Package Serv- Inbound Direct Entry Contracts with For- ices 2 eign Postal Administrations Global Reseller Expedited Package Serv- Inbound Direct Entry Contracts with For- ices 3 eign Postal Administrations 1 Global Reseller Expedited Package Serv- Inbound EMS ices 4 Inbound EMS 2 Global Expedited Package Services (GEPS)— Inbound Air Parcel Post (at non-UPU rates) Non-Published Rates Royal Mail Group Inbound Air Parcel Post Global Expedited Package Services Agreement (GEPS)—Non-Published Rates 2 Inbound Competitive Multi-Service Agree- Global Expedited Package Services ments with Foreign Postal Operators (GEPS)—Non-Published Rates 3 Inbound Competitive Multi-Service Agree- Global Expedited Package Services ments with Foreign Postal Operators 1 (GEPS)—Non-Published Rates 4 Special Services * Global Expedited Package Services (GEPS)—Non-Published Rates 5 Address Enhancement Services Global Expedited Package Services Greeting Cards, Gift Cards, and Stationery (GEPS)—Non-Published Rates 6 International Ancillary Services Global Expedited Package Services International Money Transfer Service—Out- (GEPS)—Non-Published Rates 7 bound Global Expedited Package Services International Money Transfer Service—In- (GEPS)—Non-Published Rates 8 bound Global Expedited Package Services Premium Forwarding Service (GEPS)—Non-Published Rates 9 Shipping and Mailing Supplies Global Expedited Package Services Post Office Box Service (GEPS)—Non-Published Rates 10 Competitive Ancillary Services Global Expedited Package Services Nonpostal Services * (GEPS)—Non-Published Rates 11 Global Expedited Package Services Advertising (GEPS)—Non-Published Rates 12 Licensing of Intellectual Property other Global Expedited Package Services than Officially Licensed Retail Products (GEPS)—Non-Published Rates 13 (OLRP) Priority Mail International Regional Rate Mail Service Promotion Boxes—Non-Published Rates Officially Licensed Retail Products (OLRP) Outbound Competitive International Mer- Passport Photo Service chandise Return Service Photocopying Service Agreement with Royal Mail Group, Ltd. Rental, Leasing, Licensing or other Non-Sale Priority Mail International Regional Rate Disposition of Tangible Property Boxes Contracts Training Facilities and Related Services Priority Mail International Regional Rate USPS Electronic Postmark (EPM) Program Boxes Contracts 1 Market Tests * Competitive International Merchandise Return Service Agreementswith Foreign Customized Delivery Postal Operators 1 Global eCommerce Marketplace (GeM) Competitive International Merchandise [83 FR 18425, Apr. 27, 2018] Return Service Agreementswith Foreign Postal Operators 1 Competitive International Merchandise Subpart B—Requests Initiated by Return Service Agreementswith Foreign the Postal Service To Modify Postal Operators 2 the Product Lists Alternative Delivery Provider (ADP) Con- tracts ADP 1 § 3020.30 General. Alternative Delivery Provider Reseller (ADPR) Contracts ADPR 1 The Postal Service, by filing a request with the Commission, may pro- Inbound International * pose a modification to the market International Business Reply Service (IBRS) dominant product list or the competi- Competitive Contracts tive product list. For purposes of this

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part, modification shall be defined as into account the factors of 39 U.S.C. adding a product to a list, removing a 3622(c); product from a list, or moving a prod- (c) Explain why, as to competitive uct from one list to the other list. products, the addition, deletion, or transfer will not result in the violation [81 FR 38957, June 15, 2016] of any of the standards of 39 U.S.C. § 3020.31 Contents of a request. 3633; (d) Verify that the change does not A request to modify the market dom- classify as competitive a product over inant product list or the competitive which the Postal Service exercises suf- product list shall: ficient market power that it can, with- (a) Provide the name, and class if ap- out risk of losing a significant level of plicable, of each product that is the business to other firms offering similar subject of the request; products: (b) Provide a copy of the Governor’s (1) Set the price of such product sub- decision supporting the request, if any; stantially above costs; (c) Indicate whether the request pro- (2) Raise prices significantly; poses to add a product to the market (3) Decrease quality; or dominant list or the competitive list, (4) Decrease output. remove a product from the market (e) Explain whether or not each prod- dominant list or the competitive list, uct that is the subject of the request is or transfer a product from the market covered by the postal monopoly as re- dominant list to the competitive list or served to the Postal Service under 18 from the competitive list to the mar- U.S.C. 1696 subject to the exceptions ket dominant list; set forth in 39 U.S.C. 601; (d) Indicate whether each product (f) Provide a description of the avail- that is the subject of the request is: ability and nature of enterprises in the (1) A special classification within the private sector engaged in the delivery meaning of 39 U.S.C. 3622(c)(10) for mar- of the product; ket dominant products; (g) Provide any information available (2) A product not of general applica- on the views of those who use the prod- bility within the meaning of 39 U.S.C. uct on the appropriateness of the pro- 3632(b)(3) for competitive products; or posed modification; (3) A non-postal product. (h) Provide a description of the likely (e) Provide all supporting justifica- impact of the proposed modification on tion upon which the Postal Service small business concerns; and proposes to rely; and (i) Include such information and (f) Include a copy of the applicable data, and such statements of reasons sections of the Mail Classification and bases, as are necessary and appro- Schedule and the proposed changes priate to fully inform the Commission therein in legislative format. of the nature, scope, significance, and impact of the proposed modification. § 3020.32 Supporting justification. Supporting justification shall be in § 3020.33 Docket and notice. the form of a statement from one or The Commission will establish a more knowledgeable Postal Service of- docket for each request to modify the ficial(s) who sponsors the request and market dominant list or the competi- attests to the accuracy of the informa- tive product list, promptly publish no- tion contained within the statement. tice of the request in the FEDERAL REG- The justification shall: ISTER, and post the filing on its Web (a) Demonstrate why the change is in site. The notice shall include: accordance with the policies and the (a) The general nature of the pro- applicable criteria of chapter 36 of title ceeding; 39 of the United States Code; (b) A reference to legal authority to (b) Explain why, as to market domi- which the proceeding is to be con- nant products, the change is not incon- ducted; sistent with each requirement of 39 (c) A concise description of the pro- U.S.C. 3622(d), and that it advances the posals for changes in the Mail Classi- objectives of 39 U.S.C. 3622(b), taking fication Schedule;

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(d) The identification of an officer of Subpart C—Requests Initiated by the Commission to represent the inter- Users of the Mail to Modify the ests of the general public in the docket; Product Lists (e) A specified period for public comment; and § 3020.50 General. (f) Such other information as the Users of the mail, by filing a request Commission deems appropriate. with the Commission, may propose a modification to the market dominant § 3020.34 Review. product list or the competitive product The Commission shall review the re- list. For purposes of this part, modi- quest and responsive comments. The fication shall be defined as adding a Commission shall either: product to a list, removing a product (a) Approve the request to modify the from a list, or transferring a product market dominant and competitive from one list to the other list. product lists; [81 FR 38957, June 15, 2016] (b) Institute further proceedings to consider all or part of the request if it § 3020.51 Contents of a request. finds that there is substantial likeli- A request to modify the market dom- hood that the modification is incon- inant product list or the competitive sistent with statutory policies or Com- product list shall: mission rules, and explain its reasons (a) Provide the name, and class if ap- for not approving the request to modify plicable, of each product that is the the market dominant and competitive subject of the request; product lists; (b) Indicate whether the request proposes to add a product to the market (c) Provide an opportunity for the dominant list or the competitive list, Postal Service to modify its request; or remove a product from the market (d) Direct other action as the Com- dominant list or the competitive list, mission may consider appropriate. or move a product from the market dominant list to the competitive list or § 3020.35 Further proceedings. from the competitive list to the mar- If the Commission determines that ket dominant list; further proceedings are necessary, a (c) Indicate whether each product conference shall be scheduled to con- that is the subject of the request is: sider the concerns expressed by the (1) A special classification within the Commission. Written statements com- meaning of 39 U.S.C. 3622(c)(10) for mar- menting on the Commission’s concerns ket dominant products; shall be requested, to be filed 7 days (2) A product not of general applica- prior to the conference. Upon conclu- bility within the meaning of 39 U.S.C. sion of the conference, the Commission 3632(b) for competitive products; or shall promptly issue a ruling to: (3) A non-postal product. (d) Provide all supporting justifica- (a) Provide for a period of discovery tion upon which the proponent of the to obtain further information; request proposes to rely; and (b) Schedule a hearing on the record (e) Include a copy of the applicable for further consideration of the re- sections of the Mail Classification quest; Schedule and the proposed changes (c) Explain the reasons for not going therein in legislative format. forward with additional proceedings and approve the request to modify the § 3020.52 Supporting justification. market dominant and competitive Supporting justification shall be in product lists; or the form of a statement from a knowl- (d) Direct other action as the Com- edgeable proponent of the request who mission may consider appropriate. attests to the accuracy of the information contained within the statement. The justification shall: (a) Demonstrate why the change is in accordance with the policies and the

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applicable criteria of chapter 36 of 39 (a) The general nature of the pro- U.S.C.; ceeding; (b) Explain why, as to market domi- (b) A reference to legal authority to nant products, the change is not incon- which the proceeding is to be consistent with each requirement of 39 ducted; U.S.C. 3622(d), and that it advances the (c) A concise description of the pro- objectives of 39 U.S.C. 3622(b), taking posals for changes in the Mail Classi- into account the factors of 39 U.S.C. fication Schedule; 3622(c); (d) The identification of an Office of (c) Explain why, as to competitive the Commission to represent the inter- products, the addition, deletion, or ests of the general public in the docket; transfer will not result in the violation (e) A specified period for public com- of any of the standards of 39 U.S.C. ment; and 3633. (f) Such other information as the (d) Verify that the change does not Commission deems appropriate. classify as competitive a product over § 3020.54 Postal Service notice and which the Postal Service exercises suf- reply. ficient market power that it can, without risk of losing a significant level of The Secretary of the Commission business to other firms offering similar shall forward to the Postal Service a products: copy of the request. Within 28 days of (1) Set the price of such product sub- the filing of the request, the Postal stantially above costs; Service shall provide its preliminary views in regard to the request. The (2) Raise prices significantly; Postal Service may include suggestions (3) Decrease quality; or for appropriate Commission action in (4) Decrease output. response to the request. (e) Explain whether or not each product that is the subject of the request is § 3020.55 Review. covered by the postal monopoly, as re- The Commission shall review the reserved to the Postal Service under 18 quest, the Postal Service reply, and U.S.C. 1696 subject to the exceptions any public comment to determine set forth in 39 U.S.C. 601; whether the proposed modification to (f) Provide a description of the avail- the market dominant and competitive ability and nature of enterprises in the product lists complies with applicable private sector engaged in the delivery statutory requirements and the Com- of the product; mission’s rules, and whether the pro- (g) Provide any information available posed modification is consistent with on the views of those who use the prod- the position of the Postal Service as uct on the appropriateness of the pro- expressed in its reply. The Commission posed modification; shall either: (h) Provide a description of the likely (a) Approve the request to modify the impact of the proposed modification on market dominant and competitive small business concerns; and product lists, but only to the extent (i) Include such information and the modification is consistent with the data, and such statements of reasons position of the Postal Service; and bases, as are necessary and appro- (b) Reject the request; priate to fully inform the Commission (c) Institute further proceedings to of the nature, scope, significance, and consider the request to modify the impact of the proposed modification. market dominant and competitive product lists; or § 3020.53 Docket and notice. (d) Direct other action as the Com- The Commission will establish a mission may consider appropriate. docket for each request to modify the market dominant list or the competi- § 3020.56 Further proceedings. tive product list, promptly publish no- If the Commission determines that tice of the request in the FEDERAL REG- further proceedings are necessary, a ISTER, and post the filing on its Web conference shall be scheduled to con- site. The notice shall include: sider the merits of going forward with

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the request. Upon conclusion of the Schedule and the proposed changes conference, the Commission shall therein in legislative format. promptly issue a ruling to: (a) Provide for a period of discovery § 3020.72 Supporting justification. to obtain further information; Supporting justification shall: (b) Schedule a hearing on the record (a) Provide an explanation for initi- for further consideration of the re- ating the docket; quest; (b) Explain why, as to market domi- (c) Explain the reasons for not going nant products, the change is not incon- forward with formal proceedings; or sistent with each requirement of 39 (d) Direct other action as the Com- U.S.C. 3622(d), and that it advances the mission may consider appropriate. objectives of 39 U.S.C. 3622(b), taking into account the factors of 39 U.S.C. Subpart D—Proposal of the Com- 3622(c); mission to Modify the Product (c) Explain why, as to competitive Lists products, the addition, subtraction, or transfer will not result in the violation § 3020.70 General. of any of the standards of 39 U.S.C. 3633; The Commission, of its own initia- (d) Verify that the change does not tive, may propose a modification to the classify as competitive a product over market dominant product list or the which the Postal Service exercises suf- competitive product list. For purposes ficient market power that it can, with- of this part, modification shall be de- out risk of losing a significant level of fined as adding a product to a list, re- business to other firms offering similar moving a product from a list, or trans- products: ferring a product from one list to the (1) Set the price of such product sub- other list. stantially above costs; [81 FR 38957, June 15, 2016] (2) Raise prices significantly; (3) Decrease quality; or § 3020.71 Contents of a proposal. (4) Decrease output. A proposal to modify the market (e) Explain whether or not each prod- dominant product list or the competi- uct that is the subject of the request is tive product list shall: covered by the postal monopoly as re- (a) Provide the name, and class if ap- served to the Postal Service under 18 plicable, of each product that is the U.S.C. 1696 subject to the exceptions subject of the proposal; set forth in 39 U.S.C. 601; (b) Indicate whether the proposal (f) Provide a description of the avail- would add a product to the market ability and nature of enterprises in the dominant list or the competitive list, private sector engaged in the delivery remove a product from the market of the product; dominant list or the competitive list, (g) Provide any information available or move a product from the market on the views of those who use the prod- dominant list to the competitive list or uct involved on the appropriateness of from the competitive list to the mar- the proposed modification; ket dominant list; (h) Provide a description of the likely (c) Indicate whether each product impact of the proposed modification on that is the subject of the proposal is: small business concerns; and (1) A special classification within the (i) Include such information and meaning of 39 U.S.C. 3622(c)(10) for mar- data, and such statements of reasons ket dominant products; and bases, as are necessary and appro- (2) A product not of general applica- priate to fully inform the Postal Serv- bility within the meaning of 39 U.S.C. ice and users of the mail of the nature, 3632(b) for competitive products; or scope, significance, and impact of the (3) A non-postal product. proposed modification. (d) Provide justification supporting the proposal; and § 3020.73 Docket and notice. (e) Include a copy of the applicable The Commission will establish a sections of the Mail Classification docket for each request to modify the

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market dominant list or the competi- (a) Provide for a period of discovery tive product list, promptly publish no- to obtain further information; tice of the request in the FEDERAL REG- (b) Schedule a hearing on the record ISTER, and post the filing on its Web for further consideration of the pro- site. The notice shall include: posal; (a) The general nature of the pro- (c) Explain the reasons for not going ceeding; forward with formal proceedings; or (b) A reference to legal authority to (d) Direct other action as the Com- which the proceeding is to be con- mission may consider appropriate. ducted; (c) A concise description of the pro- Subpart E—Requests Initiated by posals for changes in the Mail Classi- the Postal Service To Make fication Schedule; Material Changes or Minor (d) The identification of an officer of Corrections to the Mail Classi- the Commission to represent the interests of the general public in the docket; fication Schedule (e) A specified period for public comment; and SOURCE: 80 FR 35575, June 22, 2015, unless (f) Such other information as the otherwise noted. Commission deems appropriate. § 3020.80 Material changes to product descriptions. § 3020.74 Postal Service notice and reply. (a) Whenever the Postal Service proposes material changes to a product de- The Secretary of the Commission scription in the Mail Classification shall forward to the Postal Service a Schedule, no later than 30 days prior to copy of the notice of proposal. Within implementing the proposed changes, it 28 days of the filing of the proposal, the shall submit to the Commission a re- Postal Service shall provide its pre- quest to change the product descrip- liminary views in regard to the pro- tion in the Mail Classification Sched- posal. The Postal Service may include ule. suggestions for appropriate further procedural steps. (b) The request shall: (1) Include a copy of the applicable § 3020.75 Review. sections of the Mail Classification Schedule and the proposed changes The Commission shall review the therein in legislative format; and Postal Service reply and public com- (2) Provide all supporting justifica- ment. The Commission shall either: tion for the changes upon which the (a) Approve the proposal to modify Postal Service proposes to rely. the market dominant and competitive product lists, but only to the extent § 3020.81 Supporting justification for the modification is consistent with the material changes to product deposition of the Postal Service; scriptions. (b) Withdraw the proposal; (a) Supporting justification for (c) Institute further proceedings to changes to a product description in the consider the proposal, identifying rel- Mail Classification Schedule shall in- evant issues that may require further clude a description of, and rationale development; or for, the proposed changes to the prod- (d) Direct other action as the Com- uct description; and the additional ma- mission may consider appropriate. terial in paragraphs (b) and (c) of this section. § 3020.76 Further proceedings. (b)(1) As to market dominant prod- If the Commission determines that ucts, explain why the changes are not further proceedings are appropriate, a inconsistent with each requirement of conference shall be scheduled to con- 39 U.S.C. 3622(d) and part 3010 of this sider the merits of going forward with chapter; or the proposal. Upon conclusion of the (2) As to competitive products, ex- conference, the Commission shall plain why the changes will not result promptly issue a ruling to: in the violation of any of the standards

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of 39 U.S.C. 3633 and part 3015 of this tions in the Mail Classification Sched- chapter. ule by filing notice with the Commis- (c) Describe the likely impact that sion no later than 15 days prior to the the changes will have on users of the effective date of the proposed correc- product and on competitors. tions. (c) The notice shall: § 3020.82 Docket and notice of material (1) Explain why the proposed correc- changes to product descriptions. tions do not constitute material (a) The Commission shall take the changes to the product description for actions identified in paragraphs (b) purposes of § 3020.80; through (e) of this section. (2) Explain why the proposed correc- (b) Establish a docket for each re- tions are consistent with any applica- quest to change a product description ble provisions of title 39; and in the Mail Classification Schedule; (3) Include a copy of the applicable (c) Publish notice of the request on sections of the Mail Classification its Web site; Schedule and the proposed corrections (d) Designate an officer of the Com- therein in legislative format. mission to represent the interests of the general public in the docket; and § 3020.91 Docket and notice of minor (e) Provide interested persons with corrections to product descriptions. an opportunity to comment on whether (a) The Commission shall take the the proposed changes are consistent actions identified in paragraphs (b) with title 39 and applicable Commis- through (e) of this section. sion regulations. (b) Establish a docket for each proposal to correct a product description § 3020.83 Commission review of material changes to product descrip- in the Mail Classification Schedule; tions. (c) Publish notice of the proposal on its Web site; (a) The Commission shall review the (d) Designate an officer of the Com- request and any comments filed. The mission to represent the interests of Commission shall take one of the ac- the general public in the docket; and tions identified in paragraphs (b) (e) Provide interested persons with through (g) of this section. (b) Approve the proposed changes, an opportunity to comment on whether subject to editorial corrections, and the proposed corrections are consistent change the Mail Classification Sched- with title 39 and applicable Commis- ule to coincide with the effective date sion regulations. of the proposed change; § 3020.92 Commission review of minor (c) Reject the proposed changes; corrections to product descriptions. (d) Provide the Postal Service with an opportunity to amend the proposed (a) The Commission shall review the changes; notice and any comments filed. The (e) Direct the Postal Service to make Commission shall take one of the ac- an appropriate filing under a different tions identified in paragraphs (b) section; through (g) of this section. (f) Institute further proceedings; or (b) Approve the proposed corrections, (g) Direct other action that the Com- subject to editorial corrections, and mission considers appropriate. change the Mail Classification Sched- ule to coincide with the effective date §§ 3020.84–3020.89 [Reserved] of the proposed change; (c) Reject the proposed corrections; § 3020.90 Minor corrections to product (d) Provide the Postal Service with descriptions. an opportunity to amend the proposed (a) The Postal Service shall ensure corrections; that product descriptions in the Mail (e) Direct the Postal Service to make Classification Schedule accurately rep- an appropriate filing under a different resent the current offerings of the section; Postal Service. (f) Institute further proceedings; or (b) The Postal Service shall submit (g) Direct other action that the Com- minor corrections to product descrip- mission considers appropriate.

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Subpart F—Size and Weight PART 3025—RULES FOR APPEALS Limitations for Mail Matter OF POSTAL SERVICE DETERMINA- TIONS TO CLOSE OR CONSOLI- § 3020.110 General. DATE POST OFFICES Applicable size and weight limitations for mail matter shall appear in Sec. the Mail Classification Schedule as 3025.1 Definitions. 3025.2 Applicability. part of the description of each product. 3025.3 Notice by the Postal Service. 3025.10 Starting an appeal. § 3020.111 Limitations applicable to 3025.11 Submitting an appeal and other doc- market dominant mail matter. uments. (a) The Postal Service shall inform 3025.12 Duplicate appeals. 3025.13 Deadlines for appeals. the Commission of updates to size and 3025.14 Participation by others. weight limitations for market domi- 3025.20 The record on review. nant mail matter by filing notice with 3025.21 Filing of the administrative record. the Commission 45 days prior to the ef- 3025.22 Making documents available for in- fective date of the proposed update. spection by the public. The notice shall include a copy of the 3025.30 Suspension pending review. 3025.40 Participant statement. applicable sections of the Mail Classi- 3025.41 Due date for participant statement. fication Schedule and the proposed up- 3025.42 Due date for Postal Service re- dates therein in legislative format. sponse. (b) The Commission shall provide no- 3025.43 Due date for replies to the Postal tice of the proposed update in the FED- Service. ERAL REGISTER and seek public com- AUTHORITY: 39 U.S.C. 404(d). ment on whether the proposed update SOURCE: 77 FR 6679, Feb. 9, 2012, unless oth- is in accordance with the policies and erwise noted. the applicable criteria of chapter 36 of title 39 of the United States Code. § 3025.1 Definitions. (c) If the Commission finds the pro- The following definitions apply in posed update in accordance with the this part: policies and the applicable criteria of (a) Final determination means the chapter 36 of 39 U.S.C., the Commission written determination and findings re- shall review the proposed Mail Classi- quired by 39 U.S.C. 404(d)(3). fication Schedule language for for- (b) Petitioner means a person who matting and conformance with the files a Petition for Review. structure of the Mail Classification (c) Petition for Review means a writ- Schedule, and subject to editorial ten document that the Commission ac- changes, shall change the Mail Classi- cepts as an appeal of a post office clos- fication Schedule to coincide with the ing or consolidation. effective date of the proposed update. § 3025.2 Applicability. (d) If the Commission finds the pro- (a) The rules in this part apply when: posed update not in accordance with (1) The Postal Service decides to the policies and the applicable criteria close or consolidate a post office, and of chapter 36 of title 39 of the United (2) A patron of that post office ap- States Code, the Commission may di- peals the closing or consolidation. rect other action as deemed appro- (b) The following sections in part priate. 3001, subpart A of this chapter, apply to appeals of post office closings or con- § 3020.112 Limitations applicable to solidations: §§ 3001.1 through 3001.9 of competitive mail matter. this chapter; § 3001.11(a) of this chapter, The Postal Service shall notify the § 3001.11(c) through (f) of this chapter; Commission of updates to size and §§ 3001.12 through 3001.17 of this chap- weight limitations for competitive ter; and §§ 3001.21 and 3001.22 of this mail matter pursuant to subpart E of chapter. this part. (c) Answers to motions filed by the Postal Service are due within 10 days.

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§ 3025.3 Notice by the Postal Service. tion, the petitions will be considered in (a) Pursuant to section 404(d) of title a single docket. 39, United States Code, any decision to § 3025.13 Deadlines for appeals. close or consolidate a post office must be preceded by 60 days’ notice to per- (a) In general. If the Postal Service sons served by such post office, the op- has issued a final determination to portunity for such persons to present close or consolidate a post office, an their views, and a written determina- appeal is due within 30 days of the final tion based upon consideration of each determination being made available in of the factors listed in section 404(d)(2) conformance with § 3025.3(b). of title 39, United States Code. (b) Appeals sent by mail. If sent by (b) This notice must include a provi- mail, a Petition for Review must be sion stating that, pursuant to section postmarked no later than 30 days after 404(d)(5) of title 39, United States Code, the final determination has been made a final Postal Service determination to available. close or consolidate a post office may (c) Appeals sent by other physical deliv- be appealed by any person served by ery. If sent by some other form of phys- such office to the Postal Regulatory ical delivery, a Petition for Review Commission at 901 New York Avenue NW., Suite 200, Washington, DC 20268– must be received in the Commission’s 0001, within 30 days after such deter- Docket Section no later than 4:30 p.m., mination is made available to such per- eastern time, on the 30th day after the son by the Postal Service. final determination has been made available. § 3025.10 Starting an appeal. (d) Appeals sent electronically. If sub- (a) A Postal Service decision to close mitted electronically, a Petition for or consolidate a post office may be ap- Review must be received in the Com- pealed only by a person served by that mission’s Docket Section no later than office. An appeal is commenced by sub- 4:30 p.m., eastern time, on the 30th day mitting a Petition for Review to the after the final determination has been Postal Regulatory Commission. made available. (b) The Petition for Review must state that the person(s) submitting it § 3025.14 Participation by others. is/are served by the post office that the (a) A person served by the post office Postal Service has decided to close or to be closed or consolidated pursuant consolidate. The petition should in- to the Postal Service written deter- clude the name(s) and address(es) of mination under review who desires to the person(s) filing it and the name or intervene in the proceeding, or any location of the post office to be closed other interested person, or any coun- or consolidated. A petitioner may in- sel, agent, or other person authorized clude other information deemed perti- or recognized by the Postal Service as nent. such interested person’s representative § 3025.11 Submitting an appeal and or the representative of such interested other documents. person’s recognized group, such as Petitions for Review, comments, mo- Postmasters, may participate in an ap- tions, answers, and other documents peal by sending written comments to may be submitted by persons other the Postal Regulatory Commission in than the Postal Service by mail, elec- the manner described in § 3025.11. tronically through the Commission’s (b) Persons may submit comments Web site, http://www.prc.gov, or by de- supporting or opposing a Commission livery to the Commission’s offices at order returning the entire matter to 901 New York Avenue NW., Suite 200, the Postal Service for further consider- Washington, DC 20268–0001. ation. Comments must be filed in accordance with the deadlines estab- § 3025.12 Duplicate appeals. lished in §§ 3025.41 through 3025.43. Com- If the Commission receives more menters may use PRC Form 61, which than one Petition for Review of the is available on the Commission’s Web same post office closing or consolida- site, http://www.prc.gov.

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§ 3025.20 The record on review. tion shall be filed with the Secretary of the Commission. (a) The record on review includes: (b) Answer and filing of the relevant (1) The final determination; record by the Postal Service. Within 10 (2) The notices to persons served by days after the application for suspen- the post office to be closed or consoli- sion is filed, the Postal Service shall dated; file with the Secretary of the Commis- (3) The administrative record; and sion and serve on the petitioners an an- (4) All documents submitted in the swer to the application supported by appeal proceeding. affidavits or other sworn statements or (b) The record shall contain all evi- copies thereof. dence considered by the Postal Service in making its determination and shall § 3025.40 Participant statement. contain no evidence not previously (a) When a timely Petition for Re- considered by the Postal Service. view of a decision to close or consolidate a post office is filed, the Secretary § 3025.21 Filing of the administrative record. shall furnish petitioner with a copy of PRC Form 61. This form is designed to The Postal Service shall file the ad- inform petitioners on how to make a ministrative record within 10 days of statement of his/her arguments in sup- the date of posting of a Petition for Re- port of the petition. view on the Commission’s Web site. (b) The instructions for PRC Form 61 The Commission may alter this time shall provide: for good cause. The Secretary will no- (1) A concise explanation of the pur- tify participants that they may view pose of the form; the administrative record at post of- (2) A copy of section 404(d)(2)(A) of fices where the final determination was title 39, United States Code; and posted. (3) Notification that, if petitioner prefers, he or she may file a brief in § 3025.22 Making documents available lieu of or in addition to completing for inspection by the public. PRC Form 61. Copies of all filings (including the administrative record) related to an ap- § 3025.41 Due date for participant peal shall be available for public in- statement. spection at the post offices where the The statement or brief of petitioner final determination was posted. The and of any other participant seeking to Secretary will notify participants that have the Commission return the entire they may view copies of filings at post matter to the Postal Service for fur- offices where the final determination ther consideration, shall be filed not was posted. more than 20 days after the filing of the administrative record. § 3025.30 Suspension pending review. (a) Application. Application for sus- § 3025.42 Due date for Postal Service pension of a determination of the Post- response. al Service to close or consolidate any The statement or brief of the Postal post office pending the outcome of an Service, and of any other participant appeal to the Postal Regulatory Com- opposing return of the matter for fur- mission shall be made at the time of ther consideration, shall be filed not the filing of a Petition for Review. The more than 14 days after the date for fil- application shall show the reasons for ing of petitioner’s statement. the relief requested and the facts relied upon, and if the facts are subject to § 3025.43 Due date for replies to the dispute the application shall be sup- Postal Service. ported by affidavits or other sworn Petitioner, and any other participant statements or copies thereof. The ap- seeking to have the Commission return plicant must be a person served by the the matter for further consideration, affected post office. Immediate notice may file a reply to the Postal Service of the application shall be given to all response not more than 10 days after parties to the proceeding. The applica- the date of the Postal Service response.

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Replies are limited to issues discussed the Commission makes a finding under in the responses of the Postal Service § 3030.30(a)(1) that the complaint raises and other participants seeking affirma- material issues of fact or law. tion of the Postal Service determination. § 3030.2 Scope and nature of complaints. PART 3030—RULES FOR Any interested person (including a COMPLAINTS duly appointed officer of the Commis- sion representing the interests of the general public) may file a written com- Subpart A—General plaint with the Commission if that per- Sec. son believes that the Postal Service is 3030.1 Applicability. not operating in conformance with: 3030.2 Scope and nature of complaints. (a) The provisions of 39 U.S.C. chapter 36, or 39 U.S.C. 101(d), 401(2), 403(c), Subpart B—Form and Manner 404a, or 601; or Requirements of Initial Pleadings (b) Any rule, order, or other regu- 3030.10 Complaint contents. latory requirement based on any of 3030.11 Service. these statutory provisions. 3030.12 Pleadings filed in response to a complaint. 3030.13 Conditions for applying rate or serv- Subpart B—Form and Manner ice inquiry procedures to complaints. Requirements of Initial Pleadings 3030.14 Answer contents. § 3030.10 Complaint contents. Subpart C—Supplemental Information (a) A complaint must: 3030.20 Sufficiency of information. (1) Set forth the facts and cir- 3030.21 Investigator. cumstances that give rise to the complaint; Subpart D—Proceedings (2) Clearly identify and explain how the Postal Service action or inaction 3030.30 Beginning proceedings on com- violates applicable statutory standards plaints. or regulatory requirements including Subpart E—Settlement citations to the relied upon section or sections of title 39, order, regulation, 3030.40 Policy on settlement. or other regulatory requirements; 3030.41 Satisfaction. (3) Set forth the business, commercial, economic or other issues pre- Subpart F—Commission Determinations sented by the action or inaction as and Relief such relate to the complainant; 3030.50 Remedies. (4) Include a description of persons or classes of persons known or believed to AUTHORITY: 39 U.S.C. 503; 3662. be similarly affected by the issues in- SOURCE: 74 FR 16744, Apr. 10, 2009, unless volved in the complaint, if applicable; otherwise noted. (5) State the nature of the evidentiary support that the complainant Subpart A—General has or expects to obtain during discovery to support the facts alleged in § 3030.1 Applicability. the complaint; (a) The rules in this part govern the (6) Include an explanation as to why procedure for complaints filed under 39 such facts could not reasonably be U.S.C. 3662 that meet the form and ascertained by the complainant where manner requirements of subpart B of claims are premised on information this part. Part 3001, subpart A of this and belief; chapter, applies unless otherwise stat- (7) State whether the issues pre- ed in this part or otherwise ordered by sented are pending in or have been re- the Commission. solved by an existing Commission pro- (b) Sections 3001.25 through 27 of this ceeding or a proceeding in any other chapter and § 3001.33 of this chapter do forum in which the complainant is a not apply to this part unless and until party; and if so, provide an explanation

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why timely resolution cannot be (c) If the Postal Service answer is de- achieved in that forum; layed by the filing of a motion under (8) State the specific relief or remedy paragraph (b) of this section, it may requested and the basis for that relief; not obtain a further delay by filing an- and other motion under paragraph (b) of (9) Include a certification that states this section raising an issue or objec- that prior to filing, the complainant tion that was available to the Postal attempted to meet or confer with the Service but omitted from its earlier Postal Service’s general counsel to re- motion. solve or settle the complaint, why the complainant believes additional such § 3030.13 Conditions for applying rate steps would be inadequate, and the rea- or service inquiry procedures to sons for that belief; and complaints. (10) Include a certification that the (a) This section applies to complaints complaint has been served on the that concern rate or service matters United States Postal Service as re- that are isolated incidents affecting quired by § 3030.11. few mail users provided that the com- (b) The Commission may waive any plaint does not either: of the requirements listed in paragraph (1) Raise unfair competition issues; (a) of this section to serve the interests (2) Raise issues affecting a signifi- of justice. cant number of mail users; § 3030.11 Service. (3) Represent a pattern, practice, or systemic issue that affects a signifi- Any person filing a complaint must cant number of mail users (or is rea- simultaneously serve a copy of the sonably likely to be evidence that such complaint on the Postal Service at the following address: a pattern has begun); or [email protected]. A com- (4) Impact a substantial region of the plaint is not deemed filed until it is nation. served on the Postal Service. A waiver (b) The Commission may in its dis- may be obtained pursuant to § 3001.9(a) cretion, sua sponte, attempt to resolve of this chapter. a complaint through the rate or service inquiry procedures of § 3031.11 of this [74 FR 54755, Oct. 23, 2009] chapter if the Commission finds that § 3030.12 Pleadings filed in response to there is a reasonable likelihood that a complaint. such procedures may result in resolution of the complaint. The Commission (a) Unless otherwise ordered by the will issue an order to apply the proce- Commission, the Postal Service shall dures of § 3031.11 of this chapter prior to file its answer to a complaint within 20 the due date for the Postal Service an- days after the complaint is filed. swer set forth in § 3030.12. (b) If appropriate, the Postal Service (c) If the Commission determines may file a dispositive motion or other- that application of paragraph (a) of wise move to delay disposition of the this section is appropriate and the complaint. If the Postal Service files Postal Service is unable to resolve the such a motion, unless otherwise or- complaint within 45 days, or such other dered by the Commission, the period of period of time as ordered by the Com- time for filing its answer is altered as mission, the Postal Service shall file follows: (1) If the Commission denies the mo- its answer in accordance with tion or postpones disposition, the an- § 3030.12(b)(2). swer is due within 10 days of the Com- § 3030.14 Answer contents. mission’s action; or (2) If the Commission invokes the (a) An answer must: rate or service inquiry special proce- (1) Contain a clear and concise state- dures under § 3030.13 to the complaint, ment of any disputed factual allega- the answer is due contemporaneously tions upon which the answer relies; with the Postal Service’s report under (2) Contain a clear and concise state- § 3031.11 of this chapter if the complaint ment of any legal interpretation upon has not been resolved by that date. which the answer relies;

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(3) Admit or deny, specifically and the complaint and responses thereto. with explanatory detail, each material The investigator will use appropriate factual allegation of the complaint. due diligence under the circumstances Denials based on information and be- and provide a public, written report to lief must include an explanation as to the Commission. why such facts could not reasonably be ascertained by the Postal Service prior Subpart D—Proceedings to filing the answer. Each fact alleged in a complaint not thus specifically an- § 3030.30 Beginning proceedings on swered shall be deemed to have been complaints. admitted; (a) Within 90 days after receiving a (4) Set forth every defense relied properly filed complaint under this upon. The answer shall advise the com- part, the Commission will issue: plainant and the Commission fully and (1) A notice and order in accordance completely of the nature of any de- with § 3001.17 of this chapter that finds fense, including factual allegations and the complaint raises one or more mate- law upon which the Postal Service re- rial issues of fact or law and begin pro- lies. Affirmative defenses shall be spe- ceedings on the complaint; or cifically captioned as such and pre- (2) An order dismissing the com- sented separately from any denials; plaint. (5) State the nature of the evi- (b) Orders issued pursuant to para- dentiary support that the Postal Serv- graph (a) of this section shall include ice has or expects to obtain to support the Commission’s written statement its factual allegations and defenses; setting forth the bases of its deter- and mination. (6) Include a certification that states (c) Contemporaneously with, or that prior to the filing of its answer, shortly after issuing a notice and order the Postal Service met or conferred under paragraph (a)(1) of this section, with the complainant to resolve or set- the Commission will appoint a public tle the complaint, whether the Postal representative to represent the inter- Service believes additional such steps ests of the general public in the com- would be inappropriate and the reasons plaint proceeding. for that belief. (b) The Commission may waive any Subpart E—Settlement of the requirements listed in paragraph (a) of this section to serve the interests § 3030.40 Policy on settlement. of justice. It shall be the general policy and practice of the Commission to encour- Subpart C—Supplemental age alternative dispute resolution and Information settlement of complaints by informal procedures, such as correspondence, § 3030.20 Sufficiency of information. conferences between the parties, and If, after review of the information the conduct of proceedings off the submitted pursuant to this part, the record with the consent of the parties. Commission determines that additional information is necessary to en- § 3030.41 Satisfaction. able it to evaluate whether the com- (a) If a complaint is resolved infor- plaint raises material issues of fact or mally, in whole or in part, subsequent law, the Commission shall, in its dis- to Commission action under cretion, either require the complainant § 3030.30(a)(1), the complainant must and/or the Postal Service to provide ad- promptly file: ditional information as deemed nec- (1) A statement explaining the reso- essary, issue an appropriate order to lution; and appoint an investigator in accordance (2) A motion to dismiss or amend the with § 3030.21, or do both. complaint based on the resolution. (b) The Commission may order the § 3030.21 Investigator. submission of additional information The Commission may appoint an in- before acting on any motion filed under vestigator to examine issues raised by paragraph (a)(2) of this section.

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(c) In determining whether to allow Subpart A—Rate or Service Inquiry the complaint to be dismissed or Forms and Procedures amended under this section, the Com- mission will take into consideration § 3031.10 Rate or service inquiry con- whether the issues raised by the com- tents. plaint may continue to impact a sig- (a) A rate or service inquiry shall be nificant segment of the mailing com- in writing and should contain: munity. (1) The name, address, and telephone number of the inquiring party; Subpart F—Commission (2) Details regarding the Postal Serv- Determinations and Relief ice’s action or inaction; (3) A statement of facts supporting § 3030.50 Remedies. the inquiring party’s allegations; and (a) If the Commission finds that a (4) The specific relief being sought, if complaint is justified, it will order that any. the Postal Service take such action as (b) The Commission may waive any the Commission determines appro- of the requirements listed in paragraph priate to: (a) of this section to serve the interests (1) Achieve compliance with the ap- of justice. plicable requirements; and (2) Remedy the effects of any non- § 3031.11 Rate or service inquiry pro- compliance. cedures. (b) If the Commission finds deliberate (a) The Commission will forward rate non-compliance on the part of the or service inquiries to the Postal Serv- Postal Service, the Commission may ice for investigation. The Postal Serv- order, based on the nature, cir- ice will, within 45 days of receipt of cumstances, extent, and seriousness of such inquiry, advise the Commission in the non-compliance, a fine for each in- writing, with a copy to the inquiring cidence of non-compliance. party, of its resolution of the inquiry (c) In any case where the Commission or its refusal or inability to do so. is considering the extraordinary relief (b) The Commission will monitor all described in paragraph (b) of this sec- rate or service inquiries to determine if tion, the Commission will provide no- Commission action under § 3031.12 is ap- tice to the participants that such relief propriate. is being considered. It will allow the (c) Where there are clear indications participants a reasonable opportunity from the Postal Service’s report or to comment and present aggravating from other communications between and mitigating factors for its consider- the parties that the inquiry has been ation. resolved, the Commission may, in its discretion, consider such proceeding to PART 3031—RULES FOR RATE OR be resolved, without response to the inquiring party. SERVICE INQUIRIES § 3031.12 Treatment as a complaint. Subpart A—Rate or Service Inquiry Forms If the Commission receives a volume and Procedures of rate or service inquiries on the same Sec. or similar issue such that there may be 3031.10 Rate or service inquiry contents. cause to warrant treatment as a com- 3031.11 Rate or service inquiry procedures. plaint, it may appoint an investigator 3031.12 Treatment as a complaint. to review the matter under § 3030.21 of this chapter or appoint a public rep- Subpart B [Reserved] resentative representing the interests of the general public to pursue the AUTHORITY: 39 U.S.C. 503, 3662. matter. SOURCE: 74 FR 16746, Apr. 10, 2009, unless otherwise noted. Subpart B [Reserved] 481

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PART 3032—SPECIAL RULES FOR ercise its regulatory authority or oth- COMPLAINTS ALLEGING VIOLA- erwise act as a governmental entity. TIONS OF 39 U.S.C. 404a § 3032.6 Disclosure, transfer, and licensing of intellectual property. Subpart A—General (a) A complaint alleging a violation Sec. of 39 U.S.C. 404a(a)(2) must show that 3032.1 Applicability. the Postal Service has compelled or at- 3032.2–3032.4 [Reserved] tempted to compel the disclosure, Subpart B—Requirements and Defenses transfer, or licensing of the intellectual property of the person filing the 3032.5 Postal Service rules that create an complaint to a third party. unfair competitive advantage. (b) As used in this section, the term 3032.6 Disclosure, transfer, and licensing of intellectual property includes, among intellectual property. other things, patents, copyrights, 3032.7 Unlawfully obtaining information. 3032.8 Statutorily authorized affirmative trademarks, trade secrets, and propri- defense. etary information. (c) As used in this section, the term AUTHORITY: 39 U.S.C. 404a; 3662. disclosure, transfer, or licensing of intel- SOURCE: 79 FR 62294, Oct. 16, 2014, unless lectual property includes, among other otherwise noted. things, an action that has an adverse effect on the value of intellectual prop- Subpart A—General erty.

§ 3032.1 Applicability. § 3032.7 Unlawfully obtaining informa- The rules in this part govern pro- tion. ceedings filed under 39 U.S.C. 3662 al- (a) A complaint alleging a violation leging violations of 39 U.S.C. 404a that of 39 U.S.C. 404a(a)(3) must show that: meet the requirements of §§ 3030.2 and (1) The person filing the complaint 3030.10 of this chapter. has provided or sought to provide a product; §§ 3032.2–3032.4 [Reserved] (2) The Postal Service obtained information about such product from the Subpart B—Requirements and person filing the complaint; and Defenses (3) The Postal Service offers or offered a postal service that uses or is § 3032.5 Postal Service rules that create an unfair competitive advan- based, in whole or in part, on the infor- tage. mation obtained from the person filing the complaint. (a) A complaint alleging a violation of 30 U.S.C. 404(a)(a)(1) must show that (b) As an affirmative defense to a a Postal Service rule, regulation, or complaint under 39 U.S.C. 404a(a)(3), standard has the effect of: the Postal Service may demonstrate (1) Precluding competition; or that substantially the same informa- (2) Establishing the terms of com- tion was obtained (or was obtainable) petition. from an independent source or is other- (b) As an affirmative defense to a wise obtained (or obtainable) through complaint under 39 U.S.C. 404a(a)(1), lawful means. the Postal Service may demonstrate (c) As an affirmative defense to a that the rule, regulation, or standard complaint under 39 U.S.C. 404a(a)(3), at issue does not create an unfair com- the Postal Service may show that the petitive advantage for itself or any en- information obtained was provided by tity funded, in whole or in part, by the written consent. Postal Service. (c) As used in this section, the term § 3032.8 Statutorily authorized affirm- rule, regulation, or standard includes, ative defense. among other things, documents or poli- (a) As an affirmative defense to an al- cies issued by the Postal Service to ex- legation of a violation of 39 U.S.C.

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404a(a), the Postal Service may dem- (1) The basis for the Postal Service’s onstrate that it is specifically author- determination that the market test is ized by law to take the action or inac- governed by 39 U.S.C. 3641, which shall: tion alleged to be a violation of that (i) Describe, from the viewpoint of section. mail users, how the experimental prod- (b) Authority under 39 U.S.C. 401 or 39 uct is significantly different from all U.S.C. 404 may not form the basis of an products offered by the Postal Service affirmative defense under paragraph (a) within the 2 fiscal years preceding the of this section. start of the market test; (c) Paragraph (b) of this section does (ii) Establish that the introduction not preclude the Postal Service from or continued offering of the experi- arguing that a particular Postal Serv- mental product will not create an un- ice regulation or other action (or inac- fair or otherwise inappropriate com- tion) does not have the requisite effect petitive advantage for the Postal Serv- to violate 39 U.S.C. 404a(a). ice or any mailer, particularly in regard to small business concerns, as de- PART 3035—RULES FOR MARKET fined in § 3001.5(v) of this chapter; and (iii) Identify the experimental prod- TESTS OF EXPERIMENTAL PRODUCTS uct as either market dominant or competitive for purposes of the market Sec. test, and explain the reasoning for the 3035.1 Applicability. categorization in accordance with the 3035.2 Advance notice. criteria set forth in 39 U.S.C. 3642(b)(1). 3035.3 Contents of notice. (2) A description of the nature and 3035.4 Review. the scope of the market test that: 3035.5 Commission action. 3035.6 Changes in market test. (i) Describes the market test and ex- 3035.7–3035.9 [Reserved] perimental product; 3035.10 Duration. (ii) Demonstrates why the market 3035.11 Extension of market test. test is not inconsistent with the re- 3035.12 Cancellation of market test. quirements of 39 U.S.C. 3641; 3035.13–3035.14 [Reserved] (iii) Identifies the beginning and end- 3035.15 Dollar amount limitation. ing dates of the market test; 3035.16 Exemption from dollar amount limi- (iv) Describes the geographic mar- tation. ket(s) where the market test may be 3035.17 Prevention of market disruption. conducted; 3035.18 Filing for permanent product status. (v) Estimates the total revenue that 3035.19 [Reserved] is anticipated by the Postal Service for 3035.20 Data collection and reporting re- each fiscal year of the market test, in- quirements. cluding available supporting docu- AUTHORITY: 39 U.S.C. 3641. mentation; and (vi) Includes a data collection plan SOURCE: 79 FR 54563, Sept. 11, 2014, unless for the market test, including a de- otherwise noted. scription of the specific data items to § 3035.1 Applicability. be collected. The minimum data collection plan requirements are described in The rules in this part apply to mar- § 3035.20. ket tests of experimental products undertaken pursuant to 39 U.S.C. 3641. § 3035.4 Review. § 3035.2 Advance notice. (a) The Commission will establish a docket for each market test initiated The Postal Service shall file notice under this part, promptly publish a no- with the Commission of its determina- tice in the FEDERAL REGISTER, and post tion to initiate a market test at least the filing on its Web site. The notice 30 days before initiating the market shall: test. (1) Describe the general nature of the proceeding; § 3035.3 Contents of notice. (2) Refer to the legal authority under (a) Notices of proposed market tests which the proceeding is to be con- shall include: ducted;

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(3) Identify an officer of the Commis- months, if such an extension is nec- sion to represent the interests of the essary to determine the feasibility or general public in the docket; desirability of a product being tested. (4) Specify a period for public com- The Postal Service must file a written ment; and request for extension with the Commis- (5) Include such other information as sion at least 60 days before the market the Commission deems appropriate. test is scheduled to terminate. (b) [Reserved] (b) The request for extension shall: (1) Explain why an extension is nec- § 3035.5 Commission action. essary to determine the feasibility or (a) The Commission shall review the desirability of the experimental prod- Postal Service notice together with uct; any comments for initial compliance (2) List the new end date for the mar- with the statutory requirements of 39 ket test; U.S.C. 3641, and: (3) Calculate the total revenue re- (1) Find that the market test is con- ceived by the Postal Service from the sistent with the requirements of 39 market test for each fiscal year the U.S.C. 3641; market test has been in operation and (2) Find that the market test is in- provide supporting documentation for consistent with the requirements of 39 the calculations; U.S.C. 3641 and provide an opportunity (4) Estimate the additional revenue to correct the identified deficiencies; that is anticipated by the Postal Serv- (3) Find that the market test is in- ice for each fiscal year remaining on consistent with the requirements of 39 the market test, including the re- U.S.C. 3641 and order that the market quested extension period, and provide test not go into effect; or available supporting documentation; (4) Direct other action as the Com- and mission may consider appropriate. (5) Provide any additional informa- (b) [Reserved] tion necessary for the Commission to § 3035.6 Changes in market test. evaluate the continued consistency with the requirements of 39 U.S.C. 3641. (a) The Postal Service shall file a no- (c) The Commission shall review the tice with the Commission describing Postal Service request for extension to each material change made to the mar- ensure that an extension is necessary ket test or services offered under the in order to determine the feasibility or market test at least 10 days before im- desirability of the experimental prod- plementing such changes. Material uct and: changes are changes that may affect (1) Find that the extension is con- compliance with 39 U.S.C. 3641 and in- sistent with the requirements of 39 clude, without limitation, adjustments U.S.C. 3641; to prices, geographic scope, eligibility (2) Find that the extension is incon- for service, and termination date. sistent with the requirements of 39 (b) The Commission may, in its dis- U.S.C. 3641 and provide an opportunity cretion, notice the filing and provide to correct the identified deficiencies; an opportunity for comment. (3) Find that the extension is incon- §§ 3035.7–3035.9 [Reserved] sistent with the requirements of 39 U.S.C. 3641 and deny the extension; or § 3035.10 Duration. (4) Direct other action as the Com- A market test may not exceed 24 mission considers appropriate. months in duration unless the Commis- sion authorizes an extension pursuant § 3035.12 Cancellation of market test. to a request filed by the Postal Service (a) The Postal Service may cancel a under § 3035.11. market test at any time. It shall file notice of cancellation with the Com- § 3035.11 Extension of market test. mission within 10 days of cancelling (a) The Postal Service may request the market test. an extension of the duration of a mar- (b) Pursuant to 39 U.S.C. 3641(f), the ket test, not to exceed an additional 12 Commission may direct the Postal

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Service to demonstrate that the mar- second simple average CPI–U index is ket test continues to meet the require- similarly calculated for each subse- ments of 39 U.S.C. 3641 and the Com- quent fiscal year by summing the 12 mission’s rules. The Commission, in its monthly CPI–U values for the previous discretion, may provide an opportunity fiscal year and dividing the sum by 12 for comments. (Recent Average). Finally, the annual (c) Based upon its review, the Com- limitation for the current fiscal year is mission may: calculated by multiplying $10,000,000 by (1) Find that the market test is con- the Recent Average divided by 214.5. sistent with the requirements of 39 The result is expressed as a number, U.S.C. 3641; rounded to the nearest dollar. (2) Find that the market test is in- (e) The formula for calculating the consistent with the requirements of 39 $10 Million Adjusted Limitation is as U.S.C. 3641 and provide an opportunity follows: $10 Million Adjusted Limita- to correct the identified deficiencies; tion = $10,000,000 * (Recent Average/ (3) Find that the market test is in- 214.5). consistent with the requirements of 39 U.S.C. 3641 and cancel the market test; § 3035.16 Exemption from dollar or amount limitation. (4) Direct other action as the Com- (a) The Postal Service may request mission may consider appropriate. an exemption from the $10 Million Ad- justed Limitation by filing a written §§ 3035.13–3035.14 [Reserved] request with the Commission. In no instance shall the request for exemption § 3035.15 Dollar amount limitation. exceed the market test dollar amount (a) The Consumer Price Index used limitation of $50,000,000 in any fiscal for calculations under this part is the year, as adjusted for the change in the CPI–U index, as specified in §§ 3010.21(a) CPI–U index, as specified in paragraph and 3010.22(a) of this chapter. (c) of this section ($50 Million Adjusted (b) An experimental product may Limitation). only be tested if total revenues that (b) For each fiscal year, the $50 Mil- are anticipated or received by the Post- lion Adjusted Limitation shall reflect al Service do not exceed $10,000,000 in the average CPI result during the pre- any fiscal year, as adjusted for the vious fiscal year calculated as de- change in the CPI–U index, as specified scribed in paragraph (c) of this section. in paragraph (d) of this section ($10 The Commission shall publish this fig- Million Adjusted Limitation). Total ure annually, after the close of the fis- revenues anticipated or received may cal year, on its Web site at http:// exceed the $10 Million Adjusted Limi- www.prc.gov. tation in any fiscal year if an exemp- (c) The calculation of the $50 Million tion is granted pursuant to § 3035.16. Adjusted Limitation involves the fol- (c) For each fiscal year, the $10 Mil- lowing steps. First, a simple average lion Adjusted Limitation shall reflect CPI–U index was calculated for fiscal the average CPI result during the pre- year 2008 by summing the monthly vious fiscal year calculated as de- CPI–U values from October 2007 scribed in paragraph (d) of this section. through September 2008 and dividing The Commission shall publish this fig- the sum by 12 (Base Average). The re- ure annually, after the close of the fis- sulting Base Average is 214.5. Then, a cal year, on its Web site at http:// second simple average CPI–U index is www.prc.gov. similarly calculated for each subse- (d) The calculation of the $10 Million quent fiscal year by summing the 12 Adjusted Limitation involves the fol- monthly CPI–U values for the previous lowing steps. First, a simple average fiscal year and dividing the sum by 12 CPI–U index was calculated for fiscal (Recent Average). Finally, the annual year 2008 by summing the monthly limitation for the current fiscal year is CPI–U values from October 2007 calculated by multiplying $50,000,000 by through September 2008 and dividing the Recent Average divided by 214.5. the sum by 12 (Base Average). The re- The result is expressed as a number, sulting Base Average is 214.5. Then, a rounded to the nearest dollar.

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(d) The formula for calculating the nues the Postal Service may obtain $50 Million Adjusted Limitation is as from any particular geographic market follows: $50 Million Adjusted Limita- as necessary to prevent the creation of tion = $50,000,000 * (Recent Average/ an unfair or otherwise inappropriate 214.5). competitive advantage for the Postal (e) The Postal Service shall file its Service or any mailer, particularly in request for exemption at least 45 days regard to small business concerns, as before it expects to exceed the $10 Mil- defined in § 3001.5(v) of this chapter. lion Adjusted Limitation. (f) The request for exemption shall: § 3035.18 Filing for permanent product (1) Explain how the experimental status. product will: (a) If the Postal Service determines (i) Benefit the public and meet an ex- to make an experimental product per- pected demand; manent, it shall file a request, pursu- (ii) Contribute to the financial sta- ant to 39 U.S.C. 3642 and part 3020, sub- bility of the Postal Service; and part B of this chapter, to add a new (iii) Not result in unfair or otherwise product or price category to the mar- inappropriate competition; ket dominant or competitive product (2) Calculate the total revenue re- list. Requests to make existing experi- ceived by the Postal Service from the mental products permanent must be market test for each fiscal year the filed at least 60 days before the market market test has been in operation, and test expires (including any extension provide supporting documentation; period granted) or the market test ex- (3) Estimate the additional revenue ceeds any authorized adjusted limita- that is anticipated by the Postal Serv- tion in any fiscal year, whichever is ice for each fiscal year remaining on earlier. the market test, including any exten- (b) A request to make an experi- sion period granted by the Commission mental product permanent must, in accordance with § 3035.11(c), and pro- among other things, quantify the prod- vide available supporting documenta- uct specific costs associated with the tion; and development of the market test; that (4) Quantify the product specific is, costs incurred before the market costs associated with the development test is implemented. of the market test; that is, costs in- (c) The Postal Service shall also file curred before the market test is imple- a notice of its request to make an ex- mented. perimental product permanent in the (g) The Commission shall review the market test proceeding’s docket. The request for exemption for consistency notice shall include the applicable with the statutory requirements of 39 docket number(s) for the proceeding U.S.C. 3641 and: evaluating the request. (1) Find that the exemption is consistent with the requirements of 39 § 3035.19 [Reserved] U.S.C. 3641; (2) Find that the exemption is incon- § 3035.20 Data collection and reporting sistent with the requirements of 39 requirements. U.S.C. 3641 and provide an opportunity (a) A notice of a market test shall in- to correct the identified deficiencies; clude a data collection plan for the (3) Find that the exemption is incon- market test as required by sistent with the requirements of 39 § 3035.3(a)(2)(vi). Data collection plans U.S.C. 3641 and deny the exemption; or shall include, at a minimum: (4) Direct other action as the Com- (1) The revenue by fiscal quarter remission may consider appropriate. ceived to date by the Postal Service from the market test; § 3035.17 Prevention of market disrup- (2) Attributable costs incurred in tion. conducting the market test, including Notwithstanding the $10 Million Ad- product specific costs related to the adjusted Limitation or any adjustment ministration of the market test; and granted pursuant to § 3035.16, the Com- (3) Volumes of the experimental mission may limit the amount of reve- product by fiscal quarter.

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(b) The Commission may request ad- 3050.28 Monthly and pay period reports. ditional information or data as it 3050.30 Information needed to estimate the deems appropriate. cost of the universal service obligation. (c) To assess the potential impact of [Reserved] a market test in a particular geo- 3050.35 Financial reports. graphic market, the Commission may 3050.40 Additional financial reporting. 3050.41 Treatment of additional financial re- require the Postal Service to report the ports. revenues from the market test for spec- 3050.42 Proceedings to improve the quality ified geographic markets. of financial data. (d) The Postal Service shall file the 3050.43 Information on program perform- information required by the data col- ance. lection plan in data collection reports. 3050.60 Miscellaneous reports and docu- Data collection reports must be filed ments. within 40 days after the close of each AUTHORITY: 39 U.S.C. 503, 3651, 3652, 3653. fiscal quarter during which the market test is offered, or such other period as SOURCE: 74 FR 20850, May 5, 2009, unless the Commission may prescribe. otherwise noted. (e) The Postal Service shall file in its § 3050.1 Definitions applicable to this Annual Compliance Report informa- part. tion on each market test conducted during the fiscal year pursuant to (a) Accepted analytical principle refers § 3050.21(h) of this chapter. to an analytical principle that was applied by the Commission in its most re- PART 3050—PERIODIC REPORTING cent Annual Compliance Determina- tion unless a different analytical principle subsequently was accepted by the Sec. 3050.1 Definitions applicable to this part. Commission in a final rule. 3050.2 Documentation of periodic reports. (b) Accepted quantification technique 3050.3 Access to information supporting refers to a quantification technique Commission reports or evaluations. that was applied in the most recent 3050.10 Analytical principles to be applied in iteration of the periodic report apply- the Postal Service’s annual periodic re- ing that quantification technique or ports to the Commission. was used to support a new analytical 3050.11 Proposals to change an accepted analytical principle applied in the Postal principle adopted in a subsequent rule Service’s annual periodic reports to the 3050.11 proceeding. Commission. (c) Analytical principle refers to a par- 3050.12 Obsolescence of special studies relied ticular economic, mathematical, or on to produce the Postal Service’s an- statistical theory, precept, or assump- nual periodic reports to the Commission. tion applied by the Postal Service in 3050.13 Additional documentation required producing a periodic report to the Com- in the Postal Service’s section 3652 report. mission. 3050.14 Format of the Postal Service’s sec- (d) Annual Compliance Determination tion 3652 report. refers to the report that 39 U.S.C. 3653 3050.20 Compliance and other analyses in requires the Commission to issue each the Postal Service’s section 3652 report. year evaluating the compliance of the 3050.21 Content of the Postal Service’s sec- Postal Service. tion 3652 report. (e) Annual periodic reports to the Com- 3050.22 Documentation supporting attributable cost estimates in the Postal Serv- mission refers to all of the reports that ice’s section 3652 report. the Postal Service is required to pro- 3050.23 Documentation supporting incre- vide to the Commission each year. mental cost estimates in the Postal (f) Quantification technique refers to Service’s section 3652 report. any data entry or manipulation tech- 3050.24 Documentation supporting esti- nique whose validity does not require mates of costs avoided by worksharing the acceptance of a particular eco- and other mail characteristics in the nomic, mathematical, or statistical Postal Service’s section 3652 report. 3050.25 Volume and revenue data. theory, precept, or assumption. A 3050.26 Documentation of demand elastic- change in quantification technique ities and volume forecasts. should not change the output of the 3050.27 Workers’ Compensation Report. analysis in which it is employed.

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(g) Section 3652 report refers to the an- the Postal Service Inspector General in nual compliance report provided by the connection with any information sub- Postal Service to the Commission pur- mitted under 39 U.S.C. 3652; and suant to 39 U.S.C. 3652, but does not in- (2) Information that supports the clude the reports required by 39 U.S.C. Commission’s annual assessment under 2803 and 2804. 39 U.S.C. 3651. (b) [Reserved] § 3050.2 Documentation of periodic reports. § 3050.10 Analytical principles to be (a) At the time that it submits any applied in the Postal Service’s an- periodic report to the Commission, the nual periodic reports to the Com- Postal Service shall identify any input mission. data that have changed, list any quan- In its annual periodic reports to the tification techniques that it has Commission, the Postal Service shall changed, and list any corrections that use only accepted analytical principles. it has made since that report was last With respect to its submissions under submitted to and accepted by the Com- § 3050.26, however, the Postal Service mission. It shall provide a brief nar- may elect to use an analytical prin- rative explanation of each listed ciple prior to its acceptance by the change. Commission. (b) If workpapers are required to support a periodic report, they shall: § 3050.11 Proposals to change an ac- (1) Show all calculations employed in cepted analytical principle applied producing each estimate; in the Postal Service’s annual periodic reports to the Commission. (2) Be sufficiently detailed to allow all numbers used in such calculations (a) To improve the quality, accuracy, to be traced back to public documents or completeness of the data or analysis or to primary data sources; and of data contained in the Postal Serv- (3) Be submitted in a form, and be ac- ice’s annual periodic reports to the companied by sufficient explanation Commission, the Commission, acting and documentation, to allow them to on its own behalf, may issue a notice of be replicated using a publicly available proceeding to change an accepted ana- PC application. lytical principle. In addition, any in- (c) Spreadsheets used in preparing terested person, including the Postal periodic reports shall be submitted in Service or a public representative, may electronic form. They shall display the submit a petition to the Commission to formulas used, their links to related initiate such a proceeding. spreadsheets, and shall not be password (b) Form and content of notice or peti- protected. tion. The notice of proceeding or peti- (d) Filing of portions of the docu- tion shall identify the accepted analyt- mentation required by paragraphs (b) ical principle proposed for review, ex- and (c) of this section that are not time plain its perceived deficiencies, and critical may be delayed up to 2 weeks if suggest how those deficiencies should the Postal Service obtains permission be remedied. from the Commission to defer filing of (1) If the notice of proceeding or peti- such portions at least 30 days prior to tion proposes that a specific alter- the date on which the periodic report is native analytical principle be followed, due. it should include the data, analysis, and documentation on which the pro- § 3050.3 Access to information sup- posal is based, and, where feasible, in- porting Commission reports or eval- clude an estimate of the impact of the uations. proposed change on the relevant char- (a) The Commission shall have access acteristics of affected postal products, to material if, in its judgment, the in- including their attributable cost, formation supports any report, assess- avoided cost, average revenue, or serv- ment, or evaluation required by title 39 ice attainment. of the United States Code, including: (2) If the petitioner requests access to (1) The working papers and sup- data from the Postal Service to supporting matter of the Postal Service or port the assertions or conclusions in

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its petition, and such data are not oth- tions and procedures. The Postal Serv- erwise available, it shall accompany ice shall update the list annually. the petition with a request to gain access to such data. The petitioner’s re- § 3050.13 Additional documentation request should identify the data sought, quired in the Postal Service’s section 3652 report. and include the reasons for believing that the data will support its petition. At the time the Postal Service files To expedite its evaluation of the data its section 3652 report, it shall include request, the Commission may, after a brief narrative explanation of any reasonable public notice, order that an- changes to accepted analytical prin- swers or objections be presented orally ciples that have been made since the or in writing. most recent Annual Compliance Deter- mination was issued and the reasons (c) Procedures for processing a notice or that those changes were accepted. petition. To better evaluate a notice or petition to change an accepted analyt- § 3050.14 Format of the Postal Serv- ical principle, the Commission may ice’s section 3652 report. order that it be made the subject of The Postal Service’s Cost and Rev- discovery. By request of any interested enue Analysis (CRA) report shall be person, or on its own behalf, the Com- presented in a format reflecting the mission may order that the petitioner classification structure in the Mail and/or the Postal Service provide ex- Classification Schedule. perts on the subject matter of the proposal to participate in technical con- [79 FR 24336, Apr. 30, 2014] ferences, prepare statements clarifying § 3050.20 Compliance and other anal- or supplementing their views, or an- yses in the Postal Service’s section swer questions posed by the Commis- 3652 report. sion or its representatives. (a) The Postal Service’s section 3652 (d) Action on the notice or petition. (1) report shall include an analysis of the After the conclusion of discovery pro- information that it contains in suffi- cedures, if any, the Commission shall cient detail to demonstrate the degree determine whether to issue a notice of to which, in the fiscal year covered by proposed rulemaking based on the peti- its report, each of its products (market tion and the supporting material re- dominant and competitive) comply ceived. Such notice shall be evaluated with all of the applicable provisions of by procedures that are consistent with title 39 of the United States Code and 5 U.S.C. 553. Interested parties will be the regulations promulgated there- afforded an opportunity to present under, and promote the public policy written comments and reply com- objectives set out in title 39 of the ments, and, if the Commission so or- United States Code. ders, to present oral comments as well. (b) Its analysis shall be applied to (2) If accepted by the Commission, products individually, and, where ap- the change proposed in the notice of propriate, to products collectively. proposed rulemaking shall be published (c) It shall address such matters as in a final rule in the FEDERAL REG- non-compensatory rates, discounts ISTER and on the Commission’s Web greater than avoided costs, and failures site. to achieve stated goals for on-time delivery standards. A more detailed anal- § 3050.12 Obsolescence of special stud- ysis is required when the Commission ies relied on to produce the Postal observed and commented upon the Service’s annual periodic reports to same matter in its Annual Compliance the Commission. Determination for the previous fiscal The Postal Service shall provide a year. list of special studies whose results are used to produce the estimates in its an- § 3050.21 Content of the Postal Serv- nual periodic reports to the Commis- ice’s section 3652 report. sion. It shall indicate the date the (a) No later than 90 days after the study was completed and whether the close of each fiscal year, the Postal study reflects current operating condi- Service shall submit a report to the

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Commission analyzing its cost, volume, (5) Analyze the effect of the nego- revenue, rate, and service information tiated service agreement (and other in sufficient detail to demonstrate that functionally equivalent negotiated all products during such year comply service agreements) on the market- with all applicable provisions of title 39 place. If there were harmful effects, ex- of the United States Code. The report plain why those effects were not unrea- shall provide the items in paragraphs sonable. (b) through (j) of this section. (g) For each competitive negotiated (b) The volume and revenue gen- service agreement: erated by each product; (1) Identify its rates and service fea- (c) The attributable costs of, and the tures; and contribution to institutional costs (2) Estimate its costs, volumes, and made by, each product; revenues. (d) The quality of service received by (h) For market tests of experimental each market dominant product, includ- products: ing the speed of delivery and the reli- (1) Estimate their costs, volumes, ability of delivery; and revenues individually, and in ag- (e) For each market dominant gregate, by market dominant and by workshare discount offered during the competitive product group; reporting year: (2) Estimate the quality of service of (1) The per-item cost avoided by the each individual experimental product; Postal Service by virtue of such dis- and count; (3) Indicate whether offering the ex- (2) The percentage of such per-item perimental product has created an in- cost avoided that the per-item appropriate competitive advantage for workshare discount represents; the Postal Service or any mailer. (3) The per-item contribution made to institutional costs; and (i) For each nonpostal service, estimate its costs, volumes, and revenues; (4) The factual and analytical bases and for its conclusion that one or more of the exception provisions of 39 U.S.C. (j) Provide any other information 3622(e)(2)(A) through (D) apply. that the Postal Service believes will (f) For each market dominant nego- help the Commission evaluate the tiated service agreement: Postal Service’s compliance with the applicable provisions of title 39 of the (1) Identify its rates and service fea- United States Code. tures; (2) Estimate its costs, volumes, and § 3050.22 Documentation supporting revenues; attributable cost estimates in the (3) Analyze its effect on the oper- Postal Service’s section 3652 report. ational performance of the Postal (a) The items in paragraphs (b) Service, specifying the affected oper- through (p) of this section shall be re- ations and, to the extent possible, ported when they have changed from quantifying the effect; those used in the most recent Annual (4) Analyze the contribution of the Compliance Determination. agreement to institutional costs for its most recent year of operation. The (b) The CRA report, including rel- year analyzed shall end on the anniver- evant data on international mail serv- sary of the negotiated service agree- ices; ment that falls within the fiscal year (c) The Cost Segments and Compo- covered by the Postal Service’s annual nents (CSC) report; periodic reports to the Commission and (d) All input data and processing pro- include the 12 preceding months. The grams used to produce the CRA report, analysis shall show all calculations and to include: fully identify all inputs. Inputs used to (1) CSC Reconciliation to Financial estimate the effect on total contribu- Statement and Account Reallocations; tion to the Postal Service, such as unit (2) Manual Input Requirement (re- costs and price elasticities, shall be up- flecting direct accounting or modeled dated using fiscal year values; and costs);

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(3) The CSC ‘‘A’’ report (showing how variability, including input data, proc- indirect costs are distributed to prod- essing programs, and output; ucts based on the distribution of direct (i) The econometric analysis of costs); freight rail cost variability, including (4) The CSC ‘‘B’’ report (showing how input data, processing programs, and indirect Property Equipment Supplies output; Services and Administrative (PESSA) (j) A list and summary description of costs are distributed to products; any transportation contracts whose (5) The CSC ‘‘D’’ report (showing unit rates vary according to the level final adjustments to total attributable of postal volume carried. The descrip- and product-specific costs); tion should include the product or (6) The CSC ‘‘F’’ report (containing product groups carried under each list- distribution keys for indirect labor ed contract; components); (k) Spreadsheets and processing pro- (7) The control file that includes the grams distributing attributable mail CRA program control string commands processing costs; used to produce the CRA and the (l) The Vehicle Service Driver Data above-described CSC reports; and Collection System; (8) The master list of cost segment (m) Input data, processing programs, components, including all of the com- and output of the Vehicle Service Driv- ponents used as distribution keys in er Cost Variability Study; the development of the CSC report and (n) Econometric analysis of post- its accompanying reports. master cost variability; (e) Spreadsheet workpapers under- (o) Floor Space Survey; and lying development of the CSC report by (p) Density studies used to convert component. These workpapers shall in- weight to cubic feet of mail. clude the updated factors and input § 3050.23 Documentation supporting data sets from the supporting data sys- incremental cost estimates in the tems used, including: Postal Service’s section 3652 report. (1) The In-Office Cost System (IOCS); Input data, processing programs, and (2) The Management Operating Data output of an incremental cost model System (MODS); shall be reported. (3) The City Carrier Cost System (CCCS); § 3050.24 Documentation supporting (4) The City Carrier Street Time estimates of costs avoided by Sampling System (CCSTS); worksharing and other mail charac- (5) The Rural Carrier Cost System teristics in the Postal Service’s sec- (RCCS); tion 3652 report. (6) The National Mail Count; (a) The items in paragraphs (b) (7) The Transportation Cost System through (l) of this section shall be re- (TRACS); ported, including supporting calcula- (8) System for International Reve- tions and derivations. nues and Volumes/Outbound (SIRV/O); (b) Letter, card, flat, parcel and non- (9) System for International Reve- flat machinable mail processing cost nues and Volumes/Inbound (SIRV/I); models with Delivery Point Sequence (10) Military and International Dis- percentages calculated, which shall in- patch and Accountability System; and clude: (11) Inbound International Revenue (1) Coverage factors for any equip- Accounting Systems (IAB data). ment where coverage is less than 100 (f) The econometric analysis of car- percent; rier street time, including input data, (2) MODS productivities; processing programs, and output; (3) Piggyback factors and supporting (g) The Window Service Supply Side data; Variability, Demand Side Variability, (4) Entry profiles, bundle sorts, and and Network Variability studies, in- pieces per bundle; cluding input data, processing pro- (5) Bundle breakage, handlings, and grams, and output; density; (h) The econometric analysis of pur- (6) Mail flow density and accept chased highway transportation cost rates;

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(7) Remote Computer Reader finaliza- (c) Revenue, pieces, and weight by tion costs, cost per image, and Remote rate category and special service by Bar Code Sorter leakage; quarter, within 30 days of the close of (8) Percentage of mail finalized to the quarter; carrier route; (d) Quarterly Statistics Report, in- (9) Percentage of mail destinating at cluding estimates by shape, weight, post office boxes; and and indicia, within 30 days of the close (10) Wage rates and premium pay fac- of the quarter; and tors. (e) Billing determinants within 40 (c) Pallet cost models for Periodicals; days of the close of the quarter. (d) Sack cost models for Periodicals; § 3050.26 Documentation of demand (e) Bundle cost models for Periodi- elasticities and volume forecasts. cals; (f) Other container cost models for By January 20 of each year, the Post- Periodicals; al Service shall provide econometric estimates of demand elasticity for all (g) Analysis of Periodicals container postal products accompanied by the costs; underlying econometric models and the (h) Business Reply Mail cost sup- input data sets used; and a volume porting material; forecast for the current fiscal year, and (i) Mail processing units costs for the underlying volume forecasting Carrier Route, High Density, and Satu- model. ration mail; (j) Mail processing unit costs by § 3050.27 Workers’ Compensation Re- shape and cost pool for each product port. and benchmark category; The Workers’ Compensation Report, (k) Delivery costs by product, shape, including summary workpapers, shall presort level, automation compat- be provided by March 1 of each year. ibility, and machinability, including Detached Address Label cost calcula- § 3050.28 Monthly and pay period re- tions; and ports. (l) Dropship cost avoidance models. (a) The reports in paragraphs (b) through (f) of this section shall be pro- § 3050.25 Volume and revenue data. vided within 15 days of the close of the (a) The items in paragraphs (b) relevant period or as otherwise stated. through (e) of this section shall be pro- (b) Monthly Summary Financial Re- vided. port on the 24th day of the following (b) The Revenue, Pieces, and Weight month, except that the report for the (RPW) report, including estimates by last month of each quarter shall be shape, weight, and indicia, and the un- provided at the time that the Form 10– derlying billing determinants, broken Q report is provided. out by quarter, within 90 days of the (1) The report shall follow the for- close of each fiscal year; mats as shown below.

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(2) [Reserved] (c) National Consolidated Trial Bal- ances and the Revenue and Expense Summary (monthly);

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(d) National Payroll Hours Summary rules prescribed by the Securities and in electronic form (pay period); Exchange Commission implementing (e) On-roll and Paid Employee Statis- section 404 of the Sarbanes-Oxley Act tics (ORPES) (pay period); and of 2002 (15 U.S.C. 7262), beginning with (f) Postal Service Active Employee the annual report for fiscal year 2010. Statistical Summary (HAT report) (c) Financial reporting. The reports re- (pay period). quired by paragraph (a)(2) of this sec- § 3050.30 Information needed to esti- tion shall include, with respect to the mate the cost of the universal serv- Postal Service’s pension and post-re- ice obligation. [Reserved] tirement health obligations: (1) The funded status of the Postal § 3050.35 Financial reports. Service’s pension and post-retirement (a) The reports in paragraphs (b) health obligations; through (d) of this section shall be pro- (2) Components of the net change in vided annually at the time indicated. the fund balances and obligations and (b) Annual Report of the Postmaster the nature and cause of any significant General (when released to the public); changes; (c) Congressional Budget Submission (3) Components of net periodic costs; and supporting workpapers, including Summary Tables SE 1, 2, and 6 (within (4) Cost methods and assumptions un- 7 days of the submission of the Federal derlying the relevant actuarial valu- Budget by the President to the Con- ations; gress); and (5) The effect of a 1 percentage point (d) Integrated Financial Plan (within increase in the assumed health care 7 days of approval by the Board of Gov- cost trend rate for each future year on ernors). the service and interest costs components of net periodic post-retirement § 3050.40 Additional financial report- health cost and the accumulated obli- ing. gation; (a) In general. The Postal Service (6) Actual contributions to and pay- shall file with the Commission: ments from the funds for the years pre- (1) Within 40 days after the end of sented and the estimated future con- each fiscal quarter, a quarterly report tributions and payments for each of containing the information required by the following 5 years; the Securities and Exchange Commis- sion to be included in quarterly reports (7) The composition of plan assets re- under sections 13 and 15(d) of the Secu- flected in the fund balances; and rities Exchange Act of 1934 (15 U.S.C. (8) The assumed rate of return on 78m, 78o(d)) on Form 10–Q, as such form fund balances and the actual rates of (or any successor form) may be revised return for the years presented. from time to time; (d) Time of filing. Within 5 business (2) Within 60 days after the end of days of receiving the data listed under each fiscal year, an annual report con- paragraph (c) of this section from the taining the information required by Office of Personnel Management, the the Securities and Exchange Commis- Postal Service shall provide two copies sion to be included in annual reports of that data to the Commission. under such sections on Form 10–K, as (e) Segment reporting. such form (or any successor form) may (1) Beginning with reports for fiscal be revised from time to time; and year 2010, for purposes of the reports (3) Periodic reports within the time frame and containing the information required under paragraphs (a)(1) and (2) prescribed in Form 8–K of the Securi- of this section, the Postal Service shall ties and Exchange Commission, as such include segment reporting. form (or any successor form) may be (2) The Postal Service shall deter- revised from time to time. mine the appropriate segment report- (b) Internal control report. For pur- ing under paragraph (e)(1) of this sec- poses of defining the reports required tion after consultation with the Com- by paragraph (a)(2) of this section, the mission. Postal Service shall comply with the

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§ 3050.41 Treatment of additional fi- training handbooks by July 1, 2009, and nancial reports. again when changed; (a) For purposes of the reports re- (c) The items listed in paragraph (b) quired by § 3050.40(a)(2), the Postal of this section in hard copy form, and Service shall obtain an opinion from an in electronic form, if available; independent auditor on whether the in- (d) Household Diary Study (when formation listed in § 3050.40(c) is fairly completed); stated in all material respects, either (e) Input data and calculations used in relation to the basic financial state- to produce the annual Total Factor ments as a whole or on a stand-alone Productivity estimates (by March 1 of basis. each year); (f) Succinct narrative explanations of (b) Supporting matter. The Commis- how the estimates in the most recent sion shall have access to the audit doc- Annual Compliance Determination umentation and any other supporting were calculated and the reasons that matter of the Postal Service and its particular analytical principles were independent auditor in connection with followed. The narrative explanations any information submitted under shall be comparable in detail to that § 3050.40. which had been provided in Library § 3050.42 Proceedings to improve the Reference 1 in omnibus rate cases proc- quality of financial data. essed under the Postal Reorganization Act (by July 1 of each year); and The Commission may, on its own mo- (g) An update of the history of tion or on request of an interested changes in postal volumes, revenues, party, initiate proceedings to improve rates, and fees that appears in library the quality, accuracy, or completeness references USPS–LR–L–73 through 76 in of Postal Service data required under Docket No. R2006–1 (by July 1 of each § 3050.40 whenever it shall appear that year). the data have become significantly inaccurate or can be significantly im- proved; or those revisions are, in the PART 3055—SERVICE PERFORM- judgment of the Commission, otherwise ANCE AND CUSTOMER SATIS- necessitated by the public interest. FACTION REPORTING

§ 3050.43 Information on program per- Subpart A—Annual Reporting of Service formance. Performance Achievements (a) The Postal Service shall provide Sec. the items in paragraphs (b)(1) through 3055.1 Annual reporting of service perform- (3) of this section at the same time ance achievements. that the President submits an annual 3055.2 Contents of the annual report of serv- budget to Congress: ice performance achievements. (b)(1) The comprehensive statement 3055.3 Reporting exceptions. 3055.4 Internal measurement systems. required by 39 U.S.C. 2401(e); 3055.5 Changes to measurement systems, (2) The performance plan required by service standards, service goals or re- 39 U.S.C. 2803; and porting methodologies. (3) The program performance reports 3055.6 Addition of new market dominant required by 39 U.S.C. 2804. products or changes to existing market (c) Section 3050.10 does not apply to dominant products. the reports referenced in this section. 3055.7 Special study. 3055.20 First–Class Mail. 3055.21 Standard Mail. § 3050.60 Miscellaneous reports and 3055.22 Periodicals. documents. 3055.23 Package Services. (a) The reports in paragraphs (b) 3055.24 Special Services. through (g) of this section shall be pro- 3055.25 Non-postal products. [Reserved] vided at the times indicated. (b) A master list of publications and Subpart B—Periodic Reporting of Service handbooks, including those related to Performance Achievements internal information procedures, data 3055.30 Periodic reporting of service per- collection forms, and corresponding formance achievements.

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3055.31 Contents of the Quarterly Report of (4) A description of any changes to service performance achievements. the measurement system or data re- 3055.32 Measurement systems using a deliv- porting methodology implemented ery factor. 3055.45 First–Class Mail. within the reported fiscal year; and 3055.50 Standard Mail. (5) Where proxies are used, a descrip- 3055.55 Periodicals. tion of and justification for the use of 3055.60 Package Services. each proxy. 3055.65 Special Services. (f) A description of the statistical va- 3055.70 Non-postal products. [Reserved] lidity and reliability of the results for each measured product. Subpart C—Reporting of Customer (g) A description of how the sampled Satisfaction data represents the national geo- 3055.90 Reporting of customer satisfaction. graphic mail characteristics or behav- 3055.91 Consumer access to postal services. ior of the product. 3055.92 Customer Experience Measurement (h) For each product that does not Surveys. meet a service standard, an expla- AUTHORITY: 39 U.S.C. 503, 3622(a), 3652(d) nation of why the service standard is and (e); 3657(c). not met, and a plan describing the SOURCE: 75 FR 38742, July 6, 2010, unless steps that have or will be taken to en- otherwise noted. sure that the product meets or exceeds the service standard in the future. Subpart A— Annual Reporting of (i) The identification of each product, Service Performance or component of a product, granted an Achievements exception from reporting pursuant to § 3055.3, and a certification that the ra- § 3055.1 Annual reporting of service tionale for originally granting the ex- performance achievements. ception remains valid. For each market dominant product (j) Documentation showing how data specified in the Mail Classification reported at a given level of aggregation Schedule in part 3020, appendix A to were derived from data reported at subpart A of part 3020 of this chapter, greater levels of disaggregation. Such the Postal Service shall file a report as documentation shall be in electronic part of the section 3652 report address- format with all data links preserved. It ing service performance achievements shall show all formulas used, including for the preceding fiscal year. volumes and other weighting factors. (k) For each product, documentation § 3055.2 Contents of the annual report showing how the reports required by of service performance achieve- subpart A of this part were derived ments. from the reports required by subpart B (a) The items in paragraphs (b) of this part. Such documentation shall through (k) of this section shall be in- be in electronic format with all data cluded in the annual report of service links preserved. It shall show all for- performance achievements. mulas used, including volumes and (b) The class or group-specific report- other weighting factors. ing requirements specified in §§ 3055.20 through 3055.25. § 3055.3 Reporting exceptions. (c) The applicable service standard(s) (a) The Postal Service may petition for each product. the Commission to request that a prod- (d) The applicable service goal(s) for uct, or component of a product, be ex- each product. cluded from reporting, provided the (e) A description of the measurement Postal Service demonstrates that: system for each product, including: (1) The cost of implementing a meas- (1) A description of what is being urement system would be prohibitive measured; in relation to the revenue generated by (2) A description of the system used the product, or component of a prod- to obtain each measurement; uct; (3) A description of the methodology (2) The product, or component of a used to develop reported data from product, defies meaningful measure- measured data; ment; or

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(3) The product, or component of a § 3055.7 Special study. product, is in the form of a negotiated Included in the second section 3652 service agreement with substantially all components of the agreement in- report due after this rule becomes cluded in the measurement of other final, and every 2 years thereafter, the products. Postal Service shall provide a report, (b) The Postal Service shall identify by class of mail, on delivery perform- each product or component of a prod- ance to remote areas of the Alaska, uct granted an exception in each report Caribbean, and Honolulu districts. required under subparts A or B of this part, and certify that the rationale for § 3055.20 First–Class Mail. originally granting the exception re- (a) Single–Piece Letters/Postcards, Bulk mains valid. Letters/Postcards, Flats, and Parcels. For each of the Single–Piece Letters/Post- § 3055.4 Internal measurement sys- cards, Bulk Letters/Postcards, Flats, tems. and Parcels products within the First– Service performance measurements Class Mail class, report the on-time obtained from internal measurement service performance (as a percentage systems or hybrid measurement sys- rounded to one decimal place), tems (which are defined as systems disaggregated by mail subject to the that rely on both an internal and an overnight, 2–day, and 3/4/5–day service external measurement component) standards. shall not be used to comply with any (b) Outbound Single–Piece First–Class reporting requirement under subparts Mail International and Inbound Single– A or B of this part without prior Com- Piece First–Class Mail International. For mission approval. each of the Outbound Single–Piece First–Class Mail International and In- § 3055.5 Changes to measurement systems, service standards, service bound Single–Piece First–Class Mail goals, or reporting methodologies. International products within the First–Class Mail class, report the on- The Postal Service shall file notice time service performance (as a percent- with the Commission describing all age rounded to one decimal place). changes to measurement systems, service standards, service goals or report- § 3055.21 Standard Mail. ing methodologies, including the use of proxies for reporting service perform- For each product within the Stand- ance, 30 days prior to planned imple- ard Mail class, report the on-time serv- mentation. The Commission may ini- ice performance (as a percentage tiate a proceeding at any time to con- rounded to one decimal place). sider such changes if it appears that the changes might have a material im- § 3055.22 Periodicals. pact on the accuracy, reliability, or For each product within the Periodi- utility of the reported measurement, or cals class, report the on-time service if the changes might have a material performance (as a percentage rounded impact on the characteristics of the to one decimal place). underlying product. § 3055.23 Package Services. § 3055.6 Addition of new market dominant products or changes to exist- For each product within the Package ing market dominant products. Services class, report the on-time serv- Whenever the Postal Service pro- ice performance (as a percentage poses the addition of a new market rounded to one decimal place). dominant product or a change to an ex- § 3055.24 Special Services. isting market dominant product, it also shall propose new or revised (as For each product within the Special necessary) service performance meas- Services group, report the percentage urement systems, service standards, of time (rounded to one decimal place) service goals, data reporting elements, that each product meets or exceeds its and data reporting methodologies. service standard.

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§ 3055.25 Nonpostal products. [Re- ery factor also shall be presented inde- served] pendent of the total measurement.

Subpart B—Periodic Reporting of § 3055.45 First–Class Mail. Service Performance (a) Single–Piece Letters/Postcards, Bulk Achievements Letters/Postcards, Flats, and Parcels. For each of the Single–Piece Letters/Post- § 3055.30 Periodic reporting of service cards, Bulk Letters/Postcards, Flats, performance achievements. and Parcels products within the First– For each market dominant product Class Mail class, report the: specified in the Mail Classification (1) On-time service performance (as a Schedule in part 3020, appendix A to percentage rounded to one decimal subpart A of part 3020 of this chapter, place), disaggregated by mail subject the Postal Service shall file a Quar- to the overnight, 2–day, and 3/4/5–day terly Report with the Commission ad- service standards, provided at the Dis- dressing service performance achieve- trict, Postal Administrative Area, and ments for the preceding fiscal quarter National levels; and (within 40 days of the close of each fis- (2) Service variance (as a percentage cal quarter). rounded to one decimal place) for mail delivered within +1 day, +2 days, and +3 § 3055.31 Contents of the Quarterly Re- days of its applicable service standard, port of service performance disaggregated by mail subject to the achievements. overnight, 2–day, and 3/4/5–day service (a) The items in paragraphs (b) standards, provided at the District, through (e) of this section shall be in- Postal Administrative Area, and Na- cluded in the quarterly report of serv- tional levels. ice performance achievements. (b) Outbound Single–Piece First–Class (b) The class or group-specific report- Mail International and Inbound Single– ing items specified in §§ 3055.45 through Piece First–Class Mail International. For 3055.70. each of the Outbound Single–Piece (c) The identification of each prod- First–Class Mail International and In- uct, or component of a product, grant- bound Single–Piece First–Class Mail ed an exception from reporting pursu- International products within the ant to § 3055.3, and a certification that First–Class Mail class, report the: the rationale for originally granting (1) On-time service performance (as a the exception remains valid. percentage rounded to one decimal (d) Documentation showing how data place), provided at the Postal Adminis- reported at a given level of aggregation trative Area and National levels; and were derived from data reported at (2) Service variance (as a percentage greater levels of disaggregation. Such rounded to one decimal place) for mail documentation shall be in electronic delivered within +1 day, +2 days, and +3 format with all data links preserved. It days of its applicable service standard, shall show all formulas used, including provided at the Postal Administrative volumes and other weighting factors. Area and National levels. (e) A year-to-date aggregation of each data item provided in each Quar- § 3055.50 Standard Mail. terly Report due for the reported fiscal (a) For each product within the year, where applicable, including vol- Standard Mail class, report the on-time umes and other weighting factors pro- service performance (as a percentage vided in electronic format, with for- rounded to one decimal place), mulas shown and data links preserved disaggregated by the Destination to allow traceability to individual Entry (2–day), Destination Entry (3– Quarterly Reports. day through 4–day), Destination Entry (5–day through 10–day), End-to-End (3- § 3055.32 Measurement systems using day through 5-day), End-to-End (6-day a delivery factor. through 10-day), and End-to-End (11- For measurements that include a de- day through 22-day) entry mail/service livery factor, the duration of the deliv- standards, provided at the District,

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Postal Administrative Area, and Na- (1) On-time service performance (as a tional levels. percentage rounded to one decimal (b) For each product within the place), disaggregated by mail subject Standard Mail class, report the service to the 2-day through 4-day and 5-day variance (as a percentage rounded to through 20-day service standards, pro- one decimal place) for mail delivered vided at the District, Postal Adminis- within +1 day, +2 days, and +3 days of trative Area, and National levels; and its applicable service standard, (2) Service variance (as a percentage disaggregated by the Destination rounded to one decimal place) for mail Entry (2-day), Destination Entry (3-day delivered within +1 day, +2 days, and +3 through 4-day), Destination Entry (5- days of its applicable service standard, day through 10-day), End-to-End (3-day disaggregated by mail subject to the 2- through 5-day), End-to-End (6-day day through 4-day and 5-day through through 10-day), and End-to-End (11- 20-day service standards, provided at day through 22-day) entry mail/service the District, Postal Administrative standards, provided at the District, Area, and National levels. Postal Administrative Area, and Na- (b) Bound Printed Matter Flats, Bound tional levels. Printed Matter Parcels, and Media Mail/ § 3055.55 Periodicals. Library Mail. For each of the Bound Printed Matter Flats, Bound Printed (a) Within County Periodicals. For the Matter Parcels, and Media Mail/Li- Within County Periodicals product brary Mail products within the Pack- within the Periodicals class, report age Services class, report the: the: (1) On-time service performance (as a (1) On-time service performance (as a percentage rounded to one decimal percentage rounded to one decimal place), disaggregated by the Destina- place), provided at the Postal Adminis- tion Entry and End-to-End entry mail, trative Area and National levels; and provided at the District, Postal Admin- (2) Service variance (as a percentage istrative Area, and National levels; and rounded to one decimal place) for mail (2) Service variance (as a percentage delivered within +1 day, +2 days, and +3 rounded to one decimal place) for mail days of its applicable service standard, delivered within +1 day, +2 days, and +3 provided at the Postal Administrative days of its applicable service standard, Area and National levels. disaggregated by the Destination (b) Outside County Periodicals. For the Entry and End-to-End entry mail, pro- Outside County Periodicals product vided at the District, Postal Adminis- within the Periodicals class, report trative Area, and National levels. the: (1) On-time service performance (as a (c) Inbound Surface Parcel Post (at percentage rounded to one decimal UPU rates). For the Inbound Surface place), disaggregated by the Destina- Parcel Post (at UPU rates) product tion Entry and End-to-End entry mail, within the Package Services class, re- provided at the Postal Administrative port the: Area and National levels; and (1) On-time service performance (as a (2) Service variance (as a percentage percentage rounded to one decimal rounded to one decimal place) for mail place), provided at the Postal Adminis- delivered within +1 day, +2 days, and +3 trative Area and National levels; and days of its applicable service standard, (2) Service variance (as a percentage disaggregated by the Destination rounded to one decimal place) for mail Entry and End-to-End entry mail, pro- delivered within +1 day, +2 days, and +3 vided at the Postal Administrative days of its applicable service standard, Area and National levels. provided at the Postal Administrative Area and National levels. § 3055.60 Package Services. (a) Single-Piece Parcel Post. For the § 3055.65 Special Services. Single-Piece Parcel Post product with- (a) For each product within the Spe- in the Package Services class, report cial Services group, report the percent- the: age of time (rounded to one decimal

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place) that each product meets or ex- Schedule in part 3020, appendix A to ceeds its service standard, provided at subpart A of part 3020 of this chapter, the National level. the Postal Service shall file a report as (b) Additional reporting for Ancillary part of the section 3652 report, unless a Services. For the Certified Mail, elec- more frequent filing is specifically in- tronic Return Receipt, Delivery Con- dicated, addressing customer satisfac- firmation, Insurance, and an aggregation achievements for the preceding tion of all other services within the fiscal year. The report shall include, at Ancillary Services product, individ- a minimum, the specific reporting re- ually report the percentage of time quirements presented in §§ 3055.91 (rounded to one decimal place) that through 3055.92. each service meets or exceeds its service standard. For green card Return § 3055.91 Consumer access to postal Receipt report: services. (1) The number of EXFC seed (a) The following information per- mailpieces sent; taining to post offices shall be re- (2) The percentage of green cards ported, disaggregated by type of post properly completed and returned; office facility, and provided at the (3) The percentage of green cards not Postal Administrative Area and Na- properly completed, but returned; tional levels: (4) The percentage of mailpieces re- (1) The number of post offices at the turned without a green card signature; beginning of the reported fiscal year; and (2) The number of post offices at the (5) The percentage of the time the end of the reported fiscal year; service meets or exceeds its overall (3) The number of post office closings service standard. in the reported fiscal year; (c) Additional reporting for Post Office (4) The number of post office emer- Box Service. For Post Office Box Serv- gency suspensions in effect at the be- ice, report the percentage of time ginning of the reported fiscal year; (rounded to one decimal place) that the (5) The number of post office emer- product meets or exceeds its service gency suspensions in the reported fis- standard, provided at the District and cal year; and Postal Administrative Area levels. (6) The number of post office emer- (d) Additional reporting for Stamp Ful- gency suspensions in effect at the end fillment Service. For Stamp Fulfillment of the reported fiscal year. Service, report: (b) The following information per- (1) The on-time service performance taining to delivery points shall be re- (as a percentage rounded to one dec- ported, disaggregated by delivery point imal place), disaggregated by customer type, provided at the Postal Adminis- order entry method; and trative Area and National levels: (2) The service variance (as a per- (1) The number of residential deliv- centage rounded to one decimal place) ery points at the beginning of the re- for orders fulfilled within +1 day, +2 ported fiscal year; days, and +3 days of their applicable (2) The number of residential deliv- service standard, disaggregated by cus- ery points at the end of the reported tomer order entry method. fiscal year; [75 FR 38742, July 6, 2010, as amended at 76 (3) The number of business delivery FR 70656, Nov. 15, 2011] points at the beginning of the reported fiscal year; and § 3055.70 Nonpostal products. [Re- (4) The number of business delivery served] points at the end of the reported fiscal year. Subpart C—Reporting of Customer (c) The following information per- Satisfaction taining to collection boxes shall be reported, provided at the Postal Adminis- § 3055.90 Reporting of customer satis- trative Area and National levels: faction. (1) The number of collection boxes at For each market dominant product the beginning of the reported fiscal specified in the Mail Classification year;

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(2) The number of collection boxes at 3060.23 Identified property and equipment the end of the reported fiscal year; assets report. (3) The number of collection boxes re- 3060.24 Competitive products fund report. moved during the reported fiscal year; 3060.30 Statement of allocated assets and li- and abilities for competitive products. (4) The number of collection boxes 3060.31 Initial filing. added to new locations during the re- 3060.40 Calculation of the assumed Federal ported fiscal year. income tax. (d) The average customer wait time 3060.41 Supporting documentation. in line for retail service shall be re- 3060.42 Commission review. ported. Data shall be provided for the 3060.43 Annual transfer from competitive beginning of the reported fiscal year products fund to Postal Service fund. and for the close of each successive fis- AUTHORITY: 39 U.S.C. 503, 2011, 3633, 3634. cal quarter at the Postal Administra- SOURCE: 73 FR 79261, Dec. 24, 2008, unless tive Area and National levels. otherwise noted.

§ 3055.92 Customer Experience Meas- § 3060.1 Scope. urement Surveys. (a) The report shall include a copy of The rules in this part are applicable each type of Customer Experience to the Postal Service’s theoretical Measurement instrument, or any simi- competitive products enterprise devel- lar instrument that may supersede the oped pursuant to 39 U.S.C. 2011 and 3634 Customer Experience Measurement in- and to the Postal Service’s obligation strument used in the preceding fiscal to calculate annually an assumed Fed- year. eral income tax on competitive prod- (b) The report shall include informa- ucts income and transfer annually any tion obtained from each type of Cus- such assumed Federal income tax due tomer Experience Measurement instru- from the Competitive Products Fund to ment, or any similar instrument that the Postal Service Fund. may supersede the Customer Experi- ence Measurement instrument includ- § 3060.10 Costing. ing: (a) The assumed taxable income from (1) A description of the customer competitive products for the Postal type targeted by the survey; Service’s theoretical competitive prod- (2) The number of surveys initiated and the number of surveys received; ucts enterprise for a fiscal year shall be and based on total revenues generated by (3) Where the question asked is sub- competitive products during that year ject to a multiple choice response, the less the costs identified in paragraph number of responses received for each (b) of this section calculated using the question, disaggregated by each of the methodology most recently approved possible responses. by the Commission. (b) The net income for the Postal PART 3060—ACCOUNTING PRAC- Service’s theoretical competitive prod- TICES AND TAX RULES FOR THE ucts enterprise shall reflect the fol- THEORETICAL COMPETITIVE lowing costs: PRODUCTS ENTERPRISE (1) Attributable costs, including volume-variable costs, product-specific Sec. costs, and those inframarginal costs 3060.1 Scope. calculated as part of a competitive 3060.10 Costing. product’s incremental costs; and 3060.11 Valuation of assets. (2) The appropriate share of institu- 3060.12 Asset allocation. tional costs assigned to competitive 3060.13 Valuation of liabilities. 3060.14 Competitive products enterprise products by the Commission pursuant statement of allocated assets and liabil- to 39 U.S.C. 3633(a)(3). ities. 3060.20 Reports. [73 FR 79261, Dec. 24, 2008, as amended at 81 3060.21 Income report. FR 88123, Dec. 7, 2016] 3060.22 Financial status report.

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§ 3060.11 Valuation of assets. Accounts used solely for the provision For the purposes of 39 U.S.C. 2011, the of competitive products. total assets of the Postal Service theo- (b) Identify all liability accounts retical competitive products enterprise within the Postal Service’s Chart of are the greater of: Accounts used solely for the provision (a) The percentage of total Postal of market dominant products. Service revenues and receipts from (c) The portion of liability accounts competitive products times the total in the Postal Service’s Chart of Ac- net assets of the Postal Service, or counts that are not identified in either (b) The net assets related to the pro- paragraph (a) or paragraph (b) of this vision of competitive products as de- section shall be assigned to the theo- termined pursuant to § 3060.12. retical competitive products enterprise using a method of allocation based on § 3060.12 Asset allocation. appropriate revenue or cost drivers ap- Within 6 months of January 23, 2009, proved by the Commission. and for each fiscal year thereafter, the (d) Within 6 months of the effective Postal Service will develop the net as- date of these rules, the Postal Service sets of the theoretical competitive shall submit to the Commission for ap- products enterprise as follows: proval a proposed methodology detail- (a) Identify all asset accounts within ing how each liability account identi- the Postal Service’s Chart of Accounts fied in the Chart of Accounts shall be used solely for the provision of com- allocated to the theoretical competi- petitive products. tive products enterprise and provide an (b) Identify all asset accounts within explanation in support of each alloca- the Postal Service’s Chart of Accounts tion. used solely for the provision of market (e) If the Postal Service desires to dominant products. change the methodologies outlined (c) The portion of asset accounts in above, it shall utilize the procedures the Postal Service’s Chart of Accounts provided in § 3050.11 of this chapter. that are not identified in either paragraph (a) or paragraph (b) of this sec- § 3060.14 Competitive products enter- tion shall be assigned to the Postal prise statement of allocated assets Service theoretical competitive prod- and liabilities. ucts enterprise using a method of allo- The Postal Service will report the as- cation based on appropriate revenue or sets and liabilities of the theoretical cost drivers approved by the Commis- competitive products enterprise as sion. (d) Within 6 months of January 23, computed under §§ 3060.12 and 3060.13 in 2009, the Postal Service shall submit to the format as prescribed under § 3060.30 the Commission for approval a pro- for each fiscal year starting with FY posed methodology detailing how each 2010. asset account identified in the Chart of § 3060.20 Reports. Accounts shall be allocated to the theoretical competitive products enter- (a) Beginning with reports for FY prise and provide an explanation in 2009, the Postal Service shall file with support of each allocation. the Commission each of the reports re- (e) If the Postal Service desires to quired by this part by no later than 90 change the methodologies outlined days after the close of each fiscal year. above, it shall utilize the procedures For FY 2008, the Postal Service may provided in § 3050.11 of this chapter. file these reports by January 15, 2009, with the exception of the report re- § 3060.13 Valuation of liabilities. quired by § 3060.24. Within 6 months of January 23, 2009, (b) Each report shall include and for each fiscal year thereafter, the workpapers that cite all numbers to Postal Service will develop the liabil- primary sources and such other infor- ities of the theoretical competitive mation needed to present complete and products enterprise as follows: accurate financial information con- (a) Identify all liability accounts cerning the provision of competitive within the Postal Service’s Chart of products.

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(c) Each report shall utilize the same for FY 2008, as approved by the Com- books of accounts and data collection mission, shall be used for all future re- systems used to produce the report reports until such time as they may be quired by part 3050 of this chapter. changed by the Commission. If the (d) Each report shall include sum- Postal Service desires to change such mary descriptions of computations practices, it shall utilize the proce- used, assumptions made, and other rel- dures provided in § 3050.11 of this chap- evant information in the form of notes ter. to the financial statements. (e) A one-time extension until Janu- § 3060.21 Income report. ary 15, 2009, shall be permitted for the submission of the reports due for fiscal The Postal Service shall file an In- year ending September 30, 2008. come Report in the form and content of (f) The accounting practices used by Table 1, below. the Postal Service in the reports filed

TABLE 1—COMPETITIVE PRODUCTS INCOME STATEMENT—PRC FORM CP–01 [$ in 000s]

Percent FY 20xx FY 20xx–1 Change from change from SPLY SPLY

Revenue: ...... $x,xxx $x,xxx $xxx xx.x (1) Mail and Services Revenues ...... xxx xxx xx xx.x (2) Investment Income ...... x,xx x,xxx xxx xx.x (3) Total Competitive Products Revenue ...... Expenses: ...... x,xxx ...... (4) Volume-Variable Costs ...... x,xxx x,xxx xxx xx.x (5) Product Specific Costs ...... x,xxx x,xxx xxx xx.x (6) Incremental Inframarginal Costs ...... x,xxx x,xxx xxx xx.x (7) Total Competitive Products Attributable Costs x,xxx x,xxx xxx xx.x (8) Net Contribution Competitive Products Market Tests ...... x,xxx x,xxx xxx xx.x (9) Net Income Before Institutional Cost Contribu- tion ...... x,xxx x,xxx xxx ...... (10) Required Institutional Cost Contribution ...... x,xxx x,xxx xxx x.x.x (11) Net Income (Loss) Before Tax ...... x,xxx x,xxx xxx xx.x (12) Assumed Federal Income Tax ...... x,xxx x,xxx xxx xx.x (13) Net Income (Loss) After Tax ...... x,xxx x,xxx xxx xx.x

Line (1): Total revenues from Competitive Products volumes and Ancillary Services. Line (2): Income provided from investment of surplus Competitive Products revenues. Line (3): Sum total of revenues from Competitive Products volumes, services, and investments. Line (4): Total Competitive Products volume-variable costs as shown in the Cost and Revenue Analysis (CRA) report. Line (5): Total Competitive Products product-specific costs as shown in the CRA report. Line (6): Inframarginal costs calculated as part of total Competitive Products incremental costs as shown in ACR Library Ref- erence ‘‘Competitive Product Incremental and Group Specific Costs’’ (Currently NP10). Line (7): Sum total of Competitive Products costs (sum of lines 4, 5, and 6). Line (8) Net Contribution Competitive Products Market Tests as shown in the Annual Compliance Report. Line (9): Difference between Competitive Products total revenues and attributable costs and Market Tests Contributions (line 3 less line 7 plus line 8). Line (10): Minimum amount of Institutional cost contribution required under 39 CFR 3015.7 of this chapter. Line (11): Line 9 less line 10. Line (12): Total assumed Federal income tax as calculated under 39 CFR 3060.40. Line (13): Line 11 less line 12.

[73 FR 79261, Dec. 24, 2008, as amended at 81 FR 88123, Dec. 7, 2016]

§ 3060.22 Financial status report. The Postal Service shall file a Financial Status Report in the form and content of Table 2, below.

TABLE 2—ANNUAL SUMMARY OF COMPETITIVE PRODUCTS FINANCIALS—PRC FORM CP–02 [$ in 000s]

Beginning value Change from prior year Ending value

(1) Cumulative Net Income (Loss) After As- sumed Federal Income Tax.

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TABLE 2—ANNUAL SUMMARY OF COMPETITIVE PRODUCTS FINANCIALS—PRC FORM CP–02— Continued [$ in 000s]

Beginning value Change from prior year Ending value

(2) Total Financial Obligations (List of Financial Obligations). (3) Total Financial Investments (List of Finan- cial Investments).

Line 1: Beginning Value: Sum total of Net Income (Loss) as of October 1 of Reportable Fiscal Year. Change from Prior Year: Amount of Net Income (Loss) of Reportable Fiscal Year. Ending Value: Sum of Beginning Value and the Change from Prior Year. Line 2: Beginning Value: Sum total of Financial Obligations as of October 1 of Reportable Fiscal Year. Change from Prior Year: Amount of Net Financial Obligations of Reportable Fiscal Year. Ending Value: Sum of Beginning Value and the Change from Prior Year. Line 3: Beginning Value: Sum total of Financial Investments as of October 1 of Reportable Fiscal Year. Change from Prior Year: Amount of Net Financial Investments of Reportable Fiscal Year. Ending Value: Sum of Beginning Value and the Change from Prior Year.

§ 3060.23 Identified property and equipment assets report. The Postal Service shall file an Identified Property and Equipment Assets Re- port in the form and content of Table 3, below.

TABLE 3—COMPETITIVE PRODUCTS PROPERTY AND EQUIPMENT ASSETS—PRC FORM CP–03 [$ in 000s]

Finance Asset Asset Accumulated Net book Finance No. location identifier description Cost depreciation value

Total ...... $x,xxx $x,xxx $x,xxx

§ 3060.24 Competitive products fund § 3060.30 Statement of allocated assets report. and liabilities for competitive prod- Within 90 days of the close of each ucts. fiscal year the Postal Service will pro- (a) The Postal Service shall file a vide the most recent report of the ac- Statement of Allocated Assets and Li- tivity of the Competitive Products abilities for Competitive Products in Fund as provided to the Secretary of the form and content of Table 4, below. the Treasury under 39 U.S.C. 2011(i)(1).

TABLE 4—STATEMENT OF ALLOCATED ASSETS AND LIABILITIES FOR COMPETITIVE PRODUCTS—PRC FORM CP–04 [$ in millions]

FY20XX FY 20XX–1 USPS annual competitive competitive Distributed on report products products basis of:

Total net assets Cash and Cash Equivalents ...... $x,xxx $x,xxx $x,xxx Net Accounts Receivable ...... x,xxx x,xxx x,xxx Supplies, Advances and Prepayments ...... x,xxx x,xxx x,xxx Appropriations Receivable—Revenue Forgone ...... x,xxx x,xxx x,xxx

Total Current Assets ...... x,xxx x,xxx x,xxx Property and Equipment: Buildings ...... x,xxx x,xxx x,xxx Leasehold Improvements ...... x,xxx x,xxx x,xxx Equipment ...... x,xxx x,xxx x,xxx Land ...... x,xxx x,xxx x,xxx Accumulated Depreciation ...... x,xxx x,xxx x,xxx

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TABLE 4—STATEMENT OF ALLOCATED ASSETS AND LIABILITIES FOR COMPETITIVE PRODUCTS—PRC FORM CP–04—Continued [$ in millions]

FY20XX FY 20XX–1 USPS annual competitive competitive Distributed on report products products basis of:

Construction in Progress ...... x,xxx x,xxx x,xxx

Total Property and Equipment, Net ...... x,xxx x,xxx x,xxx

Total Assets ...... $x,xxx $x,xxx $x,xxx

Total Assets Determined from 39 U.S.C. 2011(e)(5) ...... $x,xxx $x,xxx $x,xxx

Total net liabilities Liabilities Current Liabilities: Compensation and Benefits ...... x,xxx x,xxx x,xxx Payables and Accrued Expenses ...... x,xxx x,xxx x,xxx Customer Deposit Accounts ...... x,xxx x,xxx x,xxx Deferred Revenue-Prepaid Postage ...... x,xxx x,xxx x,xxx Outstanding Postal Money Orders ...... x,xxx x,xxx x,xxx Prepaid Box Rent and Other Deferred Revenue ...... x,xxx x,xxx x,xxx Debt ...... x,xxx x,xxx x,xxx Non-Current Liabilities: ...... x,xxx x,xxx x,xxx Workers’ Compensation ...... x,xxx x,xxx x,xxx Employees Accumulated Leave ...... x,xxx x,xxx x,xxx Deferred Appropriation and Other Rev- enue ...... Long-Term Portion of Capital Lease Obli- gations ...... x,xxx x,xxx x,xxx Deferred Gains on Sales of Property ...... x,xxx x,xxx x,xxx Contingent Liabilities and Other ...... x,xxx x,xxx x,xxx

Total Liabilities ...... x,xxx x,xxx x,xxx

(b) The Statement of Allocated As- oretical competitive products enter- sets and Liabilities for Competitive prise at the section 11 (regular) or sec- Products shall detail the analysis and tion 55(b)(1)(B) (Alternative Minimum selection of methods of allocation of Tax) tax rates, as applicable. total assets and liabilities to the com- (b) The end of the fiscal year for the petitive products. annual calculation of the assumed Fed- eral income tax on competitive prod- § 3060.31 Initial filing. ucts income shall be September 30. The due date for filing the initial (c) The calculation of the assumed Statement of Allocated Assets and Li- Federal income tax due shall be sub- abilities for Competitive Products is 90 mitted to the Commission no later days after the close of FY 2010. than the January 15 following the close of the fiscal year referenced in para- § 3060.40 Calculation of the assumed Federal income tax. graph (b) of this section, except that a one-time extension of 6 months, until (a) The assumed Federal income tax July 15, 2009, shall be permitted for the on competitive products income shall calculation of the assumed Federal in- be based on the Postal Service theo- come tax due for fiscal year end Sep- retical competitive products enterprise tember 30, 2008. income statement for the relevant year and must be calculated in compliance (d) No estimated Federal income with chapter 1 of the Internal Revenue taxes need to be calculated or paid. Code by computing the tax liability on (e) No state, local, or foreign income the taxable income from the competi- taxes need to be calculated or paid. tive products of the Postal Service the-

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§ 3060.41 Supporting documentation. pleading, the Commission may order (a) In support of its calculation of the such action as it deems appropriate. assumed Federal income tax, the Post- § 3060.43 Annual transfer from com- al Service shall file detailed schedules petitive products fund to Postal reporting the Postal Service theo- Service fund. retical competitive products enterprise assumed taxable income, effective tax (a) The Postal Service must on an an- rate, and tax due. nual basis transfer the assumed Fed- (b) Adjustments made to book in- eral income tax due on competitive come, if any, to arrive at the assumed products income from the Competitive taxable income for any year shall be Products Fund to the Postal Service submitted to the Commission no later Fund. than January 15 of the following year. (b) If the assumed taxable income from competitive products for a given § 3060.42 Commission review. fiscal year is positive, the assumed (a) Interested persons shall be pro- Federal income tax due, calculated vided an opportunity to comment on pursuant to § 3060.40, shall be trans- the filing of the calculation of the as- ferred to the Postal Service Fund no sumed Federal income tax and sup- later than the January 15 following the porting documentation. close of the relevant fiscal year. (b) The Commission will review the (c) A one-time extension of 6 months, calculation of the assumed Federal in- until July 15, 2009, shall be permitted come tax submitted pursuant to for the transfer of the assumed Federal § 3060.40, the supporting documentation income tax due for fiscal year ending submitted pursuant to § 3060.41, and any September 30, 2008. comments. The Commission then will (d) If assumed taxable income from issue an order either approving the cal- competitive products for a given fiscal culation of the assumed Federal in- year is negative, and: come tax for that tax year or take such (1) A payment was made to the Post- other action as the Commission deems al Service Fund for the previous tax appropriate, including, but not limited year, a transfer equaling the lesser of to, directing the Postal Service to file the amount paid into the Postal Serv- additional supporting materials. ice Fund for the past 2 tax years or the (c) The Commission will issue such amount of the hypothetical tax on the order no later than 6 months after the loss shall be made from the Postal Postal Service’s filing pursuant to Service Fund to the Competitive Prod- § 3060.40. ucts Fund no later than the January 15 (d) Notwithstanding paragraph (b) of following the close of the relevant fis- this section, if the Commission deter- cal year; or mines within 3 years of its submission (2) No payment has been made into that the Postal Service’s calculation of the Postal Service Fund for the pre- an assumed Federal income tax is in- vious 2 tax years, the loss may be car- complete, inaccurate, or otherwise de- ried forward and offset against any cal- ficient, the Commission will notify the culated assumed Federal taxable in- Postal Service in writing and provide it come on competitive products income with an opportunity to cure or other- for 20 years. wise explain the deficiency. Upon receipt of the Postal Service’s responsive PARTS 3061–3099 [RESERVED]

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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. Table of CFR Titles and Chapters Alphabetical List of Agencies Appearing in the CFR List of CFR Sections Affected

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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) III Administrative Conference of the United States (Parts 300—399) IV Miscellaneous Agencies (Parts 400—599) VI National Capital Planning Commission (Parts 600—699)

Title 2—Grants and Agreements

SUBTITLE A—OFFICE OF MANAGEMENT AND BUDGET GUIDANCE FOR GRANTS AND AGREEMENTS I Office of Management and Budget Governmentwide Guidance for Grants and Agreements (Parts 2—199) II Office of Management and Budget Guidance (Parts 200—299) SUBTITLE B—FEDERAL AGENCY REGULATIONS FOR GRANTS AND AGREEMENTS III Department of Health and Human Services (Parts 300—399) IV Department of Agriculture (Parts 400—499) VI Department of State (Parts 600—699) VII Agency for International Development (Parts 700—799) VIII Department of Veterans Affairs (Parts 800—899) IX Department of Energy (Parts 900—999) X Department of the Treasury (Parts 1000—1099) XI Department of Defense (Parts 1100—1199) XII Department of Transportation (Parts 1200—1299) XIII Department of Commerce (Parts 1300—1399) XIV Department of the Interior (Parts 1400—1499) XV Environmental Protection Agency (Parts 1500—1599) XVIII National Aeronautics and Space Administration (Parts 1800— 1899) XX United States Nuclear Regulatory Commission (Parts 2000—2099) XXII Corporation for National and Community Service (Parts 2200— 2299) XXIII Social Security Administration (Parts 2300—2399) XXIV Department of Housing and Urban Development (Parts 2400— 2499) XXV National Science Foundation (Parts 2500—2599) XXVI National Archives and Records Administration (Parts 2600—2699)

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XXVII Small Business Administration (Parts 2700—2799) XXVIII Department of Justice (Parts 2800—2899) XXIX Department of Labor (Parts 2900—2999) XXX Department of Homeland Security (Parts 3000—3099) XXXI Institute of Museum and Library Services (Parts 3100—3199) XXXII National Endowment for the Arts (Parts 3200—3299) XXXIII National Endowment for the Humanities (Parts 3300—3399) XXXIV Department of Education (Parts 3400—3499) XXXV Export-Import Bank of the United States (Parts 3500—3599) XXXVI Office of National Drug Control Policy, Executive Office of the President (Parts 3600—3699) XXXVII Peace Corps (Parts 3700—3799) LVIII Election Assistance Commission (Parts 5800—5899) LIX Gulf Coast Ecosystem Restoration Council (Parts 5900—5999)

Title 3—The President

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

Title 4—Accounts

I Government Accountability Office (Parts 1—199)

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) IV Office of Personnel Management and Office of the Director of National Intelligence (Parts 1400—1499) 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 (Parts 2100—2199) XIV Federal Labor Relations Authority, General Counsel of the Fed- eral Labor Relations Authority and Federal Service Impasses Panel (Parts 2400—2499) XVI Office of Government Ethics (Parts 2600—2699) XXI Department of the Treasury (Parts 3100—3199) XXII Federal Deposit Insurance Corporation (Parts 3200—3299) XXIII Department of Energy (Parts 3300—3399) XXIV Federal Energy Regulatory Commission (Parts 3400—3499) XXV Department of the Interior (Parts 3500—3599) XXVI Department of Defense (Parts 3600—3699)

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XXVIII Department of Justice (Parts 3800—3899) 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 (Parts 4300—4399) XXXIV Securities and Exchange Commission (Parts 4400—4499) XXXV Office of Personnel Management (Parts 4500—4599) XXXVI Department of Homeland Security (Parts 4600—4699) XXXVII Federal Election Commission (Parts 4700—4799) XL Interstate Commerce Commission (Parts 5000—5099) XLI Commodity Futures Trading Commission (Parts 5100—5199) XLII Department of Labor (Parts 5200—5299) XLIII National Science Foundation (Parts 5300—5399) XLV Department of Health and Human Services (Parts 5500—5599) XLVI Postal Rate Commission (Parts 5600—5699) XLVII Federal Trade Commission (Parts 5700—5799) XLVIII Nuclear Regulatory Commission (Parts 5800—5899) XLIX Federal Labor Relations Authority (Parts 5900—5999) L Department of Transportation (Parts 6000—6099) LII Export-Import Bank of the United States (Parts 6200—6299) LIII Department of Education (Parts 6300—6399) LIV Environmental Protection Agency (Parts 6400—6499) LV National Endowment for the Arts (Parts 6500—6599) LVI National Endowment for the Humanities (Parts 6600—6699) LVII General Services Administration (Parts 6700—6799) LVIII Board of Governors of the Federal Reserve System (Parts 6800— 6899) LIX National Aeronautics and Space Administration (Parts 6900— 6999) LX United States Postal Service (Parts 7000—7099) LXI National Labor Relations Board (Parts 7100—7199) LXII Equal Employment Opportunity Commission (Parts 7200—7299) LXIII Inter-American Foundation (Parts 7300—7399) LXIV Merit Systems Protection Board (Parts 7400—7499) LXV Department of Housing and Urban Development (Parts 7500— 7599) LXVI National Archives and Records Administration (Parts 7600—7699) LXVII Institute of Museum and Library Services (Parts 7700—7799) LXVIII Commission on Civil Rights (Parts 7800—7899) LXIX Tennessee Valley Authority (Parts 7900—7999) LXX Court Services and Offender Supervision Agency for the District of Columbia (Parts 8000—8099) LXXI Consumer Product Safety Commission (Parts 8100—8199) LXXIII Department of Agriculture (Parts 8300—8399)

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LXXIV Federal Mine Safety and Health Review Commission (Parts 8400—8499) LXXVI Federal Retirement Thrift Investment Board (Parts 8600—8699) LXXVII Office of Management and Budget (Parts 8700—8799) LXXX Federal Housing Finance Agency (Parts 9000—9099) LXXXIII Special Inspector General for Afghanistan Reconstruction (Parts 9300—9399) LXXXIV Bureau of Consumer Financial Protection (Parts 9400—9499) LXXXVI National Credit Union Administration (Parts 9600—9699) XCVII Department of Homeland Security Human Resources Manage- ment System (Department of Homeland Security—Office of Personnel Management) (Parts 9700—9799) XCVIII Council of the Inspectors General on Integrity and Efficiency (Parts 9800—9899) XCIX Military Compensation and Retirement Modernization Commis- sion (Parts 9900—9999) C National Council on Disability (Parts 10000—10049)

Title 6—Domestic Security

I Department of Homeland Security, Office of the Secretary (Parts 1—199) X Privacy and Civil Liberties Oversight Board (Parts 1000—1099)

Title 7—Agriculture

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

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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) XXV Office of Advocacy and Outreach, Department of Agriculture (Parts 2500—2599) 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 Policy and New Uses, Department of Agri- culture (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) XXXIII Office of Transportation, Department of Agriculture (Parts 3300—3399) XXXIV National Institute of Food and 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)

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I Department of Homeland Security (Immigration and Naturaliza- tion) (Parts 1—499) V Executive Office for Immigration Review, Department of Justice (Parts 1000—1399)

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) XIII Nuclear Waste Technical Review Board (Parts 1300—1399) XVII Defense Nuclear Facilities Safety Board (Parts 1700—1799) XVIII Northeast Interstate Low-Level Radioactive Waste Commission (Parts 1800—1899)

Title 11—Federal Elections

I Federal Election Commission (Parts 1—9099) II Election Assistance Commission (Parts 9400—9499)

Title 12—Banks and Banking

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) X Bureau of Consumer Financial Protection (Parts 1000—1099) XI Federal Financial Institutions Examination Council (Parts 1100—1199) XII Federal Housing Finance Agency (Parts 1200—1299)

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XIII Financial Stability Oversight Council (Parts 1300—1399) XIV Farm Credit System Insurance Corporation (Parts 1400—1499) XV Department of the Treasury (Parts 1500—1599) XVI Office of Financial Research (Parts 1600—1699) 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—1199) 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) 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)

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XI National Technical Information Service, Department of Com- merce (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) [Reserved]

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 U.S. Customs and Border Protection, Department of Homeland Security; Department of the Treasury (Parts 0—199) II United States International Trade Commission (Parts 200—299) III International Trade Administration, Department of Commerce (Parts 300—399) IV U.S. Immigration and Customs Enforcement, Department of Homeland Security (Parts 400—599) [Reserved]

Title 20—Employees’ Benefits

I Office of Workers’ Compensation Programs, Department of Labor (Parts 1—199) II Railroad Retirement Board (Parts 200—399)

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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 Office of Workers’ Compensation Programs, 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 Service, 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) XIII Millennium Challenge Corporation (Parts 1300—1399) 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) 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)

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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) XII Office of Inspector General, Department of Housing and Urban Development (Parts 2000—2099) XV Emergency Mortgage Insurance and Loan Programs, Depart- ment of Housing and Urban Development (Parts 2700—2799) [Reserved] XX Office of Assistant Secretary for Housing—Federal Housing Commissioner, Department of Housing and Urban Develop- ment (Parts 3200—3899)

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XXIV Board of Directors of the HOPE for Homeowners Program (Parts 4000—4099) [Reserved] 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—899) V Bureau of Indian Affairs, Department of the Interior, and Indian Health Service, Department of Health and Human Services (Parts 900—999) 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 (Parts 1200—1299)

Title 26—Internal Revenue

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

Title 27—Alcohol, Tobacco Products and Firearms

I Alcohol and Tobacco Tax and Trade Bureau, Department of the Treasury (Parts 1—399) 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) XI Department of Justice and Department of State (Parts 1100— 1199)

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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 Bureau of Safety and Environmental Enforcement, Department of the Interior (Parts 200—299) IV Geological Survey, Department of the Interior (Parts 400—499) V Bureau of Ocean Energy Management, Department of the Inte- rior (Parts 500—599) VII Office of Surface Mining Reclamation and Enforcement, Depart- ment of the Interior (Parts 700—999) XII Office of Natural Resources Revenue, Department of the Interior (Parts 1200—1299)

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) IV Secret Service, Department of the Treasury (Parts 400—499) V Office of Foreign Assets Control, Department of the Treasury (Parts 500—599)

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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 Investment Security, Department of the Treasury (Parts 800—899) IX Federal Claims Collection Standards (Department of the Treas- ury—Department of Justice) (Parts 900—999) X Financial Crimes Enforcement Network, Department of the Treasury (Parts 1000—1099)

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) XVII Office of the Director of National Intelligence (Parts 1700—1799) 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 Homeland Security (Parts 1—199) II Corps of Engineers, Department of the Army, Department of De- fense (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)

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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 Career, Technical and Adult Education, Department of Education (Parts 400—499) V Office of Bilingual Education and Minority Languages Affairs, Department of Education (Parts 500—599) [Reserved] VI Office of Postsecondary Education, Department of Education (Parts 600—699) VII Office of Educational Research and Improvement, Department of Education (Parts 700—799) [Reserved] SUBTITLE C—REGULATIONS RELATING TO EDUCATION XI (Parts 1100—1199) [Reserved] XII National Council on Disability (Parts 1200—1299)

Title 35 [Reserved]

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) VI [Reserved] 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 (Parts 1500—1599) 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 U.S. Copyright Office, Library of Congress (Parts 200—299) III Copyright Royalty Board, Library of Congress (Parts 300—399) IV National Institute of Standards and Technology, Department of Commerce (Parts 400—599)

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I Department of Veterans Affairs (Parts 0—199) II Armed Forces Retirement Home (Parts 200—299)

Title 39—Postal Service

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

Title 40—Protection of Environment

I Environmental Protection Agency (Parts 1—1099) 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) VIII Gulf Coast Ecosystem Restoration Council (Parts 1800—1899)

Title 41—Public Contracts and Property Management

SUBTITLE A—FEDERAL PROCUREMENT REGULATIONS SYSTEM [NOTE] 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) 62—100 [Reserved] 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) 103—104 [Reserved] 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) 129—200 [Reserved] SUBTITLE D—OTHER PROVISIONS RELATING TO PROPERTY MANAGE- MENT [RESERVED]

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SUBTITLE E—FEDERAL INFORMATION RESOURCES MANAGEMENT REGULATIONS SYSTEM [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) 302 Relocation Allowances (Parts 302–1—302–99) 303 Payment of Expenses Connected with the Death of Certain Em- ployees (Part 303–1—303–99) 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) II—III [Reserved] IV Centers for Medicare & Medicaid Services, Department of Health and Human Services (Parts 400—699) V Office of Inspector General-Health Care, Department of Health and Human Services (Parts 1000—1099)

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 400— 999) II Bureau of Land Management, Department of the Interior (Parts 1000—9999) III Utah Reclamation Mitigation and Conservation Commission (Parts 10000—10099)

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)

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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) VI National Science Foundation (Parts 600—699) VII Commission on Civil Rights (Parts 700—799) VIII Office of Personnel Management (Parts 800—899) IX Denali Commission (Parts 900—999) 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 Administration for Children and Families, 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 of Fine Arts (Parts 2100—2199) XXIII Arctic Research Commission (Parts 2300—2399) 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 Homeland Security (Parts 1—199) II Maritime Administration, Department of Transportation (Parts 200—399) III Coast Guard (Great Lakes Pilotage), Department of Homeland Security (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)

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IV National Telecommunications and Information Administration, Department of Commerce, and National Highway Traffic Safe- ty Administration, Department of Transportation (Parts 400— 499) V The First Responder Network Authority (Parts 500—599)

Title 48—Federal Acquisition Regulations System

1 Federal Acquisition Regulation (Parts 1—99) 2 Defense Acquisition Regulations System, 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) 7 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 Benefits 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) 30 Department of Homeland Security, Homeland Security Acquisi- tion Regulation (HSAR) (Parts 3000—3099) 34 Department of Education Acquisition Regulation (Parts 3400— 3499) 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) [Reserved]

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54 Defense Logistics Agency, Department of Defense (Parts 5400— 5499) 57 African Development Foundation (Parts 5700—5799) 61 Civilian Board of Contract Appeals, General Services Adminis- tration (Parts 6100—6199) 99 Cost Accounting Standards Board, Office of Federal Procure- ment Policy, Office of Management and Budget (Parts 9900— 9999)

Title 49—Transportation

SUBTITLE A—OFFICE OF THE SECRETARY OF TRANSPORTATION (PARTS 1—99) SUBTITLE B—OTHER REGULATIONS RELATING TO TRANSPORTATION I Pipeline and Hazardous Materials Safety Administration, De- partment 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 Homeland Security (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 (Parts 1000—1399) XI Research and Innovative Technology Administration, Depart- ment of Transportation (Parts 1400—1499) [Reserved] XII Transportation Security Administration, Department of Home- land Security (Parts 1500—1699)

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)

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VI Fishery Conservation and Management, National Oceanic and Atmospheric Administration, Department of Commerce (Parts 600—699)

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CFR Title, Subtitle or Agency Chapter Administrative Committee of the Federal Register 1, I Administrative Conference of the United States 1, III Advisory Council on Historic Preservation 36, VIII Advocacy and Outreach, Office of 7, XXV Afghanistan Reconstruction, Special Inspector General for 5, LXXXIII African Development Foundation 22, XV Federal Acquisition Regulation 48, 57 Agency for International Development 2, VII; 22, II Federal Acquisition Regulation 48, 7 Agricultural Marketing Service 7, I, IX, X, XI Agricultural Research Service 7, V Agriculture, Department of 2, IV; 5, LXXIII Advocacy and Outreach, Office of 7, XXV 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 Economic Research Service 7, XXXVII Energy Policy and New Uses, Office of 2, IX; 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 National Institute of Food and Agriculture 7, XXXIV 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 of 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

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