[Title 39 CFR ]
[Code of Federal Regulations (annual edition) - July 1, 2012 Edition]
[From the U.S. Government Printing Office]



[[Page i]]

          

          Title 39

Postal Service

                         Revised as of July 1, 2012

          Containing a codification of documents of general 
          applicability and future effect

          As of July 1, 2012
                    Published by the Office of the Federal Register 
                    National Archives and Records Administration as a 
                    Special Edition of the Federal Register

[[Page ii]]

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                            Table of Contents



                                                                    Page
  Explanation.................................................       v

  Title 39:
          Chapter I--United States Postal Service                    3
          Chapter III--Postal Regulatory Commission                349
  Finding Aids:
      Table of CFR Titles and Chapters........................     473
      Alphabetical List of Agencies Appearing in the CFR......     493
      List of CFR Sections Affected...........................     503

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                     ----------------------------

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

                     ----------------------------

[[Page v]]



                               EXPLANATION

    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 subdivided 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, 2012), 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

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Register since the last revision of that volume of the Code. Source 
citations for the regulations are referred to by volume number and page 
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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.

[[Page vi]]

Many agencies have begun publishing numerous OMB control numbers as 
amendments to existing regulations in the CFR. These OMB numbers are 
placed as close as possible to the applicable recordkeeping or reporting 
requirements.

OBSOLETE PROVISIONS

    Provisions that become obsolete before the revision date stated on 
the cover of each volume are not carried. Code users may find the text 
of provisions in effect on a given date in the past by using the 
appropriate numerical list of sections affected. For the period before 
January 1, 2001, consult either the List of CFR Sections Affected, 1949-
1963, 1964-1972, 1973-1985, or 1986-2000, published in eleven separate 
volumes. For the period beginning January 1, 2001, a ``List of CFR 
Sections Affected'' is published at the end of each CFR volume.

``[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 
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INCORPORATION BY REFERENCE

    What is incorporation by reference? Incorporation by reference was 
established by statute and allows Federal agencies to meet the 
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to materials already published elsewhere. For an incorporation to be 
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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 
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    An index to the text of ``Title 3--The President'' is carried within 
that volume.

[[Page vii]]

    The Federal Register Index is issued monthly in cumulative form. 
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the revision dates of the 50 CFR titles.

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    Charles A. Barth,
    Director,
    Office of the Federal Register.
    July 1, 2012.







[[Page ix]]



                               THIS TITLE

    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, 2012.

    For Chapter I--United States Postal Service, the ``Domestic Mail 
Manual'', the ``Postal Service Publication 42, International Mail'' and 
the ``Postal Contracting Manual, U.S. Postal Service Publication 41'' 
are incorporated by reference.

    For this volume, Bonnie Fritts was Chief Editor. The Code of Federal 
Regulations publication program is under the direction of Michael L. 
White, assisted by Ann Worley.

[[Page 1]]



                        TITLE 39--POSTAL SERVICE




  --------------------------------------------------------------------
                                                                    Part

chapter i--United States Postal Service.....................           1

chapter iii--Postal Regulatory Commission...................        3000

[[Page 3]]



                 CHAPTER I--UNITED STATES POSTAL SERVICE




  --------------------------------------------------------------------

     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 [Article X]...................          22
11              Advisory boards [Article XI]................          23
                    SUBCHAPTER B--INTERNATIONAL MAIL
20              International Postal Service................          24
           SUBCHAPTER C--POST OFFICE SERVICES [DOMESTIC MAIL]
                  GENERAL INFORMATION ON POSTAL SERVICE
111             General information on Postal Service.......          26
121             Service standards for market-dominant mail 
                    products................................          28
122             Service standards for market-dominant 
                    special services products...............          34
              SUBCHAPTER D--ORGANIZATION AND ADMINISTRATION
211             Application of regulations..................          36
221             General organization........................          37
222             Delegations of authority....................          40
223             Relationships and communication channels....          41
                     INSPECTION SERVICE REQUIREMENTS
230             Office of Inspector General.................          42

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231             Protection of post offices..................          49
232             Conduct on postal property..................          49
233             Inspection Service authority................          53
235             Defense Department liaison..................          84
               POST OFFICE ORGANIZATION AND ADMINISTRATION
241             Establishment classification, and 
                    discontinuance..........................          85
242             Change of site..............................          95
243             Conduct of offices..........................          96
                      GENERAL POSTAL ADMINISTRATION
254             Postal Service standards for facility 
                    accessibility pursuant to the 
                    Architectural Barriers Act..............          96
255             Access of persons with disabilities to 
                    Postal Service programs, activities, 
                    facilities, and electronic and 
                    information technology..................          98
259             Services performed for other agencies.......         102
                         RECORDS AND INFORMATION
261             Records and information management..........         104
262             Records and information management 
                    definitions.............................         105
263             Records retention and disposition...........         108
264             Vital records...............................         108
265             Release of information......................         109
266             Privacy of information......................         136
267             Protection of information...................         147
268             Privacy of information--employee rules of 
                    conduct.................................         150
273             Administration of Program Fraud Civil 
                    Remedies Act............................         151
                DAMAGE TO OR DESTRUCTION OF FIRM MAILINGS
281             Firm mailings damaged or destroyed through 
                    transportation accidents or catastrophes         156
        SUBCHAPTER E--RESTRICTIONS ON PRIVATE CARRIAGE OF LETTERS
310             Enforcement of the private express statutes.         157
320             Suspension of the private express statutes..         161
                         SUBCHAPTER F--PERSONNEL
447             Rules of conduct for postal employees.......         168

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491             Garnishment of salaries of employees of the 
                    Postal Service and the Postal Rate 
                    Commission..............................         172
                     SUBCHAPTER G--POSTAGE PROGRAMS
501             Authorization to manufacture and distribute 
                    postage evidencing systems..............         176
551             Semipostal stamp program....................         190
     SUBCHAPTER H--PROCUREMENT SYSTEM FOR THE U.S. POSTAL SERVICE: 
             INTELLECTUAL PROPERTY RIGHTS OTHER THAN PATENTS
601             Purchasing of property and services.........         195
602             Intellectual property rights other than 
                    patents.................................         205
                         SUBCHAPTER I [RESERVED]
SUBCHAPTER J--POSTAL SERVICE DEBT OBLIGATIONS; DISBURSEMENT POSTAL MONEY 
                                 ORDERS
760             Applicability of Treasury Department 
                    regulations.............................         207
761             Book-entry procedures.......................         207
762             Disbursement postal money orders............         210
                 SUBCHAPTER K--ENVIRONMENTAL REGULATIONS
775             National Environmental Policy Act procedures         215
776             Floodplain and wetland procedures...........         225
                    SUBCHAPTER L--SPECIAL REGULATIONS
777             Relocation assistance and real property 
                    acquisition policies....................         230
778             Intergovernmental review of Postal Service 
                    facility actions........................         249
                         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         253
913             Procedures for the issuance of 
                    administrative subpoenas under 39 U.S.C. 
                    3016....................................         256

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916

[Reserved]

        RULES OF PROCEDURE BEFORE THE MAIL PROCESSING DEPARTMENT
927             Rules of procedure relating to fines, 
                    deductions, and damages.................         258
931             Rules of procedure governing the compromise 
                    of obligations..........................         260
         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..         260
             RULES OF PROCEDURE BEFORE THE JUDICIAL OFFICER
951             Procedure governing the eligibility of 
                    persons to practice before the Postal 
                    Service.................................         262
952             Rules of practice in proceedings relative to 
                    false representation and lottery orders.         264
953             Rules of practice in proceedings relative to 
                    mailability.............................         275
954             Rules of practice in proceedings relative to 
                    the denial, suspension, or revocation of 
                    periodicals mail privileges.............         278
955             Rules of practice before the Postal Service 
                    Board of Contract Appeals...............         284
956

[Reserved]

957             Rules of practice in proceedings relative to 
                    debarment and suspension from 
                    contracting.............................         295
958             Rules of practice in proceedings relative to 
                    civil penalties, clean-up costs and 
                    damages for violation of hazardous 
                    material regulations....................         302
959             Rules of practice in proceedings relative to 
                    the private express statutes............         309
960             Rules relative to implementation of the 
                    Equal Access to Justice Act in Postal 
                    Service proceedings.....................         316
961             Rules of practice in proceedings relative to 
                    employee hearing petitions under section 
                    5 of the Debt Collection Act............         323
962             Rules of practice in proceedings relative to 
                    the Program Fraud Civil Remedies Act....         326
963             Rules of practice in proceedings relative to 
                    violations of the pandering 
                    advertisements statute, 39 U.S.C. 3008..         334

[[Page 7]]

964             Rules of practice governing disposition of 
                    mail withheld from delivery pursuant to 
                    39 U.S.C. 3003, 3004....................         338
965             Rules of practice in proceedings relative to 
                    mail disputes...........................         343
966             Rules of practice in proceedings relative to 
                    administrative offsets initiated against 
                    former employees of the Postal Service..         345

[[Page 9]]



     SUBCHAPTER A_THE BOARD OF GOVERNORS OF THE U.S. POSTAL SERVICE





Bylaws of the Board of Governors--Table of Contents





PART 1_POSTAL POLICY (ARTICLE I)--Table of Contents



Sec.
1.1 Establishment of the U.S. Postal Service.
1.2 Delegation of authority.

    Authority: 39 U.S.C. 101, 202, 205, 401(2), 402, 403.

    Source: 73 FR 78983, Dec. 24, 2008, unless otherwise noted.



Sec. 1.1  Establishment of the U.S. Postal Service.

    The U.S. Postal Service is established under the provisions of the 
Postal Reorganization Act (the Reorganization Act) of 1970, Public Law 
91-375, 84 Stat. 719, as amended by the Postal Accountability and 
Enhancement Act of 2006 (PAEA), Public Law 109-435, 120 Stat. 3198, as 
an independent establishment of the executive branch of the Government 
of the United States, under the direction of a Board of Governors, with 
the Postmaster General as its chief executive officer. The Board of 
Governors of the Postal Service (the Board) directs the exercise of its 
powers through management that is expected to be honest, efficient, 
economical, and mindful of the competitive business environment in which 
the Postal Service operates. The Board consists of nine Governors 
appointed by the President, by and with the advice and consent of the 
Senate, to represent the public interest generally, together with the 
Postmaster General and Deputy Postmaster General.



Sec. 1.2  Delegation of authority.

    Except for powers, duties, or obligations specifically vested in the 
Governors by law, the Board may delegate its authority to the Postmaster 
General under such terms, conditions, and limitations, including the 
power of redelegation, as it finds desirable. The bylaws of the Board 
are the framework of the system through which the Board monitors the 
exercise of the authority it has delegated, measures progress toward the 
goals it has set, and shapes the policies to guide the future 
development of the Postal Service. Delegations of authority do not 
relieve the Board of full responsibility for carrying out its duties and 
functions, and are revocable by the Governors in their exclusive 
judgment.



PART 2_GENERAL AND TECHNICAL PROVISIONS (ARTICLE II)--Table of Contents



Sec.
2.1 Office of the Board of Governors.
2.2 Agent for receipt of process.
2.3 Offices
2.4 Seal.
2.5 Authority.
2.6 Severability, amendment, repeal, and waiver of bylaws.

    Authority: 39 U.S.C. 202, 203, 205(c), 207, 401(2); 5 U.S.C. 
552b(f), (g).

    Source: 73 FR 78983, Dec. 24, 2008, unless otherwise noted.



Sec. 2.1  Office of the Board of Governors.

    There shall be located in Washington, DC an Office of the Board of 
Governors of the United States Postal Service. It shall be the function 
of this Office to provide staff support for the Board, as directed by 
the Chairman of the Board, to enable the Board to carry out effectively 
its duties and responsibilities.



Sec. 2.2  Agent for receipt of process.

    The General Counsel of the Postal Service shall act as agent for the 
receipt of legal process against the Postal Service, and as agent for 
the receipt of legal process against the Board of Governors or a member 
of the Board, in his or her official capacity, and all other officers 
and employees of the Postal Service to the extent that the process 
arises out of the official functions of those officers and employees. 
The General Counsel shall also issue public certifications concerning 
closed meetings of the Board as appropriate under 5 U.S.C. 552b(f).

[[Page 10]]



Sec. 2.3  Offices.

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



Sec. 2.4  Seal.

    (a) The Seal of the Postal Service is filed by the Board in the 
Office of the Secretary of State, and is required by 39 U.S.C. 207 to be 
judicially noticed. The Seal shall be in the custody of the General 
Counsel, who shall affix it to all commissions of officers of the Postal 
Service, and use it to authenticate records of the Postal Service and 
for other official purposes. The following describes the Seal adopted 
for the Postal Service:
    (1) A stylized bald eagle is poised for flight, facing to the 
viewer's right, above two horizontal bars between which are the words 
``U.S. MAIL'', surrounded by a square border with rounded corners 
consisting of the words ``UNITED STATES POSTAL SERVICE'' on the left, 
top, and right, and consisting of nine five-pointed stars on the base.
    (2) The color representation of the Seal shows, a white field on 
which the bald eagle appears in dark blue, the words ``U.S. MAIL'' in 
black, the bar above the words in red, the bar below in blue, and the 
entire border consisting of the words ``UNITED STATES POSTAL SERVICE'' 
and stars in ochre.
[GRAPHIC] [TIFF OMITTED] TR24DE08.013

    (b) The location and description of the Postal Service emblem is 
described at 39 CFR 221.7.



Sec. 2.5  Authority.

    These bylaws are adopted by the Board under the authority conferred 
upon the Postal Service by 39 U.S.C. 401(2) and 5 U.S.C. 552b(g).



Sec. 2.6  Severability, amendment, repeal, and waiver of bylaws.

    The invalidity of any provision of these bylaws does not affect the 
validity of the remaining provisions, and for this purpose these bylaws 
are severable. The Board may amend or repeal these bylaws at any special 
or regular meeting, provided that each member of the Board has received 
a written notice containing a statement of the proposed amendment or 
repeal at least 5 days before the meeting. The members of the Board may 
waive the 5 days' notice or the operation of any other provision of 
these bylaws by unanimous consent, if that action is not prohibited by 
law. The Secretary shall submit the text of any amendment to these 
bylaws for publication in the Federal Register as soon as practicable 
after the amendment is adopted by the Board.



PART 3_BOARD OF GOVERNORS (ARTICLE III)--Table of Contents



Sec.
3.1 Composition and responsibilities of Board.
3.2 Compensation of Board.
3.3 Matters reserved for decision by the Board.
3.4 Matters reserved for decision by the Governors.
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. 107-67, 115 Stat. 
514 (2001).

    Source: 73 FR 78983, Dec. 24, 2008, unless otherwise noted.

[[Page 11]]



Sec. 3.1  Composition and responsibilities of Board.

    The composition of the Board is described in 39 U.S.C. 202. The 
Board directs the exercise of the powers of the Postal Service, reviews 
the practices and policies of the Postal Service, and directs and 
controls the expenditures of the Postal Service. Consistent with the 
broad delegation of authority to the Postmaster General in Sec. 3.5 of 
these bylaws, and except for those powers, duties, or obligations which 
are specifically vested by statute in the Governors, as distinguished 
from the Board of Governors, the Board accomplishes its purposes by 
monitoring the operations and performance of the Postal Service, and by 
establishing basic objectives, broad policies, and long-range goals for 
the Postal Service.



Sec. 3.2  Compensation of Board.

    Section 202(a)(1) of title 39 provides for the compensation of the 
Governors and for reimbursement for travel and reasonable expenses 
incurred in attending Board meetings. Compensation is provided for not 
more than 42 days of meetings per year.



Sec. 3.3  Matters reserved for decision by the Board.

    The following matters are reserved for decision by the Board of 
Governors:
    (a) Adoption of, and amendments to, the bylaws of the Board.
    (b) (1) Approval of the annual Postal Service Finance Plan;
    (2) Approval of the annual Postal Service Operating Plan;
    (3) Approval of the annual Postal Service Capital Plan.
    (c) Approval of the annual financial statements of the Postal 
Service following receipt of the annual report of the Postal Service's 
independent, certified public accounting firm.
    (d) Authorization of the Postal Service, in consultation with the 
Postal Regulatory Commission, to establish service standards under 39 
U.S.C. 3691.
    (e) Authorization of the Postal Service to request that the Postal 
Regulatory Commission submit an advisory opinion on a proposed change in 
the nature of postal services which will generally affect service on a 
nationwide or substantially nationwide basis.
    (f) Approval of any use of the authority of the Postal Service to 
borrow money under 39 U.S.C. 2005 and 39 U.S.C. 2011, except for short-
term borrowings, having maturities of one year or less, assumed in the 
normal course of business.
    (g) Approval of the terms and conditions of each series of 
obligations issued by the Postal Service under 39 U.S.C. 2005 and 39 
U.S.C. 2011, including the time and manner of sale and the underwriting 
arrangements, except for short-term borrowings, having maturities of one 
year or less, assumed in the normal course of business.
    (h) Approval of any use of the authority of the Postal Service to 
require the Secretary of the Treasury to purchase Postal Service 
obligations under 39 U.S.C. 2006(b), or to request the Secretary of the 
Treasury to pledge the full faith and credit of the Government of the 
United States for the payment of principal and interest on Postal 
Service obligations under 39 U.S.C. 2006(c).
    (i) Determination of the number of officers, described in 39 U.S.C. 
204 as Assistant Postmasters General, whether so denominated or not, as 
the Board authorizes by resolution.
    (j) Compensation and benefits of officers of the Postal Service 
whose positions are included in Level II of the Postal Career Executive 
Service.
    (k) Approval of official statements adopting major policy positions 
or departing from established major policy positions, and of official 
positions on legislative proposals having a major impact on the Postal 
Service.
    (l) Approval of all major policy positions taken with the Department 
of Justice on petitioning the Supreme Court of the United States for 
writs of certiorari.
    (m) Approval and transmittal to the President and the Congress of 
the annual report of the Postmaster General under 39 U.S.C. 2402.
    (n) Approval and transmittal to the Congress of the annual report of 
the Board under 5 U.S.C. 552b(j).
    (o) Approval of the annual comprehensive statement of the Postal 
Service to Congress under 39 U.S.C. 2401(e).
    (p) Approval and transmittal to the Congress of the semi-annual 
report of

[[Page 12]]

the Postmaster General under 39 U.S.C. 3013, summarizing the 
investigative activities of the Postal Service.
    (q) Approval and transmittal to the President and the Congress of 
the Postal Service's strategic plan pursuant to the Government 
Performance and Results Act of 1993, 39 U.S.C. 2802; approval of the 
Postal Service annual performance plan under 39 U.S.C. 2803 and the 
Postal Service program performance report under 39 U.S.C. 2804, which 
are included in the comprehensive statement under 39 U.S.C. 2401.
    (r) All other matters that the Board may consider appropriate to 
reserve for its decision.



Sec. 3.4  Matters reserved for decision by the Governors.

    The following matters are reserved for decision by the Governors:
    (a) Appointment, pay, term of service, and removal of the Postmaster 
General, 39 U.S.C. 202(c).
    (b) Appointment, term of service, and removal of the Deputy 
Postmaster General (by the Governors and the Postmaster General, 39 
U.S.C. 202(d)); pay of the Deputy Postmaster General, 39 U.S.C. 202(d).
    (c) Election of the Chairman, 39 U.S.C. 202(a)(1), and Vice Chairman 
of the Board of Governors.
    (d) Establishment of rates and classes of competitive products of 
both general and not of general applicability under 39 U.S.C. 3632 in 
accordance with the procedures set out in sections 3.9 and 3.10 of these 
bylaws.
    (e) Authorization of the Postal Service to adjust the rates and fees 
for market dominant products under 39 U.S.C. 3622.
    (f) Authorization of the Postal Service to request that the Postal 
Regulatory Commission, under 39 U.S.C. 3642, change the lists of market 
dominant and competitive products by adding a product, removing a 
product, or transferring a product.
    (g) Authorization of the Postal Service to file a notice with the 
Postal Regulatory Commission of substantive modifications to the product 
descriptions in the Mail Classification Schedule.
    (h) Authorization of the Postal Service to file a request with the 
Postal Regulatory Commission for adjustment of rates on an expedited 
basis due to extraordinary or exceptional circumstances, as provided in 
39 U.S.C. 3622(d)(1)(E).
    (i) Appointment and removal of the Inspector General under 39 U.S.C. 
202(e).
    (j) Exercise of the authority of the Governors under 5 U.S.C. App. 
8G(f)(3)(A).
    (k) The Governors shall meet annually in closed session to discuss 
compensation and benefits, term of service, and appointment/removal of 
the Board Secretary and other necessary staff.
    (l) Transmittal to the Congress of the semi-annual report of the 
Inspector General under section 5 of the Inspector General Act.
    (m) Establishment of the price of the breast cancer research special 
postage stamp under 39 U.S.C. 414 and any semipostal stamp under 39 
U.S.C. 416.
    (n) Selection of an independent, certified public accounting firm to 
certify the accuracy of Postal Service financial statements as required 
by 39 U.S.C. 2008(e).



Sec. 3.5  Delegation of authority by Board.

    As authorized by 39 U.S.C. 402, these bylaws delegate to the 
Postmaster General the authority to exercise the powers of the Postal 
Service to the extent that this delegation of authority does not 
conflict with powers reserved to the Governors or to the Board by law, 
these bylaws, or resolutions adopted by the Board. Any of the powers 
delegated to the Postmaster General by these bylaws may be redelegated 
by the Postmaster General to any officer, employee, or agency of the 
Postal Service.



Sec. 3.6  Information furnished to Board--financial and operating 
reports.

    (a) To enable the Board to monitor the performance of the Postal 
Service during the most recent accounting periods for which data are 
available, postal management shall furnish the Board (on a monthly 
basis) financial and operating statements for the fiscal year to date, 
addressing the following categories:
    (1) Mail volume by class;
    (2) Income and expense by principal categories;

[[Page 13]]

    (3) Balance sheet information;
    (4) service quality measurements;
    (5) productivity measurements (reflecting workload and resource 
utilization); and
    (6) changes in postal costs.
    (b) These statements shall include, where applicable, comparable 
figures for the previous year and the current year's plan.



Sec. 3.7  Information furnished to Board--program review.

    (a) To enable the Board to review the Postal Service operating 
program, postal management shall furnish the Board information on all 
aspects of the Postal Service budget plan, including:
    (1) The tentative and final annual budgets submitted to the Office 
of Management and Budget and the Congress, and amendments to the budget;
    (2) Five-year plans, annual operating and investment plans, and 
significant departures from estimates upon which the plans were based;
    (3) The need for rate adjustments and the progress of any pending 
matters before the Postal Regulatory Commission and related litigation; 
and
    (4) Debt financing needs, including a review of all borrowings of 
the Postal Service from the U.S. Treasury and private sources.
    (b) To enable the Board to review the effectiveness of the Postal 
Service's equal employment opportunity program, performance data 
relating to this program shall be furnished to the Board at least 
quarterly. These data shall be categorized in such manner as the Board, 
from time to time, specifies.
    (c) Postal management shall also regularly furnish the Board 
information regarding major programs for improving postal service or 
reducing the cost of postal operations.
    (d) Management shall furnish to the Board: information regarding any 
significant, new program, policy, major modification or initiative; any 
plan to offer a significant, new or unique product or system 
implementation; or any significant, new project not related directly to 
the core business function of the Postal Service. This information shall 
be provided to the Board in advance of entering into any agreement in 
furtherance of such project. For the purposes of this paragraph, 
``significant'' means a project anticipated to have a notable or 
conspicuous impact on corporate visibility or the operating budget 
(including increases in expense amounts) or the capital investment 
budget. The notification requirement of this paragraph governs 
applicable projects regardless of the level of expenditure or potential 
liability involved.



Sec. 3.8  Information furnished to Board--special reports.

    To insure that the Board receives significant information of 
developments meriting its attention, postal management shall bring to 
the Board's attention the following matters:
    (a) Major developments in personnel areas, including but not limited 
to equal employment opportunity, career development and training, and 
grade and salary structures.
    (b) Major litigation activities. Postal management shall also notify 
the Board in a timely manner whenever it proposes to seek review by any 
United States Court of Appeals of an adverse judicial or regulatory 
decision significantly impacting the Postal Service or involving a new, 
novel, or potentially controversial issue.
    (c) Any significant changes proposed in the Postal Service's system 
of accounts or methods of accounting.
    (d) Matters of special importance, including but not limited to 
important research and development initiatives, major changes in Postal 
Service organization or structure, major law enforcement activities, and 
other matters having a significant impact upon the relationship of the 
Postal Service with its employees, with any major branch of Government, 
or with the general public.
    (e) Information concerning any proposed grant of unique or exclusive 
licenses to use Postal Service intellectual properties (other than 
patents and technical data rights), or any proposed joint venture 
involving the use of such property.
    (f) Major or significant financial, operational and compliance 
reports or studies the Postal Service is required by statute or 
regulation to prepare.

[[Page 14]]

    (g) Other matters having important policy implications.



Sec. 3.9  Establishment of rates and classes of competitive products of
general applicability.

    This section relates to changes in rates or classes of competitive 
products of general applicability.
    (a) Prior to establishing changes in rates or classes of competitive 
products of general applicability, postal management shall furnish to 
the Governors the following:
    (1) The proposed rate and classification changes; and
    (2) Management analysis demonstrating compliance with the standards 
of 39 U.S.C. 3633(a).
    (b) Pursuant to Sec. 6.6(f) of these bylaws, the Governors shall 
issue a written decision on any changes in rates or classes of 
competitive products of general applicability, which shall include a 
statement as to when the decision becomes effective.
    (c) The Secretary shall certify that the vote of the Governors met 
the condition set forth in section 6.6(f) of these bylaws.
    (d) The Secretary shall cause the decision of the Governors and its 
attached analysis, along with the record of the Governors' proceedings 
in connection with such decision, to be published in the Federal 
Register at least 30 days before the effective date of the changes in 
rates or classes of competitive products of general applicability. The 
record of the proceedings of the Governors consists of the certification 
by the Secretary of the vote of the Governors.



Sec. 3.10.  Establishment of rates and classes of competitive products 
not of general applicability.

    This section relates to changes in rates and classes of competitive 
products not of general applicability.
    (a) Prior to establishing rates or classes of competitive products 
not of general applicability, postal management shall furnish to the 
Governors the following:
    (1) The proposed changes in rates or ranges of rates, along with the 
proposed changes in classes; and
    (2) Management analysis demonstrating compliance with the standards 
of 39 U.S.C. 3633(a).
    (b) Pursuant to Sec. 6.6(f) of these bylaws, the Governors shall 
issue a written decision on any changes in rates or classes of 
competitive products not of general applicability, which shall include a 
statement as to when the decision becomes effective.
    (c) The Secretary shall certify that the vote of the Governors met 
the condition set forth in Sec. 6.6(f) of these bylaws.
    (d) The Secretary shall cause any decision of the Governors under 
this section, along with the record of any proceedings of the Governors, 
and any supporting documentation required by 39 CFR Part 3015, to be 
filed with the Postal Regulatory Commission. The record of the 
proceedings of the Governors consists of the certification by the 
Secretary of the vote of the Governors.
    (e) Postal management is authorized to conclude agreements with 
customers concerning any rates or classes of competitive products not of 
general applicability, provided that any such rates are within the 
range, or such classes are within the scope, of a decision of the 
Governors then in effect.



PART 4_OFFICIALS (ARTICLE IV)--Table of Contents



Sec.
4.1 Chairman.
4.2 Vice Chairman.
4.3 Postmaster General.
4.4 Deputy Postmaster General.
4.5 Assistant Postmasters General, General Counsel, Judicial Officer, 
          Chief Postal Inspector.
4.6 Secretary of the Board.

    Authority: 39 U.S.C. 202-205, 401(2), (10), 402, 1003, 3013, 3686.

    Source: 73 FR 78983, Dec. 24, 2008, unless otherwise noted.



Sec. 4.1  Chairman.

    (a) The Chairman of the Board of Governors is elected by the 
Governors from among the members of the Board. The Chairman:
    (1) Shall be elected at the Board's regularly scheduled November 
meeting for a term that commences on December 1 of the calendar year in 
which the

[[Page 15]]

election occurred, or upon the death, departure or resignation of the 
current Chairman, whichever occurs first, and expires upon the election 
and installation of a successor Chairman;
    (2) Shall preside at all regular and special meetings of the Board, 
and shall set the agenda for such meetings;
    (3) Shall select and appoint the chairman, vice chairman (if any), 
and members of any committee properly established by the Board.
    (b) If the Postmaster General is elected Chairman of the Board, the 
Governors shall also elect one of their number to preside during 
proceedings dealing with matters upon which only the Governors may vote.
    (c) In the event of the Chairman's death, departure or resignation 
prior to the election of a successor, the Board, as soon as practicable, 
shall elect a new Chairman who shall serve a term that commences 
immediately upon election and expires upon the election and installation 
of a successor Chairman.
    (d)(1) Upon the election and installation of a new Chairman of the 
Board, the immediate past Chairman shall become Chairman Pro Tempore of 
the Board, to preside during the absence of the Chairman and Vice 
Chairman at any meeting of the Board during the year or years following 
the immediate past Chairman's tenure as Chairman and until another 
Chairman has been elected.
    (2) The Chairman Pro Tempore shall, at the request of the Chairman 
or Vice Chairman, serve as the representative of the Board of Governors 
at conferences, trade shows, ceremonial functions and other meetings 
important to Postal Service business.

[77 FR 17333, Mar. 26, 2012]



Sec. 4.2  Vice Chairman.

    The Vice Chairman is elected by the Governors from among the members 
of the Board and shall perform the duties and exercise the powers of the 
Chairman during the Chairman's absence or disability. The Vice Chairman 
is elected at the Board's regularly scheduled November meeting for a 
term that commences on December 1 of the calendar year in which the 
election occurred or upon the death, departure or resignation of the 
current Vice Chairman, whichever occurs first, and expires upon the 
election and installation of a successor Vice Chairman. In the event of 
the Vice Chairman's death, departure or resignation prior to the 
election of a successor, the Board, as soon as practicable, shall elect 
a new Vice Chairman who shall serve a term that commences immediately 
upon election and expires upon the election and installation of a 
successor Vice Chairman.

[77 FR 17333, Mar. 26, 2012]



Sec. 4.3  Postmaster General.

    The appointment and role of the Postmaster General are described at 
39 U.S.C. 202(c), 203. The Governors set the compensation and benefits 
of the Postmaster General by resolution, subject to 39 U.S.C. 1003(a) 
and 3686.



Sec. 4.4  Deputy Postmaster General.

    The appointment and role of the Deputy Postmaster General are 
described at 39 U.S.C. 202(d), 203. The Deputy Postmaster General shall 
act as Postmaster General during the Postmaster General's absence or 
disability, and when a vacancy exists in the office of Postmaster 
General. The Governors set the compensation and benefits of the Deputy 
Postmaster General, subject to 39 U.S.C. 1003(a) and 3686.



Sec. 4.5  Assistant Postmasters General, General Counsel, Judicial 
Officer, Chief Postal Inspector.

    There are within the Postal Service a General Counsel, a Judicial 
Officer, a Chief Postal Inspector, and such number of officers, 
described in 39 U.S.C. 204 as Assistant Postmasters General, whether so 
denominated or not, as the Board authorizes by resolution. These 
officers are appointed by, and serve at the pleasure of, the Postmaster 
General. The Chief Postal Inspector shall report to, and be under the 
general supervision of, the Postmaster General. The Postmaster General 
shall promptly notify the Governors and both Houses of Congress in 
writing if he or she removes the Chief Postal Inspector or transfers the 
Chief Postal Inspector to another position or location within the Postal 
Service, and shall include in

[[Page 16]]

any such notification the reasons for such removal or transfer.



Sec. 4.6  Secretary of the Board.

    The Secretary of the Board of Governors is appointed by the 
Governors and serves at the pleasure of the Governors. The Secretary 
shall be responsible for carrying out the functions of the Office of the 
Board of Governors, under the direction of the Chairman of the Board. 
The Secretary shall also issue notices of meetings of the Board and its 
committees, keep minutes of these meetings, and take steps necessary for 
compliance with all statutes and regulations dealing with public 
observation of meetings. The Secretary shall perform all those duties 
incident to this office, including those duties assigned by the Board or 
by the Chairman of the Board. The Chairman may designate such assistant 
secretaries as may be necessary to perform any of the duties of the 
Secretary.



PART 5_COMMITTEES (ARTICLE V)--Table of Contents



Sec.
5.1 Establishment and appointment.
5.2 Committee procedure.

    Authority: 39 U.S.C. 202, 203, 204, 205, 401(2), (10), 1003.

    Source: 73 FR 78983, Dec. 24, 2008, unless otherwise noted.



Sec. 5.1  Establishment and appointment.

    From time to time the Board may establish by resolution special and 
standing committees of one or more members of the Board. The Board shall 
specify, in the resolution establishing any committee, whether the 
committee is authorized to submit recommendations or preliminary 
decisions to the Board, to conduct hearings for the Board, or otherwise 
to take action on behalf of the Board. Each committee may exercise only 
those duties, functions, and powers prescribed from time to time by the 
Board, and the Board may affirm, alter, or revoke any action of any 
committee. Each member of the Board may have access to all of the 
information and records of any committee at any time. The Chairman of 
the Board shall appoint the chairman, vice chairman (if any), and 
members of each committee, who serve terms which expire at the end of 
each annual meeting. Each committee chairman may assign responsibilities 
to members of the committee that are considered appropriate. The 
committee chairman, or the chairman's designee, shall preside at all 
meetings of the committee.



Sec. 5.2  Committee procedure.

    Each committee establishes its own rules of procedure, consistent 
with these bylaws, and meets as provided in its rules. A majority of the 
members of a committee constitute a quorum.



PART 6_MEETINGS (ARTICLE VI)--Table of Contents



Sec.
6.1 Regular meetings, annual meeting.
6.2 Special meetings.
6.3 Notice of meetings.
6.4 Attendance by conference telephone call.
6.5 Minutes of meetings.
6.6 Quorum and voting.
6.7 Notation voting.

    Authority: 39 U.S.C. 202, 205, 401(2), (10), 1003, 3622, 3632; 5 
U.S.C. 552b(e), (g).

    Source: 73 FR 78983, Dec. 24, 2008, unless otherwise noted.



Sec. 6.1  Regular meetings, annual meeting.

    The Board shall meet regularly on a schedule established by the 
Board. The first regular meeting of each calendar year is designated as 
the annual meeting. Consistent with the provisions of Sec. Sec. 6.6 and 
7.5 of these bylaws, the time or place of a regular or annual meeting 
may be varied by recorded vote, with the earliest practicable notice to 
the Secretary. The Secretary shall distribute to the members an agenda 
setting forth the proposed subject matter for any regular or annual 
meeting in advance of the meeting.



Sec. 6.2  Special meetings.

    Consistent with the provisions of Sec. Sec. 6.6 and 7.5 of these 
bylaws, the Chairman may call a special meeting of the Board at any 
place in the United States, with the earliest practicable notice to the 
other members of the Board and to the Secretary, specifying the time, 
date, place, and subject matter of the meeting. Consistent with the

[[Page 17]]

provisions of Sec. Sec. 6.6 and 7.5 of these bylaws, by recorded vote a 
majority of the members of the Board may call a special meeting of the 
Board at any place in the United States, with the earliest practicable 
notice to the other members of the Board and to the Secretary, 
specifying the time, date, place and subject matter of the meeting.



Sec. 6.3  Notice of meetings.

    The Chairman or the members of the Board may give the notice 
required under Sec. 6.1 or Sec. 6.2 of these bylaws in oral, written, 
or e-mail form. Oral notice to a member may be delivered by telephone 
and is sufficient if made to the member personally or to a responsible 
person in the member's home or office. Any oral notice to a member must 
be subsequently confirmed by written or e-mail notice. Written notice to 
a member may be delivered by mail addressed to the member's mailing 
address of record filed with the Secretary. Notice by e-mail may be 
addressed to the member's e-mail address of record filed with the 
Secretary. Except for written or e-mail notice confirming a previous 
oral notice, a written or e-mail notice must be sent in sufficient time 
to reach the address of record at least 2 days before the meeting date 
under normal delivery conditions. A member waives notice of any meeting 
by attending the meeting, and may otherwise waive notice of any meeting 
at any time. No notice--whether oral, written, or e-mail--to the 
Secretary is sufficient until actually received by the Secretary. The 
Secretary may not waive notice of any meeting.



Sec. 6.4  Attendance by conference telephone call.

    For regularly scheduled meetings of the Board, members are expected 
to attend in person. Unless prohibited by law or by these bylaws, 
however, a member of the Board, under exceptional circumstances, may 
participate in a meeting of the Board by conference telephone or similar 
communications equipment which enables all persons participating in the 
meeting to hear each other and which permits full compliance with the 
provisions of these bylaws concerning public observation of meetings. 
Attendance at a meeting by this method constitutes presence at the 
meeting and a member of the Board may be paid for his or her 
participation provided such meeting addresses substantive, as opposed to 
procedural or administrative, matters on which the Board has 
decisionmaking authority.



Sec. 6.5  Minutes of meetings.

    The Secretary shall preserve the minutes of Board meetings prepared 
under Sec. 4.6 of these bylaws. After the minutes of any meeting are 
approved by the Board, the Secretary shall promptly make available to 
the public, in the Corporate Communications Department at Postal Service 
Headquarters, or in another place easily accessible to the public, 
copies of the minutes, except for those portions which contain 
information inappropriate for public disclosure under 5 U.S.C. 552(b) or 
39 U.S.C. 410(c).



Sec. 6.6  Quorum and voting.

    As provided by 39 U.S.C. 205(c), and except for routine, non-
controversial, and administrative matters considered through the 
notation voting process described in Sec. 6.7, the Board acts by 
resolution upon a majority vote of those members who attend a meeting in 
person or by teleconference. No proxies are allowed in any vote of the 
members of the Board. Any 6 members constitute a quorum for the 
transaction of business by the Board, except:
    (a) In the appointment or removal of the Postmaster General, and in 
setting the compensation and benefits of the Postmaster General and 
Deputy Postmaster General, 39 U.S.C. 205(c)(1) requires a favorable vote 
of an absolute majority of the Governors in office;
    (b) In the appointment or removal of the Deputy Postmaster General, 
39 U.S.C. 205(c)(2) requires a favorable vote of an absolute majority of 
the Governors in office and the Postmaster General;
    (c) In the appointment, removal, or in the setting of the 
compensation and benefits of the Secretary, Assistant Secretary, or 
other necessary staff, a favorable vote of an absolute majority of the 
Governors in office is required;

[[Page 18]]

    (d) In the determination to close a portion of a meeting or to 
withhold information concerning a meeting, 5 U.S.C. 552b(d)(1) requires 
a vote of a majority of the entire membership of the Board; and
    (e) In the decision to call a meeting with less than a week's 
notice, 5 U.S.C. 552b(e)(1) requires a vote of a majority of the members 
of the Board. In the decision to change the subject matter of a meeting, 
or the determination to open or close a meeting, 5 U.S.C. 552b(e)(2) 
requires a vote of a majority of the entire membership of the Board.
    (f) In establishing rates or classes of competitive products of both 
general and not of general applicability in Sec. Sec. 3.9 and 3.10 of 
these bylaws, 39 U.S.C. 3632(a) requires the concurrence of a majority 
of all of the Governors then holding office.
    (g) In removing the Inspector General for cause, 39 U.S.C. 202(e) 
requires the written concurrence of at least 7 Governors.

[73 FR 78983, Dec. 24, 2008, as amended at 77 FR 17334, Mar. 26, 2012]



Sec. 6.7  Notation voting.

    (a) General. Notation voting consists of the circulation of written 
memoranda and voting sheets to each member of the Board simultaneously 
and the tabulation of submitted responses. Notation voting may be used 
only for routine, non-controversial, and administrative matters.
    (b) Administrative Responsibility. The Secretary of the Board is 
responsible for:
    (1) Distributing notation voting memoranda and voting sheets;
    (2) Establishing deadlines for notation voting sheets to be 
completed and returned;
    (3) Processing and tabulating all notation voting sheets; and
    (4) Determining whether further action is required.
    (c) Veto of notation voting. In view of the public policy for 
openness reflected in the Government in the Sunshine Act and in these 
bylaws, each Board member is authorized to veto the use of notation 
voting for the consideration of any matter. If a Board member vetoes the 
use of notation voting, the Secretary must notify all members of such 
action, and must promptly take action to place the particular matter on 
the agenda of the next regularly scheduled Board meeting following the 
date of the veto, or to schedule a teleconference to consider the 
matter, as appropriate.
    (d) Disclosure of result. The Secretary shall maintain all records 
pertaining to Board actions taken pursuant to the notation voting 
process, and shall make such records available for public inspection, 
consistent with the Freedom of Information Act, 5 U.S.C. 552.

[77 FR 17334, Mar. 26, 2012]



PART 7_PUBLIC OBSERVATION (ARTICLE VII)--Table of Contents



Sec.
7.1 Definitions.
7.2 Open meetings.
7.3 Exceptions.
7.4 Procedure for closing a meeting.
7.5 Public notice of meetings, subsequent changes.
7.6 Certification and transcripts of closed meetings.
7.7 Enforcement.
7.8 Open meetings, Freedom of Information, and Privacy of Information.

    Authority: 39 U.S.C. 410; 5 U.S.C. 552b(a)-(m).

    Source: 73 FR 78983, Dec. 24, 2008, unless otherwise noted.



Sec. 7.1  Definitions.

    For purposes of Sec. Sec. 7.2 through 7.8 of these bylaws:
    (a) The term Board means the Board of Governors, and any subdivision 
or committee of the Board authorized to take action on behalf of the 
Board.
    (b) The term meeting means the deliberations of at least the number 
of individual members required to take action on behalf of the Board 
under Sec. 5.2 or Sec. 6.6 of these bylaws, where such deliberations 
determine or result in the joint conduct or disposition of the official 
business of the Board. The term ''meeting'' does not include any 
procedural deliberations required or permitted by Sec. Sec. 6.1, 6.2, 
7.4, or 7.5 of the bylaws in this chapter, or the notation voting 
process described in Sec. 6.7 of the bylaws in this chapter.

[73 FR 78983, Dec. 24, 2008, as amended at 77 FR 17334, Mar. 26, 2012]

[[Page 19]]



Sec. 7.2  Open meetings.

    (a) It is the policy of the United States, established in section 2 
of the Government in the Sunshine Act, Public Law 94-409, 90 Stat. 1241, 
that the public is entitled to the fullest practicable information 
regarding the decisionmaking processes of the Federal Government. The 
Postal Service is charged to provide the public with this information 
while protecting the rights of individuals and the ability of the 
Government to carry out its responsibilities. Accordingly, except as 
specifically permitted by statute, every portion of every meeting of the 
Board of Governors is open to public observation.
    (b) Except as provided in Sec. 7.3 of these bylaws, every portion 
of every meeting of the Board is open to public observation. Members of 
the Board may not jointly conduct or dispose of business of the Board 
without complying with Sec. Sec. 7.2 through 7.8 of these bylaws. 
Members of the public may obtain access to documents considered at 
meetings to the extent provided in the regulations of the Postal Service 
concerning the release of information.
    (c) Without the permission of a majority of the Board, no person may 
participate in, film, televise, or broadcast any portion of any meeting 
of the Board. Any person may electronically record or photograph a 
meeting, as long as that action does not tend to impede or disturb the 
members of the Board in the performance of their duties, or members of 
the public while attempting to attend or observe a meeting of the Board. 
The rules and penalties of 39 CFR Part 232, concerning conduct on postal 
property, apply with regard to meetings of the Board.



Sec. 7.3  Exceptions.

    Section 7.2 of these bylaws does not apply to a portion of a 
meeting, and Sec. Sec. 7.4 and 7.5 do not apply to information 
concerning the meeting which otherwise would be required to be disclosed 
to the public, if the Board properly determines that the public interest 
does not require otherwise, and that such portion of the meeting or the 
disclosure of such information is likely to:
    (a) Disclose matters that are:
    (1) Specifically authorized under criteria established by an 
Executive order to be kept secret in the interests of national defense 
or foreign policy, and
    (2) In fact properly classified under that Executive order;
    (b) Relate solely to the internal personnel rules and practices of 
the Postal Service, including the Postal Service position in 
negotiations or consultations with employee organizations.
    (c) Disclose matters specifically exempted from disclosure by 
statute (other than the Freedom of Information Act, 5 U.S.C. 552), 
provided that the statute:
    (1) Requires that the matters be withheld from the public in such a 
manner as to leave no discretion on the issue, or
    (2) Establishes particular criteria for withholding or refers to 
particular types of matters to be withheld;
    (d) Disclose trade secrets and commercial or financial information 
obtained from a person and privileged or confidential, such as market 
information pertinent to Postal Service borrowing or investments, 
technical or patent information related to postal mechanization, or 
commercial information related to purchases of real estate;
    (e) Involve accusing any person of a crime, or formally censuring 
any person;
    (f) Disclose information of a personal nature, such as personal or 
medical data regarding any individual if disclosure would constitute a 
clearly unwarranted invasion of personal privacy;
    (g) Disclose investigatory records compiled for law enforcement 
purposes, or information which if written would be contained in those 
records, but only to the extent that the production of those records or 
information would:
    (1) Interfere with enforcement proceedings,
    (2) Deprive a person of a right to a fair trial or an impartial 
adjudication,
    (3) Constitute an unwarranted invasion of personal privacy,
    (4) Disclose the identity of a confidential source and, in the case 
of a record compiled by a criminal law enforcement authority in the 
course of a criminal investigation, or by an agency conducting a lawful 
national security

[[Page 20]]

intelligence investigation, confidential information furnished only by 
the confidential source,
    (5) Disclose investigative techniques and procedures, or
    (6) Endanger the life or physical safety of law enforcement 
personnel;
    (h) Disclose information contained in or related to examination, 
operating, or condition reports prepared by, on behalf of, or for the 
use of an agency responsible for the regulation or supervision of 
financial institutions;
    (i) Disclose information the premature disclosure of which would be 
likely significantly to frustrate implementation of a proposed action of 
the Board, such as information relating to the negotiation of a labor 
contract or proposed Postal Service procurement activity, except that 
this provision does not apply in any instance where:
    (1) The Postal Service has already disclosed to the public the 
content or nature of the proposed action, or
    (2) The Postal Service is required by law to make such disclosure on 
its own initiative before taking final action on the proposal; or
    (j) Specifically concern the issuance of a subpoena by the Postal 
Service, or the participation of the Postal Service in a civil action or 
proceeding, such as a postal rate or classification proceeding, an 
action in a foreign court or international tribunal, or an arbitration, 
or the initiation, conduct, or disposition by the Postal Service of a 
particular case of formal adjudication under the procedures of 5 U.S.C. 
554 or otherwise involving a determination on the record after 
opportunity for a hearing.



Sec. 7.4  Procedure for closing a meeting.

    (a) A majority of the entire membership of the Board may vote to 
close a portion of a meeting or to withhold information concerning a 
meeting under the provisions of Sec. 7.3 of these bylaws. The members 
shall take a separate vote with respect to each meeting a portion of 
which is proposed to be closed to the public, or with respect to any 
information which is proposed to be withheld, and shall make every 
reasonable effort to take any such vote at least 8 days before the date 
of the meeting involved. The members may take a single vote with respect 
to a series of meetings, portions of which are proposed to be closed to 
the public, or with respect to information concerning the series, so 
long as each portion of a meeting in the series involves the same 
particular matters, and no portion of any meeting is scheduled to be 
held more than 30 days after the initial portion of the first meeting in 
the series.
    (b) Whenever any person whose interest may be directly affected by a 
portion of a meeting requests that the Board close that portion to the 
public for any of the reasons referred to in Sec. 7.3(e), (f), or (g) 
of these bylaws, upon request of any one of its members the Board shall 
vote by recorded vote whether to close that portion of the meeting.
    (c) The Secretary shall record the vote of each member participating 
in a vote under paragraph (a) or (b) of this section. Within 1 day of 
any vote under paragraph (a) or (b) of this section, the Secretary shall 
make publicly available a written copy of the vote showing the vote of 
each member on the question. If a portion of a meeting is to be closed 
to the public, the Secretary shall, within 1 day of the vote, make 
publicly available a full written explanation of the action closing the 
portion, together with a list of all persons expected to attend the 
meeting and their affiliation.



Sec. 7.5  Public notice of meetings, subsequent changes.

    (a) At least one week before any meeting of the Board, the Secretary 
shall publicly announce the time, date, place, and subject matter of the 
meeting, whether it is to be open or closed to the public, and the name 
and phone number of the official designated by the Board to respond to 
requests for information about the meeting.
    (b) By a recorded vote, a majority of the members of the Board may 
determine that the business of the Board requires a meeting to be called 
with less than a week's notice. At the earliest practicable time, the 
Secretary shall publicly announce the time, date, place, and subject 
matter of the meeting, and whether it is to be open or closed to the 
public.

[[Page 21]]

    (c) Following the public announcement required by paragraphs (a) or 
(b) of this section:
    (1) As provided in Sec. 6.1 of these bylaws, the Board may change 
the time or place of a meeting. At the earliest practicable time, the 
Secretary shall publicly announce the change.
    (2) A majority of the entire membership of the Board may change the 
subject matter of a meeting, or the determination to open or close a 
meeting to the public, if it determines by a recorded vote that the 
change is required by the business of the Board and that no earlier 
announcement of the change was possible. At the earliest practicable 
time, the Secretary shall publicly announce the change, and the vote of 
each member upon the change.
    (d) Immediately following each public announcement required under 
paragraphs (a), (b), or (c) of this section, the Secretary shall submit 
for publication in the Federal Register a notice of the time, date, 
place, and subject matter of the meeting, whether the meeting is open or 
closed, any change in the preceding, and the name and phone number of 
the official designated by the Board to respond to requests for 
information about the meeting. The Secretary shall also submit the 
announcement and information to the Corporate Communications Department 
for dissemination to the public.



Sec. 7.6  Certification and transcripts of closed meetings.

    (a) At the beginning of every meeting or portion of a meeting closed 
under Sec. 7.3(a) through (j) of these bylaws, the General Counsel 
shall publicly certify that, in his or her opinion, the meeting or 
portion of the meeting may be closed to the public, stating each 
relevant exemptive provision. The Secretary shall retain this 
certification, together with a statement from the officer presiding at 
the meeting which sets forth the time and place of the meeting, and the 
persons present.
    (b) The Secretary shall arrange for a complete transcript or 
electronic recording adequate to record fully the proceedings to be made 
of each meeting or portion of a meeting of the Board which is closed to 
the public. The Secretary shall maintain a complete verbatim copy of the 
transcript, or a complete electronic recording of each meeting or 
portion of a meeting closed to the public for at least 2 years after the 
meeting, or for 1 year after the conclusion of any Postal Service 
proceeding with respect to which the meeting was held, whichever occurs 
later.
    (c) Except for those items of discussion or testimony which the 
Board, by a majority vote of those members who are present, determines 
to contain information which may be withheld under Sec. 7.3 of these 
bylaws, the Secretary shall promptly make available to the public, in 
the Corporate Communications Department at Postal Service Headquarters, 
or in another place easily accessible to the public, the transcript or 
electronic recording of a closed meeting, including the testimony of any 
witnesses received at the meeting. The Secretary shall furnish a copy of 
this transcript, or a transcription of this electronic recording 
disclosing the identity of each speaker, to any person at the actual 
cost of duplication or transcription.



Sec. 7.7  Enforcement.

    (a) Under 5 U.S.C. 552b(g), any person may bring a proceeding in the 
United States Court of Appeals for the District of Columbia to set aside 
any provisions of these bylaws which are not in accord with the 
requirements of 5 U.S.C. 552b (a)-(f) and to require the promulgation of 
provisions that are in accord with those requirements.
    (b) Under 5 U.S.C. 552b(h) any person may bring a civil action 
against the Board in an appropriate U.S. District Court to obtain 
judicial review of the alleged failure of the Board to comply with 5 
U.S.C. 552b(a)-(f). The burden is on the Board to sustain its action. 
The court may grant appropriate equitable relief, including enjoining 
future violations, or ordering the Board to make public information 
improperly withheld from the public.
    (c) Under 5 U.S.C. 552b(i) the court may assess against any party 
reasonable attorney fees and other litigation costs reasonably incurred 
by any other party who substantially prevails, except that the court may 
assess costs against the plaintiff only if the court

[[Page 22]]

finds that he initiated the suit primarily for frivolous or dilatory 
purposes.



Sec. 7.8  Open meetings, Freedom of Information, and Privacy of 
Information.

    The provisions of 5 U.S.C. 552b(c) (1)-(10), enacted by Public Law 
94-409, the Government in the Sunshine Act, govern in the case of any 
request under the Freedom of Information Act, 5 U.S.C. 552, to copy or 
to inspect the transcripts or electronic recordings described in Sec. 
7.6 of these bylaws. Nothing in 5 U.S.C. 552b authorizes the Board to 
withhold from any individual any record, including the transcripts or 
electronic recordings described in Sec. 7.6 of these bylaws, to which 
the individual may otherwise have access under 5 U.S.C. 552a, enacted by 
the Privacy Act of 1974, Public Law 93-579.

                          PARTS 8	9 [RESERVED]



PART 10_RULES OF CONDUCT FOR POSTAL SERVICE GOVERNORS (ARTICLE X)--Table
of Contents



Sec.
10.1 Applicability.
10.2 Advisory service.
10.3 Post-employment activities.
10.4 Financial disclosure reports.

    Authority: 39 U.S.C. 401(2), (10).

    Source: 73 FR 78983, Dec. 24, 2008, unless otherwise noted.



Sec. 10.1  Applicability.

    This part contains rules of conduct for the members of the Board of 
Governors of the United States Postal Service. As special employees 
within the meaning of 18 U.S.C. 202(a), the members of the Board are 
also subject to the Standards of Ethical Conduct for Employees of the 
Executive Branch, 5 CFR part 2635, and Postal Service regulations 
supplemental thereto, 5 CFR part 7001.



Sec. 10.2  Advisory service.

    (a) The General Counsel is the Ethical Conduct Officer of the Postal 
Service and the Designated Agency Ethics Official for purposes of the 
Ethics in Government Act, as amended, and the implementing regulations 
of the Office of Government Ethics, including 5 CFR part 2638.
    (b) A Governor may obtain advice and guidance on questions of 
conflicts of interest, and may request any ruling provided for by either 
the Standards of Ethical Conduct for Employees of the Executive Branch, 
or the Postal Service regulations supplemental thereto, from the General 
Counsel or a designated assistant.
    (c) If the General Counsel determines that a Governor is engaged in 
activity which involves a violation of federal statute or regulation, 
including the ethical conduct regulations contained in 5 CFR parts 2635 
and 7001, or conduct which creates the appearance of such a violation, 
he or she shall bring this to the attention of the Governor or shall 
notify the Chairman of the Board of Governors, or the Vice Chairman, as 
appropriate.



Sec. 10.3  Post-employment activities.

    Governors are subject to the restrictions on the post-employment 
activities of special Government employees imposed by 18 U.S.C. 207. 
Guidance concerning post-employment restrictions applicable to Governors 
may be obtained in accordance with section 10.2(b).



Sec. 10.4  Financial disclosure reports.

    (a) Requirement of submission of reports. At the time of their 
nomination, Governors complete a financial disclosure report which, 
under the practice of the Senate Governmental Affairs Committee, is kept 
confidential. Because the Director of the Office of Government Ethics 
has ruled that Governors who do not perform the duties of their office 
for more than 60 days in any calendar year are not required to file 
financial disclosure reports that are open to the public, Governors file 
non-public reports annually, in accordance with this section. A Governor 
who performs the duties of his or her office for more than 60 days in a 
particular calendar year is required to file a public report in 
accordance with 5 CFR 2634.204(c).
    (b) Person with whom reports should be filed and time for filing. 
(1) A Governor shall file a financial disclosure report with the General 
Counsel on or before

[[Page 23]]

May 15 of each year when the Governor has been in office for more than 
60 consecutive calendar days during the previous year.
    (2) The General Counsel may, for good cause shown, grant to a 
Governor an extension of up to 45 days. An additional extension of up to 
45 days may be granted by the Director of the Office of Government 
Ethics for good cause shown.
    (c) Information required to be reported. Each report shall be a full 
and complete statement, on the form prescribed by the General Counsel 
and the Office of Government Ethics and in accordance with instructions 
issued by him or her. The form currently in use is Standard Form 278.
    (d) Reviewing reports. (1) Financial disclosure reports filed in 
accordance with the provisions of this section shall, within 60 days 
after the date of filing, be reviewed by the General Counsel who shall 
either approve the report, or make an initial determination that a 
conflict or appearance thereof exists. If the General Counsel determines 
initially that a conflict or the appearance of a conflict exists, he or 
she shall inform the Governor of his determination.
    (2) If the General Counsel considers that additional information is 
needed to complete the report or to allow an adequate review to be 
conducted, he or she shall request the reporting Governor to furnish 
that information by a specified date.
    (3) The General Counsel shall refer to the Chairman of the Board of 
Governors or the Vice Chairman the name of any Governor he or she has 
reasonable cause to believe has wrongfully failed to file a report or 
has falsified or wrongfully failed to report required information.
    (e) Custody of and public access to reports. (1) Retention of 
reports. Each report filed with the General Counsel shall be retained by 
him or her for a period of six years. After the six-year period, the 
report shall be destroyed unless needed in connection with an 
investigation then pending.
    (2) Confidentiality of reports. Unless a public report is required 
by this section, the financial disclosure reports filed by Governors 
shall not be made public.



PART 11_ADVISORY BOARDS (ARTICLE XI)--Table of Contents



    Authority: 39 U.S.C. 202, 205, 401(2), (10), 402, 403.



Sec. 11.1  Establishment.

    The Board of Governors may create such advisory boards as it may 
deem appropriate and may appoint persons to serve thereon or may 
delegate such latter authority to the Postmaster General.

[73 FR 78983, Dec. 24, 2008]

[[Page 24]]



                     SUBCHAPTER B_INTERNATIONAL MAIL





PART 20_INTERNATIONAL POSTAL SERVICE--Table of Contents



Sec.
20.1 International Mail Manual; incorporation by reference.
20.2 Effective date of the International Mail Manual.
20.3 Availability of the International Mail Manual.
20.4 Amendments to the International Mail Manual.
20.5 [Reserved]

    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, 404, 407, 414, 416, 3001-3011, 3201-3219, 3403-
3406, 3621, 3622, 3626, 3632, 3633, and 5001.

    Source: 69 FR 59546, Oct. 5, 2004, unless otherwise noted.



Sec. 20.1  International Mail Manual; incorporation by reference.

    (a) Section 552(a) of title 5, U.S.C., relating to the public 
information requirements of the Administrative Procedure Act, provides 
in pertinent part that matter reasonably available to the class of 
persons affected thereby is deemed published in the Federal Register 
when incorporated by reference therein with the approval of the Director 
of the Federal Register. In conformity with that provision and 39 U.S.C. 
410(b)(1), and as provided in this part, the Postal Service hereby 
incorporates by reference its International Mail Manual (IMM), dated 
April 17, 2011, updated with Postal Bulletin revisions through June 2, 
2011, effective June 6, 2011. The Director of the Federal Register 
approves this incorporation by reference in accordance with 5 U.S.C. 
552(a) and 1 CFR Part 51.
    (b) The current Issue of the IMM is incorporated by reference in 
paragraph (a) of this section. Successive Issues of the IMM are listed 
in the following table:

------------------------------------------------------------------------
      International mail manual                 Date of issuance
------------------------------------------------------------------------
Issue 1..............................  November 13, 1981.
Issue 2..............................  March 1, 1983.
Issue 3..............................  July 4, 1985.
Issue 4..............................  September 18, 1986.
Issue 5..............................  April 21, 1988.
Issue 6..............................  October 5, 1988.
Issue 7..............................  July 20, 1989.
Issue 8..............................  June 28, 1990.
Issue 9..............................  February 3, 1991.
Issue 10.............................  June 25, 1992.
Issue 11.............................  December 24, 1992.
Issue 12.............................  July 8, 1993.
Issue 13.............................  February 3, 1994.
Issue 14.............................  August 4, 1994.
Issue 15.............................  July 9, 1995.
Issue 16.............................  January 4, 1996.
Issue 17.............................  September 12, 1996.
Issue 18.............................  June 9, 1997.
Issue 19.............................  October 9, 1997.
Issue 20.............................  July 2, 1998.
Issue 21.............................  May 3, 1999.
Issue 22.............................  January 1, 2000.
Issue 23.............................  July 1, 2000.
Issue 24.............................  January 1, 2001.
Issue 25.............................  July 1, 2001.
Issue 26.............................  January 1, 2002.
Issue 27.............................  June 30, 2002.
Issue 28.............................  January 1, 2003.
Issue 29.............................  July 1, 2003.
Issue 30.............................  August 1, 2004.
Issue 31.............................  May 31, 2005.
Issue 35.............................  May 12, 2008.
Issue 36.............................  May 11, 2009.
IMM..................................  April 17, 2011.
------------------------------------------------------------------------


[75 FR 34017, June 16, 2010, as amended at 76 FR 50414, Aug. 15, 2011]



Sec. 20.2  Effective date of the International Mail Manual.

    The provisions of the International Mail Manual dated April 17, 
2011, updated with Postal Bulletin revisions through June 2, 2011, 
effective June 6, 2011, are applicable with respect to the international 
mail services of the Postal Service.

[76 FR 50414, Aug. 15, 2011]



Sec. 20.3  Availability of the International Mail Manual.

    Copies of the International Mail Manual may be purchased from the 
Superintendent of Documents, U.S. Government Printing Office, 
Washington, DC 20402-9371. The IMM is available for examination on the 
Internet at http://pe.usps.gov. Copies are available for public 
inspection during regular business hours at area and district offices of 
the Postal Service and at all post offices, classified stations, and 
classified branches. You may also inspect a copy at the U.S. Postal 
Service Library, 475 L'Enfant Plaza West SW., Washington, DC 20260-1641, 
or at the National Archives and Records Administration

[[Page 25]]

(NARA). For information on the availability of this material at NARA, 
call 202-741-6030, or go to: http://www.archives.gov/federal--register/
code--of--federal--regulations/ibr--locations.html.



Sec. 20.4  Amendments to the International Mail Manual.

    New issues of the International Mail Manual will be incorporated by 
reference into this part and will be available at http://pe.usps.gov. 
The text of amendments to the International Mail Manual will be 
published in the Federal Register and will be available in the Postal 
Bulletin, copies of which may be accessed at http://www.usps.com/cpim/
ftp/bulletin/pb.htm.



Sec. 20.5  [Reserved]

[[Page 26]]



            SUBCHAPTER C_POST OFFICE SERVICES [DOMESTIC MAIL]





General Information on Postal Service--Table of Contents





PART 111_GENERAL INFORMATION ON POSTAL SERVICE--Table of Contents



Sec.
111.1 Mailing Standards of the United States Postal Service, Domestic 
          Mail Manual; incorporation by reference of regulations 
          governing domestic mail services.
111.2 Availability of the Mailing Standards of the United States Postal 
          Service, Domestic Mail Manual.
111.3 Amendments to the Mailing Standards of the United States Postal 
          Service, Domestic Mail Manual.
111.4 Approval of the Director of the Federal Register.
111.5 [Reserved]

    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, 404, 414, 416, 3001-3011, 3201-3219, 3403-3406, 
3621, 3622, 3626, 3632, 3633, and 5001.

    Source: 44 FR 39852, July 6, 1979, unless otherwise noted.



Sec. 111.1  Mailing Standards of the United States Postal Service,
Domestic Mail Manual; incorporated by reference of regulations 

governing domestic mail services.

    Section 552(a) of title 5, U.S.C., relating to the public 
information requirements of the Administrative Procedure Act, provides 
in pertinent part that ``* * * matter reasonably available to the class 
of persons affected thereby is deemed published in the Federal Register 
when incorporated by reference therein with the approval of the Director 
of the Federal Register.'' In conformity with that provision, and with 
39 U.S.C. section 410(b)(1), and as provided in this part, the U.S. 
Postal Service hereby incorporates by reference in this part, the 
Mailing Standards of the United States Postal Service, Domestic Mail 
Manual, a looseleaf document published and maintained by the Postal 
Service.

[62 FR 14827, Mar. 28, 1997, as amended at 69 FR 59139, Oct. 4, 2004; 70 
FR 14535, Mar. 23, 2005]



Sec. 111.2  Availability of the Mailing Standards of the United States 
Postal Service, Domestic Mail Manual.

    (a) Copies of the Mailing Standards of the United States Postal 
Service, Domestic Mail Manual, both current and previous issues, are 
available during regular business hours for reference and public 
inspection at the U.S. Postal Service Library, National Headquarters in 
Washington, DC. Copies of only the current issue are available during 
regular business hours for public inspection at area and district 
offices of the Postal Service and at all post offices, classified 
stations, and classified branches. The Mailing Standards of the United 
States Postal Service, Domestic Mail Manual is available for examination 
on the Internet at http://pe.usps.gov.
    (b) A copy of the current Mailing Standards of the United States 
Postal Service, Domestic Mail Manual is on file at the National Archives 
and Records Administration (NARA). For information on the availability 
of this material at NARA, call 202-741-6030, or go to: http://
www.archives.gov/federal--register/code--of--federal--regulations/ibr--
locations.html.
    (c) Subscriptions to the Mailing Standards of the United States 
Postal Service, Domestic Mail Manual can be purchased by the public from 
the Superintendent of Documents, Washington, DC 20402-9375.

[62 FR 14827, Mar. 28, 1997, as amended at 69 FR 18803, Apr. 9, 2004; 69 
FR 59139, Oct. 4, 2004; 70 FR 14535, Mar. 23, 2005]



Sec. 111.3  Amendments to the Mailing Standards of the United States 
Postal Service, Domestic Mail Manual.

    (a) Except for interim or final regulations published as provided in 
paragraph (b) of this section, only notices rather than complete text of 
changes made to the Mailing Standards of the United States Postal 
Service, Domestic Mail Manual are published in the Federal Register. 
These notices are published in the form of one summary

[[Page 27]]

transmittal letter for each issue of the Mailing Standards of the United 
States Postal Service, Domestic Mail Manual. A complete issue of the 
Mailing Standards of the United States Postal Service, Domestic Mail 
Manual, including the text of all changes published to date, will be 
filed with the Director, Office of the Federal Register. Subscribers to 
the Mailing Standards of the United States Postal Service, Domestic Mail 
Manual receive the latest issue of the Mailing Standards of the United 
States Postal Service, Domestic Mail Manual from the Government Printing 
Office.
    (b) When the Postal Service invites comments from the public on a 
proposed change to the Mailing Standards of the United States Postal 
Service, Domestic Mail Manual, the proposed change and, if adopted, the 
full text of the interim or the final regulation is published in the 
Federal Register.
    (c) The Postal Bulletin contains the full text of all interim and 
final regulations published as provided in paragraph (b) of this 
section, and the full text of all other changes to the Mailing Standards 
of the United States Postal Service, Domestic Mail Manual that are 
summarized in the notices published under paragraph (a) of this section, 
except for nonsubstantive changes and corrections of typographical 
errors. The Postal Bulletin is a biweekly document issued by the Postal 
Service to amend and revise policies and procedures. A 1-year 
subscription to the Postal Bulletin and certain back copies can be 
purchased by the public from the Superintendent of Documents, 
Washington, DC 20402-9371.
    (d) Interim regulations published in full text or referenced as 
provided in paragraphs (b) and (c) of this section, are published, as 
appropriate, in the Mailing Standards of the United States Postal 
Service, Domestic Mail Manual in full text or referenced at the place 
where they would appear if they become final regulations.
    (e) Announcements of changes to the Mailing Standards of the United 
States Postal Service, Domestic Mail Manual not published in the Federal 
Register as provided in paragraphs (a) and (b) of this section and not 
published in the Postal Bulletin as provided in paragraph (c) are not 
deemed final under the provisions of this part 111.
    (f) For references to amendments to the Mailing Standards of the 
United States Postal Service, Domestic Mail Manual adopted under 
paragraph (b) of this section after issuance of the most recent 
transmittal letter (termed Summary of Changes in the Mailing Standards 
of the United States Postal Service, Domestic Mail Manual) listed below, 
see Sec. 111.3 in the List of CFR Sections affected at the end of this 
volume.

------------------------------------------------------------------------
                                                       Federal Register
  Transmittal letter for issue           Dated            publication
------------------------------------------------------------------------
1...............................  July 30, 1979.....  44 FR 39742.
2...............................  May 15, 1980......  45 FR 42616.
3...............................  July 30, 1980.....  45 FR 73925.
4...............................  Oct. 1, 1980......  46 FR 10154.
5...............................  Mar. 1, 1981......  46 FR 25446.
6...............................  July 7, 1981......  46 FR 58079.
7...............................  Nov. 1, 1981......  47 FR 8179.
8...............................  Jan. 21, 1982.....  47 FR 8358.
9...............................  May 1, 1982.......  47 FR 27266.
10..............................  Aug. 1, 1982......  47 FR 43952.
11..............................  Jan. 20, 1983.....  48 FR 10649.
13..............................  Dec. 29, 1983.....  49 FR 18304.
14..............................  Apr. 12, 1984.....  49 FR 26228.
15..............................  July 12, 1984.....  49 FR 33248.
16..............................  Sept. 27, 1984....  49 FR 47232.
17..............................  Dec. 20, 1984.....  50 FR 5580.
18..............................  Feb. 21, 1985.....  50 FR 12019.
19..............................  June 7, 1985......  50 FR 30834.
20..............................  Nov. 14, 1985.....  51 FR 8495.
21..............................  Sept. 4, 1986.....  51 FR 43910.
22..............................  Jan.22, 1987......  52 FR 10750.
23..............................  May 1, 1987.......  52 FR 23981.
24..............................  Sept. 20, 1987....  52 FR 34778.
25..............................  Dec. 20, 1987.....  52 FR 48437.
26..............................  April 3, 1988.....  53 FR 18557.
27..............................  June 19, 1988.....  53 FR 21821.
28..............................  Sept. 18, 1988....  53 FR 35315.
29..............................  Dec.18, 1988......  53 FR 49658.
30..............................  Mar. 19, 1989.....  54 FR 9212.
31..............................  June 18, 1989.....  54 FR 27880.
32..............................  Sept. 17, 1989....  54 FR 37795.
33..............................  Dec. 17, 1989.....  54 FR 50619.
34..............................  Mar. 18, 1990.....  55 FR 10061.
35..............................  June 17, 1990.....  55 FR 24561.
36..............................  Sept. 16, 1990....  55 FR 40658.
37..............................  Dec. 16, 1990.....  56 FR 1112.
38..............................  Feb. 24, 1991.....  56 FR 11513.
39..............................  June 16, 1991.....  56 FR 56015
40..............................  September 15, 1991  56 FR 56013
41..............................  December 15, 1991.  57 FR 21611
42..............................  March 15, 1992....  57 FR 21613
43..............................  June 21, 1992.....  57 FR 37884
44..............................  September 20, 1992  61 FR 67218
45..............................  December 20, 1992.  61 FR 67218
46..............................  July 1, 1993......  61 FR 67218
47..............................  April 10, 1994....  61 FR 67218
48..............................  January 1, 1995...  61 FR 67218
49..............................  September 1, 1995.  61 FR 67218
50..............................  July 1, 1996......  61 FR 60190
51..............................  January 1, 1997...  61 FR 64618
52..............................  July 1, 1997......  62 FR 30457
53..............................  January 1, 1998...  62 FR 63851
54..............................  January 10, 1999..  64 FR 39

[[Page 28]]

 
55..............................  January 10, 2000..  65 FR 1321
56..............................  January 7, 2001...  66 FR 8370
57..............................  June 30, 2002.....  67 FR 46875
58..............................  August 10, 2003...  68 FR 66018
Premier Edition.................  January 6, 2005...  70 FR 14535
Issue 300.......................  January 8, 2006...  73 FR 25509
Issue 300.......................  July 15, 2007.....  73 FR 25509
Issue 300.......................  May 12, 2008......  75 FR 31702
Issue 300.......................  May 11, 2009......  75 FR 31702
Issue 300.......................  May 7, 2008.......  73 FR 25508
Issue 300.......................  May 11, 2009......  75 FR 31702
DMM 300.........................  July 5, 2011......  76 FR 48722.
------------------------------------------------------------------------


[45 FR 40115, June 13, 1980]

    Editorial Note: For Federal Register citations affecting Sec. 
111.3, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and at www.fdsys.gov.



Sec. 111.4  Approval of the Director of the Federal Register.

    Incorporation by reference of the publication now titled the Mailing 
Standards of the United States Postal Service, Domestic Mail Manual was 
approved by the Director of the Federal Register under 5 U.S.C 552(a) 
and 1 CFR part 51 on August 9, 2011.

(5 U.S.C. 552(a); 39 U.S.C. 401, 404, 407, 408, 3001-3011, 3201-3218, 
3403-3405, 3601, 3621; 42 U.S.C. 1973cc-13, 1973cc-14)

[49 FR 47389, Dec. 4, 1984, as amended at 70 FR 14535, Mar. 23, 2005; 73 
FR 25509, May 7, 2008; 75 FR 31702, June 4, 2010; 76 FR 48722, Aug. 9, 
2011]



Sec. 111.5  [Reserved]



PART 121_SERVICE STANDARDS FOR MARKET-DOMINANT MAIL PRODUCTS--Table of 
Contents



Sec.
121.1 First-Class Mail.
121.2 Periodicals.
121.3 Standard Mail.
121.4 Package Services.

Appendix A to Part 121--Service Standard Day Range Tables

    Authority: 39 U.S.C., 101, 401, 403, 404, 1001, 3691.

    Source: 72 FR 72228, Dec. 19, 2007, unless otherwise noted.



Sec. 121.1  First-Class Mail.

    (a)(1) Until February 1, 2014, a 1-day (overnight) service standard 
is applied to intra-Sectional Center Facility (SCF) domestic First-Class 
Mail[supreg] pieces properly accepted before the day-zero Critical Entry 
Time (CET), except for mail between Puerto Rico and the U.S. Virgin 
Islands, mail between American Samoa and Hawaii, and mail destined to 
the following 3-digit ZIP Code areas in Alaska (or designated portions 
thereof): 995 (5-digit ZIP Codes 99540 through 99599), 996, 997, 998, 
and 999.
    (2) On and after February 1, 2014, a 1-day (overnight) service 
standard is applied to intra-SCF domestic Presort First-Class Mail 
pieces properly accepted at the SCF before the day-zero CET, except for 
mail between Puerto Rico and the U.S. Virgin Islands, and mail destined 
to American Samoa and the following 3-digit ZIP Code areas in Alaska (or 
designated portions thereof): 995 (5-digit ZIP Codes 99540 through 
99599), 996, 997, 998, and 999.
    (b)(1) Until February 1, 2014, a 2-day service standard is applied 
to inter-SCF domestic First-Class Mail pieces properly accepted before 
the day-zero CET if the drive time between the origin Processing & 
Distribution Center or Facility (P&DC/F) and destination Area 
Distribution Center (ADC) is 6 hours or less; or if the origin and 
destination are separately in Puerto Rico and the U.S. Virgin Islands; 
or if the origin or destination is in American Samoa or one of the 
following 3-digit ZIP Code areas in Alaska (or designated portions 
thereof): 995 (5-digit ZIP Codes 99540 through 99599), 996, 997, 998, 
and 999.
    (2) On and after February 1, 2014, a 2-day service standard is 
applied to inter-SCF domestic First-Class Mail pieces properly accepted 
before the day-zero CET if the drive time between the origin P&DC/F and 
destination SCF is 6 hours or less; or if the origin and destination are 
separately in Puerto Rico and the U.S. Virgin Islands; or if the origin 
or destination is in American Samoa or one of the following 3-digit ZIP 
Code areas in Alaska (or designated portions thereof): 995 (5-digit ZIP 
Codes 99540 through 99599), 996, 997, 998, and 999.
    (c) A 3-day service standard is applied to domestic First-Class Mail 
pieces properly accepted before the day-zero

[[Page 29]]

CET, if the 1-day and 2-day service standards do not apply, and:
    (1) Both the origin and the destination are within the contiguous 48 
states;
    (2) The origin is in the contiguous 48 states, and the destination 
is in any of the following: the city of Anchorage, Alaska (5-digit ZIP 
Codes 99501 through 99539); the 968 3-digit ZIP Code area in Hawaii; or 
the 006, 007, or 009 3-digit ZIP Code areas in Puerto Rico;
    (3) The origin is in the 006, 007, or 009 3-digit ZIP Code areas in 
Puerto Rico, and the destination is in the contiguous 48 states;
    (4) The origin is in Hawaii, and the destination is in Guam, or vice 
versa;
    (5) The origin is in Hawaii, and the destination is in American 
Samoa, or vice versa; or
    (6) Both the origin and destination are within Alaska.
    (d) A 4-day service standard is applied to domestic First-Class Mail 
pieces properly accepted before the day-zero CET, if the 1-day, 2-day, 
and 3-day service standards do not apply, and:
    (1) The origin is in the contiguous 48 states and the destination is 
in any of the following: any portion of Alaska other than the city of 
Anchorage (5-digit ZIP Codes 99501 through 99539); any portion of Hawaii 
other than the 968 3-digit ZIP Code area; or the U.S. Virgin Islands;
    (2) The destination is in the contiguous 48 states and the origin is 
in Alaska, Hawaii, or the U.S. Virgin Islands; or
    (3) The origin and destination are in different non-contiguous 
states or territories, excluding mail to and from Guam and mail between 
Puerto Rico and the U.S. Virgin Islands.
    (e) A 5-day service standard is applied to all remaining domestic 
First-Class Mail pieces properly accepted before the day-zero CET.
    (f) The service standard for Outbound Single-Piece First-Class Mail 
InternationalTM; pieces properly accepted before the day-zero 
CET is equivalent to the service standard for domestic First-Class Mail 
pieces originating from the same 3-digit ZIP Code area and destined to 
the 3-digit ZIP Code area in which the designated International Service 
Center is located.
    (g) The service standard for Inbound Single-Piece First-Class Mail 
International pieces properly accepted before the day-zero CET is 
equivalent to the service standard for domestic First-Class Mail pieces 
destined to the same 3-digit ZIP Code area and originating from the 3-
digit ZIP Code area in which the designated International Service Center 
is located.

[77 FR 31196, May 25, 2012]



Sec. 121.2  Periodicals.

    (a) End-to-End.
    (1)(i) Until February 1, 2014, a 2- to 4-day service standard is 
applied to Periodicals pieces properly accepted before the day-zero 
Critical Entry Time (CET) and merged with First-Class Mail pieces for 
surface transportation (as per the Domestic Mail Manual (DMM)), with the 
standard specifically equaling the sum of 1 day plus the applicable 
First-Class Mail service standard;
    (ii) On and after February 1, 2014, a 3- to 4-day service standard 
is applied to Periodicals pieces properly accepted before the day-zero 
CET and merged with First-Class Mail pieces for surface transportation 
(as per the DMM), with the standard specifically equaling the sum of 1 
day plus the applicable First-Class Mail service standard.
    (2) A 3-day service standard is applied to Periodicals pieces 
properly accepted before the day-zero CET if: the origin and destination 
are separately in Puerto Rico and the U.S. Virgin Islands; or if the 
origin is in Alaska, the service standards set forth in paragraphs 
(a)(1)(i) and (ii) do not apply, and the destination is in the following 
3-digit ZIP Code areas in Alaska (or designated portions thereof): 995 
(5-digit ZIP Codes 99540 through 99599), 996, 997, 998, and 999.
    (3) A 4-day service standard is applied to Periodicals pieces 
properly accepted before the day-zero CET if: the origin and destination 
are separately in Hawaii and Guam; or the origin and destination are 
separately in Hawaii and American Samoa.
    (4)(i) A 5- to 8-day service standard is applied to Periodicals 
pieces properly accepted before the day-zero CET if they originate and 
destinate within the

[[Page 30]]

contiguous 48 states, they are not merged with First-Class Mail pieces 
for surface transportation (as per the DMM), and the Area Distribution 
Center (ADC) and Sectional Center Facility (SCF) are co-located, with 
the standard specifically equaling the sum of 4 days plus the number of 
additional days (from 1 to 4) required for surface transportation 
between the applicable 3-digit ZIP Code origin-destination pairs;
    (ii) A 6- to 9-day service standard is applied to Periodicals pieces 
properly accepted before the day-zero CET if they originate and 
destinate within the contiguous 48 states, they are not merged with 
First-Class Mail pieces for surface transportation (as per the DMM), and 
the ADC and SCF are not co-located, with the standard specifically 
equaling the sum of 5 days plus the number of additional days (from 1 to 
4) required for surface transportation between the applicable 3-digit 
ZIP Code origin-destination pairs;
    (5) A 12- to 26-day service standard is applied to all remaining 
Periodicals pieces properly accepted before the day-zero CET, with the 
standard specifically equaling the sum of 5 days plus the number of 
additional days (from 7 to 21) required for intermodal (highway, boat, 
air-taxi) transportation outside the contiguous 48 states for the 
applicable 3-digit ZIP Code origin-destination pairs.
    (b) Destination Entry.
    (1) Destination Delivery Unit (DDU) Entered Mail. A 1-day 
(overnight) service standard is applied to Periodicals pieces that 
qualify for a DDU rate and are properly accepted before the day-zero CET 
at the designated DDU.
    (2) Destination Sectional Center Facility (DSCF) Entered Mail.
    (i) A 1-day (overnight) service standard is applied to Periodicals 
pieces that qualify for a DSCF rate and are properly accepted before the 
day-zero CET at the designated DSCF, except for mail entered at the SCF 
in Puerto Rico and destined to the U.S. Virgin Islands, mail entered at 
the SCF in Hawaii and destined to American Samoa, and mail destined to 
the following 3-digit ZIP Code areas in Alaska (or designated portions 
thereof): 995 (5-digit ZIP Codes 99540 through 99599), 996, 997, 998, 
and 999;
    (ii) A 3-day service standard is applied to Periodicals pieces that 
qualify for a DSCF rate and are properly accepted before the day-zero 
CET at the designated DSCF, if the they are entered at the DSCF in 
Puerto Rico and destined to the U.S. Virgin Islands, entered at the DSCF 
in Hawaii and destined to American Samoa, or destined to the following 
3-digit ZIP Code areas in Alaska (or designated portions thereof): 995 
(5-digit ZIP Codes 99540 through 99599), 996, 997, 998, and 999.
    (3) Destination Area Distribution Center (DADC) Entered Mail.
    (i) A 1-day (overnight) service standard is applied to Periodicals 
pieces that qualify for a DADC rate and are properly accepted before the 
day-zero CET at the designated DADC, if the DADC and DSCF are co-
located;
    (ii) A 2-day service standard is applied to Periodicals pieces that 
qualify for a DADC rate and are properly accepted before the day-zero 
CET at the designated DADC, if the DADC and DSCF are not co-located, 
unless the mail is entered at a DADC within the contiguous 48 states and 
destined outside the contiguous 48 states, or entered at the DADC in 
Puerto Rico and destined to the U.S. Virgin Islands, or destined to 
either American Samoa or the following 3-digit ZIP Code areas in Alaska 
(or designated portions thereof): 995 (5-digit ZIP Codes 99540 through 
99599), 996, 997, 998, and 999;
    (iii) A 4-day service standard is applied to Periodicals pieces that 
qualify for a DADC rate and are properly accepted before the day-zero 
CET at the designated DADC, if they are entered at the DADC in Puerto 
Rico and destined to the U.S. Virgin Islands, or if they are destined to 
American Samoa or the following 3-digit ZIP Code areas in Alaska (or 
designated portions thereof): 995 (5-digit ZIP Codes 99540 through 
99599), 996, 997, 998, and 999;
    (iv) An 11-day service standard is applied to Periodicals pieces 
that qualify for a DADC rate, are properly accepted before the day-zero 
CET at the designated DADC in the contiguous 48 states, and are destined 
to the 998 or 999 3-digit ZIP Code areas in Alaska.

[[Page 31]]

    (4) Destination Network Distribution Center (DNDC)/Auxiliary Service 
Facility (ASF) Entered Mail.
    (i) A 2-day service standard is applied to Periodicals pieces that 
qualify for a DADC containerized rate, are properly accepted before the 
day-zero CET at the designated DNDC or ASF in the contiguous 48 states, 
and are destined within the contiguous 48 states, if the DADC and DSCF 
are co-located;
    (ii) A 3-day service standard is applied to Periodicals pieces that 
qualify for a DADC containerized rate, are properly accepted before the 
day-zero CET at the designated DNDC or ASF in the contiguous 48 states, 
and are destined within the contiguous 48 states, if the DADC and DSCF 
are not co-located;
    (iii) An 8- to 10-day service standard is applied to Periodicals 
pieces that qualify for a DADC containerized rate, are properly accepted 
before the day-zero CET at the designated DNDC or ASF in the contiguous 
48 states, and are destined outside the contiguous 48 states, if the 
DADC and DSCF are co-located, with the specific standard being based on 
the number of days required for transportation outside the contiguous 48 
states;
    (iv) A 9- to 11-day service standard is applied to Periodicals 
pieces that qualify for a DADC containerized rate, are properly accepted 
before the day-zero CET at the designated DNDC or ASF in the contiguous 
48 states, and are destined outside the contiguous 48 states, if the 
DADC and DSCF are not co-located, with the specific standard being based 
on the number of days required for transportation outside the contiguous 
48 states.

[77 FR 31196, May 25, 2012]



Sec. 121.3  Standard Mail.

    (a) End-to-End. (1) The service standard for Sectional Center 
Facility (SCF) turnaround Standard Mail[supreg] pieces accepted at 
origin before the day-zero Critical Entry Time is 3 days when the origin 
Processing & Distribution Center/Facility (OPD&C/F) and the SCF are the 
same building, except for mail between the territories of Puerto Rico 
and the U.S. Virgin Islands.
    (2) The service standard for Area Distribution Center (ADC) 
turnaround Standard Mail pieces accepted at origin before the day-zero 
Critical Entry Time is 4 days when the OPD&C/F and the ADC are the same 
building, unless the ADC is in the contiguous 48 states and the delivery 
address is not, or the mail is between Puerto Rico and the U.S. Virgin 
Islands, or the mail is between Hawaii and American Samoa.
    (3) The service standard for intra-Network Distribution Center (NDC) 
Standard Mail pieces accepted at origin before the day-zero Critical 
Entry Time is 5 days for each remaining 3-digit ZIP Code origin-
destination pair within the same Network Distribution Center service 
area if the origin and destination are within the contiguous 48 states; 
the same standard applies to mail that is intra-Alaska or between the 
state of Hawaii and the territory of Guam or American Samoa.
    (4) For each remaining 3-digit ZIP Code origin-destination pair 
within the contiguous 48 states, the service standard for Standard Mail 
pieces accepted at origin before the day-zero Critical Entry Time is the 
sum of 5 or 6 days plus the number of additional days (from 1 to 4) 
required for surface transportation between each 3-digit ZIP Code 
origin-destination pair.
    (5) For each remaining 3-digit ZIP Code origin-destination pair, the 
service standard for Standard Mail pieces accepted at origin before the 
day-zero Critical Entry Time is the sum of 5 or 6 days plus the number 
of additional days (from 7 to 21) required for intermodal (highway, 
boat, air-taxi) transportation outside the contiguous 48 states for each 
3-digit ZIP Code origin-destination pair.
    (b) Destination Entry. (1) Standard Mail pieces that qualify for a 
Destination Delivery Unit (DDU) rate and that are accepted before the 
day-zero Critical Entry Time at the proper DDU have a 2-day service 
standard.
    (2) Standard Mail pieces that qualify for a Destination Sectional 
Center Facility (DSCF) rate and that are accepted before the day-zero 
Critical Entry Time at the proper DSCF have a 3-day service standard, 
except for mail dropped at the SCF in the territory of Puerto Rico and 
destined to the territory of the U.S. Virgin Islands, or mail destined 
to American Samoa.

[[Page 32]]

    (3) Standard Mail pieces that qualify for a Destination Sectional 
Center Facility (DSCF) rate, are accepted before the day-zero Critical 
Entry Time at the SCF, and are either entered in Puerto Rico and 
destined to the U.S. Virgin Islands, or are destined to American Samoa, 
have a 4-day service standard.
    (4) Standard Mail pieces that qualify for a Destination Network 
Distribution Center (DNDC) rate, and that are accepted before the day-
zero Critical Entry Time at the proper DNDC have a 5-day service 
standard, if both the origin and the destination are in the contiguous 
48 states.
    (5) Standard Mail pieces that qualify for a Destination Network 
Distribution Center (DNDC) rate, and that are accepted before the day-
zero Critical Entry Time at the proper DNDC in the contiguous 48 states 
for delivery to addresses in the states of Alaska or Hawaii or the 
territories of Guam, American Samoa, Puerto Rico, or the U.S. Virgin 
Islands, have a service standard of 12-14 days, depending on the 3-digit 
origin-destination ZIP Code pair. For each such pair, the applicable day 
within the range is based on the number of days required for 
transportation outside the contiguous 48 states.

[77 FR 31197, May 25, 2012]



Sec. 121.4  Package Services.

    (a) End-to-End. (1) The service standard for Sectional Center 
Facility (SCF) turnaround Package Services mail accepted at the origin 
SCF before the day-zero Critical Entry Time is 2 days when the origin 
Processing & Distribution Center/Facility and the SCF are the same 
building, except for mail between the territories of Puerto Rico and the 
U.S. Virgin Islands, and mail destined to American Samoa.
    (2) The service standard for intra-Network Distribution Center (NDC) 
Package Services mail accepted at origin before the day-zero Critical 
Entry Time is 3 days, for each remaining (non-intra-SCF) 3-digit ZIP 
Code origin-destination pair within a Network Distribution Center 
service area, where the origin and destination is within the contiguous 
48 states and is not served by an Auxiliary Service Facility; and for 
mail between the territories of Puerto Rico and the U.S. Virgin Islands, 
and for mail destined to American Samoa.
    (3) The service standard for intra-Network Distribution Center (NDC) 
Package Services mail accepted at origin before the day-zero Critical 
Entry Time is 4 days for each remaining 3-digit ZIP Code origin-
destination pair within a Network Distribution Center service area, 
where the destination delivery address is served by an Auxiliary Service 
Facility; the same standard applies to all remaining intra-Alaska mail 
and mail between the state of Hawaii and the territory of Guam, and mail 
destined to American Samoa.
    (4) For each remaining 3-digit ZIP Code origin-destination pair 
within the contiguous 48 states, the service standard for Package 
Services mail accepted at origin before the day-zero Critical Entry Time 
is between 5 and 8 days. For each such 3-digit ZIP Code origin-
destination pair, this is the sum of 4 days, plus the number of 
additional days (from 1 to 4) required for surface transportation 
between each 3-digit ZIP Code origin-destination pair, plus an 
additional day if the destination delivery address is served by an 
Auxiliary Service Facility.
    (5) For each remaining 3-digit ZIP Code origin-destination pair for 
which either the origin or the destination is outside the contiguous 48 
states, the service standard for Package Services mail accepted at 
origin before the day-zero Critical Entry Time is between 10 and 26 
days. For each such 3-digit ZIP Code origin-destination pair, this 
represents the sum of 3 to 4 days, plus the number of days (ranging from 
7 to 22) required for intermodal (highway, boat, air-taxi) 
transportation between each 3-digit ZIP Code origin-destination pair.
    (6) The service standard for Inbound Surface Parcel Post[supreg] 
pieces (subject to Universal Postal Union rates) is the same as the 
service standard for domestic Package Services mail from the 3-digit ZIP 
Code area in which the International Network Distribution Center is 
located in the 3-digit ZIP Code in which the delivery address is 
located.
    (b) Destination Entry. (1) Package Services mail that qualifies for 
a Destination Delivery Unit (DDU) rate, and

[[Page 33]]

that is accepted before the day-zero Critical Entry Time at the proper 
DDU, has a 1-day (overnight) service standard.
    (2) Package Services mail that qualifies for a Destination Sectional 
Center Facility (DSCF) rate, and that is accepted before the day-zero 
Critical Entry Time at the proper DSCF, has a 2-day service standard, 
except for mail dropped at the SCF in the territory of Puerto Rico and 
destined to the territory of the U.S. Virgin Islands, and mail destined 
to American Samoa.
    (3) Package Services mail that qualifies for a Destination Sectional 
Center Facility (DSCF) discount, is accepted before the day-zero 
Critical Entry Time at the SCF, and is destined to either American Samoa 
or the U.S. Virgin Islands, has a 3-day service standard.
    (4) Package Services mail that qualifies for a Destination Network 
Distribution Center (DNDC) rate, and is accepted before the day-zero 
Critical Entry Time at the proper DNDC or Destination Auxiliary Service 
Facility, and originates and destinates in the contiguous 48 states, has 
a 3-day service standard.
    (5) Package Services mail that qualifies for a Destination Network 
Distribution Center (DNDC) rate, and that is accepted before the day-
zero Critical Entry Time at the proper DNDC in the contiguous 48 states 
for delivery to addresses in the states of Alaska or Hawaii, or the 
territories of Guam, American Samoa, Puerto Rico, or the U.S. Virgin 
Islands has a service standard of either 11 or 12 days, depending on the 
3-digit ZIP Code origin-destination pair. For each such pair, the 
applicable day within the range is based on the number of days required 
for transportation outside the contiguous 48 states.

[77 FR 31198, May 25, 2012]



   Sec. Appendix A to Part 121--Tables Depicting Service Standard Day 
                                 Ranges

    The following tables reflect the service standard day ranges 
resulting from the application of the business rules applicable to the 
market-dominant mail products referenced in Sec. Sec. 121.1 through 
121.4:
    Table 1. Prior to February 1, 2014, end-to-end service standard day 
ranges for mail originating and destinating within the contiguous 48 
states and the District of Columbia.

                        Contiguous United States
------------------------------------------------------------------------
                Mail class                    End-to-end range  (days)
------------------------------------------------------------------------
First-Class Mail..........................  1-3
Periodicals...............................  2-9
Standard Mail.............................  3-10
Package Services..........................  2-8
------------------------------------------------------------------------

    Table 2. On and after February 1, 2014, end-to-end service standard 
day ranges for mail originating and destinating within the contiguous 48 
states and the District of Columbia.

                        Contiguous United States
------------------------------------------------------------------------
                Mail class                    End-to-end range  (days)
------------------------------------------------------------------------
First-Class Mail..........................  1-3
Periodicals...............................  3-9
Standard Mail.............................  3-10
Package Services..........................  2-8
------------------------------------------------------------------------

    Table 3. Prior to February 1, 2014, end-to-end service standard day 
ranges for mail originating and/or destinating in non-contiguous states 
and territories.

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


[[Page 34]]

    Table 4. On and after February 1, 2014, end-to-end service standard 
day ranges for mail originating and/or destinating in non-contiguous 
states and territories.

                                                          Non-Contiguous States and Territories
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                    End-to-end
                                                         -----------------------------------------------------------------------------------------------
                                                               Intra state/territory       To/From contiguous 48 states    To/From states of Alaska and
                                                         ---------------------------------------------------------------- Hawaii, and the Territories of
                                                                                                                          Guam, Puerto Rico and the U.S.
                       Mail class                                                                                                 Virgin Islands
                                                                     Hawaii,     Puerto              Hawaii,     Puerto  -------------------------------
                                                           Alaska    Guam, &     Rico &    Alaska    Guam, &     Rico &              Hawaii,
                                                                    American      USVI              American      USVI               Guam, &     Puerto
                                                                      Samoa                           Samoa                Alaska   American     Rico &
                                                                                                                                      Samoa       USVI
--------------------------------------------------------------------------------------------------------------------------------------------------------
First-Class Mail........................................      1-3         1-3        1-2      3-4         3-5        3-4      4-5         4-5        4-5
Periodicals.............................................      3-4         3-4          3    13-19       12-22      11-16    21-25       21-26      23-26
Standard Mail...........................................      3-5         3-5        3-4    14-20       13-23      12-17    23-26       23-27      24-27
Package Services........................................    * 2-4         2-4        2-3    12-18       11-21      10-15    21-26       20-26      20-24
--------------------------------------------------------------------------------------------------------------------------------------------------------
* Excluding bypass mail.

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

                                            Contiguous United States
----------------------------------------------------------------------------------------------------------------
                                                                  Destination entry (at appropriate facility)
                                                             ---------------------------------------------------
                         Mail class                                                                    NDC/ASF
                                                              DDU  (days)  SCF  (days)  ADC  (days)     (days)
----------------------------------------------------------------------------------------------------------------
Periodicals.................................................            1            1          1-2          2-3
Standard Mail...............................................            2            3  ...........            5
Package Services............................................            1            2  ...........            3
----------------------------------------------------------------------------------------------------------------

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

                                                          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) 2      1-4    10-11         10     8-10
                                                                                               11 (JNU)       (GU)
                                                                                               11 (KTN)
Standard Mail.........................................        2        3        3-4      3-4  .........  .........  .......       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]



PART 122_SERVICE STANDARDS FOR MARKET-DOMINANT SPECIAL SERVICES
PRODUCTS--Table of Contents



Sec.
122.1 Ancillary special services.
122.2 Stand-alone special services.

    Authority: 39 U.S.C. 101, 401, 403, 404, 1001, 3691.

    Source: 72 FR 72228, Dec. 19, 2007, unless otherwise noted.



Sec. 122.1  Ancillary special services.

    (a) For the market-dominant mail products identified above in part 
121, mailers may purchase various ancillary special services products, 
which are designed to provide electronic access to information regarding 
delivery-

[[Page 35]]

related events or forwarding addresses for individual mailpieces.
    (1) For the following special services, the service standard for the 
electronic provision of delivery-related information is that it be made 
available to the sender no later than 24 hours after the time of the 
recorded delivery-related scan performed by the Postal Service on mail 
for which the following special services have been purchased: Domestic 
Certified Mail\TM\ service, domestic Delivery Confirmation\TM\ service, 
domestic and inbound international Registered Mail\TM\ service, domestic 
Collect On Delivery, domestic electronic Return Receipt, and domestic 
Signature Confirmation\TM\ scans.
    (2) For domestic electronic Address Correction Service, the service 
standard for the electronic provision of address change information is 
that it be made available to the sender no later than 24 hours after the 
time of the scan of the mailpiece by the Postal Automated Redirection 
System.
    (b) For the market-dominant mail products identified above in part 
121, mailers may purchase insurance from the Postal Service\TM\ to 
provide indemnity against loss or damage to the contents of a mailpiece. 
The service standard for the administrative resolution of domestic 
insurance claims is that a final agency decision must be transmitted to 
the claimant no later than 30 calendar days after the date on which the 
Postal Service has received all information from the claimant necessary 
for analysis of the claim.



Sec. 122.2  Stand-alone special services.

    (a) The service standard for P. O. Box\TM\ service is that mail be 
available for pickup at the box each delivery day no later than the 
daily ``up-time'' publicly posted at the Post Office\TM\ location that 
includes the box section.
    (b) The service standard for completion of Address List Services 
(change-of-address information for election boards and registration 
commissions, correction and ZIP Code placement of mailing lists, and 
address sequencing) is transmission of the corrected addresses within 15 
business days of receipt to the requester, except for the period from 
November 16 through January 1.
    (c) For the domestic market-dominant mail products identified above 
in part 121, CONFIRM[reg] service allows subscribing 
customers to obtain electronic information regarding when and where 
mailpieces undergo barcode scans in mail processing operations. The 
service standard for the electronic provision of CONFIRM service scan 
information is that it be made available to the sender no later than 24 
hours after the recorded time of the CONFIRM scan performed by the 
Postal Service.
    (d) The service standard for Postal Money Order Inquiry service is 
transmission of a response to the customer's completed inquiry within 15 
business days of receipt of the inquiry by the Postal Service, excluding 
designated postal holidays.
    (e) The service standards for Stamp Fulfillment Services order 
fulfillment service is shipment of orders within the following 
timeframes, based from the time of order receipt within SFS systems, 
excluding designated postal holidays.

  Stamp Fulfillment Services--Service Standards for Fulfillment Process
------------------------------------------------------------------------
              Customer order                    Service standard \1\
------------------------------------------------------------------------
Internet Orders: Non-Philatelic/Non-Custom  <= 2 Business Days.
Business Level Orders.....................  <= 5 Business Days.
Philatelic/Custom and All Other Order       <= 10 Business Days.
 Sources.
------------------------------------------------------------------------


[72 FR 72228, Dec. 19, 2007, as amended at 76 FR 61053, Oct. 3, 2011]

[[Page 36]]



              SUBCHAPTER D_ORGANIZATION AND ADMINISTRATION





PART 211_APPLICATION OF REGULATIONS--Table of Contents



Sec.
211.1 Disposition of former title 39, U.S.C.
211.2 Regulations of the Postal Service.
211.3 Executive orders and other executive pronouncements; circulars, 
          bulletins, and other issuances of the Office of Management and 
          Budget.
211.4 Interim personnel regulations.

    Authority: 39 U.S.C. 201, 202, 401(2), 402, 403, 404, 410, 1001, 
1005, 1209; Pub. L. 91-375, Secs. 3-5, 84 Stat. 773-75.

    Source: 38 FR 20402, July 31, 1973, unless otherwise noted.



Sec. 211.1  Disposition of former title 39, U.S.C.

    Except as otherwise continued in effect as postal regulations, all 
provisions of former title 39, U.S.C., which were continued in effect as 
regulations of the Postal Service by section 5(f) of the Postal 
Reorganization Act, are revoked. This revocation does not apply to 
postal regulations which embody or are derived from provisions of former 
title 39.



Sec. 211.2  Regulations of the Postal Service.

    (a) The regulations of the Postal Service consist of:
    (1) The resolutions of the Governors and the Board of Governors of 
the U.S. Postal Service and the bylaws of the Board of Governors;
    (2) The Mailing Standards of the United States Postal Service, 
Domestic Mail Manual; the Postal Operations Manual; the Administrative 
Support Manual; the Employee and Labor Relations Manual; the Financial 
Management Manual; the International Mail Manual; and those portions of 
Chapter 2 of the former Postal Service Manual and chapter 7 of the 
former Postal Manual retained in force.
    (3) Headquarters Circulars, Management Instructions, Regional 
Instructions, handbooks, delegations of authority, and other regulatory 
issuances and directives of the Postal Service or the former Post Office 
Department. Any of the foregoing may be published in the Federal 
Register and the Code of Federal Regulations.
    (b) Except as otherwise provided by law, the resolutions of the 
Governors and the Board of Governors of the U.S. Postal Service and the 
bylaws of the Board of Governors take precedence over all regulations 
issued by other authority.
    (c) The adoption, by reference or otherwise, of any rule of law or 
regulation in this or any other regulation of the Postal Service shall 
not be interpreted as any expression on the issue of whether such rule 
of law or regulation would apply to the Postal Service if it were not 
adopted as a regulation, nor shall it restrict the authority of the 
Postal Service to amend or revoke the rule so adopted at a subsequent 
time.
    (d) All regulations of the Post Office Department in effect at the 
time the U.S. Postal Service commenced operations, continue in effect, 
except as subsequently modified or repealed by the Postal Service. 
Except as otherwise continued in effect as postal regulations, all 
regulations of other agencies of the United States continued in effect 
as postal regulations by section 5(a) of the Postal Reorganization Act 
are repealed.

[38 FR 20402, July 31, 1973, as amended at 46 FR 34329, July 1, 1981; 69 
FR 36022, June 28, 2004; 69 FR 59545, Oct. 5, 2004; 70 FR 20293, Apr. 
19, 2005]



Sec. 211.3  Executive orders and other executive pronouncements; 
circulars, bulletins, and other issuances of the Office of Management

and Budget.

    (a) By virtue of the Postal Reorganization Act, certain executive 
orders, and other executive pronouncements and certain circulars, 
bulletins, and other issuances of the Office of Management and Budget or 
particular provisions thereof, or requirements therein, apply to the 
Postal Service and certain others do not apply.
    (b) It is the policy of the Postal Service to continue to comply 
with issuances of the kind mentioned in paragraph (a) of this section 
with

[[Page 37]]

which it has previously complied, unless a management decision by an 
appropriate department head is made to terminate compliance, in whole or 
in part, following advice from the General Counsel that the issuance is 
not binding, in whole or in part, on the Postal Service. This policy is 
not enforceable by any party outside the Postal Service. No party 
outside the Postal Service is authorized to use the mere non-compliance 
with this policy against the Postal Service in any way.



Sec. 211.4  Interim personnel regulations.

    (a) Continuation of Personnel Regulations of the Post Office 
Department. All regulations of the former Post Office Department dealing 
with officers and employees, in effect at the time the U.S. Postal 
Service commenced operations, continue in effect according to their 
terms until modified or repealed by the Postal Service or pursuant to a 
collective bargaining agreement under the Postal Reorganization Act.
    (b) Continuation of Personnel Provisions of Former title 39, U.S.C. 
Except as they may be inconsistent with other regulations adopted by the 
Postal Service or with a collective bargaining agreement under the 
Postal Reorganization Act, all provisions of former title 39, U.S.C., 
dealing with and applicable to postal officers and employees immediately 
prior to the commencement of operations of the Postal Service continue 
in effect as regulations of the Postal Service.
    (c) Continuation of Other Laws and Regulations as Postal 
Regulations. Except as they may be inconsistent with the provisions of 
the Postal Reorganization Act, with other regulations adopted by the 
Postal Service, or with a collective bargaining agreement under the 
Postal Reorganization Act, all regulations of Federal agencies other 
than the Postal Service or Post Office Department and all laws other 
than provisions of revised title 39, U.S.C., or provisions of other laws 
made applicable to the Postal Service by revised title 39, U.S.C., 
dealing with officers and employees applicable to postal officers and 
employees immediately prior to the commencement of operations of the 
Postal Service, continue in effect as regulations of the Postal Service. 
Any regulation or law the applicability of which is continued by 
paragraphs (a) through (c) of this section which requires any action by 
any agency other than the Postal Service or Post Office Department shall 
be deemed to require such action by the Postal Service, unless by 
agreement with the Postal Service the other agency involved consents to 
the continuation of its action.
    (d) Effect of Collective Bargaining on Certain Regulations. All 
rules and regulations continued or established by paragraphs (a) through 
(c) of this section which establish fringe benefits as defined in title 
39, U.S.C. 1005(f) of employees for whom there is a collective 
bargaining representative continue to apply until modified by a 
collective bargaining agreement concluded pursuant to the Postal 
Reorganization Act. Those rules and regulations affecting other terms 
and conditions of employment encompassed by section 8(d) of the National 
Labor Relations Act, as amended, shall continue to apply to such 
employees until such collective bargaining agreement has been concluded, 
and, unless specifically continued by such agreement, shall apply 
thereafter until modified or repealed by the Postal Service pursuant to 
its authority under title 39, U.S.C. 1001(e) and other pertinent 
provisions of the Postal Reorganization Act. In the event a condition 
occurs which shall excuse the Postal Service from continuing 
negotiations prior to the parties thereto concluding an agreement in 
accordance with the Postal Reorganization Act, the Postal Service 
reserves the right in accordance with the reorganization measures 
mandated by the Congress and consistent with the provisions of the Act, 
and any collective bargaining agreements in existence at that time, 
insofar as they do not unduly impede such reorganization measures, to 
continue, discontinue, or revise all compensation, benefits, and terms 
and conditions of employment of such employees of the Postal Service.



PART 221_GENERAL ORGANIZATION--Table of Contents



Sec.
221.1 The United States Postal Service.

[[Page 38]]

221.2 Board of Governors.
221.3 Office of Inspector General.
221.4 Corporate officers.
221.5 Headquarters organization.
221.6 Field organization.
221.7 Postal Service emblem.

    Authority: 39 U.S.C. 201, 202, 203, 204, 207, 401(2), 402, 403, 404, 
409, 1001; Inspector General Act of 1978 (Pub. L. 95-452), 5 U.S.C. App. 
3.

    Source: 69 FR 53000, Aug. 31, 2004, unless otherwise noted.



Sec. 221.1  The United States Postal Service.

    The United States Postal Service was established as an independent 
establishment within the executive branch of the government of the 
United States under the Postal Reorganization Act of August 12, 1970 
(Pub. L. 91-375, 84 Stat. 719).



Sec. 221.2  Board of Governors.

    (a) Composition. The Board of Governors consists of 11 members. Nine 
governors are appointed by the President of the United States, by and 
with the advice and consent of the Senate. Not more than five governors 
may be adherents of the same political party. The governors are chosen 
to represent the public interest generally, and they may not be 
representatives of specific interests using the Postal Service. The 
governors may be removed only for cause. The postmaster general and the 
deputy postmaster general are also voting members of the Board of 
Governors.
    (b) Responsibilities. The Board of Governors directs the exercise of 
the powers of the Postal Service, reviews the practices and policies of 
the Postal Service, and directs and controls its expenditures.



Sec. 221.3  Office of Inspector General.

    (a) Establishment. The Office of Inspector General (OIG) was 
established as an independent law enforcement and oversight agency for 
the United States Postal Service under the Inspector General Act of 1978 
(5 U.S.C. App. 3), as amended in 1988 (Pub. L. 100-504, 102 Stat. 2515) 
and 1996 (Pub. L. 104-208, 110 Stat. 3009).
    (b) Responsibilities. The OIG was established to:
    (1) Provide an independent and objective unit to conduct and 
supervise audits and investigations relating to programs and operations 
of the Postal Service.
    (2) Provide leadership and coordination and recommend policies for 
activities designed to:
    (i) Promote economy, efficiency, and effectiveness in the 
administration of postal programs and operations.
    (ii) Prevent and detect fraud and abuse in postal programs and 
operations.
    (3) Provide a means of keeping the governors and Congress fully and 
currently informed about:
    (i) Problems and deficiencies relating to the administration of 
postal programs and operations.
    (ii) The necessity for corrective action.
    (iii) The progress of corrective action.
    (4) Provide oversight of all activities of the Postal Inspection 
Service.
    (c) Inspector General--(1) Appointment. The inspector general is 
appointed for a 7-year term by the nine governors.
    (2) Responsibilities. The inspector general is responsible for the 
operations of the OIG: ensuring independent and objective audits and 
investigations of postal operations and programs; overseeing the Postal 
Inspection Service; and apprising the governors and Congress of 
significant observations. The inspector general has no direct 
responsibility for designing, installing, and/or operating postal 
operations or programs.
    (3) Extent of powers. In addition to the authority otherwise 
provided by the Inspector General Act of 1978, as amended, the inspector 
general is authorized to:
    (i) Have unrestricted access to all Postal Service operations, 
programs, records, and documents, whether in custody of the Postal 
Service or available by law, contract, or regulation.
    (ii) Have direct and prompt access to the governors when necessary 
for any purpose pertaining to the performance of the functions and 
responsibilities of the OIG.
    (iii) Administer oaths when necessary in performance of the 
functions assigned to the OIG.

[[Page 39]]

    (iv) Require by subpoena the production of all information, 
documents, reports, answers, records, accounts, papers, and other data 
and documentary evidence necessary in the performance of the functions 
of the OIG.
    (v) Select, appoint, and employ such officers and employees as may 
be necessary for carrying out the functions, powers, and duties of the 
OIG.
    (vi) Obtain the temporary or intermittent services of experts or 
consultants in accordance with applicable laws and regulations.



Sec. 221.4  Corporate officers.

    The Board of Governors determines the number of corporate officers 
and appoints the postmaster general. The governors and the postmaster 
general appoint the deputy postmaster general. The postmaster general 
appoints the remaining corporate officers. The corporate officers of the 
Postal Service are the following:
    (a) The postmaster general and chief executive officer.
    (b) The deputy postmaster general.
    (c) The chief operating officer and executive vice president.
    (d) The chief financial officer and executive vice president.
    (e) The senior vice presidents.
    (f) The general counsel and senior vice president.
    (g) The vice presidents.
    (h) The chief inspector.
    (i) The consumer advocate and vice president.
    (j) The judicial officer.
    (k) Such other officers as the Board may designate from time to 
time.



Sec. 221.5  Headquarters organization.

    (a) Postmaster General--(1) Appointment. The postmaster general 
(PMG), the chief executive officer of the Postal Service, is appointed 
by and can be removed by a majority of the governors in office.
    (2) Responsibilities. The postmaster general is responsible for the 
overall operation of the Postal Service. The postmaster general 
determines appeals from the actions of staff and corporate officers, 
except in cases where he or she has delegated authority to make a 
decision to a subordinate; such subordinate may also determine appeals 
within the authority delegated.
    (3) Extent of powers. The postmaster general, as directed by the 
Board of Governors, exercises the powers of the Postal Service to the 
extent that such exercise does not conflict with power reserved to the 
Board by law. The postmaster general is authorized to direct any 
officer, employee, or agent of the Postal Service to exercise such of 
the postmaster general's powers as the postmaster general deems 
appropriate.
    (b) Deputy Postmaster General. The deputy postmaster general is 
appointed and can be removed by the postmaster general and the governors 
in office. The deputy postmaster general reports directly to the 
postmaster general.
    (c) Chief Operating Officer and Executive Vice President. The chief 
operating officer and executive vice president is appointed by the 
postmaster general and directs all processing, distribution, and 
customer service functions.
    (d) Officers in charge of Headquarters organizational units. The 
officers in charge of Headquarters organizational units are appointed by 
the postmaster general. They report directly to the postmaster general, 
the deputy postmaster general, an executive vice president, a senior 
vice president, or another officer, as the postmaster general may 
direct.
    (e) Responsibilities. The corporate officers head the organizational 
units into which Headquarters and the field are divided. They are 
responsible for the following:
    (1) Program planning, direction, and review.
    (2) Establishment of policies, procedures, and standards.
    (3) Operational determinations not delegated to district officials.



Sec. 221.6  Field organization.

    (a) General. There are 8 areas, each with a vice president.
    (b) Area locations.

------------------------------------------------------------------------
               Area name                            Location
------------------------------------------------------------------------
Eastern...............................  Pittsburgh PA.
Great Lakes...........................  Chicago IL.
New York Metro........................  New York NY.
Northeast.............................  Windsor CT.
Pacific...............................  San Francisco CA.
Southeast.............................  Memphis TN.
Southwest.............................  Dallas TX.

[[Page 40]]

 
Western...............................  Denver CO.
------------------------------------------------------------------------

    (c) Area functions. Functional units and reporting units are as 
follows:
    (1) Functional units. Each area is divided into functional units 
responsible for finance, human resources, marketing, and operations 
support.
    (2) Reporting units. Areas are responsible for:
    (i) Customer service districts (CSDs).
    (ii) Post offices (POs).
    (iii) Vehicle maintenance facilities (VMFs).
    (iv) Processing and distribution centers (P&DCs).
    (v) Processing and distribution facilities (P&DFs).
    (vi) Air mail centers (AMCs).
    (vii) Air mail facilities (AMFs).
    (viii) Bulk mail centers (BMCs).
    (ix) Bulk mail facilities (BMFs).
    (x) Remote encoding centers (RECs).
    (d) Customer Service District Offices. Functional units and 
reporting relationships are as follows:
    (1) Functional units. The 80 district offices coordinate the day-to-
day management of post offices and customer service activities other 
than processing and distribution within a geographical area. EAS-26 and 
above postmasters report to their district manager. Each district office 
is organized into functional units responsible for post office 
operations, operations programs support, customer service support, 
finance, human resources, information technology, administrative 
support, and marketing.
    (2) Reporting relationships. Independent delivery distribution 
centers and post offices level EAS-24 and below report to the functional 
unit responsible for post office operations.
    (e) Support--(1) General. Headquarters field units and service 
centers provide support for area offices.
    (2) Headquarters field units. As assigned, Headquarters field units 
are responsible for legal services, corporate relations, human 
resources, facility services, finance, information technology, and 
supply management.



Sec. 221.7  Postal Service emblem.

    The Postal Service emblem, which is identical with the seal, is 
registered as a trademark and service mark by the U.S. Patent Office. 
Except for the emblem on official stationery, the emblem must bear one 
of the following notations: ``Reg. U.S. Pat. Off.'', ``Registered in 
U.S. Patent Office'', or the letter R enclosed within a circle.



PART 222_DELEGATIONS OF AUTHORITY--Table of Contents



Sec.
222.1 Authority to administer postal affairs.
222.2 Authority to administer oaths or function as notaries public.
222.3 Other delegation.

    Authority: 39 U.S.C. 201, 202, 203, 204, 207, 401(2), 402, 403, 404, 
409, 1001, 1011; Inspector General Act of 1978 (Pub. L. 95-452), 5 
U.S.C. App. 3.

    Source: 69 FR 53000, Aug. 31, 2004, unless otherwise noted.



Sec. 222.1  Authority to administer postal affairs.

    (a) The Postmaster General. The postmaster general has been 
authorized by the Board of Governors to exercise the powers of the 
Postal Service to the full extent that such exercise is lawful. The 
postmaster general is empowered to authorize any employee or agent of 
the Service to exercise any function vested in the Postal Service, in 
the postmaster general, or in any other Postal Service employee.
    (b) Corporate officers. Corporate officers are authorized to 
exercise the powers and functions of the Postal Service under the Postal 
Reorganization Act with respect to matters within their areas of 
responsibility, except as limited by law or by the specific terms of 
their assignment.
    (c) General counsel. The general counsel is authorized to settle 
federal tort claims under section 2672 of title 28, United States Code, 
up to $100,000.



Sec. 222.2  Authority to administer oaths or function as notaries public.

    (a) Authority to approve personnel actions and administer oaths of 
office for employment. The postmaster general, corporate officers, and 
their delegatees are authorized to effect appointments, administer oaths 
of office for employment, and take other personnel actions.

[[Page 41]]

    (b) Authority to administer oaths other than for employment. The 
following are authorized to administer oaths concerning matters other 
than employment:
    (1) Postal inspectors, with regard to any matter coming before them 
in the performance of their official duties;
    (2) Any member of a board who is assigned to conduct hearings or 
investigations in which sworn testimony, affidavits, or depositions are 
required, and each officer or employee assigned to conduct such hearings 
or investigations;
    (3) Postmasters, where required in the performance of their official 
duties.
    (c) Authority to function as notaries public. (1) Postmasters in 
Alaska have the authority to administer oaths and affirmations, take 
acknowledgments and make and execute certificates thereof, and perform 
all other functions of a notary public within Alaska when a 
certification is necessary to meet any Act of Congress or the 
Legislature of Alaska. No fees may be charged for notarial services.
    (2) An officer or employee who is a notary public shall not charge 
or receive compensation for notarial services for another officer or 
employee regarding Government business; nor for notarial services for 
any person during the hours of the notary's services to the Government, 
including the lunch period.



Sec. 222.3  Other delegation.

    (a) Documentation. All delegations of authority must be officially 
documented.
    (b) Position title. Delegations of authority must ordinarily be made 
by position title rather than by name of the individual involved. An 
officer or executive acting for a principal has the principal's full 
authority.
    (c) Level. When authority is delegated to an officer, the officers 
above that officer shall have the same authority. Delegated authority 
does not extend to aides unless an aide is acting for the supervisor 
(see paragraph (b) of this section) or is specifically authorized by the 
superior to exercise such authority.
    (d) Agreement with law. A delegation must agree with the law and 
regulations under which it is made and contain such specific limiting 
conditions as may be appropriate.
    (e) Further delegation. Authority may be further delegated unless 
prohibited by law, a regulation that expressly prohibits further 
delegation, or terms of the delegation.



PART 223_RELATIONSHIPS AND COMMUNICATION CHANNELS--Table of Contents



Sec.
223.1 Headquarters and areas.
223.2 Channels of communication, headquarters with area offices.

    Authority: 39 U.S.C. 201, 202, 203, 204, 207, 401(2), 402, 403, 404.

    Source: 69 FR 53000, Aug. 31, 2004, unless otherwise noted.



Sec. 223.1  Headquarters and areas.

    Headquarters provides policy guidance, procedures, and 
interpretation to area officials.



Sec. 223.2  Channels of communication, headquarters with area offices.

    (a) General. Headquarters organizational units formulate the 
directives to provide guidance to area officials.
    (b) Policies. Policies are issued over the signatures of the vice 
presidents of the functional organizations (unless the postmaster 
general or deputy postmaster general issues these directives 
personally). Whether published on paper or online, such policies must be 
coordinated with other appropriate organizations before issuance, and 
reviewed, published, and managed by Public Affairs and Communications. 
If within the authority of the issuer, these policies have the same 
effect as though sent by the postmaster general or deputy postmaster 
general.
    (c) Procedures. Regulations, instructions, and implementation 
guidelines are issued over the signatures of vice presidents of 
functional organizations or their accountable functional unit managers 
and used to implement programs and business activities. Whether 
published on paper or online, such procedures must be coordinated with 
other appropriate organizations before issuance and reviewed, published, 
and managed by Public Affairs and Communications.

[[Page 42]]



Inspection Service Requirements--Table of Contents





PART 230_OFFICE OF INSPECTOR GENERAL--Table of Contents



                 Subpart A_General Policy and Authority

Sec.
230.1 Establishment and authority.
230.2 Access to information and other responsibilities.
230.3 Cooperation with the Office of Inspector General.
230.4 Arrest and investigative powers of criminal investigators.
230.5 Release of information.
230.6 Contractor requirements.

  Subpart B_Rules Governing Compliance with Subpoenas, Summonses, and 
Court Orders by Postal Employees Within the Office of Inspector General 
   Where Neither the Postal Service, the United States, Nor Any Other 
                        Federal Agency Is a Party

230.10 What do these rules govern?
230.11 What special definitions apply to these rules?
230.12 Can Office of Inspector General employees testify or produce 
          documents that would assist me in my civil proceeding?
230.13 Why are restrictions on Office of Inspector General employees in 
          civil proceedings necessary?
230.14 Who owns the written or recorded notes, memoranda, reports, and 
          transcriptions made pursuant to an official investigation, 
          audit, or review conducted by an employee of the Office of 
          Inspector General?
230.15 What must an Office of Inspector General employee do if served 
          with a demand requiring the production of documents or an 
          appearance in court?
230.16 Is there a prohibition on presenting Office of Inspector General 
          reports or records during an employee's testimony?
230.17 If an attempt is made to compel production of reports and records 
          during the employee's testimony, what is an Office of 
          Inspector General employee directed to do?
230.18 If authorization to testify or produce documents is not obtained 
          by the employee, what is the employee directed to do?
230.19 What criteria will the authorizing official use to determine 
          whether to authorize testimony or production of documents?
230.20 What records will not be released?
230.21 May the General Counsel to the Inspector General and/or a U.S. 
          Department of Justice attorney represent the employee in any 
          appearance?
230.22 May another employee be substituted for the employee requested to 
          appear?.
230.23 May an Office of Inspector General employee testify as an expert 
          or opinion witness?
230.24 How is a demand for employee documents or testimony made to the 
          Office of Inspector General?
230.25 Who pays the costs incurred when the Office of Inspector General 
          responds to a demand for documents or testimony?
230.26 Do these rules affect the service of process requirements of the 
          Federal Rules of Civil Procedure (28 U.S.C. Appendix)?
230.27 Do these rules create any right or benefit enforceable by a party 
          against the Postal Service?

    Authority: 5 U.S.C. App.3; 39 U.S.C. 401(2) and 1001.

    Source: 67 FR 16025, Apr. 4, 2002, unless otherwise noted.



                 Subpart A_General Policy and Authority



Sec. 230.1  Establishment and authority.

    (a) There is established, pursuant to the Inspector General Act of 
1978, as amended (5 U.S.C. App.3), and 39 U.S.C. 410, an independent 
Office of Inspector General.
    (b) The Inspector General reports directly to the nine 
presidentially appointed Governors and shall not be supervised by, nor 
report to, the Postmaster General and/or any designee appointed by the 
Postmaster General.
    (c) The Office of Inspector General includes an Inspector General, 
an Assistant Inspector General for Audit, and an Assistant Inspector 
General for Investigations. The Office of Inspector General maintains 
its own legal counsel independent of the Postal Service Law Department 
for matters that are within the jurisdiction of the Office.
    (d) The Office of Inspector General is responsible for detecting and 
preventing fraud, waste, and abuse in the programs and operations of the 
Postal Service, including, investigating all allegations of violations 
of postal laws or misconduct by postal employees, including mail theft, 
and for reviewing existing and proposed legislation and regulations 
relating to the programs and operations of the Postal Service.

[[Page 43]]

    (e) The Inspector General has oversight responsibilities for all 
activities of the Postal Inspection Service. The Chief Postal Inspector 
must promptly report to the Inspector General significant activities and 
other information related to the Inspection Service as required by law.
    (f) The Inspector General has sole responsibility for directing the 
Office of Inspector General, including the authority to select, appoint, 
and employ such officers and employees that the Inspector General deems 
necessary and appropriate to fulfill the mission of the Office. In 
addition, the Inspector General may delegate to such officers and 
employees of the Inspector General such powers, duties, and 
responsibilities, as the Inspector General deems necessary and 
appropriate for the proper functioning of the Office.
    (g) All employees in the Office of Inspector General shall take and 
subscribe to the oath of office required of all Postal Service employees 
under 39 U.S.C. 1011, and the Inspector General, or designee, is 
authorized to administer such oath and affirmation.
    (h) The Inspector General has the authority to enter into contracts 
or other arrangements with public agencies and with private entities, 
and to make such payments as may be necessary to carry out the duties 
and responsibilities of the Office of Inspector General.
    (i) The Inspector General may hire and retain the services of expert 
consultants and other personnel as necessary to fulfill the duties and 
responsibilities of the Office.
    (j) Except as required by law, the Governors may not transfer to the 
Inspector General responsibility for performing any of the program 
activities of the Postal Service.

[67 FR 16025, Apr. 4, 2002, as amended at 72 FR 39011, July 17, 2007]



Sec. 230.2  Access to information and other responsibilities.

    (a) The Inspector General has authority to have access to all postal 
records, reports, audits, reviews, documents, papers, information, and 
other material relating to any matter related to the responsibilities of 
the Inspector General;
    (b) The Inspector General shall be the Investigating Official for 
purposes of the Program Fraud Civil Remedies Act.



Sec. 230.3  Cooperation with the Office of Inspector General.

    (a) All Postal Service employees shall cooperate with all audits, 
reviews, and investigations conducted by the Office of Inspector 
General. Deliberately submitting information known to be false or 
misleading to the Office of Inspector General or failing to cooperate 
with all audits, reviews, and investigations conducted by the Office of 
Inspector General may be grounds for disciplinary or other legal action.
    (b) Any employee who has authority to take, direct another to take, 
recommend or approve any personnel action shall not retaliate against 
any employee as a reprisal for cooperating and assisting with any Office 
of Inspector General audit, review, or investigation (including 
reporting facts or information to the Office of Inspector General that 
leads to any audit, review, or investigation).



Sec. 230.4  Arrest and investigative powers of criminal investigators.

    (a) Under the authority of 18 U.S.C. 3061, criminal investigators 
employed by the Office of Inspector General are authorized to perform 
the following functions in connection with their official duties:
    (1) Serve warrants and subpoenas issued under the authority of the 
United States;
    (2) Make arrests without warrant for offenses against the United 
States committed in their presence;
    (3) Make arrests without warrant for felonies cognizable under the 
laws of the United States if they have reasonable grounds to believe 
that the person to be arrested has committed or is committing such a 
felony;
    (4) Carry firearms; and
    (5) Make seizures of property as provided by law.
    (b) Administrative subpoenas may be served by delivering a copy to a 
person or by mailing a copy to the person's last known address. For the 
purposes of this provision, delivery of a copy includes handing it to 
the party or leaving it at the party's office or residence

[[Page 44]]

with a person of suitable age and discretion employed or residing 
therein. Service by mail is complete upon mailing.

[67 FR 16025, Apr. 4, 2002, as amended at 71 FR 12285, Mar. 10, 2006]



Sec. 230.5  Release of information.

    (a) The Office of Inspector General is responsible for maintaining 
and storing its own records and for assuring compliance with applicable 
records management, retention, and disclosure requirements.
    (b) The Inspector General or a designee serves as the official 
custodian of the records and documents of the Office of Inspector 
General and is responsible for administering the rules and regulations 
relating to public availability of Postal Service Office of Inspector 
General records insofar as the information is subject to the provisions 
of the Freedom of Information Act, contained in Section 552 of Title 5 
of the U.S. Code and 39 U.S.C. 410 (c), and/or the Privacy Act, Section 
552a of Title 5 of the U.S. Code.
    (c) Requests for records and information under the Freedom of 
Information Act or Privacy Act should be submitted in writing to the 
Office of Inspector General, Freedom of Information/Privacy Act Officer, 
located at 1735 N. Lynn Street, Arlington, Virginia, 22209-2020.
    (d) The Office of Inspector General shall comply with and adhere to 
the procedures governing the release of information maintained by the 
U.S. Postal Service as set forth in Part 265 and related provisions of 
these regulations to the extent such procedures do not conflict with any 
provision in this part.
    (e) Appeals from the denial of any request for information should be 
directed to the General Counsel for the Office of Inspector General, who 
is responsible for deciding any timely appeals authorized under this 
section.
    (f) Postal Service records in the custody of the Office of Inspector 
General that contain proprietary information will not be released by the 
Inspector General without consultation with the appropriate Postal 
Service official responsible for the record.



Sec. 230.6  Contractor requirements.

    (a) The Office of Inspector General shall be the exclusive judge of 
its contractors' qualifications.
    (b) The Office of Inspector General shall award contracts to and 
make purchases from only responsible contractors. In order to award a 
contract, a contracting officer must make an affirmative determination 
of responsibility.
    (c) A responsible prospective contractor is one who:
    (1) Has the financial and logistical resources to perform the 
contract;
    (2) Has the necessary organization, experience, and technical 
ability to perform the contract;
    (3) Is able to comply with the delivery and performance schedules 
established by the Office of Inspector General;
    (4) Has a satisfactory performance record (although a lack of 
relevant performance history shall not disqualify a prospective 
contractor from award);
    (5) Has a satisfactory record of integrity and business ethics; and,
    (6) Is otherwise qualified and eligible to receive an award under 
applicable federal laws and regulations.

[77 FR 6676, Feb. 9, 2012]



  Subpart B_Rules Governing Compliance With Subpoenas, Summonses, and 
Court Orders by Postal Employees Within the Office of Inspector General 
   Where Neither the Postal Service, the United States, Nor Any Other 
                        Federal Agency Is a Party

    Source: 68 FR 57372, Oct. 3, 2003, unless otherwise noted.



Sec. 230.10  What do these rules govern?

    (a) Subpart B governs those situations where an employee of the 
Office of Inspector General has been summoned, subpoenaed, or given a 
court order in connection with any federal, state, local court, 
administrative, or legislative proceeding.
    (b) The rules in subpart B do not apply to:

[[Page 45]]

    (1) Proceedings where the United States, the Postal Service, or any 
other federal agency is named as a party;
    (2) Congressional requests or subpoenas for testimony or documents;
    (3) Employees serving as expert witnesses in connection with 
professional and consultative services under Title 5, Code of Federal 
Regulations, Part 7001, provided they state for the record that their 
testimony reflects their personal opinions and should not be viewed as 
the official position of the Postal Service;
    (4) Employees making appearances in their private capacities in 
proceedings that do not relate to their Postal Service employment, such 
as traffic accidents or domestic relations matters; and do not involve 
professional or consultative services;
    (5) Situations where the Inspector General or an official designated 
by the Inspector General determines that the best interests of the 
public or the Office of Inspector General would be served by an 
exemption from the regulations.
    (c) These rules should be read together with the Freedom of 
Information Act (FOIA), which provides additional information about 
access to records.



Sec. 230.11  What special definitions apply to these rules?

    The following definitions apply to Subpart B:
    (a) Authorizing official means the Inspector General or an official 
designated by the Inspector General to authorize release of documents or 
permission to testify.
    (b) Case or matter means any civil proceeding before a court of law, 
administrative board, hearing officer, or other body conducting a 
judicial or administrative proceeding in which the United States, the 
Postal Service, or another federal agency is not a named party.
    (c) Demand includes any request, order, or subpoena for testimony or 
the production of documents.
    (d) Document means all records, papers, or official files, 
including, but not limited to, official letters, telegrams, memoranda, 
reports, studies, calendar and diary entries, graphs, notes, charts, 
tabulations, data analyses, statistical or information accumulations, 
records of meetings and conversations, film impressions, magnetic tapes, 
computer discs, and sound or mechanical reproductions.
    (e) Employee or Office of Inspector General employee, for the 
purpose of this subpart only, means a Postal Service employee currently 
or formerly assigned to the Postal Service Office of Inspector General, 
student interns, contractors, and employees of contractors who have 
access to Office of Inspector General information and records.
    (f) General Counsel to the Inspector General means the General 
Counsel of the Office of Inspector General, or a person authorized by 
the Inspector General to give legal advice to Office of Inspector 
General employees. General Counsel to the Inspector General does not 
mean the General Counsel of the Postal Service.
    (g) Nonpublic includes any material or information not subject to 
mandatory public disclosure under Sec. 265.6(b) or which must be kept 
confidential under the Inspector General Act, 5 U.S.C. App. 3.
    (h) Office of Inspector General means the organizational unit within 
the Postal Service as outlined in part 221 of this chapter.
    (i) Office of Inspector General Manual is the document containing 
the standard operating procedures for criminal investigators, 
evaluators, and other employees of the Office of Inspector General.
    (j) Reports include all written reports, letters, recordings, or 
other memoralizations made in conjunction with the duties of an Office 
of Inspector General employee.
    (k) Testify or testimony includes both in-person oral statements 
before any body conducting a judicial or administrative proceeding and 
statements made in depositions, answers to interrogatories, 
declarations, affidavits, or other similar documents.

[[Page 46]]



Sec. 230.12  Can Office of Inspector General employees testify or 
produce documents that would assist me in my civil proceeding?

    No current or former employee within the Office of Inspector General 
may testify or produce documents concerning information acquired in the 
course of employment or as a result of his or her relationship with the 
Postal Service in any proceeding to which this subpart applies (see 
Sec. 230.10), unless authorized to do so by an authorizing official.



Sec. 230.13  Why are restrictions on Office of Inspector General 
employees in civil proceedings necessary?

    The restrictions are intended to reduce the risk of inappropriate 
disclosures that might affect the operations of the Office of Inspector 
General; prevent the expenditure of Office of Inspector General or 
Postal Service resources for private purposes; and ensure that employee 
time is serving the best interests of the public.



Sec. 230.14  Who owns the written or recorded notes, memoranda, reports,
and transcriptions made pursuant to an official investigation, audit, 

or review conducted by an employee of the Office of Inspector General?

    Notes, memoranda, reports, and transcriptions, whether written or 
recorded and made pursuant to an official investigation, audit, or 
review conducted by an employee of the Office of Inspector General, are 
the property of the Office of Inspector General.



Sec. 230.15  What must an Office of Inspector General employee do if 
served with a demand requiring the production of documents or an 

appearance in court?

    If an Office of Inspector General employee is served with a demand 
requiring the production of documents or an appearance in court, the 
employee must promptly inform the authorizing official of the nature of 
the documents or testimony sought and all relevant facts and 
circumstances. Office of Inspector General employees are directed to 
appear as the subpoena or summons may require, but may not testify or 
produce documents unless authorized.



Sec. 230.16  Is there a prohibition on presenting Office of Inspector
General reports or records during an employee's testimony?

    Yes, Office of Inspector General reports or records will not be 
presented during an employee's testimony, unless authorized by an 
authorizing official.



Sec. 230.17  If an attempt is made to compel production of reports and
records during the employee's testimony, what is an Office of Inspector

General employee directed to do?

    If an attempt is made to compel production of reports and records 
during the employee's testimony, the employee is directed to decline to 
produce the item or information and to state that the material cannot be 
disclosed or produced without the approval of the authorizing official. 
All such requests, 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 of 
Information Act and shall be handled pursuant to 39 CFR 230.5.



Sec. 230.18  If authorization to testify or produce documents is not 
obtained by the employee, what is the employee directed to do?

    Absent written authorization from the authorizing official, the 
employee must respectfully decline to produce the requested documents, 
testify, or otherwise disclose the requested information. If the 
authorization is denied or not received by the return date, the 
employee, together with counsel, where appropriate, shall appear at the 
stated time and place, produce a copy of this section, and respectfully 
decline to testify or produce any document on the basis of the 
regulations in this section.



Sec. 230.19  What criteria will the authorizing official use to
determine whether to authorize testimony or production of documents?

    (a) The authorizing official will determine whether testimony or the 
production of documents will be authorized according to the following 
criteria:
    (1) Statutory restrictions, as well as any legal objection, 
exemption, or privilege that may apply;

[[Page 47]]

    (2) Relevant legal standards for disclosure of nonpublic information 
and documents;
    (3) Office of Inspector General rules and regulations;
    (4) The public interest;
    (5) Minimizing or preventing expenditures of Office of Inspector 
General and Postal Service time and resources solely for private 
purposes.
    (6) Minimizing the appearance of improperly favoring one litigant 
over another;
    (7) Minimizing the possibility that the public will misconstrue 
variances between personal opinions of Office of Inspector General 
employees and agency policy; and
    (8) Preserving the integrity of the administrative process.
    (b) Permission to testify or to release documents in all cases will 
be limited to matters outlined in the affidavit or declaration described 
in section 230.24 of this part or to such matters as deemed appropriate 
by the authorizing official. If the authorizing official allows the 
release of documents or testimony to be given by an employee, 
arrangements shall be made for the taking of testimony or receipt of 
documents by the method least disruptive to the employee's official 
duties. Testimony may, for example, be provided by affidavits, answers 
to interrogatories, written depositions, or depositions transcribed, 
recorded, or preserved by any other means allowable by law.
    (c) Upon issuance of an unfavorable final determination by the 
authorizing official, the party or the party's counsel seeking testimony 
or documents may consult or negotiate with the authorizing official to 
refine and limit the demand.
    (d) The Office of Inspector General will offer all possible 
assistance to the courts, but the question of disclosing information for 
which an exemption may be claimed is a matter of discretion that rests 
with the authorizing official. If in the opinion of the authorizing 
official the documents should not be released or testimony should not be 
furnished, that determination will be final.



Sec. 230.20  What records will not be released?

    Generally, any record demanded by a subpoena duces tecum or 
appropriate court order can be released by a properly authorized Office 
of Inspector General employee, except for the following:
    (a) Records required to remain confidential by the Freedom of 
Information Act, the Privacy Act, and parts 230 and 262 of this chapter,
    (b) Records containing information relating to an employee's 
security or loyalty;
    (c) Original records;
    (d) Office of Inspector General criminal investigative reports, 
unless there is specific authorization by an authorizing official, after 
consulting with General Counsel to the Inspector General; and
    (e) The Office of Inspector General Manual and other operating 
instructions issued to Office of Inspector General employees, unless 
there is specific authorization by an authorizing official, after 
consultation with the General Counsel to the Inspector General. If the 
requested information relates to confidential investigative techniques, 
confidential sources of information, or information that must be kept 
confidential under the Inspector General Act, 5 U.S.C. app. 3, because 
release of the information would adversely affect the duties and 
obligations or law enforcement mission of the Office of Inspector 
General, the subpoenaed official, through the Inspector General, or an 
authorizing official, may request an in camera, ex parte conference to 
determine the necessity for the release of the information.



Sec. 230.21  May the General Counsel to the Inspector General and/or a 
U.S. Department of Justice attorney represent the employee in any 

appearance?

    At the option of the Attorney General, or an authorizing official, 
an Office of Inspector General legal counsel may represent and assist 
the employee. The authorizing official designated by the Inspector 
General may also request assistance from the U.S. Department of Justice 
in representing and assisting the employee in any appearance.

[[Page 48]]



Sec. 230.22  May another employee be substituted for the employee 
requested to appear?

    The Inspector General or designee may, where appropriate, designate 
another Office of Inspector General employee to respond to a request for 
an appearance.



Sec. 230.23  May an Office of Inspector General employee testify as an
expert or opinion witness?

    No, an Office of Inspector General employee may not testify as an 
expert or opinion witness with regard to any matter arising out of the 
employee's duties or functions at the Office of Inspector General for 
any party other than the United States, except that in extraordinary 
circumstances, and where the anticipated testimony will not be adverse 
to the interest of the United States, the authorizing official may 
approve such testimony in private litigation. A litigant must first 
obtain the permission of an authorizing official designated by the 
Inspector General before designating an Office of Inspector General 
employee as an expert or opinion witness.



Sec. 230.24  How is a demand for employee documents or testimony made
to the Office of Inspector General?

    (a) All demands for the production of nonpublic documents or 
testimony of Office of Inspector General employees concerning matters 
relating to their official duties and subject to the conditions set 
forth in Sec. 230.10(b) shall be made in writing and conform to the 
requirements outlined in paragraph (b) of this section.
    (b) Before or simultaneously with service of a demand, the 
requesting party shall serve on the General Counsel to the Inspector 
General at the Office of Inspector General, 1735 North Lynn Street, 
Arlington, VA 22209-2020, a summons or subpoena issued in accordance 
with the appropriate rules of civil procedure along with an affidavit or 
sworn declaration containing the following information:
    (1) The title of the case and the forum where it will be heard;
    (2) The party's interest in the case;
    (3) The reasons for the demand;
    (4) A showing that the requested information is available, by law, 
to a party outside the Postal Service;
    (5) If testimony is sought, a detailed summary of the anticipated 
testimony;
    (6) If testimony is sought, a showing that Office of Inspector 
General records could not be provided and used in place of the requested 
testimony;
    (7) The intended use of the documents or testimony; and
    (8) An affirmative statement that the documents or testimony is 
necessary for defending or prosecuting the case at issue.

[68 FR 57372, Oct. 3, 2003, as amended at 71 FR 11161, Mar. 6, 2006]



Sec. 230.25  Who pays the costs incurred when the Office of Inspector
General responds to a demand for documents or testimony?

    (a) Unless determined by 28 U.S.C. 1821 or other applicable statute, 
the costs of providing testimony, including the cost of transcripts, 
shall be borne by the requesting party. Furthermore, unless limited by 
statute, such costs shall also include reimbursement to the Office of 
Inspector General for the usual and ordinary expenses attendant upon the 
employee's absence from his or her official duties in connection with 
the case or matter, including the employee's salary and applicable 
overhead charges, and any necessary travel expenses as follows:
    (1) The Office of Inspector General is authorized to charge 
reasonable fees to parties demanding documents or information. Such 
fees, calculated to reimburse the Office of Inspector General for the 
cost of responding to a demand, may include the costs of time expended 
by Office of Inspector General employees, including attorneys, to 
process and respond to the demand; attorney time for reviewing the 
demand and for legal work in connection with the demand; expenses 
generated by equipment used to search for, produce, and copy the 
requested information; and travel costs of the employee and the agency 
attorney or other representative, including lodging and per diem. Such 
fees shall be assessed at the rates and in the manner specified in 39 
CFR 265.9.
    (2) At the discretion of the Office of Inspector General where 
appropriate,

[[Page 49]]

fees and costs may be estimated and collected before testimony is given.
    (b) The provisions of Subpart B do not affect rights and procedures 
governing public access to official documents pursuant to the Freedom of 
Information Act, 5 U.S.C. 552a.



Sec. 230.26  Do these rules affect the service of process requirements
of the Federal Rules of Civil Procedure (28 U.S.C. Appendix)?

    No, the rules in subpart B in no way modify the requirements of the 
Federal Rules of Civil Procedure regarding service of process.



Sec. 230.27  Do these rules create any right or benefit enforceable
by a party against the Postal Service?

    No, subpart B is intended to provide instructions to Office of 
Inspector General employees and members of the public. It does not 
create any right or benefit, substantive or procedural, enforceable by 
any party against the Office of Inspector General or the Postal Service.



PART 231_PROTECTION OF POST OFFICES--Table of Contents



Sec.
231.1 Responsibility.
231.2 Security Control Officer.



Sec. 231.1  Responsibility.

    (a) The protection of mail, postal funds, and property is a 
responsibility of every postal employee.
    (b) The Chief Postal Inspector is designated as the Security Officer 
for the U.S. Postal Service. That official is responsible for the 
issuance of instructions and regulations pertaining to security 
requirements within the Postal Service.

(39 U.S.C. 401)

[36 FR 4762, Mar. 12, 1971]



Sec. 231.2  Security Control Officer.

    The postmaster or a supervisor designated by the postmaster shall 
act as Security Control Officer for each post office. The Security 
Control Officer shall be responsible for the general security of the 
post office, its stations and branches, in accordance with rules and 
regulations issued by the Chief Postal Inspector.

(39 U.S.C. 401)

[36 FR 4762, Mar. 12, 1971]



PART 232_CONDUCT ON POSTAL PROPERTY--Table of Contents



    Authority: 18 U.S.C. 13, 3061, 3571; 21 U.S.C. 802, 844; 39 U.S.C. 
401, 403(b)(3), 404(a)(7), 1201(2).



Sec. 232.1  Conduct on postal property.

    (a) Applicability. This section applies to all real property under 
the charge and control of the Postal Service, to all tenant agencies, 
and to all persons entering in or on such property. This section shall 
be posted and kept posted at a conspicuous place on all such property. 
This section shall not apply to--
    (i) Any portions of real property, owned or leased by the Postal 
Service, that are leased or subleased by the Postal Service to private 
tenants for their exclusive use;
    (ii) With respect to sections 232.1(h)(1) and 232.1(o), sidewalks 
along the street frontage of postal property falling within the property 
lines of the Postal Service that are not physically distinguishable from 
adjacent municipal or other public sidewalks, and any paved areas 
adjacent to such sidewalks that are not physically distinguishable from 
such sidewalks.
    (b) Inspection, recording presence. (1) Purses, briefcases, and 
other containers brought into, while on, or being removed from the 
property are subject to inspection. However, items brought directly to a 
postal facility's customer mailing acceptance area and deposited in the 
mail are not subject to inspection, except as provided by section 274 of 
the Administrative Support Manual. A person arrested for violation of 
this section may be searched incident to that arrest.
    (2) Vehicles and their contents brought into, while on, or being 
removed from restricted nonpublic areas are subject to inspection. A 
prominently displayed sign shall advise in advance that vehicles and 
their contents are subject to inspection when entering the restricted 
nonpublic area, while in the confines of the area, or

[[Page 50]]

when leaving the area. Persons entering these areas who object and 
refuse to consent to the inspection of the vehicle, its contents, or 
both, may be denied entry; after entering the area without objection, 
consent shall be implied. A full search of a person and any vehicle 
driven or occupied by the person may accompany an arrest.
    (3) Except as otherwise ordered, properties must be closed to the 
public after normal business hours. Properties also may be closed to the 
public in emergency situations and at such other times as may be 
necessary for the orderly conduct of business. Admission to properties 
during periods when such properties are closed to the public may be 
limited to authorized individuals who may be required to sign the 
register and display identification documents when requested by security 
force personnel or other authorized individuals.
    (c) Preservation of property. Improperly disposing of rubbish, 
spitting, creating any hazard to persons or things, throwing articles of 
any kind from a building, climbing upon the roof or any part of a 
building, or willfully destroying, damaging, or removing any property or 
any part thereof, is prohibited.
    (d) Conformity with signs and directions. All persons in and on 
property shall comply with official signs of a prohibitory or directory 
nature, and with the directions of security force personnel or other 
authorized individuals.
    (e) Disturbances. Disorderly conduct, or conduct which creates loud 
and unusual noise, or which impedes ingress to or egress from post 
offices, or otherwise obstructs the usual use of entrances, foyers, 
corridors, offices, elevators, stairways, and parking lots, or which 
otherwise tends to impede or disturb the public employees in the 
performance of their duties, or which otherwise impedes or disturbs the 
general public in transacting business or obtaining the services 
provided on property, is prohibited.
    (f) Gambling. Participating in games for money or other personal 
property, the operation of gambling devices, the conduct of a lottery or 
pool, or the selling or purchasing of lottery tickets, is prohibited on 
postal premises. In accordance with 20 U.S.C. 107a(a)(5), this 
prohibition does not apply to the vending or exchange of State Lottery 
tickets at vending facilities operated by licensed blind persons where 
such lotteries are authorized by state law.
    (g) Alcoholic beverages, drugs, and smoking. (1) A person under the 
influence of an alcoholic beverage or any drug that has been defined as 
a ``controlled substance'' may not enter postal property or operate a 
motor vehicle on postal property. The possession, sale, or use of any 
``controlled substance'' (except when permitted by law) or the sale or 
use of any alcoholic beverage (except as authorized by the Postmaster 
General or designee) on postal premises is prohibited. The term 
``controlled substance'' is defined in section 802 of title 21 U.S.C.
    (2) Smoking (defined as having a lighted cigar, cigarette, pipe, or 
other smoking material) is prohibited in all postal buildings and office 
space, including public lobbies.
    (h) Soliciting, electioneering, collecting debts, vending, and 
advertising. (1) Soliciting alms and contributions, campaigning for 
election to any public office, collecting private debts, soliciting and 
vending for commercial purposes (including, but not limited to, the 
vending of newspapers and other publications), displaying or 
distributing commercial advertising, collecting signatures on petitions, 
polls, or surveys (except as otherwise authorized by Postal Service 
regulations), are prohibited. These prohibitions do not apply to:
    (i) Commercial or nonprofit activities performed under contract with 
the Postal Service or pursuant to the provisions of the Randolph-
Sheppard Act;
    (ii) Posting notices on bulletin boards as authorized in Sec. 
243.2(a) of this chapter;
    (iii) The solicitation of Postal Service and other Federal military 
and civilian personnel for contributions by recognized agencies as 
authorized under Executive Order 12353, of March 23, 1982.
    (2) Solicitations and other actions which are prohibited by 
paragraph (h)(1) of this section when conducted on Postal Service 
property should not be directed by mail or telephone to postal

[[Page 51]]

employees on Postal Service property. The Postal Service will not accept 
or distribute mail or accept telephone calls directed to its employees 
which are believed to be contrary to paragraph (h)(1) of this section.
    (3) Leafleting, distributing literature, picketing, and 
demonstrating by members of the public are prohibited in lobbies and 
other interior areas of postal buildings open to the public. Public 
assembly and public address, except when conducted or sponsored by the 
Postal Service, are also prohibited in lobbies and other interior areas 
of postal building open to the public.
    (4) Voter registration. Voter registration may be conducted on 
postal premises only with the approval of the postmaster or installation 
head provided that all of the following conditions are met:
    (i) The registration must be conducted by government agencies or 
nonprofit civic leagues or organizations that operate for the promotion 
of social welfare but do not participate or intervene in any political 
campaign on behalf of any candidate or political party for any public 
office.
    (ii) Absolutely no partisan or political literature may be 
available, displayed, or distributed. This includes photographs, 
cartoons, and other likenesses of elected officials and candidates for 
public office.
    (iii) The registration is permitted only in those areas of the 
postal premises regularly open to the public.
    (iv) The registration must not interfere with the conduct of postal 
business, postal customers, or postal operations.
    (v) The organization conducting the voter registration must provide 
and be responsible for any equipment and supplies.
    (vi) Contributions may not be solicited.
    (vii) Access to the workroom floor is prohibited.
    (viii) The registration activities are limited to an appropriate 
period before an election.
    (5) Except as part of postal activities or activities associated 
with those permitted under paragraph (h)(4) of this section, no tables, 
chairs, freestanding signs or posters, structures, or furniture of any 
type may be placed in postal lobbies or on postal walkways, steps, 
plazas, lawns or landscaped areas, driveways, parking lots, or other 
exterior spaces.
    (i) Photographs for news, advertising, or commercial purposes. 
Except as prohibited by official signs or the directions of security 
force personnel or other authorized personnel, or a Federal court order 
or rule, photographs for news purposes may be taken in entrances, 
lobbies, foyers, corridors, or auditoriums when used for public 
meetings. Other photographs may be taken only with the permission of the 
local postmaster or installation head.
    (j) Dogs and other animals. Dogs and other animals, except those 
used to assist persons with disabilities, must not be brought upon 
postal property for other than official purposes.
    (k) Vehicular and pedestrian traffic. (1) Drivers of all vehicles in 
or on property shall be in possession of a current and valid state or 
territory issued driver's license and vehicle registration, and the 
vehicle shall display all current and valid tags and licenses required 
by the jurisdiction in which it is registered.
    (2) Drivers who have had their privilege or license to drive 
suspended or revoked by any state or territory shall not drive any 
vehicle in or on property during such period of suspension or 
revocation.
    (3) Drivers of all vehicles in or on property shall drive in a 
careful and safe manner at all times and shall comply with the signals 
and directions of security force personnel, other authorized 
individuals, and all posted traffic signs.
    (4) The blocking of entrances, driveways, walks, loading platforms, 
or fire hydrants in or on property is prohibited.
    (5) Parking without authority, parking in unauthorized locations or 
in locations reserved for other persons, or continuously in excess of 18 
hours without permission, or contrary to the direction of posted signs 
is prohibited. This section may be supplemented by the postmaster or 
installation head from time to time by the issuance and posting of 
specific traffic directives as may be required. When so issued and

[[Page 52]]

posted such directives shall have the same force and effect as if made a 
part hereof.
    (l) Weapons and explosives. Notwithstanding the provisions of any 
other law, rule or regulation, no person while on postal property may 
carry firearms, other dangerous or deadly weapons, or explosives, either 
openly or concealed, or store the same on postal property, except for 
official purposes.
    (m) Nondiscrimination. There must be no discrimination by 
segregation or otherwise against any person or persons because of race, 
color, religion, national origin, sex, or disability, in furnishing, or 
by refusing to furnish to such person or persons the use of any facility 
of a public nature, including all services, privileges, accommodations, 
and activities provided on postal property.
    (n) Conduct with regard to meetings of the Board of Governors. (1) 
Without the permission of the chairman no person may participate in, 
film, televise, or broadcast any portion of any meeting of the Board or 
any subdivision or committee of the Board. Any person may electronically 
record or photograph a meeting, as long as that action does not tend to 
impede or disturb the members of the Board in the performance of their 
duties, or members of the public while attempting to attend or observe a 
meeting.
    (2) Disorderly conduct, or conduct which creates loud or unusual 
noise, obstructs the ordinary use of entrances, foyers, corridors, 
offices, meeting rooms, elevators, stairways, or parking lots, or 
otherwise tends to impede or disturb the members of the Board in the 
performance of their duties, or members of the public while attempting 
to attend or observe a meeting of the Board or of any subdivision, or 
committee of the Board, is prohibited.
    (3) Any person who violates paragraph (n) (1) or (2) of this section 
may, in addition to being subject to the penalties prescribed in 
paragraph (p) of this section, be removed from and barred from 
reentering postal property during the meeting with respect to which the 
violation occurred.
    (4) A copy of the rules of this section governing conduct on postal 
property, including the rules of this paragraph appropriately 
highlighted, shall be posted in prominent locations at the public 
entrances to postal property and outside the meeting room at any meeting 
of the Board of Governors or of any subdivision or committee of the 
Board.
    (o) Depositing literature. Depositing or posting handbills, flyers, 
pamphlets, signs, poster, placards, or other literature, except official 
postal and other Governmental notices and announcements, on the grounds, 
walks, driveways, parking and maneuvering areas, exteriors of buildings 
and other structures, or on the floors, walls, stairs, racks, counters, 
desks, writing tables, window-ledges, or furnishings in interior public 
areas on postal premises, is prohibited. This prohibition does not apply 
to:
    (1) Posting notices on bulletin boards as authorized in Sec. 
243.2(a) of this chapter;
    (2) Interior space assigned to tenants for their exclusive use;
    (3) Posting of notices by U.S. Government-related organizations, 
such as the Inaugural Committee as defined in 36 U.S.C. 501.
    (p) Penalties and other law. (1) Alleged violations of these rules 
and regulations are heard, and the penalties prescribed herein are 
imposed, either in a Federal district court or by a Federal magistrate 
in accordance with applicable court rules. Questions regarding such 
rules should be directed to the regional counsel for the region 
involved.
    (2) Whoever shall be found guilty of violating the rules and 
regulations in this section while on property under the charge and 
control of the Postal Service is subject to a fine as provided in 18 
U.S.C. 3571 or imprisonment of not more than 30 days, or both. Nothing 
contained in these rules and regulations shall be construed to abrogate 
any other Federal laws or regulations or any State and local laws and 
regulations applicable to any area in which the property is situated.
    (q) Enforcement. (1) Members of the U.S. Postal Service security 
force shall exercise the powers provided by 18 U.S.C. 3061(c)(2) and 
shall be responsible for enforcing the regulations in

[[Page 53]]

this section in a manner that will protect Postal Service property and 
persons thereon.
    (2) Local postmasters and installation heads may, pursuant to 40 
U.S.C. 1315(d)(3) and with the approval of the chief postal inspector or 
his designee, enter into agreements with State and local enforcement 
agencies to insure that these rules and regulations are enforced in a 
manner that will protect Postal Service property.
    (3) Postal Inspectors, Office of Inspector General Criminal 
Investigators, and other persons designated by the Chief Postal 
Inspector may likewise enforce regulations in this section.

[37 FR 24346, Nov. 16, 1972]

    Editorial Note: For Federal Register citations affecting Sec. 
232.1, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and at www.fdsys.gov.



PART 233_INSPECTION SERVICE AUTHORITY--Table of Contents



Sec.
233.1 Arrest and investigative powers of Postal Inspectors.
233.2 Circulars and rewards.
233.3 Mail covers.
233.4 Withdrawal of mail privileges.
233.5 Requesting financial records from a financial institution.
233.6 Test purchases under 39 U.S.C. 3005(e).
233.7 Forfeiture authority and procedures.
233.8 Expedited forfeiture proceedings for property seizures based on 
          violations involving the possession of personal use quantities 
          of a controlled substance.
233.9 Regulations governing remission or mitigation of administrative, 
          civil, and criminal forfeitures.
233.10 [Reserved]
233.11 Mail reasonably suspected of being dangerous to persons or 
          property.
233.12 Civil penalties.

    Authority: 39 U.S.C. 101, 102, 202, 204, 401, 402, 403, 404, 406, 
410, 411, 1003, 3005(e)(1); 12 U.S.C. 3401-3422; 18 U.S.C. 981, 983, 
1956, 1957, 2254, 3061; 21 U.S.C. 881; Omnibus Budget Reconciliation Act 
of 1996, sec. 662 (Pub. L. 104-208).



Sec. 233.1  Arrest and investigative powers of Postal Inspectors.

    (a) Authorization. Postal Inspectors are authorized to perform the 
following functions in connection with their official duties:
    (1) Serve warrants and subpoenas issued under the authority of the 
United States;
    (2) Make arrests without warrant for offenses against the United 
States committed in their presence;
    (3) Make arrests without warrant for felonies cognizable under the 
laws of the United States if they have reasonable grounds to believe 
that the person to be arrested has committed or is committing such a 
felony;
    (4) Carry firearms; and
    (5) Make seizures of property as provided by law.
    (b) Limitations. The powers granted by paragraph (a) of this section 
shall be exercised only--
    (1) In the enforcement of laws regarding property in the custody of 
the Postal Service, property of the Postal Service, the use of the 
mails, and other postal offenses. With the exception of enforcing laws 
related to the mails:
    (i) The Office of Inspector General will investigate all allegations 
of violations of postal laws or misconduct by postal employees, 
including mail theft; and
    (ii) The Inspection Service will investigate all allegations of 
violations of postal laws or misconduct by all other persons.
    (2) To the extent authorized by the Attorney General pursuant to 
agreement between the Attorney General and the Postal Service, in the 
enforcement of other laws of the United States, if the Attorney General 
determines that the violation of such laws will have a detrimental 
effect upon the operations of the Postal Service.
    (c) Administrative subpoenas may be served by delivering a copy to a 
person or by mailing a copy to his or her last known address. For the 
purposes of this provision, delivery of a copy includes handing it to 
the party or leaving it at the party's office or residence with a person 
of suitable age and discretion employed or residing therein. Service by 
mail is complete upon mailing.

[[Page 54]]

    (d) In conducting any investigation, Postal Inspectors are 
authorized to accept, maintain custody of, and deliver mail.

[36 FR 4762, Mar. 12, 1971, as amended at 38 FR 19124, July 18, 1973. 
Redesignated at 46 FR 34330, July 1, 1981; 52 FR 12901, Apr. 20, 1987; 
56 FR 55823, Oct. 30, 1991; 60 FR 5581, Jan. 30, 1995; 67 FR 16024, Apr. 
4, 2002; 72 FR 39011, July 17, 2007]



Sec. 233.2  Circulars and rewards.

    (a) Wanted circulars. The Inspection Service issues wanted circulars 
to assist in locating and arresting fugitive postal offenders. Post 
these circulars in the most conspicuous place in the post office lobby 
and in other prominent places. Post near the Notice of Reward sign. 
Telephone or telegraph immediately to the postal inspector in charge any 
information on the possible location of the person wanted. Remove and 
destroy circulars immediately when notified of their cancellation or 
when the circular is not listed in the periodic Postal Bulletin notices 
of current wanted circulars.
    (b) Rewards. (1) Rewards will be paid up to the amounts and under 
the conditions stated in Poster 296, Notice of Reward, for the arrest 
and conviction of persons for the following postal offenses:
    (i) Robbery or attempted robbery.
    (ii) Mailing or causing to be mailed bombs, explosives, poison, 
weapons of mass destruction, or controlled substances.
    (iii) Post office burglary.
    (iv) Stealing or unlawful possession of mail or money or property of 
the United States under the custody or control of the Postal Service, 
including property of the Postal Service.
    (v) Destroying, obstructing or retarding the passage of mail.
    (vi) Altering, counterfeiting, forging, unlawful uttering or passing 
of postal money orders; or the unlawful use, counterfeiting or forgery 
of postage stamps or other postage; or the use, sale or possession with 
intent to use or sell, any forged or counterfeited postage stamp or 
other postage.
    (vii) Assault on postal employee.
    (viii) Murder or manslaughter of a postal employee.
    (ix) Mailing or receiving through the mail any visual depiction 
involving the use of a minor engaging in sexually explicit conduct, or 
the use of the mail to facilitate any crime relating to the sexual 
exploitation of children.
    (x) Mailing or causing to be mailed any money which has been 
obtained illegally, or the use of Postal Money Orders to launder illicit 
proceeds.
    (2) The postmaster or a designated employee should personally 
present reward notices to representatives of firms transporting mail, 
security or detective units of firms, police officers, sheriffs and 
their deputies, if practicable, and encourage their cooperation in 
protecting mail and Postal Service property. (See 273.14 of the 
Administrative Support Manual).

    Note: The text of Poster 296, referred to in paragraph (b)(1) of 
this section, reads as follows:
The United States Postal Service offers a reward up to the amounts shown 
for information and services leading to the arrest and conviction of any 
person for the following offenses:
    Murder or Manslaughter, $100,000. The unlawful killing of any 
officer or employee of the Postal Service while engaged in or on account 
of the performance of their official duties.
    Bombs or Explosives, $100,000. Mailing or causing to be mailed any 
bombs or explosives which may kill or harm another, or injure the mails 
or other property, or the placing of any bomb or explosive in a postal 
facility, vehicle, depository or receptacle established, approved or 
designated by the Postmaster General for the receipt of mail.
    Offenses Involving the Mailing of Threatening Communications, 
Weapons of Mass Destruction, Poisons, or Hazardous Materials, $100,000. 
Mailing or causing to be mailed any threatening communications, actual 
or simulated weapons of mass destruction, dangerous chemicals or 
biological materials, which may kill or injure another, or injure the 
mails or other property.
    Assault on Postal Employees, $50,000. Forcibly assaulting any 
officer or employee of the Postal Service while engaged in or on account 
of the performance of their official duties.
    Controlled Substances, Illegal Drugs, or Cash Proceeds from Illegal 
Drugs, $50,000. Mailing or causing to be mailed any controlled 
substances, illegal drugs, or proceeds from the sale of illegal drugs.
    Money Laundering, $50,000. Mailing or causing to be mailed any money 
which has been obtained illegally, or the use of postal money orders to 
launder illicit proceeds.

[[Page 55]]

    Postage or Meter Tampering, $50,000. The unlawful use, reuse, or 
forgery of postage stamps, postage meter stamps, permit imprints or 
other postage; or the use, sale or possession with intent to use or 
sell, any used, forged or counterfeited postage stamp or other postage.
    Robbery, $50,000. Robbery or attempted robbery of any custodian of 
any mail, or money or other property of the United States under the 
control and jurisdiction of the United States Postal Service.
    Sexual Exploitation of Children, $50,000. The use of the mails to 
traffic in child pornography, or facilitate any other crime relating to 
the sexual exploitation of children.
    Burglary of Post Office, $10,000. Breaking into, or attempting to 
break into, a post office, station, branch, or building used wholly or 
partially as a post office, or any building or area in a building where 
the business of the Postal Service is conducted, with intent to commit a 
larceny or other depredation therein.
    Offenses Involving Postal Money Orders, $10,000. Theft or possession 
of stolen postal money orders or any Postal Service equipment used to 
imprint money orders; or altering, counterfeiting, forging, unlawful 
uttering, or passing of postal money orders.
    Theft, Possession, Destruction, or Obstruction of Mail, $10,000. 
Theft or attempted theft of any mail, or the contents thereof, or the 
theft of money or any other property of the United States under the 
custody and control of the United States Postal Service from any 
custodian, postal vehicle, railroad depot, airport, or other transfer 
point, post office or station or receptacle or depository established, 
approved, or designated by the Postmaster General for the receipt of 
mail; or destroying, obstructing, or retarding the passage of mail, or 
any carrier or conveyance carrying the mail.
    Workers' Compensation Fraud, $10,000. Defrauding the Workers' 
Compensation Program by any current or former postal employee.
    Related Offenses
    The United States Postal Service also offers rewards as stated above 
for information and services leading to the arrest and conviction of any 
person: (1) For being an accessory to any of the above crimes; (2) for 
receiving or having unlawful possession of any mail, money or property 
secured through the above crimes; and (3) for conspiracy to commit any 
of the above crimes.
    General Provisions
    1. The Postal Inspection Service investigates the above described 
crimes. Information concerning the violations, requests for applications 
for rewards, and written claims for rewards should be furnished to the 
nearest Postal Inspector. The written claim for reward payment must be 
submitted within six months from the date of conviction of the offender, 
or the date of formally deferred prosecution or the date of the 
offender's death, if killed in committing a crime or resisting lawful 
arrest for one of the above offenses.
    2. The amount of any reward will be based on the significance of 
services rendered, character of the offender, risks and hazards 
involved, time spent, and expenses incurred. Amounts of rewards shown 
above are the maximum amounts which will be paid.
    3. The term ``custodian'' as used herein includes any person having 
lawful charge, control, or custody of any mail matter, or any money or 
other property of the United States under the control and jurisdiction 
of the United States Postal Service.
    4. The Postal Service reserves the right to reject a claim for 
reward where there has been collusion, criminal involvement, or improper 
methods have been used to effect an arrest or to secure a conviction. It 
has the right to allow only one reward when several persons were 
convicted of the same offense, or one person was convicted of several of 
the above offenses. Postal employees are not eligible to receive a 
reward for the offenses listed above, other than Workers' Compensation 
fraud. Employees assigned to the Postal Inspection Service, the General 
Counsel's office, and those who manage or administer the Injury 
Compensation Program are not eligible to receive rewards.
    5. Other rewards not specifically referred to in this notice may be 
offered upon the approval of the Chief Postal Inspector (39 U.S.C. 
404(a)(8)).

    (c) The Chief Postal Inspector or his delegate is authorized to pay 
a reward to any person who provides information leading to the detection 
of persons or firms who obtain, or seek to obtain, funds, property, or 
services from the Postal Service based upon false or fraudulent 
activities, statements or claims. The decision as to whether a reward 
shall be paid and the amount thereof shall be solely within the 
discretion of the Chief Postal Inspector or his delegate and the 
submission of information or a claim for a reward shall not establish a 
contractual right to receive any reward. The reward shall not exceed 
one-half of the amount collected by the Postal Service as a result of 
civil or criminal proceedings to recover losses or penalties as a result 
of false or fraudulent claims or statements submitted to the Postal 
Service. Postal employees assigned to the Postal Inspection Service or 
the Law Department are not eligible to receive a

[[Page 56]]

reward under this section for information obtained while so employed. 
The Chief Inspector may establish such procedures and forms as may be 
desirable to give effect to this section including procedures to protect 
the identity of persons claiming rewards under this section.

[36 FR 4673, Mar. 12, 1971, as amended at 42 FR 43836, Aug. 31, 1977. 
Redesignated at 46 FR 34330, July 1, 1981, and amended at 47 FR 26832, 
June 22, 1982; 47 FR 46498, Oct. 19, 1982; 49 FR 15191, Apr. 18, 1984; 
54 FR 37795, Sept. 13, 1989; 55 FR 32251, Aug. 8, 1990; 59 FR 5326, Feb. 
4, 1994; 60 FR 54305, Oct. 23, 1995; 63 FR 52160, Sept. 30, 1998; 69 FR 
16166, Mar. 29, 2004]



Sec. 233.3  Mail covers.

    (a) Policy. The U.S. Postal Service maintains rigid control and 
supervision with respect to the use of mail covers as an investigative 
technique for law enforcement or the protection of national security.
    (b) Scope. These regulations constitute the sole authority and 
procedure for initiating a mail cover, and for processing, using and 
disclosing information obtained from mail covers.
    (c) Definitions. For purpose of these regulations, the following 
terms are hereby defined.
    (1) Mail cover is the process by which a nonconsensual record is 
made of any data appearing on the outside cover of any sealed or 
unsealed class of mail matter, or by which a record is made of the 
contents of any unsealed class of mail matter as allowed by law, to 
obtain information in order to:
    (i) Protect national security,
    (ii) Locate a fugitive,
    (iii) Obtain evidence of commission or attempted commission of a 
crime,
    (iv) Obtain evidence of a violation or attempted violation of a 
postal statute, or
    (v) Assist in the identification of property, proceeds or assets 
forfeitable under law.
    (2) For the purposes of Sec. 233.3 record is a transcription, 
photograph, photocopy or any other facsimile of the image of the outside 
cover, envelope, wrapper, or contents of any class of mail.
    (3) Sealed mail is mail which under postal laws and regulations is 
included within a class of mail maintained by the Postal Service for the 
transmission of letters sealed against inspection. Sealed mail includes: 
First-Class Mail; Priority Mail; Express Mail; Express Mail 
International; Global Express Guaranteed items containing only 
documents; Priority Mail International flat-rate envelopes and small 
flat-rate boxes; International Priority Airmail, except M-bags; 
International Surface Air Lift, except M-bags; First-Class Mail 
International; Global Bulk Economy, except M-bags; certain Global Direct 
mail as specified by customer contract; and International Transit Mail.
    (4) Unsealed mail is mail which under postal laws or regulations is 
not included within a class of mail maintained by the Postal Service for 
the transmission of letters sealed against inspection. Unsealed mail 
includes: Periodicals; Standard Mail; Package Services; incidental 
First-Class Mail attachments and enclosures; Global Express Guaranteed 
items containing non-documents; Priority Mail International, except 
flat-rate envelopes and small flat-rate boxes; International Direct 
Sacks--M-bags; certain Global Direct mail as specified by customer 
contract; and all items sent via ``Free Matter for the Blind or 
Handicapped'' under 39 U.S.C. 3403-06 and International Mail Manual 270.
    (5) Fugitive is any person who has fled from the United States or 
any State, the District of Columbia, territory or possession of the 
United States, to avoid prosecution for a crime, to avoid punishment for 
a crime, or to avoid giving testimony in a criminal proceeding.
    (6) Crime, for the purposes of this section, is any commission of an 
act or the attempted commission of an act that is punishable by law by 
imprisonment for a term exceeding one year.
    (7) Postal statute refers to a statute describing criminal activity, 
regardless of the term of imprisonment, for which the Postal Service has 
investigative authority, or which is directed against the Postal 
Service, its operations, programs, or revenues.
    (8) Law enforcement agency is any authority of the Federal 
Government or any authority of a State or local government, one of whose 
functions is to:
    (i) Investigate the commission or attempted commission of acts 
constituting a crime, or

[[Page 57]]

    (ii) Protect the national security.
    (9) Protection of the national security means to protect the United 
States from any of the following actual or potential threats to its 
security by a foreign power or its agents:
    (i) An attack or other grave, hostile act;
    (ii) Sabotage, or international terrorism; or
    (iii) Clandestine intelligence activities, including commercial 
espionage.
    (10) Emergency situation refers to circumstances which require the 
immediate release of information to prevent the loss of evidence or in 
which there is a potential for immediate physical harm to persons or 
property.
    (d) Authorizations--Chief Postal Inspector. (1) The Chief Postal 
Inspector is the principal officer of the Postal Service in the 
administration of all matters governing mail covers. The Chief Postal 
Inspector may delegate any or all authority in this regard to not more 
than two designees at Inspection Service Headquarters.
    (2) Except for national security mail covers, the Chief Postal 
Inspector may also delegate any or all authority to the Manager, 
Inspector Service Operations Support Group, and, for emergency 
situations, to Inspectors in Charge. The Manager, Inspection Service 
Operations Support Group, may delegate this authority to no more than 
two designees at each Operations Support Group.
    (3) All such delegations of authority shall be issued through 
official, written directives. Except for delegations at Inspection 
Service Headquarters, such delegations shall only apply to the 
geographic areas served by the Manager, Inspection Service Operation 
Support Group, or designee.
    (e) The Chief Postal Inspector, or his designee, may order mail 
covers under the following circumstances:
    (1) When a written request is received from a postal inspector that 
states reason to believe a mail cover will produce evidence relating to 
the violation of a postal statute.
    (2) When a written request is received from any law enforcement 
agency in which the requesting authority specifies the reasonable 
grounds to demonstrate the mail cover is necessary to:
    (i) Protect the national security,
    (ii) Locate a fugitive,
    (iii) Obtain information regarding the commission or attempted 
commission of a crime, or
    (iv) Assist in the identification of property, proceeds or assets 
forfeitable because of a violation of criminal law.
    (3) When time is of the essence, the Chief Postal Inspector, or 
designee, may act upon an oral request to be confirmed by the requesting 
authority in writing within three calendar days. Information may be 
released by the Chief Postal Inspector or designee, prior to receipt of 
the written request, only when the releasing official is satisfied that 
an emergency situation exists.
    (f)(1) Exceptions. A postal inspector, or a postal employee acting 
at the direction of a postal inspector, may record the information 
appearing on the envelope or outer wrapping, of mail without obtaining a 
mail cover order, only under the circumstances in paragraph (f)(2) of 
this section.
    (2) The mail must be:
    (i) Undelivered mail found abandoned or in the possession of a 
person reasonably believed to have stolen or embezzled such mail,
    (ii) Damaged or rifled, undelivered mail, or
    (iii) An immediate threat to persons or property.
    (g) Limitations. (1) No person in the Postal Service except those 
employed for that purpose in dead-mail offices, may open, or inspect the 
contents of, or permit the opening or inspection of sealed mail without 
a federal search warrant, even though it may contain criminal or 
otherwise nonmailable matter, or furnish evidence of the commission of a 
crime, or the violation of a postal statute.
    (2) No employee of the Postal Service shall open or inspect the 
contents of any unsealed mail, except for the purpose of determining:
    (i) Payment of proper postage, or
    (ii) Mailability.
    (3) No mail cover shall include matter mailed between the mail cover 
subject and the subject's known attorney.
    (4) No officer or employee of the Postal Service other than the 
Chief Postal Inspector, Manager, Inspection

[[Page 58]]

Service Operations Support Group, and their designees, are authorized to 
order mail covers. Under no circumstances may a postmaster or postal 
employee furnish information as defined in Sec. 233.3(c)(1) to any 
person, except as authorized by a mail cover order issued by the Chief 
Postal Inspector or designee, or as directed by a postal inspector under 
the circumstances described in Sec. 233.3(f).
    (5) Except for mail covers ordered upon fugitives or subjects 
engaged, or suspected to be engaged, in any activity against the 
national security, no mail cover order shall remain in effect for more 
than 30 days, unless adequate justification is provided by the 
requesting authority. At the expiration of the mail cover order period, 
or prior thereto, the requesting authority may be granted additional 30-
day periods under the same conditions and procedures applicable to the 
original request. The requesting authority must provide a statement of 
the investigative benefit of the mail cover and anticipated benefits to 
be derived from its extension.
    (6) No mail cover shall remain in force longer than 120 continuous 
days unless personally approved for further extension by the Chief 
Postal Inspector or designees at National Headquarters.
    (7) Except for fugitive cases, no mail cover shall remain in force 
when an information has been filed or the subject has been indicted for 
the matter for which the mail cover is requested. If the subject is 
under investigation for further criminal violations, or a mail cover is 
required to assist in the identification of property, proceeds or assets 
forfeitable because of a violation of criminal law, a new mail cover 
order must be requested consistent with these regulations.
    (8) Any national security mail cover request must be approved 
personally by the head of the law enforcement agency requesting the 
cover or one designee at the agency's headquarters level. The head of 
the agency shall notify the Chief Postal Inspector in writing of such 
designation.
    (h) Records. (1) All requests for mail covers, with records of 
action ordered thereon, and all reports issued pursuant thereto, shall 
be deemed within the custody of the Chief Postal Inspector. However, the 
physical storage of this data shall be at the discretion of the Chief 
Postal Inspector.
    (2) If the Chief Postal Inspector, or his designee, determines a 
mail cover was improperly ordered, all data acquired while the cover was 
in force shall be destroyed, and the requesting authority notified of 
the discontinuance of the mail cover and the reasons therefor.
    (3) Any data concerning mail covers shall be made available to any 
mail cover subject in any legal proceeding through appropriate discovery 
procedures.
    (4) The retention period for files and records pertaining to mail 
covers shall be 8 years.
    (i) Reporting to requesting authority. Once a mail cover has been 
duly ordered, authorization may be delegated to any employee in the 
Postal Inspection Service to transmit mail cover reports directly to the 
requesting authority.
    (j) Review. (1) The Chief Postal Inspector, or his designee at 
Inspection Service Headquarters shall periodically review mail cover 
orders issued by the Manager, Inspection Service Operations Support 
Group or their designees to ensure compliance with these regulations and 
procedures.
    (2) The Chief Postal Inspector shall select and appoint a designee 
to conduct a periodic review of national security mail cover orders.
    (3) The Chief Postal Inspector's determination in all matters 
concerning mail covers shall be final and conclusive and not subject to 
further administrative review.
    (k) Military postal system. Section 233.3 does not apply to the 
military postal system overseas or to persons performing military postal 
duties overseas. Information about regulations prescribed by the 
Department of Defense for the military postal system overseas may be 
obtained from the Department of Defense.

[58 FR 36599, July 8, 1993, as amended at 61 FR 42557, Aug. 16, 1996; 74 
FR 18297, Apr. 22, 2009]



Sec. 233.4  Withdrawal of mail privileges.

    (a) False representation and lottery orders--(1) Issuance. Pursuant 
to 39 U.S.C.

[[Page 59]]

3005, the Judicial Officer of the Postal Service, acting upon a 
satisfactory evidentiary basis, may issue a mail-stop order against 
anyone seeking mailed remittance of money or property by means of a 
false-representation or lottery scheme. Such orders provide for return 
of mail and refund of postal money orders to remitters.
    (2) Enforcement. Notice of these orders, including any necessary 
instructions on enforcement responsibilities and procedures, is 
published in the Postal Bulletin. Generally, an order against a domestic 
enterprise is enforced only by the post office designated in the order. 
All personnel processing mail for dispatch abroad assist in enforcing 
orders against foreign enterprises by forwarding mail addressed to such 
enterprises to designated post offices.
    (b) Fictitious name or address and not residents of the place of 
address orders--(1) Issuance. Pursuant to 39 U.S.C. 3003, 3004, when 
there is satisfactory evidence that mail is addressed to a fictitious 
name, title, or address used for any unlawful business, and no one has 
established a right to have the mail delivered to him, or that mail is 
addressed to places not the residence or regular business address of the 
person for whom they are intended to enable the person to escape 
identification, the Judicial Officer may, pursuant to Part 964, order 
that the mail be returned to the sender.
    (2) Notice. (i) The Chief Postal Inspector or his delegate must give 
notice to the addressee of mail withheld from delivery pursuant to 39 
U.S.C. 3003, 3004 that such action has been taken and advise him that he 
may:
    (A) Obtain such mail upon presenting proof of his identity and right 
to receive such mail, or
    (B) Petition the Judicial Officer for the return of such mail. (ii) 
The notice must be in writing and served by personal service upon the 
addressee or by Certified Mail (Return Receipt Requested) and by First 
Class Mail.
    (3) Enforcement. Notice of any order issued pursuant to 39 U.S.C. 
3003, 3004, and any necessary implementing instructions, are published 
in the Postal Bulletin.

[45 FR 1613, Jan. 8, 1980. Redesignated at 46 FR 34330, July 1, 1981, 
and amended at 53 FR 1780, Jan. 22, 1988]



Sec. 233.5  Requesting financial records from a financial institution.

    (a) Definitions. The terms used in this section have the same 
meaning as similar terms used in the Right to Financial Privacy Act of 
1978, Title XI of Pub. L. 95-630. Act means the Right to Financial 
Privacy Act of 1978.
    (b) Purpose. The purpose of these regulations is: (1) To authorize 
the Inspection Service Department of the U.S. Postal Service to request 
financial records from a financial institution pursuant to the formal 
written request procedure authorized by section 1108 of the Act and (2) 
to set forth the conditions under which such request may be made.
    (c) Authorization. The Inspection Service Department is authorized 
to request financial records of any customer from a financial 
institution pursuant to a formal written request under the Act only if:
    (1) No administrative summons or subpoena authority reasonably 
appears to be available to the Inspection Service Department to obtain 
financial records for the purpose for which the records are sought;
    (2) There is reason to believe that the records sought are relevant 
to a legitimate law enforcement inquiry and will further that inquiry;
    (3) The request is issued by a supervisory official of a rank 
designated by the Chief Postal Inspector. Officials so designated shall 
not delegate this authority to others;
    (4) The request adheres to the requirements set forth in paragraph 
(d) of this section; and
    (5) The notice requirements set forth in section 1108(4) of the Act, 
or the requirements pertaining to the delay of notice in section 1109 of 
the Act, are satisfied, except in situations (e.g., section 1113(g)) 
where no notice is required.
    (d) Written request. (1) The formal request must be in the form of a 
letter or memorandum to an appropriate official

[[Page 60]]

of the financial institution and must contain:
    (i) The signature of the issuing official and the official's name, 
title, business address, and business phone number;
    (ii) The identity of the customer or customers to whom the records 
pertain;
    (iii) A reasonable description of the records sought; and
    (iv) Any additional information which may be appropriate--e.g., the 
date when the opportunity for the customer to challenge the formal 
written request expires, the date when the Inspection Service Department 
expects to present a certificate of compliance with the applicable 
provisions of the Act, the name and title of the individual (if known) 
to whom disclosure is to be made.
    (2) In cases where customer notice is delayed by court order, a copy 
of the court order must be attached to the formal written request.
    (e) Certification. Before obtaining the requested records following 
a formal written request, a supervisory official authorized to issue a 
request must certify in writing to the financial institution that the 
Inspection Service Department has complied with the applicable 
provisions of the Act.

[44 FR 39161, July 5, 1979. Redesignated at 46 FR 34330, July 1, 1981]



Sec. 233.6  Test purchases under 39 U.S.C. 3005(e).

    (a) Scope. This section, which implements 39 U.S.C. 3005(e), 
supplements any postal regulations or instructions regarding test 
purchases or test purchase procedures. It is limited to test purchases 
conducted according to 39 U.S.C. 3005(e).
    (b) Definitions--(1) Test purchase. The acquisition of any article 
or service, for which money or property are sought through the mails, 
from the person or representative offering the article or service. The 
purpose is to investigate possible violations of postal laws.
    (2) Test Purchase Request. A written document requesting the sale of 
an article or service pursuant to 39 U.S.C. 3005(e) and containing the 
following information:
    (i) The name and address of the person, firm, or corporation to whom 
the request is directed;
    (ii) The name, title, signature, office mailing address, and office 
telephone number of the person making the request;
    (iii) A description of the article or service requested which is 
sufficient to enable the person to whom the request is made to identify 
the article or service being sought;
    (iv) A statement of the nature of the conduct under investigation;
    (v) A statement that the article or service must be tendered at the 
time and place stated in the purchase request, unless the person making 
the request and the person to whom it is made agree otherwise in 
writing;
    (vi) A verbatim statement of 39 U.S.C. 3005, 3007; and
    (vii) A statement that failure to provide the requested article or 
service may be considered in a proceeding under 39 U.S.C. 3007 to 
determine whether probable cause exists to believe that 39 U.S.C. 3005 
is being violated.
    (c) Service of Test Purchase Request. (1) The original of the Test 
Purchase Request must be delivered to the person, firm, or corporation 
to whom the request is made or to his or its representative. It must be 
accompanied by a check or money order in the amount for which the 
article or service is offered for sale, made payable to the person, firm 
or corporation making the offer.
    (2) The person serving the Test Purchase Request must make and sign 
a record, stating the date and place of service and the name of the 
person served. The person making the request must retain a copy of the 
Test Purchase Request, the record of service, and the money order 
receipt or a photocopy of the issued check or the cancelled check. 
Alternatively, the request may be made by certified mail.
    (d) Authorizations. The Chief Postal Inspector is the principal 
officer of the Postal Service for the administration of all matters 
governing test purchases under this section. The Chief Inspector may 
delegate any or all authority in

[[Page 61]]

this regard to any or all postal inspectors.

[49 FR 7230, Feb. 28, 1984; 49 FR 8250, Mar. 6, 1984]



Sec. 233.7  Forfeiture authority and procedures.

    (a) Scope of regulations. (1) The regulations in this section apply 
to all forfeitures administered by the United States Postal Service with 
the exception of seizures and forfeitures under the statutes listed in 
18 U.S.C. 983(i). The authority to conduct administrative forfeitures 
derives from the procedural provisions of the Customs laws (19 U.S.C. 
1602-1618) where those provisions are incorporated by reference in the 
substantive forfeiture statutes.
    (2) The regulations in this section will apply to all forfeiture 
actions commenced on or after May 31, 2012.
    (b) Designation of officials having administrative forfeiture 
authority. (1) Administrative forfeiture authority. The Chief Postal 
Inspector is authorized to conduct administrative forfeitures under the 
statutes identified in paragraph (b)(2) of this section, following, 
where applicable, the procedures provided by the customs laws of the 
United States (19 U.S.C. 1602-1618) and to pay valid liens and mortgages 
against property that has been so forfeited.
    (2) Authority of the Chief Postal Inspector. The Chief Postal 
Inspector is authorized to perform all duties and responsibilities 
necessary on behalf of the Postal Service and the Office of Inspector 
General to enforce 18 U.S.C. 981, 983, 2254; 21 U.S.C. 863(c), 881; and 
31 U.S.C. 5317; following, where applicable, the procedures provided by 
the Customs laws of the United States (19 U.S.C. 1602-1618), and to pay 
valid liens and mortgages against property that has been so forfeited. 
The Chief Postal Inspector is authorized to delegate all or any part of 
this authority to Deputy Chief Inspectors, Inspectors in Charge, and 
Inspectors of the Postal Inspection Service, and to issue such 
instructions as may be necessary to carry out this authority.
    (3) State adoption. The seizure of property by a state or local law 
enforcement agency or other entity or individual may be adopted for 
forfeiture by the Postal Inspection Service, as appropriate under its 
seizure authority pursuant to paragraphs (b)(1) and (2) of this section.
    (c) Definitions. As used in this section, the following terms shall 
have the meanings specified:
    (1) Administrative forfeiture means the process by which property 
may be forfeited by the Postal Inspection Service rather than through 
judicial proceedings. Administrative forfeiture has the same meaning as 
nonjudicial forfeiture, as that term is used in 18 U.S.C. 983.
    (2) Appraised value means the estimated market value of property at 
the time and place of seizure if such or similar property was freely 
offered for sale between a willing seller and a willing buyer.
    (3) Appropriate official means the Chief Postal Inspector or that 
person's designee, or where the term ``appropriate official'' means the 
office or official identified in the notice published or personal 
written notice in accordance with paragraph (j) of this section.
    (4) Contraband means:
    (i) Any controlled substance, hazardous raw material, equipment or 
container, plants, or other property subject to summary forfeiture 
pursuant to sections 511(f) or (g) of the Controlled Substances Act (21 
U.S.C. 881(f) or (g)); or
    (ii) Any controlled substance imported into the United States, or 
exported out of the United States, in violation of law.
    (5) Civil forfeiture proceeding means a civil judicial forfeiture 
action as that term is used in 18 U.S.C. 983.
    (6) Domestic value means the same as the term appraised value as 
defined in paragraph (c)(2) of this section.
    (7) Expense means all costs incurred to detain, inventory, 
safeguard, maintain, advertise, sell, or dispose of property under 
seizure, detained, or forfeited pursuant to any law.
    (8) File or filed has the following meanings:
    (i) A claim or any other document submitted in an administrative 
forfeiture proceeding is not deemed filed until actually received by the 
appropriate official identified in the personal written notice and the 
published notice

[[Page 62]]

specified in paragraph (i) of this section. A claim is not considered 
filed if it is received by any other office or official. In addition, a 
claim in an administrative forfeiture proceeding is not considered filed 
if received only by an electronic or facsimile transmission.
    (ii) For purposes of computing the start of the 90-day period set 
forth in 18 U.S.C. 983(a)(3), an administrative forfeiture claim is 
filed on the date when the claim is received by the designated official, 
even if the claim is received from an incarcerated pro se prisoner.
    (9) Interested party means any person who reasonably appears to have 
an interest in the property, based on the facts known to the Postal 
Inspection Service before a declaration of forfeiture is entered.
    (10) Judicial forfeiture means either a civil or a criminal 
proceeding in a United States District Court that may result in a final 
judgment and order of forfeiture.
    (11) Mail includes regular or certified U.S. mail, and mail and 
package transportation and delivery services provided by other private 
or commercial interstate carriers.
    (12) Nonjudicial forfeiture has the same meaning as administrative 
forfeiture. See paragraph (b)(1) of this section.
    (13) Person means an individual, partnership, corporation, joint 
business enterprise, estate, or other legal entity capable of owning 
property.
    (14) Property subject to administrative forfeiture means any 
personal property of the kinds described in 19 U.S.C. 1607(a)(1)(4).
    (15) Property subject to forfeiture refers to all property that 
Federal law authorizes to be forfeited to the United States of America 
in any administrative forfeiture proceeding, in any civil judicial 
forfeiture proceeding, or in any criminal forfeiture proceeding.
    (d) Seizing property subject to forfeiture--(1) Authority to seize 
property. Postal Inspectors may seize assets under any Federal statute 
over which the Postal Inspection Service has investigative or forfeiture 
jurisdiction.
    (2) Turnover of assets seized by state and local agencies. (i) 
Property that is seized by a state or local law enforcement agency and 
transferred to the Postal Inspection Service for administrative or civil 
forfeiture may be adopted for administrative forfeiture without the 
issuance of any Federal seizure warrant or other Federal judicial 
process.
    (ii) Where a state or local law enforcement agency maintains custody 
of property pursuant to process issued by a state or local judicial 
authority, and notifies the Postal Inspection Service of the impending 
release of such property, the Postal Inspection Service may seek and 
obtain a Federal seizure warrant in anticipation of a state or local 
judicial authority releasing the asset from state process for purposes 
of Federal seizure, and may execute such seizure warrant when the state 
or local law enforcement agency releases the property as allowed or 
directed by its judicial authority.
    (e) Inventory. The Postal Inspection Service shall prepare an 
inventory of any seized property.
    (f) Custody. (1) All property seized by Postal Inspectors for 
forfeiture shall be delivered to the custody of the U.S. Marshals 
Service, or custodian approved by the U.S. Marshals Service, as soon as 
possible after seizure, unless it is retained as evidence.
    (2) Seized U.S. currency (and to the extent practicable seized 
foreign currency and negotiable instruments) must be deposited promptly 
in the Holding Account--Seizure and Forfeiture under the control of the 
Postal Inspection Service pending forfeiture. Provisional exceptions to 
this requirement may be granted as follows:
    (i) If the seized currency has a value less than $5,000, and a 
supervisory official within the U.S. Attorney's Office determines in 
writing that the currency is reasonably likely to serve a significant, 
independent, tangible, evidentiary purpose, or that retention is 
necessary while the potential evidentiary significance of the currency 
is being determined by scientific testing or otherwise, or
    (ii) The seized currency has a value greater than $5,000, and the 
Chief, Asset Forfeiture Money Laundering Section (AFMLS) determines in 
writing that the currency is reasonably likely to serve a significant, 
independent, tangible, evidentiary purpose,

[[Page 63]]

or that retention is necessary while the potential evidentiary 
significance of the currency is being determined by scientific testing 
or otherwise.
    (3) Seized currency has a significant independent, evidentiary 
purpose as those terms are used in paragraphs (f)(2)(i) and (f)(2)(ii) 
of this section if, for example, it bears fingerprint evidence, is 
packaged in an incriminating fashion, or contains a traceable amount of 
narcotic residue or some other substance of evidentiary significance. If 
only a portion of the seized currency has evidentiary value, only that 
portion should be retained; the balance should be deposited.
    (g) Appraisal. The Postal Inspection Service shall determine the 
domestic value of the seized property as soon as practicable following 
seizure.
    (h) Release before claim. (1) After seizure for forfeiture and prior 
to the filing of any claim, the appropriate official is authorized to 
release property seized for forfeiture provided:
    (i) The property is not contraband, evidence of a violation of law, 
or any property, the possession of which by the claimant, petitioner, or 
the person from whom it was seized is prohibited by state or Federal 
law, and does not have a design or other characteristic that 
particularly suits it for use in illegal activities; and
    (ii) The appropriate official determines within 10 days of seizure 
that there is an innocent party with the right to immediate possession 
of the property or that the release would be in the best interest of 
justice or the Government.
    (2) Further, at any time after seizure and before any claim is 
filed, such seized property may be released if the appropriate official 
determines that there is an innocent party with the right to immediate 
possession of the property or that the release would be in the best 
interest of justice or the Government.
    (i) Commencing an administrative forfeiture. An administrative 
forfeiture proceeding begins when notice is first published in 
accordance with paragraph 233.7(i)(1), or the first personal written 
notice is sent in accordance with paragraph 233.7(i)(2), whichever 
occurs first.
    (j) Notice of administrative forfeiture--(1) Notice by publication. 
(i) After seizing property subject to administrative forfeiture, the 
Appropriate Official shall select from the following options a means of 
publication reasonably calculated to notify potential claimants of the 
seizure and intent to forfeit and sell or otherwise dispose of the 
property:
    (A) Publication once each week for at least three successive weeks 
in a newspaper generally circulated in the judicial district where the 
property was seized; or
    (B) Posting a notice on an official Government Internet site for at 
least 30 consecutive days.
    (ii) The published notice shall:
    (A) Describe the seized property;
    (B) State the date, statutory basis, and place of seizure;
    (C) State the deadline for filing a claim when personal written 
notice has not been received, at least 30 days after the date of final 
publication of the notice of seizure; and
    (D) State the identity of the appropriate official of the Postal 
Inspection Service and address where the claim must be filed.
    (2) Personal written notice--(i) Manner of providing notice. After 
seizing property subject to administrative forfeiture, the Postal 
Inspection Service, in addition to publishing notice, shall send 
personal written notice of the seizure to each interested party in a 
manner reasonably calculated to reach such parties.
    (ii) Content of personal written notice. The personal written notice 
sent by the Postal Inspection Service shall:
    (A) State the date when the personal written notice is sent;
    (B) State the deadline for filing a claim, at least 35 days after 
the personal written notice is sent;
    (C) State the date, statutory basis, and place of seizure;
    (D) State the identity of the appropriate official of the Postal 
Inspection Service and the address where the claim must be filed; and
    (E) Describe the seized property.
    (3) Timing of notice--(i) Date of personal notice. Personal written 
notice is sent on the date when the Postal Inspection Service causes it 
to be placed

[[Page 64]]

in the mail, or otherwise sent by means reasonably calculated to reach 
the interested party. The personal written notice required by paragraph 
(i)(2) of this section shall be sent as soon as practicable, and in no 
case more than 60 days after the date of seizure (or 90 days after the 
date of seizure by a state or local law enforcement agency if the 
property was turned over to the Postal Inspection Service for the 
purpose of forfeiture under Federal law).
    (ii) Civil judicial forfeiture. If, before the time period for 
sending notice expires, the Government files a civil judicial forfeiture 
action against the seized property and provides notice of such action as 
required by law, personal notice of administrative forfeiture is not 
required under this paragraph.
    (iii) Criminal indictment. If, before the time period for sending 
notice under this paragraph expires, no civil judicial forfeiture action 
is filed, but a criminal indictment or information is obtained 
containing an allegation that the property is subject to forfeiture, the 
seizing agency shall either:
    (A) Send timely personal written notice and continue the 
administrative forfeiture proceeding; or
    (B) After consulting with the U.S. Attorney, terminate the 
administrative forfeiture proceeding and notify the custodian to return 
the property to the person having the right to immediate possession 
unless the U.S. Attorney takes steps necessary to maintain custody of 
the property as provided in the applicable criminal forfeiture statute.
    (4) Subsequent Federal seizure. If property is seized by a state or 
local law enforcement agency, but personal written notice is not sent to 
the person from whom the property is seized within the time period for 
providing notice under paragraph (j)(3)(i) of this section, then any 
administrative forfeiture proceeding against the property may commence 
if:
    (i) The property is subsequently seized or restrained by the Postal 
Inspection Service pursuant to a Federal seizure warrant or restraining 
order and the Postal Inspection Service sends notice as soon as 
practicable, and in no case more than 60 days after the date of the 
Federal seizure; or
    (ii) The owner of the property consents to forfeiture of the 
property.
    (5) Tolling. (i) In states or localities where orders are obtained 
from a state court authorizing the turnover of seized assets to the 
Postal Inspection Service, the period from the date an application or 
motion is presented to the state court for the turnover order through 
the date when such order is issued by the court shall not be included in 
the time period for providing notice under paragraph (j)(3)(i) of this 
section.
    (ii) If property is detained at an international border or port of 
entry for the purpose of examination, testing, inspection, obtaining 
documentation, or other investigation relating to the importation of the 
property into, or the exportation of the property from the United 
States, such period of detention shall not be included in the period 
described in paragraph (j)(3)(i) of this section. In such cases, the 60-
day period shall begin to run when the period of detention ends, if a 
seizing agency seizes the property for the purpose of forfeiture to the 
United States.
    (6) Identity of interested party. If the Postal Inspection Service 
determines the identity or interest of an interested party after the 
seizure or adoption of the property, but before entering a declaration 
of forfeiture, the Postal Inspection Service shall send written notice 
to such interested party under paragraph 3(i) not later than 60 days 
after determining the identity of the interested party or the interested 
party's interest.
    (7) Extending deadline for notice. The Chief Counsel for the Postal 
Inspection Service may extend the period for sending personal written 
notice under these regulations in a particular case for a period not to 
exceed 30 days (which period may not be further extended except by a 
court pursuant to 18 U.S.C. 983(a)(1)(C), (D)), if the Chief Counsel for 
the Postal Inspection Service determines, and states in writing, that 
there is reason to believe that notice may have an adverse result, 
including: Endangering the life or physical safety of an individual; 
flight from prosecution; destruction of or tampering with evidence; 
intimidation of

[[Page 65]]

potential witnesses; or otherwise seriously jeopardizing an 
investigation, or unduly delaying a trial.
    (8) Certification. The Chief Counsel for the Postal Inspection 
Service shall provide the written certification required under 18 U.S.C. 
983(a)(1)(C) when the Government requests it and the conditions 
described in 18 U.S.C. 983(a)(1)(D) are present.
    (k) Claims--(1) Filing. In order to contest the forfeiture of seized 
property in Federal court, any person asserting an interest in seized 
property subject to an administrative forfeiture proceeding under these 
regulations must file a claim with the appropriate official, after the 
commencement of the administrative forfeiture proceeding as defined in 
paragraph (h) of this section, and not later than the deadline set forth 
in a personal notice letter sent pursuant to paragraph (i)(2) of this 
section. If personal written notice is sent but not received, then the 
intended recipient must file a claim with the appropriate official not 
later than 30 days after the date of the final publication of the notice 
of seizure.
    (2) Contents of claim. A claim shall:
    (i) Identify the specific property being claimed;
    (ii) Identify the claimant and state the claimant's interest in the 
property; and
    (iii) Be made under oath by the claimant, not counsel for the 
claimant, and recite that it is made under the penalty of perjury, 
consistent with the requirements of 28 U.S.C. 1746. An acknowledgement, 
attestation, or certification by a notary public alone is insufficient.
    (3) Availability of claim forms. The claim need not be made in any 
particular form. However, the Postal Inspection Service will make claim 
forms generally available on request. Such forms shall be written in 
easily understandable language. A request for a claim form does not 
extend the deadline for filing a claim. Any person may obtain a claim 
form by requesting one in writing from the appropriate official.
    (4) Cost bond not required. Any person may file a claim under 
paragraph 233.7(k)(1) without posting bond, except in forfeitures under 
statutes listed in 18 U.S.C. 983(i).
    (5) Referral of claim. Upon receipt of a claim that meets the 
requirements of paragraphs (k)(1) and (2) of this section, the Postal 
Inspection Service shall return the property or suspend the 
administrative forfeiture proceeding and promptly transmit the claim, 
together with a description of the property and a complete statement of 
the facts and circumstances surrounding the seizure, to the appropriate 
U.S. Attorney for commencement of judicial forfeiture proceedings. Upon 
making the determination that the seized property will be released, the 
Postal Inspection Service shall promptly notify the person with a right 
to immediate possession of the property, informing that person to 
contact the property custodian within a specified period for release of 
the property, and further informing that person that failure to contact 
the property custodian within the specified period for release of the 
property will result in abandonment of the property pursuant to 
applicable regulations. The Postal Inspection Service shall notify the 
property custodian of the identity of the person to whom the property 
should be released. The property custodian shall have the right to 
require presentation of proper identification and/or to take other steps 
to verify the identity of the person who seeks the release of property, 
or both.
    (6) Premature filing. If a claim is filed with the appropriate 
official after the seizure of the property, but before the commencement 
of the administrative forfeiture proceeding as defined in paragraph (i) 
of this section, the claim shall be deemed filed on the 30th day after 
the commencement of the administrative forfeiture proceeding. If such 
claim meets the requirements of paragraph (k)(2) of this section, the 
Postal Inspection Service shall suspend the administrative forfeiture 
proceedings and promptly transmit the claim, together with a description 
of the property and a complete statement of the facts and circumstances 
surrounding the seizure to the appropriate U.S. Attorney for 
commencement of judicial forfeiture proceedings.

[[Page 66]]

    (7) Defective claims. If the Postal Inspection Service determines 
that an otherwise timely claim does not meet the requirements of 
paragraph (k)(2) of this section, the Postal Inspection Service may 
notify the claimant of this determination and allow the claimant a 
reasonable time to cure the defect(s) in the claim. If, within the time 
allowed by the Postal Inspection Service, the requirements of paragraph 
(k)(2) of this section are not met, the claim shall be void and the 
forfeiture proceedings shall proceed as if no claim had been submitted. 
If the claimant timely cures the deficiency, then the claim shall be 
deemed filed on the date when the appropriate official receives the 
cured claim.
    (l) Interplay of administrative and criminal judicial forfeiture 
proceedings. An administrative forfeiture proceeding pending against 
seized or restrained property does not bar the Government from alleging 
that the same property is forfeitable in a criminal case. 
Notwithstanding the fact that an allegation of forfeiture has been 
included in a criminal indictment or information, the property may be 
administratively forfeited in a parallel proceeding.
    (m) Requests for hardship release of seized property. (1) Under 
certain circumstances, a claimant may be entitled to immediate release 
of seized property on the basis of hardship.
    (2) Any person filing a request for hardship release must also file 
a claim to the seized property pursuant to paragraph (k) of this section 
and as defined in 18 U.S.C. 983(a).
    (3) The timely filing of a valid claim pursuant to paragraph (k) of 
this section does not entitle the claimant to possession of the seized 
property, but a claimant may request immediate release of the property 
while forfeiture is pending, based on hardship.
    (4) A claimant seeking release of property under 18 U.S.C. 983(f) 
and these regulations must file a written request with the appropriate 
official. The request must establish that:
    (i) The claimant has a possessory interest in the property;
    (ii) The claimant has sufficient ties to the community to provide 
assurance that the property will be available at the time of trial;
    (iii) The continued possession by the Government pending the final 
disposition of forfeiture proceedings will cause substantial hardship to 
the claimant, such as preventing the functioning of a business, 
preventing an individual from working, or leaving an individual 
homeless;
    (iv) The claimant's likely hardship from the continued possession by 
the Government of the seized property outweighs the risk that the 
property will be destroyed, damaged, lost, concealed, or transferred if 
it is returned to the claimant during the pendency of the proceeding; 
and
    (v) The property is not:
    (A) Contraband, any property, the possession of which by the 
claimant, petitioner, or person from whom it was seized is prohibited by 
state or Federal law, currency, or other monetary instrument, or 
electronic funds unless such currency or other monetary instrument or 
electronic funds constitutes the assets of a legitimate business which 
has been seized;
    (B) Intended to be used as evidence of a violation of law;
    (C) By reason of design or other characteristic, particularly suited 
for use in illegal activities; or
    (D) Likely to be used to commit additional criminal acts if returned 
to the claimant.
    (5) A hardship release request pursuant to this paragraph shall be 
deemed to have been made on the date when it is received by the 
appropriate official as defined in paragraph (c)(3) of this section, or 
the date the claim was deemed filed under paragraph (k) of this section. 
If the request is ruled on and denied by the appropriate official or the 
property has not been released within the 15-day time limit period, the 
claimant may file a petition in Federal district court pursuant to 18 
U.S.C. 983(f)(3). If a petition is filed in Federal district court, the 
claimant must send a copy of the petition to the appropriate official to 
whom the hardship petition was originally submitted and to the U.S. 
Attorney in the judicial district where the judicial petition was filed.

[[Page 67]]

    (6) If a civil forfeiture complaint is filed on property and the 
claimant files a claim with the court pursuant to 18 U.S.C. 983(a)(4)(A) 
and Rule G(5) of the Supplemental Rules for Certain Admiralty and 
Maritime Claims, a hardship petition may be submitted to the individual 
identified in the public or personal notice of the civil forfeiture 
action.
    (n) Disposition of property before forfeiture. (1) Whenever it 
appears to the Postal Inspection Service that any seized property is 
liable to perish or to waste, or to be greatly reduced in value during 
its detention for forfeiture, or that the expense of keeping the 
property is or will be disproportionate to its value, the Chief Counsel 
for the Postal Inspection Service may order destruction, sale, or other 
disposition of such property prior to forfeiture. In addition, the owner 
may obtain release of the property by posting a substitute monetary 
amount with the Postal Inspection Service to be held subject to 
forfeiture proceedings in place of the seized property to be released. 
Upon approval by the Chief Counsel for the Postal Inspection Service, 
the property will be released to the owner upon the payment of an amount 
equal to the Government appraised value of the property if the property 
is not evidence of a violation of law, is not contraband, and has no 
design or other characteristics that particularly suit it for use in 
illegal activities. This payment must be in the form of a money order, 
an official bank check, or a cashier's check made payable to the Postal 
Inspection Service. A bond in the form of a cashier's check or official 
bank check will be considered as paid once the check has been accepted 
for payment by the financial institution that issued the check. If a 
substitute amount is posted and the property is administratively 
forfeited, the Postal Inspection Service will forfeit the substitute 
amount in lieu of the property. The pre-forfeiture destruction, sale, or 
other disposition of seized property pursuant to this subsection shall 
not extinguish any person's rights to the value of the property under 
applicable law. The authority vested in the Chief Counsel for the Postal 
Inspection Service under this subsection may not be delegated.
    (2) The Postal Inspection Service shall commence forfeiture 
proceedings, regardless of the disposition of the property under this 
paragraph. A person with an interest in the property that was destroyed 
or otherwise disposed of under this paragraph may file a claim to 
contest the forfeiture of the property or a petition for remission or 
mitigation of the forfeiture. No employee of the Postal Inspection 
Service shall be liable for the destruction or other disposition of 
property made pursuant to this paragraph. The destruction or other 
disposition of the property does not impair in rem jurisdiction.
    (o) Declaration of administrative forfeiture. If the Postal 
Inspection Service commences a timely proceeding against property 
subject to administrative forfeiture, and no valid and timely claim is 
filed, the appropriate official shall declare the property forfeited. 
The declaration of forfeiture shall have the same force and effect as a 
final decree and order of forfeiture in a Federal judicial forfeiture 
proceeding.
    (p) Return of property. (1) If, under 18 U.S.C. 983(a)(3), the 
Postal Inspection Service is notified by the U.S. Attorney in charge of 
the matter that the 90-day deadline was not met, the Postal Inspection 
Service is required to release the seized property. Under this 
subsection, the Postal Inspection Service is not required to return 
property for which it has an independent basis for continued custody 
including, but not limited to, contraband or evidence of a violation of 
law.
    (2) Upon becoming aware that the seized property must be released, 
the Postal Inspection Service shall promptly notify the person with a 
right to immediate possession of the property, informing that person to 
contact the property custodian within a specified period for release of 
the property, and further informing that person that failure to contact 
the property custodian within the specified period for release of the 
property may result in the initiation of abandonment proceedings against 
the property pursuant to 39 CFR part 946. The property custodian will be 
notified of the identity of the person to whom the property should be 
released.

[[Page 68]]

    (3) The property custodian shall have the right to require 
presentation of proper identification or to verify the identity of the 
person who seeks the release of property.
    (q) Disposition of forfeited property. (1) Whenever property is 
forfeited administratively, the Postal Inspection Service may:
    (i) Retain the property for official use;
    (ii) Transfer ownership of the property to any Federal, state or 
local law enforcement agency that participated in the investigation 
leading to the forfeiture;
    (iii) Sell any property that is not required to be destroyed by law 
and that is not harmful to the public;
    (iv) Destroy the property; or
    (v) Dispose of the property as otherwise permitted by law.
    (2) If the laws of a state in which an article of forfeited property 
is located prohibit the sale or possession of such property, or if the 
Postal Service and the Marshals Service are of the opinion that it would 
be more advantageous to sell the forfeited property in another district, 
the property may be moved to and sold in such other district.
    (r) Attorney fees and costs. The Postal Inspection Service is not 
liable for attorney fees or costs in any administrative forfeiture 
proceeding, including such proceedings in which a claim is filed, the 
matter is referred to the U.S. Attorney, and the U.S. Attorney declines 
to commence judicial forfeiture proceedings.

[77 FR 25596, May 1, 2012]



Sec. 233.8  Expedited forfeiture proceedings for property seizures based
on violations involving the possession of personal use quantities of a

controlled substance.

    (a) Purpose and scope. (1) The following definitions, regulations, 
and criteria are designed to establish and implement procedures required 
by section 6079 of the Anti-Drug Abuse Act of 1988, Public Law 100-690, 
102 Stat. 4181. They are intended to supplement existing law and 
procedures relative to the forfeiture of property under the identified 
statutory authority. These regulations do not affect the existing legal 
and equitable rights and remedies of those with an interest in property 
seized for forfeiture, nor do these provisions relieve interested 
parties from their existing obligations and responsibilities in pursuing 
their interests through such courses of action. These regulations are 
intended to reflect the intent of Congress to minimize the adverse 
impact on those entitled to legal or equitable relief occasioned by the 
prolonged detention of property subject to forfeiture due to violations 
of law involving personal use quantities of controlled substances. The 
definition of personal use quantities of a controlled substance as 
contained herein is intended to distinguish between those small 
quantities, which are generally considered to be possessed for personal 
consumption and not for further distribution, and those larger 
quantities generally considered to be subject to further distribution.
    (2) In this regard, for violations involving the possession of 
personal use quantities of a controlled substance, section 6079(b)(2) 
requires either that administrative forfeiture be completed within 21 
days of the seizure of the property, or alternatively, that procedures 
are established that provide a means by which an individual entitled to 
relief may initiate an expedited administrative review of the legal and 
factual basis of the seizure for forfeiture. Should an individual 
request relief pursuant to these regulations and be entitled to the 
return of the seized property, such property shall be returned 
immediately following that determination, but not later than 20 days 
after filing of a petition for expedited release by an owner, and the 
administrative forfeiture process shall cease. Should the individual not 
be entitled to the return of the seized property, however, the 
administrative forfeiture of that property shall proceed. The owner may, 
in any event, obtain release of property pending the administrative 
forfeiture by submitting to the agency making the determination property 
sufficient to preserve the Government's vested interest for purposes of 
the administrative forfeiture.
    (b) Definitions. As used in this section, the following terms shall 
have the meanings specified:

[[Page 69]]

    (1) Commercial fishing industry vessel means a vessel that:
    (i) Commercially engages in the catching, taking, or harvesting of 
fish or an activity that can reasonably be expected to result in the 
catching, taking, or harvesting of fish;
    (ii) Commercially prepares fish or fish products other than by 
gutting, decapitating, gilling, skinning, shucking, icing, freezing, or 
brine chilling; or
    (iii) Commercially supplies, stores, refrigerates, or transports 
fish, fish products, or materials directly related to fishing or the 
preparation of fish to or from a fishing, fish processing, or fish 
tender vessel or fish processing facility.
    (2) Controlled substance has the meaning given in 21 U.S.C. 802(6).
    (3) Normal and customary manner means that inquiry suggested by 
particular facts and circumstances that would customarily be undertaken 
by a reasonably prudent individual in a like or similar situation. 
Actual knowledge of such facts and circumstances is unnecessary, and 
implied, imputed, or constructive knowledge is sufficient. An 
established norm, standard, or custom is persuasive but not conclusive 
or controlling in determining whether an owner acted in a normal and 
customary manner to ascertain how property would be used by another 
legally in possession of the property. The failure to act in a normal 
and customary manner as defined herein will result in the denial of a 
petition for expedited release of the property and is intended to have 
the desirable effect of inducing owners of the property to exercise 
greater care in transferring possession of their property.
    (4) Owner means one having a legal and possessory interest in the 
property seized for forfeiture. Even though one may hold primary and 
direct title to the property seized, such person may not have sufficient 
actual beneficial interest in the property to support a petition as 
owner if the facts indicate that another person had dominion and control 
over the property.
    (5) Personal use quantities means those amounts of controlled 
substances in possession in circumstances where there is no other 
evidence of an intent to distribute, or to facilitate the manufacturing, 
compounding, processing, delivering, importing, or exporting of any 
controlled substance.
    (i) Evidence that possession of quantities of a controlled substance 
is for other than personal use may include, for example:
    (A) Evidence, such as drug scales, drug distribution paraphernalia, 
drug records, drug packaging material, method of drug packaging, drug 
``cutting'' agents and other equipment, that indicates an intent to 
process, package, or distribute a controlled substance;
    (B) Information from reliable sources indicating possession of a 
controlled substance with intent to distribute;
    (C) The arrest or conviction record of the person or persons in 
actual or constructive possession of the controlled substance for 
offenses under Federal, state, or local law that indicates an intent to 
distribute a controlled substance;
    (D) Circumstances or reliable information indicating that the 
controlled substance is related to large amounts of cash or any amount 
of prerecorded Government funds;
    (E) Circumstances or reliable information indicating that the 
controlled substance is a sample intended for distribution in 
anticipation of a transaction involving large quantities, or is part of 
a larger delivery;
    (F) Statements by the possessor, or otherwise attributable to the 
possessor, including statements of conspirators, that indicate 
possession with intent to distribute; or
    (G) The fact that the controlled substance was recovered from 
sweepings.
    (ii) Possession of a controlled substance shall be presumed to be 
for personal use when there are no indicia of illicit drug trafficking 
or distribution --such as, but not limited to, the factors listed 
above--and the amounts do not exceed the following quantities:
    (A) One gram of a mixture or substance containing a detectable 
amount of heroin;
    (B) One gram of a mixture or substance containing a detectable 
amount of the following:
    (1) Coca leaves, except coca leaves and extracts of coca leaves from 
which cocaine, ecgonine, and derivations of

[[Page 70]]

ecgonine or their salts have been removed;
    (2) Cocaine, its salts, optical and geometric isomers, and salts of 
isomers;
    (3) Ecgonine, its derivatives, their salts, isomers, and salts of 
isomers; or
    (4) Any compound, mixture, or preparation that contains any quantity 
of any of the substances referred to in (ii)(B)(1) through (ii)(B)(3) of 
this definition;
    (C) One-tenth gram of a mixture or substance described in (ii)(B) of 
this definition that contains cocaine base;
    (D) One-tenth gram of a mixture or substance containing a detectable 
amount of phencyclidine (PCP);
    (E) Five hundred micrograms of lysergic acid diethylamide (LSD);
    (F) One ounce of a mixture or substance containing a detectable 
amount of marijuana;
    (G) One gram of methamphetamine, its salts, isomers, and salts of 
its isomers, or one gram of a mixture or substance containing a 
detectable amount of methamphetamine, its salts, isomers, or salts of 
its isomers.
    (iii) The possession of a narcotic, a depressant, a stimulant, a 
hallucinogen or a cannabis-controlled substance will be considered in 
excess of personal use quantities if the dosage unit amount possessed 
provides the same or greater equivalent efficacy as described in (ii)(B) 
of this definition.
    (6) Property means property subject to forfeiture under 21 U.S.C. 
881(a)(4), (6), or (7); 19 U.S.C. 1595a; or 49 U.S.C. 80303.
    (7) Seizing agency means the Federal agency that has seized the 
property or adopted the seizure of another agency and has the 
responsibility for administratively forfeiting the property;
    (8) Statutory rights or defenses to the forfeiture means all legal 
and equitable rights and remedies available to a claimant of property 
seized for forfeiture.
    (c) Petition for expedited release in an administrative forfeiture 
proceeding. (1) Where property is seized for administrative forfeiture 
involving controlled substances in personal use quantities, the owner 
may petition the Postal Inspection Service for expedited release of the 
property.
    (2) Where property described in paragraph (c)(1) of this section is 
a commercial fishing industry vessel proceeding to or from a fishing 
area or intermediate port of call or actually engaged in fishing 
operations, which would be subject to seizure for administrative 
forfeiture for a violation of law involving controlled substances in 
personal use quantities, a summons to appear shall be issued in lieu of 
a physical seizure. The vessel shall report to the port designated in 
the summons. The Postal Inspection Service shall be authorized to effect 
administrative forfeiture as if the vessel had been physically seized. 
Upon answering the summons to appear on or prior to the last reporting 
date specified in the summons, the owner of the vessel may file a 
petition for expedited release pursuant to paragraph (c)(1) of this 
section, and the provisions of paragraph (c)(1) and other provisions in 
this section pertaining to a petition for expedited release shall apply 
as if the vessel had been physically seized.
    (3) The owner filing the petition for expedited release shall 
establish the following:
    (i) The owner has a valid, good faith interest in the seized 
property as owner or otherwise;
    (ii) The owner reasonably attempted to ascertain the use of the 
property in a normal and customary manner; and
    (iii) The owner did not know of or consent to the illegal use of the 
property, or in the event that the owner knew or should have known of 
the illegal use, the owner did what reasonably could be expected to 
prevent the violation.
    (4) In addition to those factors listed in paragraph (c)(3) of this 
section, if an owner can demonstrate that the owner has other statutory 
rights or defenses that would cause the owner to prevail on the issue of 
forfeiture, such factors shall also be considered in ruling on the 
petition for expedited release.
    (5) A petition for expedited release must be received by the Postal 
Inspection Service within 20 days from the date of the first publication 
of the notice of seizure in ordered to be considered by the Postal 
Inspection Service. The petition must be executed and sworn to by the 
owner, and both the

[[Page 71]]

envelope and the request must be clearly marked ``PETITION FOR EXPEDITED 
RELEASE.'' Such petition shall be filed with the appropriate office or 
official identified in the personal written notice and the publication 
notice.
    (6) The petition shall include the following:
    (i) A complete description of the property, including identification 
numbers, if any, and the date and place of seizure;
    (ii) The petitioner's interest in the property, which shall be 
supported by title documentation, bills of sale, contracts, mortgages, 
or other satisfactory documentary evidence; and
    (iii) A statement of the facts and circumstances, to be established 
by satisfactory proof, relied upon by the petitioner to justify 
expedited release of the seized property.
    (d) Ruling on petition for expedited release in an administrative 
forfeiture proceeding. (1) If a final administrative determination of 
the case, without regard to the provisions of this section, is made 
within 21 days of the seizure, the Postal Inspection Service need take 
no further action under this section on a petition for expedited release 
received pursuant to paragraph (c) of this section.
    (2) If no such final administrative determination is made within 21 
days of the seizure, the following procedure shall apply. The Postal 
Inspection Service shall, within 20 days after the receipt of the 
petition for expedited release, determine whether the petition filed by 
the owner has established the factors listed in paragraph (c)(3) of this 
section and:
    (i) If the Postal Inspection Service determines that those factors 
have been established, it shall terminate the administrative proceedings 
and return the property to the owner (or in the case of a commercial 
fishing industry vessel for which a summons has been issued shall 
dismiss the summons), except where it is evidence of a violation of law; 
or
    (ii) If the Postal Inspection Service determines that those factors 
have not been established, the agency shall proceed with the 
administrative forfeiture.
    (e) Posting of substitute monetary amount in an administrative 
forfeiture proceeding. (1) Where property is seized for administrative 
forfeiture involving controlled substances in personal use quantities, 
the owner may obtain release of the property by posting a substitute 
monetary amount with the Postal Inspection Service to be held subject to 
forfeiture proceedings in place of the seized property to be released. 
The property will be released to the owner upon the payment of an amount 
equal to the Government-appraised value of the property if the property 
is not evidence of a violation of law and has no design or other 
characteristics that particularly suit it for use in illegal activities. 
This payment must be in the form of a traveler's check, a money order, a 
cashier's check, or an irrevocable letter of credit made payable to the 
Postal Inspection Service. A bond in the form of a cashier's check will 
be considered as paid once the check has been accepted for payment by 
the financial institution that issued the check.
    (2) If a substitute monetary amount is posted and the property is 
administratively forfeited, the Postal Inspection Service will forfeit 
the substitute amount in lieu of the property.
    (f) Notice provisions. At the time of seizure of property defined in 
paragraph (b)(6) of this section for violations involving the possession 
of personal use quantities of a controlled substance, the Postal 
Inspection Service must provide written notice to the possessor of the 
property specifying the procedures for filing of a petition for 
expedited release and for the posting of a substitute monetary bond as 
set forth in section 6079 of the Anti-Drug Abuse Act of 1988 and 
implementing regulations.

[77 FR 25600, May 1, 2012]



Sec. 233.9  Regulations governing remission or mitigation of 
administrative, civil, and criminal forfeitures.

    (a) Purpose, authority, and scope--(1) Purpose. This section sets 
forth the procedures for Postal Inspection Service officials to follow 
when considering remission or mitigation of administrative forfeitures 
under the jurisdiction of the Postal Inspection Service. The

[[Page 72]]

purpose of these regulations is to provide a basis for the partial or 
total remission of forfeiture for individuals who have an interest in 
the forfeited property but who did not participate in, or have knowledge 
of, the conduct that resulted in the property being subject to 
forfeiture and, where required, took all reasonable steps under the 
circumstances to ensure that such property would not be used, acquired, 
or disposed of contrary to law. Additionally, the regulations provide 
for partial or total mitigation of the forfeiture and imposition of 
alternative conditions in appropriate circumstances.
    (2) Authority to grant remission and mitigation. (i) Remission and 
mitigation functions in administrative forfeitures under the 
jurisdiction of the Postal Inspection Service are performed by the Chief 
Counsel.
    (ii) Remission and mitigation functions in judicial cases are 
performed by the Criminal Division of the Department of Justice. Within 
the Criminal Division, authority to grant remission and mitigation is 
delegated to the Chief, Asset Forfeiture and Money Laundering Section.
    (iii) The powers and responsibilities delegated by the regulations 
in this section may be re-delegated to attorneys or managers working 
under the supervision of the Chief Counsel.
    (3) Scope. This section governs any petition for remission filed 
with the Postal Inspection Service and supersedes any Postal Service 
regulation governing petitions for remission, to the extent such 
regulation is inconsistent with this section.
    (4) Applicability. The time periods and internal requirements 
established in this section are designed to guide the orderly 
administration of the remission and mitigation process and are not 
intended to create rights or entitlements in favor of individuals 
seeking remission or mitigation. The regulations will apply to all 
forfeiture actions commenced on or after May 1, 2012.
    (b) Definitions. As used in this section:
    (1) Administrative forfeiture means the process by which property 
may be forfeited by the Postal Inspection Service rather than through 
judicial proceedings. Administrative forfeiture has the same meaning as 
``nonjudicial forfeiture,'' as that term is used in 18 U.S.C. 983.
    (2) Appraised value means the estimated market value of an asset at 
the time and place of seizure if such or similar property was freely 
offered for sale between a willing seller and a willing buyer.
    (3) Assets Forfeiture Fund means the Department of Justice Assets 
Forfeiture Fund, Department of the Treasury Assets Forfeiture Fund, or 
the Postal Service's Assets Forfeiture Fund, depending upon the identity 
of the seizing agency.
    (4) Attorney General means the Attorney General of the United States 
or that official's designee.
    (5) Beneficial owner means a person with actual use of, as well as 
an interest in, the property subject to forfeiture.
    (6) Chief, Asset Forfeiture and Money Laundering Section, and Chief, 
refer to the Chief of the Asset Forfeiture and Money Laundering Section, 
Criminal Division, United States Department of Justice.
    (7) General creditor means one whose claim or debt is not secured by 
a specific right to obtain satisfaction against the particular property 
subject to forfeiture.
    (8) Judgment creditor means one who has obtained a judgment against 
the debtor but has not yet received full satisfaction of the judgment.
    (9) Judicial forfeiture means either a civil or a criminal 
proceeding in a United States District Court that may result in a final 
judgment and order of forfeiture.
    (10) Lienholder means a creditor whose claim or debt is secured by a 
specific right to obtain satisfaction against the particular property 
subject to forfeiture. A lien creditor qualifies as a lienholder if the 
lien:
    (i) Was established by operation of law or contract;
    (ii) Was created as a result of an exchange of money, goods, or 
services; and
    (iii) Is perfected against the specific property forfeited for which 
remission or mitigation is sought (e.g., a real estate mortgage; a 
mechanic's lien).

[[Page 73]]

    (11) Net equity means the amount of a lienholder's monetary interest 
in the property subject to forfeiture. Net equity shall be computed by 
determining the amount of unpaid principal and unpaid interest at the 
time of seizure, and by adding to that sum unpaid interest calculated 
from the date of seizure through the last full month prior to the date 
of the decision on the petition. Where a rate of interest is set forth 
in a security agreement, the rate of interest to be used in this 
computation will be the annual percentage rate so specified in the 
security agreement that is the basis of the lienholder's interest. In 
this computation, however, there shall be no allowances for attorneys' 
fees, accelerated or enhanced interest charges, amounts set by contract 
as damages, unearned extended warranty fees, insurance, service contract 
charges incurred after the date of seizure, allowances for dealer's 
reserve, or any other similar charges.
    (12) Nonjudicial forfeiture has the same meaning as administrative 
forfeiture as defined in this section.
    (13) Owner means the person in who primary title is vested or whose 
interest is manifested by the actual and beneficial use of the property, 
even though the title is vested in another. A victim of an offense, as 
defined in paragraph (b)(22) of this section, may also be an owner if 
that person has a present legally cognizable ownership interest in the 
property forfeited. A nominal owner of property will not be treated as 
its true owner if that person is not its beneficial owner.
    (14) Person means an individual, partnership, corporation, joint 
business enterprise, estate, or other legal entity capable of owning 
property.
    (15) Petition means a petition for remission or mitigation of 
forfeiture under the regulations in this part. This definition includes 
a petition for restoration of the proceeds of sale of forfeited property 
and a petition for the value of the forfeited property placed into 
official use.
    (16) Petitioner means the person applying for remission, mitigation, 
restoration of the proceeds of sale, or for the appraised value of 
forfeited property, under this part. A petitioner may be an owner as 
defined in paragraph (b)(13) of this section, a lienholder as defined in 
paragraph (b)(10), or a victim as defined in paragraph (b)(22), subject 
to the limitations of paragraph (h) of this section.
    (17) Property means real or personal property of any kind capable of 
being owned or possessed.
    (18) Record means a series of arrests for related crimes, unless the 
arrestee was acquitted or the charges were dismissed for lack of 
evidence, a conviction for a related crime or completion of sentence 
within 10 years of the acquisition of the property subject to 
forfeiture, or two convictions for a related crime at any time in the 
past.
    (19) Related crime as used in paragraphs (b)(18) and (f) of this 
section means any crime similar in nature to that which gives rise to 
the seizure of property for forfeiture. For example, where property is 
seized for a violation of the Federal laws relating to drugs, a related 
crime would be any offense involving a violation of the Federal laws 
relating to drugs, or the laws of any state or political subdivision 
thereof relating to drugs.
    (20) Related offense as used in paragraph (h) of this section means:
    (i) Any predicate offense charged in a Federal Racketeer Influenced 
and Corrupt Organizations Act (RICO) count for which forfeiture was 
ordered; or
    (ii) An offense committed as part of the same scheme or design, or 
pursuant to the same conspiracy, as was involved in the offense for 
which forfeiture was ordered.
    (21) Ruling Official means any official to whom decision making 
authority has been delegated pursuant to paragraph (a)(2) of this 
section.
    (22) Seizing agency means any Federal agency that seized the 
property or adopted the seizure of another agency for Federal 
forfeiture.
    (23) Victim means a person who has incurred a pecuniary loss as a 
direct result of the commission of the offense underlying a forfeiture. 
A drug user is not considered a victim of a drug trafficking offense 
under this definition. A victim does not include one who acquires a 
right to sue the perpetrator of the criminal offense for any loss by 
assignment, subrogation, inheritance, or

[[Page 74]]

otherwise from the actual victim, unless that person has acquired an 
actual ownership interest in the forfeited property; provided however, 
that if a victim has received compensation from insurance or any other 
source with respect to a pecuniary loss, remission may be granted to the 
third party who provided compensation, up to the amount of the victim's 
pecuniary loss as defined in paragraph (h)(3) of this section.
    (24) Violator means the person whose use or acquisition of the 
property in violation of the law subjected such property to seizure for 
forfeiture.
    (c) Petitions in administrative forfeiture cases. (1) Notice of 
seizure. The notice of seizure and intent to forfeit the property shall 
advise any persons who may have a present ownership interest in the 
property to submit their petitions for remission or mitigation within 30 
days of the date they receive the notice in order to facilitate 
processing. Petitions shall be considered any time after notice until 
the property has been forfeited, except in cases involving petitions to 
restore the proceeds from the sale of forfeited property. A notice of 
seizure shall include the Ruling Official, the mailing and street 
address of the official to whom petitions should be sent, and an asset 
identifier number.
    (2) Persons who may file. (i) A petition for remission or mitigation 
must be filed by a petitioner as defined in paragraph (b)(16) of this 
section, or as prescribed in paragraph (i)(7) and (8) of this section. A 
person or person acting on their behalf may not file a petition if, 
after notice or knowledge of the fact that a warrant or process has been 
issued for his apprehension, in order to avoid criminal prosecution the 
person:
    (A) Purposely leaves the jurisdiction of the United States;
    (B) Declines to enter or reenter the United States to submit to its 
jurisdiction; or
    (C) Otherwise evades the jurisdiction of the court in which a 
criminal matter is pending against the person.
    (ii) Paragraph (c)(2)(i)(A) of this section applies to a petition 
filed by a corporation if any majority shareholder, or individual filing 
the claim on behalf of the corporation:
    (A) Purposely leaves the jurisdiction of the United States;
    (B) Declines to enter or reenter the United States to submit to its 
jurisdiction; or
    (C) Otherwise evades the jurisdiction of the court in which a 
criminal case is pending against the person.
    (3) Contents of petition. (i) All petitions must include the 
following information in clear and concise terms:
    (A) The name, address, and social security or other taxpayer 
identification number of the person claiming an interest in the seized 
property who is seeking remission or mitigation;
    (B) The name of the seizing agency, the asset identifier number, and 
the date and place of seizure;
    (C) A complete description of the property, including make, model, 
and serial numbers, if any; and
    (D) A description of the petitioner's interest in the property as 
owner, lienholder, or otherwise, supported by original or certified 
bills of sale, contracts, deeds, mortgages, or other documentary 
evidence. Such documentation includes evidence establishing the source 
of funds for seized currency or the source of funds used to purchase the 
seized asset.
    (ii) Any factual recitation or documentation of any type in a 
petition must be supported by a declaration under penalty of perjury 
that meets the requirements of 28 U.S.C. 1746.
    (4) Releases. In addition to the contents of the petition for 
remission or mitigation set forth in paragraph (c)(3) of this section, 
upon request, the petitioner shall also furnish the agency with an 
instrument executed by the titled or registered owner and any other 
known claimant of an interest in the property releasing interest in such 
property.
    (5) Filing a petition. (i) A petition for remission or mitigation 
subject to administrative forfeiture is to be sent to the official 
address provided in the notice of seizure and shall be sworn to by the 
petitioner or by the petitioner's attorney upon information and belief, 
supported by the client's sworn notice of representation pursuant to 28 
U.S.C. 1746, as set out in paragraph (i)(7).
    (ii) If the notice of seizure does not provide an official address, 
the petition

[[Page 75]]

shall be addressed to the Asset Forfeiture Unit at the following 
address: Asset Forfeiture Unit, Criminal Investigations, U.S. Postal 
Inspection Service, P.O. Box 44373, Washington, DC 20026-4373.
    (iii) Submission by facsimile or other electronic means will not be 
accepted.
    (6) Agency investigation. Upon receipt of a petition, the Postal 
Inspection Service shall investigate the merits of the petition and 
prepare a written report containing the results of that investigation. 
This report shall be submitted to the Ruling Official for review and 
consideration.
    (7) Ruling. Upon receipt of the petition and the agency report, the 
Ruling Official for the Postal Inspection Service shall review the 
petition and the report, if any, and shall rule on the merits of the 
petition. No hearing shall be held.
    (8) Petitions granted. If the Ruling Official grants a remission or 
mitigation of the forfeiture, a copy of the decision shall be mailed to 
the petitioner or, if represented by an attorney, to the petitioner's 
attorney. A copy shall also be sent to the U.S. Marshals Service, or 
other property custodian. The written decision shall include the terms 
and conditions, if any, upon which the remission or mitigation is 
granted, and the procedures the petitioner must follow to obtain release 
of the property or the monetary interest therein.
    (9) Petitions denied. If the Ruling Official denies a petition, a 
copy of the decision shall be mailed to the petitioner or, if 
represented by an attorney, to the petitioner's attorney of record. A 
copy of the decision shall also be sent to the U.S. Marshals Service, or 
other property custodian. The decision shall specify the reason that the 
petition was denied. The decision shall advise the petitioner that a 
request for reconsideration of the denial of the petition may be 
submitted to the Ruling Official in accordance with paragraph (c)(10) of 
this section.
    (10) Request for reconsideration. (i) A request for reconsideration 
of the denial of the petition shall be considered if:
    (A) It is postmarked or received by the office of the Ruling 
Official within 10 days from the receipt of the notice of denial of the 
petition by the petitioner; and
    (B) The request is based on information or evidence not previously 
considered that is material to the basis for the denial or presents a 
basis clearly demonstrating that the denial was erroneous.
    (ii) In no event shall a request for reconsideration be decided by 
the same Ruling Official who ruled on the original petition.
    (iii) Only one request for reconsideration of a denial of a petition 
shall be considered.
    (11) Restoration of proceeds from sale. (i) A petition for 
restoration of the proceeds from the sale of forfeited property, or for 
the appraised value of forfeited property when the forfeited property 
has been retained by or delivered to a Government agency for official 
use, may be submitted by an owner or lienholder in cases in which the 
petitioner:
    (A) Did not know of the seizure prior to the entry of a declaration 
of forfeiture; and
    (B) Could not reasonably have known of the seizure prior to the 
entry of a declaration of forfeiture.
    (ii) Such a petition shall be submitted pursuant to paragraphs 
(c)(2) through (c)(5) of this section within 90 days of the date the 
property is sold or otherwise disposed of.
    (d) Petitions in judicial forfeiture cases--(1) Notice of seizure. 
The notice of seizure and intent to forfeit the property shall advise 
any persons who may have a present ownership interest in the property to 
submit their petitions for remission or mitigation within 30 days of the 
date they receive the notice in order to facilitate processing. 
Petitions shall be considered any time after notice until such time as 
the forfeited property is placed in official use, sold, or otherwise 
disposed of according to law, except in cases involving petitions to 
restore property. A notice of seizure shall include the title of the 
Ruling Official and the mailing and street address of the official to 
whom petitions should be sent, the name of the agency seizing the 
property, an asset identifier number, and the district court docket 
number.

[[Page 76]]

    (2) Persons who may file. A petition for remission or mitigation 
must be filed by a petitioner as defined in paragraph (b)(16) of this 
section, or as prescribed in paragraph (i)(7) and (8) of this section.
    (3) Contents of petition. (i) All petitions must include the 
following information in clear and concise terms:
    (A) The name, address, and Social Security or other taxpayer 
identification number of the person claiming an interest in the seized 
property who is seeking remission or mitigation;
    (B) The name of the seizing agency, the asset identifier number, and 
the date and place of seizure;
    (C) The district court docket number;
    (D) A complete description of the property, including the address or 
legal description of real property, and make, model, and serial numbers 
of personal property, if any; and
    (E) A description of the petitioner's interest in the property as 
owner, lienholder, or otherwise, supported by original or certified 
bills of sale, contracts, mortgages, deeds, or other documentary 
evidence.
    (ii) Any factual recitation or documentation of any type in a 
petition must be supported by a declaration under penalty of perjury 
that meets the requirements of 28 U.S.C. 1746.
    (4) Releases. In addition to the content of the petition for 
remission or mitigation set forth in paragraph (d)(3) of this section, 
the petitioner, upon request, also shall furnish the agency with an 
instrument executed by the titled or registered owner and any other 
known claimant of an interest in the property releasing the interest in 
such property.
    (5) Filing petition with Department of Justice. A petition for 
remission or mitigation of a judicial forfeiture shall be addressed to 
the Attorney General; shall be sworn to by the petitioner or by the 
petitioner's attorney upon information and belief, supported by the 
client's sworn notice of representation pursuant to 28 U.S.C. 1746, as 
set forth in paragraph (i)(7) of this section; and shall be submitted to 
the U.S. Attorney for the district in which the judicial forfeiture 
proceedings are brought.
    (6) Agency investigation and recommendation; U.S. Attorney's 
recommendation. Upon receipt of a petition, the U.S. Attorney shall 
direct the seizing agency to investigate the merits of the petition 
based on the information provided by the petitioner and the totality of 
the agency's investigation of the underlying basis for forfeiture. The 
agency shall submit to the U.S. Attorney a report of its investigation 
and its recommendation on whether the petition should be granted or 
denied. Upon receipt of the agency's report and recommendation, the U.S. 
Attorney shall forward to the Chief, Asset Forfeiture and Money 
Laundering Section, the petition, the seizing agency's report and 
recommendation, and the U.S. Attorney's recommendation on whether the 
petition should be granted or denied.
    (7) Ruling. The Chief shall rule on the petition. No hearing shall 
be held. The Chief shall not rule on any petition for remission if such 
remission was previously denied by the administrative agency pursuant to 
paragraph (c) of this section.
    (8) Petitions granted. If the Chief grants a remission or mitigates 
the forfeiture, the Chief shall mail a copy of the decision to the 
petitioner (or, if represented by an attorney, to the petitioner`s 
attorney), and shall mail or transmit electronically a copy of the 
decision to the appropriate U.S. Attorney, the U.S. Marshals Service or 
other property custodian, and the seizing agency. The written decision 
shall include the terms and conditions, if any, upon which the remission 
or mitigation is granted and the procedures the petitioner must follow 
to obtain release of the property or the monetary interest therein. The 
Chief shall advise the petitioner or the petitioner`s attorney to 
consult with the U.S. Attorney as to such terms and conditions. The U.S. 
Attorney shall confer with the seizing agency regarding the release and 
shall coordinate disposition of the property with that office and the 
U.S. Marshals Service or other property custodian.
    (9) Petitions denied. If the Chief denies a petition, a copy of that 
decision shall be mailed to the petitioner (or, if represented by an 
attorney, to the petitioner`s attorney of record), and mailed or 
transmitted electronically to

[[Page 77]]

the appropriate U.S. Attorney, the U.S. Marshals Service or other 
property custodian, and the seizing agency. The decision shall specify 
the reason that the petition was denied. The decision shall advise the 
petitioner that a request for reconsideration of the denial of the 
petition may be submitted to the Chief at the address provided in the 
decision, in accordance with paragraph (d)(10) of this section.
    (10) Request for reconsideration. (i) A request for reconsideration 
of the denial shall be considered if:
    (A) It is postmarked or received by the Asset Forfeiture and Money 
Laundering Section at the address contained in the decision denying the 
petition within 10 days from the receipt of the notice of denial of the 
petition by the petitioner;
    (B) A copy of the request is also received by the appropriate U.S. 
Attorney within 10 days of the receipt of the denial by the petitioner; 
and
    (C) The request is based on information or evidence not previously 
considered that is material to the basis for the denial or presents a 
basis clearly demonstrating that the denial was erroneous.
    (ii) In no event shall a request for reconsideration be decided by 
the Ruling Official who ruled on the original petition.
    (iii) Only one request for reconsideration of a denial of a petition 
shall be considered.
    (iv) Upon receipt of the request for reconsideration of the denial 
of a petition, disposition of the property will be delayed pending 
notice of the decision at the request of the Chief. lf the request for 
reconsideration is not received within the prescribed period, the U.S. 
Marshals Service may dispose of the property.
    (11) Restoration of proceeds from sale. (i) A petition for 
restoration of the proceeds from the sale of forfeited property, or for 
the appraised value of forfeited property when the forfeited property 
has been retained by or delivered to a Government agency for official 
use, may be submitted by an owner or lienholder in cases in which the 
petitioner:
    (A) Did not know of the seizure prior to the entry of a final order 
of forfeiture; and
    (B) Could not reasonably have known of the seizure prior to the 
entry of a final order of forfeiture.
    (ii) Such a petition must be submitted pursuant to paragraphs (d)(2) 
through (d)(5) of this section within 90 days of the date the property 
was sold or otherwise disposed of.
    (e) Criteria governing administrative and judicial remission and 
mitigation--(1) Remission. (i) The Ruling Official shall not grant 
remission of a forfeiture unless the petitioner establishes that the 
petitioner has a valid, good faith, and legally cognizable interest in 
the seized property as owner or lienholder as defined in this part and 
is an innocent owner within the meaning of 18 U.S.C. 983(d)(2)(A) or 
(d)(3)(A).
    (ii) For purposes of this paragraph (e), the knowledge and 
responsibilities of a petitioner's representative, agent, or employee 
are imputed to the petitioner where the representative, agent, or 
employee was acting in the course of that person's employment and in 
furtherance of the petitioner's business.
    (iii) The petitioner has the burden of establishing the basis for 
granting a petition for remission or mitigation of forfeited property, a 
restoration of proceeds of sale or appraised value of forfeited 
property, or a reconsideration of a denial of such a petition. Failure 
to provide information or documents and to submit to interviews, as 
requested, may result in a denial of the petition.
    (iv) The Ruling Official shall presume a valid forfeiture and shall 
not consider whether the evidence is sufficient to support the 
forfeiture.
    (v) Willful, materially false statements or information made or 
furnished by the petitioner in support of a petition for remission or 
mitigation of forfeited property, the restoration of proceeds or 
appraised value of forfeited property, or the reconsideration of a 
denial of any such petition shall be grounds for denial of such petition 
and possible prosecution for the filing of false statements.
    (2) Mitigation. (i) The Ruling Official may grant mitigation to a 
party not involved in the commission of the offense underlying 
forfeiture:

[[Page 78]]

    (A) Where the petitioner has not met the minimum conditions for 
remission, but the Ruling Official finds that some relief should be 
granted to avoid extreme hardship, and that return of the property 
combined with imposition of monetary or other conditions of mitigation 
in lieu of a complete forfeiture will promote the interest of justice 
and will not diminish the deterrent effect of the law. Extenuating 
circumstances justifying such a finding include those circumstances that 
reduce the responsibility of the petitioner for knowledge of the illegal 
activity, knowledge of the criminal record of a user of the property, or 
failure to take reasonable steps to prevent the illegal use or 
acquisition by another for some reason, such as a reasonable fear of 
reprisal; or
    (B) Where the minimum standards for remission have been satisfied 
but the overall circumstances are such that, in the opinion of the 
Ruling Official, complete relief is not warranted.
    (ii) The Ruling Official may as a matter of discretion grant 
mitigation to a party involved in the commission of the offense 
underlying the forfeiture where certain mitigating factors exist, 
including, but not limited to: The lack of a prior record or evidence of 
similar criminal conduct; if the violation does not include drug 
distribution, manufacturing, or importation, the fact that the violator 
has taken steps, such as drug treatment, to prevent further criminal 
conduct; the fact that the violation was minimal and was not part of a 
larger criminal scheme; the fact that the violator has cooperated with 
Federal, state, or local investigations relating to the criminal conduct 
underlying the forfeiture; or the fact that complete forfeiture of an 
asset is not necessary to achieve the legitimate purposes of forfeiture.
    (iii) Mitigation may take the form of a monetary condition or the 
imposition of other conditions relating to the continued use of the 
property, and the return of the property, in addition to the imposition 
of any other costs that would be chargeable as a condition to remission. 
This monetary condition is considered as an item of cost payable by the 
petitioner, and shall be deposited into the Postal Inspection Service's 
Fund as an amount realized from forfeiture in accordance with the 
applicable statute. If the petitioner fails to accept the Ruling 
Official's mitigation decision or any of its conditions, or fails to pay 
the monetary amount within 20 days of the receipt of the decision, the 
property shall be sold, and the monetary amount imposed and other costs 
chargeable as a condition to mitigation shall be subtracted from the 
proceeds of the sale before transmitting the remainder to the 
petitioner.
    (f) Special rules for specific petitioners--(1) General creditors. A 
general creditor may not be granted remission or mitigation of 
forfeiture unless that person otherwise qualifies as petitioner under 
this part.
    (2) Rival claimants. If the beneficial owner of the forfeited 
property and the owner of a security interest in the same property each 
files a petition, and if both petitions are found to be meritorious, the 
claims of the beneficial owner shall take precedence.
    (3) Voluntary bailments. A petitioner who allows another to use the 
petitioner's property without cost, and who is not in the business of 
lending money secured by property or of leasing or renting property for 
profit, shall be granted remission or mitigation of forfeiture in 
accordance with the provisions of paragraph (e) of this section.
    (4) Lessors. A person engaged in the business of leasing or renting 
real or personal property on a long-term basis with the right to 
sublease shall not be entitled to remission or mitigation of a 
forfeiture of such property unless the lessor can demonstrate compliance 
with all the requirements of paragraph (e) of this section.
    (5) Straw owners. A petition by any person who has acquired a 
property interest recognizable under this part, and who knew or had 
reason to believe that the interest was conveyed by the previous owner 
for the purpose of circumventing seizure, forfeiture, or the regulations 
in this part, shall be denied. A petition by a person who purchases or 
owns property for another who has a record for related crimes as defined 
in paragraph (b)(19), or a petition by a lienholder who knows or has 
reason to believe that the purchaser or owner of record is not the real 
purchaser or

[[Page 79]]

owner, shall be denied unless both the purchaser of record and the real 
purchaser or owner meet the requirements of paragraph (e) of this 
section.
    (6) Judgment creditors. (i) A judgment creditor will be recognized 
as a lienholder if:
    (A) The judgment was duly recorded before the seizure of the 
property for forfeiture;
    (B) Under applicable state or other local law, the judgment 
constitutes a valid lien on the property that attached to it before the 
seizure of the property for forfeiture; and
    (C) The petitioner had no knowledge of the commission of any act or 
acts giving rise to the forfeiture at the time the judgment became a 
lien on the forfeited property.
    (ii) A judgment creditor will not be recognized as a lienholder if 
the property in question is not property of which the judgment debtor is 
entitled to claim ownership under applicable state or other local law 
(e.g., stolen property). A judgment creditor is entitled under this part 
to no more than the amount of the judgment, exclusive of any interest, 
costs, or other fees including attorney's fees associated with the 
action that led to the judgment or its collection.
    (iii) A judgment creditor's lien must be registered in the district 
where the property is located if the judgment was obtained outside the 
district.
    (g) Terms and conditions of remission and mitigation--(1) Owners. 
(i) An owner's interest in property that has been forfeited is 
represented by the property itself or by a monetary interest equivalent 
to that interest at the time of seizure. Whether the property or a 
monetary equivalent will be remitted to an owner shall be determined at 
the discretion of the Ruling Official.
    (ii) If a civil judicial forfeiture action against the property is 
pending, release of the property must await an appropriate court order.
    (iii) Where the Government sells or disposes of the property prior 
to the grant of the remission, the owner shall receive the proceeds of 
that sale, less any costs incurred by the Government in the sale. The 
Ruling Official, as a matter of discretion, may waive the deduction of 
costs and expenses incident to the forfeiture.
    (iv) Where the owner does not comply with the conditions imposed 
upon release of the property by the Ruling Official, the property shall 
be sold. Following the sale, the proceeds shall be used to pay all costs 
of the forfeiture and disposition of the property, in addition to any 
monetary conditions imposed. The remaining balance shall be paid to the 
owner.
    (2) Lienholders. (i) When the forfeited property is to be retained 
for official use or transferred to a state or local law enforcement 
agency or foreign government pursuant to law, and remission or 
mitigation has been granted to a lienholder, the recipient of the 
property shall assure that:
    (A) In the case of remission, the lien is satisfied as determined 
through the petition process; or
    (B) In the case of mitigation, an amount equal to the net equity, 
less any monetary conditions imposed, is paid to the lienholder prior to 
the release of the property to the recipient agency of foreign 
government.
    (ii) When the forfeited property is not retained for official use or 
transferred to another agency or foreign government pursuant to law, the 
lienholder shall be notified by the Ruling Official of the right to 
select either of the following alternatives:
    (A) Return of Property. The lienholder may obtain possession of the 
property after paying the United States, through the Ruling Official, 
the costs and expenses incident to the forfeiture, the amount, if any, 
by which the appraised value of the property exceeds the lienholder's 
net equity in the property, and any amount specified in the Ruling 
Official's decision as a condition to remit the property. The Ruling 
Official, as a matter of discretion, may waive costs and expenses 
incident to the forfeiture. The Ruling Official shall forward a copy of 
the decision, a memorandum of disposition, and the original releases to 
the division or field office responsible for the seizure and custody of 
the property or, if applicable, to the U.S. Marshals Service, who shall 
thereafter release the property to the lienholder; or

[[Page 80]]

    (B) Sale of Property and Payment to Lienholder. Subject to the 
provisions of paragraph (i)(1) of this section, upon sale of the 
property, the lienholder may receive the payment of a monetary amount up 
to the sum of the lienholder's net equity, less the expenses and costs 
incident to the forfeiture and sale of the property, and any other 
monetary conditions imposed. The Ruling Official, as a matter of 
discretion, may waive costs and expenses incident to the forfeiture.
    (iii) If the lienholder does not notify the Ruling Official of the 
selection of one of the two options set forth in this paragraph 
(g)(2)(ii) within 20 days of the receipt of notification, the Ruling 
Official shall direct the division or field office responsible for the 
seizure or custody, or if applicable, the U.S. Marshals Service, to sell 
the property and pay the lienholder an amount up to the net equity, less 
the costs and expenses incurred incident to the forfeiture and sale, and 
any monetary conditions imposed. In the event a lienholder subsequently 
receives a payment of any kind on the debt owed for which he or she 
received payment as a result of the granting of remission or mitigation, 
the lienholder shall reimburse the Postal Service Forfeiture Fund to the 
extent of the payment received.
    (iv) Where the lienholder does not comply with the conditions 
imposed upon the release of the property, the property shall be sold 
after forfeiture. From the proceeds of the sale, all costs incident to 
the forfeiture and sale shall first be deducted, and the balance up to 
the net equity, less any monetary conditions, shall be paid to the 
lienholder.
    (h) Remission procedures for victims. This section applies to 
victims of an offense underlying the forfeiture of property, or of a 
related offense, who do not have a present ownership interest in the 
forfeited property (or, in the case of multiple victims of an offense, 
who do not have a present ownership interest in the forfeited property 
that is clearly superior to that of other petitioner victims). This 
section applies only with respect to property forfeited pursuant to 
statutes that explicitly authorize restoration or remission of forfeited 
property to victims. A victim requesting remission under this section 
may concurrently request remission as an owner, pursuant to the 
regulations set forth in paragraphs (c), (d), and (g) of this section. 
The claims of victims granted remission as both an owner and victim 
shall, like other owners, have priority over the claims of any non-owner 
victims whose claims are recognized under this section.
    (1) Remission procedure for victims--(i) Where to file. Persons 
seeking remission as victims shall file petitions for remission with the 
appropriate deciding official as described in paragraph (c)(5) 
(administrative forfeiture) or (d)(5) (judicial forfeiture) of this 
section.
    (ii) Time of decision. The Ruling Official or that person's designee 
as described in paragraph (a)(2) of this section may consider petitions 
filed by persons claiming eligibility for remission as victims at any 
time prior to the disposal of the forfeited property in accordance with 
law.
    (iii) Request for reconsideration. Persons denied remission under 
this section may request reconsideration of the denial, in accordance 
with paragraph (c)(10) (administrative forfeiture) or (d)(10) (judicial 
forfeiture) of this section.
    (2) Qualification to file. A victim, as defined in paragraph (b)(22) 
of this section, may be granted remission, if in addition to complying 
with the other applicable provisions of this paragraph (h), the victim 
satisfactorily demonstrates that:
    (i) A pecuniary loss of a specific amount has been directly caused 
by the criminal offense, or related offense, that was the underlying 
basis for the forfeiture, and that the loss is supported by documentary 
evidence including invoices and receipts;
    (ii) The pecuniary loss is the direct result of the illegal acts and 
is not the result of otherwise lawful acts that were committed in the 
course of a criminal offense;
    (iii) The victim did not knowingly contribute to, participate in, 
benefit from, or act in a willfully blind manner towards commission of 
the offense, or related offense, that was the underlying basis of the 
forfeiture;
    (iv) The victim has not in fact been compensated for the wrongful 
loss of

[[Page 81]]

the property by the perpetrator or others; and
    (v) The victim does not have recourse reasonably available to other 
assets from which to obtain compensation for the wrongful loss of the 
property.
    (3) Pecuniary loss. The amount of the pecuniary loss suffered by a 
victim for which remission may be granted is limited to the fair market 
value of the property of which the victim was deprived as of the date of 
the occurrence of the loss. No allowance shall be made for interest 
forgone or for collateral expenses incurred to recover lost property or 
to seek other recompense.
    (4) Torts. A tort associated with illegal activity that formed the 
basis for the forfeiture shall not be a basis for remission, unless it 
constitutes the illegal activity itself, nor shall remission be granted 
for physical injuries to a petitioner or for damage to a petitioner's 
property.
    (5) Denial of petition. As a matter of discretion, the Ruling 
Official may decline to grant remission where:
    (i) There is substantial difficulty in calculating the pecuniary 
loss incurred by the victim or victims;
    (ii) The amount of the remission, if granted, would be small 
compared with the amount of expenses incurred by the Government in 
determining whether to grant remission; or
    (iii) The total number of victims is large and the monetary amount 
of the remission so small as to make its granting impractical.
    (6) Pro rata basis. In granting remission to multiple victims 
pursuant to this section, the Ruling Official should generally grant 
remission on a pro rata basis to recognized victims when petitions 
cannot be granted in full due to the limited value of the forfeited 
property. However, the Ruling Official may consider, among others, the 
following factors in establishing appropriate priorities in individual 
cases:
    (i) The specificity and reliability of the evidence establishing a 
loss;
    (ii) The fact that a particular victim is suffering an extreme 
financial hardship;
    (iii) The fact that a particular victim has cooperated with the 
Government in the investigation related to the forfeiture or to a 
related persecution or civil action; and
    (iv) In the case of petitions filed by multiple victims of related 
offenses, the fact that a particular victim is a victim of the offense 
underlying the forfeiture.
    (7) Reimbursement. Any petitioner granted remission pursuant to this 
part shall reimburse the Postal Service Forfeiture Fund for the amount 
received, to the extent the individual later receives compensation for 
the loss of property from any other source. The petitioner shall 
surrender the reimbursement upon payment from any secondary source.
    (8) Claims of financial institution regulatory agencies. In cases 
involving property forfeitable under 18 U.S.C. 981(a)(1)(C) or (D), the 
Ruling Official may decline to grant a petition filed by a petitioner in 
whole or in part due to the lack of sufficient forfeitable funds to 
satisfy both the petitioner and claims of the financial institution 
regulatory agencies pursuant to 18 U.S.C. 981(e)(3) or (7). Generally, 
claims of financial institution regulatory agencies pursuant to 18 
U.S.C. 981(e)(3) or (7) shall take priority over claims of victims.
    (9) Amount of remission. Consistent with the Assets Forfeiture Fund 
statute (28 U.S.C. 524(c)), the amount of remission shall not exceed the 
victim's share of the net proceeds of the forfeitures associated with 
the activity that caused the victim's loss. The calculation of net 
proceeds includes, but is not limited to, the deduction of allowable 
Government expenses and valid third-party claims.
    (i) Miscellaneous provisions--(1) Priority of payment. Except where 
otherwise provided in this part, costs incurred by the Postal Inspection 
Service, the U.S. Marshals Service, and other agencies participating in 
the forfeiture that were incident to the forfeiture, sale, or other 
disposition of the property shall be deducted from the amount available 
for remission or mitigation. Such costs include, but are not limited to, 
court costs, storage costs, brokerage and other sales-related costs, the 
amount of any liens

[[Page 82]]

and associated costs paid by the Government on the property, costs 
incurred in paying the ordinary and necessary expenses of a business 
seized for forfeiture, awards for information as authorized by statute, 
expenses of trustees or other assistants pursuant to paragraph (i)(3) of 
this section, investigative or prosecutorial costs specially incurred 
incident to the particular forfeiture, and costs incurred incident to 
the processing of petitions for remission or mitigation. The remaining 
balance shall be available for remission or mitigation. The Ruling 
Official shall direct the distribution of the remaining balance in the 
following order or priority, except that the Ruling Official may 
exercise discretion in determining the priority between petitioners 
belonging to classes described in paragraph (i)(1)(iii) and (iv) of this 
section in exceptional circumstances:
    (i) Owners;
    (ii) Lienholders;
    (iii) Federal financial institution regulatory agencies (pursuant to 
paragraph (i)(5) of this section), not constituting owners or 
lienholders; and
    (iv) Victims not constituting owners or lienholders pursuant to 
paragraph (h) of this part.
    (2) Sale or disposition of property prior to ruling. If forfeited 
property has been sold or otherwise disposed of prior to a ruling, the 
Ruling Official may grant relief in the form of a monetary amount. The 
amount realized by the sale of property is presumed to be the value of 
the property. Monetary relief shall not be greater than the appraised 
value of the property at the time of seizure and shall not exceed the 
amount realized from the sale or other disposition. The proceeds of the 
sale shall be distributed as follows:
    (i) Payment of the Government's expenses incurred incident to the 
forfeiture and sale, including court costs and storage charges, if any;
    (ii) Payment to the petitioner of an amount up to that person's 
interest in the property;
    (iii) Payment to the Postal Service Forfeiture Fund of all other 
costs and expenses incident to the forfeiture;
    (iv) In the case of victims, payment of any amount up to the amount 
of that person's loss; and
    (v) Payment of the balance remaining, if any, to the Postal Service 
Forfeiture Fund.
    (3) Trustees and other assistants. As a matter of discretion, the 
Ruling Official, with the approval of the Chief Postal Inspector, may 
use the services of a trustee, other Government official, or appointed 
contractors to notify potential petitioners, process petitions, and make 
recommendations to the Ruling Official on the distribution of property 
to petitioners. The expense for such assistance shall be paid out of the 
forfeited funds.
    (4) Other agencies of the United States. Where another agency of the 
United States is entitled to remission or mitigation of forfeited assets 
because of an interest that is recognizable under this part or is 
eligible for such transfer pursuant to 18 U.S.C. 981(e)(6), such agency 
shall request the transfer in writing, in addition to complying with any 
applicable provisions of paragraphs (c) through (e) of this section. The 
decision to make such transfer shall be made in writing by the Ruling 
Official.
    (5) Financial institution regulatory agencies. A Ruling Official may 
direct the transfer of property under 18 U.S.C. 981(e) to certain 
Federal financial institution regulatory agencies or an entity acting in 
their behalf, upon receipt of a written request, in lieu of ruling on a 
petition for remission or mitigation.
    (6) Transfers to foreign governments. A Ruling Official may decline 
to grant remission to any petitioner other than an owner or lienholder 
so that forfeited assets may be transferred to a foreign government 
pursuant to 18 U.S.C. 981(i)(1); 19 U.S.C. 1616a(c)(2); or 21 U.S.C. 
881(e)(1)(E).
    (7) Filing by attorneys. (i) A petition for remission or mitigation 
may be filed by a petitioner or by that person's attorney or legal 
guardian. If an attorney files on behalf of the petitioner, the petition 
must include a signed and sworn statement by the client-petitioner 
stating that:
    (A) The attorney has the authority to represent the petitioner in 
this proceeding;
    (B) The petitioner has fully reviewed the petition; and

[[Page 83]]

    (C) The petition is truthful and accurate in every respect.
    (ii) Verbal notification of representation is not acceptable. 
Responses and notification of rulings shall not be sent to an attorney 
claiming to represent a petitioner unless a written notice of 
representation is filed. No extensions of time shall be granted due to 
delays in submission of the notice of representation.
    (8) Consolidated petitions. At the discretion of the Ruling Official 
in individual cases, a petition may be filed by one petitioner on behalf 
of other petitioners, provided the petitions are based on similar 
underlying facts, and the petitioner who files the petition has written 
authority to do so on behalf of other petitioners. This authority must 
be either expressed in documents giving the petitioner the authority to 
file petitions for remission, or reasonably implied from documents 
giving the petitioner express authority to file claims or lawsuits 
related to the course of conduct in question on behalf of these 
petitioners. An insurer or an administrator of an employee benefit plan, 
for example, which itself has standing to file a petition as a 
``victim'' within the meaning of paragraph (b)(22) of this section, may 
also file a petition on behalf of its insured or plan beneficiaries for 
any claims they may have based on co-payments made to the perpetrator of 
the offense underlying the forfeiture, or the perpetrator of a ``related 
offense'' within the meaning of paragraph (b)(20), if the authority to 
file claims or lawsuits is contained in the document or documents 
establishing the plan. Where such a petition is filed, any amounts 
granted as remission must be transferred to the other petitioners, not 
the party filing the petition; although, as a matter of discretion, the 
Ruling Official may use the actual petitioner as an intermediary for 
transferring the amounts authorized as a remission to the other 
petitioners.

[77 FR 25602, May 1, 2012]



Sec. 233.10  [Reserved]



Sec. 233.11  Mail reasonably suspected of being dangerous to persons 
or property.

    (a) Screening of mail. When the Chief Postal Inspector determines 
that there is a credible threat that certain mail may contain a bomb, 
explosives, or other material that would endanger life or property, 
including firearms which are not mailable under Section C024 of the 
Domestic Mail Manual, the Chief Postal Inspector may, without a search 
warrant or the sender's or addressee's consent, authorize the screening 
of such mail by any means capable of identifying explosives, nonmailable 
firearms, or other dangerous contents in the mails. The screening must 
be within the limits of this section and without opening mail that is 
sealed against inspection or revealing the contents of correspondence 
within mail that is sealed against inspection. The screening is 
conducted according to these requirements.
    (1) Screening of mail authorized by paragraph (a) of this section 
must be limited to the least quantity of mail necessary to respond to 
the threat.
    (2) Such screening must be done in a manner that does not avoidably 
delay the screened mail.
    (3) The Chief Postal Inspector may authorize screening of mail by 
postal employees and by persons not employed by the Postal Service under 
such instruction that require compliance with this part and protect the 
security of the mail. No information obtained from such screening may be 
disclosed unless authorized by this part.
    (4) Mail of insufficient weight to pose a hazard to air or surface 
transportation, or to contain firearms which are not mailable under 
Section C024 of the Domestic Mail Manual, and international transit mail 
must be excluded from such screening.
    (5) After screening conducted under paragraph (a) of this section, 
mail that is reasonably suspected of posing an immediate and substantial 
danger to life or limb, or an immediate and substantial danger to 
property, may be treated by postal employees as provided in paragraph 
(b) of this section.

[[Page 84]]

    (6) After screening, mail sealed against inspection that presents 
doubts about whether its contents are hazardous, that cannot be resolved 
without opening, must be reported to the Postal Inspection Service. Such 
mail must be disposed of under instructions promptly furnished by the 
Inspection Service.
    (b) Threatening pieces of mail. Mail, sealed or unsealed, reasonably 
suspected of posing an immediate danger to life or limb or an immediate 
and substantial danger to property may, without a search warrant, be 
detained, opened, removed from postal custody, and processed or treated, 
but only to the extent necessary to determine and eliminate the danger 
and only if a complete written and sworn statement of the detention, 
opening, removal, or treatment, and the circumstances that prompted it, 
signed by the person purporting to act under this section, is promptly 
forwarded to the Chief Postal Inspector.
    (c) Reports. Any person purporting to act under this section who 
does not report his or her action to the Chief Postal Inspector under 
the requirements of this section, or whose action is determined after 
investigation not to have been authorized, is subject to disciplinary 
action or criminal prosecution or both.

[61 FR 28060, June 4, 1996]



Sec. 233.12  Civil penalties.

    False representation and lottery orders--
    (a) Issuance. Pursuant to 39 U.S.C. 3005, the Judicial Officer of 
the Postal Service, acting upon a satisfactory evidentiary basis, may 
issue a mail return and/or a cease and desist order against anyone 
engaged in conducting a scheme or device for obtaining money or property 
through the mail by means of a false representation, including the 
mailing of matter which is nonmailable, or engaged in conducting a 
lottery, gift enterprise, or scheme for the distribution of money or of 
real or personal property, by lottery, chance, or drawing of any kind.
    (b) Enforcement. Pursuant to 39 U.S.C. 3012, any person:
    (1) Who, through the use of the mail, evades or attempts to evade 
the effect of an order issued under 39 U.S.C. 3005(a)(1) or 3005(a)(2);
    (2) Who fails to comply with an order issued under 39 U.S.C. 
3005(a)(3); or
    (3) Who (other than a publisher described by 39 U.S.C. 3007(b)) has 
actual knowledge of any such order, is in privity with any person 
described by paragraph (b) (1) or (2) of this section, and engages in 
conduct to assist any such person to evade, attempt to evade, or fail to 
comply with such order, as the case may be, through the use of the mail;

Shall be liable to the United States for a civil penalty in an amount 
not to exceed $11,000 for each day that such person engages in conduct 
described by this paragraph (b). A separate penalty may be assessed 
under this paragraph (b) with respect to the conduct described by 
paragraphs (b) (1), (2), or (3) of this section.

[61 FR 56450, Nov. 1, 1996]



PART 235_DEFENSE DEPARTMENT LIAISON--Table of Contents



Sec.
235.1 Postal Service to the Armed Forces.
235.2 Civil preparedness.



Sec. 235.1  Postal Service to the Armed Forces.

    (a) Publication 38, Postal Agreement with the Department of Defense, 
defines the Postal Service's responsibilities for providing postal 
service to the Armed Forces.
    (b) The Chief Inspector is responsible for military liaison.
    (c) Postal inspectors provide liaison between postmasters and 
military commanders, visit military installations as required, and make 
any necessary recommendations.

(39 U.S.C. 401(2), 402, 403, 404, as enacted by Pub. L. 91-375, 84 Stat. 
719)

[38 FR 26193, Sept. 9, 1973]



Sec. 235.2  Civil preparedness.

    (a) Mission. The prime objective of postal emergency preparedness 
planning is to maintain or restore essential postal service in a 
national emergency, natural disaster, or disruptive domestic crisis.

[[Page 85]]

    (b) Emergency Coordinator. The Chief Inspector is designated 
Emergency Coordinator for the Postal Service. As Emergency Coordinator, 
he provides general direction and coordination of the following 
programs:
    (1) National Civil Preparedness and Defense Mobilization;
    (2) Natural Disaster Preparedness;
    (3) Emergency Response to Disruptive Domestic Crisis.
    (c) Regional Emergency Coordinator. The Chief Inspector may delegate 
authority to Regional Chief Postal Inspectors, or others, for the 
function of Regional Emergency Coordinator and the general direction and 
coordination of all such programs within the Postal Regions, as are 
conducted by him at the National level.
    (d) Postmaster General emergency line of succession. (1) Deputy 
Postmaster General; (2) Senior Assistant Postmaster General, 
Administration; (3) Senior Assistant Postmaster General, Operations.
    (e) Headquarters and field lines of succession. Each Headquarters 
organizational unit shall establish its own internal line of succession 
to provide for continuity under emergency conditions. Each Regional 
Postmaster General, Regional Chief Inspector, Postal Data Center 
Director, Inspector in Charge, and postmaster at first-class post 
offices shall prepare a succession list of officials who will act in his 
stead in the event he is incapacitated or absent in an emergency. Orders 
of succession shall be shown by position titles, except those of the 
Inspection Service may be shown by names.
    (f) Field responsibilities. Postmasters and heads of other 
installations shall:
    (1) Carry out civil preparedness assignments, programs, etc., as 
directed by regional officials.
    (2) Comply with, and cooperate in community civil preparedness plans 
(including exercise) for evacuation, take cover and other survival 
measures prescribed for local populations.
    (3) Designate representatives for continuing liaison with local 
civil preparedness organizations where such activity will not interfere 
with normal duties.
    (4) Endeavor to serve (at their own option) as members on the staff 
of the local civil preparedness director, provided such service will not 
interfere with their primary postal responsibility in an emergency.
    (5) Authorize and encourage their employees to participate 
voluntarily in nonpostal pre-emergency training programs and exercises 
in cooperation with States and localities.

(39 U.S.C. 401(2), 402, 403, 404, as enacted by Pub. L. 91-375, 84 Stat. 
719)

[38 FR 26193, Sept. 9, 1973]



Post Office Organization and Administration--Table of Contents





PART 241_ESTABLISHMENT CLASSIFICATION, AND DISCONTINUANCE--Table of 
Contents



Sec.
241.1 Post offices.
241.2 Stations and branches.
241.3 Discontinuance of USPS-operated retail facilities.
241.4 Expansion, relocation, and construction of post offices.

    Authority: 39 U.S.C. 101, 401, 403, 404, 410, 1001.



Sec. 241.1  Post offices.

    (a) Establishment. Post Offices are established and maintained at 
locations deemed necessary to ensure that regular and effective postal 
services are available to all customers within specified geographic 
boundaries. A Post Office may be operated or staffed by a postmaster or 
by another type of postal employee at the direction of the postmaster, 
including when the postmaster is not physically present.
    (b) Classification. As of October 1 of each year, Post Offices are 
categorized through a cost ascertainment grouping (CAG) process based on 
allowable postal revenue units for the second preceding fiscal year as 
follows:
    (1) CAG A-G. Post offices having 950 or more revenue units.
    (2) CAG H-J. Post offices having 190 but less than 950 revenue 
units.
    (3) CAG K. Post offices having 36 but less than 190 revenue units.
    (4) CAG L. Post offices having less than 36 revenue units.

[76 FR 41420, July 14, 2011, as amended at 76 FR 66187, Oct. 26, 2011]

[[Page 86]]



Sec. 241.2  Stations and branches.

    (a) Description. (1) Stations are established within the corporate 
limits or boundary, and branches are established outside the corporate 
limits or boundary of the city, town, or village in which the main post 
office is located. Stations and branches may be designated by number, 
letter or name. As a general rule, branches are named.
    (2) Stations and branches transact registry and money order 
business, sell postage supplies, and accept matter for mailing. Delivery 
service, post office boxes, and other services may be provided when 
directed by the postmaster.
    (3) Stations and branches, except nonpersonnel rural stations and 
branches, are designated as independent when registered and other mail 
is received or dispatched without passing through the main office.
    (b) Classification--(1) Classified. Operated by postal employees in 
quarters provided by the Federal Government.
    (2) Contract. Operated under contract by persons who are not Federal 
Government employees. Persons operating contract stations and branches 
are independent contractors and neither the contractors nor any person 
employed by them to assist in the conduct of contract stations or 
branches shall be employees of the Federal Government for any purpose 
whatsoever.

(39 U.S.C. 401)

[36 FR 4764, Mar. 12, 1971]



Sec. 241.3  Discontinuance of USPS-operated retail facilities.

    (a) Introduction--(1) Coverage. (i) This section establishes the 
rules governing the Postal Service's consideration of whether an 
existing retail Post Office, station, or branch should be discontinued. 
The rules cover any proposal to:
    (A) Replace a USPS-operated post office, station, or branch with a 
contractor-operated retail facility;
    (B) Combine a USPS-operated Post Office, station, or branch with 
another USPS-operated retail facility, or
    (C) Discontinue a USPS-operated post office, station, or branch 
without providing a replacement facility.
    (ii) The conversion of a Post Office into, or the replacement of a 
Post Office with, another type of USPS-operated retail facility is not a 
discontinuance action subject to this section. A change in the staffing 
of a Post Office such that it is staffed only part-time by a postmaster, 
or not staffed at all by a postmaster, but rather by another type of 
USPS employee, is not a discontinuance action subject to this section.
    (iii) The regulations in this section are mandatory only with 
respect to discontinuance actions for which initial feasibility studies 
have been initiated on or after July 14, 2011. Unless otherwise provided 
by responsible personnel, the rules under Sec. 241.3 as in effect prior 
to July 14, 2011 shall apply to discontinuance actions for which initial 
feasibility studies have been initiated prior to July 14, 2011. 
Discontinuance actions pending as of December 1, 2011, that pertain to 
the conversion of a Post Office to another type of USPS-operated 
facility are no longer subject to these regulations.
    (2) Definitions. As used in this section, the following terms have 
the following meanings:
    (i) ``USPS-operated retail facility'' includes any Postal Service 
employee-operated post office, station, or branch, but does not include 
any station, branch, community post office, or other retail facility 
operated by a contractor.
    (ii) ``Contractor-operated retail facility'' includes any station, 
branch, community post office, or other facility, including a private 
business, offering retail postal services that is operated by a 
contractor, and does not include any USPS-operated retail facility.
    (iii) ``Closing'' means an action in which Post Office operations 
are permanently discontinued without providing a replacement facility in 
the community.
    (iv) ``Consolidation'' means an action that converts a Postal 
Service-operated retail facility into a contractor-operated retail 
facility. The resulting contractor-operated retail facility reports to a 
Postal Service-operated retail facility.
    (v) ``Discontinuance'' means either a closure or a consolidation.
    (3) Requirements. A District Manager or the responsible Headquarters 
Vice

[[Page 87]]

President, or a designee of either, may initiate a feasibility study of 
a USPS-operated facility for possible discontinuance. Any decision to 
close or consolidate a USPS-operated retail facility may be effected 
only upon the consideration of certain factors. These include the effect 
on the community served; the effect on employees of the USPS-operated 
retail facility; compliance with government policy established by law 
that the Postal Service must provide a maximum degree of effective and 
regular postal services to rural areas, communities, and small towns 
where post offices are not self-sustaining; the economic savings to the 
Postal Service; and any other factors the Postal Service determines 
necessary. In addition, certain mandatory procedures apply as follows:
    (i) The public must be given 60 days' notice of a proposed action to 
enable the persons served by a USPS-operated retail facility to evaluate 
the proposal and provide comments.
    (ii) After public comments are received and taken into account, any 
final determination to close or consolidate a USPS-operated retail 
facility must be made in writing and must include findings covering all 
the required considerations.
    (iii) The written determination must be made available to persons 
served by the USPS-operated retail facility at least 60 days before the 
discontinuance takes effect.
    (iv) Within the first 30 days after the written determination is 
made available, any person regularly served by a Post Office subject to 
discontinuance may appeal the decision to the Postal Regulatory 
Commission. Where persons regularly served by another type of USPS-
operated retail facility subject to discontinuance file an appeal with 
the Postal Regulatory Commission, the General Counsel reserves the right 
to assert defenses, including the Commission's lack of jurisdiction over 
such appeals. For purposes of determining whether an appeal is filed 
within the 30-day period, receipt by the Commission is based on the 
postmark of the appeal, if sent through the mail, or on other 
appropriate documentation or indicia, if sent through another lawful 
delivery method.
    (v) The Commission may only affirm the Postal Service determination 
or return the matter for further consideration but may not modify the 
determination.
    (vi) The Commission is required to make any determination subject to 
39 U.S.C. 404(d)(5) no later than 120 days after receiving the appeal.
    (vii) The following table summarizes the notice and appeal periods 
defined by statute.

                        Public Notice of Proposal
------------------------------------------------------------------------
 
-------------------------------------------------------------------------
                              60-day notice
------------------------------------------------------------------------


                  Public Notice of Final Determination
------------------------------------------------------------------------
 
------------------------------------------------------------------------
30 days for filing any appeal               Wait at least 60 days from
Up to 120 days for appeal consideration      first day after posting
 and decision                                final determination before
                                             closing or consolidating
                                             USPS-operated retail
                                             facility.
------------------------------------------------------------------------

    (4) Additional requirements. This section also includes:
    (i) Rules to ensure that the community's identity as a postal 
address is preserved.
    (ii) Rules for consideration of a proposed discontinuance and for 
its implementation, if approved. These rules are designed to ensure that 
the reasons leading to discontinuance of a particular USPS-operated 
retail facility are fully articulated and disclosed at a stage that 
enables customer participation to make a helpful contribution toward the 
final decision.
    (5) Initial feasibility study. A District Manager, the responsible 
Headquarters Vice President, or a designee of either may initiate a 
feasibility study of a USPS-operated retail facility's potential 
discontinuance, in order to assist the District Manager in determining 
whether to proceed with a written proposal to discontinue the facility.
    (i) Permissible circumstances. The initial feasibility study may be 
based upon circumstances including, but not limited to, the following:
    (A) A postmaster vacancy;
    (B) Emergency suspension of the USPS-operated retail facility due to 
cancellation of a lease or rental agreement when no suitable alternate 
quarters are available in the community, a fire or natural disaster, 
irreparable damage when no suitable alternate

[[Page 88]]

quarters are available in the community, challenge to the sanctity of 
the mail, or similar reasons;
    (C) Earned workload below the minimum established level for the 
lowest non-bargaining (EAS) employee grade;
    (D) Insufficient customer demand, evidenced by declining or low 
volume, revenue, revenue units, local business activity, or local 
population trends;
    (E) The availability of reasonable alternate access to postal 
services for the community served by the USPS-operated retail facility; 
or
    (F) The incorporation of two communities into one or other special 
circumstances.
    (ii) Impermissible circumstances. The following circumstances may 
not be used to justify initiation of an initial feasibility study:
    (A) Any claim that the continued operation of a building without 
handicapped modifications is inconsistent with the Architectural 
Barriers Act (42 U.S.C. 4151 et seq.);
    (B) The absence of running water or restroom facilities;
    (C) Compliance with the Occupational Safety and Health Act of 1970 
(29 U.S.C. 651 et seq.); or
    (D) In the absence of any circumstances identified in paragraph 
(a)(5)(i) of this section, the operation of a small Post Office at a 
deficit.
    (iii) Notice to customers. Local management must provide 
notification and questionnaires to customers at the USPS-operated retail 
facility under study. Local management may determine whether 
notification is appropriate through media outlets. In addition, the 
following customers that receive delivery service from the USPS-operated 
retail facility must receive notification and questionnaires by mail:
    (A) Post Office Box customers at the USPS-operated retail facility 
under study;
    (B) Customers whose delivery carrier is stationed out of the USPS-
operated retail facility under study;
    (C) Customers in the delivery area of the same ZIP Code as the 
retail facility under study, regardless of whether the delivery carriers 
for those customers are stationed out of the retail facility under study 
or out of a nearby facility; and
    (D) Customers whom the retail facility under study serves for allied 
delivery services such as mail pick-up.
    (iv) Initial feasibility study due to emergency suspension. Wherever 
possible when an initial feasibility study is to be initiated under 
Sec. 241.3(a)(5)(i)(B) (for example, when it is anticipated that a 
lease or rental agreement will be cancelled with no suitable alternate 
quarters available in the community), responsible personnel should 
initiate the initial feasibility study sufficiently in advance of the 
circumstance prompting the emergency suspension to allow a meaningful 
opportunity for public input to be taken into account. If public input 
cannot be sought sufficiently in advance of the end date of the lease or 
rental agreement, responsible personnel should endeavor, to the extent 
possible, to continue operation of the USPS-operated retail facility for 
the duration necessary to gather public input and make a more fully 
informed decision on whether to proceed with a discontinuance proposal. 
Customers formerly served by the suspended facility should receive 
notice under paragraph (a)(5)(iii) of this section, including by mail, 
to the same extent that they would have if the facility were not in 
suspended status at the time of the initial feasibility study, proposal, 
or final determination.
    (b) Preservation of community address--(1) Policy. The Postal 
Service permits the use of a community's separate address to the extent 
practicable.
    (2) ZIP Code assignment. The ZIP Code for each address formerly 
served from the discontinued USPS-operated retail facility should be 
kept, wherever practical. In some cases, the ZIP Code originally 
assigned to the discontinued USPS-operated retail facility may be 
changed if the responsible District Manager receives approval from his 
or her Vice President, Area Operations, before any proposal to 
discontinue the USPS-operated retail facility is posted.
    (i) In a consolidation, the ZIP Code for the replacement contractor-
operated retail facility is the ZIP Code originally assigned to the 
discontinued facility.

[[Page 89]]

    (ii) If the ZIP Code is changed and the parent or gaining USPS-
operated retail facility covers several ZIP Codes, the ZIP Code must be 
that of the delivery area within which the facility is located.
    (3) USPS-operated retail facility's city name in address. If all the 
delivery addresses using the city name of the USPS-operated retail 
facility being discontinued continue to use the same ZIP Code, customers 
may continue to use the discontinued facility's city name in their 
addresses, instead of that of the new delivering USPS-operated retail 
facility.
    (4) Name of facility established by consolidation. If a USPS-
operated retail facility is consolidated by establishing in its place a 
contractor-operated facility, the replacement unit can be given the same 
name of the facility that is replaced, if appropriate in light of the 
nature of the contract and level of service provided.
    (c) Initial proposal--(1) In general. If a District Manager believes 
that the discontinuance of a USPS-operated retail facility within his or 
her responsibility may be warranted, the District Manager:
    (i) Must use the standards and procedures in Sec. 241.3(c) and (d).
    (ii) Must investigate the situation.
    (iii) May propose the USPS-operated retail facility be discontinued.
    (2) Consolidation. The proposed action may include a consolidation 
of USPS-operated retail facilities. A consolidation arises when a USPS-
operated retail facility is replaced with a contractor-operated retail 
facility.
    (3) Views of postmasters. Whether the discontinuance under 
consideration involves a consolidation or not, the District Manager must 
discuss the matter with the postmaster (or the officer in charge) of the 
USPS-operated retail facility considered for discontinuance, and with 
the postmaster of any other USPS-operated retail facility affected by 
the change. The District Manager should make sure that these officials 
are invited to submit written comments and suggestions as part of the 
record when the proposal is reviewed.
    (4) Preparation of written proposal. The District Manager, or a 
designee, must gather and preserve for the record all documentation used 
to assess the proposed change. If the District Manager thinks the 
proposed action is warranted, he or she, or a designee, must prepare a 
document titled ``Proposal to (Close) (Consolidate) the (Facility 
Name).'' This document must describe, analyze, and justify in sufficient 
detail to Postal Service management and affected customers the proposed 
service change. The written proposal must address each of the following 
matters in separate sections:
    (i) Responsiveness to community postal needs. It is the policy of 
the Government, as established by law, that the Postal Service will 
provide a maximum degree of effective and regular postal services to 
rural areas, communities, and small towns where post offices are not 
self-sustaining. The proposal should:
    (A) Contrast the services available before and after the proposed 
change;
    (B) Describe how the changes respond to the postal needs of the 
affected customers; and
    (C) Highlight particular aspects of customer service that might be 
less advantageous as well as more advantageous.
    (ii) Effect on community. The proposal must include an analysis of 
the effect the proposed discontinuance might have on the community 
served, and discuss the application of the requirements in Sec. 
241.3(b).
    (iii) Effect on employees. The written proposal must summarize the 
possible effects of the change on postmasters and other employees of the 
USPS-operated retail facility considered for discontinuance.
    (iv) Savings. The proposal must include an analysis of the economic 
savings to the Postal Service from the proposed action, including the 
cost or savings expected from each major factor contributing to the 
overall estimate.
    (v) Other factors. The proposal should include an analysis of other 
factors that the District Manager determines are necessary for a 
complete evaluation of the proposed change, whether favorable or 
unfavorable.
    (vi) Summary. The proposal must include a summary that explains why 
the

[[Page 90]]

proposed action is necessary, and assesses how the factors supporting 
the proposed change outweigh any negative factors. In taking competing 
considerations into account, the need to provide regular and effective 
service is paramount.
    (vii) Notice. The proposal must include the following notices:
    (A) Supporting materials. ``Copies of all materials on which this 
proposal is based are available for public inspection at (Facility Name) 
during normal office hours.''
    (B) Nature of posting. ``This is a proposal. It is not a final 
determination to (close) (consolidate) this facility.''
    (C) Posting of final determination. ``If a final determination is 
made to close or consolidate this facility, after public comments on 
this proposal are received and taken into account, a notice of that 
final determination will be posted in this facility.''
    (D) Appeal rights. ``The final determination will contain 
instructions on how affected customers may appeal a decision to close or 
consolidate a post office to the Postal Regulatory Commission. Any such 
appeal must be received by the Commission within 30 days of the posting 
of the final determination.'' The notice in this clause is provided when 
the USPS-operated retail facility under study is a post office. For 
purposes of this clause, the date of receipt by the Commission is based 
on the postmark of the appeal, if sent through the mail, or on other 
appropriate documentation or indicia, if sent through another lawful 
delivery method.
    (d) Notice, public comment, and record--(1) Posting proposal and 
comment notice. A copy of the written proposal and a signed invitation 
for comments must be posted prominently, with additional copies to be 
given to customers upon request, in the following locations:
    (i) The USPS-operated retail facility under study, unless service at 
the facility has been suspended;
    (ii) The USPS-operated retail facility proposed to serve as the 
supervising facility;
    (iii) Any USPS-operated retail facility likely to serve a 
significant number of customers of the USPS-operated retail facility 
under study; and
    (iv) If service at the facility under study has been suspended, any 
USPS-operated retail facility providing alternative service for former 
customers of the facility under study.
    (2) Contents of comment notice. The invitation for comments must:
    (i) Ask interested persons to provide written comments within 60 
days, to a stated address, offering specific opinions and information, 
favorable or unfavorable, on the potential effect of the proposed change 
on postal services and the community.
    (ii) State that copies of the proposal with attached optional 
comment forms are available in the affected USPS-operated retail 
facilities.
    (iii) Provide a name and telephone number to call for information.
    (3) Other steps. In addition to providing notice and inviting 
comment, the District Manager must take any other steps necessary to 
ensure that the persons served by affected USPS-operated retail 
facilities understand the nature and implications of the proposed 
action. A community meeting must be held to provide outreach and gain 
public input after the proposal is posted, unless otherwise instructed 
by the responsible Headquarters Vice President or the applicable Vice 
President, Area Operations. Authorization to forgo a community meeting 
should issue only where exceptional circumstances make a community 
meeting infeasible, such as where the community no longer exists because 
of a natural disaster or because residents have moved elsewhere.
    (i) If oral contacts develop views or information not previously 
documented, whether favorable or unfavorable to the proposal, the 
District Manager should encourage persons offering the views or 
information to provide written comments to preserve them for the record.
    (ii) As a factor in making his or her decision, the District Manager 
may not rely on communications received from anyone unless submitted in 
writing for the record.
    (4) Record. The District Manager must keep, as part of the record 
for

[[Page 91]]

consideration and review, all documentation gathered about the proposed 
change.
    (i) The record must include all information that the District 
Manager considered, and the decision must stand on the record. No 
written information or views submitted by customers may be excluded.
    (ii) The docket number assigned to the proposal must be the ZIP Code 
of the office proposed for closing or consolidation.
    (iii) The record must include a chronological index in which each 
document contained is identified and numbered as filed.
    (iv) As written communications are received in response to the 
public notice and invitation for comments, they are included in the 
record.
    (v) A complete copy of the record must be available for public 
inspection during normal office hours at the USPS-operated retail 
facilities where the proposal was posted under paragraph (d)(1) of this 
section, beginning no later than the date on which notice is posted and 
extending through the posting period. When appropriate, certain 
personally identifiable information, such as individual names or 
residential addresses, may be redacted from the publicly accessible copy 
of the record.
    (vi) Copies of documents in the record (except the proposal and 
comment form) are provided on request and on payment of fees as noted in 
chapter 4 of Handbook AS-353, Guide to Privacy, the Freedom of 
Information Act, and Records Management.
    (e) Consideration of public comments and final local 
recommendation--(1) Analysis of comments. The District Manager or a 
designee must prepare an analysis of the public comments received for 
consideration and inclusion in the record. If possible, comments 
subsequently received should also be included in the analysis. The 
analysis should list and briefly describe each point favorable to the 
proposal and each point unfavorable to the proposal. The analysis should 
identify to the extent possible how many comments support each point 
listed.
    (2) Re-evaluation of proposal. After completing the analysis, the 
District Manager must review the proposal and re-evaluate all the 
tentative conclusions previously made in light of additional customer 
information and views in the record.
    (i) Discontinuance not warranted. If the District Manager decides 
against the proposed discontinuance, he or she must post, in the USPS-
operated retail facilities where the proposal was posted under paragraph 
(d)(1) of this section, a notice stating that the proposed closing or 
consolidation is not warranted.
    (ii) Discontinuance warranted. If the District Manager decides that 
the proposed discontinuance is justified, the appropriate sections of 
the proposal must be revised, taking into account the comments received 
from the public. After making necessary revisions, the District Manager 
must:
    (A) Transmit the revised proposal and the entire record to the 
responsible Headquarters Vice President.
    (B) Certify that all documents in the record are originals or true 
and correct copies.
    (f) Postal Service decision.--(1) In general. The responsible 
Headquarters Vice President or a designee must review the proposal of 
the District Manager and decide on the merits of the proposal. This 
review and the decision must be based on and supported by the record 
developed by the District Manager. The responsible Headquarters Vice 
President can instruct the District Manager to provide more information 
to supplement the record. Each instruction and the response must be 
added to the record. The decision on the proposal of the District 
Manager, which must also be added to the record, may approve or 
disapprove the proposal, or return it for further action as set forth in 
this paragraph (f).
    (2) Approval. The responsible Headquarters Vice President or a 
designee may approve the proposed discontinuance, with or without 
further revisions. If approved without further revision, the term 
``Final Determination'' is substituted for ``Proposal'' in the title. A 
copy of the Final Determination must be provided to the District 
Manager. The Final Determination constitutes the Postal Service 
determination for the purposes of 39 U.S.C. 404(d).

[[Page 92]]

    (i) Supporting materials. The Final Determination must include the 
following notice: ``Copies of all materials on which this Final 
Determination is based are available for public inspection at the 
(Facility Name) during normal office hours.''
    (ii) Appeal rights. If the USPS-operated retail facility subject to 
discontinuance is a post office, the Final Determination must include 
the following notice: ``Pursuant to Public Law 94-421 (1976), this Final 
Determination to (close) (consolidate) the (Facility Name) may be 
appealed by any person served by that office to the Postal Regulatory 
Commission, 901 New York Avenue, NW., Suite 200, Washington, DC 20268-
0001. Any appeal must be received by the Commission within 30 days of 
the first day this Final Determination was posted. If an appeal is 
filed, copies of appeal documents prepared by the Postal Regulatory 
Commission, or the parties to the appeal, must be made available for 
public inspection at the (Facility Name) during normal office hours.''
    (3) Disapproval. The responsible Headquarters Vice President or a 
designee may disapprove the proposed discontinuance and return it and 
the record to the District Manager with written reasons for disapproval. 
The District Manager or a designee must post, in each affected USPS-
operated retail facility where the proposal was posted under paragraph 
(d)(1) of this section, a notice that the proposed closing or 
consolidation has been determined to be unwarranted.
    (4) Return for further action. The responsible Headquarters Vice 
President or a designee may return the proposal of the District Manager 
with written instructions to give additional consideration to matters in 
the record, or to obtain additional information. Such instructions must 
be placed in the record.
    (5) Public file. Copies of each Final Determination and each 
disapproval of a proposal by the responsible Headquarters Vice President 
must be placed on file in the Postal Service Headquarters library.
    (g) Implementation of final determination--(1) Notice of final 
determination to discontinue USPS-operated retail facility. The District 
Manager must:
    (i) Provide notice of the Final Determination by posting a copy 
prominently in the USPS-operated retail facilities in each affected 
USPS-operated retail facilities where the proposal was posted under 
paragraph (d)(1) of this section, including the USPS-operated retail 
facilities likely to be serving the affected customers. The date of 
posting must be noted on the first page of the posted copy as follows: 
``Date of posting.''
    (ii) Ensure that a copy of the completed record is available for 
public inspection during normal business hours at each USPS-operated 
retail facility where the Final Determination is posted for 30 days from 
the posting date.
    (iii) Provide copies of documents in the record on request and 
payment of fees as noted in chapter 4 of Handbook AS-353, Guide to 
Privacy, the Freedom of Information Act, and Records Management.
    (2) Implementation of determinations not appealed. If no appeal is 
filed, the official closing date of the office must be published in the 
Postal Bulletin and effective, at the earliest, 60 days after the first 
day that Final Determination was posted. A District Manager may request 
a different date for official discontinuance in the Retail Change 
Announcement document submitted to the responsible Headquarters Vice 
President or a designee. However, the USPS-operated retail facility may 
not be discontinued sooner than 60 days after the first day of the 
posting of the notice required by paragraph (g)(1) of this section.
    (3) Actions during appeal--(i) Implementation of discontinuance. If 
an appeal is filed, only the responsible Headquarters Vice President may 
direct a discontinuance before disposition of the appeal. However, the 
USPS-operated retail facility may not be permanently discontinued sooner 
than 60 days after the first day of the posting of the notice required 
by paragraph (g)(1) of this section.
    (ii) Display of appeal documents. The Office of General Counsel must 
provide the District Manager with copies of all pleadings, notices, 
orders, briefs, and opinions filed in the appeal proceeding.

[[Page 93]]

    (A) The District Manager must ensure that copies of all these 
documents are prominently displayed and available for public inspection 
in the USPS-operated retail facilities where the Final Determination was 
posted under paragraph (g)(1)(i) of this section. If the operation of 
that USPS-operated retail facility has been suspended, the District 
Manager must ensure that copies are displayed in the USPS-operated 
retail facilities likely to be serving the affected customers.
    (B) All documents except the Postal Regulatory Commission's final 
order and opinion must be displayed until the final order and opinion 
are issued. The final order and opinion must be displayed at the USPS-
operated retail facility to be discontinued for 30 days or until the 
effective date of the discontinuance, whichever is earlier. The final 
order and opinion must be displayed for 30 days in all other USPS-
operated retail facilities where the Final Determination was posted 
under paragraph (g)(1)(i) of this section.
    (4) Actions following appeal decision --(i) Determination affirmed. 
If the Commission dismisses the appeal or affirms the Postal Service's 
determination, the official closing date of the office must be published 
in the Postal Bulletin, effective anytime after the Commission renders 
its opinion, if not previously implemented under Sec. 241.3(g)(3)(i). 
However, the USPS-operated retail facility may not be discontinued 
sooner than 60 days after the first day of the posting of the notice 
required under Sec. 241.3(g)(1).
    (ii) Determination returned for further consideration. If the 
Commission returns the matter for further consideration, the responsible 
Headquarters Vice President must direct that either:
    (A) Notice be provided under paragraph (f)(3) of this section that 
the proposed discontinuance is determined not to be warranted or
    (B) The matter be returned to an appropriate stage under this 
section for further consideration following such instructions as the 
responsible Headquarters Vice President may provide.

[76 FR 41420, July 14, 2011; 76 FR 43898, July 22, 2011, as amended at 
76 FR 66187, Oct. 26, 2011]



Sec. 241.4  Expansion, relocation, and construction of post offices.

    (a) Application. (1) This section applies when the USPS contemplates 
any one of the following projects with respect to a customer service 
facility: expansion, relocation to another existing building, or new 
construction, except when the project is to meet an emergency 
requirement or for temporary use. Emergency situations include, but are 
not limited to, earthquakes, floods, fire, lease terminations, safety 
factors, environmental causes, or any other actions that would force an 
immediate relocation from an existing facility. Temporary relocation of 
space is used for, but not limited to, holidays, special events, or for 
overflow business. Use of emergency and temporary space will be limited 
to 180 days in duration. Any additional incremental time periods of up 
to 180 days each must be approved by the Vice President, Facilities.
    (2) This section does not apply when the project under consideration 
is limited to repair and alterations, such as--
    (i) Painting;
    (ii) Repairs;
    (iii) Replacement or upgrade of structural or functional elements of 
a postal building or of its equipment;
    (iv) Paving, striping, or other repair of parking areas;
    (v) Landscaping.
    (b) Purpose. The purpose of the procedures required by this section 
is to assure increased opportunities for members of the communities who 
may be affected by certain USPS facility projects, along with local 
officials, to convey their views concerning the contemplated project and 
have them considered prior to any final decision to expand, relocate to 
another existing building, or construct a new building that is owned or 
leased.
    (c) Expansion, relocation, new construction. When a need is 
identified that will require the expansion, relocation, or new 
construction of a customer service facility, postal representatives 
responsible for the project will take the following steps in accordance 
with the time schedule shown:
    (1) Personally visit one or more of the highest ranking local public 
officials (generally individuals holding

[[Page 94]]

elective office). During the visit, the postal representatives will--
    (i) Identify the need and fully describe the project that is under 
consideration to meet it, explain the process by which the Postal 
Service will solicit and consider input from the affected community, and 
solicit a working partnership with the community officials for the 
success of the project.
    (ii) Emphasize that in meeting a need for increased space, the first 
priority is to expand the existing facility; the second priority is to 
find an existing building in the same area as the current facility; and 
the third option is to build on a new site; all within the downtown 
area, if possible.
    (iii) Ask that a Postal Service presentation of the project be 
placed on the regular agenda of a public meeting or hearing. If no such 
meeting is planned within the next 60 days or the agenda of a planned 
meeting cannot accommodate the project, the USPS will schedule its own 
public hearing concerning the project, and will advertise the meeting or 
hearing in a local general circulation newspaper.
    (iv) Give the local officials a letter describing the intended 
project.
    (2) Notify the lessor of the affected facility of the project, in 
writing.
    (3) Send an initial news release to local communications media.
    (4)(i) Post in the public lobby of the affected post offices a copy 
of the letter given to local officials, or the news release, or, space 
permitting, both. If such information is available at the time, include 
in the posting a public notice of the date, time, and location of a 
public meeting or hearing at least 7 days prior to the meeting or 
hearing.
    (ii) Except as provided in this paragraph, attend, or conduct, one 
or more public hearings to describe the project to the community, invite 
questions, solicit written comment, and describe the process by which 
community input will be considered. If it is believed at the time that 
the existing facility is not able to be expanded or that expansion is 
impracticable, disclose that fact and the reasons supporting that 
belief. If, during the public meeting or hearing process, a new 
development should occur to allow for an expansion of the existing 
facility, the Postal Service will make a good faith effort in pursuing 
this alternative. Under exceptional circumstances that would prevent 
postal representatives from attending a public meeting or conducting a 
postal hearing on the planned project within a reasonable time, and 
subject to approval of the Vice President, Facilities, the Postal 
Service may distribute a notification card to all affected customers, 
seeking their comments or other feedback. An example of exceptional 
circumstances would be a project in a sparsely populated area remote 
from the seat of local government or any forum where a postal conducted 
meeting could be held.
    (iii) At any public meeting or hearing, advise local officials and 
the community of their appeal rights and the process by which an appeal 
can be made. Information provided must include time limitations and an 
address for the appeal.
    (5) Review comments and notify local officials of decision. Not less 
than 15 days after the date of the most recent public meeting, or after 
receipt of notification cards, make a decision that takes into account 
community input and is consistent with postal objectives (e.g., 
expansion, relocation to another building, or construction of a new 
owned or leased facility), and notify local officials in writing. This 
notification must include information on the availability and terms of 
review under paragraph (c)(6) of this section. At the same time, post a 
copy of the notification letter in the local post office for the 
community. Take no action on the decision for at least 30 days following 
notification of local officials and the community.
    (6) Within the time period identified in paragraph (c)(5) of this 
section, any person may request in writing that the decision be reviewed 
by the Vice President, Facilities, at Postal Service Headquarters. No 
particular format is required for requesting review, but the request 
must be in writing and identify the post office or location affected; 
and should identify the decision objected to, and state the reasons for 
the objection. The Vice President, Facilities, will obtain the views of 
the decision maker, review relevant parts of the project file, and if 
necessary request

[[Page 95]]

more information from the appellant. Upon review of the facts, the Vice 
President, or a representative, will issue a written determination, if 
possible, within 15 days. In no event will the Postal Service take 
action on the decision being reviewed until 15 days following issuance 
of the final review determination. If the determination on review is to 
set aside the decision, the project process will return to the public 
hearing stage of paragraph (c)(4) of this section.
    (7) Advertise for sites and existing buildings, in accordance with 
existing postal procedures.
    (d) Discontinuance of post offices; historic preservation. (1) It is 
the policy of the Postal Service, by virtue of Board of Governors 
Resolution No. 82-7, to comply with Section 106 of the general 
provisions of the National Historic Preservation Act, 16 U.S.C. 470, et 
seq., Executive Order 12072, and Executive Order 13006. Therefore, any 
facility project that will have an effect on cultural resources will be 
undertaken in accordance with that policy.
    (2) Any action involving the closing or other discontinuance of a 
post office shall be undertaken only in accordance with 39 U.S.C. 404(b) 
and 39 CFR 243.1. In the event a facility action is subject to both this 
section, and either the NHPA or the post office discontinuance 
requirements, all comment periods and other public participation matters 
shall be governed by those statutes.
    (e) Site selection. (1) When the decision is to advertise for sites 
and existing buildings, and after such sites have been identified, 
advise local officials in writing of all contending sites, and with 
respect to all sites not selected, provide an explanation. This notice 
will advise local officials, and the community, that no decision to 
select a site will be made for a minimum of 30 days, and that comments 
or discussions of all sites are solicited. Post a copy of this letter in 
the lobby of the affected post office for public notice.
    (2) Once a specific site is then selected, notify local officials in 
writing of the selection decision.
    (3) Take no final action to acquire or lease the selected site for 
30 days following the notification in paragraph (e)(2) of this section.
    (f) Planning, zoning, building codes. In carrying out customer 
service facilities projects, it is the policy of the Postal Service to 
comply with local planning and zoning requirements and building codes 
consistent with prudent business practices and unique postal 
requirements. In order to promote a partnership with local officials and 
assure conformance with local building codes, plans and drawings will be 
sent to the appropriate building department or other officials for 
review. Where payment of fees is normally required of private entities, 
the Postal Service will pay a reasonable fee for the review. The Postal 
Service will give local public officials written notice of any timely, 
written objections or recommendations that it does not plan to adopt or 
implement.
    (g) Continuing communication. During construction, whether 
renovation or new construction, the postmaster should keep local 
officials and the community informed via letters and news releases. The 
postmaster and other postal officials should plan, conduct and invite 
the community and local officials to any ``grand opening'', as 
appropriate.

[63 FR 46656, Sept. 2, 1998]



PART 242_CHANGE OF SITE--Table of Contents





Sec. 242.2  Change of site--fourth-class offices.

    Report by memorandum to chief, organization and management branch, 
when change in site is necessary. Complete Form 1021 when furnished. 
Retain one copy in files. If new location is one-fourth of a mile or 
more from existing location, furnish a statement signed by majority of 
customers approving change. When a change involves moving a post office 
from one county to another, notify the Deputy Postmaster General, of the 
circumstances (including a sketch showing present and proposed sites), 
and await approval of that Division.

(39 U.S.C. 401)

[36 FR 4765, Mar. 12, 1971]

[[Page 96]]



PART 243_CONDUCT OF OFFICES--Table of Contents





Sec. 243.2  Quarters.

    (a) Employee bulletin boards. Bulletin boards may be placed in 
workrooms and employees' lunchrooms for displaying notices as prescribed 
in this manual and Management Labor Organization Agreements.
    (b) Location of offices. Postal units may not be located in, or 
directly connected to, a room in which intoxicating liquor is sold to be 
consumed on the premises.
    (c) Lost articles. When articles are turned in to employees, the 
name and address of the finder shall be recorded so the article may be 
returned to him if not claimed by the loser. If the name of the finder 
cannot be obtained, and the article is not claimed within 30 days, it 
must be disposed of in the same manner as unidentified material found 
loose in the mail. Do not return postal money orders to the finder. Mail 
to Money Order Branch, Accounting Division, U.S. Postal Service, General 
Accounting Office Building, Washington, DC 20260, with a memorandum of 
explanation.
    (d) Public use of restrooms. Restrooms off public corridors shall 
normally be kept open during regular hours of business for the benefit 
of the public. Where vandalism or loitering cannot be controlled, 
postmasters may lock restrooms, furnishing those agencies served by the 
restrooms, keys for employee use. This shall not be construed to permit 
access by nonpostal personnel to restrooms in restricted postal areas.
    (e) Letter drops. At all except fourth-class post offices, provide a 
regulation letterbox for depositing mail in front of or next to the post 
office. Show collection time schedules on letterboxes. At fourth-class 
offices, if a letterbox is not supplied, provide a slot in the outer 
post office door. When messengers or star route carriers have access to 
lobbies, door slot deposits must lead to a locked box.
    (f) Hour signs. Display hours of window service prominently at all 
first-, second-, and third-class post offices, classified stations and 
branches, and annexes. Use Sign 41, Hours decal set, available in supply 
centers.
    (g) Service of process on postal premises. Postmasters or other 
installation heads shall permit service on postal premises of civil and 
criminal process affecting employees in personal matters, when such 
service of process will not interfere with postal operations. Process 
servers should be directed to the postmaster's or installation head's 
office, where the employee will be called in and service made. Section 
265.10 of this chapter contains rules regarding compliance with subpoena 
duces tecum, court orders, and summonses where official business or 
official records are involved.
    (h) Public service areas--prohibited items. Photographs of an 
incumbent or former President or Postmaster General are not to be 
displayed in post office lobbies or in common use public service areas 
such as elevator lobbies and corridors in facilities owned by or leased 
to the Postal Service. Further, such photographs are not to be 
requisitioned or purchased by postal installations at Postal Service 
expense.

(39 U.S.C. 501)

[36 FR 4765, Mar. 12, 1971, as amended at 39 FR 38376, Oct. 31, 1974; 40 
FR 8820, Mar. 3, 1975; 42 FR 33722, July 1, 1977; 44 FR 39854, July 6, 
1979]



General Postal Administration--Table of Contents





PART 254_POSTAL SERVICE STANDARDS FOR FACILITY ACCESSIBILITY PURSUANT 
TO THE ARCHITECTURAL BARRIERS ACT--Table of Contents



Sec.
254.1 Adoption of U.S. Access Board Standards as Postal Service 
          Standards of Facility Accessibility
254.2 Definition of primary function area and criteria used to determine 
          whether an alteration has an effect on an area containing a 
          primary function that is disproportionate to the overall 
          alterations.

    Authority: 39 U.S.C 101, 401, 403; 29 U.S.C. 792(b)(3) and 42 U.S.C. 
12204.

    Source: 70 FR 28214, May 17, 2005, unless otherwise noted.

[[Page 97]]



Sec. 254.1  Adoption of U.S. Access Board Standards as Postal Service 
Standards of Facility Accessibility.

    (a) The United States Postal Service adopts as its Architectural 
Barriers Act (ABA) ``Standards for Facility Accessibility,'' the 
following sections of 36 CFR part 1191:
    Appendix A to Part 1191, Table of Contents for apps. C, D, and E.
    Appendix C to Part 1191, Architectural Barriers Act, Scoping (which 
contains ABA Chapter 1, Application and Administration, and ABA Chapter 
2, Scoping requirements); pertinent parts of Appendix D to Part 1191, 
Technical (which includes Chapters 3 through 10).
    Appendix E to Part 1191, List of Figures and Index.
    (b) These sections listed in paragraph (a) of this section are 
adopted verbatim, with the exception of the Advisory Notes, which are 
expressly excluded.



Sec. 254.2  Definition of primary function area and criteria used to 
determine whether an alteration has an effect on an area containing a

primary function that is disproportionate to the overall alterations.

    (a) Terminology. The new accessibility guidelines require that 
certain terms be defined by the participating federal agencies. In the 
U.S. Access Board's 36 CFR part 1191, Appendix C, ABA chapter 2, section 
F202.6.2 requires that ``primary function areas'' be defined and Section 
F202.4 contains requirements for alterations affecting ``primary 
function areas'' stating, ``* * *an alteration that affects or could 
affect the usability of or access to an area containing a primary 
function shall be made so as to ensure that, to the maximum extent 
feasible, the path of travel to the altered area, including the rest 
rooms, telephones, and drinking fountains serving the altered area, are 
readily accessible to and usable by individuals with disabilities, 
unless such alterations are disproportionate to the overall alterations 
in terms of cost and scope as determined under criteria established by 
the Administrator of * * * the United States Postal Service.''
    (b) Primary function areas. For purposes of this part, the primary 
function of the Postal Service is to provide mail service for its 
customers, that is to accept, distribute, transport and deliver the 
mail. Two essential facilities for fulfilling these functions are 
customer lobby areas where customers conduct their retail transactions, 
access mail depositories and post office boxes and work room areas where 
postal employees distribute the mail and perform other core postal 
operations. Therefore, for purposes of the accessibility guidelines 
applicable to the Postal Service under the Architectural Barriers Act, 
two primary function areas are identified: Customer Lobbies and Workroom 
Areas.
    (c) Disproportionality. (1) According to Section F202.6.2, 
``alteration'' of elements in a primary function area can trigger a 
requirement to make accessibility improvements along the path of travel 
to the area and improvements to rest rooms, telephones, and drinking 
fountains that serve the altered area if the alteration ``affects or 
could affect the usability of or access to an area containing a primary 
function.'' It is conceivable that almost any repair or alteration 
project in a ``primary function area'' could affect the usability of the 
area. Therefore a literal interpretation of this provision could require 
an expansion of the scope of virtually any alteration in a primary 
function area, regardless of the size and scope of the original project. 
According to Section F202.6.2, accessibility improvements must be made 
to the path of travel to the altered area and to rest rooms, telephones, 
and drinking fountains that serve the altered area ``unless such 
alterations are disproportionate to the overall alterations in terms of 
cost and scope''.
    (2) For purposes of the accessibility guidelines applicable to the 
Postal Service under the Architectural Barriers Act, two criteria must 
be considered in making a determination whether accessibility 
improvements are disproportionate to the cost and scope of the original 
alteration: a magnitude threshold for the original alteration and a 
maximum ``percentage threshold'' for the accessibility alteration.
    (d) Magnitude threshold. It is anticipated that, in most cases, a 
significant additional effort would be required to assess physical 
conditions along the

[[Page 98]]

path of travel and for rest rooms, telephones, and drinking fountains 
that serve the altered area, and to determine the scope, budget and 
appropriate design requirements for any corrective alterations. Unless 
the original alteration is of substantial magnitude, a disproportionate 
effort would be devoted to such investigation, design, and 
administration leaving few, if any funds to accomplish corrective work. 
Accordingly, a ``magnitude threshold'' is established such that no 
accessibility improvements to the path of travel, nor to any associated 
facilities, shall be required under F202.6.2 for alterations that have 
an estimated total cost less than 20 percent of the fair market value of 
the facility.
    (e) Percentage threshold. For alterations subject to F202.6.2 that 
meet or exceed the ``magnitude threshold,'' the maximum cost for 
accessibility improvements to the path of travel, including all costs 
for accessibility improvements to rest rooms, telephones, and drinking 
fountains that serve the altered area, shall not exceed 20 percent of 
the total cost of the original alteration. Costs for accessibility 
improvements in excess of the 20 percent threshold shall be deemed 
``disproportionate.''



PART 255_ACCESS OF PERSONS WITH DISABILITIES TO POSTAL SERVICE PROGRAMS,
ACTIVITIES, FACILITIES, AND ELECTRONIC AND INFORMATION TECHNOLOGY--Table 

of Contents



Sec.
255.1 Purpose.
255.2 Definitions.
255.3 Nondiscrimination under any program or activity conducted by the 
          Postal Service.
255.4 Accessibility to electronic and information technology.
255.5 Employment.
255.6 Processing of complaints.
255.7 Special arrangements for postal services.
255.8 Access to postal facilities.
255.9 Other postal regulations; authority of postal managers and 
          employees.

    Authority: 39 U.S.C. 101, 401, 403, 1001, 1003, 3403, 3404; 29 
U.S.C. 791, 794, 794d.

    Source: 69 FR 44962, July 28, 2004, unless otherwise noted.



Sec. 255.1  Purpose.

    (a) This part implements section 504 of the Rehabilitation Act of 
1973, as amended. Section 504 prohibits discrimination on the basis of 
disability in programs or activities conducted by executive agencies or 
by the Postal Service. This part also implements section 508 of the 
Rehabilitation Act of 1973, as amended. Section 508 requires that 
executive agencies and the Postal Service ensure, absent an undue 
burden, that individuals with disabilities have access to electronic and 
information technology that is comparable to the access of individuals 
who are not disabled.
    (b) The standards relating to electronic and information technology 
expressed in this part are intended to be consistent with the standards 
announced by the Architectural and Transportation Barriers Compliance 
Board on December 21, 2000. Those standards are codified at 36 CFR part 
1194.



Sec. 255.2  Definitions.

    (a) Agency as used in this part means the Postal Service.
    (b) Area/functional vice president also includes his or her 
designee.
    (c) Electronic and information technology (EIT) includes 
``information technology'' and any equipment or interconnected system or 
subsystem of equipment that is used in the creation, conversion, or 
duplication of data or information. The term does not include any 
equipment that contains embedded information technology that is used as 
an integral part of the product, but the principal function of which is 
not the acquisition, storage, manipulation, management, movement, 
control, display, switching, interchange, transmission, or reception of 
data or information.
    (d) Formal complaint means a written statement that contains the 
complainant's name, address, and telephone number, sets forth the nature 
of the complainant's disability, and describes the agency's alleged 
discriminatory action in sufficient detail to inform the agency of the 
nature of the alleged violation of section 504 or of section 508. It 
shall be signed by the complainant or

[[Page 99]]

by someone authorized to do so on the complainant's behalf.
    (e) Individual with a disability. For purposes of this part, 
``individual with a disability'' means any person who--
    (1) Has a physical or mental impairment that substantially limits 
one or more of such person's major life activities;
    (2) Has a record of such an impairment; or
    (3) Is regarded as having such an impairment.
    (f) Information technology means any equipment, or interconnected 
system or subsystem of equipment, that is used in the automatic 
acquisition, storage, manipulation, management, movement, control, 
display, switching, interchange, transmission, or reception of data or 
information.
    (g) Postal manager. As used in this part, ``postal manager'' means 
the manager or official responsible for a service, facility, program, or 
activity.
    (h) Qualified individual with a disability. For purposes of this 
part, ``qualified individual with a disability'' means--
    (1) With respect to any Postal Service program or activity, except 
for employment, under which a person is required to perform services or 
to achieve a level of accomplishment, an individual with a disability 
who meets the essential eligibility requirements and who can achieve the 
purpose of the program or activity without modifications in the program 
or activity that the agency can demonstrate would result in a 
fundamental alteration in its nature; or
    (2) With respect to any other program or activity, except for 
employment, an individual with a disability who meets the essential 
eligibility requirements for participation in, or receipt of benefits 
from, that program or activity; or
    (3) With respect to employment, an individual with a disability who 
can perform the essential functions of the job in question with or 
without reasonable accommodation.
    (i) Section 501 means section 501 of the Rehabilitation Act of 1973, 
as amended. Section 501 is codified at 29 U.S.C. 791.
    (j) Section 504 means section 504 of the Rehabilitation Act of 1973, 
as amended. Section 504 is codified at 29 U.S.C. 794.
    (k) Section 508 means section 508 of the Rehabilitation Act of 1973, 
as amended. Section 508 is codified at 29 U.S.C. 794d.
    (l) Undue burden means significant difficulty or expense.
    (m) Vice President and Consumer Advocate also includes his or her 
designee.



Sec. 255.3  Nondiscrimination under any program or activity conducted
by the Postal Service.

    In accordance with section 504 of the Rehabilitation Act, no 
qualified individual with a disability shall, solely by reason of his or 
her disability, be excluded from participation in, be denied the 
benefits of, or be subjected to discrimination under, any program or 
activity conducted by the Postal Service.



Sec. 255.4  Accessibility to electronic and information technology.

    (a) In accordance with section 508 of the Rehabilitation Act, the 
Postal Service shall ensure, absent an undue burden, that the electronic 
and information technology the agency procures allows--
    (1) Individuals with disabilities who are Postal Service employees 
or applicants to have access to and use of information and data that is 
comparable to the access to and use of information and data by Postal 
Service employees or applicants who are not individuals with 
disabilities; and
    (2) Individuals with disabilities who are members of the public 
seeking information or services from the Postal Service to have access 
to and use of information and data that is comparable to the access to 
and use of information and data by members of the public who are not 
individuals with disabilities.
    (b) When procurement of electronic and information technology that 
meets the standards published by the Architectural and Transportation 
Barriers Compliance Board would pose an undue burden, the Postal Service 
shall provide individuals with disabilities covered by paragraph (a) of 
this section with the information and data by an alternative means of 
access that allows

[[Page 100]]

the individuals to use the information and data.



Sec. 255.5  Employment.

    No qualified individual with a disability shall, on the basis of 
disability, be subjected to discrimination in employment with the Postal 
Service. The definitions, requirements, and procedures of section 501 of 
the Rehabilitation Act of 1973, as established by the Equal Employment 
Opportunity Commission in 29 CFR part 1614 shall apply to employment 
within the Postal Service.



Sec. 255.6  Processing of complaints.

    (a) Section 504 complaints, employment. The Postal Service shall 
process complaints of employees and applicants alleging violations of 
section 504 with respect to employment according to the procedures 
established by the Equal Employment Opportunity Commission in 29 CFR 
part 1614 pursuant to section 501 of the Rehabilitation Act of 1973, as 
amended, 29 U.S.C. 791. In accordance with 29 CFR part 1614, the Postal 
Service has established procedures for processing complaints of alleged 
employment discrimination, based upon disability, in the agency's 
handbook, Equal Employment Opportunity Complaint Processing.
    (b) Section 504 complaints, members of the public. The procedures of 
this part shall apply to section 504 complaints alleging disability 
discrimination in any program or activity of the Postal Service and 
brought by members of the public.
    (c) Section 508 complaints, members of the public, employees, and 
applicants. The procedures of this part shall apply to section 508 
complaints alleging failure to provide access to electronic and 
information technology and brought by members of the public or by 
employees or applicants. Section 508 complaints shall be processed to 
provide the remedies required by section 508 of the Rehabilitation Act.
    (d) Complaint Procedures. Any individual with a disability who 
believes that he or she has been subjected to discrimination prohibited 
by this part or by the alleged failure of the agency to provide access 
to electronic and information technology may file a complaint by 
following the procedures described herein. A complainant shall first 
exhaust informal administrative procedures before filing a formal 
complaint.
    (1) Informal complaints relating to Postal Service programs or 
activities and to EIT. (i) A complainant initiates the informal process 
by informing the responsible postal manager orally or in writing of the 
alleged discrimination or inaccessibility of Postal Service programs, 
activities, or EIT. Postal managers or employees who receive informal 
complaints that they lack the authority to resolve must promptly refer 
any such informal complaint to the appropriate postal manager, and at 
the same time must notify the complainant of the name, address, and 
telephone number of the person handling the complaint.
    (ii) Resolution of the informal complaint and time limits. Within 15 
days of receipt of the informal complaint, the responsible postal 
manager must send the complainant a written acknowledgement of the 
informal complaint. The written acknowledgment will include the date the 
complaint was filed and a description of the issue(s). If the matter 
cannot be resolved within 30 days of its receipt, the complainant must 
be sent a written interim report which explains the status of the 
informal complaint and the proposed resolution of the matter. On or 
before the 60th day from the agency's receipt of the informal complaint, 
the appropriate area/functional vice president within the Postal Service 
shall send a written decision to the complainant detailing the final 
disposition of the informal complaint and the reasons for that 
disposition. The decision shall contain the notice that the complainant 
may challenge an informal decision which denies relief either by 
proceeding in any other appropriate forum or by filing a formal 
complaint with the Vice President and Consumer Advocate. The notice will 
give the address of the Vice President and Consumer Advocate. The notice 
shall also state that if the complainant chooses to file a formal 
complaint, the complainant shall exhaust the formal complaint procedures 
before filing suit in any other forum.

[[Page 101]]

    (iii) Automatic review. The responsible postal manager's proposed 
disposition of the informal complaint shall be submitted to the 
appropriate district/program manager for review. The district/program 
manager shall forward the proposed disposition to the area/functional 
vice president for review and issuance of the written decision. This 
automatic review process shall be completed such that the written 
decision of the area/functional vice president shall be sent to the 
complainant no later than the 60th day from the agency's receipt of the 
informal complaint.
    (2) Formal complaints. If an informal complaint filed under 
paragraph (d)(1) of this section denies relief, the complainant may seek 
relief in any other appropriate forum, including the right to file a 
formal complaint with the Vice President and Consumer Advocate in 
accordance with the following procedures. If the complainant files a 
formal complaint with the Vice President and Consumer Advocate, the 
complainant shall exhaust the formal complaint procedures before filing 
suit in any other forum.
    (i) Where to file. Formal complaints relating to programs or 
activities conducted by the Postal Service or to access of Postal 
Service EIT may be filed with the Vice President and Consumer Advocate, 
United States Postal Service, 475 L'Enfant Plaza, SW., Washington, DC 
20260.
    (ii) When to file. A formal complaint shall be filed within 30 days 
of the date the complainant receives the decision of the area/functional 
vice president to deny relief. For purposes of determining when a formal 
complaint is timely filed under paragraph (d)(2)(ii) of this section, a 
formal complaint mailed to the agency shall be deemed filed on the date 
it is postmarked. Any other formal complaint shall be deemed filed on 
the date it is received by the Vice President and Consumer Advocate.
    (iii) Acceptance of the formal complaint. The Vice President and 
Consumer Advocate shall accept a timely filed formal complaint that 
meets the requirements of Sec. 255.2(d), that is filed after fulfilling 
the informal exhaustion procedures of Sec. 255.6(d)(1), and over which 
the agency has jurisdiction. The Vice President and Consumer Advocate 
shall notify the complainant of receipt and acceptance of the formal 
complaint within 15 days of the date the Vice President and Consumer 
Advocate received the formal complaint.
    (iv) Resolution of the formal complaint. Within 180 days of receipt 
and acceptance of a formal complaint over which the agency has 
jurisdiction, the Vice President and Consumer Advocate shall notify the 
complainant of the results of the investigation of the formal complaint. 
The notice shall be a written decision stating whether or not relief is 
being granted and the reasons for granting or denying relief. The notice 
shall state that it is the final decision of the Postal Service on the 
formal complaint.
    (e) No retaliation. No person shall be subject to retaliation for 
opposing any practice made unlawful by the Rehabilitation Act of 1973, 
as amended, 29 U.S.C. 791, or for participating in any stage of 
administrative or judicial proceedings under the statute.



Sec. 255.7  Special arrangements for postal services.

    Members of the public who are unable to use or who have difficulty 
using certain postal services may be eligible under postal regulations 
for special arrangements. Some of the special arrangements that the 
Postal Service has authorized are listed below. No one is required to 
use any special arrangement offered by the Postal Service, but an 
individual's refusal to make use of a particular special arrangement 
does not require the Postal Service to offer other special arrangements 
to that individual.
    (a) The Postal Operations Manual offers information on special 
arrangements for the following postal services:
    (1) Carrier delivery services and programs.
    (2) Postal retail services and programs.
    (i) Stamps by mail or phone.
    (ii) Retail service from rural carriers.
    (iii) Self-service postal centers. Self-service postal centers 
contain vending equipment for the sale of stamps and stamp items, and 
deposit boxes for parcels and letter mail. Many centers are

[[Page 102]]

accessible to individuals in wheelchairs. Information regarding the 
location of the nearest center may be obtained from a local post office.
    (b) The Domestic Mail Manual, the Administrative Support Manual, and 
the International Mail Manual contain information regarding postage-free 
mailing for mailings that qualify.
    (c) Inquiries and requests. Members of the public wishing further 
information about special arrangements for particular postal services 
may contact their local postal manager.
    (d) Response to a request or complaint regarding a special 
arrangement for postal services. A local postal manager receiving a 
request or complaint about a special arrangement for postal services 
must provide any arrangement as required by postal regulations. If no 
special arrangements are required by postal regulations, the local 
postal manager, in consultation with the district manager or area 
manager, as needed, may provide a special arrangement or take any action 
that will accommodate an individual with a disability as required by 
section 504 or by this part.



Sec. 255.8  Access to postal facilities.

    (a) Legal requirements and policy--(1) ABA Standards. Where the 
design standards of the Architectural Barriers Act (ABA) of 1968, 42 
U.S.C. 4151 et seq., do not apply, the Postal Service may perform a 
discretionary retrofit to a facility in accordance with this part to 
accommodate individuals with disabilities.
    (2) Discretionary modifications. The Postal Service may modify 
facilities not legally required to conform to ABA standards when it 
determines that doing so would be consistent with efficient postal 
operations. In determining whether modifications not legally required 
should be made, due regard is to be given to:
    (i) The cost of the discretionary modification;
    (ii) The number of individuals to be benefited by the modification;
    (iii) The inconvenience, if any, to the general public;
    (iv) The anticipated useful life of the modification to the Postal 
Service;
    (v) Any requirement to restore a leased premises to its original 
condition at the expiration of the lease, and the cost of such 
restoration;
    (vi) The historic or architectural significance of the property in 
accordance with the National Historic Preservation Act of 1966, 16 
U.S.C. 470 et seq.;
    (vii) The availability of other options to foster service 
accessibility; and
    (viii) Any other factor that is relevant and appropriate to the 
decision.
    (b) Inquiries and requests. (1) Inquiries concerning access to 
postal facilities, and requests for discretionary alterations of postal 
facilities not covered by the design standards of the ABA, may be made 
to the local postal manager of the facility involved.
    (2) The local postal manager's response to a request or complaint 
regarding an alteration to a facility will be made after consultation 
with the district manager or the area manager. If the determination is 
made that modification to meet ABA design standards is not required, a 
discretionary alteration may be made on a case-by-case basis in 
accordance with the criteria listed in paragraph (a)(2) of this section. 
If a discretionary alteration is not made, the local postal manager 
should determine if a special arrangement for postal services under 
Sec. 255.7 can be provided.



Sec. 255.9  Other postal regulations; authority of postal managers and
employees.

    This part supplements all other postal regulations. Nothing in this 
part is intended either to repeal, modify, or amend any other postal 
regulation, to authorize any postal manager or employee to violate or 
exceed any regulatory limit, or to confer any budgetary authority on any 
postal official or employee outside normal budgetary procedures.



PART 259_SERVICES PERFORMED FOR OTHER AGENCIES--Table of Contents



Sec.
259.1 Government.
259.2 Red Cross.



Sec. 259.1  Government.

    (a) Policy. The Postal Service cooperates with Federal Agencies 
whenever the overall costs to Government will be

[[Page 103]]

reduced. Assistance in a number of special projects and programs is 
provided when the knowledge and abilities of postal employees are 
helpful.
    (b) Reimbursement. The Postal Service establishes reasonable fees 
and charges for nonpostal services performed for agencies of the Federal 
as well as State governments. In establishing such fees and charges, the 
Postal Service considers the value of time of the personnel directly 
involved in the performance of the service, including direct supervision 
and supporting functions, plus the cost of materials and supplies 
specifically sold, used or consumed. Also included is an element 
representing a reasonable share of Postal Service general overhead costs 
which are not attributable or assignable specifically to any product or 
service. The establishment of such fees and charges shall be reasonably 
consistent with the methods employed in establishing rates and fees for 
postal services then in effect.
    (c) Except as provided in paragraph (d) of this section, 
arrangements for Postal Service participation in special surveys, 
censuses, and other activities must be made between the national 
headquarters of the requesting agencies and the Customer Services 
Department, U.S. Postal Service, Washington, DC 20260. Refer all 
requests to the Regional Postmaster General for forwarding to 
Headquarters. Authority to perform services for Government agencies is 
announced in the Postal Bulletin or by individual letters to the offices 
involved.
    (d) Housing Vacancy Surveys--(1) General. An interagency agreement 
between the U.S. Postal Service (USPS) and the Federal Home Loan Bank 
Board (FHLBB) establishes the terms and conditions and reimbursement 
rates under which USPS will conduct Housing Vacancy Surveys in City 
Delivery offices when requested by FHLBB.
    (2) Restrictions. The Agreement only authorizes the disclosure of 
aggregate statistical data. Postal managers must not permit the name or 
address of any past or present postal patron, or any other person to be 
disclosed unless such disclosure is authorized in writing by USPS 
Regions or Headquarters and is not in violation of 39 U.S.C. 412.
    (3) Postmaster's Responsibility. (i) A postmaster will receive 
notification from FHLBB when his office has been selected to conduct a 
Housing Vacancy Survey. Normally, written notification will be mailed to 
the postmaster 30 days in advance of the date FHLBB would like USPS to 
conduct the survey, since USPS is under no obligation to use overtime or 
auxiliary assistance to conduct these surveys. The postmaster or his 
designee will schedule the survey on or near the date requested and will 
promptly reply to FHLBB so that the necessary forms will be provided on 
time.
    (ii) All necessary forms and instructions will be supplied directly 
to each post office to be surveyed. Postmasters will designate a manager 
in each delivery unit to coordinate the survey within the unit and to 
review completed survey forms for accuracy.
    (iii) FHLBB may request USPS to perform special or emergency surveys 
with less than 30 days advance notice. Since FHLBB has agreed to 
reimburse USPS at twice the normal rates for promptly performing such 
surveys, every reasonable effort should be made to accommodate such 
requests in a timely manner.
    (iv) Housing Vacancy Surveys will not be conducted during the month 
of December of any year.
    (v) Postmasters will notify the Office of Delivery and Collection, 
Washington, DC 20260, of the number of each type survey form completed 
for FHLBB. FHLBB will then remit payment directly to Headquarters, USPS.
    (vi) USPS will not release or publish any survey results except in 
response to a court order, subpoena, or as required by the Freedom of 
Information Act.
    (e) Unauthorized projects prohibited. Do not conduct special surveys 
or otherwise participate in any cooperative projects without the 
authorization in paragraph (c) of this section.

(39 U.S.C. 401, 411)

[36 FR 4773, Mar. 12, 1971, as amended at 40 FR 26511, June 24, 1975; 41 
FR 56196, Dec. 27, 1976; 42 FR 58170, Nov. 8, 1977; 42 FR 63170, Dec. 
15, 1977]

[[Page 104]]



Sec. 259.2  Red Cross.

    (a) General. The Postal Service and the Red Cross cooperate to 
maintain communication between the individual and the community during 
times of disaster. This applies only to natural disasters such as those 
caused by floods, tornados, hurricanes, earthquakes, fires, explosions, 
etc., and not to those caused by enemy action.
    (b) Role of Postal Service. The Postal Service and the Red Cross 
will share information on the whereabouts of persons displaced by 
disasters, and otherwise cooperate with each other, as follows:
    (1) The Red Cross will use Form 3575, Change of Address Order, as a 
standard item in Red Cross disaster relief. It will urge disaster 
victims displaced from their homes to obtain and complete the forms, it 
will distribute the forms to disaster victims who need them, and it will 
collect from the victims and turn over to the Postal Service any 
completed forms received.
    (2) The Postal Service will provide the Red Cross the blank forms 
needed.
    (3) During each disaster and subsequent disaster relief efforts, the 
Postal Service will establish a separate file of change of address forms 
completed by disaster victims, and will make available to the Red Cross 
information in the file. This information will be used by the Red Cross 
only to locate individuals and families, to answer inquiries from 
relatives and friends concerning the whereabouts and welfare of the 
disaster victims, or to make contact with disaster victims who have 
applied for assistance from the Red Cross but who cannot be located 
because of a change of address.
    (4) The Postal Service and the Red Cross will encourage appropriate 
local postal officials and Red Cross chapters to maintain contact with 
each other and to participate in local and community planning for 
disasters.
    (5) When appropriate, the Postal Service and the Red Cross will meet 
and exchange information at the national headquarters level concerning 
the effectiveness of their joint efforts for disaster relief.
    (6) Regional Postmasters General and Postal Inspectors in Charge are 
responsible for seeing that post offices implement these cooperative 
arrangements in disaster situations.
    (7) The instructions in Sec. 259.2 serve as a broad framework 
within which field officials of both agencies may coordinate their 
facilities and resources. However, postal officials shall cooperate with 
Red Cross officials to the maximum feasible degree during times of 
natural disasters.

(39 U.S.C. 401, 411)

[36 FR 4773, Mar. 12, 1971, as amended at 40 FR 26511, June 24, 1975]



Records and Information--Table of Contents





PART 261_RECORDS AND INFORMATION MANAGEMENT--Table of Contents



Sec.
261.1 Purpose and scope.
261.2 Authority.
261.3 Policy.
261.4 Responsibility.

    Authority: 39 U.S.C. 401.



Sec. 261.1  Purpose and scope.

    As a result of the Postal Reorganization Act, 39 U.S.C. 410, the 
U.S. Postal Service is no longer subject to the provisions of the 
Federal Records Act of 1950, or any of its supporting regulations which 
provide for the conduct of records management in Federal agencies. The 
objective of Parts 261 through 268 is to provide the basis for a Postal 
Service-wide records and information management program affecting all 
organizational components having the custody of any form of information 
and records.

[40 FR 45721, Oct. 2, 1975; 40 FR 48511, Oct. 16, 1975]



Sec. 261.2  Authority.

    (a) 39 U.S.C. 401(5) states that the Postal Service has the power to 
acquire property it deems necessary or convenient in the transaction of 
its business and to hold, maintain, sell, lease or otherwise dispose of 
such property.
    (b) 39 CFR 262.2 assigns to the Postal Service Records Office, 
located under the Privacy Office responsibility for the retention, 
security, and privacy of Postal Service records and the power to 
authorize the disclosure of such records and to order their disposal by

[[Page 105]]

destruction or transfer. Included is the authority to issue records 
management policy and to delegate or take appropriate action if that 
policy is not adhered to or if questions of interpretation of procedure 
arise.

[40 FR 45721, Oct. 2, 1975, as amended at 44 FR 51223, Aug. 31, 1979; 60 
FR 57344, Nov. 15, 1995; 68 FR 56558, Oct. 1, 2003]



Sec. 261.3  Policy.

    It is the policy of the Postal Service:
    (a) To, as appropriate, create, preserve, protect and disclose 
records which contain adequate and proper documentation of the 
organization, functions, policies, decisions, operations, procedures, 
activities and transactions of the Postal Service,
    (b) To reduce to an absolute minimum the records holdings of the 
Postal Service by strict adherence to established records retention 
schedules.

[40 FR 45721, Oct. 2, 1975, as amended at 44 FR 51223, Aug. 31, 1979]



Sec. 261.4  Responsibility.

    (a) The Manager, Records Office, under the Privacy Office, 
administers the Postal Service release of information and privacy of 
information programs with the assistance of FOIA coordinators in the 
Consumer Affairs function of area and district offices.
    (b) The Chief Privacy Officer, under the Vice President and Consumer 
Advocate, is responsible for administering records and information 
management policies and for the compliance of all handbooks, directives, 
and instructions in support of this policy.
    (c) Postal Service managers are responsible for administering 
records and information management policies and for complying with all 
handbooks, directives, and instructions in support of this policy.

[64 FR 41290, July 30, 1999, as amended at 68 FR 56558, Oct 1, 2003]



PART 262_RECORDS AND INFORMATION MANAGEMENT DEFINITIONS--Table of Contents



Sec.
262.1 Purpose and scope.
262.2 Officials.
262.3 Information.
262.4 Records.
262.5 Systems (Privacy).
262.6 Retention and disposal.
262.7 Non-records.

    Authority: 5 U.S.C. 552, 552a; 39 U.S.C. 401.

    Source: 49 FR 30693, Aug. 1, 1984, unless otherwise noted.



Sec. 262.1  Purpose and scope.

    This part contains the official definition of those basic records 
and information management terms that are frequently used throughout 
Postal Service regulations and directives.



Sec. 262.2  Officials.

    (a) Chief Privacy Officer. The Chief Privacy Officer (CPO) is 
responsible for the issuance of policy on the protection of privacy and 
the release of Postal Service records with the power to authorize the 
disclosure of such records and to delegate or take appropriate action if 
that policy is not adhered to or if questions of interpretation or 
procedure arise. The CPO directs the activities of the Privacy Office 
and the Records Office.
    (b) Manager, Records Office. The Manager, Records Office, manages 
the Records Office, and is responsible for establishing procedures and 
guidelines to ensure that record management practices are in compliance 
with the Privacy Act and FOIA. The Manager, Records Office, may also 
delegate or take appropriate action if policies are not adhered to or if 
questions of interpretation or procedures arise.
    (c) Records Custodian. The postmaster or other head of a facility 
such as an area vice president, district manager, or head of a postal 
installation or department who maintains Postal Service records. Vice 
presidents are the custodians of records maintained at Headquarters. 
Senior medical personnel are the custodians of restricted medical 
records maintained within postal facilities.
    (d) Information System Executive. The Postal Service official who 
prescribes the existence of and the policies for an information system; 
usually this is a Vice President.
    (e) Records Office. The Records Office is responsible for the 
issuance of policy on the maintenance and disposition of

[[Page 106]]

Postal Service records and information, and to delegate or take 
appropriate action if such policy is not adhered to or if questions of 
interpretation or procedure arise.

[49 FR 30693, Aug. 1, 1984, as amended at 51 FR 26385, July 23, 1986; 60 
FR 57344, Nov. 15, 1995; 63 FR 6481, Feb. 9, 1998; 64 FR 41290, July 30, 
1999; 68 FR 56558, Oct. 1, 2003]



Sec. 262.3  Information.

    Data combined with the knowledge of its context and having the 
potential to serve a Postal Service use.
    (a) Sensitive information. Information which has been identified by 
the USPS as restricted or critical.
    (1) Critical information. Information that must be available in 
order that the Postal Service effectively perform its mission and meet 
legally assigned responsibilities; and for which special precautions are 
taken to ensure its accuracy, relevance, timeliness and completeness. 
This information, if lost, would cause significant financial loss, 
inconvenience or delay in performance of the USPS mission.
    (2) Restricted information. Information that has limitations placed 
upon both its access within the Postal Service and disclosure outside 
the Postal Service consistent with the Privacy and Freedom of 
Information Acts.
    (i) Restricted mandatory. Information that has limitations upon its 
internal access and that may be disclosed only in accordance with an 
Executive Order, public law, or other Federal statute and their 
supporting postal regulations.
    (ii) Restricted discretionary. Information that has limitations upon 
its internal access and that may be withheld from external disclosure 
solely in accordance with postal regulations, consistent with the 
Freedom of Information Act.
    (b) Classified information (National Security). Information about 
the national defense and foreign relations of the United States that has 
been determined under Executive Order 12356 to require protection 
against unauthorized disclosure and has been so designated.



Sec. 262.4  Records.

    Recorded information, regardless of media, format, or physical 
characteristics, including electronic data, developed or received by the 
Postal Service in connection with the transaction of its business and 
retained in its custody; for machine-readable records, a collection of 
logically related data treated as a unit.
    (a) Permanent record. A record determined by the Records Office or 
the National Archives and Records Administration as having sufficient 
historical or other value to warrant continued preservation. (All other 
records are considered temporary and must be scheduled for disposal.)
    (b) Corporate records. Those records series that are designated by 
the Records Office as containing information of legal, audit, obligatory 
or archival value about events and transactions of interest to the 
entire corporate body of the Postal Service. Corporate records are 
distinguished from operational records, which have value only in their 
day-to-day use, and from precedential files, which have value only as 
examples.
    (c) Active record. A record that contains information used for 
conducting current business.
    (d) Inactive record. A record that contains information which is not 
used for conducting current business, but for which the retention period 
has not yet expired.
    (e) Vital records. Certain records which must be available in the 
event of a national emergency in order to ensure the continuity of 
Postal Service operations and the preservation of the rights and 
interests of the Postal Service, its employees, contractors and 
customers. There are two types of vital records: Emergency Operating 
Records and Rights and Interests Records.
    (1) Emergency operating records. Certain vital records necessary to 
support essential functions of the Postal Service during and immediately 
following a national emergency.
    (2) Rights and interest records. Certain vital records maintained to 
ensure the preservation of the rights and interests

[[Page 107]]

of the Postal Service, its employees, contractors and customers.

[49 FR 30693, Aug. 1, 1984, as amended at 51 FR 26385, July 23, 1986; 60 
FR 57344, Nov. 15, 1995; 63 FR 6481, Feb. 9, 1998; 64 FR 41290, July 30, 
1999; 68 FR 56558, Oct. 1, 2003]



Sec. 262.5  Systems (Privacy).

    (a) Privacy Act system of records. A Postal Service system 
containing information about individuals, including mailing lists, from 
which information is retrieved by the name of an individual or by some 
identifying number or symbol assigned to the individual, such as a 
Social Security Account Number.
    (b) Individual (record subject). A living person. Does not include 
sole proprietorships, partnerships or corporations. A business firm 
identified by the name of one or more persons is not an individual.
    (c) Computer matching program. A ``matching program,'' as defined in 
the Privacy Act, 5 U.S.C. 552a(a)(8), is subject to the matching 
provisions of the Act, published guidance of the Office of Management 
and Budget, and these regulations. The term ``matching program'' 
includes any computerized comparison of:
    (1) A Postal Service automated system of records with an automated 
system of records of another Federal agency, or with non-Federal 
records, for the purpose of:
    (i) Establishing or verifying the eligibility of, or continuing 
compliance with statutory and regulatory requirements by, applicants 
for, recipients or beneficiaries of, participants in, or providers of 
services with respect to, cash or in-kind assistance or payments under 
Federal benefit programs, or
    (ii) Recouping payments or delinquent debts under such Federal 
benefit programs;
    (2) A Postal Service automated personnel or payroll system of 
records with another automated personnel or payroll system of records of 
the Postal Service or other Federal Agency or with non-Federal records.
    (d) Other computer matching activities. (1) The following kinds of 
computer matches are specifically excluded from the term ``matching 
program'':
    (i) Statistical matches whose purpose is solely to produce aggregate 
data stripped of personal identifiers.
    (ii) Statistical matches whose purpose is in support of any research 
or statistical project.
    (iii) Law enforcement investigative matches whose purpose is to 
gather evidence against a named person or persons in an existing 
investigation.
    (iv) Tax administration matches.
    (v) Routine administrative matches using Federal personnel records, 
provided that the purpose is not to take any adverse action against an 
individual.
    (vi) Internal matches using only records from Postal Service systems 
of records, provided that the purpose is not to take any adverse action 
against any individual.
    (vii) Matches performed for security clearance background checks or 
for foreign counterintelligence.
    (2) Although these and other matching activities that fall outside 
the definition of ``matching program'' are not subject to the matching 
provisions of the Privacy Act or OMB guidance, other provisions of the 
Act and of these regulations may be applicable. No matching program or 
other matching activity may be conducted without the prior approval of 
the Records Office.

[49 FR 30693, Aug. 1, 1984, as amended at 59 FR 37160, July 21, 1994; 60 
FR 57344, Nov. 15, 1995; 64 FR 41290, July 30, 1999; 68 FR 56558, Oct. 
1, 2003]



Sec. 262.6  Retention and disposal.

    (a) Records control schedule. A directive describing records series 
that are maintained by components of the Postal Service; it provides 
maintenance, retention, transfer, and disposal instructions for each 
series listed, and serves as the authority for Postal officials to 
implement such instructions.
    (b) Disposal (records). The permanent removal of records or 
information from Postal Service custody; included are:
    (1) Transfer to the National Archives.
    (2) Donation to the Smithsonian Institution, local museums or 
historical societies.
    (3) Sale as waste material.
    (4) Discarding.
    (5) Physical destruction.

[[Page 108]]

    (c) Retention period. The authorized length of time that a records 
series must be kept before its disposal, usually stated in terms of 
months or years, but sometimes expressed as contingent upon the 
occurrence of an event; usually the retention period refers to the 
period of time between the creation of a series and its authorized 
disposal date; however, in some cases it refers to the length of time 
between the cutoff point and the disposal date.



Sec. 262.7  Non-records.

    (a) Non-record material. Includes blank forms and surplus 
publications, handbooks, circulars, bulletins, announcements, and other 
directives as well as any material not directly associated with the 
transaction of Postal Service business.
    (b) Personal papers. Those materials created or received during an 
individual's period of employment with the Postal Service which are of a 
purely private or nonofficial character, or which were neither created 
nor received in connection with Postal Service business.



PART 263_RECORDS RETENTION AND DISPOSITION--Table of Contents



Sec.
263.1 Purpose and scope.
263.2 Policy.
263.3 Responsibility.
263.4 Records disposal.
263.5 Inquiries.

    Authority: 39 U.S.C. 401.

    Source: 40 FR 45722, Oct. 2, 1975, unless otherwise noted.



Sec. 263.1  Purpose and scope.

    This part contains the policy and general regulations pertaining to 
the retention and disposition of records and information throughout all 
organizational levels and components.



Sec. 263.2  Policy.

    It is the policy of the U.S. Postal Service to establish and 
maintain schedules specifying the retention periods required for all 
official and duplicate record copies. Furthermore, it is the policy that 
all duplicate record copies and non-record material will be disposed of 
as soon as they have served their purpose.



Sec. 263.3  Responsibility.

    (a) Records Office. Records Office has the responsibility for 
providing for the establishment of retention schedules and has the 
authority to approve them. Furthermore, that office has the authority to 
dispose of Postal Service records by transfer or destruction.
    (b) Custodians. Custodians are responsible for the retention and 
prompt disposal of records in their custody and for delegating in 
writing, persons to perform these duties.

[40 FR 45722, Oct. 2, 1975, as amended at 60 FR 57344, Nov. 15, 1995; 64 
FR 41290, July 30, 1999; 68 FR 56558, Oct. 1, 2003]



Sec. 263.4  Records disposal.

    All disposals of records containing sensitive information, i.e. 
transfers to records storage centers, destruction, transfers external to 
the USPS, and maintenance of accounting records regarding such disposal, 
must be accomplished in accordance with procedures issued by the Records 
Office.

[40 FR 45722, Oct. 2, 1975, as amended at 60 FR 57344, Nov. 15, 1995. 
Redesignated and amended at 64 FR 41290, July 30, 1999; 68 FR 56558, 
Oct. 1, 2003]



Sec. 263.5  Inquiries.

    Inquiries regarding records maintenance and disposition should be 
directed to the Manager, Records Office, United States Postal Service, 
475 L'Enfant Plaza, SW., Washington, DC 20260, or, by telephone, (202) 
268-2608.

[64 FR 41290, July 30, 1999, as amended at 68 FR 56558, Oct. 1, 2003]



PART 264_VITAL RECORDS--Table of Contents



Sec.
264.1 Purpose and scope.
264.2 Policy.
264.3 Responsibility.
264.4 Vital Records Program.

    Authority: 39 U.S.C. 401.

    Source: 44 FR 51224, Aug. 31, 1979, unless otherwise noted.



Sec. 264.1  Purpose and scope.

    Certain records are critical to the continuity of Postal Service 
operations

[[Page 109]]

or to the preservation of the rights and interests of the Postal 
Service, its employees, contractors or customers. To ensure that these 
records are available when needed, specific controls are required which 
affect all organizational components having the custody of records 
defined as being ``vital.''



Sec. 264.2  Policy.

    It is the policy of the U.S. Postal Service to ensure the 
availability of all records considered critical to the continuity of its 
operations and the preservation of the rights and interests of the 
Postal Service, its employees, contractors, and customers. Vital records 
shall be routinely maintained at predesignated off-site locations to 
ensure their availability when needed by management and operating 
personnel.



Sec. 264.3  Responsibility.

    (a) Manager, Records Office. The Manager, Records Office, is 
responsible for categorizing records as vital, and in conjunction with 
the Chief Postal Inspector/Emergency Coordinator shall establish and 
maintain the vital records program, and ensure compliance with 
supportive procedures.
    (b) Chief Postal Inspector. As the Postal Service's Emergency 
Coordinator, the Chief Postal Inspector shall establish and maintain a 
program to ensure that vital records are available at predesignated off-
site locations for use during a national emergency.
    (c) Custodians. Custodians are responsible for following vital 
records program procedures including the forwarding of vital records to 
predesignated off-site locations.

[44 FR 51224, Aug. 31, 1979, as amended at 60 FR 57344, Nov. 15, 1995; 
64 FR 41290, July 30, 1999; 68 FR 56558, Oct. 1, 2003]



Sec. 264.4  Vital Records Program.

    Complete procedures concerning the identification, categorization, 
processing, protection, and transfer of vital records are provided by 
the office of Corporate Accounting or the USPS Emergency Coordinator, as 
appropriate.

[44 FR 51224, Aug. 31, 1979, as amended at 60 FR 57344, Nov. 15, 1995; 
64 FR 41290, July 30, 1999]



PART 265_RELEASE OF INFORMATION--Table of Contents



Sec.
265.1 Purpose and scope.
265.2 Policy.
265.3 Responsibility.
265.4 Inquiries.
265.5 Public reading rooms.
265.6 Availability of records.
265.7 Procedure for inspection and copying of records.
265.8 Business information; procedures for predisclosure notification to 
          submitters.
265.9 Schedule of fees.
265.10 Annual report.
265.11 Compliance with subpoena duces tecum, court orders, and 
          summonses.
265.12 Demands for testimony or records in certain legal proceedings.
265.13 Compliance with subpoenas, summonses, and court orders by postal 
          employees within the Inspection Service where the Postal 
          Service, the United States, or any other federal agency is not 
          a party.

Appendix A to Part 265--Fees for Computer Services

    Authority: 5 U.S.C. 552; 5 U.S.C. App. 3; 39 U.S.C. 401, 403, 410, 
1001, 2601.



Sec. 265.1  Purpose and scope.

    (a) This part contains the regulations of the Postal Service 
relating to the availability to the public of Postal Service records. 
Included in this part are the regulations which implement section 552 of 
title 5, U.S.C., the ``Freedom of Information Act,'' insofar as it 
applies to the Postal Service.
    (b) Official records of the Postal Service made available pursuant 
to the requirements of the Act shall be furnished to members of the 
public as prescribed by this part.

[40 FR 7331, Feb. 19, 1975]



Sec. 265.2  Policy.

    (a) It is the policy of the Postal Service to make its official 
records available to the public to the maximum extent consistent with 
the public interest. This policy requires a practice of full disclosure 
subject only to the specific exemptions required or authorized by law.
    (b) The exemptions from mandatory disclosure provided by section 
552(b) of title 5, and section 410(c) of title 39,

[[Page 110]]

U.S.C., for various types of records, reflect the fact that under some 
circumstances the public interest may be better served by leaving the 
disclosure of particular records to the discretion of the Postal Service 
than by requiring their disclosure. As to those records the disclosure 
of which is not prohibited by statute, Executive Order, or regulation, 
the discretion vested in the Postal Service is exercised after giving 
consideration to the following: The effect of non-disclosure on the 
public's right to know about a particular matter; the effect of 
disclosure on the right of privacy of any affected individuals; the 
effect of disclosure on the public interest in the economical, 
efficient, and orderly operation of the nation's mail system; and any 
other factors that may be relevant under the circumstances.

[40 FR 7331, Feb. 19, 1975, as amended at 45 FR 44270, July 1, 1980]



Sec. 265.3  Responsibility.

    (a) Custodian. Official records are in the custody of the postmaster 
or other head of a facility or department at which they are maintained, 
as defined at Sec. 262.2(c) of this chapter. These custodians are 
responsible for responding in the first instance to requests from 
members of the public for Postal Service records.
    (b) Manager, Records Office. The Postal Service Manager, Records 
Office, under the Privacy Office, is responsible for the overall 
administration of this part, including the issuance of detailed 
instructions to custodians.
    (c) General Counsel. The General Counsel decides timely appeals 
authorized by this part.

[40 FR 7331, Feb. 19, 1975, as amended at 45 FR 44270, July 1, 1980; 60 
FR 57344, Nov. 15, 1995; 63 FR 6481, Feb. 9, 1998; 64 FR 41290, July 30, 
1999; 68 FR 56558, Oct. 1, 2003]



Sec. 265.4  Inquiries.

    Inquiries regarding the availability of Postal Service records 
should be directed to the appropriate records custodian. If the 
appropriate records custodian is not known, inquiries should be directed 
to the Manager, Records Office, U.S. Postal Service, 475 L'Enfant Plaza 
SW., Washington, DC 20260, telephone (202) 268-2608.

[60 FR 57345, Nov. 15, 1995, as amended at 64 FR 41290, July 30, 1999; 
68 FR 56559, Oct. 1, 2003]



Sec. 265.5  Public reading rooms.

    The Library of the Postal Service Headquarters, 475 L'Enfant Plaza 
SW, Washington, DC 20260-1641, serves as public reading room for the 
materials which are listed in paragraphs (a)(2), (3), (4) and (5) of 
Sec. 265.6 as available for public inspection and copying. Such of this 
material as has been created by the Postal Service on or after November 
1, 1996, and has not been published and offered for sale, also will be 
available in electronic format at the Postal Service's world wide web 
site at http://www.usps.com/foia.

[63 FR 6481, Feb. 9, 1998, as amended at 68 FR 56559, Oct. 1, 2003]



Sec. 265.6  Availability of records.

    (a) Records available to the public on request--(1) General. Postal 
Service records are available for inspection or copying at the request 
of any person, in accordance with the provisions of this part, except as 
otherwise provided by law or regulations, including but not limited to 
paragraphs (b) through (g) of this section. Certain categories of 
records of particular interest are available on a continuing basis as 
provided in paragraphs (a)(2), (3), and (4) of this section and are 
listed in a public index as provided in paragraphs (a)(4) and (5) of 
this section. Access to other records may be requested on an individual 
basis in accordance with the procedures provided in Sec. 265.7. 
Official records which are maintained on an electronic storage medium 
will normally be made available, in accordance with this part, as an 
exact duplicate of the requested original in a form readable by the 
human eye, such as a computer print-out. On request, records will be 
provided in a different form or format if they are maintained in the 
requested form or format or if they can be readily reproduced in the 
requested form or format.
    (2) Opinions. All final opinions and orders made in the adjudication 
of

[[Page 111]]

cases by the Judicial Officer and Administrative Law Judges, all final 
determinations pursuant to section 404(b) of title 39, United States 
Code, to close or consolidate a post office, or to disapprove a proposed 
closing or consolidation, all advisory opinions concerning the private 
express statutes issued pursuant to 39 CFR 310.6, and all bid protest 
decisions are on file and available for inspection and copying at the 
Headquarters Library and, if created on or after November 1, 1996, also 
at the Postal Service's world wide web site identified at Sec. 265.5.
    (3) Administrative manuals and instructions to staff. The manuals, 
instructions, and other publications of the Postal Service that affect 
members of the public are available through the Headquarters Library and 
at many post offices and other postal facilities. Those which are 
available to the public but are not listed for sale may be inspected in 
the Headquarters Library, at any postal facility which maintains a copy, 
or, if created on or after November 1, 1996, through the world wide web 
site identified at Sec. 265.5. Copies of publications which are not 
listed as for sale or as available free of charge may be obtained by 
paying a fee in accordance with Sec. 265.9.
    (4) Previously released records. Records processed and disclosed 
after March 31, 1997, in response to a Freedom of Information Act 
request, which the Postal Service determines have become or are likely 
to become the subject of subsequent requests for substantially the same 
records, are available for inspection and copying at the Headquarters 
Library. Any such records created by the Postal Service on or after 
November 1, 1996, also will be available at the Postal Service's world 
wide web site identified at Sec. 265.5. Records described in this 
paragraph that were not created by, or on behalf of, the Postal Service 
generally will not be available at the world wide web site. Records will 
be available in the form in which they were originally disclosed, except 
to the extent that they contain information that is not appropriate for 
public disclosure and may be withheld pursuant to this section. Any 
deleted material will be marked and the applicable exemption(s) 
indicated in accordance with Sec. 265.7(d)(3). A general index of the 
records described in this paragraph is available for inspection and 
copying at the Headquarters Library. [Beginning on or before December 
31, 1999, the index also will be available at the Postal Service's world 
wide web site.]
    (5) Public index. (i) A public index is maintained in the 
Headquarters Library and at the world wide web site of all final 
opinions and orders made by the Postal Service in the adjudication of 
cases, Postal Service policy statements which may be relied on as 
precedents in the disposition of cases, administrative staff manuals and 
instructions that affect the public, and other materials which the 
Postal Service elects to index and make available to the public on 
request in the manner set forth in paragraph (a) of this section.
    (ii) The index contains references to matters issued after July 4, 
1967, and may reference matters issued prior to that date.
    (iii) Any person may arrange for the inspection of any matter in the 
public index in accordance with the procedures of Sec. 265.7.
    (iv) Copies of the public index and of matters listed in the public 
index may be purchased through the Headquarters Library with payment of 
fees as listed in the index or as provided in Sec. 265.9.
    (v) Materials listed in the public index that were created on or 
after November 1, 1996, will also be available in electronic format at 
the Postal Service's world wide web site at http://www.usps.gov.
    (6) Listings of employees' names. Upon written request, the Postal 
Service will, to the extent required by law, provide a listing of postal 
employees working at a particular postal facility.
    (b) Records not subject to mandatory public disclosure. Certain 
classes of records are exempt from mandatory disclosure under exemptions 
contained in the Freedom of Information Act and in section 410(c) of 
title 39, U.S.C. The Postal Service will exercise its discretion, in 
accordance with the policy stated in Sec. 265.2, as implemented by 
instructions issued by the Records Office with the approval of the 
General Counsel in determining whether the public interest is served by 
the inspection or copying of records that are:

[[Page 112]]

    (1) Related solely to the internal personnel rules and practices of 
the Postal Service.
    (2) Trade secrets, or privileged or confidential commercial or 
financial information, obtained from any person.
    (3) Information of a commercial nature, including trade secrets, 
whether or not obtained from a person outside the Postal Service, which 
under good business practice would not be publicly disclosed. This class 
includes, but is not limited to:
    (i) Information pertaining to methods of handling valuable 
registered mail.
    (ii) Records of money orders, except as provided in R900 of the 
Domestic Mail Manual (DMM).
    (iii) Technical information concerning postage meters and prototypes 
submitted for Postal Service approval prior to leasing to mailers.
    (iv) Reports of market surveys conducted by or under contract in 
behalf of the Postal Service.
    (v) Records indicating rural carrier lines of travel.
    (vi) Records compiled within the Postal Service which would be of 
potential benefit to persons or firms in economic competition with the 
Postal Service.
    (vii) Information which, if publicly disclosed, could materially 
increase procurement costs.
    (viii) Information which, if publicly disclosed, could compromise 
testing or examination materials.
    (4) Interagency or internal memoranda or letters that would not be 
available by law to a private party in litigation with the Postal 
Service.
    (5) Reports and memoranda of consultants or independent contractors, 
except to the extent they would be required to be disclosed if prepared 
within the Postal Service.
    (6) Files personal in nature, including medical and personnel files, 
the disclosure of which would constitute a clearly unwarranted invasion 
of personal privacy.
    (7) Information prepared for use in connection with proceedings 
under chapter 36 of title 39, U.S.C., relating to rate, classification, 
and service changes.
    (8) Information prepared for use in connection with the negotiation 
of collective bargaining agreements under chapter 12 of title 39, 
U.S.C., or minutes of, or notes kept during, negotiating sessions 
conducted under such chapter.
    (9) Other matter specifically exempted from disclosure by statute.
    (c) Records or information compiled for law enforcement purposes. 
(1) Investigatory files compiled for law enforcement purposes, whether 
or not considered closed, are exempt by statute from mandatory 
disclosure except to the extent otherwise available by law to a party 
other than the Postal Service, 39 U.S.C. 410(c)(6). As a matter of 
policy, however, the Postal Service will normally make records or 
information compiled for law enforcement purposes available upon request 
unless the production of these records:
    (i) Could reasonably be expected to interfere with enforcement 
proceedings;
    (ii) Would deprive a person of a right to a fair trial or an 
impartial adjudication;
    (iii) Could reasonably be expected to constitute an unwarranted 
invasion of personal privacy;
    (iv) Could reasonably be expected to disclose the identity of a 
confidential source, including a State, local, or foreign agency or 
authority or any private institution which furnished information on a 
confidential basis, and, in the case of a record or information compiled 
by a criminal law enforcement authority (such as the Postal Inspection 
Service) in the course of a criminal investigation, or by an agency 
conducting a lawful national security intelligence investigation, 
information furnished by a confidential source;
    (v) Would disclose techniques and procedures for law enforcement 
investigations or prosecutions, or would disclose guidelines for law 
enforcement investigations or prosecutions if such disclosure could 
reasonably be expected to risk circumvention of the law; or
    (vi) Could reasonably be expected to endanger the life or physical 
safety of any individual.

[[Page 113]]

    (2) Whenever a request is made which involves access to records 
described in Sec. 265.6(c)(1)(i), and
    (i) The investigation or proceeding involves a possible violation of 
criminal law; and
    (ii) There is reason to believe that,
    (A) The subject of the investigation or proceeding is not aware of 
its pendency, and
    (B) Disclosure of the existence of the records could reasonably be 
expected to interfere with enforcement proceedings, the Postal Service 
may, during only such time as that circumstance continues, treat the 
records as not subject to the requirements of the Freedom of Information 
Act.
    (3) Whenever informant records maintained by a criminal law 
enforcement agency (such as the Postal Inspection Service) under an 
informant's name or personal identifier are requested by a third party 
according to the informant's name or personal identifier, the records 
may be treated as not subject to the requirements of the Freedom of 
Information Act unless the informant's status as an informant has been 
officially confirmed.
    (4) Authority to disclose records or information compiled for law 
enforcement purposes to persons outside the Postal Service must be 
obtained from the Chief Postal Inspector, U.S. Postal Service, 
Washington, DC 20260-2100, or designee.
    (d) Disclosure of names and addresses of customers. Upon request, 
the names and addresses of specifically identified Postal Service 
customers will be made available only as follows:
    (1) Change of address. The new address of any specific customer who 
has filed a permanent or temporary change of address order (by 
submitting PS Form 3575, a hand-written order, or an electronically 
communicated order) will be furnished to any person, except that the new 
address of a specific customer who has indicated on the order that the 
address change is for an individual or an entire family will be 
furnished only in those circumstances stated at paragraph (d)(5) of this 
section. Disclosure will be limited to the address of the specifically 
identified individual about whom the information is requested (not other 
family members or individuals whose names may also appear on the change 
of address order). The Postal Service reserves the right not to disclose 
the address of an individual for the protection of the individual's 
personal safety. Other information on PS Form 3575 or copies of the form 
will not be furnished except in those circumstances stated at paragraphs 
(d)(5)(i), (d)(5)(iii), or (d)(5)(iv) of this section.
    (2) Name and address of permit holder. The name and address of the 
holder of a particular bulk mail permit, permit imprint or similar 
permit (but not including postage meter licenses), and the name of any 
person applying for a permit in behalf of a holder will be furnished to 
any person upon the payment of any fees authorized by paragraph (b) of 
Sec. 265.9. For the name and address of a postage meter license holder, 
see paragraph (d)(3) of this section. (Lists of permit holders may not 
be disclosed to members of the public. See paragraph (e)(1) of this 
section.)
    (3) Name and address of postage evidencing user. The name and 
address of an authorized user of a postage meter or PC Postage product 
(postage evidencing systems) printing a specified indicium will be 
furnished to any person upon the payment of any fees authorized by 
paragraph (b) of Sec. 265.9, provided the user is using the postage 
meter or PC Postage product for business purposes. The request for this 
information must be sent to the manager of Postage Technology 
Management, Postal Service Headquarters. The request must include the 
original or a photocopy of the envelope or wrapper on which the postage 
meter or PC postage indicium in question is printed, and a copy or 
description of the contents to support that the sender is a business or 
firm and not an individual. (Lists of authorized users of postage meters 
or PC Postage products may not be disclosed to members of the public.)
    (4) Post Office boxholder information. Information from PS Form 
1093, Application for Post Office Box or Caller Service, will be 
provided as follows:
    (i) Except as provided in paragraph (d)(4)(iii) of this section, the 
boxholder applicant name and address from PS Form 1093 will be provided 
only in

[[Page 114]]

those circumstances stated in paragraphs (d)(5)(i) through (d)(5)(iii) 
of this section.
    (ii) Except as provided in paragraph (d)(4)(iii) of this section, 
the names of persons listed as receiving mail, other than the boxholder 
applicant, will be furnished from PS Form 1093 only in those 
circumstances stated in paragraphs (d)(5)(i) and (d)(5)(iii) of this 
section.
    (iii) When a copy of a protective order has been filed with the 
postmaster, information from PS Form 1093 will not be disclosed except 
pursuant to the order of a court of competent jurisdiction.
    (5) Exceptions. Except as otherwise provided in these regulations, 
names or addresses of Postal Service customers will be furnished only as 
follows:
    (i) To a federal, state or local government agency upon prior 
written certification that the information is required for the 
performance of its duties. The Postal Service requires government 
agencies to use the format appearing at the end of this section when 
requesting the verification of a customer's current address or a 
customer's new mailing address. If the request lacks any of the required 
information or a proper signature, the postmaster will return the 
request to the agency, specifying the deficiency in the space marked 
`OTHER'. A copy of PS Form 1093 may be provided.
    (ii) To a person empowered by law to serve legal process, or the 
attorney for a party in whose behalf service will be made, or a party 
who is acting pro se, upon receipt of written information that 
specifically includes all of the following: (A) A certification that the 
name or address is needed and will be used solely for service of legal 
process in connection with actual or prospective litigation; (B) a 
citation to the statute or regulation that empowers the requester to 
serve process, if the requester is other than the attorney for a party 
in whose behalf service will be made, or a party who is acting pro se; 
(C) the names of all known parties to the litigation; (D) the court in 
which the case has been or will be commenced; (E) the docket or other 
identifying number, if one has been issued; and (F) the capacity in 
which the boxholder is to be served, e.g., defendant or witness. By 
submitting such information, the requester certifies that it is true. 
The address of an individual who files with the postmaster a copy of a 
protective court order will not be disclosed except as provided under 
paragraphs (d)(5)(i), (d)(5)(iii), or (d)(5)(iv) of this section. A copy 
of Form 1093 will not be provided.
    The Postal Service suggests use of the standard format appearing at 
the end of this section when requesting information under this 
paragraph. When using the standard format on the submitter's own 
letterhead, the standard format must be used in its entirety. The 
warning statement and certification specifically must be included 
immediately before the signature block. If the request lacks any of the 
required information or a proper signature, the postmaster will return 
it to the requester specifying the deficiency.

    Note: The term pro se means that a party is not represented by an 
attorney but by himself or herself.

    (iii) In compliance with a subpoena or court order, except that 
change of address or boxholder information which is not otherwise 
subject to disclosure under these regulations may be disclosed only 
pursuant to a court order.
    (iv) To a law enforcement agency, for oral requests made through the 
Inspection Service, but only after the Inspection Service has confirmed 
that the information is needed in the course of a criminal 
investigation. (All other requests from law enforcement agencies should 
be submitted in writing to the postmaster as in paragraph (d)(5)(i) of 
this section.)
    (6) Jury service. The mailing address of any customer sought in 
connection with jury service, if known, will be furnished without charge 
upon prior written request to a court official, such as a judge, court 
clerk or jury commissioner.
    (7) Address verification. The address of a postal customer will be 
verified at the request of a Federal, State, or local government agency 
upon written certification that the information is required for the 
performance of the agency's duties. ``Verification'' means advising such 
an agency whether or not

[[Page 115]]

its address for a postal customer is one at which mail for that customer 
is currently being delivered. ``Verification'' neither means nor implies 
knowledge on the part of the Postal Service as to the actual residence 
of the customer or as to the actual receipt by the customer of mail 
delivered to that address. The Postal Service requires government 
agencies to use the format appearing at the end of this section when 
requesting the verification of a customer's current address or a 
customer's new mailing address. If the request lacks any of the required 
information or a proper signature, the postmaster will return the 
request to the agency, specifying the deficiency in the space marked 
``OTHER''.
    (8) Business/Residence location. If the location of a residence or a 
place of business is known to a Postal Service employee, whether as a 
result of official duties or otherwise, the employee may, but need not, 
disclose the location or give directions to it. No fee is charged for 
such information.
    (9) Private mailbox information. Information from PS Form 1583, 
Application for Delivery of Mail Through Agent, will be provided as 
follows:
    (i) Except as provided in paragraph (d)(9)(iii) of this section, 
information from PS Form 1583 will be provided only in the circumstance 
stated in paragraph (d)(5)(iii) of this section.
    (ii) To the public only for the purpose of identifying a particular 
address as an address of an agent to whom mail is delivered on behalf of 
other persons. No other information, including, but not limited to, the 
identities of persons on whose behalf agents receive mail, may be 
disclosed to the public from PS Form 1583.
    (iii) Information concerning an individual who has filed a 
protective court order with the postmaster will not be disclosed except 
pursuant to the order of a court of competent jurisdiction.
    (e) Information not available for public disclosure. (1) Except as 
provided by paragraph (a)(6) of this section, the Postal Service and its 
officers and employees shall not make available to the public by any 
means or for any purpose any mailing list or other list of names or 
addresses (past or present) of postal patrons or other persons.
    (2) Records or other documents which are classified or otherwise 
specifically authorized by Executive Order 12356 and implementing 
regulations to be kept secret in the interest of the national defense or 
foreign policy are not subject to disclosure pursuant to this part.
    (3) Records consisting of trade secrets or confidential financial 
data, the disclosure of which is prohibited by section 1905 of title 18, 
U.S.C., are not subject to disclosure pursuant to this part.
    (4) Other records, the disclosure of which is prohibited by statute, 
are not subject to disclosure pursuant to this part.
    (f) Protection of the right of privacy. If any record required or 
permitted by this part to be disclosed contains the name of, or other 
identifying details concerning, any person, including an employee of the 
Postal Service, the disclosure of which would constitute a clearly 
unwarranted invasion of personal privacy, the name or other identifying 
details shall be deleted before the record is disclosed and the 
requester so informed.
    (g) Disclosure in part of otherwise exempt record. Any reasonably 
segregable portion of a record shall be provided after deleting the 
information which is neither subject to mandatory disclosure nor 
available as a matter of discretion.

[[Page 116]]

[GRAPHIC] [TIFF OMITTED] TR01SE05.084


[[Page 117]]


[GRAPHIC] [TIFF OMITTED] TR01SE05.085


[40 FR 7331, Feb. 19, 1975]

    Editorial Note: For Federal Register citations affecting Sec. 
265.6, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and at www.fdsys.gov.



Sec. 265.7  Procedure for inspection and copying of records.

    (a) Submission of requests--(1) Form and content of request. To 
permit expeditious handling and timely response in accordance with the 
provisions of this part, a request to inspect or to obtain a copy of an 
identifiable Postal Service record shall be in writing and bear the 
caption ``Freedom of Information Act Request'' or otherwise be clearly 
and prominently identified as a request for records pursuant to the 
Freedom of Information Act. A request shall be clearly and prominently 
identified as such on the envelope or other cover. Other requests for 
information will be considered informal requests and will be handled as 
expeditiously as practicable but not necessarily within the

[[Page 118]]

time limitations set forth in Sec. 265.7(b). An informal request will 
be granted or denied according to the substantive rules in Sec. 265.6, 
if found to be a request for a record. A Freedom of Information Act 
request shall identify the record sought as completely as possible, by 
name, description, or subject matter, and be sufficient to permit the 
custodian to locate it with a reasonable amount of effort. The request 
may state the maximum amount of fees for which the requester is willing 
to accept liability without prior notice. See paragraph (f)(2) of Sec. 
265.8. If no amount is stated, the requester will be deemed willing to 
accept liability for fees not to exceed $25.
    (2) To whom submitted. A request shall be submitted to the custodian 
of the requested record. If the location of the record is not known, 
inquiry should be directed to the Manager, Records Office, U.S. Postal 
Service, 475 L'Enfant Plaza, SW., Washington, DC 20260, telephone (202) 
268-2608. If a request is submitted to a facility other than that at 
which the record is maintained, it shall be promptly transmitted to the 
appropriate custodian with a copy of the transmittal furnished to the 
requester. A request which is not initially submitted to the appropriate 
custodian shall be deemed to have been received by the Postal Service 
for purposes of computing the time for response is accordance with Sec. 
265.7(b) at the time that it is actually received by the appropriate 
custodian. If a request seeks records maintained at two or more 
facilities, the custodian shall be deemed to be the next senior common 
supervisor of the heads of the facilities, e.g., district manager, area 
vice president. The Records Office is deemed to be the custodian, for 
purposes of this part, in all instances in which a request is for a 
listing of postal employees. See Sec. 265.6(a)(6).
    (3) Reasons for request. In view of the possibility that some or all 
of the records may be exempt from mandatory disclosure, the requester 
may state any reasons why the record should nevertheless be made 
available to him even if exempt.
    (4) Request for waiver of fees. The requester may ask that fees or 
the advance payment of fees be waived in whole or in part. A fee waiver 
request shall indicate how the information will be used; to whom it will 
be provided; whether the requester intends to use the information for 
resale at a fee above actual cost; any personal or commercial benefit 
that the requester expects as a result of disclosure; in what manner the 
general public will benefit from disclosure; and information as to the 
intended user's identity, qualifications, expertise in the subject area, 
and ability and intention to disseminate the information to the public. 
(See Sec. 265.9(g)(3).)
    (5) Categorical requests. A request for all or substantially all of 
the records within a specific category will be deemed a reasonable 
description of those records only if it is possible, without further 
information, to determine which particular records are sought. See 
paragraph (b)(3) of this section concerning the providing of additional 
information.
    (6) Request for records located at numerous facilities. A request 
for records which are, or may be, located at all or a substantial number 
of post offices or other postal facilities will be deemed to be a 
reasonable description only of such of those records as are maintained 
at the post office or other facility to which the request is submitted, 
and of those records maintained at any other post offices or facilities 
specifically identified in the request. See paragraph (a)(2) of this 
section concerning the custodian of records of two or more facilities.
    (b) Responsibilities of the custodian. (1) The custodian of the 
requested record is the person responsible for determining whether to 
comply with or to deny the request. A custodian who is not an Officer as 
defined in Sec. 221.8 of this chapter, however, should not deny a 
request until he has obtained the advice of Chief Field Counsel. If 
denial of a request appears necessary, the custodian should seek advice 
as soon as possible after receipt of the request so as to provide 
adequate time for legal review. Denial must be made in accordance with 
paragraph (d) of this section.
    (2) The custodian shall make the determination whether to release or 
deny the record(s) within 20 working days (i.e., exclusive of Saturdays, 
Sundays,

[[Page 119]]

and holidays) of receiving the request, and more rapidly if feasible. 
The custodian and the requester may, by mutual agreement, preferably in 
writing, establish a different response period.
    (3) If a requested record cannot be located from the information 
supplied, the requester should be given an opportunity to supply 
additional information and, if feasible, to confer with the custodian or 
his/her representative, in an attempt to provide a reasonable 
description of the records sought. If additional information is 
furnished, the request will be deemed to have been received by the 
custodian when sufficient additional information to identify and locate 
the record with a reasonable amount of effort has been received.
    (4) The custodian shall make reasonable efforts to search for the 
records in electronic form or format, except when such efforts would 
significantly interfere with the operation of the automated information 
system.
    (5) The 20 working day response period allowed in paragraph (b)(2) 
of this section may be extended by the custodian, after consultation 
with Chief Field Counsel or with the General Counsel if the custodian is 
at Headquarters, for a period not to exceed an additional 10 working 
days, except as provided in paragraph (b)(7) of this section, when, and 
to the extent, reasonably necessary to permit the proper processing of a 
particular request, under one or more of the following unusual 
circumstances:
    (i) The request requires a search for and collection of records from 
a facility other than that processing the request.
    (ii) The request requires the search for, and collection and 
appropriate examination of, a voluminous amount of separate and distinct 
records.
    (iii) The request requires consultation:
    (A) With another agency having a substantial interest in the 
determination of whether to comply with the request or
    (B) Among two or more components of the Postal Service having 
substantial subject matter interest in the determination of whether to 
comply with the request.
    (6) When the custodian finds that the additional time is required, 
he shall acknowledge the request in writing within the initial 20-day 
response period, state the reason for the delay, and indicate the date 
on which a decision as to disclosure is expected.
    (7) If a request cannot be processed within the additional time 
provided by paragraph (b)(5) of this section, in spite of the exercise 
of due diligence, the custodian shall notify the requester of the 
exceptional circumstances preventing timely compliance and of the date 
by which it is expected that the determination will be made. The 
custodian also shall provide the requester an opportunity to limit the 
scope of the request so that it may be processed within the extended 
time limit, or an opportunity to arrange with the custodian an 
alternative time frame for processing the request or a modified request. 
The custodian shall nonetheless make a determination on the request as 
promptly as possible.
    (8) If a requested record is known to have been destroyed, disposed 
of, or otherwise not to exist, the requester shall be so notified.
    (c) Compliance with request upon affirmative determination by 
custodian. (1) When a requested record has been identified and is to be 
disclosed in whole or in part, the custodian shall ensure that the 
record is made available promptly and shall immediately notify the 
requester where and when and under what reasonable conditions, if any, 
including the payment of fees, the record will be available for 
inspection or copies will be available. Postal Service records will 
normally be available for inspection and copying during regular business 
hours at the postal facilities at which they are maintained. The 
custodian may, however, designate other reasonable locations and times 
for inspection and copying of some or all of the records within his 
custody.
    (2) Any fees authorized or required to be paid in advance by Sec. 
265.9(f)(3) shall be paid by the requester before the record is made 
available or a copy is furnished unless payment is waived or deferred 
pursuant to Sec. 265.9(g).
    (3) A custodian complying with a request may designate a 
representative to monitor any inspection or copying.

[[Page 120]]

    (d) Denial of request. (1) A reply denying a request in whole or in 
part shall be in writing, signed by the custodian or his designee, and 
shall include:
    (i) A statement of the reason for, or justification of, the denial 
(e.g., records personal in nature), including, if applicable, a 
reference to the provision or provisions of Sec. 265.6 authorizing the 
withholding of the record and a brief explanation of how each provision 
applies to the records requested.
    (ii) If entire records or pages are withheld, a reasonable estimate 
of the number of records or pages, unless providing such estimate would 
harm an interest protected by the exemption relied upon.
    (iii) A statement of the right to appeal and of the appeal procedure 
within the Postal Service (described in paragraph (e) of this section).
    (2) The custodian is ordinarily the person responsible for the 
denial of the request. If the denial of a particular request has been 
directed by higher authority, however, the name and title or position of 
the person directing the denial shall be given in the reply to the 
requester in place of the custodian as the person responsible for the 
denial, and a copy of the denial shall be sent to that person.
    (3) When information is deleted from a record that is disclosed in 
part, the custodian shall indicate, on the released portion of the 
record, the amount of information deleted, unless including that 
indication would harm an interest protected by the exemption relied on. 
The indication must appear, if technically feasible, at the place in the 
record where such deletion is made.
    (e) Appeal procedure. (1) If a request to inspect or to copy a 
record, or a request for expedited processing of the request, is denied, 
in whole or in part, if no determination is made within the period 
prescribed by this section, or if a request for waiver of fees is not 
granted, the requester may appeal to the General Counsel, U.S. Postal 
Service, Washington, DC 20260-1100.
    (2) The requester shall submit his appeal in writing within 30 days 
of the date of the denial or of the other action complained of, or 
within a reasonable time if the appeal is from a failure of the 
custodian to act. The General Counsel may, in his discretion, consider 
late appeals.
    (3) In the event of the denial of a request or of other action or 
failure to act on the part of a custodian from which no appeal is taken, 
the General Counsel may, if he considers that there is doubt as to the 
correctness of the custodian's action or failure to act, review the 
action or failure to act as though an appeal pursuant to this section 
had been taken.
    (4) A letter of appeal should include, as applicable:
    (i) A copy of the request, of any notification of denial or other 
action, and of any other related correspondence;
    (ii) A statement of the action, or failure to act, from which the 
appeal is taken;
    (iii) A statement of the reasons why the requester believes the 
action or failure to act is erroneous; and
    (iv) A statement of the relief sought.
    (f) Action on appeals. (1) The decision of the General Counsel or 
his designee constitutes the final decision of the Postal Service on the 
right of the requester to inspect or copy a record, or to expedited 
processing of the request, as appropriate. The General Counsel will give 
prompt consideration to an appeal for expedited processing of a request. 
All other decisions normally will be made within 20 working days from 
the time of the receipt by the General Counsel. The 20-day response 
period may be extended by the General Counsel or his designee for a 
period not to exceed an additional 10 working days when reasonably 
necessary to permit the proper consideration of an appeal, under one or 
more of the unusual circumstances set forth in paragraph (b)(5) of this 
section. The aggregate number of additional working days utilized 
pursuant to this paragraph (f)(1) and paragraph (b) of this section, 
however, may not exceed 10.
    (2) The decision on the appeal shall be in writing. If the decision 
sustains a denial of a record, in whole or in part, or if it denies 
expedited processing, it shall state the justification therefor and 
shall inform the requester of his right to judicial review. In the case 
of records withheld, the decision also shall specify any exemption or 
exemptions relied on and the manner in

[[Page 121]]

which they apply to the record, or portion thereof, withheld.
    (3) If not prohibited by or under law, the General Counsel or his 
designee may direct the disclosure of a record even though its 
disclosure is not required by law or regulation.
    (g) Expedited processing--(1) Criteria. A request for expedited 
processing of a request for records shall be granted when the requester 
demonstrates compelling need. For purposes of this paragraph, 
``compelling need'' exists if:
    (i) Failure of the requester to obtain the records on an expedited 
basis could reasonably be expected to pose an imminent threat to the 
life or physical safety of an individual or;
    (ii) In the case of a request made by a person primarily engaged in 
disseminating information, there is an urgency to inform the public 
concerning actual or alleged federal government activity.
    (2) Request. A request for expedited processing shall be directed in 
writing to the records custodian. The requester must provide information 
in sufficient detail to demonstrate compelling need for the records and 
certify this statement to be true and correct to the best of the 
requester's knowledge and belief. The custodian may waive the formality 
of certification when deemed appropriate.
    (3) Determination. The records custodian shall make a determination 
of whether to provide expedited processing and notify the requester 
within ten days after the date of the request for expedited processing. 
If the request is granted, the records custodian shall process the 
request for records as soon as practicable. If the request for expedited 
processing is denied, the written response will include the procedures 
at paragraph (d) of this section for appealing the denial.

[40 FR 7331, Feb. 19, 1975, as amended at 45 FR 44271, July 1, 1980; 47 
FR 20304, May 12, 1982; 51 FR 26386, July 23, 1986; 52 FR 13668, Apr. 
24, 1987; 60 FR 57345, Nov. 15, 1995; 62 FR 64282, Dec. 5, 1997; 63 FR 
6482, Feb. 9, 1998; 64 FR 41290, July 30, 1999; 68 FR 56559, Oct. 1, 
2003; 69 FR 34935, June 23, 2004]



Sec. 265.8  Business information; procedures for predisclosure 
notification to submitters.

    (a) In general. This section provides a procedure by which persons 
submitting business information to the Postal Service can request that 
the information not be disclosed pursuant to a request under the Freedom 
of Information Act. This section does not affect the Postal Service's 
right, authority, or obligation to disclose information in any other 
context, nor is it intended to create any right or benefit, substantive 
or procedural, enforceable at law by a party against the Postal Service, 
its officers, or any person. Existing rights of submitters are also 
unaffected. For purposes of this section, the following definitions 
apply:
    (1) Business information means commercial or financial information 
provided directly or indirectly to the Postal Service by a submitter 
that arguably is protected from disclosure under Exemption 4 of the 
Freedom of Information Act, 5 U.S.C. 552(b)(4), which is restated in 
Sec. 265.6(b)(2).
    (2) Submitter means any person or entity who provides business 
information, directly or indirectly, to the Postal Service. The term 
includes, but is not limited to, corporations, state governments, and 
foreign governments.
    (b) Notice to submitters. (1) The custodian shall, to the extent 
permitted by law, provide a submitter with prompt written notice of a 
Freedom of Information Act request for the submitter's business 
information whenever required under paragraph (c) of this section, 
except as provided in paragraph (d) of this section, in order to afford 
the submitter an opportunity to object to disclosure pursuant to 
paragraph (f) of this section. Such written notice shall either describe 
the exact nature of the business information requested or provide copies 
of the records or portions of records containing the business 
information. In the case of an administrative appeal, the General 
Counsel shall be responsible for providing such notification as may be 
appropriate under this section.
    (2) When notice is given to a submitter under paragraph (b)(1) of 
this section, the requester also shall be notified that notice and an 
opportunity

[[Page 122]]

to object are being provided to the submitter pursuant to this section.
    (c) When notice is required. Notice shall be given to a submitter 
whenever:
    (1) The submitter has in good faith designated the information as 
information deemed protected from disclosure under Exemption 4, in 
accordance with the procedure described in paragraph (e) of this 
section; or
    (2) In the opinion of the custodian, or of the General Counsel in 
the case of an administrative appeal, it is likely that disclosure of 
the information would result in competitive harm to the submitter.
    (d) Exceptions to notice requirements. The notice requirements of 
paragraph (b) of this section shall not apply if:
    (1) The Postal Service determines without reference to the submitter 
that the information will not be disclosed;
    (2) The information lawfully has been published or has been 
officially made available to the public;
    (3) Disclosure of the information is required by law (other than the 
Freedom of Information Act, 5 U.S.C. 552); or
    (4) Disclosure of the particular kind of information is required by 
a Postal Service regulation, except that, in such case, advance written 
notice of a decision to disclose shall be provided to the submitter if 
the submitter had provided written justification for protection of the 
information under Exemption 4 at the time of submission or a reasonable 
time thereafter.
    (e) Procedure for designating business information at the time of 
its submission. (1) Submitters of business information shall use good-
faith efforts to designate, by appropriate markings, either at the time 
of submission or at a reasonable time thereafter, those portions of 
their submissions which they deem to be protected from disclosure under 
Exemption 4. Each record, or portion thereof, to be so designated, shall 
be clearly marked with a suitable legend such as Privileged Business 
Information--Do Not Release. When the designated records contain some 
information for which an exemption is not claimed, the submitter shall 
clearly indicate the portions for which protection is sought.
    (2) At the time a designation is made pursuant to paragraph (e)(1) 
of this section, the submitter shall furnish the Postal Service with the 
name, title, address and telephone number of the person or persons to be 
contacted for the purpose of the notification described in paragraph (b) 
of this section.
    (3) Submitters who provide to a postal facility business information 
on a recurring basis and in substantially identical form may use the 
following simplified process: The first submission will provide in full 
the information required in paragraphs (e)(1) and (2) of this section; 
shall identify the type of information, e.g., PS Form 3602, to which it 
is intended to apply; and shall state that it is intended to serve as a 
designation for all of the information of this type that is submitted to 
the particular facility. Thereafter when providing this type of 
information, the submitter need only mark a submission with a reference 
to the designation, e.g., Privileged: see letter of 4-1-91. By written 
agreement with the head of the facility, even this marking may be 
dispensed with if it is not necessary to alert postal employees at that 
facility of the claim of exemption.
    (4) A designation made pursuant to paragraph (e) of this section 
shall be deemed to have expired ten years after the date the records 
were submitted unless the submitter requests, and provides reasonable 
justification for, a designation period of greater duration.
    (5) The Postal Service will not determine the validity of any 
request for confidential treatment until a request for disclosure of the 
information is received.
    (f) Opportunity to object to disclosure. Through the notice 
described in paragraph (b) of this section, the submitter shall be 
afforded a reasonable period of time within which to provide the Postal 
Service with a detailed written statement of any objection to 
disclosure. Such statement shall specify all grounds for withholding any 
of the information under any exemption of the Freedom of Information Act 
and, in the case of Exemption 4, shall demonstrate why the information 
is contended to be a trade secret or commercial or financial information 
that is privileged or confidential. Whenever possible, the

[[Page 123]]

submitter's claim of confidentiality should be supported by a statement 
or certification by an officer or authorized representative of the 
submitter that the information in question is in fact confidential, has 
not been disclosed to the public by the submitter, and is not routinely 
available to the public from other sources. Information provided by a 
submitter pursuant to this paragraph may itself be subject to disclosure 
under the FOIA.
    (g) Determination that confidential treatment is warranted. If the 
custodian determines that confidential treatment is warranted for any 
part of the requested records, he shall inform the requester in writing 
in accordance with the procedures set out in Sec. 265.7(d) of this 
chapter, and shall advise the requester of the right to appeal. A copy 
of the letter of denial shall also be provided to the submitter of the 
records in any case in which the submitter had been notified of the 
request pursuant to paragraph (c) of this section.
    (h) Notice of intent to disclose. The custodian, in the case of an 
initial request, or the General Counsel, in the case of an appeal, shall 
consider carefully a submitter's objections and specific grounds for 
nondisclosure prior to determining whether to disclose business 
information. In the event of a decision to disclose business information 
over the objection of the submitter, the submitter shall be furnished a 
written notice which shall include:
    (1) A description of the business information to be disclosed;
    (2) A statement of the reasons for which the submitter's disclosure 
objections were not sustained; and
    (3) The specific date upon which disclosure will occur. Such notice 
of intent to disclose shall be forwarded to the submitter a reasonable 
number of days prior to the specified disclosure date and the requester 
shall be notified likewise.
    (i) Notice of FOIA lawsuit. Whenever a requester brings suit seeking 
to compel disclosure of business information, the General Counsel shall 
promptly notify the submitter.

[56 FR 56934, Nov. 7, 1991]



Sec. 265.9  Schedule of fees.

    (a) Policy. The purpose of this section is to establish fair and 
equitable fees to permit the furnishing of records to members of the 
public while recovering the full allowable direct costs incurred by the 
Postal Service. The Postal Service will use the most efficient and least 
costly methods available to it when complying with requests for records.
    (b) Standard rates--(1) Record retrieval. Searches may be done 
manually or by computer using existing programming.
    (i) Manual search. The fee for a manual search is $32 per hour 
(fractions of an hour are rounded to the nearest half hour).
    (ii) Computer search. The fee for retrieving data by computer is the 
actual direct cost of the retrieval, including computer search time, and 
personnel cost in effect at the time that the retrieval services are 
performed. The fees are subject to periodic revision. A copy of the fees 
are included within the public index. (See appendix A.)
    (2) Duplication. (i) Except where otherwise specifically provided in 
postal regulations, the fee for duplicating any record or publication is 
$.15 per page.
    (ii) The Postal Service may at its discretion make coin-operated 
copy machines available at any location or otherwise give the requester 
the opportunity to make copies of Postal Service records at his own 
expense. Unless authorized by the Records Office, however, no off-site 
copying shall be permitted of records which, if lost, could not be 
replaced without inconvenience to the Postal Service.
    (iii) The Postal Service will normally furnish only one copy of any 
record. If duplicate copies are furnished at the request of the 
requester, the $.15 per-page fee shall be charged for each copy of each 
duplicate page without regard to whether the requester is eligible for 
free copies pursuant to paragraph (c) or (g) of this section. At his or 
her discretion, when it is reasonably necessary because of a lack of 
adequate copying facilities or other circumstances, the custodian may 
make the requested record available to the requester for inspection 
under reasonable conditions and need not furnish a copy thereof.

[[Page 124]]

    (3) Review. The fee for reviewing records located in response to a 
commercial use request is $32 per hour (fractions of an hour are rounded 
to the nearest half hour). Only requesters who are seeking documents for 
commercial use may be charged for review. ``Review'' is defined in 
paragraph (h)(4) of this section; ``commercial use'' is defined in 
paragraph (h)(5) of this section.
    (4) Micrographics. Paragraphs (b) (1), (2) and (3) of this section 
also apply to information stored within micrographic systems.
    (c) Four categories of fees to be charged. For the purpose of 
assessing fees under this section, a requester shall be classified into 
one of four categories: commercial use requesters; educational and 
noncommercial scientific institutions; representatives of the news 
media; and all other requesters. Requesters in each category must 
reasonably describe the records sought. Fees shall be charged requesters 
in each category in accordance with the following.
    (1) Commercial use requesters. Fees shall be charged to recover the 
full direct costs of search, review and duplication in accordance with 
the rates prescribed in paragraphs (b) (1) through (3) of this section, 
subject only to the general waiver set out in paragraph (g)(1) of this 
section. The term ``commercial use request'' is defined in paragraph 
(h)(5).
    (2) Educational and noncommercial scientific institutions. Fees 
shall be charged only for duplication in accordance with paragraph 
(b)(2) of this section, except that the first 100 pages furnished in 
response to a particular request shall be furnished without charge. (See 
also the general waiver provision in paragraph (g)(1) of this section.) 
To be eligible for the reduction of fees applicable to this category, 
the requester must show that the request is being made as authorized by 
and under the auspices of a qualifying institution and that the records 
are not sought for a commercial use, but are sought in furtherance of 
scholarly or scientific research. These institutions are defined in 
paragraphs (h)(6) and (h)(7) of this section, respectively.
    (3) Representatives of the news media. Fees shall be charged only 
for duplication in accordance with paragraph (b)(2) of this section, 
except that the first 100 pages furnished in response to a particular 
request shall be furnished without charge. (See also the general waiver 
provision in paragraph (g)(1) of this section.) To be eligible for the 
reduction of fees applicable to this category, the requester must meet 
the criteria in paragraph (h)(8) of this section, and the request must 
not be made for a commercial use.
    (4) All other requesters. Fees shall be charged for search and 
duplication in accordance with paragraphs (b) (1) and (2) of this 
section, except that the first 100 pages of duplication and the first 
two hours of search time shall be furnished without charge. (See also 
paragraphs (g)(1) and (g)(2) of this section.)
    (d) Aggregating requests. When the custodian reasonably believes 
that a requester is attempting to break a request down into a series of 
requests in order to evade the assessment of fees, the custodian may 
aggregate the requests and charge accordingly. The custodian shall not 
aggregate multiple requests when the requests pertain to unrelated 
subject matter. Requests made by more than one requester may be 
aggregated only when the custodian has a concrete basis on which to 
conclude that the requesters are acting in concert specifically to avoid 
payment of fees.
    (e) Other costs--(1) Publications. Publications and other printed 
materials may, to the extent that they are available in sufficient 
quantity, be made available at the established price, if any, or at cost 
to the Postal Service. Fees established for printed materials pursuant 
to laws, other than the Freedom of Information Act, that specifically 
provide for the setting of fees for particular types of records are not 
subject to waiver or reduction under this section.
    (2) Other charges. When a response to a request requires services or 
materials other than the common one listed in paragraph (b) of this 
section, the direct cost of such services or materials to the Postal 
Service may be charged, but only if the requester has been notified of 
the nature and estimated amount of such cost before it is incurred.

[[Page 125]]

    (f) Advance notice and payment of fees--(1) Liability and payment. 
The requester is responsible, subject to limitations on liability 
provided by this section, for the payment of all fees for services 
resulting from his request, even if responsive records are not located 
or are determined to be exempt from disclosure. Checks in payment of 
fees should be made payable to ``U.S. Postal Service.''
    (2) Advance notice. To protect members of the public from 
unwittingly incurring liability for unexpectedly large fees, the 
custodian shall notify the requester if the estimated cost is expected 
to exceed $25. When search fees are expected to exceed $25, but it 
cannot be determined in advance whether any records will be located or 
made available, the custodian shall notify the requester of the 
estimated amount and of the responsibility to pay search fees even 
through records are not located or are determined to be exempt from 
disclosure. The notification shall be transmitted as soon as possible 
after physical receipt of the request, giving the best estimate then 
available. It shall include a brief explanatory statement of the nature 
and extent of the services upon which the estimate is based and shall 
offer the requester an opportunity to confer with the custodian or his 
representative in an attempt to reformulate the request so as to meet 
his needs at lower cost. The time period for responding to the request 
shall not run during the interval between the date such notification is 
transmitted and the date of receipt of the requester's agreement to bear 
the cost. No notification is required if the request specifically states 
that whatever cost is involved is acceptable or is acceptable up to a 
specified amount that covers estimated costs or if payment of all fees 
in excess of $25 has been waived.
    (3) Advance payment. Advance payment of fees shall not be required, 
except: (i) When it is estimated that the fees chargeable under this 
section are likely to exceed $250. If the requester has a history of 
prompt payment of FOIA fees, the custodian shall notify the requester of 
the likely cost and obtain satisfactory assurance of full payment before 
commencing work on the request. If the requester has no history of 
payment, the custodian may require an advance payment of an amount up to 
the full estimated charge before commencing work on the request.
    (ii) When a requester has previously failed to pay a fee in a timely 
fashion (i.e., within 30 days of the date of the billing), the requester 
shall be required to pay the full amount owed, and to make an advance 
payment of the full amount of the estimated fee before processing will 
begin on a new or pending request.
    (iii) When advance payment is required under paragraphs (f)(3)(i) or 
(ii) of this section, the time periods for responding to the initial 
request or to an appeal shall not run during the interval between the 
date that notice of the requirement is transmitted and the date that the 
required payment or assurance of payment is received.
    (g) Restrictions on assessing fees--(1) General waiver. No fees 
shall be charged to any requester if they would amount, in the 
aggregate, for a request or a series of related requests, to $10 or 
less. When the fees for the first 100 pages or the first two hours of 
search time are excludable under paragraph (c) of this section, 
additional costs will not be assessed unless they exceed $10.
    (2) Certain fees not charged--(i) All requests except those for 
commercial use. Fees shall not be charged for the first 100 pages of 
duplication and the first two hours of search time except when the 
request is for a commercial use as defined in paragraph (h)(5) of this 
section. When search is done by computer, the fees to be excluded for 
the first two hours of search time shall be determined on the basis of 
fee for computer searches then in effect. (See appendix A.) Assessment 
of search fees will begin at the point when the cost of the search 
(including the cost of personnel and computer processing time) reaches 
the equivalent dollar amount of personnel fees for 2 hours.
    (ii) Requests of educational and noncommercial scientific 
institutions, and representatives of the news media. Fees shall not be 
charged for time spent searching for records in response to requests 
submitted by educational and noncommercial scientific institutions or 
representatives of the news media.

[[Page 126]]

    (3) Public interest waiver. The custodian shall waive a fee, in 
whole or in part, and any requirement for advance payment of such a fee, 
when he determines that furnishing the records is deemed to be in the 
public interest because it is likely to contribute significantly to 
public understanding of the operations or activities of the federal 
government, and is not primarily in the commercial interest of the 
requester. This waiver may be granted notwithstanding the applicability 
of other fee reductions prescribed by this section for requesters in 
certain categories. In determining whether disclosure is in the public 
interest for the purposes of this waiver, the following factors may be 
considered:
    (i) The relation of the records to the operations or activities of 
the Postal Services;
    (ii) The informative value of the information to be disclosed;
    (iii) Any contribution to an understanding of the subject by the 
general public likely to result from disclosure;
    (iv) The significance of that contribution to the public 
understanding of the subject;
    (v) The nature of the requester's personal interest, if any, in the 
disclosure requested; and
    (vi) Whether the disclosure would be primarily in the requester's 
commercial interest.
    (4) Waiver by officer. Any officer of the Postal Service, as defined 
in Sec. 221.8, his designee, or the Manager, Records Office may waive 
in whole or in part any fee required by this part or the requirement for 
advance payment of any fee.
    (5) Fee for other services. Waivers do not apply for fees for 
address correction services performed in accordance with section R900 of 
the Domestic Mail Manual.
    (h) Definitions. As used in this section, the term:
    (1) Direct costs include expenditures actually incurred in searching 
for and duplicating (and in the case of commercial requesters, 
reviewing) documents to respond to a FOIA request. Direct costs include, 
for example, the salary of the employee performing work (the basic rate 
of pay for the employee plus a factor to cover benefits) and the cost of 
operating duplicating machinery. Not included in direct costs are 
overhead expenses such as costs of space, and heating or lighting the 
facility in which the records are stored.
    (2) Search includes all time spent looking for material that is 
responsive to a request, including page-by-page or line-by-line 
identification of material within documents. Searches may be done 
manually or by computer using existing programming. A line-by-line 
search will be conducted only when necessary to determine whether the 
document contains responsive information and will not be employed in 
those instances in which duplication of the entire document would be the 
less expensive and quicker method of complying with a request. Search 
does not include review of material to determine whether the material is 
exempt from disclosure (see paragraph (h)(4) of this section).
    (3) Duplication refers to the process of making a copy of a document 
necessary to respond to a FOIA request. Such copies can take the form of 
paper copy, microform, audio-visual materials, or machine readable 
documentation (e.g., magnetic tape or disk), among others. The copy 
provided must be in a form that is reasonably usable by requesters.
    (4) Review refers to the process of examining documents located in 
response to a request that is for a commercial use (see paragraph (h)(5) 
of this section) to determine whether any portion of any document 
located is exempt from mandatory disclosure. It also includes processing 
any documents for disclosure, e.g., doing all that is necessary to 
excise them and otherwise prepare them for release. Review does not 
include time spent resolving general legal or policy issues regarding 
the application of exemptions. Charges may be assessed only for the 
initial review, i.e., the first time the applicability of a specific 
exemption is analyzed. Costs for a subsequent review are properly 
assessable only when a record or portion of a record withheld solely on 
the basis of an exemption later determined not to apply must be reviewed 
again to determine the applicability of other exemptions not previously 
considered.

[[Page 127]]

    (5) Commercial use request refers to a request from or on behalf of 
one who seeks information for a use or purpose that furthers the 
commercial, trade, or profit interests of the requester or the person on 
whose behalf the request is made. In determining whether a request 
properly belongs in this category, the Postal Service will look to the 
use to which the requester will put the documents requested. If the use 
is not clear from the request itself, or if there is reasonable cause to 
doubt the requester's stated use, the custodian shall seek additional 
clarification from the requester before assigning the request to this 
category.
    (6) Educational institution refers to a pre-school, a public or 
private elementary or secondary school, an institution of graduate 
higher education, an institution of undergraduate higher education, an 
institution of professional education, and an institution of vocational 
education, which operates a program or programs of scholarly research.
    (7) Noncommercial scientific institution refers to an institution 
that is not operated on a ``commercial'' basis as that term is defined 
in paragraph (h)(5) of this section, and which is operated solely for 
the purpose of conducting scientific research the results of which are 
not intended to promote any particular product or industry.
    (8) Representative of the news media refers to any person actively 
gathering news for an entity that is organized and operated to publish 
or broadcast news to the public. The term ``news'' means information 
that is about current events or that would be of current interest to the 
public. Requests by news organizations for information that will be used 
for the furtherance of the organization's commercial interests, rather 
than for the dissemination of news to the public, shall be considered 
commercial use requests. Examples of news media entities include 
television or radio stations broadcasting to the public at large, and 
publishers of periodicals (but only in those instances when they can 
qualify as disseminators of ``news'') who make their products available 
for purchase or subscription by the general public. These examples are 
not intended to be all-inclusive. A ``freelance'' journalist will be 
regarded as a representative of the news media if he can demonstrate a 
solid basis for expecting publication through a news organization, even 
though not actually employed by it. This may be demonstrated either by a 
publication contract with the news organization or by the past 
publication record of the requester.

[52 FR 13668, Apr. 24, 1987, as amended at 53 FR 49983, Dec. 13, 1988; 
54 FR 7417, Feb. 21, 1989. Redesignated at 56 FR 56934, Nov. 7, 1991, 
and amended at 56 FR 57805, Nov. 14, 1991; 59 FR 11550, Mar. 11, 1994; 
60 FR 57345, Nov. 15, 1995; 64 FR 41290, July 30, 1999; 68 FR 56559, 
Oct. 1, 2003; 69 FR 34935, June 23, 2004]



Sec. 265.10  Annual report.

    A report concerning the administration of the Freedom of Information 
Act and this part will be submitted to the Attorney General of the 
United States on or before February 1 of each year, with the first such 
report, for fiscal year 1998, due on or before February 1, 1999. Data 
for the report will be collected on the basis of fiscal year that begins 
on October 1 of each year. The Attorney General, in consultation with 
the Director, Office of Management and Budget, will prescribe the form 
and content of the report. The report will be made available to the 
public at the headquarters Library and on the Postal Service's world 
wide web site at http://www.usps.com/foia.

[63 FR 6483, Feb. 9, 1998, as amended at 68 FR 56559, Oct. 1, 2003]



Sec. 265.11  Compliance with subpoena duces tecum, court orders, and 
summonses.

    (a) Compliance with subpoena duces tecum. (1) Except as required by 
Part 262, produce other records of the Postal Service only in compliance 
with a subpoena duces tecum or appropriate court order.
    (2) Time, leave, and payroll records of postal employees are subject 
to production when a subpoena duces tecum or appropriate court order has 
been properly served. The custodian of the records may designate a 
postal employee to present the records. The presentation by a designee 
rather than the employee named in the subpoena or

[[Page 128]]

court order must meet with the approval of the attorneys for each side. 
In addition, such records may be released if authorized in writing by 
the employee.
    (3) If the subpoena involves a job-connected injury, the records are 
under the exclusive jurisdiction of the Office of Workers' Compensation 
Programs, Department of Labor. Requests for authorization to produce 
these records shall be addressed to: Office of Workers' Compensation 
Programs, U.S. Department of Labor, Washington, DC 20210-0001. Also 
notify the attorney responsible for the issuance of the subpoena or 
court order.
    (4) Employee medical records are primarily under the exclusive 
jurisdiction of the U.S. Civil Service Commission. The Commission has 
delegated authority to the Postal Service and to the Commission's 
Regional Directors to release medical information, in response to proper 
requests and upon competent medical advice, in accordance with the 
following criteria:
    (i) Except in response to a subpoena or court order, do not release 
any medical information about an employee to any non-Federal entity or 
individual without authorization from the employee.
    (ii) With authorization from the employee, the Area, Information 
Systems Service Center, or Chief Field Counsel will respond as follows 
to a request from a non-Federal source for medical information:
    (a) If, in the opinion of a Federal medical officer, the medical 
information indicates the existence of a malignancy, a mental condition, 
or other condition about which a prudent physician would hesitate to 
inform a person suffering from such a condition as to its exact nature 
and probable outcome, do not release the medical information to the 
employee or to any individual designated by him, except to a physician, 
designated by the employee in writing. If a subpoena or court order was 
issued, the responding official shall caution the moving party as to the 
possible dangers involved if the medical information is divulged.
    (b) If, in the opinion of a Federal medical officer, the medical 
information does not indicate the presence of any condition which would 
cause a prudent physician to hesitate to inform a person of the exact 
nature and probable outcome of his condition, release it in response to 
a subpoena or court order, or to the employee or to any person, firm, or 
organization he authorizes in writing.
    (c) If a Federal medical officer is not available, refer the request 
to the Civil Service Commission regional office with the medical 
certificates or other medical reports concerned.
    (5) Do not release any records containing information as to the 
employee's security or loyalty.
    (6) Honor subpoenas or court orders only when disclosure is 
authorized.
    (7) When authorized to comply with a subpoena duces tecum, do not 
leave the original records with the court.
    (b) [Reserved]

[40 FR 7331, Feb. 19, 1975, as amended at 51 FR 26386, July 23, 1986; 56 
FR 55824, Oct. 30, 1991. Redesignated at 56 FR 56934, Nov. 7, 1991; 60 
FR 36712, July 18, 1995; 60 FR 57345, Nov. 15, 1995]



Sec. 265.12  Demands for testimony or records in certain legal proceedings.

    (a) Scope and applicability of this section. (1) This section 
establishes procedures to be followed if the Postal Service or any 
Postal Service employee receives a demand for testimony concerning or 
disclosure of:
    (i) Records contained in the files of the Postal Service;
    (ii) Information relating to records contained in the files of the 
Postal Service; or
    (iii) Information or records acquired or produced by the employee in 
the course of his or her official duties or because of the employee's 
official status.
    (2) This section does not create any right or benefit, substantive 
or procedural, enforceable by any person against the Postal Service.
    (3) This section does not apply to any of the following:
    (i) Any legal proceeding in which the United States is a party;
    (ii) A demand for testimony or records made by either House of 
Congress or, to the extent of matter within

[[Page 129]]

its jurisdiction, any committee or subcommittee of Congress;
    (iii) An appearance by an employee in his or her private capacity in 
a legal proceeding in which the employee's testimony does not relate to 
the employee's official duties or the functions of the Postal Service; 
or
    (iv) A demand for testimony or records submitted to the Postal 
Inspection Service (a demand for Inspection Service records or testimony 
will be handled in accordance with rules in Sec. 265.11).
    (4) This section does not exempt a request from applicable 
confidentiality requirements, including the requirements of the Privacy 
Act. 5 U.S.C. 552a.
    (b) Definitions. The following definitions apply to this section:
    (1) Adjudicative authority includes, but is not limited to, the 
following:
    (i) A court of law or other judicial forums, whether local, state, 
or federal; and
    (ii) Mediation, arbitration, or other forums for dispute resolution.
    (2) Demand includes a subpoena, subpoena duces tecum, request, 
order, or other notice for testimony or records arising in a legal 
proceeding.
    (3) Employee means a current employee or official of the Postal 
Service.
    (4) General Counsel means the General Counsel of the United States 
Postal Service, the Chief Field Counsels, or an employee of the Postal 
Service acting for the General Counsel under a delegation of authority.
    (5) Legal proceeding means:
    (i) A proceeding before an adjudicative authority;
    (ii) A legislative proceeding, except for a proceeding before either 
House of Congress or before any committee or subcommittee of Congress; 
or
    (iii) An administrative proceeding.
    (6) Private litigation means a legal proceeding to which the United 
States is not a party.
    (7) Records custodian means the employee who maintains a requested 
record. For assistance in identifying the custodian of a specific 
record, contact the Manager, Records Office, U.S. Postal Service, 475 
L'Enfant Plaza, SW., Washington, DC 20260, telephone (202) 268-2608.
    (8) Testimony means statements made in connection with a legal 
proceeding, including but not limited to statements in court or other 
forums, depositions, declarations, affidavits, or responses to 
interrogatories.
    (9) United States means the federal government of the United States 
and any of its agencies, establishments, or instrumentalities, including 
the United States Postal Service.
    (c) Requirements for submitting a demand for testimony or records. 
(1) Ordinarily, a party seeking to obtain records from the Postal 
Service should submit a request in accordance with the provisions of the 
Freedom of Information Act (FOIA), 5 U.S.C. 552, and the Postal 
Service's regulations implementing the FOIA at 39 CFR 265.1 through 
265.9 or the Privacy Act, 5 U.S.C. 552a and the Postal Service's 
regulations implementing the Privacy Act at 39 CFR 266.1 through 266.9.
    (2) A demand for testimony or records issued pursuant to the rules 
governing the legal proceeding in which the demand arises must:
    (i) Be in writing;
    (ii) Identify the requested record and/or state the nature of the 
requested testimony, describe the relevance of the record or testimony 
to the proceeding, and why the information sought is unavailable by any 
other means; and
    (iii) If testimony is requested, contain a summary of the requested 
testimony and a showing that no document could be provided and used in 
lieu of testimony.
    (3) Procedures for service of demand are made as follows:
    (i) Service of a demand for testimony or records (including, but not 
limited to, personnel or payroll information) relating to a current or 
former employee must be made in accordance with the applicable rules of 
civil procedure on the employee whose testimony is requested or the 
records custodian. The requester also shall deliver a copy of the demand 
to the District Manager, Customer Services and Sales, for all current 
employees whose work location is within the geographic boundaries of the 
manager's district, and any former employee whose last position was 
within the geographic boundaries of the

[[Page 130]]

manager's district. A demand for testimony or records must be received 
by the employee whose testimony is requested and the appropriate 
District Manager, Customer Services and Sales, at least ten (10) working 
days before the date the testimony or records are needed.
    (ii) Service of a demand for testimony or records other than those 
described in paragraph (c)(3)(i) of this section must be made in 
accordance with the applicable rules of civil procedure on the employee 
whose testimony is requested or the records custodian. The requester 
also shall deliver a copy of the demand to the General Counsel, United 
States Postal Service, 475 L'Enfant Plaza, SW, Washington DC 20260-1100, 
or the Chief Field Counsel. A demand for testimony or records must be 
received by the employee and the General Counsel or Chief Field Counsel 
at least ten (10) working days before the date testimony or records are 
needed.
    (d) Procedures followed in response to a demand for testimony or 
records. (1) After an employee receives a demand for testimony or 
records, the employee shall immediately notify the General Counsel or 
Chief Field Counsel and request instructions.
    (2) An employee may not give testimony or produce records without 
the prior authorization of the General Counsel.
    (3)(i) The General Counsel may allow an employee to testify or 
produce records if the General Counsel determines that granting 
permission:
    (A) Would be appropriate under the rules of procedure governing the 
matter in which the demand arises and other applicable laws, privileges, 
rules, authority, and regulations; and
    (B) Would not be contrary to the interest of the United States. The 
interest of the United States includes, but is not limited to, 
furthering a public interest of the Postal Service and protecting the 
human and financial resources of the United States.
    (ii) An employee's testimony shall be limited to the information set 
forth in the statement described at paragraph (c)(2) of this section or 
to such portions thereof as the General Counsel determines are not 
subject to objection. An employee's testimony shall be limited to facts 
within the personal knowledge of the employee. A Postal Service employee 
authorized to give testimony under this rule is prohibited from giving 
expert or opinion testimony, answering hypothetical or speculative 
questions, or giving testimony with respect to privileged subject 
matter. The General Counsel may waive the prohibition of expert 
testimony under this paragraph only upon application and showing of 
exceptional circumstances and the request substantially meets the 
requirements of this section.
    (4) The General Counsel may establish conditions under which the 
employee may testify. If the General Counsel authorizes the testimony of 
an employee, the party seeking testimony shall make arrangements for the 
taking of testimony by those methods that, in the General Counsel's 
view, will least disrupt the employee's official duties. For example, at 
the General Counsel's discretion, testimony may be provided by 
affidavits, answers to interrogatories, written depositions, or 
depositions transcribed, recorded, or preserved by any other means 
allowable by law.
    (5) If a response to a demand for testimony or records is required 
before the General Counsel determines whether to allow an employee to 
testify, the employee or counsel for the employee shall do the 
following:
    (i) Inform the court or other authority of the regulations in this 
section; and
    (ii) Request that the demand be stayed pending the employee's 
receipt of the General Counsel's instructions.
    (6) If the court or other authority declines the request for a stay, 
or rules that the employee must comply with the demand regardless of the 
General Counsel's instructions, the employee or counsel for the employee 
shall respectfully decline to comply with the demand, citing United 
States ex rel. Touhy v. Ragen, 340 U.S. 462 (1951), and the regulations 
in this section.
    (7) The General Counsel may request the assistance of the Department 
of Justice or a U.S. Attorney where necessary to represent the interests 
of the Postal Service and the employee.

[[Page 131]]

    (8) At his or her discretion, the General Counsel may grant a waiver 
of any procedure described by this section, where waiver is considered 
necessary to promote a significant interest of the United States or for 
other good cause.
    (9) If it otherwise is permissible, the records custodian may 
authenticate, upon the request of the party seeking disclosure, copies 
of the records. No employee of the Postal Service shall respond in 
strict compliance with the terms of a subpoena duces tecum unless 
specifically authorized by the General Counsel.
    (e) Postal Service employees as expert witnesses. No Postal Service 
employee may testify as an expert or opinion witness, with regard to any 
matter arising out of the employee's official duties or the functions of 
the Postal Service, for any party other than the United States, except 
that in extraordinary circumstances, the General Counsel may approve 
such expert testimony in private litigation. A Postal Service employee 
may not testify as such an expert witness without the express 
authorization of the General Counsel. A litigant must obtain 
authorization of the General Counsel before designating a Postal Service 
employee as an expert witness.
    (f) Substitution of Postal Service employees. Although a demand for 
testimony may be directed to a named Postal Service employee, the 
General Counsel, where appropriate, may designate another Postal Service 
employee to give testimony. Upon request and for good cause shown (for 
example, when a particular Postal Service employee has direct knowledge 
of a material fact not known to the substitute employee designated by 
the Postal Service), the General Counsel may permit testimony by a named 
Postal Service employee.
    (g) Fees and costs. (1) The Postal Service may charge fees, not to 
exceed actual costs, to private litigants seeking testimony or records 
by request or demand. The fees, which are to be calculated to reimburse 
fully the Postal Service for processing the demand and providing the 
witness or records, may include, among others:
    (i) Costs of time spent by employees, including attorneys, of the 
Postal Service to process and respond to the demand;
    (ii) Costs of attendance of the employee and agency attorney at any 
deposition, hearing, or trial;
    (iii) Travel costs of the employee and agency attorney;
    (iv) Costs of materials and equipment used to search for, process, 
and make available information.
    (2) All costs for employee time shall be calculated on the hourly 
pay of the employee (including all pay, allowance, and benefits) and 
shall include the hourly fee for each hour, or portion of each hour, 
when the employee is in travel, in attendance at a deposition, hearing, 
or trial, or is processing or responding to a request or demand.
    (3) At the discretion of the Postal Service, where appropriate, 
costs may be estimated and collected before testimony is given.
    (h) Acceptance of service. This section does not in any way abrogate 
or modify the requirements of the Federal Rules of Civil Procedure (28 
U.S.C. Appendix) regarding service of process.

[60 FR 17224, Apr. 5, 1995, as amended at 60 FR 57345, Nov. 15, 1995; 64 
FR 41291, July 30, 1999; 68 FR 56559, Oct. 1, 2003]



Sec. 265.13  Compliance with subpoenas, summonses, and court orders by 
postal employees within the Inspection Service where the Postal Service,

the United States, or any other federal agency is not a party.

    (a) Applicability of this section. The rules in this section apply 
to all federal, state, and local court proceedings, as well as 
administrative and legislative proceedings, other than:
    (1) Proceedings where the United States, the Postal Service, or any 
other federal agency is a party;
    (2) Congressional requests or subpoenas for testimony or documents;
    (3) Consultative services and technical assistance rendered by the 
Inspection Service in executing its normal functions;
    (4) Employees serving as expert witnesses in connection with 
professional and consultative services under 5 CFR part 7001, provided 
that employees acting in this capacity must state for the record that 
their testimony reflects their personal opinions and should not

[[Page 132]]

be viewed as the official position of the Postal Service;
    (5) Employees making appearances in their private capacities in 
proceedings that do not relate to the Postal Service (e.g., cases 
arising from traffic accidents, domestic relations) and do not involve 
professional or consultative services; and
    (6) When in the opinion of the Counsel or the Counsel's designee, 
Office of the Chief Postal Inspector, it has been determined that it is 
in the best interest of the Inspection Service or in the public 
interest.
    (b) Purpose and scope. The provisions in this section limit the 
participation of postal employees within or assigned to the Inspection 
Service, in private litigation, and other proceedings in which the 
Postal Service, the United States, or any other federal agency is not a 
party. The rules are intended to promote the careful supervision of 
Inspection Service resources and to reduce the risk of inappropriate 
disclosures that might affect postal operations.
    (c) Definitions. For the purposes of this section:
    (1) Authorizing official is the person responsible for giving the 
authorization for release of documents or permission to testify.
    (2) Case or matter means any civil proceeding before a court of law, 
administrative board, hearing officer, or other body conducting a 
judicial or administrative proceeding in which the United States, the 
Postal Service, or another federal agency is not a named party.
    (3) Demand includes any request, order, or subpoena for testimony or 
the production of documents.
    (4) Document means all records, papers, or official files, 
including, but not limited to, official letters, telegrams, memoranda, 
reports, studies, calendar and diary entries, graphs, notes, charts, 
tabulations, data analyses, statistical or information accumulations, 
records of meetings and conversations, film impressions, magnetic tapes, 
computer discs, and sound or mechanical reproductions;
    (5) Employee or Inspection Service employee, for the purpose of this 
section only, refers to a Postal Service employee currently or formerly 
assigned to the Postal Inspection Service, student interns, contractors 
and employees of contractors who have access to Inspection Service 
information and records.
    (6) Inspection Service means the organizational unit within the 
Postal Service as outlined in Sec. 224.3 of this chapter.
    (7) Inspection Service Legal Counsel is an attorney authorized by 
the Chief Postal Inspector to give legal advice to members of the 
Inspection Service.
    (8) Inspection Service Manual is the directive containing the 
standard operating procedures for Postal Inspectors and certain 
Inspection Service employees.
    (9) Nonpublic includes any material or information not subject to 
mandatory public disclosure under Sec. 265.6(b).
    (10) Official case file means official documents that relate to a 
particular case or investigation. These documents may be kept at any 
location and do not necessarily have to be in the same location in order 
to constitute the file.
    (11) Postal Inspector reports include all written reports, letters, 
recordings, or other memorializations made in conjunction with the 
duties of a Postal Inspector.
    (12) Testify or testimony includes both in-person oral statements 
before any body conducting a judicial or administrative proceeding and 
statements made in depositions, answers to interrogatories, 
declarations, affidavits, or other similar documents.
    (13) Third-party action means an action, judicial or administrative, 
in which the United States, the Postal Service, or any other federal 
agency is not a named party.
    (d) Policy. (1) No current or former employee within the Inspection 
Service may testify or produce documents concerning information acquired 
in the course of employment or as a result of his or her relationship 
with the Postal Service in any proceeding to which this section applies 
(see paragraph (a) of this section), unless authorized to do so. 
Authorization will be provided by:
    (i) The Postal Inspector in Charge of the affected field Division, 
or designee, for Division personnel and records, after that official has 
determined through consultation with Inspection

[[Page 133]]

Service legal counsel that no legal objection, privilege, or exemption 
applies to such testimony or production of documents.
    (ii) The Chief Postal Inspector or designee for Headquarters 
employees and records, after that official has determined through 
consultation with Inspection Service legal counsel, that no legal 
objection, privilege, or exemption applies to such testimony or 
production of documents.
    (2) Consideration shall be given to:
    (i) Statutory restrictions, as well as any legal objection, 
exemption, or privilege that may apply;
    (ii) Relevant legal standards for disclosure of nonpublic 
information and documents;
    (iii) Inspection Service rules and regulations and the public 
interest;
    (iv) Conservation of employee time; and
    (v) Prevention of the expenditure of Postal Service resources for 
private purposes.
    (3) If additional information is necessary before a determination 
can be made, the authorizing official may, in coordination with 
Inspection Service legal counsel, request assistance from the Department 
of Justice.
    (e) Compliance with subpoena duces tecum. (1) Except as required by 
part 262 of this chapter, produce any other record of the Postal Service 
only in compliance with a subpoena duces tecum or appropriate court 
order.
    (2) Do not release any record containing information relating to an 
employee's security or loyalty.
    (3) Honor subpoenas and court orders only when disclosure is 
authorized.
    (4) When authorized to comply with a subpoena duces tecum or court 
order, do not leave the originals with the court.
    (5) Postal Inspector reports are considered to be confidential 
internal documents and shall not be released unless there is specific 
authorization by the Chief Postal Inspector or the Inspector in Charge 
of the affected field Division, after consulting with Inspection Service 
legal counsel.
    (6) The Inspection Service Manual and other operating instructions 
issued to Inspection Service employees are considered to be confidential 
and shall not be released unless there is specific authorization, after 
consultation with Inspection Service legal counsel. If the requested 
information relates to confidential investigative techniques, or release 
of the information would adversely affect the law enforcement mission of 
the Inspection Service, the subpoenaed official, through Inspection 
Service legal counsel, may request an in camera, ex parte conference to 
determine the necessity for the release of the information. The entire 
Manual should not be given to any party.
    (7) Notes, memoranda, reports, transcriptions, whether written or 
recorded and made pursuant to an official investigation conducted by a 
member of the Inspection Service, are the property of the Inspection 
Service and are part of the official case file, whether stored with the 
official file.
    (f) Compliance with summonses and subpoenas ad testificandum. (1) If 
an Inspection Service employee is served with a third-party summons or a 
subpoena requiring an appearance in court, contact should be made with 
Inspection Service legal counsel to determine whether and which 
exemptions or restrictions apply to proposed testimony. Inspection 
Service employees are directed to comply with summonses, subpoenas, and 
court orders, as to appearance, but may not testify without 
authorization.
    (2) Postal Inspector reports or records will not be presented during 
testimony, in either state or federal courts in which the United States, 
the Postal Service, or another federal agency is not a party in 
interest, unless authorized by the Chief Postal Inspector or the Postal 
Inspector in Charge of the affected field Division, who will make the 
decision after consulting with Inspection Service legal counsel. If an 
attempt is made to compel production, through testimony, the employee is 
directed to decline to produce the information or matter and to state 
that it may be exempted and may not be disclosed or produced without the 
specific approval of the Chief Postal Inspector or the Postal Inspector 
in Charge of the affected field Division. The Postal Service will offer 
all possible assistance to the courts, but the question of disclosing 
information for which an exemption may be

[[Page 134]]

claimed is a matter of discretion that rests with the appropriate 
official. Paragraph (e) of this section covers the release of Inspection 
Service documents in cases where the Postal Service or the United States 
is not a party.
    (g) General procedures for obtaining Inspection Service documents 
and testimony from Inspection Service employees. (1) To facilitate the 
orderly response to demands for the testimony of Inspection Service 
employees and production of documents in cases where the United States, 
the Postal Service, or another federal agency is not a party, all 
demands for the production of nonpublic documents or testimony of 
Inspection Service employees concerning matters relating to their 
official duties and not subject to the exemptions set forth in paragraph 
(a) of this section shall be in writing and conform to the requirements 
outlined in paragraphs (g)(2) and (g)(3) of this section.
    (2) Before or simultaneously with service of a demand described in 
paragraph (g)(1) of this section, the requesting party shall serve on 
the Counsel, Office of the Chief Postal Inspector, 475 L'Enfant Plaza 
SW., Washington, DC 20260-2181, an affidavit or declaration containing 
the following information:
    (i) The title of the case and the forum where it will be heard;
    (ii) The party's interest in the case;
    (iii) The reasons for the demand;
    (iv) A showing that the requested information is available, by law, 
to a party outside the Postal Service;
    (v) If testimony is sought, a summary of the anticipated testimony;
    (vi) If testimony is sought, a showing that Inspection Service 
records could not be provided and used in place of the requested 
testimony;
    (vii) The intended use of the documents or testimony; and
    (viii) An affirmative statement that the documents or testimony is 
necessary for defending or prosecuting the case at issue.
    (3) The Counsel, Office of the Chief Postal Inspector, shall act as 
agent for the receipt of legal process for demands for production of 
records or testimony of Inspection Service employees where the United 
States, the Postal Service, or any other federal agency is not a party. 
A subpoena for testimony or for the production of documents from an 
Inspection Service employee concerning official matters shall be served 
in accordance with the applicable rules of civil procedure. A copy of 
the subpoena and affidavit or declaration, if not previously furnished, 
shall also be sent to the Chief Postal Inspector or the appropriate 
Postal Inspector in Charge.
    (4) Any Inspection Service employee who is served with a demand 
shall promptly inform the Chief Postal Inspector, or the appropriate 
Postal Inspector in Charge, of the nature of the documents or testimony 
sought and all relevant facts and circumstances.
    (h) Authorization of testimony or production of documents. (1) The 
Chief Postal Inspector or the Postal Inspector in Charge of the affected 
field Division, after consulting with Inspection Service legal counsel, 
shall determine whether testimony or the production of documents will be 
authorized.
    (2) Before authorizing the requested testimony or the production of 
documents, the Chief Postal Inspector or the Postal Inspector in Charge 
of the affected field Division shall consider the following factors:
    (i) Statutory restrictions, as well as any legal objection, 
exemption, or privilege that may apply;
    (ii) Relevant legal standards for disclosure of nonpublic 
information and documents;
    (iii) Inspection Service rules and regulations and the public 
interest;
    (iv) Conservation of employee time; and
    (v) Prevention of expenditures of government time and resources 
solely for private purposes.
    (3) If, in the opinion of the authorizing official, the documents 
should not be released or testimony should not be furnished, that 
official's decision is final.
    (4) Inspection Service legal counsel may consult or negotiate with 
the party or the party's counsel seeking testimony or documents to 
refine and limit the demand, so that compliance is less burdensome, or 
obtain information necessary to make the determination whether the 
documents or testimony will be authorized. If the party

[[Page 135]]

or party's counsel seeking the documents or testimony fails to cooperate 
in good faith, preventing Inspection Service legal counsel from making 
an informed recommendation to the authorizing official, that failure may 
be presented to the court or other body conducting the proceeding as a 
basis for objection.
    (5) Permission to testify or to release documents in all cases will 
be limited to matters outlined in the affidavit or declaration described 
in paragraph (g)(2) of this section or to such parts as deemed 
appropriate by the authorizing official.
    (6) If the authorizing official allows the release of documents or 
testimony to be given by an employee, arrangements shall be made for the 
taking of testimony or receipt of documents by the least disruptive 
methods to the employee's official duties. Testimony may, for example, 
be provided by affidavits, answers to interrogatories, written 
depositions, or depositions transcribed, recorded, or preserved by any 
other means allowable by law.
    (i) While giving a deposition, the employee may, at the option of 
the authorizing official, be represented by Inspection Service legal 
counsel.
    (ii) While completing affidavits, or other written reports or at any 
time during the process of preparing for testimony or releasing 
documents, the employee may seek the assistance of Inspection Service 
legal counsel.
    (7) Absent written authorization from the authorizing official, the 
employee shall respectfully decline to produce the requested documents, 
testify, or, otherwise, disclose the requested information.
    (8) If the authorization is denied or not received by the return 
date, the employee, together with counsel, where appropriate, shall 
appear at the stated time and place, produce a copy of this section, and 
respectfully decline to testify or produce any document on the basis of 
the regulations in this section.
    (9) The employee shall appear as ordered by the subpoena, summons, 
or other appropriate court order, unless:
    (i) Legal counsel has advised the employee that an appearance is 
inappropriate, as in cases where the subpoena, summons, or other court 
order was not properly issued or served, has been withdrawn, discovery 
has been stayed; or
    (ii) Where the Postal Service will present a legal objection to 
furnishing the requested information or testimony.
    (i) Inspection Service employees as expert or opinion witnesses. No 
Inspection Service employee may testify as an expert or opinion witness, 
with regard to any matter arising out of the employee's duties or 
functions at the Postal Service, for any party other than the United 
States, except that in extraordinary circumstances, the Counsel, Office 
of the Chief Postal Inspector, may approve such testimony in private 
litigation. An Inspection Service employee may not testify as such an 
expert or opinion witness without the express authorization of the 
Counsel, Office of the Chief Postal Inspector. A litigant must first 
obtain authorization of the Counsel, Office of the Chief Postal 
Inspector, before designating an Inspection Service employee as an 
expert or opinion witness.
    (j) Postal liability. This section is intended to provide 
instructions to Inspection Service employees and does not create any 
right or benefit, substantive or procedural, enforceable by any party 
against the Postal Service.
    (k) Fees. (1) Unless determined by 28 U.S.C. 1821 or other 
applicable statute, the costs of providing testimony, including 
transcripts, shall be borne by the requesting party.
    (2) Unless limited by statute, such costs shall also include 
reimbursement to the Postal Service for the usual and ordinary expenses 
attendant upon the employee's absence from his or her official duties in 
connection with the case or matter, including the employee's salary and 
applicable overhead charges, and any necessary travel expenses as 
follows:
    (i) The Inspection Service is authorized to charge reasonable fees 
to parties demanding documents or information. Such fees, calculated to 
reimburse the Postal Service for the cost of responding to a demand, may 
include the costs of time expended by Inspection Service employees, 
including attorneys, to process and respond to the demand; attorney time 
for reviewing

[[Page 136]]

the demand and for legal work in connection with the demand; expenses 
generated by equipment used to search for, produce, and copy the 
requested information; travel costs of the employee and the agency 
attorney, including lodging and per diem where appropriate. Such fees 
shall be assessed at the rates and in the manner specified in Sec. 
265.9.
    (ii) At the discretion of the Inspection Service where appropriate, 
fees and costs may be estimated and collected before testimony is given.
    (iii) The provisions in this section do not affect rights and 
procedures governing public access to official documents pursuant to the 
Freedom of Information Act, 5 U.S.C 552a.
    (l) Acceptance of service. The rules in this section in no way 
modify the requirements of the Federal Rules of Civil Procedure (28 
U.S.C. Appendix) regarding service of process.

[60 FR 36712, July 18, 1995, as amended at 69 FR 34935, June 23, 2004]



         Sec. Appendix A to Part 265--Fees for Computer Searches

    When requested information must be retrieved by computer, fees 
charged to the requester are based on rates for personnel and computer 
time. Estimates are provided to the requester in advance and are based 
on the following rates:

------------------------------------------------------------------------
                                        Price             Unit
------------------------------------------------------------------------
Personnel:
  High technical.....................    $120  per hour.
  Medium technical...................      70  per hour.
  Low technical......................      50  per hour.
Computer Processing:
  Mainframe usage....................     .39  per second.
  Midrange server usage..............     .06  per second.
  PC usage...........................    7.00  per 15 minutes.
  Printing computer output...........     .14  per page.
  Magnetic tape production...........   24.00  per volume.
------------------------------------------------------------------------


[68 FR 56559, Oct. 1, 2003]



PART 266_PRIVACY OF INFORMATION--Table of Contents



Sec.
266.1 Purpose and scope.
266.2 Policy.
266.3 Responsibility.
266.4 Collection and disclosure of information about individuals.
266.5 Notification.
266.6 Procedures for requesting inspection, copying, or amendment of 
          records.
266.7 Appeal procedure.
266.8 Schedule of fees.
266.9 Exemptions.
266.10 Computer matching.

    Authority: 39 U.S.C. 401; 5 U.S.C. 552a.



Sec. 266.1  Purpose and scope.

    This part is intended to protect individual privacy and affects all 
personal information collection and usage activities of the entire U.S. 
Postal Service. This includes the information interface of Postal 
Service employees to other employees, to individuals from the public at 
large, and to any private organization or governmental agency.

[40 FR 45723, Oct. 2, 1975]



Sec. 266.2  Policy.

    It is the policy of the U.S. Postal Service to ensure that any 
record within its custody that identifies or describes any 
characteristic or provides historical information about an individual or 
that affords a basis for inferring personal characteristics, or things 
done by or to such individual, including the record of any affiliation 
with an organization or activity, or admission to an institution, is 
accurate, complete, timely, relevant, and reasonably secure from 
unauthorized access. Additionally, it is the policy to provide the means 
for individuals to know: (a) Of the existence of all Postal Service 
Privacy Act systems of records, (b) the recipients and usage made of 
such information, (c) what information is optional or mandatory to 
provide to the Postal Service, (d) the procedures for individuals to 
review and request update to all information maintained about 
themselves, (e) the reproduction fees for releasing records, (f) the 
procedures for individual legal appeal in cases of dissatisfaction; and 
(g) of the establishment or revision of a computer matching program.

[45 FR 44272, July 1, 1980, as amended at 59 FR 37160, July 21, 1994]



Sec. 266.3  Responsibility.

    (a) Records Office. The Records Office, within the Privacy Office, 
will ensure Postal Service-wide compliance with this policy.
    (b) Custodian. Custodians are responsible for adherence to this part 
within

[[Page 137]]

their respective units and in particular for affording individuals their 
rights to inspect and obtain copies of records concerning them.
    (c) Information System Executive. These managers are responsible for 
reporting to the Records Office the existence or proposed development of 
Privacy Act systems of records. They also must report any change that 
would alter the systems description as published in the Federal 
Register. They establish the relevancy of the information within those 
systems.
    (d) Data Integrity Board--(1) Responsibilities. The Data Integrity 
Board oversees Postal Service computer matching activities. Its 
principal function is to review, approve, and maintain all written 
agreements for use of Postal Service records in matching programs to 
ensure compliance with the Privacy Act and all relevant statutes, 
regulations, and guidelines. In addition, the Board annually reviews 
matching programs and other matching activities in which the Postal 
Service has participated during the preceding year to determine 
compliance with applicable laws, regulations, and agreements; compiles a 
biennial matching report of matching activities; and performs review and 
advisement functions relating to records accuracy, recordkeeping and 
disposal practices, and other computer matching activities.
    (2) Composition. The Privacy Act requires that the senior official 
responsible for implementation of agency Privacy Act policy and the 
Inspector General serve on the Board. The Chief Privacy Officer, as 
administrator of Postal Service Privacy Act policy, serves as Secretary 
of the Board and performs the administrative functions of the Board. The 
Board is composed of these and other members designated by the 
Postmaster General, as follows:
    (i) Vice President and Consumer Advocate (Chairman).
    (ii) Chief Postal Inspector.
    (iii) Inspector General.
    (iv) Senior Vice President, Human Resources.
    (v) Vice President, General Counsel.
    (vi) Chief Privacy Officer.

[40 FR 45723, Oct. 2, 1975, as amended at 45 FR 44272, July 1, 1980; 59 
FR 37160, July 21, 1994; 60 FR 57345, Nov. 15, 1995; 64 FR 41291, July 
30, 1999; 68 FR 56560, Oct. 1, 2003]



Sec. 266.4  Collection and disclosure of information about individuals.

    (a) The following rules govern the collection of information about 
individuals throughout Postal Service operations;
    (1) The Postal Service will:
    (i) Collect, solicit and maintain only such information about an 
individual as is relevant and necessary to accomplish a purpose required 
by statute or Executive Order,
    (ii) Collect information, to the greatest extent practicable, 
directly from the subject individual when such information may result in 
adverse determinations about an individual's rights, benefits or 
privileges,
    (iii) Inform any individual who has been asked to furnish 
information about himself whether that disclosure is mandatory or 
voluntary, by what authority it is being solicited, the principal 
purposes for which it is intended to be used, the routine uses which may 
be made of it, and any penalties and specific consequences for the 
individual, which are known to the Postal Service, which will result 
from refusal to furnish it.
    (2) The Postal Service will not discriminate against any individual 
who fails to provide information about himself unless that information 
is required or necessary for the conduct of the system or program in 
which the individual desires to participate.
    (3) No information will be collected (or maintained) describing how 
individuals exercise rights guaranteed by the First Amendment unless the 
Postmaster General specifically determines that such information is 
relevant and necessary to carry out a statutory purpose of the Postal 
Service.
    (4) The Postal Service will not require individuals to furnish their 
Social Security account number or deny a right, privilege or benefit 
because of an individual's refusal to furnish the number unless it must 
be provided by Federal law.

[[Page 138]]

    (b) Disclosures--(1) Disclosure: Limitations On. The Postal Service 
will not disseminate information about an individual unless reasonable 
efforts have been made to assure that the information is accurate, 
complete, timely and relevant and unless:
    (i) The individual to whom the record pertains has requested in 
writing that the information be disseminated, or
    (ii) It has obtained the prior written consent of the individual to 
whom the record pertains, or
    (iii) The dissemination is in accordance with paragraph (b)(2) of 
this section.
    (2) Dissemination of personal information may be made:
    (i) To a person pursuant to a requirement of the Freedom of 
Information Act (5 U.S.C. 552);
    (ii) To those officers and employees of the Postal Service who have 
a need for such information in the performance of their duties;
    (iii) For a routine use as contained in the system notices published 
in the Federal Register;
    (iv) To a recipient who has provided advance adequate written 
assurance that the information will be used solely as a statistical 
reporting or research record, and to whom the information is transferred 
in a form that is not individually identifiable;
    (v) To the Bureau of the Census for purposes of planning or carrying 
out a census or survey or related activity pursuant to the provisions of 
title 13, U.S.C.;
    (vi) To the National Archives of the United States as a record which 
has sufficient historical or other value to warrant its continued 
preservation by the U.S. Government, or for evaluation by the 
Administrator of General Services or his designee to determine whether 
the record has such value;
    (vii) To a person pursuant to a showing of compelling circumstances 
affecting the health or safety of an individual, if upon such disclosure 
notification is transmitted to the last known address of such 
individual;
    (viii) To a federal agency or to an instrumentality of any 
governmental jurisdiction within or under the control of the United 
States for a civil or criminal law enforcement activity, if such 
activity is authorized by law and if the head of the agency or 
instrumentality has made a written request to the Postal Service 
specifying the particular portion of the record desired and the law 
enforcement activity for which the record is sought;
    (ix) To either House of Congress or its committees or subcommittees 
to the extent of matter within their jurisdiction;
    (x) To the Comptroller General or any of his authorized 
representatives in the course of the performance of the duties of the 
General Accounting Office;
    (xi) Pursuant to the order of a court of competent jurisdiction.
    (3) Names and Addresses of Postal Customers. The disclosure of lists 
of names or addresses of Postal customers or other persons to the public 
is prohibited (39 U.S.C. 412). Names or addresses will be disclosed only 
in those cases permitted by 39 CFR 265.6(d) relating to the Release of 
Information.
    (4) Employee Credit References. A credit bureau or commercial firm 
from which an employee is seeking credit may be given the following 
information upon request: grade, duty status, length of service, job 
title, and salary.
    (5) Employee Job References. Prospective employers of a postal 
employee or a former postal employee may be furnished with the 
information in paragraph (b)(4) of this section, in addition to the date 
and the reason for separation, if applicable. The reason for separation 
must be limited to one of the following terms: retired, resigned, or 
separated. Other terms or variations of these terms (e.g., retired--
disability) may not be used. If additional information is desired, the 
requester must submit the written consent of the employee, and an 
accounting of the disclosure must be kept.
    (6) Computer matching purposes. Records from a Postal Service system 
of records may be disclosed to another agency for the purpose of 
conducting a computer matching program or other matching activity as 
defined in paragraphs (c) and (d) of Sec. 262.5, but only after a 
determination by the Data Integrity Board that the procedural 
requirements of the Privacy Act, the

[[Page 139]]

guidelines issued by the Office of Management and Budget, and these 
regulations as may be applicable are met. These requirements include:
    (i) Routine use. Disclosure is made only when permitted as a routine 
use of the system of records. The Manager, Records Office, determines 
the applicability of a particular routine use and the necessity for 
adoption of a new routine use.
    (ii) Notice. Publication of new or revised matching programs in the 
Federal Register and advance notice to Congress and the Office of 
Management and Budget must be made pursuant to paragraph (f) of Sec. 
266.5.
    (iii) Computer matching agreement. The participants in a computer 
matching program must enter into a written agreement specifying the 
terms under which the matching program is to be conducted (see Sec. 
266.10). The Manager, Records Office, may require that other matching 
activities be conducted in accordance with a written agreement.
    (iv) Data Integrity Board approval. No record from a Postal Service 
system of records may be disclosed for use in a computer matching 
program unless the matching agreement has received approval by the 
Postal Service Data Integrity Board (see Sec. 266.10). Other matching 
activities may, at the discretion of the Manager, Records Office, be 
submitted for Board approval.
    (c) Correction Disclosure. Any person or other agency to which a 
personal record has been or is to be disclosed shall be informed of any 
corrections or notations of dispute relating thereto affecting the 
accuracy, timeliness or relevance of that personal record.
    (d) Recording of Disclosure. (1) An accurate accounting of each 
disclosure will be kept in all instances except those in which 
disclosure is made to the subject of the record, or to Postal Service 
employees in the performance of their duties or is required by the 
Freedom of Information Act (5 U.S.C. 552).
    (2) The accounting will be maintained for at least five (5) years or 
the life of the record, whichever is longer.
    (3) The accounting will be made available to the individual named in 
the record upon inquiry, except for disclosures made pursuant to 
provision paragraph (b)(2)(viii) of this section relating to law 
enforcement activities.

[40 FR 45723, Oct. 2, 1975, as amended at 45 FR 44272, July 1, 1980; 58 
FR 62036, Nov. 24, 1993; 59 FR 37160, July 21, 1994; 64 FR 41291, July 
30, 1999; 68 FR 56560, Oct. 1, 2003]



Sec. 266.5  Notification.

    (a) Notification of Systems. Upon written request, the Postal 
Service will notify any individual whether a specific system named by 
the individual contains a record pertaining to him or her. See Sec. 
266.6 for suggested form of request.
    (b) Notification of Disclosure. The Postal Service shall make 
reasonable efforts to serve notice on an individual before any personal 
information on such individual is made available to any person under 
compulsory legal process when such process becomes a matter of public 
record.
    (c) Notification of Amendment. (See Sec. 266.6(c)(1) relating to 
amendment of records upon request.)
    (d) Notification of New Use. Any newly intended use of personal 
information maintained by the Postal Service will be published in the 
Federal Register thirty (30) days before such use becomes operational. 
Public views may then be submitted to the Records Office.
    (e) Notification of Exemptions. The Postal Service will publish 
within the Federal Register its intent to exempt any system of records 
and shall specify the nature and purpose of that system.
    (f) Notification of computer matching program. The Postal Service 
publishes in the Federal Register and forwards to Congress and the 
Office of Management and Budget advance notice of its intent to 
establish, substantially revise, or renew a matching program, unless 
such notice is published by another participant agency. In those 
instances in which the Postal Service is the ``recipient'' agency, as 
defined in the Act, but another participant agency sponsors and derives 
the principal benefit from the matching program, the other agency is 
expected to publish the notice. The notice must be sent to Congress and 
OMB 40 days, and published at least thirty (30) days, prior to (1) 
initiation of any matching activity under

[[Page 140]]

a new or substantially revised program, or (2) expiration of the 
existing matching agreement in the case of a renewal of a continuing 
program.

[40 FR 45724, Oct. 2, 1975; 40 FR 48512, Oct. 16, 1975, as amended at 45 
FR 44272, July 1, 1980; 59 FR 37161, July 21, 1994; 60 FR 57345, Nov. 
15, 1995; 64 FR 41291, July 30, 1999; 68 FR 56560, Oct. 1, 2003; 69 FR 
34935, June 23, 2004]



Sec. 266.6  Procedures for requesting inspection, copying, or amendment 
of records.

    The purpose of this section is to provide procedures by which an 
individual may have access and request amendment to personal information 
within a Privacy Act System of Records.
    (a) Submission of Requests--(1) Manner of submission. Inquiries 
regarding the contents of records systems or access or amendment to 
personal information should be submitted in writing to the custodian of 
the official record, if known, or to the Manager, Records Office, U.S. 
Postal Service, 475 L'Enfant Plaza SW., Washington, DC 20260, telephone 
(202) 268-2608. Requests submitted to the Office of Inspector General 
should be submitted to the Freedom of Information Act/Privacy Officer, 
Office of Inspector General, 1735 North Lynn Street, Arlington, 
Virginia, 22209-2020. Inquiries should be clearly marked, ``Privacy Act 
Request''. Any inquiry concerning a specific system of records should 
provide the Postal Service with the information contained under 
``Notification'' for that system as published in the Federal Register. 
If the information supplied is insufficient to locate or identify the 
record, the requester will be notified promptly and, if possible, 
informed of additional information required. If the requester is not a 
Postal Service employee, he should designate the post office at which he 
wishes to review or obtain copies of records. Amendment requests contest 
the relevance, accuracy, timeliness or completeness of the record and 
will include a statement of the amendment requested.
    (2) Third party inquiries. Anyone desiring to review or copy records 
pertaining to another person must have the written consent of that 
person.
    (3) Period for response by custodian. Upon receipt of an inquiry, 
the custodian will respond with an acknowledgement of receipt within ten 
(10) days. If the inquiry requires the custodian to determine whether a 
particular record exists, the inquirer shall be informed of this 
determination as a part of the acknowledgement letter.
    (b) Compliance with Request for Access--(1) Notification of time and 
place for inspection. When a requested record has been identified and is 
to be disclosed, the custodian shall ensure that the record is made 
available promptly and shall immediately notify the requester where and 
when the record will be available for inspection or copying. Postal 
Service records will normally be available for inspection and copying 
during regular business hours at the postal facilities at which they are 
maintained. The custodian may, however, designate other reasonable 
locations and times for inspection and copying of some or all of the 
records within his custody.
    (2) Identification of requester. The requester must present personal 
identification sufficient to satisfy the custodian as to his identity 
prior to record review. Examples of sufficient identification are a 
valid driver's license, Medicare card, and employee identification 
cards.
    (3) Responsibilities of requester. The requester shall assume the 
following responsibilities regarding the review of official personal 
records:
    (i) Requester must agree not to leave Postal Services premises with 
official records unless specifically given a copy for that purpose by 
the custodian or his representative.
    (ii) Requester must sign a statement indicating he has reviewed a 
specific record(s) or category of record.
    (iii) Requester may be accompanied by a person he so chooses to aid 
in the inspection of information; however, requester must furnish the 
Postal Service with written authorization for such review in that 
person's presence.
    (4) Special rules for medical records. A medical record shall be 
disclosed to the requester to whom it pertains unless, in the judgment 
of the medical officer, access to such record could have an adverse 
effect upon such individual. When

[[Page 141]]

the medical officer determines that the disclosure of medical 
information could have an adverse effect upon the individual to whom it 
pertains, the medical officer will transmit such information to a 
medical doctor named by the requesting individual.
    (5) Limitations on access. Nothing in this section shall allow an 
individual access to any information compiled in reasonable anticipation 
of a civil action or proceeding. Other limitations on access are those 
specifically addressed in Sec. Sec. 266.6(b)(4) and 266.9.
    (6) Response when compliance is not possible. A reply denying a 
written request to review a record shall be in writing signed by the 
custodian or other appropriate official and shall be made only if such a 
record does not exist or does not contain personal information relating 
to the requester, or is exempt from disclosure. This reply shall include 
a statement regarding the determining factors of denial, and the right 
to appeal to denial to the General Counsel.
    (c) Compliance With Request for Amendment. (1) Correct or eliminate 
any information that is found to be incomplete, inaccurate, not relevant 
to a statutory purpose of the Postal Service, or not timely and notify 
the requester when this action is complete, or
    (2) Not later than thirty (30) working days after receipt of a 
request to amend, notify the requester of a determination not to amend 
and of the requester's right to appeal, or to submit, in lieu of an 
appeal, a statement of reasonable length setting forth a position 
regarding the disputed information to be attached to the contested 
personal record.
    (d) Availability of Assistance in Exercising Rights. The Manager, 
Records Office is available to provide an individual with assistance in 
exercising rights pursuant to this part.

[40 FR 45723, Oct. 2, 1975, as amended at 45 FR 44272, July 1, 1980; 51 
FR 26386, July 23, 1986; 60 FR 57345, Nov. 15, 1995; 64 FR 41291, July 
30, 1999; 67 FR 16024, Apr. 4, 2002; 68 FR 56560, Oct. 1, 2003]



Sec. 266.7  Appeal procedure.

    (a) Appeal Procedure. (1) If a request to inspect, copy, or amend a 
record is denied, in whole or in part, or if no determination is made 
within the period prescribed by this part, the requester shall appeal to 
the General Counsel, U.S. Postal Service, Washington, DC 20260-1100.
    (2) The requester should submit his appeal in writing within thirty 
(30) days of the date of denial, or within ninety (90) days of such 
request if the appeal is from a failure of the custodian to make a 
determination. The letter of appeal should include, as applicable:
    (i) Reasonable identification of the record access to which or the 
amendment of which was requested.
    (ii) A statement of the Postal Service action or failure to act and 
of the relief sought.
    (iii) A copy of the request, of the notification of denial and of 
any other related correspondence.
    (3) Any record found on appeal to be incomplete, inaccurate, not 
relevant, or not timely, shall within thirty (30) working days of the 
date of such findings be appropriately amended.
    (4) The decision of the General Counsel, constitutes the final 
decision of the Postal Service on the right of the requester to inspect, 
copy, change, or update a record. The decision on the appeal shall be in 
writing and in the event of a denial shall set forth the reasons for 
such denial and state the individual's right to obtain judicial review 
in a district court. An indexed file of decisions on appeals shall be 
maintained by the General Counsel.
    (b) Submission of Statement of Disagreement. If the final decision 
concerning a request for the amendment of a record does not satisfy the 
requester, any statement of reasonable length provided by that 
individual setting forth a position regarding the disputed information 
will be accepted and attached to the relevant personal record.

[40 FR 45723, Oct. 2, 1975, as amended at 41 FR 24709, June 18, 1976; 45 
FR 44273, July 1, 1980; 51 FR 26386, July 23, 1986; 60 FR 57345, Nov. 
15, 1995; 64 FR 41291, July 30, 1999; 68 FR 56560, Oct. 1, 2003]



Sec. 266.8  Schedule of fees.

    (a) Policy. The purpose of this section is to establish fair and 
equitable fees to

[[Page 142]]

permit duplication of records for subject individuals (or authorized 
representatives) while recovering the full allowable direct costs 
incurred by the Postal Service.
    (b) Duplication. (1) For duplicating any paper or micrographic 
record or publication or computer report, the fee is $.15 per page, 
except that the first 100 pages furnished in response to a particular 
request shall be furnished without charge. See paragraph (d) of this 
section for fee limitations.
    (2) The Postal Service may at its discretion make coin-operated copy 
machines available at any location. In that event, requesters will be 
given the opportunity to make copies at their own expense.
    (3) The Postal Service normally will not furnish more than one copy 
of any record. If duplicate copies are furnished at the request of the 
requester, $.15 per page fee is charged for each copy of each duplicate 
page without regard to whether the requester is eligible for free copies 
pursuant to Sec. 266.8(b)(1).
    (c) Aggregating requests. When the custodian reasonably believes 
that a requester is attempting to break a request for similar types of 
records down into a series of requests in order to evade the assessment 
of fees, the custodian may aggregate the requests and charge 
accordingly.
    (d) Limitations. No fee will be charged an individual for the 
process of retrieving, reviewing, or amending a record pertaining to 
that individual.
    (e) The Postal Service may, at its discretion, require reimbursement 
of its costs as a condition of participation in a computer matching 
program or activity with another agency. The agency to be charged is 
notified in writing of the approximate costs before they are incurred. 
Costs are calculated in accordance with the schedule of fees at Sec. 
265.9.

[52 FR 38230, Oct. 15, 1987, as amended at 59 FR 37161, July 21, 1994; 
68 FR 56560, Oct. 1, 2003]



Sec. 266.9  Exemptions.

    (a) Subsections 552a(j) and (k) of 5 U.S.C. 552a empower the 
Postmaster General to exempt systems of records meeting certain criteria 
from various other subsections of 5 U.S.C. 552a. With respect to systems 
of records so exempted, nothing in this part shall require compliance 
with provisions hereof implementing any subsections of 5 U.S.C. 552a 
from which those systems have been exempted.
    (b) Paragraph (b)(1) of this section contains a summary of 
provisions of 5 U.S.C. 552a for which exemption is claimed for some 
systems of records pursuant to, and to the extent permitted by, 
subsections 552a(j) and (k) of 5 U.S.C. 552a. Paragraphs (b)(2) through 
(5) of this section identify the exempted systems of records, the 
exemptions applied to each, and the reasons for the exemptions:
    (1) Explanation of provisions under 5 U.S.C. 552a for which an 
exemption is claimed in the systems discussed below. (i) Subsection 
(c)(3) requires an agency to make available to the individual named in 
the records an accounting of each disclosure of records.
    (ii) Subsection (c)(4) requires an agency to inform any person or 
other agency to which a record has been disclosed of any correction or 
notation of dispute the agency has made to the record in accordance with 
5 U.S.C. 552a(d).
    (iii) Subsections (d)(1) through (4) require an agency to permit an 
individual to gain access to records about the individual, to request 
amendment of such records, to request a review of an agency decision not 
to amend such records, and to provide a statement of disagreement about 
a disputed record to be filed and disclosed with the disputed record.
    (iv) Subsection (e)(1) requires an agency to maintain in its records 
only such information about an individual that is relevant and necessary 
to accomplish a purpose required by statute or executive order of the 
President.
    (v) Subsection (e)(2) requires an agency to collect information to 
the greatest extent practicable directly from the subject individual 
when the information may result in adverse determinations about an 
individual's rights, benefits, and privileges under federal programs.
    (vi) Subsection (e)(3) requires an agency to inform each person whom 
it

[[Page 143]]

asks to supply information of the authority under which the information 
is sought, the purposes for which the information will be used, the 
routine uses that may be made of the information, whether disclosure is 
mandatory or voluntary, and the effects of not providing the 
information.
    (vii) Subsection (e)(4)(G) and (H) requires an agency to publish a 
Federal Register notice of its procedures whereby an individual can be 
notified upon request whether the system of records contains information 
about the individual, how to gain access to any record about the 
individual contained in the system, and how to contest its content.
    (viii) Subsection (e)(5) requires an agency to maintain its records 
with such accuracy, relevance, timeliness, and completeness as is 
reasonably necessary to ensure fairness to the individual in making any 
determination about the individual.
    (ix) Subsection (e)(8) requires an agency to make reasonable efforts 
to serve notice on an individual when any record on such individual is 
made available to any person under compulsory legal process when such 
process becomes a matter of public record.
    (x) Subsection (f) requires an agency to establish procedures 
whereby an individual can be notified upon request if any system of 
records named by the individual contains a record pertaining to the 
individual, obtain access to the record, and request amendment.
    (xi) Subsection (g) provides for civil remedies if an agency fails 
to comply with the access and amendment provisions of subsections (d)(1) 
and (d)(3), and with other provisions of 5 U.S.C. 552a, or any rule 
promulgated thereunder, in such a way as to have an adverse effect on an 
individual.
    (xii) Subsection (m) requires an agency to cause the requirements of 
5 U.S.C. 552a to be applied to a contractor operating a system of 
records to accomplish an agency function.
    (2) Pursuant to subsection 552a(j)(2), Emergency Management Records, 
USPS 500.300; Inspection Service Investigative File System, USPS 
700.000; Mail Cover Program Records, USPS 700.100; and Inspector General 
Investigative Records, USPS 700.300, are exempt from subsections 552a 
(c)(3), (c)(4), (d)(1)-(4), (e)(1)-(3), (e)(4) (G) and (H), (e)(5), 
(e)(8), (f), (g), and (m) because the systems contain information 
pertaining to the enforcement of criminal laws. The reasons for 
exemption follow:
    (i) Disclosure to the record subject pursuant to subsections (c)(3), 
(c)(4), or (d)(1)-(4) could:
    (A) Alert subjects that they are targets of an investigation or mail 
cover by the Postal Inspection Service or an investigation by the Office 
of Inspector General;
    (B) Alert subjects of the nature and scope of the investigation and 
of evidence obtained;
    (C) Enable the subject of an investigation to avoid detection or 
apprehension;
    (D) Subject confidential sources, witnesses, and law enforcement 
personnel to harassment or intimidation if their identities were 
released to the target of an investigation;
    (E) Constitute unwarranted invasions of the personal privacy of 
third parties who are involved in a certain investigation;
    (F) Intimidate potential witnesses and cause them to be reluctant to 
offer information;
    (G) Lead to the improper influencing of witnesses, the destruction 
or alteration of evidence yet to be discovered, the fabrication of 
testimony, or the compromising of classified material; and
    (H) Seriously impede or compromise law enforcement, mail cover, or 
background investigations that might involve law enforcement aspects as 
a result of the above.
    (ii) Application of subsections (e)(1) and (e)(5) is impractical 
because the relevance, necessity, or correctness of specific information 
might be established only after considerable analysis and as the 
investigation progresses. As to relevance (subsection (e)(1)), effective 
law enforcement requires the keeping of information not relevant to a 
specific Postal Inspection Service investigation or Office of Inspector 
General investigation. Such information may be kept to provide leads for 
appropriate law enforcement and to establish patterns of activity that 
might relate to the jurisdiction of the Office of

[[Page 144]]

Inspector General, Postal Inspection Service, and/or other agencies. As 
to accuracy (subsection (e)(5)), the correctness of records sometimes 
can be established only in a court of law.
    (iii) Application of subsections (e)(2) and (e)(3) would require 
collection of information directly from the subject of a potential or 
ongoing investigation. The subject would be put on alert that he or she 
is a target of an investigation by the Office of Inspector General, or 
an investigation or mail cover by the Postal Inspection Service, 
enabling avoidance of detection or apprehension, thereby seriously 
compromising law enforcement, mail cover, or background investigations 
involving law enforcement aspects. Moreover, in certain circumstances 
the subject of an investigation is not required to provide information 
to investigators, and information must be collected from other sources.
    (iv) The requirements of subsections (e)(4)(G) and (H), and (f) do 
not apply because this system is exempt from the provisions of 
subsection (d). Nevertheless, the Postal Service has published notice of 
its notification, access, and contest procedures because access is 
appropriate in some cases.
    (v) Application of subsection (e)(8) could prematurely reveal an 
ongoing criminal investigation to the subject of the investigation.
    (vi) The provisions of subsection (g) do not apply because exemption 
from the provisions of subsection (d) renders the provisions on suits to 
enforce subsection (d) inapplicable.
    (vii) If one of these systems of records is operated in whole or in 
part by a contractor, the exemptions claimed herein shall remain 
applicable to it (subsection (m)).
    (3) Pursuant to subsection 552a(k)(2), Labor Relations Records, USPS 
200.000; Emergency Management Records, USPS 500.300; Inspection Service 
Investigative File System, USPS 700.000; Mail Cover Program Records, 
USPS 700.100; Inspector General Investigative Records, USPS 700.300; and 
Financial Transactions, USPS 860.000, are exempt from certain 
subsections of 5 U.S.C. 552a because the systems contain investigatory 
material compiled for law enforcement purposes other than material 
within the scope of subsection 552a(j)(2).
    (i) Emergency Management Records, USPS 500.300; Inspection Service 
Investigative File System, USPS 700.000; Mail Cover Program Records, 
USPS 700.100; and Inspector General Investigative Records, USPS 700.300, 
are exempt from subsections 552a(c)(3), (d)(1)-(4), (e)(1), (e)(4) (G) 
and (H), and (f) for the same reasons as stated in paragraph (b)(2) of 
this section.
    (ii) Labor Relations Records, USPS 200.000, is exempt from 
subsections 552a(d)(1)-(4), (e)(4)(G) and (H), and (f) for the following 
reasons:
    (A) Application of the requirements at subsections (d)(1)-(4) would 
cause disruption of enforcement of the laws relating to equal employment 
opportunity (EEO). It is essential to the integrity of the EEO complaint 
system that information collected in the investigative process not be 
prematurely disclosed and that witnesses be free from restraint, 
interference, coercion, or reprisal.
    (B) The requirements of subsections (e)(4)(G) and (H), and (f) do 
not apply for the same reasons described in paragraph (b)(2)(iv) of this 
section.
    (iii) Financial Transactions, USPS 860.000, is exempt from 
subsections 552a(c)(3), (d)(1)-(4), (e)(1), (e)(4)(G) and (H), and (f) 
for the following reasons:
    (A) Disclosure to the record subject pursuant to subsections (c)(3) 
and (d)(1)-(4) would violate the non-notification provision of the Bank 
Secrecy Act, 31 U.S.C. 5318(g)(2), under which the Postal Service is 
prohibited from notifying a transaction participant that a suspicious 
transaction report has been made. In addition, the access provisions of 
subsections (c)(3) and (d)(1)-(4) would alert individuals that they have 
been identified as suspects or possible subjects of investigation and 
thus seriously hinder the law enforcement purposes underlying the 
suspicious transaction reports.
    (B) This system is in compliance with subsection (e)(1) because 
maintenance of the records is required by law. Strict application of the 
relevance and necessity requirements of subsection (e)(1)

[[Page 145]]

to suspicious transactions would be impractical, however, because the 
relevance or necessity of specific information can often be established 
only after considerable analysis and as an investigation progresses.
    (C) The requirements of subsections (e)(4)(G) and (H), and (f) do 
not apply because this system is exempt from the provisions of 
subsection (d). Nevertheless, the Postal Service has published notice of 
its notification, access, and contest procedures because access is 
appropriate in some cases.
    (4) Pursuant to subsection 552a(k)(5), Recruiting, Examining, and 
Placement Records, USPS 100.100; Labor Relations Records, USPS 200.000; 
Inspection Service Investigative File System, USPS 700.000; and 
Inspector General Investigative Records, USPS 700.300 are exempt from 
certain subsections of 5 U.S.C. 552a because the systems contain 
investigatory material compiled for the purpose of determining 
suitability, eligibility, or qualifications for employment, contracts, 
or access to classified information.
    (i) Recruiting, Examining, and Placement Records, USPS 100.100, is 
exempt from subsections 552a(d)(1)-(4) and (e)(1) for the following 
reasons:
    (A) During its investigation and evaluation of an applicant for a 
position, the Postal Service contacts individuals who, without an 
assurance of anonymity, would refuse to provide information concerning 
the subject of the investigation. If a record subject were given access 
pursuant to subsection (d)(1)-(4), the promised confidentiality would be 
breached and the confidential source would be identified. The result 
would be restriction of the free flow of information vital to a 
determination of an individual's qualifications and suitability for 
appointment to or continued occupancy of his or her position.
    (B) In collecting information for investigative and evaluative 
purposes, it is impossible to determine in advance what information 
might be of assistance in determining the qualifications and suitability 
of an individual for appointment. Information that seems irrelevant, 
when linked with other information, can sometimes provide a composite 
picture of an individual that assists in determining whether that 
individual should be appointed to or retained in a position. For this 
reason, exemption from subsection (e)(1) is claimed.
    (C) The requirements of subsections (e)(4)(G) and (H), and (f) do 
not apply because this system is exempt from the provisions of 
subsection (d). Nevertheless, the Postal Service has published notice of 
its notification, access, and contest procedures because access is 
appropriate in some cases.
    (ii) Labor Relations Records, USPS 200.000, is exempt from 
subsections 552a(d)(1)-(4), (e)(4)(G) and (H), and (f) for the following 
reasons:
    (A) Application of the provisions at subsection (d)(1)-(4) would 
reveal to the EEO complainant the identity of individuals who supplied 
information under a promise of anonymity. It is essential to the 
integrity of the EEO complaint system that information collected in the 
investigative process not be prematurely disclosed and that witnesses be 
free from restraint, interference, coercion, or reprisal.
    (B) The requirements of subsections (e)(4)(G) and (H), and (f) do 
not apply because this system is exempt from the provisions of 
subsection (d). Nevertheless, the Postal Service has published notice of 
its notification, access, and contest procedures because access is 
appropriate in some cases.
    (iii) Inspection Service Investigative File System, USPS 700.000; 
and Inspector General Investigative Records, USPS 700.300, are exempt 
from subsections 552a(c)(3), (d)(1)-(4), (e)(1), (e)(4) (G) and (H), and 
(f) for the same reasons as stated in paragraph (b)(2) of this section.
    (5) Pursuant to subsection 552a(k)(6), Employee Development and 
Training Records, USPS 100.300; Personnel Research Records, 100.600; and 
Emergency Management Records, USPS 500.300 are exempt from subsections 
552a(d)(1)-(4), (e)(4)(G) and (H), and (f) because the systems contain 
testing or examination material the disclosure of which would compromise 
the objectivity or fairness of the material. The reasons for exemption 
follow:
    (i) These systems contain questions and answers to standard testing 
materials, the disclosure of which would compromise the fairness of the 
future

[[Page 146]]

use of these materials. It is not feasible to develop entirely new 
examinations after each administration as would be necessary if 
questions or answers were available for inspection and copying. 
Consequently, exemption from subsection (d) is claimed.
    (ii) The requirements of subsections (e)(4)(G) and (H), and (f) do 
not apply because this system is exempt from the provisions of 
subsection (d). Nevertheless, the Postal Service has published notice of 
its notification, access, and contest procedures because access is 
appropriate in some cases.

[70 FR 22513, Apr. 29, 2005]



Sec. 266.10  Computer matching.

    (a) General. Any agency or Postal Service component that wishes to 
use records from a Postal Service automated system of records in a 
computerized comparison with other postal or non-postal records must 
submit its proposal to the Postal Service Manager Records Office. 
Computer matching programs as defined in paragraph (c) of Sec. 262.5 
must be conducted in accordance with the Privacy Act, implementing 
guidance issued by the Office of Management and Budget and these 
regulations. Records may not be exchanged for a matching program until 
all procedural requirements of the Act and these regulations have been 
met. Other matching activities must be conducted in accordance with the 
Privacy Act and with the approval of the Manager, Records Office. See 
paragraph (b)(6) of Sec. 266.4.
    (b) Procedure for submission of matching proposals. A proposal must 
include information required for the matching agreement discussed in 
paragraph (d)(1) of this section. The Inspection Service must submit its 
proposals for matching programs and other matching activities to the 
Postal Service Manager Records Office through: Independent Counsel, 
Inspection Service, U.S. Postal Service, 475 L'Enfant Plaza SW, Rm 3417, 
Washington, DC 20260-2181. All other matching proposals, whether from 
postal organizations or other government agencies, must be mailed 
directly to: Manager, Records Office, U.S. Postal Service, 475 L'Enfant 
Plaza SW., Washington, DC 20260.
    (c) Lead time. Proposals must be submitted to the Postal Service 
Manager Records Office at least 3 months in advance of the anticipated 
starting date to allow time to meet Privacy Act publication and review 
requirements.
    (d) Matching agreements. The participants in a computer matching 
program must enter into a written agreement specifying the terms under 
which the matching program is to be conducted. The Manager, Records 
Office may require similar written agreements for other matching 
activities.
    (1) Content. Agreements must specify:
    (i) The purpose and legal authority for conducting the matching 
program;
    (ii) The justification for the program and the anticipated results, 
including, when appropriate, a specific estimate of any savings in terms 
of expected costs and benefits, in sufficient detail for the Data 
Integrity Board to make an informed decision;
    (iii) A description of the records that are to be matched, including 
the data elements to be used, the number of records, and the approximate 
dates of the matching program;
    (iv) Procedures for providing notice to individuals who supply 
information that the information may be subject to verification through 
computer matching programs;
    (v) Procedures for verifying information produced in a matching 
program and for providing individuals an opportunity to contest the 
findings in accordance with the requirement that an agency may not take 
adverse action against an individual as a result of information produced 
by a matching program until the agency has independently verified the 
information and provided the individual with due process;
    (vi) Procedures for ensuring the administrative, technical, and 
physical security of the records matched; for the retention and timely 
destruction of records created by the matching program; and for the use 
and return or destruction of records used in the program;
    (vii) Prohibitions concerning duplication and redisclosure of 
records exchanged, except where required by law or essential to the 
conduct of the matching program;

[[Page 147]]

    (viii) Assessments of the accuracy of the records to be used in the 
matching program; and
    (ix) A statement that the Comptroller General may have access to all 
records of the participant agencies in order to monitor compliance with 
the agreement.
    (2) Approval. Before the Postal Service may participate in a 
computer matching program or other computer matching activity that 
involves both USPS and non-USPS records, the Data Integrity Board must 
have evaluated the proposed match and approved the terms of the matching 
agreement. To be effective, the matching agreement must receive approval 
by each member of the Board. Votes are collected by the Postal Service 
Manager Records Office. Agreements are signed on behalf of the Board by 
the Chairman. If a matching agreement is disapproved by the Board, any 
party may appeal the disapproval in writing to the Director, Office of 
Management and Budget, Washington, DC 20503-0001, within 30 days 
following the Board's written disapproval.
    (3) Effective dates. No matching agreement is effective until 40 
days after the date on which a copy is sent to Congress. The agreement 
remains in effect only as long as necessary to accomplish the specific 
matching purpose, but no longer than 18 months, at which time the 
agreement expires unless extended. The Data Integrity Board may extend 
an agreement for one additional year, without further review, if within 
3 months prior to expiration of the 18-month period it finds that the 
matching program is to be conducted without change, and each party to 
the agreement certifies that the program has been conducted in 
compliance with the matching agreement. Renewal of a continuing matching 
program that has run for the full 30-month period requires a new 
agreement that has received Data Integrity Board approval.

[59 FR 37161, July 21, 1994, as amended at 60 FR 57345, Nov. 15, 1995; 
64 FR 41291, July 30, 1999; 68 FR 56560, Oct. 1, 2003; 69 FR 34935, June 
23, 2004]



PART 267_PROTECTION OF INFORMATION--Table of Contents



Sec.
267.1 Purpose and scope.
267.2 Policy.
267.3 Responsibility.
267.4 Information security standards.
267.5 National Security Information.

    Authority: 39 U.S.C. 401; Pub. L. 93-579, 88 Stat. 1896.



Sec. 267.1  Purpose and scope.

    This part addresses the protection of information and records in the 
custody of the Postal Service throughout all phases of information flow 
and within all organization components, and includes micromated, manual 
and data processing information.

[40 FR 45726, Oct. 2, 1975]



Sec. 267.2  Policy.

    Consistent with the responsibility of the Postal Service to make its 
official records available to the public to the maximum extent required 
by the public interest, and to ensure the security, confidentiality, and 
integrity of official records containing sensitive or national security 
information, it is the policy of the Postal Service to maintain 
definitive and uniform information security safeguards. These safeguards 
will have as their purpose: (a) Ensuring the effective operation of the 
Postal Service through appropriate controls over critical information, 
and (b) Protecting personal privacy, the public interest, and the 
national security by limiting unauthorized access to both restricted and 
national security information.

[44 FR 51224, Aug. 31, 1979]



Sec. 267.3  Responsibility.

    (a) Chief Postal Inspector and Chief Privacy Officer. The Chief 
Postal Inspector and the Chief Privacy Officer will ensure within their 
respective areas of jurisdiction:
    (1) Postal Service-wide compliance with this policy and related 
standards and procedures; and
    (2) Implementation of remedial action when violations or attempted 
violations of these standards and procedures occur.

[[Page 148]]

    (b) Custodians. All custodians are responsible for insuring that 
information security standards and procedures are followed and that all 
relevant employees participate in the information security awareness 
programs.

[40 FR 45726, Oct. 2, 1975, as amended at 60 FR 57345, Nov. 15, 1995; 68 
FR 56560, Oct. 1, 2003]



Sec. 267.4  Information security standards.

    (a) The Postal Service will operate under a uniform set of 
information security standards which address the following functional 
aspects of information flow and management:
    (1) Information system development,
    (2) Information collection,
    (3) Information handling and processing,
    (4) Information dissemination and disclosure,
    (5) Information storage and destruction,
    (b) Supplementing this list are information security standards 
pertaining to the following administrative areas:
    (1) Personnel selection and training,
    (2) Physical environment protection,
    (3) Contingency planning,
    (4) Information processing or storage system procurement,
    (5) Contractual relationships.

[40 FR 45726, Oct. 2, 1975; 40 FR 48512, Oct. 16, 1975]



Sec. 267.5  National Security Information.

    (a) Purpose and scope. The purpose of this section is to provide 
regulations implementing Executive Order 12356 National Security 
Information (hereinafter referred to as the Executive Order) which deals 
with the protection, handling and classification of national security 
information.
    (b) Definitions. (1) In this section, National Security Information 
means information on the national defense and foreign relations of the 
United States that has been determined under the Executive Order or 
prior Orders to require protection against unauthorized disclosure and 
has been so designated.
    (2) Derivative Classification means the carrying forward of a 
classification from one document to a newly created document that 
contains national security information which is in substance the same as 
information that is currently classified.
    (3) In the Custody of the Postal Service means any national security 
information transmitted to and held by the U.S. Postal Service for the 
information and use of postal officials. (This does not include any 
national security information in the U.S. Mails.)
    (c) Responsibility and authority. (1) The Manager, Payroll 
Accounting and Records, serves as the USPS National Security Information 
Oversight Officer. This officer shall:
    (i) Conduct an active oversight program to ensure that the 
appropriate provisions of these regulations are complied with;
    (ii) Chair a committee composed of the Manager, Payroll Accounting 
and Records; the Chief Postal Inspector (USPS Security Officer); the 
General Counsel; the Executive Assistant to the Postmaster General; and 
the Director, Operating Policies Office; or their designees, with 
authority to act on all suggestions and complaints concerning compliance 
by the Postal Service with the regulations in this part;
    (iii) Ensure that appropriate and prompt corrective action is taken 
whenever a postal employee knowingly, willfully and without 
authorization:
    (A) Discloses national security information properly classified 
under the Executive order, or prior orders,
    (B) Compromises properly classified information through negligence, 
or
    (C) Violates any provisions of these regulations or procedures;
    (iv) Establish, staff, and direct activities for controlling 
documents containing national security information at USPS Headquarters 
and to provide functional direction to the field.
    (v) In conjunction with the USPS Security Officer, prepare and issue 
instructions for the control, protection, and derivative classification 
of national security information in the custody of, and use by, the 
Postal Service. These instructions shall include requirements that:
    (A) A demonstrable need for access to national security information 
is established before requesting the initiation of administrative 
clearance procedures;

[[Page 149]]

    (B) Ensure that the number of people granted access to national 
security information is reduced to and maintained at the minimum number 
consistent with operational requirements and needs;
    (vi) Establish, staff and direct activities for controlling 
documents containing national security information at USPS Headquarters 
and provide functional direction to each Regional Records Control 
Officer;
    (vii) As part of the overall program implementation, develop a 
training program to familiarize appropriate postal employees of the 
requirements for control, protection and classification; and
    (viii) Report to the USPS Security Officer any incidents of possible 
loss or compromise of national security information.
    (2) The USPS Security Officer (the Chief Postal Inspector) shall:
    (i) Provide technical guidance to the Manager, Payroll Accounting 
and Records in implementing the national security information program;
    (ii) Conduct investigations into reported program violations or loss 
or possible compromise of national security information and report any 
actual loss or compromise to the originating agency;
    (iii) Periodically conduct an audit of the USPS national security 
information program;
    (iv) Process requests for sensitive clearances; conduct the 
appropriate investigations and grant or deny a sensitive clearance to 
postal employees having an official ``need to know'' national security 
information; and
    (v) Report to the Attorney General any evidence of possible 
violations of federal criminal law by a USPS employee and of possible 
violations by any other person of those federal criminal laws.
    (3) All postal employees who have access to national security 
information shall:
    (i) Sign a nondisclosure agreement;
    (ii) Be familiar with and follow all Program regulations and 
instructions;
    (iii) Actively protect and be accountable for all national security 
information entrusted to their care;
    (iv) Disclose national security information only to another 
individual who is authorized access;
    (v) Immediately report to the Manager, Payroll Accounting and 
Records and the USPS Security Officer any suspected or actual loss or 
compromise of national security information; and
    (vi) Be subject to administrative sanctions should requirements (ii) 
through (v) not be followed.
    (d) Derivative classification. When applying derivative 
classifications to documents created by the Postal Service, the Postal 
Service shall:
    (1) Respect original classification decisions;
    (2) Verify the information's current level of classification so far 
as practicable before applying the markings; and
    (3) Carry forward to any newly created documents the assigned dates 
or events for declassification or review and any additional authorized 
markings in accordance with section 2 of the Executive order.
    (e) General provisions--(1) Dissemination. National security 
information received by the U.S. Postal Service shall not be further 
disseminated to any other agency without the consent of the originating 
agency.
    (2) Disposal. Classified documents no longer needed by the Postal 
Service shall be either properly destroyed or returned to the 
originating agency.
    (3) Freedom of Information Act or mandatory review requests.
    (i) Requests for classified documents made under the Freedom of 
Information Act (FOIA) and mandatory review requests (requests under 
Section 3-501 of the Executive Order for the declassification and 
release of information), including requests by the news media, should be 
submitted to: Manager, Records Office, U.S. Postal Service, 475 L'Enfant 
Plaza, SW., Washington, DC 20260.
    (ii) In response to an FOIA request or a mandatory review request, 
the Postal Service shall not refuse to confirm the existence or non-
existence of a document, unless the fact of its existence or non-
existence would itself be classifiable.

[[Page 150]]

    (iii) The Postal Service shall forward all FOIA and mandatory review 
requests for national security information in its custody (including 
that within records derivatively classified by the USPS) to the 
originating agency for review unless the agency objects on the grounds 
that its association with the information requires protection. The 
requester shall be notified that:
    (A) The request was referred; and
    (B) The originating agency will provide a direct response.
    (4) Research requests. Requests from historical researchers for 
access to national security information shall be referred to the 
originating agency.

(39 U.S.C. 401 (2), (10), 404(a)(7))

[44 FR 51224, Aug. 31, 1979, as amended at 45 FR 30069, May 7, 1980; 49 
FR 22476, May 30, 1984; 60 FR 57345, 57346, Nov. 15, 1995; 64 FR 41291, 
July 30, 1999; 68 FR 56560, Oct. 1, 2003]



PART 268_PRIVACY OF INFORMATION_EMPLOYEE RULES OF CONDUCT--Table of
Contents



Sec.
268.1 General principles.
268.2 Consequences of non-compliance.

    Authority: 39 U.S.C. 401; 5 U.S.C. 552a.



Sec. 268.1  General principles.

    In order to conduct its business, the Postal Service has the need to 
collect various types of personally identifiable information about its 
customers, employees and other individuals. Information of this nature 
has been entrusted to the Postal Service, and employees handling it have 
a legal and ethical obligation to hold it in confidence and to actively 
protect it from uses other than those compatible with the purpose for 
which the information was collected. This obligation is legally imposed 
by the Privacy Act of 1974, which places specific requirements upon all 
Federal agencies, including the Postal Service, and their employees. In 
implementation of these requirements, the following rules of conduct 
apply:
    (a) Except as specifically authorized in Sec. 266.4(b)(2) of this 
chapter, no employee shall disclose, directly or indirectly, the 
contents of any record about another individual to any person or 
organization. Managers are to provide guidance in this regard to all 
employees who must handle such information.
    (b) No employee will maintain a secret system of records about 
individuals. All records systems containing personally identifiable 
information about individuals must be reported to the Manager, Records 
Office.
    (c) All employees shall adhere strictly to the procedures 
established by the U.S. Postal Service to ensure the confidentiality and 
integrity of information about individuals that is collected, maintained 
and used for official Postal Service business. Employees shall be held 
responsible for any violation of these procedures.

[45 FR 44273, July 1, 1980, as amended at 60 FR 57346, Nov. 15, 1995; 68 
FR 56560, Oct. 1, 2003]



Sec. 268.2  Consequences of non-compliance.

    (a) The Privacy Act authorizes any individual, whether or not an 
employee, to bring a civil action in U.S. District Court to obtain 
judicial review of the failure of the Postal Service to comply with the 
requirements of the Act or its implementing regulations. In certain 
instances of willful or intentional non-compliance, the plaintiff may 
recover damages from the Postal Service in the minimum amount of $1,000 
together with costs of the action and attorney fees.
    (b) The Act provides criminal sanctions for individuals, including 
employees, who violate certain of its provisions.
    (1) Any officer or employee who, by virtue of his employment or 
position, has possession of, or access to, official records which 
contain individually identifiable information and who, knowing that 
disclosure of the specific material is prohibited by Postal Service 
regulations, willfully discloses the material to a person or agency not 
entitled to receive it, shall be guilty of a misdemeanor and fined not 
more than $5,000.
    (2) Any officer or employee who willfully maintains a system of 
records

[[Page 151]]

without meeting the notice requirements set forth in Postal Service 
regulations shall be guilty of a misdemeanor and fined not more than 
$5,000.
    (3) Any person who knowingly and willfully requests or obtains any 
record concerning another individual from the Postal Service under false 
pretense shall be guilty of a misdemeanor and fined not more than 
$5,000.
    (c) In addition to the criminal sanctions, any employee violating 
any provisions of these rules of conduct is subject to disciplinary 
action which may result in dismissal from the Postal Service.

[40 FR 45726, Oct. 2, 1975]



PART 273_ADMINISTRATION OF PROGRAM FRAUD CIVIL REMEDIES ACT--Table of
Contents



Sec.
273.1 Purpose.
273.2 Definitions.
273.3 Liability for false claims and statements.
273.4 Non-exclusivity of penalty authority.
273.5 Investigations of alleged violations.
273.6 Evaluation by reviewing official.
273.7 Concurrence of Attorney General.
273.8 Issuance of complaint.
273.9 Collection of civil penalties or assessments.
273.10 Reports.

    Authority: 31 U.S.C. Chapter 38; 39 U.S.C. 401.

    Source: 52 FR 12901, Apr. 20, 1987, unless otherwise noted.



Sec. 273.1  Purpose.

    This part establishes procedures for imposing civil penalties and 
assessments under the Program Fraud Civil Remedies Act of 1986 (codified 
at 31 U.S.C. 3801-3812) against any person who makes, submits, or 
presents, or causes to be made, submitted, or presented, a false 
fictitious, or fraudulent claim or written statement to the Postal 
Service. Procedures governing the hearing and appeal rights of any 
person alleged to be liable for such penalties and assessments are set 
forth in part 962 of this title.



Sec. 273.2  Definitions.

    (a) Claim means any request, demand, or submission:
    (1) Made to the Postal Service for property, services, or money 
(including money representing grants, loans, insurance, or benefits); or
    (2) Made to a recipient of property, services, or money from the 
Postal Service or to a party to a contract with the Postal Service:
    (i) For property or services if the United States:
    (A) Provided such property or services;
    (B) Provided any portion of the funds for the purchase of such 
property or services; or
    (C) will reimburse such recipient or party for the purchase of such 
property or services; or
    (ii) For the payment of money (including money representing grants, 
loans, insurance or benefits) if the United States:
    (A) Provided any portion of the money requested or demanded; or
    (B) Will reimburse such recipient or party for any portion of the 
money paid on such request or demand; or
    (3) Made to the Postal Service which has the effect of decreasing an 
obligation to pay or account for property, services, or money.
    (b) Complaint refers to the administrative Complaint served by the 
Reviewing Official on a Respondent pursuant to Sec. 273.8.
    (c) Investigating Official refers to the Inspector General of the 
Postal Service or any designee within the United States Office of the 
Inspector General who serves in a position for which the rate of basic 
pay is not less than the minimum rate of basic pay for grade GS-15 under 
the General Schedule.
    (d) Judicial Officer refers to the Judicial Officer or Acting 
Judicial Officer of the United States Postal Service or for purposes 
other than specified in Sec. 962.21 of this title any designee within 
the Judicial Officer Department.
    (e) Knows or has reason to know, for purposes of establishing 
liability under 31 U.S.C. 3802, means that, with respect to a claim or 
statement, although no proof of specific intent to defraud is required, 
a person:

[[Page 152]]

    (1) Has actual knowledge that the claim or statement is false, 
fictitious, or fraudulent;
    (2) Acts in deliberate ignorance of the truth or falsity of the 
claim or statement; or
    (3) Acts in reckless disregard of the truth or falsity of the claim 
or statement.
    (f) Person refers to any individual, partnership, corporation, 
association, or private organization.
    (g) Postmaster General refers to the Postmaster General of the 
United States or his designee.
    (h) Presiding Officer refers to an Administrative Law Judge 
designated by the Judicial Officer to conduct a hearing authorized by 31 
U.S.C. 3803 in accordance with Part 962 of this title.
    (i) Respondent refers to any person alleged to be liable for civil 
penalty or assessment under 31 U.S.C. 3802.
    (j) Reviewing Official refers to the General Counsel of the Postal 
Service or any designee within the Law Department who serves in a 
position for which the rate of basic pay is not less than the minimum 
rate of basic pay for grade GS-16 under the General Schedule.
    (k) Statement means any representation, certification, affirmation, 
document, record, or accounting or bookkeeping entry made:
    (1) With respect to a claim or to obtain the approval or payment of 
a claim (including relating to eligibility to make a claim); or
    (2) With respect to (including relating to eligibility for)--
    (i) A contract with, or a bid or proposal for a contract with; or
    (ii) A grant, loan, or benefit from, the Postal Service, or any 
State, political subdivision of a State, or other party, if the United 
States Government provides any portion of the money or property under 
such contract or for such grant, loan, or benefit, or if the Government 
will reimburse such State, political subdivision, or party for any 
portion of the money or property under such contract or for such grant, 
loan or benefit.

[52 FR 12901, Apr. 20, 1987, as amended at 56 FR 55825, Oct. 30, 1991; 
67 FR 16024, Apr. 4, 2002; 72 FR 39012, July 17, 2007]



Sec. 273.3  Liability for false claims and statements.

    Section 3802 of title 31, United States Code, provides for liability 
as follows:
    (a) Claims. (1) Any person who makes, presents, or submits, or 
causes to be made, presented, or submitted, a claim that the person 
knows or has reason to know--
    (i) Is false, fictitious, or fraudulent; or
    (ii) Includes or is supported by any written statement asserting a 
material fact which is false, fictitious, or fraudulent; or
    (iii) Includes or is supported by any written statement that--
    (A) Omits a material fact;
    (B) Is false, fictitious, or fraudulent as a result of such 
omission; and
    (C) Is a statement in which the person making, presenting, or 
submitting such statement has a duty to include such material fact; or
    (iv) Is for payment for the provision of property or services which 
the person has not provided as claimed

Shall be subject to, in addition to any other remedy that may be 
prescribed by law, a civil penalty of not more than $5,500 for each such 
claim.
    (2) Each voucher, invoice, claim form, or other individual request 
or demand for property, services, or money constitutes a separate claim.
    (3) A claim shall be considered made, presented, or submitted to the 
Postal Service, recipient, or party when such claim is actually made to 
an agent, fiscal intermediary, or other entity, including any State or 
political subdivision thereof, acting for or on behalf of the Postal 
Service, recipient, or party.
    (4) Each claim for property, services, or money is subject to the 
civil penalty referred to in paragraph (a)(1) of this section regardless 
of whether such property, service, or money is actually delivered or 
paid.
    (5) If the Government has made payment on a claim, a person subject 
to the civil penalty referred to in paragraph (a)(1) of this section 
shall also be subject to an assessment of not more than twice the amount 
of such claim or twice the amount of that portion thereof that is 
determined to be in violation of paragraph (a)(1) of this section. This 
assessment shall be in lieu of

[[Page 153]]

damages sustained by the United States because of such claim.
    (b) Statements. (1) Any person who makes, presents, or submits, or 
causes to be made, presented, or submitted, a written statement that--
    (i) The person knows or has reason to know--
    (A) Asserts a material fact which is false, fictitious, or 
fraudulent; or
    (B) Is false, fictitious, or fraudulent because it omits a material 
fact that the person making, presenting or submitting such statement had 
a duty to include in such statement; and
    (ii) Contains or is accompanied by an express certification or 
affirmation of the truthfulness and accuracy of the contents of the 
statement.

Shall be subject to, in addition to any other remedy that may be 
prescribed by law, a civil penalty of not more than $5,500 for each such 
statement.
    (2) Each written representation, certification, or affirmation 
constitutes a separate statement.
    (3) A statement shall be considered made, presented, or submitted to 
the Postal Service when such statement is actually made to an agent, 
fiscal intermediary, or other entity, including any State or political 
subdivision thereof, acting for or on behalf of the Postal Service.
    (c) In any case in which it is determined that more than one person 
is liable for making a claim or statement under this section, the civil 
penalty referred to in paragraph (a)(1) of this section may be imposed 
on each such person without regard to the amount of any penalties 
collected or demanded from others.
    (d) In any case in which it is determined that more than one person 
is liable for making a claim under this section on which the Government 
has made payment, an assessment may be imposed against any such person 
or jointly and severally against any combination of such persons. The 
aggregate amount of the assessments collected with respect to such claim 
shall not exceed twice the portion of such claim determined to be in 
violation of paragraph (a)(1) of this section.

[52 FR 12901, Apr. 20, 1987, as amended at 56 FR 55825, Oct. 30, 1991; 
61 FR 55750, Oct. 29, 1996]



Sec. 273.4  Non-exclusivity of penalty authority.

    (a) A determination by the Reviewing Official that there is adequate 
evidence to believe that a person is liable under 31 U.S.C 3802, or a 
final determination that a person is liable under such statute, may 
provide the Postal Service with grounds for commencing any 
administrative or contractual action against such person which is 
authorized by law and which is in addition to any action against such 
person under chapter 38 of title 31, United States Code.
    (b) In the case of an administrative or contractual action to 
suspend or debar any person from eligibility to enter into contracts 
with the Postal Service, a determination referred to in paragraph (a) of 
this section shall not be considered as a conclusive determination of 
such person's responsibility pursuant to Postal Service procurement 
regulations.



Sec. 273.5  Investigations of alleged violations.

    (a) Investigations of allegations of liability under 31 U.S.C. 3802 
shall be conducted by the Investigating Official.
    (b)(1) For purposes of an investigation under this part, the 
Investigating Official may issue a subpoena requiring the production of 
all information, documents, reports, answers, records, accounts, papers, 
and data not otherwise reasonably available to the Postal Service. Any 
subpoena issued by the Investigating Official under this authority shall 
cite 31 U.S.C. 3804(a) as the authority under which it is issued, shall 
be signed by the Investigating Official, and shall command each person 
to whom it is directed to produce the specified documentary material at 
a prescribed time and place.
    (2) In the case of contumacy or refusal to obey a subpoena issued 
pursuant to paragraph (b)(1) of this section, the district courts of the 
United States have jurisdiction to issue an appropriate order for the 
enforcement of such subpoena. Any failure to obey such order of the 
court may be punishable as contempt. In any case in which the Postal 
Service seeks the enforcement of a subpoena under this section,

[[Page 154]]

the Postal Service shall request the Attorney General to petition the 
district court for the district in which the person receiving the 
subpoena resides or conducts business to issue such an order.
    (c) Upon completing an investigation under this part, the 
Investigating Official shall submit to the Reviewing Official a report 
containing the findings and conclusions of his investigation, including:
    (1) A description of the claims or statements for which liability 
under 31 U.S.C. 3802 is alleged;
    (2) A description of any evidence which supports allegations of 
liability under 31 U.S.C. 3802, or where applicable, a description of 
any evidence that tends to support a conclusion that such statute has 
not been violated;
    (3) An estimate of the amount of money or the value of property or 
services allegedly requested or demanded in violation of 31 U.S.C. 3802;
    (4) A statement of any exculpatory or mitigating circumstances which 
may relate to the claims or statements under investigation;
    (5) A statement of the amount of penalties and assessments that, 
considering the information described in paragraphs (c) (3) and (4) of 
this section, the Investigating Official recommends be demanded from the 
person alleged to be liable; and
    (6) An estimate of the prospects of collecting the amount specified 
in paragraph (c)(5) of this section, and any reasons supporting such 
estimate.
    (d) Nothing in these regulations modifies any responsibility of the 
Investigating Official to report violations of criminal law to the 
Attorney General

[52 FR 12901, Apr. 20, 1987, as amended at 56 FR 55825, Oct. 30, 1991]



Sec. 273.6  Evaluation by reviewing official.

    (a) Based upon the investigatory report prepared by the 
Investigating Official, the Reviewing Official shall determine whether 
there is adequate evidence to believe that a person is liable under 31 
U.S.C. 3802, and, if so, whether prosecution would likely result in the 
imposition and collection of civil penalties and applicable assessments.
    (b) If the Reviewing Official determines that a case has merit and 
should be referred to the Judicial Officer for assignment to a Presiding 
Officer, he must first transmit to the Attorney General a written notice 
containing the following information:
    (1) A statement setting forth the Reviewing Official's reasons for 
proposing to refer the case to a Presiding Officer;
    (2) A description of the claims or statements for which liability 
under 31 U.S.C. 3802 is alleged;
    (3) A statement specifying the evidence that supports the 
allegations of liability;
    (4) An estimate of the amount of money or the value of property or 
services allegedly requested or demanded in violation of 31 U.S.C. 3802;
    (5) A statement of any exculpatory or mitigating circumstances which 
may relate to the claims or statements under investigation;
    (6) A statement of the amount of penalties and assessments that, 
considering the factors listed in paragraphs (b)(4) and (5) of this 
section, the Reviewing Official recommends be demanded from the person 
alleged to be liable; and
    (7) A statement that, in the opinion of the Reviewing Official, 
there is a reasonable prospect of collecting the amount specified in 
paragraph (b)(6) of this section and the reasons supporting such 
statement.
    (c) No allegations of liability under 31 U.S.C. 3802 with respect to 
any claim made, presented, or submitted by any person shall be referred 
to the Judicial Officer if the Reviewing Official determines that (1) an 
amount of money in excess of $150,000; or (2) property or service with a 
value in excess of $150,000 is requested or demanded in violation of 
section 3802 in such claim or in a group of related claims which are 
submitted at the time such claim is submitted.



Sec. 273.7  Concurrence of Attorney General.

    (a) The Attorney General is required by 31 U.S.C. 3803(b) to respond 
to the Reviewing Official's written notice described in Sec. 273.6 
within 90 days. The Reviewing Official may refer allegations of 
liability to the Judicial Officer

[[Page 155]]

only if the Attorney General or his designee approves such action in a 
written statement which specifies:
    (1) That the Attorney General or his designee approves the referral 
to the Judicial Officer of the allegations of liability set forth in the 
notice described in Sec. 273.6; and
    (2) That the initiation of a proceeding under the Program Fraud 
Civil Remedies Act is appropriate.
    (b) If at any time after the Attorney General approves the referral 
of a case to the Judicial Officer, the Attorney General or his designee 
transmits to the Postmaster General a written finding that the 
continuation of any proceeding under the Program Fraud Civil Remedies 
Act with respect to a claim or statement may adversely affect any 
pending or potential criminal or civil action related to such claim or 
statement, such proceeding shall be immediately stayed and may be 
resumed only upon written authorization of the Attorney General.



Sec. 273.8  Issuance of complaint.

    (a) If the Attorney General or his designee approves the referral of 
allegations of liability to the Judicial Officer, the Reviewing Official 
shall serve on the Respondent, pursuant to paragraph (b) of this 
section, a Complaint, which:
    (1) Specifies the allegations of liability against the Respondent, 
including the statutory basis for liability;
    (2) Identifies the claims or statements that are the basis for the 
alleged liability, and the reasons why liability allegedly arises from 
such claims or statements;
    (3) Specifies the amount of penalties or assessments the Postal 
Service seeks to impose;
    (4) Informs the Respondent of his right to request an oral hearing 
before, or a decision on the record by, a Presiding Officer concerning 
the allegations of liability and the amount of proposed penalties or 
assessments;
    (5) Informs the Respondent of how to request a hearing described in 
paragraph (a)(4) of this section;
    (6) Includes a copy of the procedures which govern hearings under 
the Program Fraud Civil Remedies Act, and which are set forth in part 
962 of this title; and
    (7) Notifies the Respondent that his or her failure to request a 
hearing on the issues raised by the Complaint within 30 days of its 
receipt may result in the imposition of the proposed penalty and 
assessments pursuant to Sec. Sec. 962.4(a) and 962.15(d) of this title.
    (b) Service of a Complaint issued under paragraph (a) of this 
section must be effected by registered or certified mail, return-receipt 
requested, or by personal delivery. In the case of personal service, the 
person making service shall, if possible, secure from the person sought 
to be served, or his or her agent, a written acknowledgment of receipt, 
showing the date and time of such receipt. If the person upon whom 
service is made declines to acknowledge receipt, the person effecting 
service shall execute a statement, indicating the time, place and manner 
of service, which shall constitute evidence of service.

[52 FR 12901, Apr. 20, 1987, as amended at 56 FR 55825, Oct. 30, 1991]



Sec. 273.9  Collection of civil penalties or assessments.

    (a) Any penalty or assessment imposed under the Program Fraud Civil 
Remedies Act may be recovered in a civil action brought by the Attorney 
General. In any such action, no matter that was raised or that could 
have been raised in a hearing conducted under part 962 of this title or 
pursuant to judicial review under 31 U.S.C. 3805 may be raised as a 
defense and the determination of liability and the determination of 
amounts of penalties and assessments shall not be subject to review. A 
civil action to recover a penalty or assessment shall be commenced 
within three years after the date on which the determination of 
liability for such penalty or assessment becomes final.
    (b) The amount of any penalty or assessment which has become final 
may be collected by administrative offset in accordance with 31 U.S.C 
3716, 3807.
    (c) Any penalty or assessment imposed by the Postal Service under 
this part shall be deposited in the Postal Service Fund established by 
section 2003 of title 39.

[[Page 156]]



Sec. 273.10  Reports.

    (a) Not later than October 31 of each year, the Postmaster General 
shall prepare and transmit to the appropriate committees and 
subcommittees of the Congress an annual report summarizing actions taken 
under the Program Fraud Civil Remedies Act during the most recent 12-
month period ending the previous September 30.
    (b) The report referred to in paragraph (a) of this section shall 
include the following information for the period covered by the report:
    (1) A summary of matters referred by the Investigating Official to 
the Reviewing Official under this part;
    (2) A summary of matters transmitted to the Attorney General under 
this part;
    (3) A summary of all hearings conducted by a Presiding Officer under 
part 962 of this title, and the results of such hearings; and
    (4) A summary of the actions taken during the reporting period to 
collect any civil penalty or assessment imposed under the Program Fraud 
Civil Remedies Act.



Damage to or Destruction of Firm Mailings--Table of Contents





PART 281_FIRM MAILINGS DAMAGED OR DESTROYED THROUGH TRANSPORTATION 
ACCIDENTS OR CATASTROPHES--Table of Contents



Sec.
281.1 Notification of firm mailers.
281.2 Action required by processing postal officials.
281.3 Postal inspector responsibilities.
281.4 Disclaimer.

    Authority: 39 U.S.C. 401, 403, and 404.



Sec. 281.1  Notification of firm mailers.

    Whenever bulk firm mail shipments are involved in transportation 
accidents or catastrophes, such as train or highway accidents, fire, 
flood, etc., it will be the responsibility of the sectional center 
director of customer services at the office of mailing to give known 
mailers timely notification of the incident and its effect on their mail 
shipment(s).

[39 FR 20974, June 17, 1974, as amended at 40 FR 2179, Jan. 10, 1975]



Sec. 281.2  Action required by processing postal officials.

    Postal officials processing salvable mail recovered from the scene 
of an accident or catastrophe are responsible for giving timely 
notification of the incident to the sectional center director of 
customer services at the office of mailing. The notification should 
include, but not be limited to:
    (a) The determinable names of the major mailers involved;
    (b) The nature and extent of damage or destruction;
    (c) Anticipated delivery delay; and
    (d) If known, the shipment delivery destination(s).

[39 FR 20974, June 17, 1974, as amended at 40 FR 2179, Jan. 10, 1975]



Sec. 281.3  Postal inspector responsibilities.

    The postal inspector investigating the incident should assure that 
the processing postal officials are fulfilling their notification 
responsibilities on a timely basis. Should the situation arise where no 
postal officials are involved in processing affected mail, then the 
investigating postal inspector will take necessary action to insure that 
appropriate notification is made.

[39 FR 20974, June 17, 1974]



Sec. 281.4  Disclaimer.

    The Postal Service will not be liable in damages for any loss 
occasioned by any failure to notify firm mailers in accordance with this 
part of damage to or destruction of firm mailings.

[39 FR 20974, June 17, 1974]

[[Page 157]]



        SUBCHAPTER E_RESTRICTIONS ON PRIVATE CARRIAGE OF LETTERS





PART 310_ENFORCEMENT OF THE PRIVATE EXPRESS STATUTES--Table of Contents



Sec.
310.1 Definitions.
310.2 Unlawful carriage of letters.
310.3 Exceptions.
310.4 Responsibility of carriers.
310.5 Payment of postage on violation.
310.6 Advisory opinions.
310.7 Amendment of regulations.

    Authority: 39 U.S.C. 401, 404, 601-606; 18 U.S.C. 1693-1699.

    Source: 39 FR 33211, Sept. 16, 1974, unless otherwise noted.



Sec. 310.1  Definitions.

    (a) Letter is a message directed to a specific person or address and 
recorded in or on a tangible object, subject to the following:
    (1) Tangible objects used for letters include, but are not limited 
to, paper (including paper in sheet or card form), recording disks, and 
magnetic tapes. Tangible objects used for letters do not include (i) 
objects the material or shape and design of which make them valuable or 
useful for purposes other than as media for long-distance 
communications, unless they are actually used as media for personal and 
business correspondence, and (ii) outsized, rigid objects not capable of 
enclosure in envelopes, sacks, boxes or other containers commonly used 
to transmit letters or packets of letters.
    (2) Message means any information or intelligence that can be 
recorded as described in paragraph (a)(4) of this section.
    (3) A message is directed to a ``specific person or address'' when, 
for example, it, or the container in which it is carried, singly or with 
other messages, identical or different, is marked for delivery to a 
specific person or place, or is delivered to a specific person or place 
in accordance with a selective delivery plan. Selective delivery plans 
include delivery to particular persons or addresses by use of detached 
address labels or cards; address lists; memorized groups of addresses; 
or ``piggy-backed'' delivery with addressed articles of merchandise, 
publications, or other items. Selective delivery plans do not include 
distributions of materials without written addresses to passersby on a 
particular street corner, or to all residents or randomly selected 
residents of an area. A message bearing the name or address of a 
specific person or place is a letter even if it is intended by the 
sender to be read or otherwise used by some person or persons other than 
or in addition to the addressee.
    (4) Methods by which messages are recorded on tangible objects 
include, but are not limited to, the use of written or printed 
characters, drawing, holes, or orientations of magnetic particles in a 
manner having a predetermined significance.
    (5) Whether a tangible object bears a message is to be determined on 
an objective basis without regard to the intended or actual use made of 
the object sent.
    (6) Identical messages directed to more than one specific person or 
address or separately directed to the same person or address constitute 
separate letters.
    (7) The following are not letters within the meaning of these 
regulations: \1\
---------------------------------------------------------------------------

    \1\ Several of the items enumerated in this paragraph (a)(7) do not 
self-evidently lie outside of the definition of ``letter''. To the 
extent, however, that there is any question whether these items may 
properly be excluded by definition, the Postal Service has determined by 
adoption of these regulations that the restrictions of the Private 
Express Statutes are suspended pursuant to 39 U.S.C. 601(b).
---------------------------------------------------------------------------

    (i) Telegrams.
    (ii) Checks, drafts, promissory notes, bonds, other negotiable and 
nonnegotiable financial instruments, stock certificates, other 
securities, insurance policies, and title policies when shipped to, 
from, or between financial institutions.
    (A) As used above, checks and drafts include documents intrinsically 
related to and regularly accompanying the

[[Page 158]]

movement of checks or drafts within the banking system. ``Checks'' do 
not include materials accompanying the movement of checks to financial 
institutions from persons who are not financial institutions, or vice 
versa, except such materials as would qualify under Sec. 310.3(a) if 
``checks'' were treated as cargo. Specifically, for example, ``checks'' 
do not include bank statements sent to depositors showing deposits, 
debits, and account balances.
    (B) As used above, financial institutions means:
    (1) As to checks and drafts: banks, savings banks, savings and loan 
institutions, credit unions, and their offices, affiliates, and 
facilities.
    (2) As to other instruments: institutions performing functions 
involving the bulk generation, clearance, and transfer of such 
instruments.
    (iii) Abstracts of title, mortgages and other liens, deeds, leases, 
releases, articles of incorporation, papers filed in lawsuits or formal 
quasi-judicial proceedings, and orders of courts and of quasi-judicial 
bodies.
    (iv) Newspapers and periodicals.
    (v) Books and catalogs consisting of 24 or more bound pages with at 
least 22 printed, and telephone directories. Separate letters of less 
than 24 bound and 22 printed pages bound to other material do not 
qualify for this exclusion. In determining whether separate letters have 
been bound to other material, the following factors will be considered, 
along with any other relevant factors: Whether the parts are visually 
similar; whether the parts were printed and bound together at the same 
time and by the same process; whether the binding serves an important 
purpose and has been a longstanding practice; and whether the same 
individual reads all parts of the bound document. Ordinarily, books and 
catalogs deal with matters of interest to, and are intended for, a 
substantial number of recipients. In addition, books generally contain a 
substantial number of pages. Accordingly, this exclusion will not apply 
when the nature of the message conveyed, the limited numbers of 
published copies and of recipients, the limited number of pages, or 
other relevant factors suggest that it is not appropriate to treat the 
material as a book or catalog. An item distributed privately, or 
privately and by mail, to fewer than 25 separate persons or places will 
generally not be treated as a book or catalog falling within this 
exclusion.
    (vi) Matter sent from a printer, stationer, or similar source, to a 
person ordering such matter for use as his letters. This exclusion 
applies whether or not the printer, stationer, or similar source is 
owned by or affiliated with the person who orders such matter for use as 
his letters.
    (vii) Letters sent to a records storage center exclusively for 
storage, letters sent exclusively for destruction, letters retrieved 
from a records storage center, and letters sent as part of a household 
or business relocation.
    (viii) Tags, labels, stickers, signs or posters the type-size, 
layout or physical characteristics of which indicate they are primarily 
intended to be attached to other objects for reading.
    (ix) Photographic material being sent by a person to a processor and 
processed photographic material being returned from the processor to the 
person sending the material for processing.
    (x) Copy sent from a person to an independent or company-owned 
printer or compositor, or between printers and compositors, and proofs 
or printed matter returned from the printer or compositor to the office 
of the person who initially sent the copy.
    (xi) Sound recordings, films, and packets of identical printed 
letters containing messages all or the overwhelming bulk of which are to 
be disseminated to the public. The ``public'' does not include 
individuals residing at the place of address; individuals employed by 
the organization doing business at the place of address (whether or not 
the actual place of employment is the place of address); individuals who 
are members of an organization, if an organization is located at the 
place of address; or other individuals who, individually or as members 
of a group, are reasonably identifiable to the sender.
    (xii) Computer programs recorded on media suitable for direct input. 
For the conditions under which the Private Express Statutes are 
suspended for data processing materials, see Sec. 320.2.

[[Page 159]]

    (b) Packet means two or more letters, identical or different, or two 
or more packets of letters, under one cover or otherwise bound together. 
As used in these regulations, unless the context otherwise requires, 
``letter'' or ``letters'' includes ``packet'' or ``packets''.
    (c) Person means an individual, corporation, association, 
partnership, governmental agency, or other organization or entity.
    (d) Post routes are routes on which mail is carried by the Postal 
Service, and includes post roads as defined in 39 U.S.C. 5003, as 
follows:
    (1) The waters of the United States, during the time the mail is 
carried thereon;
    (2) Railroads or parts of railroads and air routes in operation;
    (3) Canals, during the time the mail is carried thereon;
    (4) Public roads, highways, and toll roads during the time the mail 
is carried thereon; and
    (5) Letter-carrier routes established for the collection and 
delivery of mail.
    (e) Private carriage, private carrier, and terms of similar import 
used in connection with the Private Express Statutes or these 
regulations mean carriage by anyone other than the Postal Service, 
regardless of any meaning ascribed to similar terms under other bodies 
of law or regulation.
    (f) The Private Express Statutes are set forth in 18 U.S.C. 1693-
1699 and 39 U.S.C. 601-606 (1970).
    (g) The term identical printed letters includes letters that differ 
only in name, address or serial number.

[39 FR 33211, Sept. 16, 1974, as amended at 44 FR 52833, Sept. 11, 1979; 
45 FR 3034, Jan. 16, 1980; 45 FR 59873, Sept. 11, 1980; 48 FR 42354, 
Sept. 27, 1982]



Sec. 310.2  Unlawful carriage of letters.

    (a) It is generally unlawful under the Private Express Statutes for 
any person other than the Postal Service in any manner to send or carry 
a letter on a post route or in any manner to cause or assist such 
activity. Violation may result in injunction, fine or imprisonment or 
both and payment of postage lost as a result of the illegal activity 
(see Sec. 310.5).
    (b) Activity described in paragraph (a) of this section is lawful 
with respect to a letter if:
    (1)(i) The letter is enclosed in an envelope or other suitable 
cover;
    (ii) The amount of postage which would have been charged on the 
letter if it had been sent through the Postal Service is paid by stamps, 
or postage meter stamps, on the cover or by other methods approved by 
the Postal Service;
    (iii) The name and address of the person for whom the letter is 
intended appear on the cover;
    (iv) The cover is so sealed that the letter cannot be taken from it 
without defacing the cover;
    (v) Any stamps on the cover are canceled in ink by the sender; and
    (vi) The date of the letter, or of its transmission or receipt by 
the carrier, is endorsed on the cover in ink by the sender or carrier, 
as appropriate; or
    (2)(i) The activity is in accordance with the terms of a written 
agreement between the shipper or the carrier of the letter and the 
Postal Service. Such an agreement may include some or all of the 
provisions of paragraph (b)(1) of this section, or it may change them, 
but it must:
    (A) Adequately ensure payment of an amount equal to the postage to 
which the Postal Service would have been entitled had the letters been 
carried in the mail;
    (B) Remain in effect for a specified period (subject to renewals); 
and
    (C) Provide for periodic review, audit, and inspection.
    (ii) Possible alternative arrangements may include but are not 
limited to:
    (A) Payment of a fixed sum at specified intervals based on the 
shipper's projected shipment of letters for a given period, as verified 
by the Postal Service; or
    (B) Utilization of a computer record to determine the volume of 
letters shipped during an interval and the applicable postage to be 
remitted to the Postal Service.
    (c) The Postal Service may suspend the operation of any part of 
paragraph (b) of this section where the public interest requires the 
suspension.

[[Page 160]]

    (d) Activity described in paragraph (a) of this section is permitted 
with respect to letters which:
    (1) Relate to some part of the cargo of, or to some article carried 
at the same time by, the conveyance carrying it (see Sec. 310.3(a));
    (2) Are sent by or addressed to the carrier (see Sec. 310.3(b));
    (3) Are conveyed or transmitted without compensation (see Sec. 
310.3(c));
    (4) Are conveyed or transmitted by special messenger employed for 
the particular occasion only, provided that not more than twenty-five 
such letters are conveyed or transmitted by such special messenger (see 
Sec. 310.3(d)); or
    (5) Are carried prior or subsequent to mailing (see Sec. 310.3(e)).

[39 FR 33211, Sept. 16, 1974, as amended at 45 FR 77029, Nov. 21, 1980]



Sec. 310.3  Exceptions.

    (a) Cargo. The sending or carrying of letters is permissible if they 
accompany and relate in all substantial respects to some part of the 
cargo or to the ordering, shipping or delivering of the cargo.
    (b) Letters of the carrier. (1) The sending or carrying of letters 
is permissible if they are sent by or addressed to the person carrying 
them. If the individual actually carrying the letters is not the person 
sending the letters or to whom the letters are addressed, then such 
individual must be an officer or employee of such person (see Sec. 
310.3(b)(2)) and the letters must relate to the current business of such 
person.
    (2) The fact that the individual actually carrying the letters may 
be an officer or employee of the person sending the letters or to whom 
the letters are addressed for certain purposes does not necessarily mean 
that he is an officer or employee for purposes of this exception. The 
following factors bear on qualifications for the exception: the carrying 
employee is employed for a substantial time, if not fulltime (letters 
must not be privately carried by casual employees); the carrying 
employee carries no matter for other senders; the carrying employee is a 
regular salaried employee and shares in all privileges enjoyed by other 
regular employees (including employees not engaged primarily by the 
letter carrying function), including but not limited to salary, annual 
vacation time, absence allowed for illness, health benefits, workmen's 
compensation insurance, and retirement benefits.
    (3) Separately incorporated carriers are separate entities for 
purposes of this exception, regardless of any subsidiary, ownership, or 
leasing arrangement. When, however, two concerns jointly operate an 
enterprise with joint employees and share directly in its revenues and 
expenses, either of the concerns may carry the letters of the joint 
enterprise.
    (c) Private hands without compensation. The sending or carrying of 
letters without compensation is permitted. Compensation generally 
consists of a monetary payment for services rendered. Compensation may 
also consist, however, of non-monetary valuable consideration and of 
good will Thus, for example, when a business relationship exists or is 
sought between the carrier and its user, carriage by the carrier of the 
user's letter will ordinarily not fall under this exception; or, when a 
person is engaged in the transportation of goods or persons for hire, 
his carrying of letters ``free of charge'' for customers whom he does 
charge for the carriage of goods or persons does not fall under this 
exception.
    (d) Special messenger. (1) The use of a special messenger employed 
for the particular occasion only is permissible to transmit letters if 
not more than twenty-five letters are involved. The permission granted 
under this exception is restricted to use of messenger service on an 
infrequent, irregular basis by the sender or addressee of the message.
    (2) A special messenger is a person who, at the request of either 
the sender or the addressee, picks up a letter from the sender's home or 
place of business and carries it to the addressees home or place of 
business, but a messenger or carrier operating regularly between fixed 
points is not a special messenger.
    (e) Carriage prior or subsequent to mailing. (1) The private 
carriage of letters which enter the mail stream at some point between 
their origin and their destination is permissible. Except as provided in 
paragraph (e)(3) of this section, however, the carriage of letters

[[Page 161]]

from a place where they have been opened, read, separated, or otherwise 
utilized, does not fall within this exception even though such letters 
had previously been in the mail stream. Similarly, the carriage of 
letters to a place where they will be consolidated or otherwise utilized 
does not fall within this exception even though they will subsequently 
enter the mail stream.
    (2) Examples of permitted activities are the pickup and carriage of 
letters which are delivered to post offices for mailing; the pickup and 
carriage of letters at post offices for delivery to addressees; and the 
bulk shipment of individually addressed letters ultimately carried by 
the Postal Service.
    (3) The private carriage of letters from branches of an organization 
to a location for preparation for mailing does not constitute a 
consolidation. The private carriage of letters from an organization's 
point of mail delivery to its branches in the locality does not 
constitute a separation.

[39 FR 33211, Sept. 16, 1974, as amended at 44 FR 52834, Sept. 11, 1979; 
45 FR 59873, Sept. 11, 1980]



Sec. 310.4  Responsibility of carriers.

    Private carriers are cautioned to make sure that their carriage of 
matter is lawful within the definition, exceptions, suspension, and 
conditions contained in this part and in part 320 of this chapter. They 
should take reasonable measures to inform their customers of the 
contents of these regulations so that only proper matter is tendered to 
them for carriage. Carriers should desist from carrying any matter when 
the form of shipment, identity of sender or recipient, or any other 
information reasonably accessible to them indicates that matter tendered 
to them for carriage is not proper under these regulations.



Sec. 310.5  Payment of postage on violation.

    (a) Upon discovery of activity made unlawful by the Private Express 
Statutes, the Postal Service may require any person or persons who 
engage in, cause, or assist such activity to pay an amount or amounts 
not exceeding the total postage to which it would have been entitled had 
it carried the letters between their origin and destination.
    (b) The amount equal to postage will be due and payable not later 
than 15 days after receipt of formal demand from the Inspection Service 
or the Manager, Mailing Standards, USPS Headquarters, unless an appeal 
is taken to the Judicial Officer Department in accordance with rules of 
procedure set out in part 959 of this chapter.
    (c) Refusal to pay an unappealed demand or a demand that becomes 
final after appeal will subject the violator to civil suit by the Postal 
Service to collect the amount equal to postage.
    (d) The payment of amounts equal to postage on violation shall in no 
way limit other actions to enforce the Private Express Statutes by civil 
or criminal proceedings.

[39 FR 33211, Sept. 16, 1974, as amended at 69 FR 54006, Sept. 7, 2004; 
75 FR 12123, Mar. 15, 2010]



Sec. 310.6  Advisory opinions.

    An advisory opinion on any question arising under this part and part 
320 of this chapter may be obtained by writing the General Counsel, U.S. 
Postal Service, 475 L'Enfant Plaza SW., Washington, DC 20260-1100. A 
numbered series of advisory opinions is available for inspection by the 
public in the Library of the U.S. Postal Service, and copies of 
individual opinions may be obtained upon payment of charges for 
duplicating services.

[75 FR 12123, Mar. 15, 2010]



Sec. 310.7  Amendment of regulations.

    Amendments of the regulations in this part and in part 320 may be 
made only in accordance with the rulemaking provisions of the 
Administrative Procedure Act.

[40 FR 23295, May 29, 1975]



PART 320_SUSPENSION OF THE PRIVATE EXPRESS STATUTES--Table of Contents



Sec.
320.1 Definitions.
320.2 Suspension for certain data processing materials.
320.3 Operations under suspension for certain data processing materials.

[[Page 162]]

320.4 Suspension for certain letters of college and university 
          organizations.
320.5 Suspension for certain international-ocean carrier-related 
          documents.
320.6 Suspension for extremely urgent letters.
320.7 Suspension for advertisements accompanying parcels or periodicals.
320.8 Suspension for international remailing.
320.9 Revocation or amendment of suspensions.

    Authority: 39 U.S.C. 401, 404, 601-606; 18 U.S.C. 1693-1699.



Sec. 320.1  Definitions.

    The definitions in Sec. 310.1 apply to part 320 as well. \1\
---------------------------------------------------------------------------

    \1\ Several of the items enumerated in Sec. 310.1(a)(7) do not 
self-evidently lie outside of the definition of ``letter''. To the 
extent, however, that there is any question whether these items may 
properly be excluded by definition, the Postal Service has determined by 
adoption of these regulations that the restrictions of the Private 
Express Statutes are suspended pursuant to 39 U.S.C. 601(b).

[39 FR 33212, Sept. 16, 1974]



Sec. 320.2  Suspension for certain data processing materials.

    (a) The operation of 39 U.S.C. 601(a) (1) through (6) and Sec. 
310.2(b) (1) through (6) of this chapter is suspended on all post routes 
for data processing materials defined in paragraph (c) of this section 
on the terms detailed in paragraph (b) of this section, subject to the 
operating requirements in Sec. 320.3.
    (b) The suspension referred to in paragraph (a) of this section is 
for data processing materials conveyed (1) to a data processing center, 
if carriage is completed within 12 hours or by noon of the addressee's 
next business day and if data processing work is commenced on such 
materials within 36 hours of their receipt at the center; or (2) back 
from the data processing center to the address of the office originating 
the incoming materials, if carriage is completed within 12 hours or by 
noon of the addressee's next business day, and if data processing work 
was commenced on the incoming materials within 36 hours of their receipt 
at the center. For purposes of the time limitations for completion of 
delivery referred to in the preceding sentence, delivery of shipments 
between a domestic point and a foreign point shall be deemed to begin at 
the time materials of foreign origin are received at the international 
gateway city or end at the time materials of domestic origin leave the 
international gateway city. This suspension does not apply to carriages 
from or to originating offices that are neither part of the firm owning 
the data processing center nor data processing customers of the firm 
owning the data processing center.
    (c) For purposes of this suspension, (1) ``addressee's next business 
day'' means the first calendar day, stated in his local time, on which 
he conducts business, following the calendar day of dispatch, stated in 
the sender's local time; (2) ``data processing'' means electro-
mechanical or electronic processing and includes the recording of data 
by electro-mechanical or electronic means for further processing; and 
(3) ``data processing materials'' means materials of all types that are 
sent exclusively for data processing and are ready for immediate data 
processing, but only if they are produced recurringly in the course of 
the normal business operations of the office originating them or 
receiving them back from the processing center. The performance of 
clerical work which is merely preparatory and incidental to the 
commencement of data processing is not, for purposes of this suspension, 
inconsistent with the requirement that the materials be sent exclusively 
for data processing and be ready for immediate data processing.

[44 FR 52834, Sept. 11, 1979]



Sec. 320.3  Operations under suspension for certain data processing 
materials.

    (a) Carriers intending to establish or alter operations based on the 
suspension granted pursuant to Sec. 320.2 shall, as a condition to the 
right to operate under the suspension, notify the Manager, Mailing 
Standards, U.S. Postal Service, 475 L'Enfant Plaza SW, Rm. 3436, 
Washington, DC 20260-3436, of their intention to establish such 
operations not later than the beginning of such operations. Such 
notification, on a form available from the office of Mailing Standards, 
shall include information on the identity and authority

[[Page 163]]

of the carrier and the scope of its proposed operations.
    (b) Carriers operating under the suspension granted pursuant to 
Sec. 320.2 are responsible for making sure that their carriage of 
matter under the suspension meets all conditions contained in Sec. 
320.2. (See Sec. 310.4.) The containers or covers of any matter carried 
under the suspension must be made available for examination upon request 
by a properly identified representative of Mailing Standards. Carrier 
records--either in the form of notations on the containers or covers of 
any matter carried under the suspension granted pursuant to Sec. 320.2 
or in the form of records kept by employees of the actual times they 
make delivery or pickup stops--must be sufficient to show that the 
delivery of such matter was completed within the applicable time 
limitation prescribed in Sec. 320.2. The provisions of this paragraph 
shall not restrict the Postal Service in the exercise of search powers 
conferred upon it by law.
    (c) The filing of notifications under this section does not relieve 
the operator of responsibility for assuring that its operations conform 
to applicable statutes and regulations.
    (d) Failure to comply with the notification requirements of this 
section and carriage of material or other action in violation of other 
provisions of this part and of part 310 are grounds for administrative 
revocation of the suspension as to a particular carrier for a period of 
not less than one year, in a proceeding instituted by the General 
Counsel, following a hearing by the Judicial Officer Department in 
accordance with the rules of procedure set out in part 959 of this 
chapter.

    Note: The form referred to in Sec. 320.3 is reproduced below.

Notice of Intent To Establish Operations Under Suspension of the Private 
                          Express Statutes \1\
---------------------------------------------------------------------------

    \1\ Information relates exclusively to operations under the 
suspension for data processing materials. This form should be used for 
an initial notice of operations and for any amendments to the initial or 
subsequent notices.
---------------------------------------------------------------------------

    (see 39 CFR part 320, suspension of the private express statutes)

                       Private Carriage of Letters

Name of Carrier_________________________________________________________
Address_________________________________________________________________
State of Incorporation__________________________________________________
Geographical Area To Be Served__________________________________________

    1. Designate the specific markets or areas in which operations will 
be conducted.
    2. Describe specifically any authorizations issued by local, state, 
or federal regulatory agencies under which operations will be conducted.

                                                  (Signature of Officer)

                                                        (Name and Title)

    Subscribed and sworn to before me this ---- day of ----------, 197--
--.

                                                           Notary Public

    Seal

My commission expires___________________________________________________

    (Note: False statements contained herein are punishable by law, 18 
U.S.C. 1001.)

[39 FR 33212, Sept. 16, 1974; 39 FR 34533, Sept. 26, 1974, as amended at 
40 FR 23295, May 29, 1975; 44 FR 52835, Sept. 11, 1979; 69 FR 54006, 
Sept. 7, 2004; 75 FR 12123, Mar. 15, 2010]



Sec. 320.4  Suspension for certain letters of college and university
organizations.

    The operation of 39 U.S.C. 601(a) (1) through (6) and Sec. 310.2(b) 
(1) through (6) of this chapter is suspended on all post routes to 
permit colleges and universities to carry in their internal mail systems 
the letters of their bona fide student or faculty organizations to 
campus destinations. This suspension does not cover the letters of 
faculty members, students, or organizations other than bona fide student 
or faculty organizations of the carrying college or university. Colleges 
and universities choosing to provide their student or faculty 
organizations access to their internal mail systems are responsible for 
assuring that only letters of bona fide student or faculty organizations 
addressed to campus destinations are carried. (See Sec. 310.4.) For 
purposes of this suspension, ``internal mail systems'' are those which 
carry letters on, between, and among the various campuses of a single 
college or university and which operate in accordance with

[[Page 164]]

the Letters of the carrier exception in 39 CFR 310.3(b).

[44 FR 52835, Sept 11, 1979]



Sec. 320.5  Suspension for certain international-ocean carrier-related 
documents.

    The operation of 39 U.S.C. 601(a) (1) through (6) and Sec. 310.2(b) 
(1) through (6) of this chapter is suspended on all post routes for 
documents, sent by a shipper or an ocean carrier from a foreign origin 
to a United States ocean-carrier port city destination or from a United 
States ocean-carrier port city origin to a foreign destination, that 
would be excepted under Sec. 310.3(a) if the documents accompanied the 
cargo. This suspension covers only shipments to or from ports where the 
cargo to which the documents relate is actually loaded on, or unloaded 
from, an ocean vessel. For purposes of this suspension ``foreign 
origins'' or ``foreign destinations'' means origins or destinations 
outside the contiguous 48 states.

[44 FR 52835, Sept 11, 1979]



Sec. 320.6  Suspension for extremely urgent letters.

    (a) The operation of 39 U.S.C. 601(a) (1) through (6) and Sec. 
310.2(b) (1) through (6) of this chapter is suspended on all post routes 
for extremely urgent letters if the conditions of either paragraph (b) 
or (c) of this section, and of the other paragraphs of this section, are 
met.
    (b)(1) For letters dispatched within 50 miles of the intended 
destination, delivery of those dispatched by noon must be completed 
within 6 hours or by the close of the addressee's normal business hours 
that day, whichever is later, and delivery of those dispatched after 
noon and before midnight must be completed by 10 A.M. of the addressee's 
next business day. For other letters, delivery must be completed within 
12 hours or by noon of the addressee's next business day. The suspension 
is available only if the value or usefulness of the letter would be lost 
or greatly diminished if it is not delivered within these time limits. 
For any part of a shipment of letters to qualify under this paragraph 
(b), each of the letters must be extremely urgent.
    (2) Letters sent from the 48 contiguous states of the United States 
to other jurisdictions of the United States or to other nations are 
deemed ``delivered'' when they are in the custody of the international 
or overseas carrier at its last scheduled point of departure from the 48 
contiguous states. Letters sent from other jurisdictions of the United 
States or from other nations into the 48 contiguous states are deemed 
``dispatched'' when they are in the custody of the domestic carrier, 
having been passed by United States Customs, if applicable, at the 
letters' point of arrival in the 48 contiguous states.
    (3) Except as provided in this paragraph (b)(3), the times and time 
limits specified in paragraph (b)(1) of this section are not applicable 
to any locations outside the 48 contiguous states. The times and time 
limits specified in paragraph (b)(1) of this section are applicable to 
letters dispatched and delivered wholly within Alaska, Hawaii, Puerto 
Rico or a territory or possession of the United States. The regulations 
provided in paragraph (b)(2) of this section relating to the delivery 
and dispatch of letters are applicable by analogy to letters shipped 
between these jurisdictions and other nations.
    (c) It will be conclusively presumed that a letter is extremely 
urgent and is covered by the suspension if the amount paid for private 
carriage of the letter is at least three dollars or twice the applicable 
U.S. postage for First-Class Mail (including priority mail) whichever is 
the greater. If a single shipment consists of a number of letters that 
are picked up together at a single origin and delivered together to a 
single destination, the applicable U.S. postage may be computed for 
purposes of this paragraph as though the shipment constituted a single 
letter of the weight of the shipment. If not actually charged on a 
letter-by-letter or shipment-by-shipment basis, the amount paid may be 
computed for purposes of this paragraph on the basis of the carrier's 
actual charge divided by a bona fide estimate of the average number of 
letters or shipments during the period covered by the carrier's actual 
charge.

[[Page 165]]

    (d) The sender must prominently mark the outside covers or 
containers of letters carried under this suspension with the words 
``Extremely Urgent'' or ``Private Carriage Authorized by Postal 
Regulations (39 CFR 320.6)'' or with a similar legend identifying the 
letters as carried pursuant to this suspension. In addition, each 
outside container or cover must show the name and address of the 
carrier, and the name and address of the addressee. Carrier records must 
be sufficient to show that the delivery of the letters was completed 
within the applicable time limitations, if carried under the authority 
of paragraph (b) of this section, and must be made available for 
inspection at the request of the Postal Service. The required records 
may be either in the form of notations on the containers or covers of 
any letters asserted to be carried under this suspension, or in the form 
of records kept by employees of the actual times they pick up and 
deliver such materials.
    (e) Violation by a shipper or carrier of the terms of this 
suspension is grounds for administrative revocation of the suspension as 
to such shipper or carrier for a period of one year in a proceeding 
instituted by the General Counsel, following a hearing by the Judicial 
Officer Department in accordance with the rules of procedure set out in 
Part 959 of this chapter. The period of the revocation may be reduced or 
be extended for not to exceed one additional year by the Judicial 
Officer, depending on such mitigating or aggravating factors as the 
extent of the postal revenue lost because of the violation and the 
presence or absence of good faith error or of previous violations. The 
failure of a shipper or carrier to cooperate with an authorized 
inspection or audit conducted by the Postal Inspection Service for the 
purpose of determining compliance with the terms of this suspension 
shall be deemed to create a presumption of a violation for the purpose 
of this paragraph (e) and shall shift to the shipper or carrier the 
burden of establishing the fact of compliance. Revocation of this 
suspension as to a shipper or carrier shall in no way limit other 
actions as to such shipper or carrier to enforce the Private Express 
Statutes by administrative proceedings for collection of postage (see 
Sec. 310.5) or by civil or criminal proceedings.
    (f) The following examples illustrate the application of this 
suspension.

    Example (1). The headquarters of a city police department each night 
compiles a list of the license plate numbers and descriptions of 
automobiles reported stolen within the metropolitan area during the 
previous 24 hours. This list is delivered by 7 a.m. the following day to 
each of the local precinct offices located throughout the city. By 9 
a.m. that day, the list is circulated for use by law enforcement units 
operating from each office. Effective police recovery of stolen vehicles 
depends upon having this information handed out in written form to all 
units on at least a daily basis. The private carriage of these lists 
would qualify under the test set in paragraph (b) of this section.
    Example (2). The same police department headquarters also from time 
to time distributes memoranda advising the local precinct officers on 
departmental policy and vacation schedules, and responding to inquiries 
from the local precinct offices. Nothing substantial turns on whether 
these memoranda arrive by midnight or by 10 a.m. of the next business 
day or whether their transmission takes a day or more longer to 
complete. The private carriage of these memoranda would not qualify 
under the test set out in paragraph (b) of this section.
    Example (3). A health maintenance organization (HMO) operating its 
own hospital, clinics, and medical laboratory daily sends test samples 
and specimens from the HMO's hospital and clinics to its medical 
laboratory in a different location for immediate analysis. In return, 
the HMO laboratory sends to the HMO's hospital and clinics the 
laboratory reports for these samples and specimens on the day the 
reports are completed. The reports are then promptly utilized by the 
hospital and clinics as part of regular diagnostic procedures. The 
private carriage of these reports would qualify under the loss-of-value 
test set out in paragraph (b) of this section.
    Example (4). The same HMO's hospital and clinics send requisitions 
and invoices to the HMO's central office as the need arises for the 
ordering of and payment for goods and services, which are handled 
centrally. Every other Friday, the central office sends to the hospital 
and clinics reports and memoranda on expenditures for personnel, 
supplies, utilities, and other goods and services. Nothing substantial 
turns on whether these materials arrive the same day or by 10 a.m. of 
the next business day or whether their transmission takes a day or more 
longer to complete. The private carriage of these materials would not 
qualify under the test set out in paragraph (b) of this section.

[[Page 166]]

    Example (5). On Sunday, Tuesday, and Thursday evenings, the central 
office of a regional grocery store chain sends out to its various stores 
in the area inventory bulletins prepared over the previous 24 hours 
showing the current availability and prices of meat, produce, dairy 
products, breadstuffs, frozen foods and similar items. Early the 
following afternoon, each store must send these inventory bulletins back 
to the central office with a notation of the store's orders to assure 
that the central office can ship sufficient supplies of such items for 
sale by the store on its next business day. The private carriage of 
these bulletins would qualify under the test set out in paragraph (b) of 
this section.
    Example (6). On Sunday, Tuesday, and Thursday evenings, the central 
office of a different regional grocery chain sends out to its various 
stores in the area inventory bulletins showing the current availability 
and prices of meat, produce, dairy products, breadstuffs, frozen foods 
and similar items. Early in the afternoon of the second day following 
receipt of the bulletins, each store sends the bulletins back to the 
central office so that supplies of such items may be shipped to the 
store four days later. Nothing substantial turns on whether these 
bulletins arrive within 12 hours or by noon of the next business day or 
whether their transmission takes a day or more longer to complete. The 
private carriage of these materials would not qualify under the test set 
out in paragraph (b) of this section.
    Example (7). The headquarters office of a large bank each business 
day prepares and sends to its branch offices lists showing current 
foreign exchange rates and similar information that must be updated and 
distributed to the branches on a daily basis in order for the bank to 
avoid the risk of serious financial loss. Within three hours of their 
receipt by each branch office, these lists are circulated and utilized 
by officials of the branch office in conducting regular banking 
procedures involving the use of such lists. The private carriage of 
these lists would qualify under the test set out in paragraph (b) of 
this section.
    Example (8). The field office of an insurance company daily sends 
the insurance applications it has taken in that day to the company's 
central office. The applications are bound (i.e., constitute evidence of 
insurance) for 30 days, but may be canceled by the company. Few if any 
policies have been canceled by the company within 48 hours of their 
receipt at the central office, though the company normally begins 
processing the applications soon after their receipt. Nothing 
substantial turns on whether these bound applications arrive within 12 
hours or by noon of the next business day or whether their transmission 
takes a day or more longer to complete. The private carriage of these 
materials would not qualify under the test set out in paragraph (b) of 
this section.
    Example (9). An organization of real estate brokers in a community 
issues periodic bulletins containing information about properties which 
have been listed for sale by the constituent brokers. Each broker is 
entitled to show the properties to prospective buyers. In order to 
provide each broker with substantially equal opportunity to secure a 
buyer, it is necessary that the bulletins be delivered on the same day 
and within the shortest time span within that day. The bulletins 
constitute the basic source of information for the brokers and delivery 
in the foregoing manner is a key element in the functioning of the 
brokers. The private carriage of the bulletins would therefore qualify 
under the test set out in paragraph (b) of this section.
    Example (10). The same organization distributes memoranda regarding 
speakers at real estate seminars, sales figures for a given period, and 
other information of significance and interest to real estate brokers 
but which does not affect their competitive positions. A failure to make 
simultaneous or near simultaneous delivery to the brokers, or a failure 
to make delivery within a specified period of time, has no material 
bearing upon the day-to-day operations of the brokers and private 
carriage of these materials would not qualify under the test set out in 
paragraph (b) of this section.

[44 FR 61181, Oct. 24, 1979]



Sec. 320.7  Suspension for advertisements accompanying parcels or 
periodicals.

    (a) The operation of 39 U.S.C. 601(a) (1) through (6) and Sec. 
310.2(b) (1) through (6) of this chapter is suspended on all post routes 
for advertisements enclosed with merchandise in parcels or accompanying 
periodicals under the following circumstances:
    (1) The advertisements must not be marked with the names or 
addresses of the intended recipients.
    (2) The advertisements must be incidental to the shipment of the 
merchandise or the periodical.
    (i) An advertisement is incidental to the shipment of the 
accompanying merchandise or the periodical when the merchandise or the 
periodical has been ordered by or would otherwise be sent to the 
recipient even without the accompanying advertisement.
    (ii) Notwithstanding Sec. 320.7(a)(2)(i), an advertisement is not 
incidental to the merchandise when the pertinent circumstances, such as 
the nominal value

[[Page 167]]

of the merchandise, its shipment on an unsolicited basis, or its status 
as a sample, reasonably indicate that the shipper's primary purpose is 
the conveyance of the advertisement itself and that the merchandise is 
merely an adjunct to the advertisement.
    (b) An item is an advertisement if its primary purpose is to cause 
or induce the purchase of goods or services from the shipper or others.

[45 FR 59874, Sept. 11, 1980]



Sec. 320.8  Suspension for international remailing.

    (a) The operation of 39 U.S.C. 601(a)(1) through (6) and Sec. 
310.2(b)(1) through (6) of this chapter is suspended on all post routes 
to permit the uninterrupted carriage of letters from a point within the 
United States to a foreign country for deposit in its domestic or 
international mails for delivery to an ultimate destination outside the 
United States.

    Example (1). The letters to overseas customers of commercial firm A 
in Chicago are carried by Carrier B to New York where they are delivered 
to Carrier C for carriage to Europe. Carrier C holds the letters in its 
distribution center overnight, then sorts them by country of destination 
and merges them with letters of other firms to those countries before 
starting the carriage to Europe in the morning. The carriage of firm A's 
letters is not interrupted. The suspension for international remailing 
applies to the carriage by Carrier B and by Carrier C.
    Example (2). The bills addressed to foreign customers of the Chicago 
branch office of commercial firm D are carried by Carrier E to New York 
where they are delivered to the accounting department of firm D's home 
office. The accounting department uses the information in the bills to 
prepare its reports of accounts receivable. The bills are then returned 
to Carrier E which carries them directly to Europe where they are 
entered into the mails of a foreign country. The carriage of the bills 
from Chicago to Europe is interrupted in New York by the delivery to 
firm D's home office. The suspension for international remailing does 
not apply to the carriage from Chicago to New York. It does apply to the 
subsequent carriage from New York to Europe.

    (b) This suspension shall not permit the shipment or carriage of a 
letter or letters out of the mails to any foreign country for subsequent 
delivery to an address within the United States.

    Example (1). A number of promotional letters originated by firm F in 
Los Angeles are carried by Carrier G to Europe for deposit in the mails 
of a foreign country. Some of the letters are addressed to persons in 
Europe, some to persons in the United States. The suspension for 
international remailing does not apply to the letters addressed to 
persons in the United States.

    (c) Violation by a shipper or carrier of the terms of this 
suspension is grounds for administrative revocation of the suspension as 
to such shipper or carrier for a period of one year in a proceeding 
instituted by the General Counsel in accordance with part 959 of this 
chapter. The failure of a shipper or carrier to cooperate with an 
inspection or audit authorized and conducted by the Postal Inspection 
Service for the purpose of determining compliance with the terms of this 
suspension shall be deemed to create a presumption of a violation for 
the purpose of this paragraph (c) and shall shift to the shipper or 
carrier the burden of establishing the fact of compliance. Revocation of 
this suspension as to a shipper or carrier shall in no way limit other 
actions as to such shipper or carrier to enforce the Private Express 
Statutes by administrative proceedings for collection of postage (see 
Sec. 310.5) or by civil or criminal proceedings.

[51 FR 29638, Aug. 20, 1986]



Sec. 320.9  Revocation or amendment of suspensions.

    These suspensions may be revoked or amended in accordance with Sec. 
310.7. No revocation of the suspension provided in Sec. 320.2 will 
curtail operations of particular carriers existing at the time of the 
revocation to a level of operations (in dollar or volume terms, 
whichever is larger) lower than that antedating the revocation in a 
particular market served prior to the revocation. Should the suspension 
referred to in Sec. 320.2 be revoked, carriers, as a condition to 
continuing operations under this section, will be required to provide 
reasonably complete and accurate data to support estimates of past 
operating levels in particular markets.

[44 FR 52835, Sept. 11, 1979. Redesignated at 44 FR 61181, Oct. 24, 
1979]

[[Page 168]]



                         SUBCHAPTER F_PERSONNEL





PART 447_RULES OF CONDUCT FOR POSTAL EMPLOYEES--Table of Contents



                 Subpart A_Applicability and Definitions

Sec.
447.11 Applicability.
447.12 Definitions.

                       Subpart B_Employee Conduct

447.21 Prohibited conduct.

    Subpart C_Ethical Conduct Advisory Services and Post-Employment 
                               Activities

447.31 Advisory service.
447.32 Post-employment activities.

                     Subpart D_Political Activities

447.41 General.
447.42 Additional prohibited political activities.
447.43 Investigation and enforcement.

              Subpart E_Participation in Community Affairs

447.51 General.
447.52 Holding of State or local office by Postal Service employees.

             Subpart F_Bribery, Undue Influence, or Coercion

447.61 General.

    Authority: 39 U.S.C. 401.

    Source: 39 FR 1990, Jan. 16, 1974, unless otherwise noted.



                 Subpart A_Applicability and Definitions

    Source: 60 FR 47243, Sept. 11, 1995, unless otherwise noted.



Sec. 447.11  Applicability.

    This part contains rules of conduct for the employees of the Postal 
Service. Employees are required to comply with the regulations in this 
part, and violations of the regulations may be cause for disciplinary 
action. The regulations in this part are in addition to other rules of 
conduct provided by applicable statutes, regulations, or Postal Service 
handbooks and manuals. For applicable rules of ethical conduct, 
employees are referred to the Standards of Ethical Conduct for Employees 
of the Executive Branch, 5 CFR part 2635, and Postal Service regulations 
supplemental thereto, 5 CFR part 7001.



Sec. 447.12  Definitions.

    The following definitions apply for purposes of this part.
    (a) Postal Service. The United States Postal Service as established 
by 39 U.S.C. 201.
    (b) Employee. An individual appointed to a position, temporary or 
permanent, within the Postal Service, or hired as an executive under an 
employment contract, including a substitute or a special employee as 
defined by 18 U.S.C. 202(a). The term ``employee'' does not include the 
Governors of the Postal Service.



                       Subpart B_Employee Conduct



Sec. 447.21  Prohibited conduct.

    (a) An employee must not engage, either on a paid or unpaid basis, 
in teaching, lecturing, or writing for the purpose of the special 
preparation of a person or class of persons for an examination of the 
Office of Personnel Management or Board of Examiners for the Foreign 
Service, or for appointment in the U.S. Postal Service, when these 
activities are dependent on information obtained as a result of his or 
her employment with the Postal Service, except when that information has 
been made available to the general public, or will be made available on 
request, or when the Postmaster General gives written authorization that 
the use of nonpublic information is in the public interest.
    (b) No employee shall take sick leave to enable himself to engage in 
outside work.
    (c) No employee while acting in his official capacity shall directly 
or indirectly authorize, permit, or participate in any action, event or 
course of conduct which subjects any person to discrimination, or 
results in any person being discriminated against, on the

[[Page 169]]

basis of race, color, religion, sex, national origin, or age.
    (d) No employee shall engage in criminal, dishonest, notoriously 
disgraceful or immoral conduct, or other conduct prejudicial to the 
Postal Service. Conviction of a violation of any criminal statute may be 
grounds for disciplinary action by the Postal Service in addition to any 
other penalty imposed by or pursuant to statute.
    (e) No employee shall habitually use intoxicating beverages to 
excess. No employee shall drink beer, wine, or other intoxicating 
beverages while on duty. No employee shall begin work or return to duty 
while intoxicated. No employee shall drink intoxicating beverages in a 
public place while in uniform. Unless the Postmaster General 
specifically authorizes an exception (as in the case, for example, of an 
official reception) no employee shall have or bring any container of 
beer, wine, or other intoxicating beverage on premises occupied by a 
postal facility, whether or not the container has been opened.
    (f) Illegal use of drugs may be grounds for removal from the Postal 
Service.
    (g) No employee while on property owned or leased by the Postal 
Service or the United States or while on duty, shall participate in any 
gambling activity, including the operation of a gambling device, in 
conducting or acting as an agent for a lottery or pool, in conducting a 
game for money or property, or in selling or purchasing a numbers slip 
or ticket.
    Note: Paragraph (g) of this section does not prohibit participation 
in activities specified herein if participation is necessitated by an 
employee's law enforcement duties, or if participation is in accordance 
with section 7 of Executive Order No. 12353, of March 23, 1982, relating 
to agency-approved solicitations.

[39 FR 1990, Jan. 16, 1974; 39 FR 3677, Jan. 28, 1974, as amended at 48 
FR 48231, Oct. 18, 1983. Redesignated and amended at 60 FR 47244, Sept. 
11, 1995; 72 FR 49195, Aug. 28, 2007]



    Subpart C_Ethical Conduct Advisory Services and Post-Employment 
                               Activities



Sec. 447.31  Advisory service.

    (a) The Ethical Conduct Officer is responsible for the 
administration of the ethics program of the Postal Service. In the 
exercise of that responsibility, the Ethical Conduct Officer shall 
coordinate the advisory service provided by this section, assure that 
authoritative interpretations of the Standards of Ethical Conduct for 
Employees of the Executive Branch (Standards) and Supplemental Postal 
Service Regulations (Supplemental Regulations) are available to the 
Associate Ethical Conduct Officers, and render final rulings on behalf 
of the Postal Service in appeals by employees from rulings under the 
Standards and Supplemental Regulations made by an agency designee. The 
Ethical Conduct Officer shall provide advice and guidance for the 
Postmaster General and all Associate Ethical Conduct Officers concerning 
questions arising under the Standards and Supplemental Regulations. The 
Ethical Conduct Officer may delegate to an Assistant Ethical Conduct 
Officer authority to perform any duty or function vested in him or her 
by this Section. The General Counsel is the Ethical Conduct Officer of 
the Postal Service and the Designated Agency Ethics Official for 
purposes of the Ethics in Government Act, as amended, and implementing 
regulations of the Office of Government Ethics, including 5 CFR part 
2638.
    (b) The Deputy Postmaster General is the Associate Ethical Conduct 
Officer for the Office of the Postmaster General and the Office of the 
Deputy Postmaster General. The Chief Operating Officer, Senior Vice 
Presidents, Vice Presidents, and such other persons as the Ethical 
Conduct Officer may designate are Associate Ethical Conduct Officers for 
their respective organizational elements. Each Associate Ethical Conduct 
Officer shall designate a suitable employee to coordinate the ethics 
program within his or her organization and to act as liaison with the 
Ethical Conduct Officer. Each Associate may designate other suitable 
employees to assist or act for him or

[[Page 170]]

her and shall ensure that there is an adequate number of Qualified 
Ethics Trainers to comply with the requirements of the annual ethics 
training program.
    (c) The Ethical Conduct Officer and, with his or her approval, 
Associate Ethical Conduct Officers, may delegate to additional persons 
or classes of persons the authority to make determinations, to give 
approval, or to take other action in accordance with the Standards of 
Ethical Conduct, as is contemplated by 5 CFR 2635.102(b), defining 
``agency designee.''
    (d) An employee may obtain advice and guidance on questions of 
conflicts of interest from the Ethical Conduct Officer or the Associate 
Ethical Conduct Officer having appropriate jurisdiction. In order to 
avoid undue interference with established grievance and disciplinary 
procedures, advisory service under this subpart will not normally be 
available in an instance in which a grievance is pending or disciplinary 
action has been initiated.
    (e) An employee may request any ruling provided for by the Standards 
and Supplemental Regulations by submitting a request in writing to the 
Senior Counsel, Ethics, or, in the field, to the Chief Field Counsel or 
Deputy Chief Field Counsel, General Law.
    (f) An employee may appeal to the Ethical Conduct Officer from a 
ruling made by an agency designee concerning matters covered by the 
Standards and Supplemental Regulations within 30 days from the date of 
the ruling. The appeal must be in writing and must contain a full 
statement of the relevant facts. It should be addressed to the Ethical 
Conduct Officer, U.S. Postal Service, Washington, DC 20260, and a copy 
thereof should be sent to the official whose ruling is being appealed.

[60 FR 47244, Sept. 11, 1995]



Sec. 447.32  Post-employment activities.

    (a) Restrictions on the post-employment activities of persons who 
have been employed by the Postal Service are imposed by 18 U.S.C. 207. 
The Ethics Reform Act of 1989 includes amendments to 18 U.S.C. 207, 
which became effective January 1, 1991. Employees who terminated their 
employment prior to January 1, 1991, are subject to the restrictions 
imposed under 18 U.S.C. 207 in effect prior to that date, while all 
other employees are subject to the restrictions imposed under 18 U.S.C. 
207 as amended.
    (b) The Office of Government Ethics has issued regulations, 
contained in 5 CFR part 2637, that implement 18 U.S.C. 207 as in effect 
prior to January 1, 1991. Employees who terminated their employment with 
the Postal Service prior to January 1, 1991, may refer to 5 CFR part 
2637 for guidance concerning applicable post-employment restrictions, 
and further guidance may be obtained in accordance with Sec. 447.31 of 
this part.
    (c) Employees who terminate their postal employment on or after 
January 1, 1991, are subject to 18 U.S.C. 207 as amended. Guidance 
concerning post-employment restrictions applicable to such employees may 
be obtained in accordance with Sec. 447.31 of this part.

[60 FR 47244, Sept. 11, 1995]



                     Subpart D_Political Activities



Sec. 447.41  General.

    (a) Postal Service employees, except those mentioned in paragraph 
(b) of this section, are subject, at all times to restrictions on their 
participation in political activity (5 U.S.C. subchapter III of chapter 
73, and 18 U.S.C. 602, 603, and 607), and to the regulations issued by 
the Office of Personnel Management relating thereto.
    (b) Those Postal Service employees who are employed on an irregular 
or occasional basis; e.g., experts and consultants, substitute rural 
carriers, others on a per diem basis, and without compensation or when 
actually employed employees, are subject to the restrictions mentioned 
in paragraph (a) of this section only while in an active duty status and 
only for the entire 24 hours of any day of actual employment. 
Notwithstanding this paragraph, full-time employees in a leave status 
and part-time employees are fully subject to the restrictions of 
paragraph (a) of this section.

[39 FR 1990, Jan. 16, 1974, as amended at 48 FR 48231, Oct. 18, 1983. 
Redesignated at 60 FR 47245, Sept. 11, 1995]

[[Page 171]]



Sec. 447.42  Additional prohibited political activities.

    (a) In addition to the restrictions on political activities 
mentioned in Sec. 447.51, an employee may not:
    (1) Display a political picture or sticker on property owned or 
leased by the Postal Service. He is not forbidden by this paragraph, 
however, from displaying a picture, including a personally autographed 
picture of a political figure in his office or place of work if it has 
no language in the nature of political campaigning;
    (2) Wear a political badge or button while in uniform or while on 
duty when that duty requires him to deal with the public or be in the 
view of the public;
    (3) Display a political picture or sticker on his private vehicle 
while that vehicle is being used for official postal purposes.

[39 FR 1990, Jan. 16, 1974. Redesignated at 60 FR 47245, Sept. 11, 1995]



Sec. 447.43  Investigation and enforcement.

    The Office of the Special Counsel and the Merit Systems Protection 
Board investigate and adjudicate allegations of political activity in 
violation of the regulations of the Office of Personnel Management by 
Postal Service employees. For jurisdiction in such a case, see 5 CFR 
734.102 and part 1201.

[60 FR 47245, Sept. 11, 1995]



              Subpart E_Participation in Community Affairs



Sec. 447.51  General.

    An employee is permitted to participate in community affairs to the 
extent consistent with the proper performance of his postal duties and 
with applicable laws and regulations. Nothing in this section shall 
prevent an employee from serving as an official of a religious or 
fraternal organization or of a civil nonpolitical organization which is 
supported by dues or contributions from its own members.

[39 FR 1990, Jan. 16, 1974. Redesignated at 60 FR 47245, Sept. 11, 1995]



Sec. 447.52  Holding of State or local office by Postal Service employees.

    (a) An employee may seek, accept, or hold a nonpartisan State or 
local office subject to the provisions of this Code and in particular 
this section. A ``nonpartisan'' office is one filled by a ``nonpartisan 
election'', which is an election at which none of the candidates are to 
be nominated or elected as representing a political party any of whose 
candidates for presidential elector received votes in the last preceding 
election at which presidential electors were selected.
    (b) An employee who wishes to seek, accept, or hold a nonpartisan 
State or local office is responsible for ascertaining:
    (1) Whether the office is ``nonpartisan'' within the definition in 
Sec. 447.62(a).
    (2) Whether State or local law permits a Postal Service employee to 
seek, accept, or hold the particular office.
    (3) Whether the duties of the office would result in a conflict with 
his Postal Service employment.
    (4) Whether the discharge of the duties of the office would 
interfere with the performance by the particular employee of his Postal 
Service duties in an acceptable manner or would interfere with the 
performance by other Postal Service employees of their respective duties 
in an acceptable manner.
    (c) An employee is encouraged to seek advice from his Associate 
Ethical Conduct Counselor prior to taking any action to seek, accept, or 
hold a State or local office. If, after the employee has entered upon 
the discharge of the duties of this non-postal office, his non-postal 
duties interfere with the proper discharge of postal duties, either by 
him or by other postal employees, the employee holding the non-postal 
office shall be advised by his superior to eliminate the interference, 
either by resignation from the non-postal office, or in such other 
manner as is appropriate under the circumstances. If the employee fails, 
refuses, or neglects to comply with the foregoing advice and the 
interference continues, he will be subject to disciplinary proceedings.

[[Page 172]]

    (d) Employees, other than postmasters or acting postmasters in a 
salary level of EAS-25 or higher, may be granted permission to campaign 
for a full-time State or local nonpartisan office while on annual leave 
or on authorized leave without pay during the campaign when:
    (1) The criteria in paragraphs (b) (1) and (2) of this section are 
met, and
    (2) The Vice President, Area Operations, determines that the 
employee's postal responsibilities are being conducted in a satisfactory 
manner and that the absence of the employee during the campaign period 
will not disrupt the operation of the facility where he or she is 
employed.

    Note: Requests shall be submitted through the postmaster or other 
installation head to the Vice President, Area Operations. If the 
employee is elected to and takes such a full-time office, he or she may 
either be separated from the Postal Service or granted leave without 
pay.

    (e) A postmaster or acting postmaster in salary level EAS-25 or 
higher shall not be authorized to take annual leave or leave without pay 
for the purpose of campaigning for a full-time State or local 
nonpartisan office.

[39 FR 1990, Jan. 16, 1974, as amended at 48 FR 48231, Oct. 18, 1983. 
Redesignated and amended at 60 FR 47245, Sept. 11, 1995]



             Subpart F_Bribery, Undue Influence, or Coercion



Sec. 447.61  General.

    (a) An employee shall report immediately to the General Counsel, 
U.S. Postal Service, Washington, DC 20260:
    (1) Any instance in which a person either within or outside the 
Postal Service uses or attempts to use a bribe, undue influence, or 
coercion to induce or attempt to induce the employee to act or neglect 
to act in regard to his official responsibilities; and
    (2) Any information that causes him to believe that there has been a 
violation of a Federal criminal statute or any law or regulation 
directly or indirectly related to the responsibilities of the Postal 
Service. A copy of a report made under this paragraph shall also be sent 
by the employee to the Chief Postal Inspector, Washington, DC 20260. The 
report shall be sent in a sealed envelope clearly marked ``Limited 
Official Use--To Be Opened by Addressee Only''.

[39 FR 1990, Jan. 16, 1974. Redesignated at 60 FR 47245, Sept. 11, 1995]



PART 491_GARNISHMENT OF SALARIES OF EMPLOYEES OF THE POSTAL SERVICE AND
THE POSTAL RATE COMMISSION--Table of Contents



Sec.
491.1 Authorized Agent to receive service.
491.2 Manner of service.
491.3 Sufficient legal form.
491.4 Identification of employees.
491.5 Costs.
491.6 Response to process.
491.7 Release of information.
491.8 Execution of process.
491.9 Restrictions on garnishment.

    Authority: 5 U.S.C. 5520a; 39 U.S.C. 401; E.O.12897, 59 FR 5517, 3 
CFR, 1994 Comp., p. 858.

    Source: 63 FR 67403, Dec. 7, 1998, unless otherwise noted.



Sec. 491.1  Authorized Agent to receive service.

    Notwithstanding the designation, in Sec. 2.2 of this chapter, of 
the General Counsel as agent for the receipt of legal process against 
the Postal Service, the sole agent for service of garnishment process 
directed to the pay of Postal Service employees and employees of the 
Postal Rate Commission (``employees'') is the Manager, Payroll 
Processing Branch, 2825 Lone Oak Parkway, Eagan, MN 55121-9650 
(``Authorized Agent''). The Authorized Agent shall have sole authority 
to receive service of legal process in the nature of garnishment 
(hereinafter sometimes referred to as ``process'') arising under the law 
of any state, territory, or possession, or the order of a court of 
competent jurisdiction of any state, territory, or possession (including 
any order for child support and alimony or bankruptcy). The Authorized 
Agent may not receive or transmit service of process in a private legal 
matter on behalf of an employee. No process shall be effectively served 
until it is received by the Authorized Agent or his designee. No other 
employee shall have the authority to accept service of such

[[Page 173]]

process. Service of process in conformity with Rule 4(i) of the Federal 
Rules of Civil Procedure (28 U.S.C. Appendix) is not waived for any suit 
or action wherein the Postal Service, its officers, or employees are 
parties. Any Order, issued in bankruptcy, for the withholding of sums 
from pay due an employee and which is directed to the Postal Service for 
handling outside the voluntary allotment procedure, is legal process 
subject to the provisions of these regulations.



Sec. 491.2  Manner of service.

    Service of process on the Authorized Agent or his designee may be 
made in person or by certified or registered mail, with return receipt 
requested, at the address of the Authorized Agent. Service may also be 
made on the Authorized Agent by means of any private delivery service 
pursuant to its authority for the private carriage of letters under an 
exception to the Private Express Statutes, 39 U.S.C. 601-606, provided 
that the private delivery organization issues a receipt bearing the name 
and address of both the addressee and sender, as well as the date of 
delivery and the signature of the receiving agent. No garnishment is 
effectively served until it is received by the Authorized Agent or his 
designee regardless of the chosen mode of delivery. Process addressed 
to, delivered to, or in any manner given to any employee, other than the 
Authorized Agent or his designee, may, at the sole discretion of the 
employee, be returned to the issuing court marked ``Not Effectively 
Served.'' A copy of or reference to these regulations may be included. 
Employees are not authorized to redirect or forward garnishment process 
to the Authorized Agent. In the event that the address of the Authorized 
Agent is changed, mail may be forwarded from his last published address 
to his new official address until such time as these regulations are 
amended to reflect the new address.



Sec. 491.3  Sufficient legal form.

    No document purporting to garnish employee wages shall be deemed 
sufficient unless it can be determined from the face of the document 
that it is legal process in the nature of garnishment; that it is issued 
by a court of competent jurisdiction or an authorized official pursuant 
to an order of such a court or pursuant to federal, state or local law, 
evidenced by a signature of the issuing person; and that it contains the 
name of the garnished party, with his or her social security number, 
orders the employing agency to withhold from pay a specific amount of 
money, specifically describes the judgment of debt or administrative 
action complete with statutory citation and contains specific advice as 
to where to send the funds as they are periodically withheld including 
the complete Zip Code (Zip + 4). When there is a suggestion that the 
employee is under the jurisdiction of a bankruptcy proceeding, the 
creditor must provide documentary evidence to prove that his legal 
process is not in violation of the bankruptcy court's jurisdiction 
before the creditor's garnishment may be processed. Documents deficient 
in any of these respects may be returned to the issuing court or 
authorized official inscribed ``Insufficient as to legal form.''



Sec. 491.4  Identification of employees.

    Garnishments must be accompanied by sufficient information to permit 
prompt identification of the employee and the payments involved. 
Garnishment of an employee whose name and social security number is 
similar to but not identical with the name and social security number on 
the garnishment will not be processed. An exact match of both name and 
social security number is required in order to permit processing; 
otherwise, the garnishment will be returned marked ``Insufficient 
identifying information.'' Garnishments which are insufficient in regard 
to identifying information will not be held pending receipt of further 
information and must be served again when the proper information is 
obtained.



Sec. 491.5  Costs.

    The Postal Service's administrative costs in executing the 
garnishment action shall be added to each garnishment and the costs 
recovered shall be retained as offsetting collections. The Postal 
Service reserves the right to redetermine the administrative cost of

[[Page 174]]

any garnishment if, in administering any garnishment, extra costs beyond 
those normally encountered are incurred, and add the extra cost to each 
garnishment. The extra costs recovered shall be retained as offsetting 
collections.



Sec. 491.6  Response to process.

    (a) Within fifteen days after receipt of process that is sufficient 
for legal form and contains sufficient information to identify the 
employee, the Authorized Agent shall send written notice that 
garnishment process has been served, together with a copy thereof, to 
the affected employee at his or her duty station or last known address. 
The Authorized Agent shall respond, in writing, to the garnishment or 
interrogatories within thirty days of receipt of process. The Authorized 
Agent may respond within a longer period of time as may be prescribed by 
applicable state Law. Neither the Authorized Agent nor any employee 
shall be required to respond in person to any garnishment served 
according to the provisions of 5 U.S.C. 5520a and the regulations in 
this section. A sufficient response to legal process shall consist of 
any action of the Postal Service consistent with these regulations. The 
action shall be considered to be given under penalty of perjury and 
shall constitute a legally sufficient answer to any garnishment. The 
Postal Service may, in its sole discretion, answer or otherwise respond 
to documents purporting to be legal process which are insufficient as to 
the manner of service, insufficient as to the identification of the 
employee, insufficient as to legal form or insufficient for any other 
reason.
    (b) The requirements of paragraph (a) of this section are 
illustrated by the following example:

    Example: Each periodic check with the accompanying Financial 
Institution Statement shall be considered to be a legally sufficient 
answer. Where legal process has been processed but no money was 
deducted, (for the reason of insufficient pay, prior garnishment in 
force, etc.) the mailing label or other written response shall be a 
sufficient answer. Where the Postal Service sends a check or mailing 
label, no further action will be required (such as a cumulative report 
or notarized statement.) Documents which are defective with respect to 
service, lack of legal sufficiency, failure to properly identify the 
employee, or other reason, do not require a response or an answer but if 
the Postal Service chooses to act in any way, such as to return the 
document, that act shall be a sufficient answer.



Sec. 491.7  Release of information.

    (a) No employee whose duties include responding to interrogatories 
to garnishments shall release information in response to a garnishment 
until it is determined that sufficient information, as required in Sec. 
491.4, has been received in writing as part of the garnishment legal 
process. The Authorized Agent may, at his or her sole discretion, accept 
or initiate telephone or telefax inquiries concerning garnishments. No 
other employee may release any information about employees except in 
conformity with the Privacy Act of 1974, 5 U.S.C. 552a, and the 
regulations in 39 CFR Part 266, ``Privacy of Information.''
    (b) The Authorized Agent's response to legal process is sufficient 
if it contains only that information not otherwise protected from 
release by any federal statute including the Privacy Act. Neither the 
Postal Service nor the Postal Rate Commission shall be required to 
provide formal answers to interrogatories received prior to the receipt 
of legal process. Employment verification may be obtained by accessing 
the Postal Service's employment verification system by dialing 1-(800) 
276-9850.



Sec. 491.8  Execution of process.

    (a) All legal process in the nature of garnishment shall be date and 
time stamped by the Authorized Agent when received for the purpose of 
determining the order of receipt of process which is sufficient as to 
legal form and contains sufficient information for identification of the 
employee, the Authorized Agent's date and time stamp shall be conclusive 
evidence. Child support and alimony garnishments will be accorded 
priority over commercial garnishments under 5 U.S.C. 5520a as provided 
in 5 U.S.C. 5520a(h)(2). Garnishments shall be executed provided that 
the pay cycle is open for input or, if closed, will be held until the 
next cycle. In no event shall the Postal Service be required to

[[Page 175]]

vary its normal pay or disbursement cycles in order to comply with legal 
process of any kind. Garnishments shall be recalculated, if required, to 
fit within the normal postal pay cycles. The Postal Service shall not be 
required to withhold pay and hold the funds in escrow. The Postal 
Service, in its sole discretion, may process more than one garnishment 
at a time within the restrictions on garnishments in Section 491.9 of 
these regulations. The Postal Service may, in its sole discretion, 
accept and hold for processing garnishments received after the 
garnishment currently in force.
    (b) The Postal Service will only accept and effectuate legal process 
for a person who is currently employed. Upon cessation of employment, 
process relating to that individual will be terminated and not retained. 
The Postal Service shall not be required to establish an escrow account 
to comply with legal process even if the applicable law of the 
jurisdiction requires private employers to do so. Legal process must 
state on its face that the Postal Service withhold up to a specific 
total amount of money, the Postal Service will not calculate interest, 
charges, or any variable in processing a garnishment. The Postal Service 
may continue processing a garnishment if the garnishing attorney 
provides the adjusted total including the additional money owed, as 
determined from his calculation of the variable amounts. The attorney is 
deemed to certify on his professional responsibility that the 
calculations are correct and will indemnify the employee directly for 
any errors. All garnishments of periodic pay may be effectuated in 
accordance with the bi-weekly pay schedule. The Postal Service need not 
vary its pay and disbursement cycles to accommodate withholding on any 
other cycle.
    (c) Neither the Postal Service, the Postal Rate Commission nor any 
disbursing officer shall be liable for any payment made from moneys due 
from, or payable by the Postal Service or the Postal Rate Commission to 
any individual pursuant to legal process regular on its face.
    (d) The Postal Service, the Postal Rate Commission, any disbursing 
officer or any other employee shall not be liable to pay money damages 
for failure to comply with legal process.



Sec. 491.9  Restrictions on garnishment.

    Garnishments under this section shall be subject to the restrictions 
in 15 U.S.C. 1671-1677, including limits on the amounts which can be 
withheld from an employee's pay and the priority of garnishments.

[[Page 176]]



                      SUBCHAPTER G_POSTAGE PROGRAMS





PART 501_AUTHORIZATION TO MANUFACTURE AND DISTRIBUTE POSTAGE EVIDENCING
SYSTEMS--Table of Contents



Sec.
501.1 Definitions.
501.2 Postage Evidencing System provider authorization.
501.3 Postage Evidencing System provider qualification.
501.4 Changes in ownership or control, bankruptcy, or insolvency.
501.5 Burden of proof standard.
501.6 Suspension and revocation of authorization.
501.7 Postage Evidencing System requirements.
501.8 Postage Evidencing System test and approval.
501.9 Demonstration or test Postage Evidencing Systems.
501.10 Postage Evidencing System modifications.
501.11 Reporting Postage Evidencing System security weaknesses.
501.12 Administrative sanctions.
501.13 False representations of Postal Service actions.
501.14 Postage Evidencing System inventory control processes.
501.15 Computerized Meter Resetting System.
501.16 PC postage payment methodology.
501.17 Decertified Postage Evidencing Systems.
501.18 Customer information and authorization.
501.19 Intellectual property.

    Authority: 5 U.S.C. 552(a); 39 U.S.C. 101, 401, 403, 404, 410, 2601, 
2605; Inspector General Act of 1978, as amended (Pub. L. 95-452, as 
amended); 5 U.S.C. App. 3.

    Source: 71 FR 65733, Nov. 9, 2006, unless otherwise noted.



Sec. 501.1  Definitions.

    (a) Postage Evidencing Systems regulated by part 501 produce 
evidence of prepayment of postage by any method other than postage 
stamps and permit imprints. A Postage Evidencing System is a device or 
system of components that a customer uses to generate and print evidence 
that postage required for mailing has been paid. Postage Evidencing 
Systems print indicia, such as meter imprints or information-based 
indicia to indicate postage payment. They include but are not limited to 
postage meters and PC Postage systems.
    (b) A postage meter is a Postal Service-approved Postage Evidencing 
System that uses a device to account for postage purchased and printed. 
The term meter as used in this part refers to a postage meter.
    (c) PC Postage products are Postal Service-approved Postage 
Evidencing Systems that use a personal computer as an integral part of 
the system. PC Postage products may use the Internet to download postage 
to a mailer's computer from which the postage indicia may then be 
printed.
    (d) A provider is a person or entity authorized under this section 
to manufacture and/or distribute Postage Evidencing Systems to 
customers.
    (e) A manufacturer of postage meters produces postage meters.
    (f) A distributor of postage meters may be a manufacturer who leases 
postage meters directly to end-user customers or may be an independent 
entity who leases postage meters to end-user customers on behalf of the 
manufacturer.
    (g) A customer is a person or entity authorized by the Postal 
Service to use a Postage Evidencing System in accordance with Mailing 
Standards of the United States Postal Service, Domestic Mail Manual 
(DMM) 604 Postage Payment Methods, 4.0 Postage Meters and PC Postage 
Products (Postage Evidencing Systems).



Sec. 501.2  Postage Evidencing System provider authorization.

    (a) The Postal Service considers Postage Evidencing Systems and 
their respective infrastructure to be essential to the exercise of its 
specific powers to prescribe postage and provide evidence of payment of 
postage under 39 U.S.C. 404(a)(2) and (4).
    (b) Due to the potential for adverse impact upon Postal Service 
revenue, the following activities may not be engaged in by any person or 
entity without prior, written approval of the Postal Service:

[[Page 177]]

    (1) Producing or distributing any Postage Evidencing System that 
generates U.S. postage.
    (2) Repairing, distributing, refurbishing, remanufacturing, 
modifying, or destroying any component of a Postage Evidencing System 
that accounts for or authorizes the printing of U.S. postage.
    (3) Owning or operating an infrastructure that maintains operating 
data for the production of U.S. postage, or accounts for U.S. postage 
purchased for distribution through a Postage Evidencing System.
    (4) Owning or operating an infrastructure that maintains operating 
data that is used to facilitate registration with the Postal Service of 
customers of a Postage Evidencing System.
    (c) Any person or entity seeking authorization to perform any 
activity described in paragraph (b) of this section, or to materially 
modify any activity previously approved by the Postal Service, must 
submit a request to the Postal Service in person or in writing. 
Decisions of the Postal Service upon such requests are effective only if 
in writing (including electronic mail).
    (d) Approval shall be based upon satisfactory evidence of the 
applicant's integrity and financial responsibility, commitment to the 
security of the Postage Evidencing System, and a determination that 
disclosure to the applicant of Postal Service customer, financial, or 
other data of a commercial nature necessary to perform the function for 
which approval is sought would be appropriate and consistent with good 
business practices within the meaning of 39 U.S.C. 410(c)(2). The Postal 
Service may condition its approval upon the applicant's agreement to 
undertakings that would give the Postal Service appropriate assurance of 
the applicant's ability to meet its obligations under this section, 
including but not limited to the method and manner of performing certain 
financial, security, and servicing functions and the need to maintain 
sufficient financial reserves to guarantee uninterrupted performance of 
not less than 3 months of operation.
    (e) Qualification and approval may be based upon additional 
conditions agreed to by the Postal Service and the applicant. The 
applicant is approved in writing to engage in the function(s) for which 
authorization was sought and approved.
    (f) To the extent that any provider manufactures and/or distributes 
any PC Postage product through any authorized Postage Evidencing System, 
such provider must adhere to the requirements of these regulations.
    (g) The Postal Service office responsible for administration of this 
Part 501 is the office of Postage Technology Management (PTM) or 
successor organization. All submissions to the Postal Service required 
or invited by this Part 501 are to be made to this office in person or 
via mail to 475 L'Enfant Plaza SW, North Building Suite 4200, 
Washington, DC 20260-4200. Information updates may be found on the 
Postal Service Web site at http://www.usps.com/postagesolutions/
flash.htm.



Sec. 501.3  Postage Evidencing System provider qualification.

    Any person or entity seeking authorization to manufacture and/or 
distribute Postage Evidencing Systems must:
    (a) Satisfy the Postal Service of its integrity and financial 
responsibility.
    (b) Obtain Postal Service approval under this part of at least one 
Postage Evidencing System satisfying the requirements of Postal Service 
regulations.
    (c) As a condition of obtaining authorization under this section, 
the Postage Evidencing System provider's facilities used for the 
manufacture, distribution, storage, resetting, or destruction of postage 
meters and all facilities housing infrastructure supporting Postage 
Evidencing Systems will be subject to unannounced inspection by 
representatives of the Postal Service. If such facilities are outside 
the continental United States, the provider will be responsible for all 
reasonable and necessary travel-related costs incurred by the Postal 
Service to conduct the inspections. Travel-related costs are determined 
in accordance with Postal Service Handbook F-15, Travel and Relocation. 
At its discretion, the Postal Service may continue to fund routine 
inspections outside the

[[Page 178]]

continental United States as it has in the past, provided the costs are 
not associated with particular security issues related to a provider's 
Postage Evidencing System or supporting infrastructure, or with the 
start-up or implementation of a new plant or of a new or substantially 
changed manufacturing process.
    (1) When conducting an inspection outside the continental United 
States, the Postal Service will make every effort to combine the 
inspection with other inspections in the same general geographic area in 
order to enable affected providers to share the costs. The Postal 
Service team conducting such inspections will be limited to the minimum 
number necessary to conduct the inspection. All air travel will be 
contracted for at the rates for official government business, when 
available, under such rules respecting class of travel as apply to those 
Postal Service representatives inspecting the facility at the time the 
travel occurs.
    (2) If political or other impediments prevent the Postal Service 
from conducting security evaluations of Postage Evidencing System 
facilities in foreign countries, Postal Service approval of the 
activities conducted in such facilities may be suspended until such time 
as satisfactory inspections may be conducted.
    (d) As the provider bears the ultimate responsibility to ensure 
customer information will not be compromised at any domestic or off 
shore locations, the provider (as well as its agent operating domestic 
or off shore locations) will not cause or permit data to be released 
other than for the operation of the third-party location. The provider 
shall notify its customer that data relating to its systems is being 
housed by a third-party location, and shall provide a copy thereof to 
the Postal Service of such notice to its customers. To the extent that 
any unauthorized release takes place, the vendor shall notify the Postal 
Service immediately upon discovery of any unauthorized use or disclosure 
of data or any other breach or improper disclosure of data of this 
agreement by the provider (as well as its agent operating the third-
party location) and will cooperate with the Postal Service in every 
reasonable way to help the Postal Service regain possession of the data 
and prevent its further unauthorized use or disclosure. In the event 
that the Postal Service cannot regain possession of the data or prevent 
its further unauthorized use or disclosure, the provider shall indemnify 
the Postal Service from damages resulting from its (or such third-party) 
actions.
    (e) Have, or establish, and keep under its active supervision and 
control adequate facilities for the control, distribution, and 
maintenance of PES and their replacement or secure disposal or 
destruction when necessary and appropriate.

[71 FR 65733, Nov. 9, 2006, as amended at 76 FR 77149, Dec. 12, 2011]



Sec. 501.4  Changes in ownership or control, bankruptcy, or insolvency.

    (a) Any person or entity authorized under Sec. 501.2 must promptly 
notify the Postal Service when it has a reasonable expectation that 
there may be a change in its ownership or control including changes in 
the ownership of an affiliate which exercises control over its Postage 
Evidencing System operations in the United States. A change of ownership 
or control within the meaning of this section includes entry into a 
strategic alliance or other agreement whereby a third party either has 
access to data related to the security of the system or is a competitor 
to the Postal Service. Any person or entity seeking to acquire ownership 
or control of a person or entity authorized under Sec. 501.2 must 
provide the Postal Service satisfactory evidence that upon completion of 
the contemplated transaction, it will satisfy the conditions for 
approval stated in Sec. 501.2. Early notification of a proposed change 
in ownership or control will facilitate expeditious review of an 
application to acquire ownership or control under this section.
    (b) Any person or entity authorized under Sec. 501.2 must promptly 
notify the Postal Service when it has a reasonable expectation that 
there may be a change in the status of its financial condition either 
through bankruptcy, insolvency, assignment for the benefit of creditors, 
or other similar financial

[[Page 179]]

action. Any person or entity authorized under Sec. 501.2 who 
experiences a change in the status of its financial condition may, at 
the discretion of the Postal Service, have its authorization under Sec. 
501.2 modified or terminated.



Sec. 501.5  Burden of proof standard.

    The burden of proof is on the Postal Service in administrative 
determinations of suspension and revocation under Sec. 501.6 and 
administrative sanctions under Sec. 501.12. Except as otherwise 
indicated in those sections, the standard of proof shall be the 
preponderance-of-evidence standard.



Sec. 501.6  Suspension and revocation of authorization.

    (a) The Postal Service may suspend and/or revoke authorization to 
manufacture and/or distribute any or all of a provider's approved 
Postage Evidencing System(s) if the provider engages in any unlawful 
scheme or enterprise, fails to comply with any provision in this Part 
501, fails to implement instructions issued in accordance with any final 
decision issued by the Postal Service within its authority over Postage 
Evidencing Systems or if the Postage Evidencing System or infrastructure 
of the provider is determined to constitute an unacceptable risk to 
Postal Service revenues.
    (b) The decision to suspend or revoke pursuant to paragraph (a) of 
this section shall be based upon the nature and circumstances of the 
violation (e.g. whether the violation was willful, whether the provider 
voluntarily admitted to the violation, or cooperated with the Postal 
Service, whether the provider implemented successful remedial measures) 
and on the provider's performance history. Before determining that a 
provider's authorization to manufacture and/or distribute Postage 
Evidencing Systems should be suspended or revoked, the procedures in 
paragraph (c) of this section shall be followed.
    (c) Suspension or revocation procedures:
    (1) Upon determination by the Postal Service that a provider is in 
violation of provisions of this Part 501, or that its Postal Evidencing 
System poses an unreasonable risk to postal revenue, PTM, acting on 
behalf of the Postal Service shall issue a written notice of proposed 
suspension citing the specific conditions or deficiencies for which 
suspension of authorization to manufacture and/or distribute a specific 
Postage Evidencing System or class of Postage Evidencing Systems may be 
imposed. Except in cases of willful violation, the provider shall be 
given an opportunity to correct deficiencies and achieve compliance with 
all requirements within a time limit corresponding to the potential 
revenue risk to postal revenue.
    (2) In cases of willful violation, or if the Postal Service 
determines that the provider has failed to correct cited deficiencies 
within the specified time limit, PTM shall issue a written notice of 
suspension setting forth the facts and reasons for the decision to 
suspend and the effective date if a written defense is not presented as 
provided in paragraph (d) of this section.
    (3) The notice shall also advise the provider of its right to file a 
response under paragraph (d) of this section. If a written response is 
not presented in a timely manner the suspension may go into effect. The 
suspension shall remain in effect for ninety (90) calendar days unless 
revoked or modified by PTM.
    (4) If, upon consideration of the defense as provided in paragraph 
(d) of this section, the Postal Service deems that the suspension is 
warranted, the suspension shall remain in effect for up to 90 days 
unless withdrawn by the Postal Service, as provided in paragraph 
(c)(5)(iii) of this section.
    (5) At the end of the ninety (90) day suspension, the Postal Service 
may:
    (i) Extend the suspension in order to allow more time for 
investigation or to allow the provider time to correct the problem.
    (ii) Make a determination to revoke authorization to manufacture 
and/or distribute a Postage Evidencing System in part or in whole.
    (iii) Withdraw the suspension based on identification and 
implementation of a satisfactory solution to the problem.
    (d) The provider may present the Postal Service with a written 
defense

[[Page 180]]

to any suspension or revocation determination within thirty (30) 
calendar days of receiving the written notice (unless a shorter period 
is deemed necessary). The defense must include all supporting evidence 
and state with specificity the reasons why the order should not be 
imposed.
    (e) After receipt and consideration of the defense, PTM shall advise 
the provider of its decision and the facts and reasons for it. The 
decision shall be effective on receipt unless provided otherwise. The 
decision shall also advise the provider that it may be appealed within 
thirty (30) calendar days of receipt (unless a shorter time frame is 
deemed necessary). If an appeal is not filed in a timely manner, the 
decision of PTM shall become a final decision of the Postal Service. The 
appeal may be filed with the Chief Marketing Officer of the Postal 
Service and must include all supporting evidence and state with 
specificity the reasons the provider believes that the decision is 
erroneous. The decision of the Chief Marketing Officer shall constitute 
a final decision of the Postal Service.
    (f) An order or final decision under this section does not preclude 
any other criminal or civil statutory, common law, or administrative 
remedy that is available by law to the Postal Service, the United 
States, or any other person or entity.



Sec. 501.7  Postage Evidencing System requirements.

    (a) A Postage Evidencing System submitted to the Postal Service for 
approval must meet the requirements of the Performance Criteria for 
Information-Based Indicia and Security Architecture for Open IBI Postage 
Evidencing Systems or Performance Criteria for Information-Based Indicia 
and Security Architecture for Closed IBI Postage Metering Systems 
published by PTM. The current versions of the Performance Criteria may 
be found on the Postal Service Web site at http://www.usps.com/
postagesolutions/programdoc.html or requests for copies may be submitted 
via mail to the address in Sec. 501.2(g).
    (b) The provider must affix to all meters a cautionary message 
providing the meter user with basic reminders on leasing and meter 
movement.
    (1) The cautionary message must be placed on all meters in a 
conspicuous and highly visible location. PROPERTY OF [NAME OF PROVIDER] 
as well as the provider's toll-free number must be emphasized by 
capitalized bold type and preferably printed in red. The minimum width 
of the message should be 3.25 inches, and the minimum height should be 
1.75 inches. The message should read as follows:

RENTED POSTAGE METER-NOT FOR SALE
PROPERTY OF [NAME OF PROVIDER]
(800) -

    Use of this meter is permissible only under U.S. Postal Service 
authorization. Call [Name of Provider] at (800) 
- to 
relocate/return this meter.

WARNING! METER TAMPERING IS A FEDERAL OFFENSE.
IF YOU SUSPECT METER TAMPERING, CALL POSTAL INSPECTORS AT (800) 372-8347

    REWARD UP TO $50,000 for information leading to the conviction of 
any person who misuses postage meters resulting in the Postal Service 
not receiving correct postage payments.

    (2) Exceptions to the formatting of the required message are 
determined on a case-by-case basis. Any deviation from standardized 
meter message requirements must be approved in writing by the Postal 
Service.
    (c) The provider must ensure that any matter printed by a postage 
evidencing system, whether within the boundaries of the indicia or 
outside the clear zone as defined in DMM 604.4.0 and the Performance 
Criteria for Information-Based Indicia and Security Architecture for 
Open IBI Postage Evidencing Systems or Performance Criteria for 
Information-Based Indicia and Security Architecture for Closed IBI 
Postage Metering Systems, is:
    (1) Consistent with the Postal Service's intent to maintain 
neutrality on religious, social, political, legal, moral, or other 
public issues;
    (2) Is not obscene, deceptive, or defamatory of any person, entity, 
or group, and does not advocate unlawful action;

[[Page 181]]

    (3) Does not emulate any form of valid postage, government, or other 
official indicia, or payment of postage; and
    (4) Does not harm the public image, reputation, or good will of the 
Postal Service and is not otherwise derogatory or detrimental to the 
interests of the Postal Service.
    (d) Providers must also ensure that customers acknowledge, agree, 
and warrant in writing that:
    (1) The customer bears full responsibility and liability for 
obtaining authorization to reproduce and otherwise use the matter as 
proposed (including, without limitation, any trademarks, slogans, 
likenesses or copyrighted material contained in the image);
    (2) The customer in fact has the legal authority to reproduce and 
otherwise use the matter as proposed; and
    (3) The customer understands that images or other matter is not 
provided, approved, or endorsed in any way by the Postal Service.



Sec. 501.8  Postage Evidencing System test and approval.

    (a) To receive Postal Service approval, each Postage Evidencing 
System must be submitted by the provider and evaluated by the Postal 
Service in accordance with the Postage Evidencing Product Submission 
Procedures published by PTM. The current version of the Product 
Submission Procedures may be found on the Postal Service Web site at 
http://www.usps.com/postagesolutions/programdoc.html or requests for 
copies may be submitted via mail to the address in 501.2(g). These 
procedures apply to all proposed Postage Evidencing Systems regardless 
of whether the provider is currently authorized by the Postal Service to 
distribute Postage Evidencing Systems. All testing required by the 
Postal Service will be an expense of the provider.
    (b) As provided in Sec. 501.11, the provider has a duty to report 
security weaknesses to the Postal Service to ensure that each approved 
Postage Evidencing System protects the Postal Service against loss of 
revenue at all times. A grant of approval of a system does not 
constitute an irrevocable determination that the Postal Service is 
satisfied with the revenue-protection capabilities of the system. After 
approval is granted to manufacture and/or distribute a Postage 
Evidencing System, no change affecting its basic features or safeguards 
may be made except as authorized or ordered by the Postal Service in 
writing.



Sec. 501.9  Demonstration or test Postage Evidencing Systems.

    (a) A demonstration or test postage evidencing system is any system 
that produces an image that replicates a postage indicium for which the 
Postal Service has not received payment for postage. The following 
procedures must be followed to implement controls over demonstration or 
test Postage Evidencing Systems:
    (1) A demonstration or test Postage Evidencing System may print only 
specimen or test indicia. A specimen or test indicia must clearly 
indicate that the indicia does not represent valid postage.
    (2) A demonstration or test Postage Evidencing System must be 
recorded as such on internal provider inventory records and must be 
tracked by model number, serial number, and physical location.
    (3) A demonstration or test Postage Evidencing System must remain 
under the provider's direct control. A demonstration or test Postage 
Evidencing System may not be left in the possession of a customer under 
any circumstance.
    (b) All indicia printed by a demonstration or test Postage 
Evidencing System must be collected and destroyed daily.



Sec. 501.10  Postage Evidencing System modifications.

    (a) An authorized provider must receive prior written approval from 
the manager, PTM, of any and all changes made to a previously approved 
Postage Evidencing System. The notification must include a summary of 
all changes made and the provider's assessment as to the impact of those 
changes on the security of the Postage Evidencing System and postage 
funds. Upon receipt of the notification, PTM will review the summary of 
changes and make a decision regarding the need for the following:

[[Page 182]]

    (1) Additional documentation.
    (2) Level of test and evaluation required.
    (3) Necessity for evaluation by a laboratory accredited by the 
National Institutes of Standards and Technology (NIST) under the 
National Voluntary Laboratory Accreditation Program (NVLAP).
    (b) Upon receipt and review of additional documentation and/or test 
results, PTM will issue a written acknowledgement and/or approval of the 
change to the provider.



Sec. 501.11  Reporting Postage Evidencing System security weaknesses.

    (a) For purposes of this section, provider refers to the Postage 
Evidencing System provider authorized under Sec. 501.2 and its foreign 
affiliates, if any, subsidiaries, assigns, dealers, independent dealers, 
employees, and parent corporations.
    (b) Each authorized provider of a Postage Evidencing System must 
notify the Postal Service within twenty-four (24) hours, upon discovery 
of the following:
    (1) All findings or results of any testing known to the provider 
concerning the security or revenue protection features, capabilities, or 
failings of any Postage Evidencing System sold, leased, or distributed 
by it that has been approved for sale, lease, or distribution by the 
Postal Service or any foreign postal administration; or has been 
submitted for approval by the provider to the Postal Service or other 
foreign postal administration(s).
    (2) All potential security weaknesses or methods of tampering with 
the Postage Evidencing Systems that the provider distributes of which it 
knows or should know and the Postage Evidencing System model subject to 
each such method. Potential security weaknesses include but are not 
limited to suspected equipment defects, suspected abuse by a customer or 
provider employee, suspected security breaches of the Computerized Meter 
Resetting System (CMRS) or databases housing confidential customer data 
relating to the use of Postage Evidencing Systems, occurrences outside 
normal performance, or any repeatable deviation from normal Postage 
Evidencing System performance.
    (3) Cyber attacks that include, but are not limited to, gaining 
unauthorized access to digital systems for purposes of misappropriating 
assets or sensitive information, corrupting data, or causing operational 
disruption. Cyber attacks may also be carried out in a manner that does 
not require gaining unauthorized access, such as by causing denial-of-
service attacks on Web sites. Cyber attacks may be carried out by third 
parties or insiders using techniques that range from highly 
sophisticated efforts to electronically circumvent network security or 
overwhelm Web sites to more traditional intelligence gathering and 
social engineering aimed at obtaining information necessary to gain 
access. Cyber security risk disclosures reported must adequately 
describe the nature of the material risks and specify how each risk 
affects the Postage Evidencing System.
    (c) Within a time limit corresponding to the potential revenue risk 
to postal revenue as determined by the Postal Service, the provider must 
submit a written report to the Postal Service. The report must include 
the circumstances, proposed investigative procedure, and the anticipated 
completion date of the investigation. The provider must also provide 
periodic status reports to the Postal Service during subsequent 
investigation and, on completion, must submit a summary of the 
investigative findings.
    (d) The provider must establish and adhere to timely and efficient 
procedures for internal reporting of potential security weaknesses and 
shall provide a copy of such internal reporting procedures and 
instructions to the Postal Service for review.
    (e) Failure to comply with this section may result in suspension of 
approval under Sec. 501.6 or the imposition of sanctions under Sec. 
501.12.

[71 FR 65733, Nov. 9, 2006, as amended at 77 FR 23396, Apr. 19, 2012]



Sec. 501.12  Administrative sanctions.

    (a) An authorized Postage Evidencing System provider may be 
responsible to the Postal Service for revenue losses

[[Page 183]]

caused by failure to comply with Sec. 501.11.
    (b) The Postal Service shall determine all costs and revenue losses 
measured from the date that the provider knew, or should have known, of 
a potential security weakness, including, but not limited to, 
administrative and investigative costs and documented revenue losses 
that result from any Postage Evidencing System for which the provider 
failed to comply with any provision in Sec. 501.11. The Postal Service 
issues a written demand for reimbursement of any and all such costs and 
losses (net of any amount collected by the Postal Service from the 
customers) with interest. The demand shall set forth the facts and 
reasons on which it is based.
    (c) The provider may present the Postal Service with a written 
defense to the proposed action within thirty (30) calendar days of 
receipt. The defense must include all supporting evidence and state with 
specificity the reasons for which the sanction should not be imposed.
    (d) After receipt and consideration of the defense, the Postal 
Service shall advise the provider of the decision and the facts and 
reasons for it; the decision shall be effective on receipt unless it 
provides otherwise. The decision shall also advise the provider that it 
may, within thirty (30) calendar days of receiving written notice, 
appeal that determination to the Chief Marketing Officer of the Postal 
Service who shall issue a written decision upon the appeal which will 
constitute the final Postal Service decision.
    (e) The imposition of an administrative sanction under this section 
does not preclude any other criminal or civil statutory, common law, or 
administrative remedy that is available by law to the Postal Service, 
the United States, or any other person or entity.
    (f) An authorized Postage Evidencing System provider, who without 
just cause fails to follow any Postal Service approved procedures, 
perform adequately any of the Postal Service approved controls, or fails 
to obtain approval of a required process in Sec. 501.14 in a timely 
fashion, is subject to an administrative sanction under this provision 
Sec. 501.12.



Sec. 501.13  False representations of Postal Service actions.

    Providers, their agents, and employees must not intentionally 
misrepresent to customers of the Postal Service decisions, actions, or 
proposed actions of the Postal Service respecting its regulation of 
Postage Evidencing Systems. The Postal Service reserves the right to 
suspend and/or revoke the authorization to manufacture or distribute 
Postage Evidencing Systems throughout the United States or any part 
thereof pursuant to Sec. 501.6 when it determines that the provider, 
its agents, or employees failed to comply with this section.



Sec. 501.14  Postage Evidencing System inventory control processes.

    (a) Each authorized provider of Postage Evidencing Systems must 
permanently hold title to all Postage Evidencing Systems that it 
manufactures or distributes, except those purchased by the Postal 
Service or distributed outside the United States.
    (b) An authorized provider must maintain sufficient facilities for 
and records of the business relationship, distribution, control, 
storage, maintenance, repair, replacement, and destruction or disposal 
of all Postage Evidencing Systems and their components to enable 
accurate accounting and location thereof throughout the entire life 
cycle of each Postage Evidencing System. A complete record shall entail 
a list by serial number of all Postage Evidencing Systems manufactured 
or distributed showing all movements of each system from the time that 
it is produced until it is scrapped, and the reading of the ascending 
register each time the system is checked into or out of service. These 
records must be available for inspection by Postal Service officials at 
any time during business hours.
    (c) To ensure adequate control over Postage Evidencing Systems, 
plans for the following subjects must be submitted for prior approval, 
in writing, to the office of Payment Technology.
    (1) Service procedures for all Postage Evidencing Systems--these are 
procedures to address the process to be used for new Postage Evidencing 
Systems as

[[Page 184]]

well as those previously leased to another customer.
    (2) Transportation and storage of Postage Evidencing Systems--these 
are procedures that provide reasonable precautions to prevent use by 
unauthorized individuals. Providers must ship all postage meters by 
Postal Service Registered Mail[supreg] service unless given written 
permission by the Postal Service to use another carrier. The provider 
must demonstrate that the alternative delivery carrier employs security 
procedures equivalent to those for Registered Mail service.
    (3) Postage Evidencing System examination/inspection procedures and 
schedule--the provider is required to perform postage meter examinations 
or inspections based on an approved schedule. Failure to complete the 
postage meter examination or inspections by the due date may result in 
the Postal Service requiring the provider to disable the meter's 
resetting capability. If necessary, the Postal Service shall notify the 
customer that the postage meter is to be removed from service and the 
authorization to use a Postage Evidencing System revoked, following the 
procedures for revocation specified by regulation. The Postal Service 
shall notify the provider to remove the postage meter from the 
customer's location.
    (4) Out-of-service procedures for a nonfaulty Postage Evidencing 
System--these procedures must be used when the system is to be removed 
from service for any reason.
    (5) Postage Evidencing System repair process--any physical or 
electronic access to the internal components of a postage meter, as well 
as any access to software or security parameters, must be conducted 
within an approved facility under the provider's direct control and 
active supervision. To prevent unauthorized use, the provider or any 
third party acting on its behalf must keep secure any equipment or other 
component that can be used to open or access the internal, electronic, 
or secure components of a postage meter.
    (6) Handling procedures for faulty meters--the provider must 
maintain handling procedures for faulty meters, including those that are 
inoperable, mis-registering, have unreadable registers, inaccurately 
reflect their current status, show any evidence of possible tampering or 
abuse, and those for which there is any indication that the postage 
meter has some mechanical or electrical malfunction of any critical 
security component, such as any component the improper operation of 
which could adversely affect Postal Service revenues, or of any memory 
component, or that affects the accuracy of the registers or the accuracy 
of the value printed.
    (7) Lost or stolen postage meter procedures--the provider must 
promptly report to the Postal Service the loss or theft of any postage 
meter or the recovery of any lost or stolen postage meter. Such 
notification to the Postal Service will be made by completing and filing 
a standardized lost and stolen meter incident report within 10 calendar 
days of the provider's determination of a meter loss, theft, or 
recovery.
    (8) Postage meter destruction--when required, the postage meter must 
be rendered completely inoperable by the destruction process and 
associated postage; printing dies and components must be destroyed. 
Manufacturers or distributors of meters must submit the proposed 
destruction method; a schedule listing the postage meters to be 
destroyed, by serial number and model; and the proposed time and place 
of destruction to Payment Technology for approval prior to any meter 
destruction. Providers must record and retain the serial numbers of the 
meters to be destroyed and provide a list of such serial numbers in 
electronic form in accordance with Postal Service requirements for meter 
accounting and tracking systems. Providers must give sufficient advance 
notice of the destruction to allow Payment Technology to schedule 
observation by its designated representative who shall verify that the 
destruction is performed in accordance with a Postal Service-approved 
method or process. To the extent that the Postal Service elects not to 
observe a particular destruction, the provider must submit a 
certification of destruction, including the serial number(s), to the 
Postal Service within 5 calendar days of destruction. These requirements 
for meter destruction apply to all postage meters, Postage Evidencing 
Systems, and postal security devices included as

[[Page 185]]

a component of a Postage Evidencing System.
    (d) If the provider uses a third party to perform functions that may 
have an impact upon a Postage Evidencing System (especially its 
security), including, but not limited to, business relationships, 
repair, maintenance, and disposal of Postage Evidencing Systems, Payment 
Technology must be advised in advance of all aspects of the 
relationship, as they relate to the custody and control of Postage 
Evidencing Systems and must specifically authorize in writing the 
proposed arrangement between the parties.
    (1) Postal Service authorization of a third-party relationship to 
perform specific functions applies only to the functions stated in the 
written authorization but may be amended to embrace additional 
functions.
    (2) No third-party relationship shall compromise the Postage 
Evidencing System, or its components, including, but not limited to, the 
hardware, software, communications, and security components, or of any 
security-related system with which it interfaces, including, but not 
limited to, the resetting system, reporting systems, and Postal Service 
support systems. The functions of the third party with respect to a 
Postage Evidencing System, its components, and the systems with which it 
interfaces are subject to the same scrutiny as the equivalent functions 
of the provider.
    (3) Any authorized third party must keep adequate facilities for and 
records of Postage Evidencing Systems and their components in accordance 
with paragraph (b) of this section. All such facilities and records are 
subject to inspection by Postal Service representatives, insofar as they 
are used to distribute, control, store, maintain, repair, replace, 
destroy, or dispose of Postage Evidencing Systems.
    (4) The provider must ensure that any party acting on its behalf in 
any of the functions described in paragraph (b) of this section 
maintains adequate facilities, records, and procedures for the security 
of the Postage Evidencing Systems. Deficiencies in the operations of a 
third party relating to the custody and control of Postage Evidencing 
Systems, unless corrected in a timely manner, can place at risk a 
provider's approval to manufacture and/or distribute Postage Evidencing 
Systems.
    (5) The Postal Service reserves the right to review all aspects of 
any relationship if it appears that the relationship poses a threat to 
Postage Evidencing System security and may require the provider to take 
appropriate corrective action. By entering into any relationship under 
this section, the provider is not relieved of any responsibility to the 
Postal Service, and such must be stated in any memorialization of the 
relationship.

[77 FR 23618, Apr. 20, 2012]



Sec. 501.15  Computerized Meter Resetting System.

    (a) Description. The Computerized Meter Resetting System (CMRS) 
permits customers to reset their postage meters at their places of 
business. Authorized providers, who operate CMRS services, are known as 
resetting companies (RCs).
    (b) A customer is required to have funds available on deposit with 
the Postal Service before resetting a Postage Evidencing System or the 
provider may opt to provide a funds advance in accordance with paragraph 
(c) of this section.
    (c) If the RC chooses to offer advancement of funds to customers, 
the RC is required to maintain a deposit with the Postal Service equal 
to at least one (1) day's average funds advanced. The total amount of 
funds advanced to customers on any given day shall not exceed the amount 
the provider has on deposit with the Postal Service. The Postal Service 
shall not be liable for any payment made by the RC on behalf of a 
customer that is not reimbursed by the customer, since the RC is solely 
responsible for the collection of advances made by the RC.
    (d) The CMRS customer is permitted to make deposits in one of three 
ways: check, electronic funds transfer (or wire transfer), or automated 
clearinghouse (ACH) transfer. These deposits must be remitted to the 
Postal Service's designated bank account.
    (e) The RC must require each CMRS customer that requests a meter 
resetting to provide the meter serial number, the CMRS account number, 
and

[[Page 186]]

the meter's ascending and descending register readings. The RC must 
verify that there are sufficient funds in the customer's CMRS account to 
cover the postage setting requested before proceeding with the setting 
transaction (unless the RC opts to provide the customer a funds 
advance).
    (f) The Postal Service requires that the RC publicize to all CMRS 
customers the following payment options (listed in order of preference):
    (1) Automated clearinghouse (ACH) debits/credits.
    (2) Electronic funds transfers (wire transfers).
    (3) Checks.
    (g) Returned checks and ACH debits are the responsibility of the 
Postal Service. Upon notice from the Postal Service's designated bank, 
the provider will be required to immediately lock the customer account 
to prevent a meter reset until the Postal Service receives payment for 
the returned check or the provider is provided with valid ACH credit or 
wire information.
    (h) Refunds. The Postal Service will issue a refund in the amount 
remaining in a customer's Computerized Meter Resetting System account, 
after such time as the customer provides a written request to the 
provider, as long as the request meets the Postal Service approved 
minimum and time frame.
    (i) Security and Revenue Protection. To receive Postal Service 
approval to continue to operate systems in the CMRS environment, the RC 
must submit to a periodic examination of its CMRS system and any other 
applications and technology infrastructure that may have a material 
impact on Postal Service revenues, as determined by the Postal Service. 
The examination shall be performed by a qualified, independent audit 
firm and shall be conducted in accordance with the Statement on Auditing 
Standards (SAS) No. 70, Service Organizations, developed by the American 
Institute of Certified Public Accountants (AICPA), as amended or 
superseded. The examination shall include testing of the operating 
effectiveness of relevant RC internal controls (Type II SAS70 Report). 
If the service organization uses another service organization (sub-
service provider), Postal Service Management should consider the nature 
and materiality of the transactions processed by the sub-service 
organization and the contribution of the sub-service organization's 
processes and controls in the achievement of the Postal Service's 
information processing objectives. The Postal Service should have access 
to the sub-service organization's SAS 70 report. The control objectives 
to be covered by the SAS 70 report are subject to Postal Service review 
and approval and are to be provided to the Postal Service 30 days prior 
to the initiation of each examination period. As a result of the 
examination, the auditor shall provide the RC and the Postal Service 
with an opinion on the design and operating effectiveness of the RC's 
internal controls related to the CMRS system and any other applications 
and technology infrastructure considered material to the services 
provided to the Postal Service by the RC. Such examinations are to be 
conducted on no less than an annual basis, and are to be as of and for 
the twelve months ended June 30 of each year (except for the period 
ending June 30, 2010, for which the period of coverage will be no less 
than six months, and except for new contracts for which the examination 
period will be no less than the period from the contract date to the 
following June 30, unless otherwise agreed to by the Postal Service). 
The examination reports are to be provided to the Postal Service by 
August 15 of each year. To the extent that internal control weaknesses 
are identified in a Type II SAS 70 report, the Postal Service may 
require the remediation of such weaknesses and review working papers and 
engage in discussions about the work performed with the auditor. Postal 
Service requires that all remediation efforts (if applicable) are 
completed and reported by the RC prior to the Postal Service's fiscal 
year end (September 30). The RC will be responsible for all costs to 
conduct these examinations.
    (j) Inspection of records and facilities. The RC must make its 
facilities that handle the operation of the computerized resetting 
system and all records about the operation of the system

[[Page 187]]

available for inspection by representatives of the Postal Service at all 
reasonable times. At its discretion, the Postal Service may continue to 
fund inspections as it has in the past, provided the costs are not 
associated with a particular security issue related to the provider's 
CMRS or supporting infrastructure.
    (k) The RC is required to incorporate the following language into 
its meter rental agreements:

              Acknowledgment of Deposit Requirement--Meters

    By signing this meter rental agreement, you the customer represent 
that you have read the Acknowledgment of Deposit Requirement--Meters and 
are familiar with its terms. You agree that, upon execution of this 
agreement with the RC, you will also be bound by all terms and 
conditions of the Acknowledgment of Deposit Requirement--Meters, as it 
may be amended from time to time.

[71 FR 65733, Nov. 9, 2006, as amended at 75 FR 56472, Sept. 16, 2010]



Sec. 501.16  PC postage payment methodology.

    (a) The PC Postage customer is permitted to make payments for 
postage in one of two ways: Automated clearinghouse (ACH) transfer or 
credit card.
    (b) The provider must make payments on behalf of the customer to the 
Postal Service in accordance with contractual and/or regulatory 
responsibilities.
    (c) The Postal Service requires that the provider publicize to all 
PC Postage customers the following payment options (listed in order of 
preference):
    (1) Automated clearinghouse (ACH) debits/credits.
    (2) Credit cards.
    (d) Returned ACH debits are the responsibility of the Postal 
Service. The RC must lock the customer account immediately so that the 
customer is unable to reset the account until the Postal Service 
receives payment in full.
    (e) Refunds. The provider issues a refund to a customer for any 
unused postage in a Postage Evidencing System. After verification by the 
Postal Service, the provider will be reimbursed by the Postal Service 
for the individual refunds provided to customers by the provider.
    (f) Security and revenue protection. To receive Postal Service 
approval to continue to operate PC Postage systems, the provider must 
submit to a periodic examination of its PC Postage system and any other 
applications and technology infrastructure that may have a material 
impact on Postal Service revenues, as determined by the Postal Service. 
The examination shall be performed by a qualified, independent audit 
firm and shall be conducted in accordance with the Statement on Auditing 
Standards (SAS) No. 70, Service Organizations, developed by the American 
Institute of Certified Public Accountants (AICPA), as amended or 
superseded. The examination shall include testing of the operating 
effectiveness of relevant provider internal controls (Type II SAS 70 
Report). If the service organization uses another service organization 
(sub-service provider), Postal Service Management should consider the 
nature and materiality of the transactions processed by the sub-service 
organization and the contribution of the sub-service organization's 
processes and controls in the achievement of the Postal Service's 
information processing objectives. The Postal Service should have access 
to the sub-service organization's SAS 70 report. The control objectives 
to be covered by the SAS 70 report are subject to Postal Service review 
and approval and are to be provided to the Postal Service 30 days prior 
to the initiation of each examination period. As a result of the 
examination, the auditor shall provide the provider, and the Postal 
Service, with an opinion on the design and operating effectiveness of 
the internal controls related to the PC Postage system and any other 
applications and technology infrastructure considered material to the 
services provided to the Postal Service by the provider. Such 
examinations are to be conducted on no less than an annual basis, and 
are to be as of and for the twelve months ended June 30 of each year 
(except for the period ending June 30, 2010 for which the period of 
coverage will be no less than six months, and except for new contracts 
for which the examination period will be no less than the period from 
the contract date to the following June 30, unless otherwise agreed

[[Page 188]]

to by the Postal Service). The examination reports are to be provided to 
the Postal Service by August 15 of each year. To the extent that 
internal control weaknesses are identified in a Type II SAS 70 report, 
the Postal Service may require the remediation of such weaknesses and 
review working papers and engage in discussions about the work performed 
with the auditor. The provider will be responsible for all costs to 
conduct these examinations.
    (g) Inspection of records and facilities. The provider must make its 
facilities, which handle the operation of the PC Postage system and all 
records about the operation of the system, available for inspection by 
representatives of the Postal Service at all reasonable times.
    (h) To the extent that the customer maintains funds on deposit for 
the payment of postage, the provider is required to incorporate the 
following language into its agreements with PC Postage customers:

            Acknowledgment of Deposit Requirement--PC Postage

    By signing this agreement with the provider, you represent that you 
have read the Acknowledgment of Deposit Requirement--PC Postage and are 
familiar with its terms. You agree that, upon execution of this 
agreement with the provider, you will also be bound by all terms and 
conditions of the Acknowledgment of Deposit Requirement--PC Postage, as 
it may be amended from time to time.

[72 FR 33163, June 15, 2007, as amended at 75 FR 56472, Sept. 16, 2010]



Sec. 501.17  Decertified Postage Evidencing Systems.

    (a) A Decertified Postage Evidencing System is a device for which 
the provider's authority to distribute has been withdrawn by the Postal 
Service as a result of any retirement plan for a given class of meters 
published by the Postal Service in the Federal Register; a suspension or 
revocation under Sec. 501.6; or a voluntary withdrawal undertaken by 
the provider.
    (b) A Decertified Postage Evidencing System must be withdrawn from 
service by the date agreed to by the Postal Service and provider.
    (c) To the extent postage meters are involved, the provider must 
utilize the approved procedures for lost and stolen meters under Sec. 
501.14(c)(7) to locate the meter and remove it from service by the 
agreed upon date.
    (d) Decertified Postage Evidencing Systems that are not submitted to 
the Postal Service for refund within one hundred and eighty (180) days 
of the agreed upon withdrawal from service date will not be eligible for 
refund of unused postage.
    (e) Postage indicia printed by Decertified Postage Evidencing 
Systems may no longer be considered valid postage one hundred and eighty 
(180) days from the agreed upon withdrawal from service date.



Sec. 501.18  Customer information and authorization.

    (a) Authorized providers must electronically transmit the necessary 
customer information to the designated Postal Service central data 
processing facility, in Postal Service-specified format, in order for 
the Postal Service to authorize a customer to use a Postage Evidencing 
System. Postal Service receipt and acceptance of the customer 
information provides the customer with the authorization to possess or 
use a Postage Evidencing System in accordance with DMM 604 Postage 
Payment Methods, 4.0 Postage Meters and PC Postage Products (Postage 
Evidencing Systems).
    (b) The Postal Service may refuse to issue a customer authorization 
to use a Postage Evidencing System for the following reasons:
    (1) The customer submitted false or fictitious information.
    (2) Within five years preceding submission of the information, the 
customer violated any standard for the care or use of the Postage 
Evidencing System that resulted in revocation of that customer's 
authorization.
    (3) Or there is sufficient reason to believe that the Postage 
Evidencing System is to be used in violation of the applicable 
standards.
    (c) The Postal Service will notify the provider of the revocation of 
a customer's authorization to use a Postage Evidencing System. Within 
ten (10) days of receipt of the notice of revocation, the provider must 
cancel any lease or other agreement and remove the Postage Evidencing 
System from

[[Page 189]]

service. A customer's authorization to use a Postage Evidencing system 
is subject to revocation for any of the following reasons:
    (1) A Postage Evidencing System is used for any illegal scheme or 
enterprise.
    (2) The customer's Postage Evidencing System is not used for twelve 
(12) consecutive months.
    (3) Sufficient control of a Postage Evidencing System is not 
exercised or the standards for its care or use are not followed.
    (4) The Postage Evidencing System is kept or used outside the 
customs territory of the United States or those U.S. territories and 
possessions where the Postal Service operates.
    (5) The customer is in possession of a Decertified Postage 
Evidencing System.
    (d) The provider must electronically transmit any updates to the 
necessary customer information to the designated Postal Service central 
data processing facility, in Postal Service-specified format.
    (e) No one other than an authorized provider may possess a Postage 
Evidencing System without a valid rental or other agreement with the 
provider. Other parties in possession of a Postage Evidencing System 
must immediately surrender it to the provider or the Postal Service.
    (f) The Postal Service may use customer information consistent with 
the Privacy Act and the Postal Service's privacy policies posted on 
http://www.usps.com. Examples include the following:
    (1) Communication with customers who may no longer be visiting a 
traditional Postal Service retail outlet or communication with customers 
through any new retail channels.
    (2) Issuance (including re-authorization, renewal, transfer, 
revocation or denial, as applicable) of authorization to use a Postage 
Evidencing System to a postal patron that uses a Postage Evidencing 
System, and communications with respect to the status of such 
authorization.
    (3) Disclosure to a meter provider of the identity of any meter 
required to be removed from service by that meter provider, and any 
related customer data, as the result of revocation of an authorization 
to use a Postage Evidencing System, questioned accurate registration of 
that meter, or de-certification by the Postal Service of any particular 
class or model of postage meter.
    (4) Tracking the movement of meters between a meter provider and its 
customers and communications to a meter provider (but not to any third 
party other than the customer) concerning such movement. The term meter 
provider includes a meter provider's dealers and agents.
    (5) To transmit general information to all Postage Evidencing System 
customers concerning rate and rate category changes implemented or 
proposed for implementation by the Postal Service.
    (6) To advertise Postal Service services relating to the acceptance, 
processing, and delivery of, or postage payment for, metered mail.
    (7) To allow the Postal Service to communicate with Postal Service 
customers on products, services, and other information otherwise 
available to Postal Service customers through traditional retail 
outlets.
    (8) Any internal use by Postal Service personnel, including 
identification and monitoring activities relating to Postage Evidencing 
Systems, provided that such use does not result in the disclosure of 
applicant information to any third party or will not enable any third 
party to use applicant information for its own purposes; except that the 
applicant information may be disclosed to other governmental agencies 
for law enforcement purposes as provided by law.
    (9) Identification of authorized Postage Evidencing System providers 
or announcement of the de-authorization of an authorized provider, or 
provision of currently available public information, where an authorized 
provider is identified.
    (10) To promote and encourage the use of Postage Evidencing Systems 
as a form of postage payment, provided that the same information is 
provided to all Postage Evidencing System customers and no particular 
Postage Evidencing System provider will be recommended by the Postal 
Service.

[[Page 190]]

    (11) To contact customers in cases of revenue fraud or revenue 
security.
    (12) Disclosure to a Postage Evidencing System provider of applicant 
information pertaining to that provider's customers that the Postal 
Service views as necessary to enable the Postal Service to carry out its 
duties and purposes.
    (13) To transmit to a Postage Evidencing System provider all 
applicant and system information pertaining to that provider's customers 
and systems that may be necessary to permit such provider to synchronize 
its computer databases with information contained in the computer files 
of the Postal Service.
    (14) Subject to the conditions stated herein, to communicate in oral 
or written form with any or all applicants any information that the 
Postal Service views as necessary to enable the Postal Service to carry 
out its duties and purposes under part 501.



Sec. 501.19  Intellectual property.

    Providers submitting Postage Evidencing Systems to the Postal 
Service for approval are responsible for obtaining all intellectual 
property licenses that may be required to distribute their product in 
commerce and to allow the Postal Service to process mail bearing the 
indicia produced by the Postage Evidencing System. To the extent 
approval is granted and the Postage Evidencing System is capable of 
being used in commerce, the provider shall indemnify the Postal Service 
for use of such intellectual property in both the use of the Postage 
Evidencing System and the processing of mail bearing indicia produced by 
the Postage Evidencing System.



PART 551_SEMIPOSTAL STAMP PROGRAM--Table of Contents



Sec.
551.1 Semipostal Stamp Program.
551.2 Semipostal stamps.
551.3 Procedure for selection of causes and recipient executive 
          agencies.
551.4 Submission requirements and selection criteria.
551.5 Frequency and other limitations.
551.6 Pricing.
551.7 Calculation of funds for recipient executive agencies.
551.8 Cost offset policy.

    Authority: 39 U.S.C. 101, 201, 203, 401, 403, 404, 410, 414, 416.

    Source: 66 FR 31826, June 12, 2001, unless otherwise noted.



Sec. 551.1  Semipostal Stamp Program.

    The Semipostal Stamp Program is established under the Semipostal 
Authorization Act, Public Law 106-253, 114 Stat. 634 (2000), as amended 
by Public Law 107-67, section 652, 115 Stat. 514 (2001). The Office of 
Stamp Services has primary responsibility for administering the 
Semipostal Stamp Program. The Office of Accounting, Finance, Controller 
has primary responsibility for the financial aspects of the Semipostal 
Stamp Program.

[67 FR 5215, Feb. 5, 2002]



Sec. 551.2  Semipostal stamps.

    Semipostal stamps are stamps that are sold for a price that exceeds 
the postage value of the stamp. The difference between the price and 
postage value of semipostal stamps, also known as the differential, less 
an offset for reasonable costs, as determined by the Postal Service, 
consists of a contribution to fund causes determined by the Postal 
Service to be in the national public interest and appropriate. Funds are 
to be transferred to selected recipient executive agencies, as defined 
under 5 U.S.C. 105. The office of Stamp Services determines the print 
quantities of semipostal stamps. The use of semipostal stamps shall be 
voluntary on the part of postal patrons.



Sec. 551.3  Procedure for selection of causes and recipient executive 
agencies.

    The Postal Service is authorized to select causes and recipient 
executive agencies to receive funds raised through the sale of 
semipostal stamps. The procedure for selection of causes and recipient 
executive agencies is as follows:
    (a) In advance of the issuance of a semipostal stamp, the office of 
Stamp Services will publish a request for proposals in the Federal 
Register inviting interested persons to submit proposals for a cause and 
recipient executive agencies for a future semipostal

[[Page 191]]

stamp. The notice will specify the beginning and ending dates of the 
period during which proposals may be submitted. The notice will also 
specify the approximate period in which the semipostal stamp for which 
proposals are solicited is to be sold. The office of Stamp Services may 
publicize the request for proposals through other means, as it 
determines in its discretion.
    (b) Proposals will be received by the office of Stamp Services, 
which will review each proposal under Sec. 551.4.
    (c) Those proposals that the office of Stamp Services determines 
satisfy the requirements of Sec. 551.4 will be forwarded for 
consideration by the Citizens' Stamp Advisory Committee, which is 
described in Administrative Support Manual (ASM) section 644.5. For 
availability of ASM 644.5, contact the Office of Stamp Services (202) 
268-2319.
    (d) The Citizens' Stamp Advisory Committee will review eligible 
proposals forwarded by the office of Stamp Services. Based on the 
proposals submitted, the Citizens' Stamp Advisory Committee will make 
recommendations on a cause and eligible recipient executive agency(ies) 
to the postmaster general. If no eligible proposals are recommended, the 
Postal Service will solicit additional proposals through publication of 
a notice in the Federal Register and through other means as it 
determines in its discretion.
    (e) Meetings of the Citizens' Stamp Advisory Committee are closed, 
and deliberations of the Citizens' Stamp Advisory Committee are 
predecisional in nature.
    (f) The postmaster general will act on the recommendations of the 
Citizens' Stamp Advisory Committee. The decision of the postmaster 
general shall consist of the final agency decision.
    (g) The office of Stamp Services will notify the executive 
agency(ies) in writing of a decision designating the agency(ies) as 
recipients of funds from a semipostal stamp.
    (h)(1) A proposal submission may designate one or two recipient 
executive agencies to receive funds, but if more than one executive 
agency is proposed, the proposal must specify the percentage shares of 
differential revenue, net of the Postal Service's reasonable costs, to 
be given to each agency. If percentage shares are not specified, it is 
presumed that the proposal intends that the funds be split evenly 
between the agencies. If more than two recipient executive agencies are 
proposed to receive funds and the proposal is selected, the proposal is 
treated as prescribed by paragraph (h)(3) of this section.
    (2) If more than one proposal is submitted for the same cause, and 
the proposals would have different executive agencies receiving funds, 
the funds would be evenly divided among the executive agencies, with no 
more than two agencies being designated to receive funds, as determined 
by the vice president and consumer advocate.
    (3) Within 10 days of receipt of a notice indicating that it has 
been selected to receive funds, a selected agency could request a 
proportionately larger share if it can demonstrate that its share of 
total funding of the cause from other sources (excluding any additional 
funds available as a result of the semipostal stamp) exceeds that of the 
other recipient executive agency. The request must be in writing and 
must be sent to the manager of Stamp Services. In those cases, the 
determination regarding the proportional share to be divided among the 
recipient executive agencies is made by the Postal Service's vice 
president and consumer advocate.
    (i) As either a separate matter, or in combination with 
recommendations on a cause and a recipient executive agency(ies), the 
Citizens' Stamp Advisory Committee will recommend to the postmaster 
general a design (i.e., artwork) for the semipostal stamp. The 
postmaster general will make a final determination on the design to be 
featured.



Sec. 551.4  Submission requirements and selection criteria.

    (a) Proposals on recipient executive agencies and causes must 
satisfy the following requirements:
    (1) Interested persons must timely submit an original and 20 copies 
of the proposal. For purposes of this section, interested persons 
include, but are not

[[Page 192]]

limited to, individuals, corporations, associations, and executive 
agencies under 5 U.S.C. 105. Interested persons submitting proposals are 
also encouraged to submit an Adobe Acrobat (.pdf) file saved on a 3.5 
inch diskette or CD-ROM diskette containing the entire contents of the 
submission. In extraordinary circumstances, the office of Stamp Services 
may, in its discretion, consider a late-filed proposal.
    (2) The proposal submission must be signed by the individual or a 
duly authorized representative and must provide the mailing address, 
phone number, fax number (if available), and E-mail address (if 
available) of a designated point of contact.
    (3) The submission must describe the cause and the purposes for 
which the funds would be spent.
    (4) The submission must demonstrate that the cause to be funded has 
broad national appeal, and that the cause is in the national public 
interest and furthers human welfare. Respondents are encouraged to 
submit supporting documentation demonstrating that funding the cause 
would benefit the national public interest.
    (5) The submission must be accompanied by a letter from an executive 
agency or agencies on agency letterhead representing that:
    (i) it is an executive agency as defined under 5 U.S.C. 105,
    (ii) it is willing and able to implement the proposal, and
    (iii) it is willing and able to meet the requirements of the 
Semipostal Authorization Act, if it is selected. The letter must be 
signed by a duly authorized representative of the agency.
    (b) Proposal submissions become the property of the Postal Service 
and are not returned to interested persons who submit them. Interested 
persons who submit proposals are not entitled to any remuneration, 
compensation, or any other form of payment, whether their proposal 
submissions are selected or not, for any reason.
    (c) The following persons are disqualified from submitting 
proposals:
    (1) Any contractor of the Postal Service that may stand to benefit 
financially from the Semipostal Stamp Program; or
    (2) Members of the Citizens' Stamp Advisory Committee and their 
immediate families, and employees or contractors of the Postal Service, 
and their immediate families, who are involved in any decision-making 
related to causes, recipient agencies, or artwork for the Semipostal 
Stamp Program.
    (d) Consideration for evaluation will not be given to proposals that 
request support for the following: Anniversaries; public works; people; 
specific organizations or associations; commercial enterprises or 
products; cities, towns, municipalities, counties, or secondary schools; 
hospitals, libraries, or similar institutions; religious institutions; 
causes that do not further human welfare; or causes determined by the 
Postal Service or the Citizens' Stamp Advisory Committee to be 
inconsistent with the spirit, intent, or history of the Semipostal 
Authorization Act.
    (e) Artwork and stamp designs should not be submitted with 
proposals.



Sec. 551.5  Frequency and other limitations.

    (a) The Postal Service is authorized to issue semipostal stamps for 
a 10-year period beginning on the date on which semipostal stamps are 
first sold to the public under 39 U.S.C. 416. The 10-year period will 
commence after the sales period of the Breast Cancer Research stamp is 
concluded in accordance with the Stamp Out Breast Cancer Act, and as 
amended by the Semipostal Authorization Act, the Breast Cancer Research 
Stamp Act of 2001, and Public Law 107-67, section 650, 115 Stat. 514. 
The Office of Stamp Services will determine the date of commencement of 
the 10-year period.
    (b) The Postal Service will offer only one semipostal stamp for sale 
at any given time during the 10-year period.
    (c) The sales period for any given semipostal stamp is limited to no 
more than 2 years, as determined by the office of Stamp Services.
    (d) Prior to or after the issuance of a given semipostal stamp, the 
Postal Service reserves the right to withdraw the semipostal stamp from 
sale, or to reduce the sales period, if, inter alia:

[[Page 193]]

    (1) Its sales or revenue statistics are lower than expected,
    (2) The sales or revenue projections are lower than previously 
expected, or
    (3) The cause or recipient executive agency does not further, or 
comply with, the statutory purposes or requirements of the Semipostal 
Authorization Act. The decision to withdraw a semipostal stamp is to be 
made by the postmaster general, after review of supporting documentation 
prepared by the office of Stamp Services.

[66 FR 31826, June 12, 2001, as amended at 67 FR 5215, Feb. 5, 2002]



Sec. 551.6  Pricing.

    (a) The Semipostal Authorization Act, as amended by Public Law 107-
67, section 652, 115 Stat. 514 (2001), prescribes that the price of a 
semipostal stamp is the rate of postage that would otherwise regularly 
apply, plus a differential of not less than 15 percent. The price of a 
semipostal stamp shall be an amount that is evenly divisible by five. 
For purposes of this provision, the First-Class Mail [reg] 
single-piece first-ounce rate of postage will be considered the rate of 
postage that would otherwise regularly apply.
    (b) The prices of semipostal stamps are determined by the Governors 
of the United States Postal Service in accordance with the requirements 
of 39 U.S.C. 416.

[66 FR 31826, June 12, 2001, as amended at 67 FR 5216, Feb. 5, 2002]



Sec. 551.7  Calculation of funds for recipient executive agencies.

    (a) The Postal Service is to determine its reasonable costs in 
executing its responsibilities pursuant to the Semipostal Authorization 
Act, as specified in Sec. 551.8. These costs are offset against the 
revenue received through sale of each semipostal stamp in excess of the 
First-Class Mail single-piece first-ounce rate in effect at the time of 
purchase.
    (b) Any reasonable costs offset by the Postal Service shall be 
retained by it, along with revenue from the sale of the semipostal 
stamps, as recorded by sales units through the use of a specially 
designated account.
    (c) The Postal Service is to pay designated recipient executive 
agency(ies) the remainder of the differential revenue less an amount to 
recover the reasonable costs of the Postal Service, as determined under 
Sec. 551.8.
    (d) The amounts for recipient executive agencies are transferred in 
a manner and frequency determined by mutual agreement, consistent with 
the requirements of 39 U.S.C. 416.



Sec. 551.8  Cost offset policy.

    (a) Postal Service policy is to recover from the differential 
revenue for each semipostal stamp those costs that are determined to be 
attributable to the semipostal stamp and that would not normally be 
incurred for stamps having similar sales; physical characteristics; and 
marketing, promotional, and public relations activities (hereinafter 
``comparable stamps'').
    (b) Overall responsibility for tracking costs associated with 
semipostal stamps will rest with the Office of Accounting, Finance, 
Controller. Individual organizational units incurring costs will provide 
supporting documentation to the Office of Accounting, Finance, 
Controller.
    (c) For each semipostal stamp, the Office of Stamp Services, in 
coordination with the Office of Accounting, Finance, Controller, shall, 
based on judgment and available information, identify the comparable 
stamp(s) and create a profile of the typical cost characteristics of the 
comparable stamp(s) (e.g., manufacturing process, gum type), thereby 
establishing a baseline for cost comparison purposes. The determination 
of comparable stamps may change during or after the sales period, and 
different comparable stamp(s) may be used for specific cost comparisons.
    (d) Except as specified, all costs associated with semipostal stamps 
will be tracked by the Office of Accounting, Finance, Controller. Costs 
that will not be tracked include:
    (1) Costs that the Postal Service determines to be inconsequentially 
small, which include those cost items which are less than $3,000 per 
invoice and are not specifically charged to a semipostal finance number.
    (2) Costs for which the cost of tracking or estimation would be 
burdensome

[[Page 194]]

(e.g., costs for which the cost of tracking exceeds the cost to be 
tracked);
    (3) Costs attributable to mail to which semipostal stamps are 
affixed (which are attributable to the appropriate class and/or subclass 
of mail); and
    (4) Administrative and support costs that the Postal Service would 
have incurred whether or not the Semipostal Stamp Program had been 
established.
    (e) Cost items recoverable from the differential revenue include, 
but are not limited to, the following:
    (1) Packaging costs in excess of the cost to package comparable 
stamps;
    (2) Printing costs of flyers and special receipts;
    (3) Costs of changes to equipment;
    (4) Costs of developing and executing marketing and promotional 
plans in excess of the cost for comparable stamps;
    (5) Other costs specific to the semipostal stamp that would not 
normally have been incurred for comparable stamps; and
    (6) Costs in paragraph (g) of this section that materially exceed 
those that would normally have been incurred for comparable stamps.
    (f) The Semipostal Stamp Program incorporates the following 
provisions that are intended to maximize differential revenues available 
to the selected causes. These include, but are not limited to, the 
following:
    (1) Avoiding, to the extent practicable, promotional costs that 
exceed those of comparable stamps;
    (2) Establishing restrictions on the number of concurrently issued 
semipostal stamps; and
    (3) Making financial and retail system changes in conjunction with 
regularly scheduled revisions.
    (g) Other costs attributable to semipostals but which would normally 
be incurred for comparable stamps would be recovered through the postage 
component of the semipostal stamp price. Such costs are not recovered, 
unless they materially exceed the costs of comparable stamps. These 
include, but are not limited to, the following:
    (1) Costs of stamp design (including market research);
    (2) Costs of stamp production and printing;
    (3) Costs of stamp shipping and distribution;
    (4) Estimated training costs for field staff, except for special 
training associated with semipostal stamps;
    (5) Costs of stamp sales (including employee salaries and benefits);
    (6) Costs associated with the withdrawal of the stamp issue from 
sale;
    (7) Costs associated with the destruction of unsold stamps; and
    (8) Costs associated with the incorporation of semipostal stamp 
images into advertising for the Postal Service as an 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]

[[Page 195]]



      SUBCHAPTER H_PROCUREMENT SYSTEM FOR THE U.S. POSTAL SERVICE: 
             INTELLECTUAL PROPERTY RIGHTS OTHER THAN PATENTS





PART 601_PURCHASING OF PROPERTY AND SERVICES--Table of Contents



Sec.
601.100 Purchasing policy.
601.101 Effective date.
601.102 Revocation of prior purchasing regulations.
601.103 Applicability and coverage.
601.104 Postal purchasing authority.
601.105 Business relationships.
601.106 Reserved.
601.107 Initial disagreement resolution.
601.108 SDR Official disagreement resolution.
601.109 Contract claims and disputes.
601.110 Payment of claims.
601.111 Interest on claim amounts.
601.112 Review of adverse decisions.
601.113 Debarment, suspension, and ineligibility.

    Authority: 39 U.S.C. 401, 404, 410, 411, 2008, 5001-5605.

    Source: 72 FR 58252, Oct. 15, 2007, unless otherwise noted.



Sec. 601.100  Purchasing policy.

    The Postal Service acquires property and services pursuant to the 
authority of 39 U.S.C. 410.



Sec. 601.101  Effective date.

    These regulations are effective November 14, 2007. Solicitations 
issued and resulting contracts entered into prior to that date will be 
governed by the regulations in effect at the time the solicitation was 
issued.



Sec. 601.102  Revocation of prior purchasing regulations.

    All previous postal purchasing regulations, including the Postal 
Contracting Manual, Procurement Manual, the Purchasing Manual (Issues 1, 
2 and 3), and procurement handbooks, circulars, and instructions, are 
revoked and are superseded by the regulations contained in this part.



Sec. 601.103  Applicability and coverage.

    The regulations contained in this part apply to all Postal Service 
acquisition of property (except real property) and services.



Sec. 601.104  Postal purchasing authority.

    Only the Postmaster General/CEO; the Postal Service's vice 
president, Supply Management; contracting officers with written 
statements of specific authority; and others designated in writing or 
listed in this part have the authority to bind the Postal Service with 
respect to entering into, modifying, or terminating any contract 
regarding the acquisition of property, services, and related purchasing 
matters. The Postal Service's vice president, Supply Management, or his 
or her designee, may also delegate in writing local buying authority 
throughout the Postal Service.



Sec. 601.105  Business relationships.

    (a) General. A person or organization wishing to have a continuing 
business relationship with the Postal Service in purchasing matters is 
expected to treat the Postal Service in the same manner as it would 
other valued customers of similar size and importance. The Postal 
Service reserves the right to decline to accept or consider proposals 
from a person or organization when that person or organization fails to 
meet reasonable business expectations or provide a high level of 
confidence regarding quality, prompt service, and overall 
professionalism.
    (b) Declining to accept or consider proposals. The Postal Service 
may decline to accept or consider proposals when a person or 
organization exhibits unacceptable conduct or business practices that do 
not meet reasonable business expectations or does not provide a high 
level of confidence about the entity's current or future business 
relations. Unacceptable conduct or business practices include, but are 
not limited to:
    (1) Marginal or dilatory contract performance;
    (2) Failure to deliver on promises made in the course of dealings 
with the Postal Service;

[[Page 196]]

    (3) Providing false or misleading information regarding financial 
condition, ability to perform, or other material matters, including any 
aspect of performance on a contract; and
    (4) Engaging in other questionable or unprofessional conduct or 
business practices.
    (c) Notice. If the Postal Service elects to decline to accept or 
consider proposals from a person or organization, the vice president, 
Supply Management, or his or her designee, will provide a written notice 
to the person or organization by Certified Mail, return receipt 
requested, explaining:
    (1) The reasons for the decision;
    (2) The effective date of the decision;
    (3) The scope of the decision;
    (4) The period of time the decision will be in effect, (a matter at 
the Postal Service's discretion consistent with the circumstances); and
    (5) The supplier's right to contest the decision.
    (d) Contesting Decisions. If a person or organization believes the 
decision not to accept or consider proposals is not merited, it may 
contest the matter in accordance with Sec. 601.108. The Postal Service 
may reconsider the matter and, if warranted, rescind or modify the 
decision to decline to accept or consider proposals.



Sec. 601.106  [Reserved]



Sec. 601.107  Initial disagreement resolution.

    (a) Definitions.
    (1) Days. Calendar days; however, any time period will run until a 
day that is not a Saturday, Sunday, or legal holiday.
    (2) Disagreements. All disputes, protests, claims, disagreements, or 
demands of whatsoever nature arising in connection with the acquisition 
of property and services within the scope of Sec. 601.103 of this 
chapter, except those:
    (i) That arise pursuant to a contract under the Contract Disputes 
Act under Sec. 601.109;
    (ii) That concern debarment, suspension, or ineligibility under 
Sec. 601.113; or
    (iii) That arise out of the nonrenewal of transportation contracts 
containing other provisions for the review of such decisions.
    (3) Interested parties. Actual or prospective offerors whose direct 
economic interests would be affected by the award of, or failure to 
award, the contract.
    (4) Lodge. A disagreement is lodged on the date it is received by 
the contracting officer or the Supplier Disagreement Resolution 
Official, as appropriate.
    (5) SDR Official. The Supplier Disagreement Resolution Official, a 
contracting officer designated by the Postal Service to perform the 
functions established under Sec. 601.108.
    (b) Policy. It is the policy of the Postal Service and in the 
interest of its suppliers to resolve disagreements by mutual agreement 
between the supplier and the responsible contracting officer. All 
disagreements must be lodged with the responsible contracting office in 
writing via facsimile, e-mail, hand delivery, or U.S. Mail. For 
disagreements that concern the award of a contract, the disagreement 
shall be lodged within 10 days of the date the supplier received 
notification of award or 10 days from the date the supplier received a 
debriefing, whichever is later. For disagreements that concern alleged 
improprieties in a solicitation, the contracting officer must receive 
the disagreement before the time set for the receipt of proposals, 
unless the disagreement concerns an alleged impropriety that does not 
exist in the initial solicitation but which is subsequently incorporated 
into the solicitation, in which event the contracting officer must 
receive the disagreement no later than the next closing time for the 
receipt of proposals following the incorporation. The resolution period 
shall last 10 days from the date when the disagreement is lodged with 
the contracting officer. During the supplier-contracting officer 10-day 
resolution period, the responsible contracting officer's management may 
help to resolve the disagreement. At the conclusion of the 10-day 
resolution period, the contracting officer must communicate, in writing, 
to the supplier his or her resolution of the disagreement.
    (c) Alternative dispute resolution. Alternative dispute resolution 
(ADR) procedures may be used to resolve a disagreement. If the use of 
ADR is agreed

[[Page 197]]

upon, the 10-day limitation is suspended. If agreement cannot be 
reached, the supplier has 10 days to lodge its disagreement with the SDR 
Official.

[75 FR 1542, Jan. 12, 2010]



Sec. 601.108  SDR Official disagreement resolution.

    (a) General. If a disagreement under Sec. 601.107 is not resolved 
within 10 days after it was lodged with the contracting officer, if the 
use of ADR fails to resolve it at any time, if the supplier is not 
satisfied with the contracting officer's resolution of the disagreement, 
or if the decision not to accept or consider proposals under Sec. 
601.105 is contested, the SDR Official is available to provide final 
resolution of the matter. The Postal Service desires to resolve all such 
matters quickly and inexpensively in keeping with the regulations in 
this part.
    (b) Scope and applicability. This procedure is established as the 
sole and exclusive means to resolve disagreements under Sec. 601.107 
and contests of decisions under Sec. 601.105. This procedure is 
intended to expeditiously resolve disagreements that are not resolved at 
the responsible contracting officer level; to reduce litigation 
expenses, inconvenience, and other costs for all parties; to facilitate 
successful business relationships with Postal Service suppliers, the 
supplier community, and other persons; and to develop further the basis 
for the Postal Service's purchasing decisions and the administrative 
records concerning those decisions. All disagreements under Sec. 
601.107 and contests of decisions under Sec. 601.105 will be lodged 
with and resolved, with finality, by the SDR Official under and in 
accordance with the sole and exclusive procedure established in this 
section.
    (c) Lodging. The disagreement under Sec. 601.107 or contest of 
decision under Sec. 601.105 must be lodged with the SDR Official in 
writing via facsimile, e-mail, hand delivery, or U.S. Mail. The 
disagreement under Sec. 601.107 or contest of decision under Sec. 
601.105 must state the factual circumstances relating to it and the 
remedy sought. A disagreement under Sec. 601.107 must also state the 
scope and outcome of the initial disagreement resolution attempt with 
the contracting officer. The address of the SDR Official is: Room 4130 
(Attn: SDR Official), United States Postal Service Headquarters, 475 
L'Enfant Plaza, SW., Washington, DC 20260-4130. e-mail Address: 
[email protected]. Fax Number: (202) 268-0075.
    (d) Lodging timeframes. Disagreements under Sec. 601.107 or 
contests of decisions under Sec. 601.105 must be lodged with the SDR 
Official within the following timeframes:
    (1) Disagreements under Sec. 601.107 not resolved with the 
contracting officer must be lodged with the SDR Official within 20 days 
after they were lodged with the contracting officer (unless ADR had been 
used to attempt to resolve them);
    (2) Disagreements under Sec. 601.107 for which ADR had been agreed 
to be used must be lodged with the SDR Official within 10 days after the 
supplier knew or was informed by the contracting officer or otherwise 
that the matter was not resolved;
    (3) Where a supplier is dissatisfied with the contracting officer's 
resolution of a disagreement under Sec. 601.107, the supplier must 
lodge the disagreement with the SDR Official within 10 days after the 
supplier first receives notification of the contracting officer's 
resolution; and
    (4) Contests of decisions under Sec. 601.105 to decline to accept 
or consider proposals must be lodged with the SDR Official within 10 
days of the supplier's receipt of the written notice explaining the 
decision.
    (5) The SDR Official may grant an extension of time to lodge a 
disagreement under Sec. 601.107 or contest of decision under Sec. 
601.105 or to provide supporting information when warranted. Any request 
for an extension must set forth the reasons for the request, be made in 
writing, and be delivered to the SDR Official on or before the time to 
lodge a disagreement lapses.
    (e) Disagreement decision process. The SDR Official will promptly 
provide a copy of a disagreement to the contracting officer, who will 
promptly notify other interested parties. The SDR Official will consider 
a disagreement and any response by other interested parties and 
appropriate Postal Service

[[Page 198]]

officials within a time frame established by the SDR Official. The SDR 
Official may also meet individually or jointly with the person or 
organization lodging the disagreement, other interested parties, and/or 
Postal Service officials, and may undertake other activities in order to 
obtain materials, information, or advice that may help to resolve the 
disagreement. The person or organization lodging the disagreement, other 
interested parties, or Postal Service officials must promptly provide 
all relevant, nonprivileged materials and other information requested by 
the SDR Official. If a submission contains trade secrets or other 
confidential information, it should be accompanied by a copy of the 
submission from which the confidential matter has been redacted. The SDR 
Official will determine whether any redactions are appropriate and will 
be solely responsible for determining the treatment of any redacted 
materials. After obtaining such information, materials, and advice as 
may be needed, the SDR Official will promptly issue a written decision 
resolving the disagreement and will deliver the decision to the person 
or organization lodging the disagreement, other interested parties, and 
appropriate Postal Service officials. When resolving a disagreement 
raised under Sec. 601.107, the SDR Official may grant remedies 
including, but not limited to, the following:
    (1) Directing the contracting officer to revise the solicitation or 
to issue a new solicitation;
    (2) Directing the contracting officer to recompete the requirement;
    (3) Directing the contracting officer to reevaluate the award on the 
basis of current proposals and the evaluation factors contained in the 
solicitation; and
    (4) Directing the contracting officer to terminate the contract or 
to refrain from exercising options under the contract.
    (f) Guidance. The SDR Official will be guided by the regulations 
contained in this part and all applicable public laws enacted by 
Congress. Non-Postal Service procurement rules or regulations and 
revoked Postal Service regulations will not apply or be taken into 
account. Failure of any party to provide requested information may be 
taken into account by the SDR Official in the decision.
    (g) Final resolution by the SDR Official and final contract award of 
the Postal Service. A resolution by the SDR Official will be final and 
binding. If the SDR Official's final resolution affirms the original 
contract award of the contracting officer, the contracting officer's 
original contract award becomes the Postal Service's final contract 
award, and may be subject to judicial review as described in paragraph 
(h) of this section. If the SDR Official's final resolution directs that 
the Postal Service terminate the contract award and issue a new 
solicitation, recompete the requirement, or reevaluate the current 
award, the contracting officer shall implement promptly the SDR 
Official's final resolution. However, any contract award made by the 
contracting officer after a resolicitation, recompetition, or 
reevaluation directed by the SDR Official is not a final contract award 
of the Postal Service that may be subject to judicial review unless and 
until disagreements concerning that contract award have been lodged and 
resolved with finality by the SDR Official.
    (h) Judicial review. The Postal Service's final contract award, as 
described in paragraph Sec. 601.108(g), may be appealed to a Federal 
court with jurisdiction based only upon an alleged violation of the 
regulations contained in this part or an applicable public law enacted 
by Congress. The party lodging the disagreement may seek review of the 
Postal Service's final contract award only after the mandatory 
administrative remedies provided under Sec. 601.107 and Sec. 601.108 
have been exhausted.
    (i) Resolution timeframe. It is intended that this procedure 
generally will resolve disagreements under Sec. 601.107 or contests of 
decisions under Sec. 601.105 within approximately 30 days after receipt 
by the SDR Official. The time may be shortened or lengthened depending 
on the complexity of the issues and other relevant considerations.

[75 FR 1542, Jan. 12, 2010]



Sec. 601.109  Contract claims and disputes.

    (a) General. This section implements the Contract Disputes Act of 
1978, as

[[Page 199]]

amended (41 U.S.C. 601-613). If ADR is used, the SDR official may serve 
as a mediator for contract performance disagreements prior to bringing a 
contract claim or dispute under this part.
    (b) Policy. It is the Postal Service's intent to resolve contractual 
claims and disputes by mutual agreement at the level of an authorized 
contracting officer whenever possible. In addition, the Postal Service 
supports and encourages the use of alternative dispute resolution as an 
effective way to understand, address, and resolve conflicts with 
suppliers. Efforts to resolve differences should be made before the 
issuance of a final decision on a claim, and even when the supplier does 
not agree to use ADR, the contracting officer should consider holding 
informal discussions between the parties in order to resolve the 
conflict before the issuance of a final decision.
    (c) Supplier claim initiation. Supplier claims must be submitted in 
writing to the contracting officer for final decision. The contracting 
officer must document the contract file with evidence of the date of 
receipt of any submission that the contracting officer determines is a 
claim. Supplier claims must be submitted within 6 years after accrual of 
a claim unless the parties agreed to a shorter time period. The 6-year 
time period does not apply to contracts awarded prior to October 1, 
1995.
    (d) Postal Service claim initiation. The contracting officer must 
issue a written decision on any Postal Service claim against a supplier, 
within six years after accrual of a claim, unless the parties agreed in 
writing to a shorter time period. The 6-year time period does not apply 
to contracts awarded prior to October 1, 1995, or to a Postal Service 
claim based on a supplier claim involving fraud.
    (e) Certified claims. Each supplier claim exceeding $100,000 must be 
accompanied by a certification in accordance with the supplier's 
contract.
    (f) Misrepresentation or fraud. When the contracting officer 
determines that the supplier is unable to support any part of the claim 
and there is evidence or reason to believe the inability is attributable 
to either misrepresentation of fact or fraud on the supplier's part, the 
contracting officer must deny that part of the claim and refer the 
matter to the Office of Inspector General.
    (g) Decision and appeal--(1) Contracting officer's authority. A 
contracting officer is authorized to decide or settle all claims arising 
under or relating to a contract subject to the Contract Disputes Act, 
except for:
    (i) Claims or disputes for penalties or forfeitures prescribed by 
statutes or regulation that a Federal agency administers; or
    (ii) Claims involving fraud.
    (2) Contracting officer's decision. The contracting officer must 
review the facts pertinent to the claim, and may obtain assistance from 
assigned counsel and other advisors, and issue a final decision in 
writing. The decision must include a description of the claim or dispute 
with references to the pertinent contract provisions, a statement of the 
factual areas of agreement and disagreement, and a statement of the 
contracting officer's decision with supporting rationale.
    (3) Insufficient information. When the contracting officer cannot 
issue a decision because the supplier has not provided sufficient 
information, the contracting officer may request the required 
information. Further failure to provide the requested information is an 
adequate reason to deny the claim.
    (4) Furnishing Decisions. The contracting officer must furnish a 
copy of the decision to the supplier by Certified Mail\TM\, return 
receipt requested, or by any other method that provides evidence of 
receipt.
    (5) Decisions on claims for $100,000 or less. If the supplier has 
asked for a decision within sixty days, the contracting officer must 
issue a final decision on a claim of $100,000 or less within sixty 
calendar days of its receipt. The supplier may consider the contracting 
officer's failure to issue a decision within the applicable time period 
as a denial of its claim, and may file a suit or appeal on the claim.
    (6) Decisions on certified claims. For certified claims over 
$100,000, the contracting officer must either issue a final decision 
within sixty days of their receipt or notify the supplier within the 60-
day period of the time when a decision will be issued. The time period 
established must be reasonable, taking

[[Page 200]]

into account the size and complexity of the claim, the adequacy of the 
supplier's supporting data, and any other relevant factors.
    (7) Wording of decisions. The contracting officer's final decision 
must contain the following paragraph: ``This is the final decision of 
the contracting officer pursuant to the Contract Disputes Act of 1978 
and the clause of your contract entitled Claims and Disputes. You may 
appeal this decision to the Postal Service Board of Contract Appeals by 
mailing or otherwise furnishing written notice (preferably in 
triplicate) to the contracting officer within ninety days from the date 
you receive this decision. The notice should identify the contract by 
number, reference this decision, and indicate that an appeal is 
intended. Alternatively, you may bring an action directly in the United 
States Court of Federal Claims within twelve months from the date you 
receive this decision.''
    (8) Additional wording for decisions of $50,000 or less. When the 
claim or claims denied total $50,000 or less, the contracting officer 
must add the following to the paragraph: ``In taking an appeal to the 
Board of Contract Appeals, you may include in your notice of appeal an 
election to proceed under the Board's small claims (expedited) 
procedure, which provides for a decision within approximately 120 days, 
or an election to proceed under the Board's accelerated procedure, which 
provides for a decision within approximately 180 days. If you do not 
make an election in the notice of appeal, you may do so by written 
notice anytime thereafter.''
    (9) Additional wording for decisions over $50,000 up to $100,000. 
When the claim or claims denied total $100,000 or less, but more than 
$50,000, the contracting officer must add the following to the 
paragraph: ``In taking an appeal to the Board of Contract Appeals, you 
may include in your notice of appeal an election to proceed under the 
Board's accelerated procedure, which provides for a decision within 
approximately 180 days. If you do not make an election in the notice of 
appeal, you may do so by written notice anytime thereafter.''
    (10) Information and resources. Contracting officers must have 
sufficient information available at the time a final decision is issued 
on a claim so resolution of an appeal within the period set for an 
expedited disposition will not be delayed. Once an appeal is docketed, 
and expedited disposition is elected, contracting officers must devote 
sufficient resources to the appeal to ensure the schedule for resolution 
is met. Nothing in this part precludes an effort by the parties to 
settle a controversy after an appeal has been filed, although such 
efforts to settle the controversy will not suspend processing the 
appeal, unless the Board of Contract Appeals so directs.



Sec. 601.110  Payment of claims.

    Any claim amount determined in a final decision to be payable, less 
any portion previously paid, should be promptly paid to the supplier 
without prejudice to either party in the event of appeal or action on 
the claim. In the absence of appeal by the Postal Service, a board or 
court decision favorable in whole or in part to the supplier must be 
implemented promptly. In cases when only the question of entitlement has 
been decided and the matter of amount has been remanded to the parties 
for negotiation, a final decision of the contracting officer must be 
issued if agreement is not reached promptly.



Sec. 601.111  Interest on claim amounts.

    Interest on the amount found due on the supplier's claim must be 
paid from the date the contracting officer received the claim (properly 
certified, if required) or from the date payment would otherwise be due, 
if that date is later, until the date of payment. Simple interest will 
be paid at the rate established by the Secretary of the Treasury for 
each 6-month period in which the claim is pending. Information on the 
rate at which interest is payable is announced periodically in the 
Postal Bulletin.



Sec. 601.112  Review of adverse decisions.

    Any party may seek review of an adverse decision of the Board of 
Contract Appeals in the Court of Appeals for the Federal Circuit or in 
any other appropriate forum.

[[Page 201]]



Sec. 601.113  Debarment, suspension, and ineligibility.

    (a) General. Except as provided otherwise in this part, contracting 
officers may not solicit proposals from, award contracts to, or, when a 
contract provides for such consent, consent to subcontracts with 
debarred, suspended, or ineligible suppliers.
    (b) Definitions--(1) Affiliate. A business, organization, person, or 
individual connected by the fact that one controls or has the power to 
control the other or by the fact that a third party controls or has the 
power to control both. Indications of control include, but are not 
limited to, interlocking management or ownership, identity of interests 
among family members, shared facilities and equipment, contractual 
relationships, common use of employees, or a business entity organized 
following the debarment, suspension, or proposed debarment of a supplier 
which has the same or similar management, ownership, or principal 
employees as the supplier that was debarred, suspended, or proposed for 
debarment. Franchise agreements are not conclusive evidence of 
affiliation if the franchisee has a right to profit in proportion to its 
ownership and bears the risk of loss or failure.
    (2) Debarment. An exclusion from contracting and subcontracting for 
a reasonable, specified period of time commensurate with the seriousness 
of the offense, failure, or inadequacy of performance.
    (3) General Counsel. This includes the General Counsel's authorized 
representative.
    (4) Indictment. Indictment for a criminal offense. An information or 
other filing by competent authority charging a criminal offense is given 
the same effect as an indictment.
    (5) Ineligible. An exclusion from contracting and subcontracting by 
an entity other than the Postal Service under statutes, executive 
orders, or regulations, such as the Davis-Bacon Act, the Service 
Contract Act, the Equal Employment Opportunity Acts, the Walsh-Healy 
Public Contracts Act, or the Environmental Protection Acts and related 
regulations or executive orders, to which the Postal Service is subject 
or has adopted as a matter of policy.
    (6) Suspension. An exclusion from contracting and subcontracting for 
a reasonable period of time due to specified reasons or the pendency of 
a debarment proceeding.
    (7) Supplier. For the purposes of this part, a supplier is any 
individual, person, or other legal entity that:
    (i) Directly or indirectly (e.g., through an affiliate) submits 
offers for, is awarded, or reasonably may be expected to submit offers 
for or be awarded, a Postal Service contract, including a contract for 
carriage under Postal Service or commercial bills of lading, or a 
subcontract under a Postal Service contract; or
    (ii) Conducts business or reasonably may be expected to conduct 
business with the Postal Service as a subcontractor, an agent, or as a 
representative of another supplier.
    (c) Establishment and maintenance of lists--(1) The vice president, 
Supply Management will establish, maintain, and make available a list of 
suppliers debarred or suspended by the Postal Service to contracting 
officers.
    (2) The General Services Administration (GSA) compiles and maintains 
a consolidated list of all persons and entities debarred, suspended, 
proposed for debarment, or declared ineligible by Federal agencies or 
the Government Accountability Office. GSA posts the list on the 
Internet.
    (3) The vice president, Supply Management will notify the GSA of any 
Postal Service debarment, suspension, and change in the status of 
suppliers, including any of their affiliates, on the Postal Service 
list.
    (d) Treatment of suppliers on Postal Service or GSA lists. (1) 
Contracting officers will review the Postal Service and GSA lists before 
making a contract award.
    (2) Suppliers on the Postal Service list are excluded from receiving 
contracts and subcontracts, and contracting officers may not solicit 
proposals or quotations from, award contracts to, or, when a contract 
provides for such consent, consent to subcontracts with such suppliers, 
unless the vice president, Supply Management, or his or her designee, 
after consultation with the General Counsel, has approved such action. 
Suppliers on

[[Page 202]]

the Postal Service list may not provide goods or services to other 
persons or entities for resale, in whole or part, to the Postal Service 
and such other persons or entities are obligated to review the 
consolidated GSA list in order to exclude suppliers debarred or 
suspended by the Postal Service from performing any part of a Postal 
Service contract.
    (3) Suppliers on the GSA list are assigned a code by GSA which is 
related to the basis of ineligibility. The vice president, Supply 
Management maintains a table describing the Postal Service treatment 
assigned to each code. Suppliers on the GSA list who are coded as 
ineligible are excluded from receiving contracts and subcontracts, and 
contracting officers may not solicit proposals or quotations from, award 
contracts to, or, when the contract provides for such consent, consent 
to subcontracts with such suppliers, unless the vice president, Supply 
Management, or designee, after consultation with the General Counsel, 
has approved such action. Suppliers on the GSA list may not provide 
goods or services to other persons or entities for resale, in whole or 
part, to the Postal Service, and such other persons or entities are 
obligated to review the consolidated GSA list in order to exclude 
debarred or suspended suppliers from performing any part of a Postal 
Service contract.
    (4) Suppliers on the GSA list are assigned codes for which the table 
provides other Postal Service guidance, and are considered according to 
that guidance. When so indicated on the table, contracting officers must 
obtain additional information from the entity responsible for 
establishing the supplier's ineligibility, if such information is 
available.
    (5) The debarment, suspension, or ineligibility of a supplier does 
not, of itself, affect the rights and obligations of the parties to any 
valid, pre-existing contract. The Postal Service may terminate for 
default a contract with a supplier that is debarred, suspended, or 
determined to be ineligible. Contracting officers may not add new work 
to any contract with a supplier that is debarred, suspended, or 
determined to be ineligible by supplemental agreement, by exercise of an 
option, or otherwise (unless the work is classified as an insignificant 
or significant minor service change to a mail transportation contract), 
except with the approval of the vice president, Supply Management, or 
designee.
    (e) Causes for debarment--(1) The vice president, Supply Management, 
with the concurrence of the General Counsel, may debar a supplier, 
including its affiliates, for cause such as the following:
    (i) Conviction of a criminal offense incidental to obtaining or 
attempting to obtain contracts or subcontracts, or in the performance of 
a contract or subcontract.
    (ii) Conviction under a Federal antitrust statute arising out of the 
submission of bids or proposals.
    (iii) Commission of embezzlement, theft, forgery, bribery, 
falsification or destruction of records, making false statements, tax 
evasion, or receiving stolen property.
    (iv) Violation of a Postal Service contract so serious as to justify 
debarment, such as willful failure to perform a Postal Service contract 
in accordance with the specifications or within the time limit(s) 
provided in the contract; a record of failure to perform or of 
unsatisfactory performance in accordance with the terms of one or more 
Postal Service contracts occurring within a reasonable period of time 
preceding the determination to debar (except that failure to perform or 
unsatisfactory performance caused by acts beyond the control of the 
supplier may not be considered a basis for debarment); violation of a 
contractual provision against contingent fees; or acceptance of a 
contingent fee paid in violation of a contractual provision against 
contingent fees.
    (v) Any other offense indicating a lack of business integrity or 
business honesty.
    (vi) Any other cause of a serious and compelling nature that 
debarment is warranted.
    (2) The existence of a conviction in paragraph (e)(1)(i) or (ii) of 
this section

[[Page 203]]

can be established by proof of a conviction in a court of competent 
jurisdiction. If appeal taken from such conviction results in a reversal 
of the conviction, the debarment may be removed upon the request of the 
supplier, unless another cause or another basis for debarment exists.
    (3) The existence of any of the other causes in paragraphs 
(e)(1)(iii), (iv),(v), or (vi) of this section can be established by a 
preponderance of the evidence, either direct or indirect, in the 
judgment of the vice president of Supply Management.
    (4) The criminal, fraudulent, or improper conduct of an individual 
may be imputed to the firm with which he or she is or has been connected 
when an impropriety was committed. Likewise, when a firm is involved in 
criminal, fraudulent, or other improper conduct, any person who 
participated in, knew of, or had reason to know of the impropriety may 
be debarred.
    (5) The fraudulent, criminal, or other improper conduct of one 
supplier participating in a joint venture or similar arrangement may be 
imputed to other participating suppliers if the conduct occurred for or 
on behalf of the joint venture or similar arrangement, or with the 
knowledge, approval, or acquiescence of the supplier. Acceptance of the 
benefits derived from the conduct will be evidence of such knowledge, 
approval, or acquiescence.
    (f) Mitigating factors--(1) The existence of any cause for debarment 
does not necessarily require that a supplier be debarred. The decision 
to debar is within the discretion of the vice president, Supply 
Management, with the concurrence of the General Counsel, and must be 
made in the best interest of the Postal Service. The following factors 
may be assessed in determining the seriousness of the offense, failure, 
or inadequacy of performance, and may be taken into account in deciding 
whether debarment is warranted:
    (i) Whether the supplier had established written standards of 
conduct and had published internal control systems at the time of the 
activity that constitutes cause for debarment or had adopted such 
procedures prior to any Postal Service investigation of the activity 
cited as a cause for debarment.
    (ii) Whether the supplier brought the activity cited as a cause for 
debarment to the attention of the Postal Service in a prompt, timely 
manner.
    (iii) Whether the supplier promptly and fully investigated the 
circumstances involving debarment and, if so, made the full results of 
the investigation available to appropriate officials of the Postal 
Service.
    (iv) Whether the supplier cooperated fully with the Postal Service 
during its investigation into the matter.
    (v) Whether the supplier paid or agreed to pay all criminal, civil, 
and administrative liability and other costs arising out of the improper 
activity, including any investigative or administrative costs incurred 
by the Postal Service, and made or agreed to make full restitution.
    (vi) Whether the supplier took appropriate disciplinary action 
against the individual(s) responsible for the activity that could cause 
debarment.
    (vii) Whether the supplier implemented and/or agreed to implement 
remedial measures, including those identified by the Postal Service.
    (viii) Whether the supplier instituted and/or agreed to institute 
new and/or revised review and control procedures and ethics programs.
    (ix) Whether the supplier had adequate time to eliminate 
circumstances within the supplier's organization that could lead to 
debarment.
    (x) Whether the supplier's senior officers and mid-level management 
recognize and understand the seriousness of the misconduct giving rise 
to debarment.
    (2) The existence or nonexistence of mitigating factors or remedial 
measures such as those above is not determinative whether or not a 
supplier should be debarred. If a cause for debarment exists, the 
supplier has the burden of demonstrating, to the satisfaction of the 
vice president, Supply Management that debarment is not warranted or 
necessary.
    (g) Period of debarment--(1) When an applicable statute, executive 
order, or controlling regulation of other agencies provides a specific 
period of debarment, that period applies. In other cases, debarment by 
the Postal Service should be for a reasonable, definite,

[[Page 204]]

stated period of time, commensurate with the seriousness of the offense 
or the failure or inadequacy of performance. Generally, a period of 
debarment should not exceed three years. When debarment for an 
additional period is deemed necessary, notice of the proposed additional 
period of debarment must be furnished to the supplier as in the case of 
original debarment.
    (2) Except as precluded by an applicable statute, executive order, 
or controlling regulation of another agency, debarment may be removed or 
the period may be reduced by the vice president, Supply Management when 
requested by the debarred supplier and when the request is supported by 
a reasonable justification, such as newly discovered material evidence, 
reversal of a conviction, bona fide change of ownership or management, 
or the elimination of the causes for which debarment was imposed. The 
vice president, Supply Management may, at his or her discretion, deny 
any request or refer it to the Judicial Officer for a hearing and for 
findings of fact, which the vice president, Supply Management will 
consider when deciding the matter. When a debarment is removed or the 
debarment period is reduced, the vice president, Supply Management must 
state in writing the reason(s) for the removal of the debarment or the 
reduction of the period of debarment.
    (h) Procedural requirements for debarment--(1) After securing the 
concurrence of the General Counsel, the vice president, Supply 
Management will initiate a debarment proceeding by sending the supplier 
a written notice of proposed debarment. The notice will be served by 
sending it to the last known address of the supplier by Certified Mail, 
return receipt requested. A copy of the notice will be furnished to the 
Office of Inspector General. The notice will state that debarment is 
being considered; the reason(s) for the proposed debarment; the 
anticipated period of debarment and the proposed effective date; and 
that, within thirty days of the notice, the supplier may submit, in 
person or in writing, or through a representative, information and 
argument in opposition to the proposed debarment. In the event a 
supplier does not submit information or argument in opposition to the 
proposed debarment to the vice president, Supply Management within the 
time allowed, the debarment will become final with no further review or 
appeal.
    (2) If the proposed debarment is based on a conviction or civil 
judgment, the vice president, Supply Management, with the concurrence of 
the General Counsel, may decide whether debarment is merited based on 
the conviction or judgment, including any information received from the 
supplier. If the debarment is based on other circumstances or if there 
are questions regarding material facts, the vice president, Supply 
Management may seek additional information from the supplier and/or 
other persons, and may request the Judicial Officer to hold a fact-
finding hearing on such matters. The hearing will be governed by rules 
of procedure promulgated by the Judicial Officer. The vice president, 
Supply Management may reject any findings of fact, in whole or in part, 
when they are clearly erroneous.
    (3) When the vice president, Supply Management proposes to debar a 
supplier already debarred by another government agency for a period 
concurrent with such debarment, the debarment proceedings before the 
Postal Service may be based entirely upon the record of evidence, facts, 
and proceedings before the other agency, upon any additional facts the 
Postal Service deems relevant, or on the decision of another government 
agency. In such cases, the findings of facts by another government 
agency may be considered as established, but, within thirty days of the 
notice of proposed debarment, the supplier may submit, in person or in 
writing, or through a representative, any additional facts, information, 
or argument to the vice president, Supply Management, and to explain why 
debarment by the Postal Service should not be imposed.
    (4) Questions of fact to be resolved by a hearing before the 
Judicial Officer will be based on the preponderance of the evidence.
    (5) After consideration of the circumstances and any information and 
argument submitted by the supplier,

[[Page 205]]

the vice president, Supply Management, with the concurrence of the 
General Counsel, will issue a written decision regarding whether the 
supplier is debarred, and, if so, for the period of debarment. The 
decision will be mailed to the supplier by Certified Mail, return 
receipt requested. A copy of the decision will be furnished to the 
Office of the Inspector General. The decision will be final and binding, 
unless the decision was procured by fraud or other criminal misconduct, 
or the decision was obtained in violation of the regulations contained 
in this part or an applicable public law enacted by Congress.
    (i) Causes for suspension. The vice president, Supply Management, 
may suspend any supplier, including any of its affiliates:
    (1) If the supplier commits, is indicted for, or is convicted of 
fraud or a criminal offense incidental to obtaining, attempting to 
obtain, or performing a government contract, violates a Federal 
antitrust statute arising out of the submission of bids and proposals, 
or commits or engages in embezzlement, theft, forgery, bribery, 
falsification or destruction of records, or receipt of stolen property, 
or any other offense indicating a lack of business integrity or business 
honesty;
    (2) For any other cause of such serious and compelling nature that 
suspension is warranted; or
    (3) If the Postal Service has notified a supplier of its proposed 
debarment under this Part.
    (j) Period of suspension. A suspension will not exceed one year in 
duration, except a suspension may be extended for reasonable periods of 
time beyond one year by the vice president, Supply Management. The 
termination of a suspension will not prejudice the Postal Service's 
position in any debarment proceeding. A suspension will be superseded by 
a decision rendered by the vice president, Supply Management, under 
paragraph (h)(5) of this section.
    (k) Procedural requirements for suspension--(1) The vice president, 
Supply Management will notify a supplier of a suspension or an extension 
of a suspension and the reason(s) for the suspension or extension in 
writing sent to the supplier by Certified Mail, return receipt 
requested, within ten days after the effective date of the suspension or 
extension. A copy of the notice will be furnished to the Office of the 
Inspector General.
    (2) The notice will state the cause(s) for the suspension or 
extension.
    (3) Within thirty days of notice of suspension or an extension, a 
supplier may submit to the vice president, Supply Management, in 
writing, any information or reason(s) the supplier believes makes a 
suspension or an extension inappropriate, and the vice president, Supply 
Management, in consultation with the General Counsel, will consider the 
supplier's submission, and, in their discretion, may revoke a suspension 
or an extension of a suspension. If a suspension or extension is 
revoked, the revocation will be in writing and a copy of the revocation 
will be sent to the supplier by Certified Mail, return receipt 
requested. A copy of the revocation will be furnished to the Office of 
the Inspector General.



PART 602_INTELLECTUAL PROPERTY RIGHTS OTHER THAN PATENTS--Table of Contents



Sec.
602.1 General principles.
602.2 Office of Licensing, Philatelic and Retail Services Department.
602.3 Requests for use.

    Authority: 39 U.S.C. 401(5).

    Source: 43 FR 42250, Sept. 20, 1978, unless otherwise noted.



Sec. 602.1  General principles.

    It is the policy of the Postal Service to secure full ownership 
rights for its intellectual properties other than patents (hereinafter, 
intellectual properties) having significant economic or other business 
value, except when to do so would be contrary to the best interest of 
the Postal Service. Intellectual property rights shall be acquired and 
managed so as to:
    (a) Promote the economic, operational, and competitive well-being of 
the Postal Service;
    (b) Limit restrictions on the use of Postal Service intellectual 
property to a minimum consistent with its statutory obligations;
    (c) Assure that all potential users are treated fairly;

[[Page 206]]

    (d) Give due regard to other relevant considerations.



Sec. 602.2  Office of Licensing, Philatelic and Retail Services Department.

    In accordance with the foregoing policy, the Postal Service Office 
of Licensing, Philatelic and Retail Services Department, formulates the 
program for the management of the Postal Service's rights in 
intellectual property (except patents and technical data rights in 
Postal Service contracts, which is the responsibility of Postal Service 
contracting officers). The Office of Licensing and the contracting 
officers identify intellectual properties in which the Postal Service 
should secure its rights. It receives and makes recommendations for the 
disposition of applications for use of Postal Service intellectual 
property. It periodically reviews the intellectual property rights 
portfolio to determine the extent of the utilization of protected 
properties and to recommend relinquishment of ownership when it 
considers ownership no longer desirable. It is advised by the Office of 
Procurement of performance under license agreements and makes 
recommendations for corrective measures when necessary. In consultation 
with the Law Department, it recommends appropriate action against 
unauthorized use of intellectual property.

[56 FR 58859, Nov. 22, 1991]



Sec. 602.3  Requests for use.

    (a) Inquiries concerning licenses to use Postal Service trademarks 
or service marks, copyright materials and intellectual property other 
than patents and technical data rights in Postal Service contracts must 
be sent to: Office of Licensing, Philatelic and Retail Services 
Department, US Postal Service, 475 L'Enfant Plaza SW., Washington, DC 
20260-6700.
    (b) Requests for the use of intellectual property should be 
submitted on the form provided by the Office of Licensing to the 
licensing advisor designated by that Office. Each request is considered 
in a timely fashion in accordance with the policy established in this 
section. Requests favorably considered are forwarded to the Office of 
Licensing for approval.
    (c) Approved requests contemplating a permissive (no fee) use of the 
intellectual property are evidenced by a letter of permission furnished 
to the requester.
    (d) Approved requests contemplating a contractual (fee) use of the 
intellectual property are forwarded to the Office of Licensing for the 
negotiation of a satisfactory license agreement.
    (e) Each license agreement is subject to legal review.
    (f) Requesters are promptly advised of unapproved requests.
    A transmittal letter effecting the above changes to the Domestic 
Mail Manual will be published and transmitted automatically to 
subscribers. Notice of issuance of the transmittal letter will be 
published in the Federal Register as provided by 39 CFR 111.3.

[56 FR 58859, Nov. 22, 1991]



                         SUBCHAPTER I [RESERVED]



[[Page 207]]



SUBCHAPTER J_POSTAL SERVICE DEBT OBLIGATIONS; DISBURSEMENT POSTAL MONEY 
                                 ORDERS





PART 760_APPLICABILITY OF TREASURY DEPARTMENT REGULATIONS--Table of 
Contents





Sec. 760.1  Treasury Department regulations; applicability to Postal 
Service.

    The provisions of Treasury Department Circular No. 300, 31 CFR part 
306 (other than subpart O), as amended from time to time, shall apply 
insofar as appropriate to obligations of the U.S. Postal Service to the 
extent they are consistent with the Trust Indenture of the Postal 
Service and the agreement between the Postal Service and the Federal 
Reserve Bank of New York acting as Fiscal Agent of the United States on 
behalf of the Postal Service. Definitions and terms used in Treasury 
Department Circular 300 should be read as though modified to effectuate 
the application of the regulations to the U.S. Postal Service.

(39 U.S.C. Secs. 401, 402, 2005)

[37 FR 211, Jan. 7, 1972]



PART 761_BOOK-ENTRY PROCEDURES--Table of Contents



Sec.
761.1 Definition of terms.
761.2 Authority of Reserve Banks.
761.3 Scope and effect of book-entry procedure.
761.4 Transfer or pledge.
761.5 Withdrawal of Postal Service securities.
761.6 Delivery of Postal Service securities.
761.7 Registered bonds and notes.
761.8 Servicing book-entry Postal Service securities; payment of 
          interest, payment at maturity or upon call.

    Authority: 39 U.S.C. 401, 402, 2005.

    Source: 37 FR 16801, Aug. 19, 1972, unless otherwise noted.



Sec. 761.1  Definition of terms.

    In this part, unless the context otherwise requires or indicates:
    (a) Reserve Bank means the Federal Reserve Bank of New York (and any 
other Federal Reserve Bank which agrees to issue Postal Service 
securities in book-entry form) as fiscal agent of the United States 
acting on behalf of the Postal Service and when indicated acting in its 
individual capacity.
    (b) Postal Service security means any obligation of the Postal 
Service issued under 39 U.S.C. 2005, in the form of a definitive Postal 
Service security or a book-entry Postal Service security.
    (c) Definitive Postal Service security means a Postal Service 
security in engraved or printed form.
    (d) Book-entry Postal Service security means a Postal Service 
security in the form of an entry made as prescribed in these regulations 
on the records of a Reserve Bank.
    (e) Pledge includes a pledge of, or any other security interest in, 
Postal Service securities as collateral for loans or advances or to 
secure deposits of public moneys or the performance of an obligation.
    (f) Date of call is the date fixed in the authorizing resolution of 
the Board of Governors of the Postal Service on which the obligor will 
make payment of the security before maturity in accordance with its 
terms.
    (g) Member bank means any national bank, State bank, or bank or 
trust company which is a member of a Reserve bank.



Sec. 761.2  Authority of Reserve Banks.

    Each Reserve Bank is hereby authorized, in accordance with the 
provisions of this part, to (a) issue book-entry Postal Service 
securities by means of entries on its records which shall include the 
name of the depositor, the amount, the loan title (or series) and 
maturity date; (b) effect conversions between book-entry Postal Service 
securities and definitive Postal Service securities; (c) otherwise 
service and maintain book-entry Postal Service securities; and (d) issue 
a confirmation of transaction in the form of a written advice (serially 
numbered or otherwise) which specifies the amount and description of any 
securities; that is, loan title (or series) and maturity date, sold

[[Page 208]]

or transferred, and the date of the transaction.



Sec. 761.3  Scope and effect of book-entry procedure.

    (a) A Reserve Bank as fiscal agent of the United States acting on 
behalf of the Postal Service may apply the book-entry procedure provided 
for in this part to any Postal Service securities which have been or are 
hereafter deposited for any purpose in accounts with it in its 
individual capacity under terms and conditions which indicate that the 
Reserve Bank will continue to maintain such deposit accounts in its 
individual capacity, notwithstanding application of the book-entry 
procedure to such securities. This paragraph is applicable, but not 
limited, to securities deposited:
    (1) As collateral pledged to a Reserve Bank (in its individual 
capacity) for advances by it;
    (2) By a member bank for its sole account;
    (3) By a member bank held for the account of its customers;
    (4) In connection with deposits in a member bank of funds of States, 
municipalities, or other political subdivisions; or,
    (5) In connection with the performance of an obligation or duty 
under Federal, State, municipal, or local law, or judgments or decrees 
of courts.

The application of the book-entry procedure under this paragraph shall 
not derogate from or adversely affect the relationships that would 
otherwise exist between a Reserve Bank in its individual capacity and 
its depositors concerning any deposits under this paragraph. Whenever 
the book-entry procedure is applied to such Postal Service securities, 
the Reserve Bank is authorized to take all action necessary in respect 
of the book-entry procedure to enable such Reserve Bank in its 
individual capacity to perform its obligations as depository with 
respect to such Postal Service securities.
    (b) A Reserve Bank as fiscal agent of the United States acting on 
behalf of the Postal Service may apply the book-entry procedure to 
Postal Service securities deposited as collateral pledged to the United 
States under Treasury Department Circulars Nos. 92 and 176, both as 
revised and amended, and may apply the book-entry procedure, with the 
approval of the Secretary of the Treasury, to any other Postal Service 
securities deposited with a Reserve Bank as fiscal agent of the United 
States.
    (c) Any person having an interest in Postal Service securities which 
are deposited with a Reserve Bank (in either its individual capacity or 
as fiscal agent of the United States) for any purpose shall be deemed to 
have consented to their conversion to book-entry Postal Service 
securities pursuant to the provisions of this part, and in the manner 
and under the procedures prescribed by the Reserve Bank.
    (d) No deposits shall be accepted under this section on or after the 
date of maturity or call of the securities.



Sec. 761.4  Transfer or pledge.

    (a) A transfer or pledge of book-entry Postal Service securities to 
a Reserve bank (in its individual capacity or as fiscal agent of the 
United States) or to the United States, or to any transferee or pledgee 
eligible to maintain an appropriate book-entry account in its name with 
a Reserve bank under this part, is effected and perfected, 
notwithstanding any provision of law to the contrary, by a Reserve bank 
making an appropriate entry in its records of the securities transferred 
or pledged. The making of such an entry in the records of a Reserve bank 
shall (1) have the effect of a delivery in bearer form of definitive 
Postal Service securities; (2) have the effect of a taking of delivery 
by the transferee or pledgee; (3) constitute the transferee or pledgee a 
holder; and (4) if a pledge, effect a perfected security interest 
therein in favor of the pledgee. A transfer or pledge of book-entry 
Postal Service securities effected under this paragraph shall have 
priority over any transfer, pledge, or other interest, theretofore or 
thereafter effected or perfected under paragraph (b) of this section or 
in any other manner.
    (b) A transfer or a pledge of transferable Postal Service 
securities, or any interest therein, which is maintained by a Reserve 
bank (in its individual capacity or as fiscal agent of the United 
States) in a book-entry account under

[[Page 209]]

this part, including securities in book-entry form under Sec. 
761.3(a)(3), is effected, and a pledge is perfected, by any means that 
would be effective under applicable law to effect a transfer or to 
effect and perfect a pledge of the Postal Service securities, or any 
interest therein, if the securities were maintained by the Reserve bank 
in bearer definitive form. For purposes of transfer or pledge hereunder, 
book-entry Postal Service securities maintained by a Reserve bank shall, 
notwithstanding any provision of law to the contrary, be deemed to be 
maintained in bearer definitive form. A Reserve bank maintaining book-
entry Postal Service securities either in its individual capacity or as 
fiscal agent of the United States is not a bailee for purposes of 
notification of pledges of those securities under this paragraph, or a 
third person in possession for purposes of acknowledgment of transfers 
thereof under this paragraph. Where transferable Postal Service 
securities are recorded on the books of a depositary (a bank, banking 
institution, financial firm, or similar party, which regularly accepts 
in the course of its business Postal Service securities as a custodial 
service for customers, and maintains accounts in the names of such 
customers reflecting ownership of or interest in such securities) for 
account of the pledgor or transferor thereof and such securities are on 
deposit with a Reserve bank in a book-entry account hereunder, such 
depositary shall, for purposes of perfecting a pledge of such securities 
or effecting delivery of such securities to a purchaser under applicable 
provisions of law, be the bailee to which notification of the pledge of 
the securities may be given or the third person in possession from which 
acknowledgment of the holding of the securities for the purchaser may be 
obtained. A Reserve bank will not accept notice or advice of a transfer 
or pledge effected or perfected under this paragraph, and any such 
notice or advice shall have no effect. A Reserve bank may continue to 
deal with its depositor in accordance with the provisions of this part, 
notwithstanding any transfer or pledge effected or perfected under this 
paragraph.
    (c) No filing or recording with a public recording office or officer 
shall be necessary or effective with respect to any transfer or pledge 
of book-entry Postal Service securities or any interest therein.
    (d) A Reserve Bank shall, upon receipt of appropriate instructions, 
convert book-entry Postal Service securities into definitive Postal 
Service securities and deliver them in accordance with such 
instructions; no such conversion shall effect existing interests in such 
Postal Service securities.
    (e) A transfer of book-entry Postal Service securities within a 
Reserve Bank shall be made in accordance with procedures established by 
the Bank not inconsistent with this part.
    (f) All requests for transfer or withdrawal must be made prior to 
the maturity or date of call of the securities.

[37 FR 16801, Aug. 19, 1972, as amended at 38 FR 12919, May 17, 1973]



Sec. 761.5  Withdrawal of Postal Service securities.

    (a) A depositor of book-entry Postal Service securities may withdraw 
them from a Reserve Bank by requesting delivery of like definitive 
Postal Service securities to itself or on its order to a transferee.
    (b) Postal Service securities which are actually to be delivered 
upon withdrawal may be issued either in registered or in bearer form.



Sec. 761.6  Delivery of Postal Service securities.

    A Reserve Bank which has received Postal Service securities and 
effected pledges, made entries regarding them, or transferred or 
delivered them according to the instructions of its depositor is not 
liable for conversion or for participation in breach of fiduciary duty 
even though the depositor had no right to dispose of or take other 
action in respect of the securities. A Reserve Bank shall be fully 
discharged of its obligations under this part by the delivery of Postal 
Service securities in definitive form to its depositor or upon the order 
of such depositor. Customers of a member bank or other depositary (other 
than a Reserve Bank) may obtain Postal Service securities in definitive 
form only by causing the depositor

[[Page 210]]

of the Reserve Bank to order the withdrawal thereof from the Reserve 
Bank.



Sec. 761.7  Registered bonds and notes.

    No formal assignment shall be required for the conversion to book-
entry Postal Service securities of registered Postal Service securities 
held by a Reserve Bank (in either its individual capacity or as fiscal 
agent of the United States) on the effective date of this part for any 
purpose specified in Sec. 761.3(a). Registered Postal Service 
securities deposited thereafter with a Reserve Bank for any purpose 
specified in Sec. 761.3 shall be assigned for conversion to book-entry 
Postal Service securities. The assignment, which shall be executed in 
accordance with the provisions of part 760 of this subchapter and 
subpart F of 31 CFR part 306, so far as applicable, shall be to 
``Federal Reserve Bank of ------------ as fiscal agent of the United 
States acting on behalf of the Postal Service for conversion to book-
entry Postal Service securities.''



Sec. 761.8  Servicing book-entry Postal Service securities; payment of
interest, payment at maturity or upon call.

    Interest becoming due on book-entry Postal Service securities shall 
be charged in the Postal Service Fund on the interest due date and 
remitted or credited in accordance with the depositor's instructions. 
Such securities shall be redeemed and charged in the Postal Service Fund 
on the date of maturity, call or advance refunding, and the redemption 
proceeds, principal and interest, shall be disposed of in accordance 
with the depositor's instructions.



PART 762_DISBURSEMENT POSTAL MONEY ORDERS--Table of Contents



                Subpart A_General, Definitions, Issuance

Sec.
762.11 General.
762.12 Definitions.
762.13 Issuance.
762.14 Amounts for which disbursement postal money orders may be issued.
762.15 Postal Service payments not made by disbursement postal money 
          order.

 Subpart B_Endorsements, Payment, Guaranties, Warranties and Processing 
                   of Disbursement Postal Money Orders

762.21 Scope.
762.22 Definitions.
762.23 General rules.
762.24 Guaranty of endorsements.
762.25 Reclamation of amounts of paid disbursement postal money orders.
762.26 Postal facilities not to cash disbursement postal money orders.
762.27 Processing of disbursement postal money orders by Federal Reserve 
          Banks.
762.28 Release of original disbursement postal money orders.
762.29 Endorsement of disbursement postal money orders by payees.
762.30 Disbursement postal money orders issued to incompetent payees.
762.31 Disbursement postal money orders issued to deceased payees.

 Subpart C_Issuance of Substitutes for Lost, Destroyed, Mutilated, and 
                Defaced Disbursement Postal Money Orders

762.41 Advice of non-receipt or loss, destruction, or mutilation.
762.42 Request for substitute disbursement postal money orders; 
          requirements for undertaking of indemnity.
762.43 Issuance of substitute disbursement postal money order.
762.44 Receipt or recovery of original disbursement postal money order.
762.45 Removal of stoppage of payment.

    Authority: 39 U.S.C. 401(2), 401(3), 401(4), 401(10), and 404(6).

    Source: 40 FR 52371, Nov. 10, 1975, unless otherwise noted.



                Subpart A_General, Definitions, Issuance



Sec. 762.11  General.

    The Postal Service, at its discretion, issues a specialized postal 
money order, designated a Disbursement Postal Money Order in payment of 
Postal Service obligations. Disbursement Postal Money Orders are 
distinguishable on their face from other postal money orders in the 
following ways:
    (a) Disbursement Postal Money Orders have words of negotiability--
``Pay to the order of''--printed on their face, while other postal money 
orders simply bear the words ``Pay to'' on their face;

[[Page 211]]

    (b) Disbursement Postal Money Orders, unlike other postal money 
orders, bear on their face the phrase, ``This special money order is 
drawn by the Postal Service to pay one of its own obligations.''; and
    (c) The amounts of Disbursement Postal Money Orders are printed in 
words as well as numbers, while the amounts of postal money orders 
available at post offices are printed in numbers only.



Sec. 762.12  Definitions.

    As used in part 762 of this chapter, the term:
    (a) Disbursement Postal Money Order means a money order (described 
in Part 762) issued by the Postal Service to pay one of its own 
obligations.
    (b) Federal Reserve Bank means a Federal Reserve Bank or branch 
thereof.
    (c) Financial organization means any bank, savings bank, savings and 
loan association or similar institution, or Federal or State chartered 
credit union.
    (d) Person or persons means an individual or individuals, or an 
organization or organizations, whether incorporated or not, including 
all forms of banking institutions.
    (e) Presenting Bank means a bank or other depositor of a Federal 
Reserve Bank which presents Disbursement Postal Money Orders to and 
receives credit therefor from a Federal Reserve Bank.
    (f) Reclamation means the action taken by the Postal Service to 
obtain refund of the amounts of paid Disbursement Postal Money Orders.
    (g) Postal Service means the U.S. Postal Service.



Sec. 762.13  Issuance.

    Disbursement Postal Money Orders are issued solely by Postal Data 
Centers and solely for the purpose of paying Postal Service obligations. 
Accordingly, Disbursement Postal Money Orders may be issued in lieu of 
U.S. Treasury checks.



Sec. 762.14  Amounts for which disbursement postal money orders may be
issued.

    Disbursement Postal Money Orders may be issued for any amount 
appropriate to pay Postal Service Obligations. There is no maximum 
amount above which a Disbursement Postal Money Order may not be issued.



Sec. 762.15  Postal Service payments not made by disbursement postal 
money order.

    Postal Service payments not made by Disbursement Postal Money Order 
are made by cash, U.S. Treasury Check, or by regular postal money order, 
and may be made by electronic funds transfer.



 Subpart B_Endorsements, Payment, Guaranties, Warranties and Processing 
                   of Disbursement Postal Money Orders



Sec. 762.21  Scope.

    The regulations in this subpart prescribe the requirements for 
endorsement and the conditions for payment of Disbursement Postal Money 
Orders drawn by the Postal Service.



Sec. 762.22  Definitions.

    For definitions applicable to this subpart see Sec. 762.12 of this 
chapter.



Sec. 762.23  General rules.

    All Disbursement Postal Money Orders drawn by the Postal Service are 
payable without limitation of time. The Postal Service shall have the 
usual right of a drawee to examine Disbursement Postal Money Orders 
presented for payment and refuse payment of any Disbursement Postal 
Money Orders, and shall have a reasonable time to make such examination. 
Disbursement Postal Money Orders shall be deemed to be paid by the 
Postal Service only after first examination has been fully completed. If 
the Postal Service is on notice of a doubtful question of law or fact 
when a Disbursement Postal Money Order is presented for payment, payment 
will be deferred pending settlement by the Postal Service.



Sec. 762.24  Guaranty of endorsements.

    The presenting bank and the endorsers of a Disbursement Postal Money 
Order presented to the Postal Service for payment shall be deemed to 
guarantee to the Postal Service that all

[[Page 212]]

prior endorsements are genuine, whether or not an express guaranty is 
placed on the Disbursement Postal Money Order. When the first 
endorsement has been made by one other than the payee personally, the 
presenting bank and the endorsers shall be deemed to guarantee to the 
Postal Service, in addition to other warranties, that the person who so 
endorsed had unqualified capacity and authority to endorse the 
Disbursement Postal Money Order on behalf of the payee.



Sec. 762.25  Reclamation of amounts of paid disbursement postal money
orders.

    The Postal Service shall have the right to demand refund from the 
presenting bank of the amount of a paid Disbursement Postal Money Order 
if after payment the Disbursement Postal Money Order is found to bear a 
forged or unauthorized endorsement, or an endorsement by another for a 
deceased payee where the right to the proceeds of such Disbursement 
Postal Money Orders terminated upon the death of the payee, or to 
contain any other material defect or alteration which was not discovered 
upon first examination. If refund is not made, the Postal Service shall 
take such action against the proper parties as may be necessary to 
protect its interests.



Sec. 762.26  Postal facilities not to cash disbursement postal money 
orders.

    Post offices and other postal facilities shall not be expected to 
cash Disbursement Postal Money Orders or to return cash for endorsed 
Disbursement Postal Money Orders offered in payment for postal service 
in amounts less than the value of a Disbursement Postal Money Order. 
However, properly endorsed Disbursement Postal Money Orders may be 
accepted as total or partial payment for postal services.



Sec. 762.27  Processing of disbursement postal money orders by Federal
Reserve Banks.

    In accordance with an agreement between the Postal Service and the 
Federal Reserve Banks as depositaries and fiscal agents of the United 
States, Federal Reserve Banks will handle Disbursement Postal Money 
Orders as follows:
    (a) Federal Reserve Banks shall not be expected to cash Disbursement 
Postal Money Orders presented directly to them for payment; and
    (b) Each Federal Reserve Bank shall:
    (1) Receive Disbursement Postal Money Orders from its member banks, 
and its other depositors which guarantee all prior endorsements thereon;
    (2) Give immediate credit therefor in accordance with its current 
Time Schedules and charge the amount thereof to the general account of 
the U.S. Treasury, subject to examination and payment by the Postal 
Service; and
    (3) Forward the Disbursement Postal Money Orders to the Postal 
Service.



Sec. 762.28  Release of original disbursement postal money orders.

    An original Disbursement Postal Money Order may be released to a 
responsible endorser only upon receipt of a properly authorized request 
showing the reason it is required.



Sec. 762.29  Endorsement of disbursement postal money orders by payees.

    (a) General requirements. Disbursement Postal Money Orders shall be 
endorsed by the payee or the payees named, or by another on behalf of 
such payee or payees as set forth in this subpart B. The forms of 
endorsement shall conform to those recognized by general principles of 
law and commercial usage for the negotiation, transfer, or collection of 
negotiable instruments.
    (b) Endorsement of disbursement postal money orders by a financial 
organization under the payee's authorization. When a Disbursement Postal 
Money Order is credited by a financial organization to the payee's 
account under his authorization, the financial organization may use an 
endorsement substantially as follows:

    Credit to the account of the within-named payee in accordance with 
payee's or payees' instructions. Absence of endorsement guaranteed.


A financial organization using this form of endorsement shall be deemed 
to guarantee to all subsequent endorsers and to the Postal Service that 
it is

[[Page 213]]

acting as an attorney in fact for the payee or payees, under his or 
their authorization.
    (c) Endorsement of disbursement postal money orders drawn in favor 
of financial organizations. All Disbursement Postal Money Orders drawn 
in favor of financial organizations, for credit to the accounts of 
persons designating payment so to be made, shall be endorsed in the name 
of the financial organization as payee in the usual manner.



Sec. 762.30  Disbursement postal money orders issued to incompetent 
payees.

    (a) If the Disbursement Postal Money Order is endorsed by a legal 
guardian or other fiduciary and presented for payment by a bank it will 
be paid by the Postal Service without submission to the Postal Service 
of documentary proof of authority of the guardian or other fiduciary.
    (b) If a guardian has not been or will not be appointed, the 
Disbursement Postal Money Order shall be forwarded to the Money Order 
Division, Postal Data Center, P.O. Box 14963, St. Louis, MO 63182, with 
a full explanation of the circumstances.



Sec. 762.31  Disbursement postal money orders issued to deceased payees.

    (a) If the Disbursement Postal Money Order is endorsed by an 
Executor or Administrator and presented for payment by a bank it will be 
paid by the Postal Service without submission to the Postal Service of 
documentary proof of the authority of the Executor or Administrator.
    (b) If an Executor or Administrator has not been appointed or if 
there is doubt as to whether the proceeds of the Disbursement Postal 
Money Order pass to the estate of the deceased payee, the instrument 
should be returned to the Money Order Division, Postal Data Center, P.O. 
Box 14963, St. Louis, MO 63182, for determination whether, under 
applicable laws, payment is due, and for reissuance to the appropriate 
payee.



 Subpart C_Issuance of Substitutes for Lost, Destroyed, Mutilated, and 
                Defaced Disbursement Postal Money Orders



Sec. 762.41  Advice of non-receipt or loss, destruction, or mutilation.

    (a) In the event of the non-receipt, loss, or destruction of a 
Disbursement Postal Money Order, or the mutilation or defacement of a 
Disbursement Postal Money Order to an extent which renders it non-
negotiable, the owner should immediately contact the Money Order 
Division, Postal Data Center, P.O. Box 14963, St. Louis, MO 63182, 
describing the Disbursement Postal Money Order, stating the purpose for 
which it was issued, giving, if possible, its date, number, and amount, 
and requesting that payment be stopped. In cases involving mutilated or 
defaced Disbursement Postal Money Orders the owner should enclose the 
mutilated or defaced item with his communication.
    (b) If the Disbursement Postal Money Order, which is the basis of 
the owner's claim, is determined to be outstanding, the Money Order 
Division shall furnish the claimant an appropriate application form for 
obtaining a substitute Disbursement Postal Money Order. However, the 
execution of an application shall not be required in the event the 
original written statement submitted by the claimant substantially meets 
the requirements of the prescribed application form.



Sec. 762.42  Request for substitute disbursement postal money orders; 
requirements for undertaking of indemnity.

    In the case of a request for a substitute Disbursement Postal Money 
Order:
    (a) An undertaking of indemnity in penal sum equal to the amount of 
the Disbursement Postal Money Order shall, unless otherwise provided in 
this section, be executed by the claimant, as may be required by the 
Postal Service, and submitted to the Money Order Division.
    (b) Unless the Postal Service determines that an undertaking of 
indemnity is essential in the public interest, no undertaking of 
indemnity shall be

[[Page 214]]

required in the following classes of cases:
    (1) If the Postal Service is satisfied that the loss, theft, 
destruction, mutilation or defacement occurred without fault of the 
owner or holder, and while the Disbursement Postal Money Order was in 
the custody or control of the Postal Service;
    (2) If substantially the entire Disbursement Postal Money Order is 
presented and surrendered by the owner or holder and the Postal Service 
is satisfied as to the identity of the Disbursement Postal Money Order 
presented and that any missing portions are not sufficient to form the 
basis of a valid claim against the Postal Service;
    (3) If the Postal Service is satisfied that the original 
Disbursement Postal Money Order is not negotiable and cannot be made the 
basis of a valid claim against the Postal Service; or
    (4) If the amount of the Disbursement Postal Money Order is not more 
than $200.



Sec. 762.43  Issuance of substitute disbursement postal money order.

    Upon approval of the undertaking of indemnity, application, or 
statement of claim, the Money Order Division shall issue to the claimant 
a substitute Disbursement Postal Money Order showing such information as 
may be necessary to identify the original instrument.



Sec. 762.44  Receipt or recovery of original disbursement postal money
order.

    (a) If the original Disbursement Postal Money Order is received or 
recovered by the owner after he has requested the Postal Service to stop 
payment on the original but before a substitute has been received, he 
should immediately advise the Money Order Division and hold such 
original Disbursement Postal Money Order until receipt of instructions 
with respect to its negotiability.
    (b) If the original Disbursement Postal Money Order is received by 
the owner after a substitute has been received by him, the original 
shall not be cashed, but shall be immediately forwarded to the Money 
Order Division. Under no circumstances shall both the original and 
substitute be cashed.



Sec. 762.45  Removal of stoppage of payment.

    Requests for removal of stoppage of payment shall be addressed to 
the Money Order Division. No request for removal of stoppage of payment 
shall be accepted after issuance of a substitute Disbursement Postal 
Money Order has been approved.

[[Page 215]]



                 SUBCHAPTER K_ENVIRONMENTAL REGULATIONS





PART 775_NATIONAL ENVIRONMENTAL POLICY ACT PROCEDURES--Table of Contents



Sec.
775.1 Purpose.
775.2 Policy.
775.3 Responsibilities.
775.4 Definitions.
775.5 Classes of actions.
775.6 Categorical exclusions.
775.7 Planning and early coordination.
775.8 Environmental evaluation guidelines.
775.9 Environmental evaluation process.
775.10 Environmental assessments.
775.11 Environmental impact statements.
775.12 Time frames for environmental impact statement actions.
775.13 Public notice and information.
775.14 Hearings.

    Authority: 39 U.S.C. 401; 42 U.S.C.4321 et seq.; 40 CFR 1500.4.

    Source: 44 FR 63525, Nov. 5, 1979, unless otherwise noted.



Sec. 775.1  Purpose.

    These procedures implement the National Environmental Policy Act 
(NEPA) regulations (40 CFR part 1500) issued by the Council on 
Environmental Quality (CEQ).

[63 FR 45719, Aug. 27, 1998]



Sec. 775.2  Policy.

    It is the policy of the Postal Service to:
    (a) Interpret and administer applicable policies, regulations, and 
public laws of the United States in accordance with the policies set 
forth in the National Environmental Policy Act, as amended, and the NEPA 
Regulations.
    (b) Make the NEPA process useful to Postal Service decision makers 
and the public.
    (c) Emphasize environmental issues and alternatives in the 
consideration of proposed actions.
    (d) Encourage and facilitate public involvement in decisions which 
affect the quality of the human environment.
    (e) Use the NEPA process to identify and assess reasonable 
alternatives to proposed actions in order to avoid or minimize adverse 
effects on the environment.
    (f) Use all practicable means to protect, restore, and enhance the 
quality of the human environment.
    (g) Reduce paperwork.
    (h) Reduce delay.



Sec. 775.3  Responsibilities.

    (a) The Chief Environmental Officer is responsible for overall 
development of policy regarding NEPA and other environmental policies. 
The officer in charge of the facilities or real estate organization is 
responsible for the development of NEPA policy as it affects real estate 
or acquisition, construction and disposal of postal facilities 
consistent with overall NEPA policy. Each officer with responsibility 
over the proposed program, project, action, or facility is responsible 
for compliance with NEPA as the responsible official.
    (b) Postal managers will designate environmental coordinators to 
assist with compliance with NEPA procedures.

[63 FR 45719, Aug. 27, 1998]



Sec. 775.4  Definitions.

    (a) The definitions set forth in 40 CFR part 1508 apply to this part 
775.
    (b) In addition to the terms defined in 40 CFR part 1508, the 
following definitions apply to this part:
    Approving official means the person or group of persons, who 
authorizes funding as established through the delegations of approval 
authority issued by the finance organization. That person or group of 
persons may not have proposed the action for which financial approval is 
sought.
    Environmental checklist means a Postal Service form that identifies 
potential environmental impacts for proposed actions initiated by postal 
managers.
    Mitigated FONSI means a FONSI which requires the implementation of 
specified mitigation measures in order to ensure that there are no 
significant impacts to the environment.
    Record of environmental consideration means the Postal Service form 
that identifies the Postal Service's review of proposed activities under 
NEPA.

[[Page 216]]

    Responsible official means the person, or designated representative, 
who proposes an action and is responsible for compliance with NEPA. For 
larger projects, that person may not have the financial authority to 
approve such action. The responsible official signs the NEPA documents 
(FONSI, ROD) and the REC.

[63 FR 45719, Aug. 27, 1998]



Sec. 775.5  Classes of actions.

    (a) Actions which normally require an environment impact statement. 
None, however the Postal Service will prepare an EIS when necessary 
based on the factors identified in 40 CFR 1508.27.
    (b) Actions requiring an environmental assessment. Classes of 
actions that will require an environmental assessment unless 
categorically excluded include:
    (1) Any project that includes the conversion, purchase, or any other 
alteration of the fuel source for 25 percent or more of USPS vehicles 
operating with fuel other than diesel or gasoline in any carbon monoxide 
or ozone non-attainment area;
    (2) Any action that would adversely affect a federally listed 
threatened or endangered species or its habitat;
    (3) Any action that would directly affect public health;
    (4) Any action that would require development within park lands, or 
be located in close proximity to a wild or scenic river or other 
ecologically critical area;
    (5) Any action affecting the quality of the physical environment 
that would be scientifically highly controversial;
    (6) Any action that may have highly uncertain or unknown risks on 
the human environment;
    (7) Any action that threatens a violation of applicable federal, 
state, or local law or requirements imposed for the protection of the 
environment;
    (8) New construction of a facility with vehicle maintenance or fuel 
dispensing capabilities, whether owned or leased;
    (9) Acquisition or lease of an existing building involving new uses 
or a change in use to a greater environmental intensity;
    (10) Real property disposal involving a known change in use to a 
greater environmental intensity;
    (11) Postal facility function changes involving new uses of greater 
environmental intensity;
    (12) Reduction in force involving more than 1000 positions;
    (13) Relocation of 300 or more employees more than 50 miles;
    (14) Initiation of legislation.

[63 FR 45719, Aug. 27, 1998]



Sec. 775.6  Categorical exclusions.

    (a) The classes of actions in this section are those that the Postal 
Service has determined do not individually or cumulatively have a 
significant impact on the human environment. To be categorically 
excluded, it must be determined that a proposed action fits within a 
class listed and there are no extraordinary circumstances that may 
affect the significance of the proposal. The action must not be 
connected to other actions with potentially significant impacts or is 
not related to other proposed actions with potentially significant 
impacts. Extraordinary circumstances are those unique situations 
presented by specific proposals, such as scientific controversy about 
the environmental impacts of the proposal, uncertain effects or effects 
involving unique or unknown risks.
    (b) Categorical exclusions relating to general agency actions:
    (1) Policy development, planning and implementation that relate to 
routine activities such as personnel, organizational changes or similar 
administrative functions.
    (2) Routine actions, including the management of programs or 
activities necessary to support the normal conduct of agency business, 
such as administrative, financial, operational and personnel action that 
involve no commitment of resources other than manpower and funding 
allocations.
    (3) Award of contracts for technical support services, management 
and operation of a government owned facility, and personal services.
    (4) Research activities and studies and routine data collection when 
such actions are clearly limited in context and intensity.
    (5) Educational and informational programs and activities.

[[Page 217]]

    (6) Reduction in force resulting from workload adjustments, reduced 
personnel or funding levels, skill imbalances or other similar causes 
that do not affect more than 1,000 positions.
    (7) Postal rate or mail classification actions, address information 
system changes, post office name and zip code changes.
    (8) Property protection, law enforcement and other legal activities 
undertaken by the Postal Inspection Service, the Law Department, the 
Judicial Officer, and the Inspector General.
    (9) Activities related to trade representation and market 
development activities abroad.
    (10) Emergency preparedness planning activities, including 
designation of on-site evacuation routes.
    (11) Minor reassignment of motor vehicles and purchase or deployment 
of motor vehicles to new locations that do not adversely impact traffic 
safety, congestion or air quality.
    (12) Procurement or disposal of mail handling or transport 
equipment.
    (13) Acquisition, installation, operation, removal or disposal of 
communication systems, computers and data processing equipment.
    (14) Postal facility function changes not involving construction, 
where there are no substantial relocation of employees, or no 
substantial increase in the number of motor vehicles at a facility.
    (15) Closure or consolidation of post offices under 39 U.S.C. 
404(d).
    (16) Minor operational changes at an existing facility to minimize 
waste generation and for reuse of materials. These changes include but 
are not limited to, adding filtration and recycling systems to allow 
reuse of vehicle or machine oil, setting up sorting areas to improve 
process efficiency, and segregating waste streams previously mingled and 
assigning new identification codes to the two resulting streams.
    (17) Actions which have an insignificant effect upon the environment 
as established in a previously written Environmental Assessment (EA) and 
Finding of No Significant Impact (FONSI) or Environmental Impact 
Statement (EIS). Such repetitive actions shall be considered ``reference 
actions'' and a record of all decisions concerning these ``reference 
actions'' shall be maintained by the Chief Environmental Officer or 
designee. The proposed action must be essentially the same in context 
and the same or less in intensity or create fewer impacts than the 
``reference action'' previously studied under an EA or EIS in order to 
qualify for this exclusion.
    (18) Rulemakings that are strictly procedural, and interpretations 
and rulings with existing regulations, or modifications or rescissions 
of such interpretations and rulings.
    (c) Categorical exclusions relating to emergency or restoration 
actions:
    (1) Any cleanup, remediation or removal action conducted under the 
provisions of the Comprehensive Environmental Response Compensation and 
Liability Act (CERCLA) or the Resource Conservation and Recovery Act 
(RCRA), any asbestos abatement actions regulated under the provisions of 
the Occupational Safety and Health Act (OSHA), or the Clean Air Act or 
any PCB transformer replacement or any lead based paint abatement 
actions regulated under the provisions of the Toxic Substances Control 
Act (TSCA), OSHA or RCRA.
    (2) Testing associated with environmental cleanups or site 
investigations.
    (d) Categorical exclusions relating to maintenance or repair actions 
at existing facilities:
    (1) Siting, construction or operation of temporary support buildings 
or support structures.
    (2) Routine maintenance and minor activities, such as fencing, that 
occur in floodplains or state and local wetlands or pursuant to the 
nationwide, regional or general permitting process of the US Army Corps 
of Engineers.
    (3) Routine actions normally conducted to protect and maintain 
properties and which do not alter the configuration of the building.
    (4) Changes in configuration of buildings required to promote 
handicapped accessibility pursuant to the Architectural Barriers Act.
    (5) Repair to, or replacement in kind or equivalent of building 
equipment or components (e.g., electrical distribution, HVAC systems, 
doors, windows, roofs, etc.).

[[Page 218]]

    (6) Internal modifications or improvements to structure, or 
buildings to accommodate mail processing, computer, communication or 
other similar types of equipment or other actions which do not involve 
modification to the external walls of the facility.
    (7) Joint development and/or joint use projects that only involve 
internal modifications to an existing facility.
    (8) Noise abatement measures, such as construction of noise barriers 
and installation of noise control materials.
    (9) Actions which require concurrence or approval of another federal 
agency where the action is a categorical exclusion under the NEPA 
regulations of that federal agency.
    (e) Categorical exclusions relating to real estate actions.
    (1) Obtaining, granting, disposing, or changing of easements, 
licenses and permits, rights-of-way and similar interests.
    (2) Extension, renewal, renegotiation, or termination of existing 
lease agreements.
    (3) Purchase of Postal Service occupied leased property where the 
planned postal uses do not differ significantly from the past uses of 
the site.
    (4) Acquisition or disposal of existing facilities and real property 
where the planned uses do not differ significantly from past uses of the 
site.
    (5) Acquisition of real property not connected to specific facility 
plans or when necessary to protect the interests of the Postal Service 
in advance of final project approval. This categorical exclusion only 
applies to the acquisition. Any subsequent use of the site for a 
facility project must be considered under this part.
    (6) Disposal through sale or outlease of unimproved real property.
    (7) Disposal through sale, outlease, transfer or exchange of real 
property to other federal or state agencies.
    (8) Acquisition and disposal through sale, lease, transfer or 
exchange of real property that does not involve an increase in volumes, 
concentrations, or discharge rates of wastes, air emissions, or water 
effluents, and that under reasonably foreseeable uses, have generally 
similar environmental impacts as compared to those before the 
acquisition or disposal. A determination that the proposed action is 
categorically excluded can be based upon previous ``reference actions'' 
documented under Sec. 775.6(b)(17).
    (9) Acquisition and disposal through sale, lease, transfer, 
reservation or exchange of real property for nature and habitat 
preservation, conservation, a park or wildlife management.
    (10) New construction, Postal Service owned or leased, or joint 
development and joint use projects, of any facility unless the proposed 
action is listed as requiring an EA in Sec. 775.5.
    (11) Expansion or improvement of an existing facility where the 
expansion is within the boundaries of the site or occurs in a previously 
developed area unless the proposed action is listed as requiring an EA 
in Sec. 775.5.
    (12) Construction and disturbance pursuant to a nationwide, regional 
or general permit issued by the US Army Corps of Engineers.
    (13) Any activity in floodplains being regulated pursuant to Sec. 
775.6 and is not listed as requiring an EA in Sec. 775.5.

[63 FR 45720, Aug. 27, 1998, as amended at 76 FR 53057, Aug. 25, 2011]



Sec. 775.7  Planning and early coordination.

    Early planning and coordination among postal functional groups is 
required to properly consider environmental issues that may be 
attributable to the proposed action. Operational and facility personnel 
must cooperate in the early concept stages of a program or project. If 
it is determined that more than one postal organization will be involved 
in any action, a lead organization will be selected to complete the NEPA 
process before any NEPA documents are prepared. If it is determined that 
a project has both real estate and non-real estate actions, the 
facilities functional organization will take the lead.

[63 FR 45721, Aug. 27, 1998]



Sec. 775.8  Environmental evaluation guidelines.

    (a) Approach. When dealing with proposals which may have an impact 
on the human environment, environmental coordinators, planners, decision

[[Page 219]]

makers, and other officials responsible for actions, will, as 
appropriate:
    (1) Use a systematic approach that integrates natural and social 
sciences and environmental design in planning and making decisions.
    (2) Identify environmental effects and values in detail, and 
appraise them in conjunction with economic and technical analyses.
    (3) Consider environmental documents at all decision points at which 
other planning documents are considered. (Plans and decisions are to 
reflect environmental values. Proposed actions should be assessed as 
soon as their effects can be meaningfully evaluated, to provide the 
bases for early decision on whether detailed environmental impact 
statements must be prepared.)
    (4) Study, develop, describe, and evaluate at all decision points, 
reasonable alternatives to recommended actions which may have a 
significant effect on the environment.
    (b) Proposal requirements. When an environmental impact statement 
has been prepared, it must accompany the proposal through and be used in 
the decision-making process. Any other proposal must refer to applicable 
environmental documents (e.g., determination of categorical exclusion; 
finding of no significant impact; notice of intent to prepare an impact 
statement), and relevant comments and responses.
    (c) Lead agency arrangements. If the Postal Service and another 
Federal agency become involved in a lead agency arrangement for the 
preparation of an environmental impact statement, the Service will 
cooperate fully.

[44 FR 63525, Nov. 5, 1979. Redesignated at 63 FR 45719, Aug. 27, 1998]



Sec. 775.9  Environmental evaluation process.

    (a) All actions--(1) Assessment of actions. An environmental 
checklist may be used to support a record of environmental consideration 
as the determination that the proposed action does not require an 
environmental assessment. An environmental assessment must be prepared 
for each proposed action except that an assessment need not be made if a 
determination is made that:
    (i) The action is one of a class listed in Sec. 775.6, Categorical 
Exclusions, and
    (ii) The action is not affected by extraordinary circumstances which 
may cause it to have a significant environmental effect, or
    (iii) The action is a type that is not a major federal action with a 
significant impact upon the environment.
    (2) Findings of no significant impact. If an environmental 
assessment indicates that there is no significant impact of a proposed 
action on the environment, an environmental impact statement is not 
required. A ``finding of no significant impact'' (FONSI) is prepared and 
published in accordance with Sec. 775.13. When the proposed action is 
approved, it may be accomplished without further environmental 
consideration. A FONSI document briefly presents the reasons why an 
action will not have a significant effect on the human environment and 
states that an environmental impact statement will not be prepared. It 
must refer to the environmental assessment and any other environmentally 
pertinent documents related to it. The assessment may be included in the 
finding if it is short, in which case the discussion in the assessment 
need not be repeated in the finding. The FONSI may be a mitigated FONSI 
in which case the required mitigation factors should be listed in the 
FONSI. The use of a mitigated FONSI is conditioned upon the 
implementation of the identified mitigation measures in the EA that 
support the FONSI. Unless the mitigation measures are implemented by the 
responsible official, the use of an EA in lieu of an EIS is not 
acceptable.
    (3) Impact statement preparation decision and notices. If an 
environmental assessment indicates that a proposed major action would 
have a significant impact on the environment, a notice of intent to 
prepare an impact statement is published (see Sec. 775.13) and an 
environmental impact statement is prepared.
    (4) Role of impact statement in decision making. An environmental 
impact statement is used, with other analyses and materials, to decide 
which alternative should be pursued, or whether a proposed action should 
be abandoned or other courses of action pursued. See

[[Page 220]]

Sec. 775.12 for restrictions on the timing of this decision.
    (5) Record of decision. For actions requiring environmental impact 
statements, a concise public record of decision is prepared when a 
decision, or a proposal for legislation, is made. The record, which may 
be integrated into any other record, or notice, including that required 
by Postal Service regulations and procedures governing intergovernmental 
review of Postal Service facility project actions, must:
    (i) State what the decision was.
    (ii) Identify all alternatives considered in reaching a decision, 
specifying alternatives considered to be environmentally preferable; 
identify and discuss all significant factors, including any essential 
considerations of national policy, which were weighed in making the 
decision and state how those considerations entered into the decision.
    (iii) State whether all practicable means to avoid or minimize 
environmental harm from the alternative selected have been or will be 
adopted, and if not, why not.
    (6) Actions prohibited prior to issuance of record of decision. 
Until a record of decision is issued, no action may be taken on a 
proposal on which an environmental impact statement is made if the 
action would:
    (i) Have an adverse environmental impact, or
    (ii) Limit the choice of reasonable alternatives.
    (7) Mitigation measures. Practicable mitigation measures identified 
in an environmental assessment must be implemented. Mitigation measures 
described in an environmental impact statement and accepted in a 
decision must be implemented. Upon request, the Postal Service informs 
federal, state, and local agencies and the public of the progress in 
carrying out adopted mitigation measures.
    (b) Additional requirements for facility actions. (1) The 
environmental assessment of any action which involves the construction 
or acquisition of a new mail processing facility must include reasonable 
alternatives to the proposed action and not just consideration of 
contending sites for a facility. This process must be started early in 
the planning of the action. An environmental assessment report, however, 
is not required until the contending project sites have been determined. 
The information contained in the environmental assessment report must be 
used, together with other site planning information, in the selection of 
the final site.
    (2) When an environmental assessment indicates that an environmental 
impact statement may be needed for a proposed facility action, the 
responsible officer will make the decision whether to prepare an 
environmental impact statement for presentation to the Capital 
Investment Committee, and to the Board of Governors if the Board 
considers the proposal.
    (3) If an environmental impact statement is presented to the 
Committee or the Board, and an analysis indicates that it would be more 
cost-effective to proceed immediately with continued control of sites, 
(including advance acquisition, if necessary, and where authorized by 
postal procedures), environmental impact statement preparation, and 
project designs, a budgetary request will include authorization of funds 
to permit:
    (i) The preparation of an impact statement encompassing all 
reasonable alternatives and site alternatives,
    (ii) The continued control of specified competing sites (including 
advance acquisition, if necessary, and where authorized by postal 
procedures), chosen to preserve environmental or other options, and
    (iii) The development of limited designs of facilities for each 
competing site.
    (4) A completed environmental impact statement will be presented to 
the Capital Investment Committee, and to the Board of Governors if the 
Board considers the proposal, for use in deciding whether a proposed 
project should proceed, be restudied, or be abandoned. If the decision 
is to proceed with a proposed project, the Committee, or the Board if it 
considers the proposal, decides which alternative site is to be

[[Page 221]]

used for project development, and authorizes the project.

[44 FR 63525, Nov. 5, 1979, as amended at 48 FR 29378, June 24, 1983; 50 
FR 32411, Aug. 12, 1985; 50 FR 33036, Aug. 16, 1985; 55 FR 10454, Mar. 
21, 1990. Redesignated and amended at 63 FR 45719, 45721, Aug. 27, 1998; 
65 FR 41012, July 3, 2000]



Sec. 775.10  Environmental assessments.

    (a) An environmental assessment must contain:
    (1) A summary of major considerations and conclusions,
    (2) A description of the proposed action,
    (3) For each reasonable alternative, a description of the affected 
environment, the environmental consequences, the mitigation measures, if 
any, and a comparison to all alternatives considered.
    (4) A list of applicable environmental permits necessary to complete 
the proposed action.
    (b) Those preparing an environmental assessment must solicit 
information and views from Federal, State, and local agencies and, where 
there is a substantial likelihood of significant effects on the 
environment, the public. All responsible views and information must be 
considered.

[44 FR 63525, Nov. 5, 1979. Redesignated and amended at 63 FR 45719, 
45722, Aug. 27, 1998]



Sec. 775.11  Environmental impact statements.

    (a) Determining scope. Before an environmental impact statement is 
prepared, the following procedures must be followed to determine what 
issues are to be addressed and in what depth:
    (1) Affected Federal, State, and local agencies and other interested 
persons are invited to participate by furnishing written views and 
information, or at a hearing if appropriate. Notice is given in 
accordance with Sec. 775.13.
    (2) The significance of issues to be analyzed in depth in the 
environmental impact statement is determined through consideration of:
    (i) Actions which are closely related, or similar, or have 
cumulative significant impacts.
    (ii) Alternatives, which must include the ``no action'' alternative, 
other reasonable courses of action, and mitigation measures.
    (iii) Impacts, which may be direct, indirect, or cumulative.
    (3) Issues which are not significant are identified and eliminated.
    (4) The determinations made must be revised if substantial changes 
are made later in the proposed action, or if significant new 
circumstances or information arise which bear on the proposal or its 
impacts.
    (b) Preparation. (1) Except for proposals for legislation, 
environmental impact statements are prepared in two stages:
    (i) Draft environmental impact statement, prepared in accordance 
with the scope decided upon under paragraph (a) of this section.
    (ii) Final environmental impact statement, responding to comments on 
the draft statement and discussing and responding to any responsible 
opposing view which was not adequately discussed in the draft statement.
    (2) Environmental impact statements must:
    (i) Be analytic rather than encyclopedic.
    (ii) Contain discussions of impacts in proportion to their 
significance. Insignificant impacts eliminated during the process under 
Sec. 775.11(a) to determine the scope of issues must be discussed only 
to the extent necessary to state why they will not be significant.
    (iii) Be concise, and not longer than is necessary to comply with 
NEPA. They must not contain repeated statements of the same basic 
points.
    (iv) Contain discussions of alternatives considered and of how 
alternatives chosen will meet the requirements of NEPA and other 
environmental laws and policies.
    (v) Encompass the range of alternatives to be considered by the 
decision makers.
    (vi) Serve to assess the environmental impact of proposed actions, 
rather than to justify decisions already made.
    (3) The text of final environmental impact statements normally 
should be less than 150 pages. Statements on proposals of unusual scope 
or complexity normally should be less than 300 pages.

[[Page 222]]

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

[[Page 223]]

should be discussed, including connected and similar actions. A clear 
discussion of the action will assist in consideration of the 
alternatives.
    (5) Alternatives and mitigation. This portion of the environmental 
impact statement is vitally important. Based on the analysis in the 
Affected Environment and Environmental Consequences section (see Sec. 
775.11(c)(6)), the environmental impacts and the alternatives are 
presented in comparative form, thus sharply defining the issues and 
providing a clear basis for choosing alternatives. Those preparing the 
statement must:
    (i) Explore and evaluate all reasonable alternatives, including the 
``no action'' alternative, and briefly discuss the reasons for 
eliminating any alternatives.
    (ii) Devote substantial treatment to each alternative considered in 
detail, including the proposed action, so that reviewers may evaluate 
their comparative merits.
    (iii) Identify the preferred alternative or alternatives in the 
draft and final statements.
    (iv) Describe appropriate mitigation measures not considered to be 
an integral part of the proposed action or alternatives. See Sec. 
775.9(a)(7).
    (6) Affected Environment and Environmental Consequences. For each 
reasonable alternative, each affected element of the environment must be 
described, followed immediately by an analysis of the impacts 
(environmental consequences). The analysis must include, among others, 
the following:
    (i) Any adverse environmental effects which cannot be avoided should 
the action be implemented.
    (ii) The relationship between short-term uses of the environment and 
the maintenance and enhancement of long-term productivity,
    (iii) Any irreversible or irretrievable commitments of resources 
should the action be implemented, and
    (iv) Energy requirements and conservation; and natural, or 
depletable, resource requirements and conservation.
    (7) List of Mitigation Measures.
    (8) List of Preparers. List the names, together with the 
qualifications (expertise, professional disciplines), of persons who 
were primarily responsible for preparing the environmental impact 
statement or significant background papers.
    (9) List of Agencies, Organizations and Persons to Whom Copies of 
the Statement Are Sent.
    (10) Index.
    (11) Appendices. Include comments on draft statement in final 
statement.
    (d) Distribution. (1) Any completed draft environmental impact 
statement which is made the subject of a public hearing, must be made 
available to the public as provided in Sec. 775.12, of this chapter at 
least 15 days in advance of the hearing.
    (2) Draft and final environmental impact statements must be filed 
with the Environmental Protection Agency. Five copies are filed with 
EPA's headquarters addressed to the Office of Federal Activities (A-
104), Environmental Protection Agency, 401 M Street SW., Washington, DC 
20460; five copies are also filed with the responsible EPA region. 
Statements may not be filed with the EPA earlier than they are 
transmitted to commenting agencies and made available to the public.
    (3) Copies of draft and final environmental impact statements must 
be furnished to:
    (i) Any Federal agency which has jurisdiction by law or special 
expertise with respect to any environmental impact involved.
    (ii) Any appropriate Federal, state, or local agency authorized to 
develop and enforce environmental standards.
    (iii) The appropriate review officials identified in the Postal 
Service regulations and procedures governing intergovernmental review of 
Postal Service facility project actions, the State Historic Preservation 
Officer, and, when National Register or eligible properties may be 
affected, the Advisory Council on Historic Preservation.
    (iv) Any person, organization or agency requesting them.
    (4) Copies of final environmental impact statements must be 
furnished to any person who, or organization or agency which, submitted 
substantive comments on the draft.
    (e) Responses to comments. (1) A final statement responds to 
comments on a

[[Page 224]]

draft statement in one or more of the following ways:
    (i) Modification of alternatives, including the proposed action.
    (ii) Development and evaluation of alternatives not previously given 
serious consideration.
    (iii) Supplementation, improvement, or modification of analyses.
    (iv) Correction of facts.
    (v) Explanation of why a comment does not warrant a direct response, 
citing supporting sources, authorities, or reasons. Relevant 
circumstances which may trigger reappraisal or further response must be 
indicated.
    (2) Substantive comments received on a draft statement must be 
attached to the final statement.
    (3) If all of the changes are minor and are confined to responses 
described in paragraphs (e)(1) (iv) and (v) of this section, errata 
sheets may be written, and only the comments and errata sheets need be 
recirculated. In such a case, the draft statement with the comments, 
errata sheets, and a new cover, must be filed as the final statement.
    (f) Supplements. (1) A supplement to a draft or final environmental 
impact statement must be issued if:
    (i) Substantial changes are made in the proposed action that are 
relevant to environmental concerns; or
    (ii) Significant new circumstances or information bearing on 
environmental impacts of the proposed action arise or are discovered.
    (2) The decision on a proposed action involving an environmental 
impact statement, must be delayed until any necessary supplement has 
been circulated and has gone through the commenting period. A supplement 
is prepared, circulated, and filed in the same manner (except for 
determining scope) as draft and final statements, unless alternative 
procedures are approved by CEQ.
    (g) Contracting. A contractor employed to prepare an environmental 
impact statement must certify that it has no financial or other interest 
in the outcome of the project.
    (h) Proposals for Legislation. Legislative environmental impact 
statements must be prepared and transmitted as follows:
    (1) A legislative environmental impact statement is considered part 
of the formal transmittal of a legislative proposal to the Congress. It 
may be transmitted to the Congress up to 30 days after the proposal. The 
statement must be available in time for Congressional hearings and 
deliberations.
    (2) Preparation and processing of a legislative statement must 
conform to the requirements for impact statements, except as follows:
    (i) It is not necessary to determine the scope of issues.
    (ii) A draft is considered to be a final statement. Both draft and 
final statements are needed only when:
    (A) A Congressional committee with jurisdiction over the proposal 
has a rule requiring both.
    (B) Both are specifically required by statute for proposals of the 
type being submitted.
    (3) Comments received on a legislative statement, and the Postal 
Service's responses, must be forwarded to the Congress.

[44 FR 63525, Nov. 5, 1979, as amended at 48 FR 29378, June 24, 1983; 55 
FR 10455; Mar. 21, 1990. Redesignated and amended at 63 FR 45719, 45722, 
Aug. 27, 1998]



Sec. 775.12  Time frames for environmental impact statement actions.

    (a) Each week the EPA publishes in the Federal Register a notice of 
the draft and final environmental impact statements received in that 
office during the preceding week. The minimum time periods for decision 
on an action, specified in paragraphs (b) through (d) of this section, 
are calculated from the date of publication of an EPA notice of receipt 
of the relevant impact statement.
    (b) A decision on a proposed action may not be made or recorded 
until the later of the following dates: 90 days after publication of the 
notice described in paragraph (a) of this section for a draft statement 
or 30 days after publication of the notice for a final statement.
    (c) If a final statement is filed with the EPA within 90 days after 
a draft statement is filed, the 30 day period and the 90 day period may 
run concurrently.

[[Page 225]]

    (d) A minimum of 45 days must be allowed for comments on draft 
statements.

[44 FR 63525, Nov. 5, 1979. Redesignated at 63 FR 45719, Aug. 27, 1998]



Sec. 775.13  Public notice and information.

    (a) Public notice is given of NEPA-related hearings, intent to 
undertake environmental assessments and environmental impact statements, 
and the availability of environmental documents (that is, environmental 
assessments, findings of no significant impact, and environmental impact 
statements), as follows:
    (1) Notices must be mailed to those who have requested them.
    (2) Notices concerning a proposal of national concern must be mailed 
to national organizations reasonably expected to be interested. Any such 
notice must be published in the Federal Register. (See paragraph (a)(4) 
of this section.
    (3) Notices of any proposed action having effects primarily of local 
concern are given as follows:
    (i) Any such notice, including a copy of any pertinent environmental 
document, must be mailed to the appropriate review officials identified 
in the Postal Service regulations and procedures governing 
intergovernmental review of Postal Service facility project actions, to 
the State Historic Preservation Officer, and to local public officials.
    (ii) Any such notice must be published in one or more local 
newspapers.
    (iii) Any such notice must be posted on and near any proposed and 
alternate sites for an action.
    (iv) Any such notice may be mailed to potentially interested 
community organizations, including small business associations.
    (v) Any such notice may be mailed to owners and occupants of nearby 
or affected property.
    (4) A copy of every notice of intent to prepare an environmental 
impact statement must be furnished to the Chief Counsel, Legislative, 
Law Department, who will have it published in the Federal Register.
    (b) All notices must give the name, address, and telephone number of 
a postal official who may be contacted for information. Environmental 
documents are made available to the public on request. Inspection, 
copying, and the furnishing of copies will be in accordance with 39 CFR 
Part 265, ``Release of Information.''

[44 FR 63525, Nov. 5, 1979, as amended at 47 FR 19992, May 10, 1982; 48 
FR 29378, June 24, 1983. Redesignated and amended at 63 FR 45719, 45722, 
Aug. 27, 1998]



Sec. 775.14  Hearings.

    (a) Public hearings must be held whenever there is:
    (1) Substantial environmental controversy concerning a proposed 
action and a request for a hearing by any responsible individual or 
organization;
    (2) A request for a hearing by an agency with jurisdiction over or 
special expertise concerning the proposed action; or
    (3) A reasonable expectation that a hearing will produce significant 
information not likely to be obtained without a hearing.
    (b) The distribution and notice requirements of Sec. Sec. 
775.11(d)(1) and 775.13 must be complied with whenever a hearing is to 
be held.

[44 FR 63525, Nov. 5, 1979. Redesignated and amended at 63 FR 45719, 
45722, Aug. 27, 1998]



PART 776_FLOODPLAIN AND WETLAND PROCEDURES--Table of Contents



                      Subpart A_General Provisions

Sec.
776.1 Purpose and policy.
776.2 Responsibility.
776.3 Definitions.

                     Subpart B_Floodplain Management

776.4 Scope.
776.5 Review procedures.
776.6 Design requirements for construction.
776.7 Lease, easement, right-of-way, or disposal of property to non-
          federal parties.

                      Subpart C_Wetlands Protection

776.8 Scope.
776.9 Review procedures.
776.10 Lease, easement, right-of-way, or disposal of property to non-
          Federal parties.

    Authority: 39 U.S.C. 401.

    Source: 64 FR 56254, Oct. 19, 1999, unless otherwise noted.

[[Page 226]]



                      Subpart A_General Provisions



Sec. 776.1  Purpose and policy.

    (a) The regulations in this part implement the goals of Executive 
Orders 11990, Protection of Wetlands, and 11988, Floodplain Management, 
and are adopted pursuant to the Postal Reorganization Act, as the Postal 
Service does not meet the definition of the term ``agency'' used in the 
Executive Orders.
    (b) The Postal Service intends to exercise leadership in the 
acquisition and management of real property, construction of facilities, 
and disposal of real property, located in floodplains and wetlands. 
Consistent with the goals of the Executive Orders, the regulations in 
this part are not intended to prohibit floodplain and wetland 
development in all circumstances, but rather to create a consistent 
policy to minimize adverse impacts.



Sec. 776.2  Responsibility.

    The appropriate Manager, Facilities Service Office, or functional 
equivalent within the Postal Service's facilities organization, in 
conjunction with the appropriate Vice President, Area Operations, or 
functional equivalent within the Postal Service's operations 
organization, are responsible for overall compliance with the 
regulations in this part pertaining to facilities projects. The Vice 
President, Area Operations, is responsible for compliance with these 
regulations for those projects within the Vice President's delegated 
authority.



Sec. 776.3  Definitions.

    Construction means construction, alterations, renovations, and 
expansions of buildings, structures and improvements.
    Contending site means a site or existing building for a proposed 
postal facility action, which meets the requirements of the Postal 
Service as determined by the operations organization.
    Facility means any building, appurtenant structures, or associated 
infrastructure.
    Floodplain means the lowland and relatively flat areas adjoining 
inland and coastal waters including flood-prone areas of offshore 
islands, including, at a minimum, that area subject to a one percent or 
greater chance of flooding in any given year (also known as a 100-year 
floodplain).
    Practicable means capable of being accomplished within existing 
constraints. The test of what is practicable depends on the situation 
and includes consideration of many factors, such as environment, cost, 
technology, implementation time, and postal operational needs.
    Preferred area means the specific geographical area proposed for a 
new postal facility, as developed by the operations organization within 
the Postal Service. A preferred area's boundaries are unique for each 
proposed facility based on the operational and customer service needs of 
the Postal Service.
    Preferred site means the most advantageous site for a proposed 
facility, taking into consideration postal operational and customer 
service needs, cost, and availability, as determined by the operations 
organization within the Postal Service.
    Wetlands means those areas that are inundated or saturated by 
surface or groundwater at a frequency and duration sufficient to 
support, and that under normal circumstances do support, a prevalence of 
vegetation typically adapted for life in saturated soil conditions. 
Wetlands generally include swamps, marshes, bogs, and similar areas.



                     Subpart B_Floodplain Management



Sec. 776.4  Scope.

    (a) The regulations in this subpart are applicable to the following 
proposed postal facility actions located in a floodplain:
    (1) New construction, owned or leased; or
    (2) Construction projects at an existing facility that would 
increase the amount of impervious surface at the site.
    (b) These procedures are not applicable to the following postal 
facility actions:
    (1) Those actions identified in paragraphs (a)(1) and (a)(2) of this 
section, when the entire preferred area, or all

[[Page 227]]

contending sites, for such actions lies within a floodplain;
    (2) Incidental construction, such as construction of athletic 
fields, recreational facilities, sidewalks, and other minor alteration 
projects;
    (3) Construction at existing postal facilities pursuant to the 
Architectural Barriers Act or postal accessibility standards;
    (4) Any facility construction project deemed necessary to comply 
with federal, state, or local health, sanitary, or safety code standards 
to ensure safe working conditions;
    (5) Construction of facilities that are functionally dependent on 
water, such as piers, docks, or boat ramps;
    (6) Maintenance, repair, or renovation of existing facilities; or
    (7) Leasing or other use of space for not more than one year.



Sec. 776.5  Review procedures.

    Officials shall follow the decision-making process outlined in 
paragraphs (a) through (f) of this section, when a facility action may 
involve floodplain issues. Under certain circumstances, this process may 
be carried out with fewer steps if all objectives of the decision-making 
process can be achieved. A general principle underlying this process is 
that a postal facility action requiring construction in a floodplain may 
be considered only when there is no practicable alternative.
    (a) Analysis of alternatives. If a postal facility action would 
involve construction in a floodplain, alternative actions shall be 
considered.
    (b) Early public notice. If a facility action at the contending 
site(s) could require construction in a floodplain, public notice must 
be provided.
    (c) Floodplain location and information. (1) Personnel shall 
determine whether construction would occur within a floodplain. The 
determination shall be made by reference to appropriate Department of 
Housing and Urban Development (HUD) floodplain maps (sometimes referred 
to as Floodplain Insurance Rate Maps (FIRM)), or Federal Emergency 
Management Agency (FEMA) maps, or more detailed maps if available. If 
such maps are not available, floodplain location must be determined 
based on the best available information.
    (2) Once the preferred site has been identified, potential 
floodplain impacts must be determined. As part of this determination 
process, specific floodplain information should be developed, which is 
to consider:
    (i) Whether the proposed action will directly or indirectly support 
floodplain development;
    (ii) Flood hazard and risk to lives and property;
    (iii) Effects on natural and beneficial floodplain values, such as 
water quality maintenance, groundwater recharge, and agriculture; and
    (iv) Possible measures to minimize harm to, or impact on, the 
floodplain.
    (d) Reevaluation. After the above steps have been followed, if the 
determination is that there appears to be no practicable alternative to 
constructing in a floodplain, a further review of alternatives must be 
conducted by the facilities organization in conjunction with the 
operations organization requesting the construction of the facility. The 
further review of alternatives must be conducted by the operations 
organization for projects within the delegated authority of the Vice 
President, Area Operations.
    (e) Final public notice. As a result of the reevaluation, if it is 
determined that there is no practicable alternative to constructing in a 
floodplain, public notice shall be provided as soon as possible for the 
proposed action. The notice should be publicized and should include:
    (1) Identification of the project's location;
    (2) Provision for a 30-day public commenting period before 
irrevocable action is taken by the Postal Service; and
    (3) Name and complete address of a postal contact person responsible 
for providing further information on the decision to proceed with a 
facility action or construction project in a floodplain. Upon request, 
that person shall provide further information as follows:
    (i) A description of why the proposed action must be located in a 
floodplain;
    (ii) A listing of alternative actions considered in making the 
determination; and

[[Page 228]]

    (iii) A statement indicating whether the action conforms to 
applicable state and local floodplain protection standards.
    (f) Distribution. The above public notice will be sent to 
appropriate officials, local newspapers, and other parties who express 
interest in the project.
    (g) NEPA coordination. If either an Environmental Impact Statement 
or an Environmental Assessment is required under the Postal Service's 
National Environmental Policy Act (NEPA) regulations, the above review 
procedures must be incorporated into and evaluated in that document.



Sec. 776.6  Design requirements for construction.

    If structures impact, are located in, or support development in a 
floodplain, construction must conform, at a minimum, to the standards 
and criteria of the National Flood Insurance Program (NFIP), except 
where those standards are demonstrably inappropriate for postal 
purposes.



Sec. 776.7  Lease, easement, right-of-way, or disposal of property to
non-federal parties.

    When postal property in floodplains is proposed for lease, easement, 
right-of-way, or disposal to non-federal public or private parties, the 
Postal Service shall:
    (a) Reference in the conveyance document that the parcel is located 
in a floodplain and may be restricted in use pursuant to federal, state, 
or local floodplain regulations; or
    (b) Withhold the property from conveyance.



                      Subpart C_Wetlands Protection



Sec. 776.8  Scope.

    (a) The regulations in this subpart are applicable to the following 
proposed postal facility actions located in a wetland:
    (1) New construction, owned or leased; or
    (2) Construction projects at an existing facility that would alter 
the external configuration of the facility.
    (b) These procedures are not applicable to the following postal 
facility actions:
    (1) Construction of foot and bike trails, or boardwalks, including 
signs, the primary purposes of which are public education, 
interpretation, or enjoyment of wetland resources;
    (2) Construction at existing postal facilities pursuant to the 
Architectural Barriers Act or postal accessibility standards;
    (3) Any facility construction project deemed necessary to comply 
with federal, state, or local health, sanitary, or safety code standards 
to ensure safe working conditions;
    (4) Construction of facilities that are functionally dependent on 
water, such as piers, docks, or boat ramps; or
    (5) Maintenance, repair, or renovation of existing facilities.



Sec. 776.9  Review procedures.

    (a) Early public notice. If a facility action at the contending 
site(s) could require construction in a wetland, public notice must be 
provided.
    (b) Finding of no practicable alternative. The Postal Service shall 
avoid construction located in a wetland unless it issues a finding of no 
practicable alternative. The facilities organization, in conjunction 
with the operations organization, or, for projects within the delegated 
authority of the Vice President, Area Operations, the operations 
organization, shall make a written determination that:
    (1) There is no practicable alternative to such construction; and
    (2) The proposed action includes all practicable measures to 
minimize harm to wetlands.
    (c) NEPA coordination. If either an Environmental Impact Statement 
or an Environmental Assessment is required under the Postal Service's 
National Environmental Policy Act (NEPA) regulations, the above review 
procedures must be incorporated into and evaluated in that document.



Sec. 776.10  Lease, easement, right-of-way, or disposal of property to
non-federal parties.

    When postal-owned wetlands or portions of wetlands are proposed for 
lease, easement, right-of-way, or disposal to non-federal public or 
private parties, the Postal Service shall:

[[Page 229]]

    (a) Reference in the conveyance document that the parcel contains 
wetlands and may be restricted in use pursuant to federal, state, or 
local wetlands regulations; or
    (b) Withhold the property from conveyance.

[[Page 230]]



                    SUBCHAPTER L_SPECIAL REGULATIONS





PART 777_RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION 
POLICIES--Table of Contents



            Subpart A_General Policy, Purpose and Definitions

Sec.
777.11 General policy.
777.12 Purpose.
777.13 Definitions.
777.14 Certain indirect actions prohibited.

                 Subpart B_Uniform Relocation Assistance

777.21 General procedures.
777.22 Relocation assistance advisory services.
777.23 Moving expenses.
777.24 Replacement housing payments.
777.25 Additional rules for replacement housing payments.
777.26 Mobile homes.
777.27 Last resort housing.
777.28 Claims and appeals.

                          Subpart C_Acquisition

777.31 Acquisition procedures.
777.32 Acquisition of tenant-owned improvements.
777.33 Expenses incidental to transfer of title to the Postal Service.

                    Subpart D_Voluntary Acquisitions

777.41 Acquisition procedures.

                           Subpart E_Donations

777.51 Acceptance of donations.

    Authority: 39 U.S.C. 401.

    Source: 51 FR 6983, Feb. 27, 1986, unless otherwise noted.



            Subpart A_General Policy, Purpose and Definitions



Sec. 777.11  General policy.

    It is the policy of the Postal Service to comply voluntarily with 
the provisions of the Uniform Relocation Assistance and Real Property 
Acquisition Policies Act of 1970 (Pub. L. 91-646; 84 Stat. 1894), 
hereinafter referred to as the Act.



Sec. 777.12  Purpose.

    The purpose of these regulations is to update policy and procedures 
for the Postal Service's voluntary compliance with the Act.



Sec. 777.13  Definitions.

    (a) The Act. The Uniform Relocation Assistance and Real Property 
Acquisition Policies Act of 1970 (Pub. L. 91-646; 84 Stat. 1894).
    (b) Business. Any lawful activity, except a farm operation, that is:
    (1) Conducted primarily for the purchase, sale, lease, and/or rental 
of personal and/or real property, and for the manufacturing, processing, 
and/or marketing of products, commodities, and/or any other personal 
property; or
    (2) Conducted primarily for the sale of services to the public; or
    (3) Solely for the purposes of reimbursing moving and related 
expenses, conducted primarily for outdoor advertising display purposes, 
when the display(s) must be moved as a result of the project; or
    (4) Conducted by a nonprofit organization that has established its 
nonprofit status under applicable Federal or State law.
    (c) Small business. A business having at least one but not more than 
500 employees working at the location being acquired.
    (d) Comparable Replacement Dwelling. A dwelling which is:
    (1) Decent, safe, and sanitary.
    (2) Functionally similar to the displacement dwelling with 
particular attention to the number of rooms and living space.
    (3) In an area that is not subject to unreasonably adverse 
environmental conditions, is not generally less desirable than the 
location of the displacement dwelling with respect to public utilities 
and commercial and public facilities, and is reasonably accessible to 
the displaced person's place of employment.
    (4) On a site that is typical in size for residential development 
with normal site improvements including customary landscaping. The site 
need not

[[Page 231]]

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

[[Page 232]]

property transfers to the Postal Service may be waived for good cause by 
the Postal Service.)
    (2) The term ``displaced person'' covers only persons meeting the 
requirements in paragraph (f)(1) of this section. The term ``displaced 
person'' does not cover the following non-exclusive list of examples.
    (i) An owner who voluntarily sells his or her real property to the 
Postal Service, or,
    (ii) A tenant who voluntarily transfers his or her leasehold 
interest to the Postal Service without the exercise or the threat of the 
exercise of eminent domain, or,
    (iii) A tenant who is not lawfully in possession at the times for 
which lawful possession is specified in paragraphs (f)(1)(ii)(B) and 
(f)(1)(iii) of this section. A tenant who was legally required by the 
lease or otherwise to have moved from the property at the times 
specified in such paragraphs shall not be considered to be lawfully in 
possession.
    (iv) A person who, at the determination of the Postal Service, is 
not required to relocate permanently, or,
    (v) A person who, after receiving a notice of displacement or notice 
to vacate by the Postal Service, is notified in writing that he or she 
will not be displaced. Such later notification shall not be issued if 
the person has already moved. If such latter notification is issued, the 
Postal Service shall reimburse the person for any reasonable expenses 
incurred to satisfy any binding contractual relocation obligations 
entered into after the effective date of the notice of displacement or 
the notice to vacate or,
    (vi) A person who is required to temporarily vacate the premises in 
order to permit fumigation, repair, painting, or other maintenance or 
code of enforcement work or,
    (vii) A tenant who is required to move from real property as a 
result of a notice from the Postal Service to vacate such real property 
where such notice to vacate is issued five years or more after the date 
of the acquisition of such real property. A tenant who is given a notice 
to vacate as a result of failure to comply with the terms of his/her 
lease with the Postal Service or failure to renew his/her lease under 
prevailing market conditions is not considered to be a displaced person.
    (viii) A mobile home occupant who owns the site on which the mobile 
home is located and who voluntarily sells the site to the Postal 
Service, regardless of whether such person owns or rents the mobile 
home.
    (ix) A person whose property is acquired through a ``friendly 
condemnation action'' where price is not an issue.
    (g) Displacement Dwelling. The dwelling acquired by the Postal 
Service from which a displaced person is required to move.
    (h) Dwelling. The place of permanent or customary and usual 
residence of a person including a single family house; a single family 
unit in a two-family, multi-family, or multi-purpose property; a unit of 
a condominium or cooperative housing project; a non-housekeeping unit 
(i.e. room in a boarding house); a mobile home; or any other residential 
unit.
    (i) Family. Two or more individuals who are related by blood, 
adoption, marriage, or legal guardianship who live together as a family 
unit. If the Postal Service considers that circumstances warrant, others 
who live together as a family unit may be treated as if they are a 
family for the purpose of determining assistance under these 
regulations.
    (j) Farm Operation. Any activity conducted solely or primarily for 
the production of one or more types of agricultural products or 
commodities, including timber, for sale or home use, and customarily 
producing such products or commodities in sufficient quantity to be 
capable of contributing materially to the operator's support.
    (k) Financial Means. A comparable replacement dwelling is within the 
financial means of the displaced family or individual if the average 
monthly rental or housing cost (e.g., monthly mortgage payments, 
insurance for the dwelling unit, property taxes, and other reasonable 
recurring related expenses) which the displaced person will be required 
to pay does not exceed the greater of 25 percent of the monthly gross 
income of the displaced family or individual or the ratio of the present 
monthly rental or housing cost to the

[[Page 233]]

gross income of the displaced family or individual. (Supplemental 
payments made by public agencies are to be included in gross income for 
purposes of these comparisons.)
    (l) Initiation of Negotiations. In the case where eminent domain is 
neither exercised nor threatened to be exercised, the initiation of 
negotiations is the initial written communication stating a price by the 
owner or the owner's representative to the Postal Service, or by the 
Postal Service to the owner or the owner's representative, regarding a 
proposed acquisition (by purchase or lease) or an interest in a specific 
piece of real property. In the case where eminent domain is either 
exercised or threatened to be exercised, the initiation of negotiations 
is the date the Postal Service makes a written offer of just 
compensation.
    (m) Notice of Displacement. A notice given in writing by the Postal 
Service to a person that he or she will be displaced from his or her 
place of residence, business or farm, as a result of a facility action 
by the Postal Service. A notice of displacement may be combined with or 
in a notice to vacate.
    (n) Notice to Vacate. A notice given in writing by the Postal 
Service to a person that he or she is to vacate postal owned property on 
or before a certain date. A notice to vacate may be combined with or in 
a notice of displacement.
    (o) Owner of Displacement Dwelling. A person is considered to be an 
owner, if, at the initiation of negotiations, the person holds any of 
the following interests in real property acquired for a postal project:
    (1) Fee title, a life estate, a 99-year lease, or a lease, including 
any options for extension, with at least 50 years to run from the date 
of acquisition; or
    (2) An interest other than leasehold interest in a cooperative 
housing project which includes the right to occupy a dwelling; or
    (3) A contract to purchase any of the interests or estates described 
in paragraph (o)(1) or (o)(2) of this section; or
    (4) Any other interest, including a partial interest, which in the 
judgment of the Postal Service, warrants consideration as ownership.
    (p) Person. Any individual, family, partnership, corporation, 
association, business or farm operation.
    (q) Personal Property. Any tangible property, not considered part of 
the real property, for which payment has not been included in the 
acquisition cost.
    (r) Tenant. A person who has the legal right to temporary use and 
occupancy of real property owned by another. In some cases, these 
regulations also use the term ``tenant'' to refer to a person who 
occupies real property owned by another but whose legal right was 
terminated due to a timely notice to vacate the real property used and 
occupied.

[51 FR 6983, Feb. 27, 1986, as amended at 54 FR 10666, Mar. 15, 1989]



Sec. 777.14  Certain indirect actions prohibited.

    Postal employees shall take no indirect, coercive, or deceptive 
actions to cause persons to move from real property in an effort to 
avoid the circumstances under which such persons would be eligible to 
receive relocation benefits as displaced persons under these 
regulations. If a claimant demonstrates that such prohibited action 
caused him or her to move, he or she will be treated as a displaced 
person hereunder, if he or she otherwise meets the definition of a 
displaced person.



                 Subpart B_Uniform Relocation Assistance



Sec. 777.21  General procedures.

    (a) Planning Prior to Site Selection. When acquisition of a site 
under consideration would likely involve displacement of a person 
eligible under Sec. 777.13 for relocation assistance, the Postal 
Service representative shall prepare a relocation needs and availability 
analysis. The Postal Service representative shall include in the 
analysis a complete inventory of persons who may be displaced and 
specifically identify their needs.
    (b) Planning Subsequent to Site Selection. Subsequent to site 
selection, the Postal Service must review the relocation needs and 
availability analysis

[[Page 234]]

and establish a specific plan for providing the assistance covered by 
these regulations to any eligible displaced persons. It will further 
determine the necessity of establishing an on-site relocation office 
which would be accessible to displaced persons and would be staffed with 
relocation personnel qualified to render all relocation services. The 
Postal Service will assure that cost estimates reflect current market 
conditions and that funding is available for all relocation assistance 
and activities.
    (c) Contracting for Relocation Services. When the Postal Service 
determines it to be advantageous, it may enter into a relocation 
assistance service contract with a public agency or private firm having 
expertise in relocation assistance. The contract must require the 
contractor to follow Postal Service relocation assistance regulations.
    (d) Notice to Vacate, Ninety Day Requirement. Postal Service notices 
to vacate must be issued at least 90 days prior to the date the property 
must be vacated. Any such notice must be in writing and delivered in 
person with receipt acknowledged, or by certified mail, return receipt 
requested. The 90-day requirement does not apply to any such notice 
issued subsequent to a valid notice to vacate issued by the prior owner 
of the property. A 90-day notice may be given with, or such notice may 
be combined with, but such notice must not be given before, the notice 
of displacement referred to in paragraph (f) of this section.
    (e) Shorter Notice Period, Unusual Circumstances. An occupant may be 
required to vacate the property on less than 90 days advance written 
notice if the Postal Service determines that a 90-day notice is 
impracticable. An example of such a situation is when the person's 
continued occupancy of the property would constitute a substantial 
danger to the person's health or safety.
    (f) Notice of Displacement. Normally, a notice of displacement will 
be given at the time of acquisition or later. Such notice must not be 
given earlier than the time of contracting, except in the case of 
acquisitions by eminent domain or by the threat of eminent domain. Such 
notice may be given at the time of contracting or between the time of 
contracting and the time of acquisition if the Postal Service considers 
it wise to start the displacement process then and if, in the judgment 
of the Postal Service, it is clear that person will in fact be a 
displaced person.
    (g) Notice of Availability of Advisory Services. The notice of 
displacement will state that relocation assistance advisory services 
will be available to the displaced person and will designate who will 
provide such services.
    (h) Eviction for cause. Any person occupying real property and not 
in unlawful occupancy on the date of initiation of negotiations is 
presumed to be entitled to relocation payments and other assistance 
unless the Postal Service determines that:
    (1) The person received an eviction notice prior to initiation of 
negotiations and, as a result of that notice, is later evicted; or
    (2) The person is evicted after initiation of negotiations for 
serious or repeated violation of material terms of the lease or 
occupancy agreement; and
    (3) In either case the eviction is not undertaken for the purpose of 
evading the obligation to make the relocation payments and other 
assistance available.

[51 FR 6983, Feb. 27, 1986, as amended at 54 FR 10667, Mar. 15, 1989]



Sec. 777.22  Relocation assistance advisory services.

    (a) General. The Postal Service carries out an advisory assistance 
program for displaced persons.
    (b) Relocation Information. The Postal Service must contact each 
displaced person to provide an informational statement outlining the 
assistance available to the particular person. If it is impracticable to 
contact the displaced persons personally, the informational statement 
must be mailed to the persons, certified mail, return receipt requested.
    (c) Time of Initial Contact to Provide Relocation Information. The 
initial contact to provide relocation information must take place by the 
following dates:
    (1) Where acquisition of the property is to occur as a result of the 
exercise or the threat of the exercise of eminent

[[Page 235]]

domain, at the time of initiation of negotiation or within 30 days 
thereafter.
    (2) In any other instance such contact must be made prior to 
acquisition and prior to the notice of displacement or the notice to 
vacate, but it should normally not be made prior to contracting for the 
acquisition.
    (d) Service to be Provided. The advisory program shall include such 
services as may be necessary or appropriate to:
    (1) Provide current information on the availability, purchase 
prices, financing, and rental costs of replacement dwellings.
    (2) For displaced persons eligible for replacement housing payments, 
explain that the displaced person cannot be required to move unless at 
least one comparable replacement dwelling is made available.
    (i) At the request of the displaced person, the Postal Service must 
inform that person, in writing, of the specific comparable replacement 
dwelling used as the basis for the replacement housing payment offer, 
the price or rent used to establish the upper limit of that offer, the 
basis for the determination, and the amount of the replacement housing 
payment to which he or she may be entitled.
    (ii) Where feasible, housing must be inspected by the Postal Service 
representative prior to its being made available to assure that it is a 
comparable replacement dwelling and meets the decent, safe, and sanitary 
standard. The displaced person must be notified that a replacement 
housing payment will not be made unless the replacement dwelling is 
inspected and determined to be decent, safe, and sanitary.
    (iii) Whenever possible, minority displaced persons must be given 
reasonable opportunities to relocate to comparable dwellings, not 
located in an area of minority concentration, that are within their 
financial means. This policy, however, does not require the Postal 
Service to provide a person a larger payment than is necessary to enable 
that person to relocate to a comparable replacement dwelling.
    (iv) All displaced persons, especially the elderly and handicapped, 
must be offered transportation to inspect housing to which they are 
referred.
    (3) Provide current and continuing information on the availability, 
purchase prices, and rental costs of comparable and suitable commercial 
and farm properties and locations, and assist any person displaced from 
a business or farm operation to obtain and become established in a 
suitable replacement location.
    (4) Minimize hardships to displaced persons in adjusting to 
relocation by providing counseling, advice about other sources of 
assistance that may be available, and such other help as may be 
appropriate.
    (5) Supply displaced persons with appropriate information concerning 
Federal, State, and local housing programs, disaster loan and other 
programs administered by the Small Business Administration, and other 
Federal, State, and local programs offering assistance to displaced 
persons.
    (6) Upon selection of a replacement property by a displaced person, 
the Postal Service may arrange for a representative to assist the 
displaced person with necessary arrangements for the move.



Sec. 777.23  Moving expenses.

    (a) Eligibility. (1) Residential displaced persons are entitled to 
benefits under paragraphs (b) and (c) of this section.
    (2) Business and farm displaced persons are entitled to benefits 
under paragraphs (d) through (k) of this section.
    (3) Those business or farm displaced persons who reside on the 
property where the business or farm operation is conducted are eligible 
for applicable benefits both as residents and as business or farm 
displaced persons, but no duplicate payments are allowed.
    (4) Persons who are required to move or to move personal property 
from real property, an interest in which is not acquired by the Postal 
Service, when it is determined by the Postal Service that such move is 
necessary or reasonable because of the Postal Service's having acquired 
an interest in other real property owned or leased by such persons and 
on which such persons conduct a business or farm operation,

[[Page 236]]

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

[[Page 237]]

    (6) Relettering signs and replacing stationary on hand at the time 
of displacement that are made obsolete as a result of the move.
    (7) Actual direct loss of tangible personal property incurred as a 
result of moving or discontinuing the business or farm operation. The 
payment will consist of the reasonable costs incurred in attempting to 
sell the item plus the lesser of:
    (i) The fair market value of the item for continued use at the 
displacement site, less the proceeds from its sale. (To be eligible for 
this payment the claimant must make a good faith effort to sell the 
personal property, unless the Postal Service determines that such effort 
is not necessary. When payment for property loss is claimed for goods 
held for sale, the fair market value must be based on the cost of the 
goods to the business, not the potential selling price.); or
    (ii) The estimated cost of moving the item no more than 50 miles, 
but with no allowance for storage.
    (8) If an item of personal property which is used as part of a 
business or farm operation is not moved, is promptly replaced with a 
substitute item that performs a comparable function at the replacement 
site, the displaced person is entitled to payment of the lesser of:
    (i) The cost of the substitute item, including installation costs at 
the replacement site, less any proceeds from the sale. (To be eligible 
for payments under paragraph (d)(8) of this section, the claimant must 
make a good faith effort to sell the personal property, unless the 
Postal Service determines that such effort is not necessary.)
    (ii) The estimated cost of moving and reinstalling the replaced 
item, based on the lowest acceptable bid or estimate obtained by the 
Postal Service for eligible moving and related expenses, but with no 
allowance for storage.
    (9) A displaced business or farm operation is entitled to 
reimbursement for actual expenses, not to exceed $1,000, which the 
Postal Service determines to be reasonable and which are incurred in 
searching for a replacement location. These expenses include 
transportation, meals and lodging away from home, time spent searching 
(based on reasonable salary or earnings) and fees paid to a real estate 
agent or broker to locate a replacement site, exclusive of any fees or 
commissions related to the purchase of such site.
    (10) Other moving-related expenses, not listed as non-allowable 
under paragraph (l)(3) of this section, which the Postal Service 
determines to be reasonable and necessary.
    (e) Fixed Payment in Lieu of Moving Expenses, Business Moves. Any 
displaced business, other than an outdoor advertising display business, 
or a non-profit organization, is eligible for a fixed payment in lieu of 
actual moving and related expenses. This payment must be in an amount 
equal to the average annual net earnings of the business at that 
location, as computed under paragraph (i) of this section, but not less 
than $1,000 nor more than $20,000. For a displaced person to qualify for 
this payment, the Postal Service must determine that:
    (1) The business owns or rents personal property which must be moved 
in connection with such displacement and for which an expense would be 
incurred in such move; and, the business vacates or relocates from its 
displacement site; and
    (2) The business cannot be relocated without a substantial loss of 
its existing patronage (clientele or net earnings). A business is 
assumed to meet this test unless the Postal Service determines that it 
will not suffer a substantial loss of its existing patronage; and
    (3) The business is not part of a commercial enterprise having more 
than three other entities which are not being acquired by the Postal 
Service, and which are under the same ownership and engaged in the same 
or similar business activities.
    (4) The business contributed materially to the income of the 
displaced person during the 2 taxable years prior to displacement (see 
paragraph (h) of this section). However, the Postal Service may waive 
this test for good cause.
    (5) The business is not operated at a displacement dwelling solely 
for the purpose of renting such dwelling to others.

[[Page 238]]

    (f) Determining the Number of Businesses. In determining whether two 
or more displaced legal entities constitute a single business which is 
entitled to only one fixed payment, all pertinent factors shall be 
considered, including the extent to which:
    (1) The same premises and equipment are shared;
    (2) Substantially identical or interrelated business functions are 
carried out and business and financial affairs are commingled;
    (3) The entities are held out to the public, and to those 
customarily dealing with them, as one business; and
    (4) The same person or closely related persons own, control, or 
manage the affairs of the entities.
    (g) Fixed Payment in Lieu of Moving Expenses, Farm Operation. Any 
displaced farm operation may choose a fixed payment in lieu of a payment 
for actual moving and related expenses in an amount equal to its average 
annual net earnings as computed in accordance with paragraph (i) of this 
section, but not less than $1,000 nor more than $20,000. For a displaced 
person to qualify for this payment, the Postal Service must determine 
that the farm operation contributed materially to the income of the 
displaced person during the two taxable years prior to the displacement 
(see paragraph (h) of this section). In the case of acquisition of land 
which was part of a farm operation before the acquisition, the fixed 
payment shall be made only if the Postal Service determines that:
    (1) The acquisition of part of the land caused the operator to be 
displaced from the operation on the remaining land; or
    (2) The partial acquisition caused a substantial change in the 
nature of the farm operation.
    (h) Contributes materially. The term ``contributes materially,'' as 
used in paragraphs (e) and (g) of this section means that, during the 2 
taxable years prior to the taxable year in which displacement occurs, or 
during such other period as the Postal Service determines to be more 
equitable, a business or farm operation:
    (1) Had average annual gross receipts of at least $5,000; or
    (2) Had average annual net earnings of at least $1,000; or
    (3) Contributed at least 33\1/3\ percent of the owner's or 
operator's average annual gross income from all sources.
    (4) If the application of the above criteria creates an inequity or 
hardship in any given case, the Postal Service may approve the use of 
other criteria as determined appropriate.
    (i) Average Annual Net Earnings of a Business or Farm Operation. The 
average annual net earnings of a business or farm operation are one-half 
of its net earnings before Federal, State, and local income taxes during 
the 2 taxable years immediately prior to the taxable year in which it 
was displaced. If the business or farm was not in operation for the full 
2 taxable years prior to displacement, net earnings shall be based on 
the actual period of operation at the displacement site during the 2 
taxable years prior to displacement, projected to an annual rate. 
Average annual net earnings may be based upon a different period of time 
when the Postal Service determines it to be more equitable. Net earnings 
include any compensation obtained from the business or farm operation by 
its owner, the owner's spouse, and dependents. The displaced person 
shall furnish the Postal Service proof of net earnings through income 
tax returns, certified financial statements, or other reasonable 
evidence which the Postal Service determines is satisfactory.
    (j) Nonprofit Organizations. Any displaced nonprofit organization 
may choose a fixed payment in lieu of a payment for actual moving and 
related expenses in an amount of $2,500, if the Postal Service 
determines that it:
    (1) Cannot be relocated without a substantial loss of existing 
patronage (membership or clientele). A nonprofit organization is assumed 
to meet this test, unless the Postal Service demonstrates otherwise; and
    (2) Is not part of an enterprise having at least one other 
establishment engaged in the same or similar activity which is not being 
acquired by the Postal Service.
    (k) Relocation of Outdoor Advertising Signs. The amount of a payment 
for direct loss of an advertising sign which is personal property is the 
lesser of:

[[Page 239]]

    (1) The depreciated replacement cost of the sign, as determined by 
the Postal Service, less the proceeds from its sale; (To be eligible for 
payments under this paragraph (k)(1), the claimant must make a good 
faith effort to sell the sign, unless the Postal Service determines that 
such effort is not necessary.) or
    (2) The estimated cost of moving the sign, no more than 50 miles, 
but with no allowance for storage.
    (l) Payment for actual reasonable reestablishment expenses, 
nonresidential moves. In addition to the payments available as allowable 
expenses for nonresidential moves, a small business, farm or non-profit 
organization may be eligible to receive a payment, not to exceed $10,000 
for expenses actually incurred in relocating and reestablishing such 
small business, farm or non-profit organization at a replacement site.
    (1) Allowable expenses. Reestablishment expenses must be reasonable 
and necessary, as determined by the Postal Service. They may include the 
following:
    (i) Repairs or improvements to the replacement real property as 
required by federal, state, local law, code or ordinance.
    (ii) Modifications to the replacement property to accommodate the 
business operation or make replacement structures suitable for 
occupancy.
    (iii) Construction and installation costs not to exceed $1,500 for 
exterior signing to advertise the business.
    (iv) Installation of security or fire protection devices.
    (v) Provision of utilities from right-of-way to improvements on the 
replacement site.
    (vi) Redecoration or replacement of soiled or worn surfaces at the 
replacement site, such as paint, panelling or carpeting.
    (vii) Licenses, fees and permits when not paid as part of the moving 
expenses.
    (viii) Feasibility surveys, soil testing and marketing studies.
    (ix) Advertisement of replacement location, not to exceed $1,500
    (x) Professional services in connection with the purchase or lease 
of a replacement site.
    (xi) Increased costs of operation during the first two years at the 
replacement site, not to exceed $5,000, for such items as lease or 
rental charges, personal or real property taxes, insurance premiums, 
utility charges including impact fees or one time assessments for 
anticipated heavy utility usage.
    (xii) Other items that the Postal Service considers essential to the 
reestablishment of the business.
    (2) Non-allowable expenses. Following is a non-exclusive listing of 
restablishment expenditures not considered to be reasonable, necessary 
or otherwise allowable.
    (i) Purchase of capital assets such as office furniture, filing 
cabinets, machinery, or trade fixtures.
    (ii) Purchase of manufacturing materials, production supplies, 
product inventory, or other items used in the normal course of the 
business operation.
    (iii) Interior or exterior refurbishment at the replacement site 
which are for cosmetic purposes only.
    (iv) Interest on money borrowed to make the move or purchase the 
replacement property.
    (v) Payment to a part-time business in the home which does not 
contribute materially to the household income.
    (vi) Payment to a person whose sole business at a replacement 
dwelling is the rental of such dwelling to others.
    (m) General Provisions--(1) Self moves. If the displaced person 
elects to take full responsibility for all or a part of the move, the 
Postal Service may approve a payment for the person's moving expenses in 
an amount not to exceed the lowest of three bids acceptable to the 
Postal Service. Bids may be obtained by either the displaced person or 
the Postal Service.
    (2) Transfer of Ownership. Upon request by the Postal Service and in 
accordance with applicable law, the displaced person may transfer to the 
Postal Service ownership of any personal property that is not to be 
moved, sold, or traded-in by executing a disclaimer of all rights or 
interest in the property.
    (3) Non-Allowable Expenses. Except as specifically otherwise 
provided herein, a displaced person is not entitled to payment for:

[[Page 240]]

    (i) The cost of moving any structure or other real property 
improvement.
    (ii) Loss of goodwill.
    (iii) Loss of profits.
    (iv) Loss of trained employees.
    (v) Any additional operating expenses of a business or farm 
operation caused by operating in a new location.
    (vi) Personal injury.
    (vii) Any legal fee or other cost for preparing a claim for a 
relocation payment or for representing the displaced person before the 
Postal Service.
    (viii) Expenses for searching for a replacement dwelling.
    (ix) Costs for storage of personal property on real property owned 
or leased by the displaced person.

[51 FR 6983, Feb. 27, 1986, as amended at 52 FR 48029, Dec. 17, 1987; 54 
FR 10667, Mar. 15, 1989]



Sec. 777.24  Replacement housing payments.

    (a) Residential displaced persons are eligible for replacement 
housing payments as follows:
    (1) Residential displaced persons who lawfully and continuously 
owned and occupied a displacement dwelling for not less than 180 days 
prior to the initiation of negotiations are entitled to the benefits set 
out in paragraph (b) of this section. Such displaced persons may 
alternately choose the benefits under paragraph (f) of this section.
    (2) Residential displaced persons who lawfully and continuously 
owned and occupied, and residential displaced persons who were tenants 
and lawfully and continuously occupied, a displacement dwelling for not 
less than 90 days prior to the initiation of negotiations are entitled 
to the benefits set out in paragraph (e) of this section.
    (3) Where the replacement housing payment provided hereunder does 
not provide for housing within the financial means (see Sec. 777.13(j)) 
of the displaced person, see Sec. 777.27, Last Resort Housing.
    (b) Benefits for 180 Day Owner Occupants. Displaced persons eligible 
under paragraph (a)(1) of this section are entitled to benefits as set 
out below:
    (1) An amount which is the sum of:
    (i) The amount which must be added to the acquisition cost of the 
displacement dwelling to provide a total amount equal to the lesser of:
    (A) The reasonable cost of a comparable replacement dwelling as 
determined by paragraph (c) of this section; or
    (B) The purchase price of a decent, safe and sanitary replacement 
dwelling actually purchased and occupied by the displaced person; plus
    (ii) Interest Cost (see paragraph (d) of this section); plus
    (iii) Incidental Expenses (see paragraph (h) of this section).
    (2) The benefits in paragraph (b)(1) of this section, are limited to 
a maximum payment of $22,500.
    (3) The benefits in paragraph (b)(1) of this section, are available 
only if a decent, safe and sanitary replacement dwelling is purchased 
within 12 months after the latter of:
    (i) The date of acquisition or, in the case of condemnation, the 
date the required amount is deposited in a court for the displaced 
person's benefit, or
    (ii) The date the person moves from the displacement dwelling.
    (c) Determining the Cost of a Comparable Replacement Dwelling. The 
cost of a comparable replacement dwelling for purposes of benefits to be 
paid to 180 day owner occupants will be determined by applying the 
following:
    (1) If available, at least three representative comparable 
replacement dwellings must be examined and the payment offer computed on 
the cost of the fair market value of the dwelling most closely 
comparable to the displacement dwelling.
    (2) To the extent, feasible, comparable replacement dwellings will 
be selected from the neighborhood in which the displacement dwelling was 
located. If this is not possible, comparable replacement dwellings will 
be selected from nearby or similar neighborhoods where housing costs are 
similar.
    (d) Increased Mortgage Interest Costs. The amount to be paid to a 
displaced 180 day owner occupant for increased mortgage interest costs 
is the amount, if any, by which the present value of the interest on the 
mortgage loan(s) on the replacement dwelling plus any other debt service 
costs exceeds the present value of the interest on the

[[Page 241]]

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

[[Page 242]]

amount may be considered to include the full amount of the required 
downpayment and incidental expenses.
    (h) Incidental Expenses. Incidental expenses covered under paragraph 
(b)(1)(iii) or (g) of this section are those reasonable costs actually 
incurred by the displaced person incident to the purchase of a 
replacement dwelling and customarily paid by the buyer (not to exceed 
the costs of such for a comparable replacement dwelling). They include:
    (1) Legal, closing, and related costs, including those for title 
search and insurance, preparing conveyance instruments, notary fees, 
preparing surveys and plats, and recording fees.
    (2) Lender, FHA, or VA appraisal fees.
    (3) FHA or VA application fee.
    (4) Certification of structural soundness when required by the 
lender.
    (5) Credit report.
    (6) Owner's and mortgagee's evidence or assurance of title.
    (7) Escrow agent's fee.
    (8) State revenue or documentary stamps, sales or transfer taxes.
    (9) Such other costs as the Postal Service determines to be 
incidental to the purchase.

[51 FR 6983, Feb. 27, 1986, as amended at 52 FR 48029, Dec. 17, 1987]



Sec. 777.25  Additional rules for replacement housing payments.

    (a) Multiple Owners. When a single family dwelling is owned by more 
than one person and occupied by only some of the 180 day owners (for 
example, when the dwelling is owned by an estate and only one of the 
heirs is in occupancy), the occupant(s) is (are) eligible to receive a 
maximum total price differential which is the lesser of:
    (1) The difference between (i) the reasonable cost of a comparable 
replacement dwelling, as determined under Sec. 777.24(c) and (ii) the 
acquisition cost of the displacement dwelling; or
    (2) The difference between (i) the occupant's share of the 
acquisition cost of the displacement dwelling and (ii) the purchase 
price of a decent, safe, and sanitary replacement dwelling actually 
purchased and occupied by the displaced person.
    (b) Multiple Occupants of One Displacement Dwelling. If two or more 
occupants of the displacement dwelling move to separate replacement 
dwellings, each occupant is entitled to a reasonable prorated share, as 
determined by the Postal Service, of any relocation payments that would 
have been made if the occupants moved together to a comparable 
replacement dwelling. However, if the Postal Service determines that two 
or more occupants maintained separate households within the same 
dwelling, such occupants have separate entitlements to relocation 
payments.
    (c) Mixed Use and Multi-Family Properties Acquired. If the 
displacement dwelling was part of a property that contained another 
dwelling unit or space used for non-residential purposes, or if it is 
located on a lot larger than that typical for residential purposes, only 
that portion of the acquisition payment which is actually attributable 
to the displacement dwelling and site can be considered its acquisition 
cost when computing the price differential.
    (d) Disaster-Related Insurance Proceeds. To the extent necessary to 
avoid duplicate compensation, the amount of any insurance proceeds 
received by a person in connection with a disaster related loss to the 
displacement dwelling must be included in the acquisition cost of the 
displacement dwelling when computing the price differential.
    (e) Inspection of Replacement Dwelling. Before making a replacement 
housing payment or releasing a payment from escrow, the Postal Service 
must inspect the replacement dwelling and determine that it is a decent, 
safe, and sanitary dwelling.
    (f) Purchase of Replacement Dwelling. A displaced person is 
considered to have met the requirement to purchase a replacement 
dwelling if the person has purchased an existing dwelling; purchased and 
rehabilitated or moved and restored an existing dwelling; or constructed 
a new dwelling, provided in each instance the dwelling is determined to 
be decent, safe and sanitary.

[[Page 243]]

    (g) Conversion of Payment. A displaced person who initially rents a 
replacement dwelling and receives a rental assistance payment may, 
within the required 12 month eligibility period, purchase a decent, safe 
and sanitary replacement dwelling. In such case, he or she is eligible 
to revise his or her original claim, and claim any additional assistance 
for which he or she was originally eligible. However, any portion of the 
rental assistance payment that has been disbursed must be deducted from 
the resultant replacement housing payment or downpayment assistance 
payment.
    (h) Payment After Death. A replacement housing payment is personal 
to the displaced person. Upon his or her death, the undisbursed portion 
of any such payment shall not be paid to the heirs or assigns, except 
that:
    (1) The amount attributable to the displaced person's period of 
actual occupancy of the replacement housing will be paid.
    (2) The full payment must be disbursed in any case in which a member 
of a displaced family dies and other family members continue to occupy 
the replacement dwelling selected in accordance with these regulations.
    (3) Any portion of a replacement housing payment necessary to 
satisfy the legal obligation of an estate in connection with the 
selection of a replacement dwelling by or on behalf of a deceased person 
must be disbursed to the estate.
    (i) 180 Day Owner Retention of Displacement Dwelling. If a 180 day 
owner occupant retains ownership of his or her dwelling or the right to 
move his or her dwelling from the displacement site, and he or she moves 
it and reoccupies it on a replacement site, the cost of the actual 
replacement dwelling to be computed for purposes of Sec. 
777.24(b)(1)(i)(A) (not to exceed the purchase price of a comparable 
replacement dwelling) will be the sum of:
    (1) The expenses of moving and restoring the retained dwelling to a 
condition comparable to that prior to the move; and
    (2) The salvage or other value deducted from the acquisition cost 
for the retained ownership; and
    (3) Additional costs, if necessary, incurred to make the unit a 
decent, safe, and sanitary replacement dwelling; and
    (4) The cost of the replacement site, not to exceed the cost of a 
comparable available and suitable replacement site.
    (j) 90 Day Owner/Retention of Displacement Dwelling. A 90 day owner 
occupant who retains ownership of his or her dwelling or the right to 
remove his or her dwelling may receive the benefits as if he or she were 
a 180 day owner occupant subject, however, to a limitation of $5,250 on 
maximum benefits in lieu of the $22,500 limitation set out in paragraph 
Sec. 777.24(b)(2).

[51 FR 6983, Feb. 27, 1986, as amended at 54 FR 10668, Mar. 15, 1989]



Sec. 777.26  Mobile homes.

    (a) Moving Expenses. Displaced persons who are occupants of mobile 
homes are eligible for moving expenses under Sec. 777.23 subject to the 
following:
    (1) If the person owns the mobile home, moving expenses may, at the 
owner's option, include any reasonable costs incurred to move the mobile 
home to a replacement site, plus the reasonable cost of disassembling, 
moving, and reassembling any attached appurtenances (such as porches, 
decks, skirting, and awnings) which were not acquired, anchoring of the 
unit, and utility ``hook-up charges.''
    (2) If the person rents the mobile home, the Postal Service may 
allow the person moving expense benefits for moving the mobile home as 
if the person were an owner of the mobile home under paragraph (a)(1) of 
this section.
    (3) If costs of moving a mobile home are paid as moving expenses 
under paragraph (a)(1) or (2) of this section, the person may not 
receive housing assistance benefits hereunder, other than any benefits 
to which they are entitled that are limited to the site of the mobile 
home.
    (4) Displaced occupants of mobile homes are eligible for moving 
expenses for personal property other than the mobile home and its 
appurtenances, but only to the extent the Postal Service does not pay 
the costs of moving the mobile home (either as moving expenses or 
replacement housing payments or, if it does pay such costs, the

[[Page 244]]

personal property is of a type that is customarily moved separately from 
the mobile home.)
    (b) Replacement Housing Payments. Displaced persons who are 180 day 
or 90 day occupants of mobile homes qualify for replacement housing 
payments under Sec. 777.24 subject to the following:
    (1) If the displaced person owns the mobile home and owns the site, 
the person is eligible for benefits under either Sec. 777.24 (b) or 
(e).
    (2) If the displaced person rents the mobile home and rents the site 
the person is eligible for benefits under Sec. 777.24(e).
    (3) If the displaced person rents the mobile home and owns the site 
the person is eligible for benefits under Sec. 777.24(e), with regard 
to the mobile home and to benefits under Sec. 777.24(b) with regard to 
the site, subject to a limitation on the home and site benefits combined 
of $22,500. (Persons who voluntarily sell mobile home sites are not 
displaced persons and are not entitled to benefits under Subpart B. See 
Sec. 777.13(e)(2)(viii)).
    (4) If the displaced person owns the mobile home and rents the site 
the person is eligible for benefits under either Sec. 777.24 (b) or (e) 
with regard to the mobile home and to benefits as a tenant under Sec. 
777.24(e) with regard to the site, subject to a limitation on home and 
site benefits combined of $5,250.
    (c) Special Rules for Mobile Homes. (1) In computing replacement 
housing payments for mobile home owners under paragraph (b) of this 
section, apply the terms of Sec. 777.25 (i) and (j) as appropriate, to 
transactions involving moving the mobile home to a new site.
    (2) The acquisition of a portion of a mobile home park may leave a 
remainder that is not adequate to continue the operation of the park. 
When the Postal Service determines that its acquisition of the real 
property has had this effect and that for this reason a mobile home 
occupant located on the remaining part of the property is required to 
move, such occupant shall be considered a displaced person under these 
regulations and shall be entitled to such benefits hereunder as the 
person would otherwise qualify.

[51 FR 6983, Feb. 27, 1986, as amended at 52 FR 48029, Dec. 17, 1987]



Sec. 777.27  Last resort housing.

    (a) Basic Determination to Provide Last Resort Housing. A displaced 
person cannot be required to move from his or her dwelling unless at 
least one comparable replacement dwelling is made available to him or 
her which is within his or her financial means. When such comparable 
replacement dwelling is not available, additional measures may be taken 
to provide for ``last resort'' housing for eligible displaced persons.
    (b) Basic Rights of Persons to be Displaced. The provisions of this 
section do not deprive any displaced person of any rights the person may 
have under these regulations such as the right to accept the maximum 
replacement housing payment available under these regulations and to 
move to a decent, safe and sanitary replacement dwelling even if such 
dwelling is beyond the person's financial means.
    (c) Methods of Providing Replacement Housing. The Postal Service has 
broad latitude in implementing this section, but implementation must be 
on a reasonable cost basis. The Postal Service may provide last resort 
housing using the following methods:
    (1) Rehabilitation of and/or additions to an existing replacement 
dwelling.
    (2) The construction of a new replacement dwelling.
    (3) The provision of a direct loan which requires regular 
amortization or deferred repayment. Terms of such loan will be at the 
discretion of the Postal Service.
    (4) A replacement housing payment in excess of the $5,250 and 
$22,500 limitations contained in Sec. 777.24. A rental subsidy under 
this section may be provided in installments.
    (5) The relocation and any needed rehabilitation of a replacement 
dwelling.
    (6) The purchase or lease of land and/or a replacement dwelling by 
the Postal Service and subsequent sale or lease to, or exchange with, a 
displaced person.
    (7) The removal of barriers to the handicapped.
    (8) Any other method determined by the Postal Service to be 
reasonable.
    (d) Proof of Financial Need. Last Resort Housing benefits exceeding 
the limitations under Sec. 777.24(b)(2) and

[[Page 245]]

Sec. 777.24(e)(2) will not be paid unless required to provide housing 
within the displaced person's financial means. To establish financial 
means, the displaced person must furnish the Postal Service proof of 
gross monthly income through income tax returns, certified financial 
statements or other reasonable evidence which the Postal Service 
determines is satisfactory.

[51 FR 6983, Feb. 27, 1986, as amended at 52 FR 48029, Dec. 17, 1987]



Sec. 777.28  Claims and appeals.

    (a) Preparation of Claim. The relocation representative should 
assist eligible displaced persons in the preparation of claims for 
moving assistance and relocation housing assistance. Preliminary review 
should be conducted in the field by the relocation representative with 
the displaced person, to preclude technical difficulties in processing 
the claim at a higher level.
    (b) Documentation. Any claim for a relocation payment must be 
supported by such documentation as may be required to support the claim, 
for example the length of occupancy at the displacement dwelling, the 
rent paid at the displacement dwelling, expenses incurred in relocating, 
etc. A displaced person must be provided reasonable assistance to 
complete and file any required claim.
    (c) Time for Filing. All claims must be filed with the Postal 
Service within 18 months after the date of the actual move from the 
displacement property.
    (d) Review, Approval and Payment. The Postal Service will review 
claims within 60 days of submission and approve or disapprove payment. 
Upon approval or partial approval of the displaced person's claim, the 
Postal Service will promptly authorize payment of the approved amount. 
The certification that the claimant has occupied decent, safe, and 
sanitary housing must be completed prior to final payment of replacement 
housing payments.
    (e) Relocation Payments Not Considered as Income. Upon approval of 
the claim and delivery of the relocation payment, the displaced person 
must be advised that no relocation payment made under these procedures 
shall be considered as income for the purpose of the Internal Revenue 
Code of 1954, or for the purpose of determining the eligibility or the 
extent of eligibility of any person for assistance under the Social 
Security Act or any other Federal Law.
    (f) Certification. Certification that a person is displaced will be 
provided any agency requiring such information to assist that person 
under any Federal law or program.
    (g) Advance of Funds. If the displaced person cannot arrange for the 
acquisition of a replacement property because of financial problems and 
the problems would be solved by an advance of funds, the Postal Service 
may determine the estimated amount of the actual claim and authorize an 
advance of that amount or a portion thereof. The displaced person will 
be fully informed in writing that his or her final claim will then be 
subject to adjustment. Advance payments should not be made to persons 
with a history of financial irresponsibility.
    (h) Money Owed to the Postal Service. In cases of Postal Service 
leasing the acquired property to a displaced persons, or in cases of 
advance moving cost payments, any monies due the Postal Service by the 
displaced person and not paid before the remainder of the relocation 
payments are made must be deducted from such payments and the relocation 
file so documented.
    (i) Notice of Denial of Claim. If the Postal Service disapproves all 
or part of a payment claimed, of refuses to consider the claim on its 
merits because of untimely filing or other grounds, it must promptly 
notify the claimant in writing of the determination, the basis for the 
determination, and the procedures for appealing the determination.
    (j) Appeal Procedure. If a displaced person wishes to file an 
appeal:
    (1) The appeal must be in writing.
    (2) The appeal must be directed to the General Manager, Real Estate 
Division, and must set forth the displaced person's reasons for the 
appeal. (The General Manager shall not have taken part in the decision 
which led to the appeal. Appeals misdirected to others must be forwarded 
immediately to the General Manager with notification of the forwarding 
to the appellant.)

[[Page 246]]

    (3) The appeal must be submitted within 60 days after the displaced 
person receives written notification of the Postal Service's original 
determination concerning the displacee's claim. The Postal Service may 
extend this time limit for good cause.
    (k) Right of Representation. A displaced person has a right to be 
represented by legal counsel or other representative in connection with 
his or her appeal, but solely at the person's own expense.
    (l) Review of Files by Appellant. The Postal Service must permit a 
person to inspect and copy all materials pertinent to his or her appeal, 
except materials which are confidential. Such inspection will be 
permitted as allowed under the Freedom of Information Act, 39 CFR Part 
265.
    (m) Scope of Review. In deciding an appeal, the Postal Service must 
consider all pertinent justification and other material submitted by the 
displaced person and all other available information that is needed to 
ensure a fair and full review of the appeal.
    (n) Determination and Notification After Appeal. Promptly after 
receipt of all supporting information submitted by the appellant, the 
General Manager, Real Estate Division, must make a written determination 
on the appeal, including the basis on which the decision was made, and 
furnish the appellant a copy. If the full relief requested is not 
granted at the Service Center level, the General Manager, Real Estate 
Division, must advise the person of his or her right to appeal the 
decision to the Director, Office of Real Estate. The rules stated here 
for appeals to the General Manager apply as well as to appeals to the 
Director, Office of Real Estate.

[51 FR 6983, Feb. 27, 1986, as amended at 54 FR 10668, Mar. 15, 1989]



                          Subpart C_Acquisition



Sec. 777.31  Acquisition procedures.

    (a) Policy; Application of Section. The Postal Service, as a matter 
of policy, acquires interests in real property through voluntary 
agreements with owners. Only under unusual and compelling circumstances, 
and on a case-by-case basis, does the Postal Service acquire real 
property through the exercise or the threat of the exercise of eminent 
domain. This policy does not, however, prevent the Postal Service from 
occasionally entering into mutually agreeable condemnation proceedings 
with an owner, where price is not an issue, and for such purposes as to 
clear title or to acquire property from certain elected officials. For 
the purposes of this section, the Postal Service does not consider such 
voluntary and mutually agreeable uses of condemnation proceedings as the 
exercise or the threat of the exercise of eminent domain. The following 
regulations apply only to acquisitions by the exercise or the threat of 
the exercise of eminent domain:
    (1) Notice to Owner. As soon as feasible after deciding to acquire a 
specific property through the exercise of eminent domain, the Postal 
Service must notify the owner of its intent to acquire the property.
    (2) Expeditious Negotiations. The Postal Service must make every 
reasonable effort to acquire real property expeditiously by negotiation.
    (3) Appraisal and Invitation to Owner. Before the initiation of 
negotiations, the real property shall be appraised in accordance with 
Postal Service appraisal standards as outlined in RE-1 and the owner or 
the owner's designated agent shall be given an opportunity to accompany 
the appraiser during the appraiser's inspection of the property.
    (4) Establishment of Offer of Just Compensation. Prior to the 
initiation of negotiations (see Sec. 777.13(k) for definition) the 
Postal Service must establish an amount which it believes is just 
compensation for the real property rights be acquired. The amount must 
not be less than the approved appraisal of the fair market value, 
including damages or benefits to the remaining property. Appraisers 
shall not give consideration to, or include in their real property 
appraisals, any allowances for the benefits provided by title II of the 
Act.
    (5) Summary Statement. Promptly after determining fair market value, 
the Postal Service shall make a written offer to acquire the property 
for the full amount believed to be just compensation. Along with the 
written

[[Page 247]]

purchase offer, the owner must be given a written statement of the basis 
for the offer of just compensation. This statement must include:
    (i) A statement of the amount offered as just compensation. In the 
case of a partial acquisition, the compensation for the real property to 
be acquired and the compensation for damages, if any, must be separately 
stated.
    (ii) The location and description of the real property and the 
interest(s) to be acquired.
    (iii) An identification of the buildings, structures, and other 
improvements (including removable building equipment and trade fixtures) 
which are considered part of the real property for which the offer of 
just compensation is made. Where appropriate, the statement shall 
identify and separately held ownership interest in the improvement(s), 
for example, a tenant-owned improvement.
    (6) Basic Negotiation Procedures. The Postal Service must make every 
reasonable effort to contact the owner or the owner's representative 
and:
    (i) Discuss the Postal Service's offer to purchase the property 
including the basis for the offer of just compensation, and;
    (ii) Explain Postal Service acquisition policies and procedures 
including the provisions for the payment of incidental expenses as 
described under Sec. 777.33.
    (7) Opportunity to Consider Offer. The owner must be given a 
reasonable opportunity to consider the Postal Service's offer, to 
present material which he or she believes is relevant to determining the 
value of the property, and to suggest modification in the proposed terms 
and conditions of the purchase. The Postal Service must consider the 
owner's presentation.
    (8) Updating Offer of Just Compensation. If the information 
presented by the owner or a material change in the character or 
condition of the property indicates the need for new appraisal 
information, or if a significant delay has occurred since the time of 
the appraisal(s) of the property, the Postal Service must have the 
appraisal(s) updated or obtain a new appraisal(s). If the latest 
appraisal information indicates that a change in the purchase offer is 
warranted, the Postal Service must promptly reestablish just 
compensation and offer the revised amount to the owner in writing.
    (9) Contracts and Options. Contracts to purchase shall cover only 
those items related to the acquisition of the property, and not 
incorporate provisions for making payments for relocation costs or 
related costs under title II of these regulations.
    (10) Title II Benefits Not To Be Considered. In the event of 
condemnation, estimated compensation shall be determined solely on the 
basis of the appraised value of the real property with no consideration 
being given to or reference contained therein to the payments to be made 
under title II.
    (11) Coercive Action. The Postal Service shall not advance the time 
of condemnation, or defer negotiations or condemnation, or the deposit 
of funds with the court, or take any other coercive action in order to 
induce an agreement on the price to be paid for the property.
    (12) Inverse Condemnation. If the Postal Service intends to acquire 
any interest in real property by exercise of the power of eminent 
domain, it must institute formal condemnation proceedings and not 
intentionally make it necessary for the owner to institute proceedings 
to prove the fact of the taking of the real property.
    (13) Payment Before Taking Possession. Before requiring the owner to 
surrender possession of the real property, the Postal Service must 
either:
    (i) Pay the agreed purchase price to the owner; or
    (ii) In the case of a condemnation proceeding, deposit with the 
court for the benefit of the owner an amount not less than the amount of 
the approved appraised value of the property or the amount of the award 
of compensation in the condemnation proceeding for the property.
    (14) Right-of-Entry. With the prior approval of the owner, the 
Postal Service may obtain a right-of-entry before making payment to the 
owner.



Sec. 777.32  Acquisition of tenant-owned improvements.

    (a) Acquisition of Improvements. When acquiring any interest in real 
property,

[[Page 248]]

the Postal Service must acquire at least an equal interest in all 
buildings, structures, or other improvements located upon the real 
property. This must include any improvement of a tenant owner who has 
the right or obligation to remove the improvement at the expiration of 
the lease term.
    (b) Special Conditions. Payment for tenant-owned improvements will 
be made to the tenant only if he or she meets the following conditions:
    (1) In consideration for the payment the tenant-owner assigns, 
transfers, and releases to the Postal Service all of the tenant-owner's 
rights, title, and interests in the improvement;
    (2) The owner of the real property on which the improvement is 
located disclaims all interest in the improvement; and
    (3) The payment does not result in the duplication of any 
compensation otherwise authorized by law.
    (c) Preservation of Tenant's Rights. Nothing in this section shall 
be construed to deprive the tenant-owner of any rights to reject payment 
under this section and to obtain payment for such property interests in 
accordance with other applicable law.



Sec. 777.33  Expenses incidental to transfer of title to the Postal Service.

    (a) Reimbursement. When property is acquired through the exercise or 
the threat of the exercise of eminent domain, the owner shall be 
reimbursed for all reasonable expenses he or she necessarily incurred in 
conveying the real property to the Postal Service for:
    (1) Recording fees, transfer taxes, documentary stamps, evidence of 
title, boundary surveys, legal descriptions of the real property, and 
similar incidental expenses. However, the Postal Service will not pay 
costs solely required to perfect the owner's title to the real property.
    (2) Penalty costs and other charges for prepayment of any 
preexisting recorded mortgage, entered into in good faith, encumbering 
the real property.
    (3) The pro rata portion of any prepaid real property taxes which 
are allocable to the period after the Postal Service obtains title to 
the property or effective possession of it, whichever is earlier.
    (b) Direct Payment. Whenever feasible the Postal Service must pay 
these costs directly and thus avoid the need for an owner to pay such 
costs and then seek reimbursement from the Postal Service.
    (c) Certain Litigation Expenses. The owner of the real property 
acquired must be reimbursed any reasonable expenses, including 
reasonable attorney, appraisal, and engineering fees which the owner 
actually incurred because of a condemnation proceeding if:
    (1) The final judgment of the court is that the Postal Service 
cannot acquire the real property by condemnation; or
    (2) The condemnation proceeding is abandoned by the Postal Service 
other than under an agreed-upon settlement; or
    (3) The court having jurisdiction renders a judgment in favor of the 
owner in an inverse condemnation proceeding or the Postal Service 
effects a settlement of such a proceeding.



                    Subpart D_Voluntary Acquisitions



Sec. 777.41  Acquisition procedures.

    (a) Voluntary Acquisitions. Acquisition rules for voluntary 
purchases are set out in Handbook RE-1, Realty Acquisition and 
Management and cover such areas as appraisal and negotiation procedures.
    (b) Tenant-Owned Improvements. In general the Postal Service deals 
exclusively with the fee owner on the acquisition of all real property 
interest at the site. The Postal Service may, however, in exceptional 
cases deal directly with a tenant on a leasehold improvements matter. 
Should the Postal Service acquire the fee interest without acquiring 
rights in a leasehold improvement under circumstances in which the 
tenant would be entitled to compensation under Sec. 777.32 of this 
part, if the acquisition were by eminent domain or the under threat 
thereof, the tenant will be entitled to the benefits that would, under 
such circumstances, have been paid under Sec. 777.32 of this part, 
unless the tenant has formally disclaimed further right in the real 
property improvement beyond the time of the expiration of his or her 
tenancy.

[[Page 249]]



                           Subpart E_Donations



Sec. 777.51  Acceptance of donations.

    Nothing in these regulations shall prevent a person from making a 
gift or donation of real property or any part thereof, or any interest 
therein, or of any compensation paid therefor, to the Postal Service. 
The Postal Service may obtain an appraisal of the real property for 
income tax or other purposes if the owner thereof requests the Postal 
Service to do so.



PART 778_INTERGOVERNMENTAL REVIEW OF POSTAL SERVICE FACILITY 
ACTIONS--Table of Contents



Sec.
778.1 What is the purpose of these regulations?
778.2 What definitions apply to these regulations?
778.3 What categories of facility project actions of the Postal Service 
          are subject to these regulations?
778.4 What are the Postal Service's general responsibilities under the 
          Order?
778.5 What is the Postal Service's obligation with respect to federal 
          interagency coordination?
778.6 What procedures apply to a state's choice of facility action 
          categories under these regulations?
778.7 How does the Postal Service communicate with state and local 
          officials concerning the Postal Service's facility project 
          actions?
778.8 How does the Postal Service provide states an opportunity to 
          comment on proposed facility project actions?
778.9 How does the Postal Service receive and respond to comments?
778.10 How does the Postal Service make efforts to accommodate 
          intergovernmental concerns?
778.11 What are the Postal Service's obligations in interstate 
          situations?
778.12 [Reserved]
778.13 May the Postal Service waive any provision of these regulations?

    Authority: 39 U.S.C. 401.

    Source: 48 FR 29376, June 24, 1983, unless otherwise noted.



Sec. 778.1  What is the purpose of these regulations?

    (a) The regulations in this part implement Executive Order 12372, 
``Intergovernmental Review of Federal Programs,'' issued July 14, 1982 
and amended on April 8, 1983. These regulations also implement 
applicable provisions of section 401 of the Intergovernmental 
Cooperation Act of 1968, which the Postal Service follows as a matter of 
policy.
    (b) These regulations are intended to foster an intergovernmental 
partnership and a strengthened Federalism by relying on state processes 
and on state, areawide, regional and local coordination for review of 
proposed direct federal development projects.
    (c) These regulations are not intended to create any right or 
benefit enforceable at law by a party against the Postal Service or its 
officers.
    (d) These regulations implement Executive Order 12372 and are 
adopted under the Postal Reorganization Act rather than the statute and 
Executive Order listed in paragraph (a) of this section to the extent 
the statute and Executive Order do not apply to the Postal Service under 
39 U.S.C. 410(a).



Sec. 778.2  What definitions apply to these regulations?

    Order means Executive Order 12372, issued July 14, 1982, and amended 
April 8, 1983, and titled ``Intergovernmental Review of Federal 
Programs.''
    State means any of the 50 states, the District of Columbia, the 
Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana 
Islands, Guam, American Samoa, the U.S. Virgin Islands, or the Trust 
Territory of the Pacific Islands.



Sec. 778.3  What categories of facility project actions of the Postal
Service are subject to these regulations?

    The Postal Service publishes in the Federal Register a list of its 
categories of facility project actions that are subject to these 
regulations.



Sec. 778.4  What are the Postal Service's general responsibilities 
under the Order?

    (a) The Postal Service provides opportunities for consultation by 
elected officials of those state and local governments that would be 
directly affected by the Postal Service's facility project actions.
    (b) If a state adopts a process under the Order to review and 
coordinate proposed direct Federal development

[[Page 250]]

projects, the Postal Service, to the extent permitted by law:
    (1) Uses the state process to determine official views of state and 
local elected officials;
    (2) Communicates with state and local elected officials as early in 
a facility project action's planning cycle as is reasonably feasible to 
explain specific plans and actions;
    (3) Makes efforts to accommodate state and local elected officials' 
concerns with proposed direct Federal development projects that are 
communicated through the state process; and
    (4)-(5) [Reserved]
    (6) Seeks the coordination of views of affected state and local 
elected officials in one state with those of another state when a 
proposed direct Federal development project has an impact on interstate 
metropolitan urban centers or other interstate areas.



Sec. 778.5  What is the Postal Service's obligation with respect to 
federal interagency coordination?

    The Postal Service, to the extent practicable, consults with and 
seeks advice from other federal departments and agencies substantially 
affected by Postal Service facility project actions covered under these 
regulations.



Sec. 778.6  What procedures apply to a state's choice of facility action
categories under these regulations?

    (a) A state may select any categories of facility project actions 
published in the Federal Register in accordance with Sec. 778.3 for 
intergovernmental review under these regulations. Each state, before 
selecting categories of facility project actions, shall consult with 
local elected officials.
    (b) Each state that adopts a process shall notify the Postal Service 
of the Postal Service's categories of facility actions selected for that 
process.
    (c) A state may notify the Postal Service of changes in its 
selections at any time. For each change, the state shall submit to the 
Postal Service an assurance that the state has consulted with local 
elected officials regarding the change. The Postal Service may establish 
deadlines by which states are required to inform the Postal Service of 
changes in their facility action category selections.
    (d) The Postal Service uses a state's process as soon as feasible, 
after the Postal Service is notified of the state's selections.



Sec. 778.7  How does the Postal Service communicate with state and local
officials concerning the Postal Service's facility project actions?

    (a) [Reserved]
    (b) The Postal Service provides notice directly to affected state, 
areawide, regional, and local entities in a state of a proposed direct 
Federal development project if:
    (1) The state has not adopted a process under the Order; or
    (2) The development project involves a facility project action 
category not selected for the state process.

This notice may be made by publication in local newspapers and/or by 
letter.



Sec. 778.8  How does the Postal Service provide states an opportunity
to comment on proposed facility project actions?

    (a) Except in unusual circumstances, the Postal Service gives state 
processes or directly affected state, areawide, regional and local 
officials and entities:
    (1) [Reserved]
    (2) At least 60 days from the date established by the Postal Service 
to comment on proposed facility project actions (except as noted in 
paragraph (a)(3) of this section).
    (3) For facility project actions in the Washington, DC National 
Capital Region, coordination also is accomplished with the National 
Capital Planning Commission (NCPC). The Postal Service gives the NCPC 90 
days to comment on projects in the Maryland and Virginia portions of the 
National Capital Region.
    (b) This section also applies to comments in cases in which the 
review, coordination, and communication with the Postal Service have 
been delegated.



Sec. 778.9  How does the Postal Service receive and respond to comments?

    (a) The Postal Service follows the procedures in Sec. 778.10 if:

[[Page 251]]

    (1) A state office or official is designated to act as a single 
point of contact between a state process and all federal agencies, and
    (2) That office or official transmits a state process recommendation 
for a facility project action of a category selected under Sec. 778.6.
    (b)(1) The single point of contact is not obligated to transmit 
comments from state, areawide, regional or local officials and entities 
where there is no state process recommendation.
    (2) If a state process recommendation is transmitted by a single 
point of contact, all comments from state, areawide, regional, and local 
officials and entities that differ from it must also be transmitted.
    (c) If a state has not established a process, or does not submit a 
state process recommendation, state, areawide, regional and local 
officials and entities may submit comments directly to the Postal 
Service.
    (d) If a facility project action is not selected for a state 
process, state, areawide, regional and local officials and entities may 
submit comments directly to the Postal Service. In addition, if a state 
process recommendation for a nonselected facility project action is 
transmitted to the Postal Service by the single point of contact, the 
Postal Service follows the procedures of Sec. 778.10.
    (e) The Postal Service considers comments which do not constitute a 
state process recommendation submitted under these regulations and for 
which the Postal Service is not required to apply the procedures of 
Sec. 778.10 when such comments are provided by a single point of 
contact or directly to the Postal Service by a commenting party.



Sec. 778.10  How does the Postal Service make efforts to accommodate 
intergovernmental concerns?

    (a) If a state process provides a state process recommendation to 
the Postal Service through its single point of contact, the Postal 
Service either:
    (1) Accepts the recommendation;
    (2) Reaches a mutually agreeable solution with the state process; or
    (3) Provides the single point of contact with such written 
explanation of its decision as the Postal Service in its discretion 
deems appropriate. The Postal Service may also supplement the written 
explanation by providing the explanation to the single point of contact 
by telephone, other telecommunication, or other means.
    (b) In any explanation under paragraph (a)(3) of this section, the 
Postal Service informs the single point of contact that:
    (1) The Postal Service will not implement its decision for at least 
ten days after the single point of contact receives the explanation; or
    (2) The Postal Service has reviewed the decision and determined that 
because of unusual circumstances, the waiting period of at least ten 
days is not feasible.
    (c) For purposes of computing the waiting period under paragraph 
(b)(1) of this section, a single point of contact is presumed to have 
received written notification 5 days after the date of mailing of such 
notification.



Sec. 778.11  What are the Postal Service's obligations in interstate 
situations?

    (a) The Postal Service is responsible for:
    (1) Identifying proposed direct federal development projects that 
have an impact on interstate areas;
    (2) Notifying appropriate officials and entities in states which 
have adopted a process and which select the Postal Service's facility 
project action for review;
    (3) Making efforts to identify and notify the affected state, 
areawide, regional, and local officials and entities in those states 
that have not adopted a process under the Order or do not select the 
Postal Service's facility project action for review;
    (4) Responding pursuant to Sec. 778.10 if the Postal Service 
receives a recommendation from a designated areawide agency transmitted 
by a single point of contact in cases in which the review, coordination, 
and communication with the Postal Service have been delegated.
    (b) The Postal Service uses the procedures in Sec. 778.10 if a 
state process provides a state process recommendation to the Postal 
Service through a single point of contact.

[[Page 252]]



Sec. 778.12  [Reserved]



Sec. 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]



[[Page 253]]



                         SUBCHAPTER N_PROCEDURES





Rules of Procedure Before the Office of General Counsel--Table of 
Contents





PART 912_PROCEDURES TO ADJUDICATE CLAIMS FOR PERSONAL INJURY OR PROPERTY
DAMAGE ARISING OUT OF THE OPERATION OF THE U.S. POSTAL SERVICE--Table of

Contents



Sec.
912.1 Claims responsibility.
912.2 Applicability of Federal Tort Claims Act.
912.3 Time limit for filing.
912.4 Place of filing.
912.5 Administrative claim; when presented.
912.6 Administrative claim; who may file.
912.7 Evidence and information to be submitted.
912.8 Sufficiency of evidence and information submitted.
912.9 Final denial of claim.
912.10 Action on approved claims.
912.11 Exclusiveness of remedy.
912.12 Review by legal officers.
912.13 Attorneys' fees.
912.14 Conclusiveness of remedy.

    Authority: 28 U.S.C. 2671-2680; 28 CFR 14.1 through 14.11; 39 U.S.C. 
409.



Sec. 912.1  Claims responsibility.

    The General Counsel is responsible for settlement of claims made 
against the U.S. Postal Service under the Federal Tort Claims Act and 39 
U.S.C. 2603, with authority to redelegate the functions to General 
Counsel staff members and other Postal Service employees.

[36 FR 12448, June 30, 1971]



Sec. 912.2  Applicability of Federal Tort Claims Act.

    (a) The provisions of chapter 171 and all other provisions of title 
28, U.S.C., relating to tort claims shall apply to tort claims arising 
out of the activities of the Postal Service. (39 U.S.C. 409(c)).
    (b) Where the General Counsel, or the General Counsel's designee, 
finds a claim for damage to persons or property resulting from operation 
of the U.S. Postal Service to be a proper charge against the United 
States and it is not cognizable under 28 U.S.C. 2672, he may adjust and 
settle it under authority of 39 U.S.C. 2603.

[45 FR 43719, June 30, 1980, as amended at 69 FR 52607, Aug. 27, 2004]



Sec. 912.3  Time limit for filing.

    (a) Claim. A claim under the Federal Tort Claims Act must be 
presented within two years from the date the claim accrues.
    (b) Suit. Suit must be filed within six months after the date of 
mailing by certified or registered mail of notice of final denial of the 
claim by the Postal Service.

[45 FR 43720, June 30, 1980]



Sec. 912.4  Place of filing.

    Claims should be filed with the Tort Claims Coordinator for the 
Postal Service District Office where the accident occurred, but may be 
filed at any office of the Postal Service, or sent directly to the Chief 
Counsel, Torts, General Law Service Center, USPS National Tort Center, 
1720 Market Street, Room 2400, St. Louis, MO 63155-9948.

[69 FR 52607, Aug. 27, 2004, as amended at 73 FR 75339, Dec. 11, 2008; 
76 FR 52580, Aug. 23, 2011]



Sec. 912.5  Administrative claim; when presented.

    (a) For purposes of this part, a claim shall be deemed to have been 
presented when the U.S. Postal Service receives from a claimant, his 
duly authorized agent or legal representative, an executed Standard Form 
95, Claim for Damage or Injury, or other written notification of an 
incident, accompanied by a claim for money damages in a sum certain for 
injury to or loss of property, personal injury, or death alleged to have 
occurred by reason of the incident. A standard Form 95 may be obtained 
from the local District Tort Claims Coordinator, the National Tort 
Center, or online at usa.gov (select Government forms).
    (b) A claim presented in compliance with paragraph (a) of this 
section may be amended by the claimant at any time prior to:

[[Page 254]]

    (1) The claimant's exercise of the option to file a civil action 
pursuant to 28 U.S.C. 2675(a);
    (2) The Postal Service's issuance of a payment in the full amount of 
the claim; or
    (3) The Postal Service's issuance of a written denial of the claim 
in accordance with Sec. 912.9.
    (c) Amendments shall be submitted in writing and signed by the 
claimant or his duly authorized agent or legal representative. Upon the 
timely filing of an amendment to a pending claim, the Postal Service 
shall have six months in which to make final disposition of the claim as 
amended, and the claimant's option under 28 U.S.C. 2675(a) shall not 
accrue until six months after the filing of an amendment.

[36 FR 12448, June 30, 1971, as amended at 45 FR 43720, June 30, 1980; 
69 FR 52607, Aug. 27, 2004; 73 FR 75339, Dec. 11, 2008]



Sec. 912.6  Administrative claim; who may file.

    (a) A claim for injury to or loss of property may be presented by 
the owner of the property, his duly authorized agent, or legal 
representative.
    (b) A claim for personal injury may be presented by the injured 
person, his duly authorized agent, or legal representative.
    (c) A claim based on death may be presented by the executor or 
administrator of the decedent's estate, or by any other person legally 
entitled to assert such a claim in accordance with applicable State law.
    (d) A claim for loss wholly compensated by an insurer with the 
rights of a subrogee may be presented by the insurer. A claim for loss 
partially compensated by an insurer with the rights of a subrogee may be 
presented by the parties individually as their respective interests 
appear, or jointly.
    (e) A claim presented by an agent or legal representative shall be 
presented in the name of the claimant, be signed by the agent or legal 
representative, show the title or legal capacity of the person signing, 
and be accompanied by evidence of his authority to present a claim on 
behalf of the claimant as agent, executor, administrator, parent, 
guardian, or other representative.

[36 FR 12448, June 30, 1971, as amended at 45 FR 43720, June 30, 1980]



Sec. 912.7  Evidence and information to be submitted.

    (a) Death. In support of a claim based on death, the claimant may be 
required to submit the following evidence or information:
    (1) An authenticated death certificate or other competent evidence 
showing cause of death, date of death, and age of the decedent.
    (2) Decedent's employment or occupation at time of death, including 
monthly or yearly salary or earnings, if any, and the duration of his 
last employment or occupation.
    (3) Full names, addresses, birth dates, kinship, and marital status 
of the decedent's survivors, including identification of those survivors 
who were dependent for support upon the decedent at the time of his 
death.
    (4) Degree of support afforded by the decedent to each survivor 
dependent upon him for support at the time of his death.
    (5) Decedent's general physical and mental condition before death.
    (6) Itemized bills for medical and burial expenses incurred by 
reason of the incident causing death, or itemized receipts of payment 
for such expenses.
    (7) If damages for pain and suffering prior to death are claimed, a 
physician's detailed statement specifying the injuries suffered, 
duration of pain and suffering, any drugs administered for pain, and the 
decedent's physical condition in the interval between injury and death.
    (8) Any other evidence or information which may have a bearing on 
either the responsibility of the United States for the death or the 
damages claimed.
    (b) Personal injury. In support of a claim for personal injury, 
including pain and suffering, the claimant may be required to submit the 
following evidence or information:
    (1) A written report by his attending physician or dentist setting 
forth the nature and extent of the injury, nature and extent of 
treatment, any degree of temporary or permanent disability, the 
prognosis, period of hospitalization,

[[Page 255]]

and any diminished earning capacity. In addition, the claimant may be 
required to submit to a physical or mental examination by a physician 
employed by the agency or another Federal agency. A copy of the report 
of the examining physician shall be made available to the claimant upon 
the claimant's written request, provided that he has, upon request, 
furnished the report referred to in the first sentence of this paragraph 
and has made, or agrees to make available to the agency or another 
Federal agency. A copy previously or thereafter made of the physical or 
mental condition which is the subject matter of his claim.
    (2) Itemized bills for medical, dental, and hospital expenses 
incurred, or itemized the report referred to in the first expenses.
    (3) If the prognosis reveals the necessity for future treatment, a 
statement of expected expenses for such treatment.
    (4) If a claim is made for loss of time for employment, a written 
statement from his employment, whether he is a full- or part-time 
employee, and wages or salary actually lost.
    (5) If a claim is made for loss of income and the claimant is self-
employed, documentary evidence showing the amount of earnings actually 
lost.
    (6) Any other evidence or information which may have a bearing on 
either the responsibility of the United States for the personal injury 
or the damages claimed.
    (c) Property damage. In support of a claim for injury to or loss of 
property, real or personal, the claimant may be required to submit the 
following evidence or information:
    (1) Proof of ownership.
    (2) A detailed statement of the amount claimed with respect to each 
item of property.
    (3) An itemized receipt of payment for necessary repairs or itemized 
written estimates of the cost of such repairs.
    (4) A statement listing date of purchase, purchase price and salvage 
value, where repair is not economical.

[36 FR 12449, June 30, 1971]



Sec. 912.8  Sufficiency of evidence and information submitted.

    In order to exhaust the administrative remedy provided, a claimant 
shall submit substantial evidence to prove the extent of any losses 
incurred and any injury sustained, so as to provide the Postal Service 
with sufficient evidence for it to properly evaluate the claim.

[45 FR 43720, June 30, 1980]



Sec. 912.9  Final denial of claim.

    (a) Final denial of an administrative claim shall be in writing and 
sent to the claimant, his attorney, or legal representative by certified 
or registered mail. The notification of final denial may include a 
statement of the reasons for the denial and shall include a statement 
that, if the claimant is dissatisfied with the agency action, he may 
file suit in an appropriate U.S. District Court not later than 6 months 
after the date of mailing of the notation.
    (b) Prior to the commencement of suit and prior to the expiration of 
the 6 month period provided in 28 U.S.C. 2401(b), a claimant, his duly 
authorized agent, or legal representative, may file a written request 
with the postal official who issued the final denial or with the Chief 
Counsel, Torts, General Law Service Center, USPS National Tort Center, 
1720 Market Street, Room 2400, St. Louis, MO 63155-9948, for a 
reconsideration of a final denial of a claim under paragraph (a) of this 
section. Upon the timely filing of a request for reconsideration, the 
Postal Service shall have 6 months from the date of filing in which to 
make a disposition of the claim and the claimant's option under 28 
U.S.C. 2675(a) shall not accrue until 6 months after the filing of a 
request for reconsideration. Final Postal Service action on a request 
for reconsideration shall be effected in accordance with this part.
    (c) For purposes of this section, a request for reconsideration of a 
final denial of a claim shall be deemed to have been filed when received 
in the office of the official who issued the final denial or in the 
office of the Chief Counsel, Torts, General Law Service Center,

[[Page 256]]

USPS National Tort Center, 1720 Market Street, Room 2400, St. Louis, MO 
63155-9948.
    (d) Only one request for reconsideration of a final denial may be 
filed. A claimant shall have no right to file a request for 
reconsideration of a final denial issued in response to a request for 
reconsideration.

(28 U.S.C. 2671-2680; 28 CFR 14.1-14.11; 39 U.S.C. 401, 409, 2008)

[36 FR 12448, June 30, 1971, as amended at 38 FR 16868, June 27, 1973; 
49 FR 19478, May 8, 1984; 69 FR 52607, Aug. 27, 2004; 73 FR 75340, Dec. 
11, 2008; 76 FR 52580, Aug. 23, 2011]



Sec. 912.10  Action on approved claims.

    In any case where the General Counsel or the General Counsel's 
designee, upon consideration of all the evidence submitted, finds that 
compensation is due a claimant, payment will be made by the U.S. Postal 
Service and in due course a settlement check will be forwarded to the 
claimant or his representative.

[36 FR 12450, June 30, 1971, as amended at 69 FR 52607, Aug. 27, 2004]



Sec. 912.11  Exclusiveness of remedy.

    The provisions of 28 U.S.C. 2679(b) provide that the remedy against 
the United States, as provided by sections 1346(b) and 2672 of title 28, 
for injury or loss or personal injury or death resulting from the 
operation by an employee of the Government of any motor vehicle while 
acting within the scope of his employment is exclusive of any other 
civil action or proceeding by reason of the same subject matter against 
the employee or his estate whose act or omission gave rise to the claim.

[45 FR 43720, June 30, 1980]



Sec. 912.12  Review by legal officers.

    The authority of the Postal Service to adjust, determine, 
compromise, and settle a claim under the provisions of the Federal Tort 
Claims Act shall, if the amount of a proposed compromise, settlement, or 
award exceeds $5,000, be exercised only after review by a legal officer 
of the Postal Service.

[45 FR 43720, June 30, 1980, as amended at 69 FR 52607, Aug. 27, 2004]



Sec. 912.13  Attorneys' fees.

    The provisions of 28 U.S.C. 2678 should be consulted in determining 
the amount of the attorneys' fees.

[36 FR 12448, June 30, 1971. Redesignated at 45 FR 43720, June 30, 1980]



Sec. 912.14  Conclusiveness of remedy.

    Payment by the Postal Service of the full amount claimed or 
acceptance by the claimant, his agent, or legal representative, of any 
award, compromise, or settlement made pursuant to the provisions of the 
Federal Tort Claims Act, shall be final and conclusive on the claimant, 
his agent, or legal representative, and any other person on whose behalf 
or for whose benefit the claim has been presented, and shall constitute 
a complete release of any claim against the United States and against 
any employee of the Government whose act or omission gave rise to the 
claim by reason of the same subject matter.

[45 FR 43720, June 30, 1980]



PART 913_PROCEDURES FOR THE ISSUANCE OF ADMINISTRATIVE SUBPOENAS UNDER 
39 U.S.C. 3016--Table of Contents



Sec.
913.1 Subpoena authority.
913.2 Service.
913.3 Enforcement.
913.4 Disclosure.

    Authority: 39 U.S.C. 204, 401, 404, 3005, 3016.

    Source: 65 FR 31266, May 17, 2000, unless otherwise noted.



Sec. 913.1  Subpoena authority.

    (a) General. The General Counsel by delegation from the Postmaster 
General is responsible for the issuance of subpoenas in investigations 
conducted under 39 U.S.C. 3005(a), with authority to delegate that 
function to a Deputy General Counsel.
    (b) Production of records. A subpoena issued by the General Counsel 
may require the production of any records (including computer records, 
books, papers, documents, and other tangible

[[Page 257]]

things which constitute or contain evidence) which the General Counsel 
considers relevant or material to an investigation.
    (c) Requirements. No subpoena shall be issued until a specific case 
(identifying the individual or entity that is the subject) has been 
opened and an appropriate supervisory and legal review of a subpoena 
request have been performed.
    (d) Requests for subpoenas. (1) A request for a subpoena shall be 
submitted to the Office of the General Counsel by a Postal Inspector, 
Inspector Attorney, or other Inspector specifically authorized by the 
Postal Inspection Service to submit such a request, after appropriate 
review by an Inspector In Charge or that person's designee.
    (2) A request for a subpoena shall state the specific case, with an 
individual or entity identified as the subject, in which the subpoena is 
requested.
    (3) A request for a subpoena shall contain a specific description of 
the records requested, and shall state how they are relevant or material 
to the investigation.
    (4) The General Counsel, in his or her discretion, may issue or deny 
the requested subpoena, or require the requesting individual to provide 
additional information. The General Counsel, in his or her discretion, 
may also honor requests to amend or supplement a request for a subpoena.
    (e) Form and issuance. Every subpoena shall cite 39 U.S.C. 3016 as 
the authority under which it is issued, and shall command each person to 
whom it is directed to produce specified records at a time and place 
therein specified. The General Counsel shall sign the subpoena and enter 
the name of the individual or entity to whom it is directed.



Sec. 913.2  Service.

    (a) Service within the United States. A subpoena issued under this 
section may be served by a person designated under section 3061 of title 
18 at any place within the territorial jurisdiction of any court of the 
United States.
    (b) Foreign service. Any such subpoena may be served upon any person 
who is not to be found within the territorial jurisdiction of any court 
of the United States, in such manner as the Federal Rules of Civil 
Procedure describe for service in a foreign country. To the extent that 
the courts of the United States may assert jurisdiction over such person 
consistent with due process, the United States District Court for the 
District of Columbia shall have the same jurisdiction to take any action 
respecting compliance with this section by such person that such court 
would have if such person were personally within the jurisdiction of 
such court.
    (c) Service on business persons. Service of any such subpoena may be 
made upon a partnership, corporation, association, or other legal entity 
by--
    (1) Delivering a duly executed copy thereof to any partner, 
executive officer, managing agent, or general agent thereof, or to any 
agent thereof authorized by appointment or by law to receive service of 
process on behalf of such partnership, corporation, association, or 
entity;
    (2) Delivering a duly executed copy thereof to the principal office 
or place of business of the partnership, corporation, association, or 
entity; or
    (3) Depositing such copy in the United States mails, by registered 
or certified mail, return receipt requested, duly addressed to such 
partnership, corporation, association, or entity at its principal office 
or place of business.
    (d) Service on natural persons. Service of any subpoena may be made 
upon any natural person by--
    (1) Delivering a duly executed copy to the person to be served; or
    (2) Depositing such copy in the United States mails, by registered 
or certified mail, return receipt requested, duly addressed to such 
person at his residence or principal office or place of business.
    (e) Verified return. A verified return by the individual serving any 
such subpoena setting forth the manner of such service shall be proof of 
such service. In the case of service by registered or certified mail, 
such return shall be accompanied by the return post office receipt of 
delivery of such subpoena.

[[Page 258]]



Sec. 913.3  Enforcement.

    (a) In general. Whenever any person, partnership, corporation, 
association, or entity fails to comply with any subpoena duly served 
upon him, the General Counsel may request that the Attorney General seek 
enforcement of the subpoena in the district court of the United States 
for any judicial district in which such person resides, is found, or 
transacts business (or in the case of a person outside the territorial 
jurisdiction of any district court, the district court for the District 
of Columbia), and serve upon such person a petition for an order of such 
court for the enforcement of this part.
    (b) Jurisdiction. Whenever any petition is filed in any district 
court of the United States under this section, such court shall have 
jurisdiction to hear and determine the matter so presented, and to enter 
such order or orders as may be required to carry into effect the 
provisions of this section. Any final order entered shall be subject to 
appeal under section 1291 of title 28, United States Code. Any 
disobedience of any final order entered under this section by any court 
may be punished as contempt.



Sec. 913.4  Disclosure.

    Any documentary material provided pursuant to any subpoena issued 
under this section shall be exempt from disclosure under section 552 of 
title 5, United States Code.

                           PART 916 [RESERVED]



Rules of Procedure Before the Mail Processing Department--Table of 
Contents





PART 927_RULES OF PROCEDURE RELATING TO FINES, DEDUCTIONS, AND 
DAMAGES--Table of Contents



Sec.
927.1 Noncontractual carriage of international mail by vessel.
927.2 Noncontractual air service for international and military mail.
927.3 Other remedies.

    Authority: 39 U.S.C. 401, 2601 Chap. 56 Section 5604; 49 U.S.C. 
1357, 1471.

    Source: 67 FR 50353, Aug. 2, 2002, unless otherwise noted.



Sec. 927.1  Noncontractual carriage of international mail by vessel.

    (a) Report of infraction. Where evidence is found or reported that a 
carrier of mail by vessel which has transported mail pursuant to the 
provisions of Chapter 4, USPS Purchasing Manual, has unreasonably or 
unnecessarily delayed the mails, or committed other delinquencies in the 
transportation of mail, has failed to carry the mail in a safe and 
secure manner, or has caused loss or damage to the mail, the facts will 
be reported to International Network Operations, Headquarters.
    (b) Review, investigation, recommendation. International Network 
Operations will investigate the matter, record findings of fact, make a 
recommendation concerning the need for imposition of fine or penalty 
with reasons for the recommendation, and will advise the carrier of the 
recommendation.
    (c) Penalty action. International Network Operations, upon review of 
the record, may impose a fine or penalty against a carrier for any 
irregularity properly documented, whether or not penalty action has been 
recommended. A tentative decision of International Network Operations to 
take penalty action will be set forth in detail the facts and reasons 
upon which the determination is based. International Network Operations 
will send the tentative decision, including notice of the irregularities 
found and the amount of fine or penalty proposed, to the carrier. The 
carrier may present a written defense to the proposed action within 21 
days after receipt of the tentative decision. International Network 
Operations will advise the carrier of the final decision.
    (d) Appeal. If the final decision includes a penalty International 
Network Operations will advise the carrier that it may, within 30 days, 
appeal the action in writing to the Vice President, Network Operations 
Management, U.S. Postal Service Headquarters and that its written appeal 
should include all facts and arguments upon which the carrier relies in 
support of the appeal. If an appeal is not received, International 
Network Operations will close the record. When an appeal is taken, the 
Vice President, Network Operations Management will review the

[[Page 259]]

complete record the decide the appeal. He will advise the carrier of the 
decision in writing and will take actions consistent with that decision. 
The Vice President, Network Operations Management, may sustain, rescind, 
or compromise a fine or penalty. The decision of the Vice President, 
Network Operations Management on appeal shall be the final decision of 
the Postal Service. The Postal Service may, in its discretion, deduct 
from payment otherwise due the carrier an amount necessary to satisfy 
the penalty action taken under this section.
    (e) Details of administration. For further administrative details, 
see USPS Purchasing Manual, chapter 4.



Sec. 927.2  Noncontractual air service for international and military 
mail.

    (a) Report of infraction. Each mail handling irregularity will be 
reported in the prescribed format by the cognizant postal official or 
designated representative. As soon as possible the reporting authority 
will ask the local representative of the air carrier to provide an 
explanation of the irregularity. A summary of the explanation, if any, 
will be entered in the record. A copy of the report will be provided to 
the local station manager of the air carrier concerned at the close of 
each tour or not less frequently than each 24 hours.
    (b) Carrier conferences. At least one a month, postal officials will 
schedule meetings with the local representatives of the affected air 
carriers to discuss the reported irregularities. The carrier's 
representative will be advised of any irregularity for which the 
reporting authority will recommend penalty action. The carrier's 
representative will be offered the opportunity to comment on any 
irregularity, and any comments will be attached and/or be made part of 
the record. The reports on which penalty action is recommended will then 
be processed by International Network Operations, Postal Headquarters.
    (c) Review, investigation, penalty action. International Network 
Operations will review the matter and advise the carrier of the 
recommendations. The carrier has 21 days from receipt of notice to 
dispute the recommended penalties. In those instances which the carrier 
has disputed the facts alleged by the reporting authority, International 
Network Operations will investigate the matter to resolve the 
differences. International Network Operations, upon review of the 
record, may impose a fine or penalty against an air carrier for any 
irregularity properly documented, whether or not penalty action has been 
recommended. International Network Operations will send the decision, 
including notice of the irregularities alleged and the amount of fine or 
penalty proposed to the carrier. The Postal Service may, in its 
discretion, deduct from payment otherwise due the air carrier an amount 
necessary to satisfy the penalty action taken under this section.
    (d) Appeal. If the final decision includes a penalty, International 
Network Operations will advise the carrier that it may, within 30 days, 
appeal the action in writing to the Vice President, Network Operations 
Management, Postal Headquarters, and that its written appeal should 
include all facts and arguments upon which the carrier relies in support 
of the appeal. If an appeal is not received, International Network 
Operations will close the file. When an appeal is taken, the Vice 
President, Network Operations Management, will review the complete 
record and decide the appeals. He will advise the carrier of the 
decision in writing and will take action consistent with that decision. 
The Vice President, Network Operations Management, may sustain, rescind, 
or compromise a fine or penalty. The decision of the Vice President, 
Network Operations Management, on appeal shall be the final decision of 
the Postal Service. The Postal Service, may, in its discretion, deduct 
from pay otherwise due the air carrier an amount necessary to satisfy 
the penalty action taken under this section.
    (e) Details of administration. For further administrative details, 
forms, and other implementing materials adapted to the respective modes 
of transportation, see International Mail Operations, Handbook T-5, 
chapter 5.



Sec. 927.3  Other remedies.

    The procedures and other requirements of this part apply only where 
the

[[Page 260]]

Postal Service proposes to assess penalties, fines, deductions, or 
damages. This part does not limit other remedies available to the Postal 
Service, including such remedies as summary action to withhold tender of 
mail to protect the public interest in the event of major irregularities 
such as theft, deliberate loss, damage, abandonment of the mail or 
service failures by the air carrier.



PART 931_RULES OF PROCEDURE GOVERNING THE COMPROMISE OF 
OBLIGATIONS--Table of Contents





Sec. 931.1  Compromise of obligations.

    Any proposition of compromise shall be submitted in writing, and the 
amount offered in compromise shall be deposited with the Manager, 
Accounting Division or the appropriate postal data center. If the offer 
in compromise is rejected the amount deposited will be returned. The 
amount of a compromise offer must be tendered unconditionally for 
deposit pending the consideration of acceptance. Checks and drafts 
cannot be accepted as offers in compromise when they bear endorsements 
or instructions to the effect that the acceptance of such checks or 
drafts constitutes settlement in full of the claim, fine, penalty, or 
liability in connection with which the offer is made, except that such 
checks or drafts may be accepted when they are accompanied with a 
written waiver of the endorsements or instructions printed thereon. 
Offers in compromise should be transmitted or delivered to the office or 
officer of the Postal Service from whom demand is received for payment 
of the amount due.

(39 U.S.C. 401)

[26 FR 11662, Dec. 6, 1961. Redesignated at 33 FR 6291, April 25, 1968]



Rules of Procedure Before the Postal Inspection Service--Table of Contents





PART 946_RULES OF PROCEDURE RELATING TO THE DISPOSITION OF STOLEN MAIL 
MATTER AND PROPERTY ACQUIRED BY THE POSTAL INSPECTION SERVICE FOR USE AS

EVIDENCE--Table of Contents



Sec.
946.1 Scope of part.
946.2 Disposition of property of apparent owners.
946.3 Contraband and property subject to court order.
946.4 Disposition of property of unknown owners.
946.5 Disposition of property having a value of less than $200.
946.6 Disposition of abandoned property; additional period for filing 
          claims.
946.7 Submission of claims.
946.8 Determination of claims.
946.9 Reconsideration of claims.
946.10 Record retention.
946.11 Disposition of property declared abandoned.

    Authority: 5 U.S.C. 552(a); 39 U.S.C. 401(2), (5), (8), 404(a)(7), 
2003, 3001.

    Source: 53 FR 6986, Mar. 4, 1988, unless otherwise noted.



Sec. 946.1  Scope of part.

    This part prescribes procedures governing the disposition of 
recovered stolen mail matter and any other property (real, personal, 
tangible or intangible) obtained by the Postal Inspection Service for 
possible use as evidence after the need to retain such property no 
longer exists. Property obtained by Postal Inspectors which appears to 
have been loose in the mails but is not retained for use as evidence, 
except unlawful matter, must be treated in accordance with postal 
regulations concerning disposition of dead mail (see Domestic Manual 
(DMM) 159.4). Unlawful matter must be disposed of in accordance with 
Sec. 946.3.



Sec. 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

[[Page 261]]

describing the property and the procedure for filing a claim for its 
return (see Sec. Sec. 946.3 and 946.7). Such claims must be filed 
within 30 days from the date the notice is postmarked. If the apparent 
owner of the property fails to file a timely claim, the property is 
considered abandoned and must be disposed of as provided in Sec. 946.6.



Sec. 946.3  Contraband and property subject to court order.

    Claims submitted with respect to property subject to this part, 
possession of which is unlawful, must be denied, in writing, by 
certified mail and the person submitting the claim must be accorded 45 
days from the postmarked date to institute judicial proceedings to 
challenge the denial. If judicial proceedings are not instituted within 
45 days, or any extension of time for good cause shown, the contraband 
property must be destroyed unless the Chief Postal Inspector or delegate 
determines that it should be placed in official use by the Postal 
Inspection Service. Property subject to this part, the disposition of 
which is involved in litigation or is subject to an order of court, must 
be disposed of as determined by the court.



Sec. 946.4  Disposition of property of unknown owners.

    (a) Where no apparent owner of property subject to this part is 
known, except property described in Sec. 946.3, and the Chief Postal 
Inspector or delegate estimates that the fair market value of the 
property exceeds $200, and the property is not needed as evidence, the 
Chief Postal Inspector or delegate must publish notice providing the 
following information:
    (1) A description of the property including model or serial numbers, 
if known;
    (2) The name, address, and telephone number of the Postal Inspector 
in Charge who has custody of the property; and
    (3) A statement inviting any person who believes that he or she is 
fully entitled to the property to submit a claim for its return with the 
Postal Inspector in Charge who is identified in the notice. Such claim 
must be submitted within 30 days from the date of first publication of 
the notice (See Sec. 946.7).
    (b) The notice under Sec. 946.4(a) must be published once a week 
for three consecutive weeks in a publication of general circulation 
within the judicial district where the Postal Inspection Service took 
possession of the property.



Sec. 946.5  Disposition of property having a value of less than $200.

    Where the owner of property subject to this part is unknown and the 
Chief Postal Inspector or delegate estimates that fair market value of 
such property is $200 or less, title to the property vests in the United 
States Postal Service, subject to the right of the owner to submit a 
valid claim as provided in Sec. 946.6.



Sec. 946.6  Disposition of abandoned property; additional period for 
filing claims.

    (a) Upon expiration of the time provided in Sec. Sec. 946.2 and 
946.4(a)(3) for the filing of claims or any extension thereof, and 
without the receipt of a timely claim, the property described in the 
notice is considered abandoned and becomes the property of the United 
States Postal Service. However, if the owner satisfies the requirements 
of Sec. 946.6(b), except for property described in Sec. 946.3, such 
abandoned property must be returned to the owner if a valid claim is 
filed within 3 years from the date the property became abandoned, with 
the following qualifications:
    (1) Where property has been placed in official use by the Postal 
Inspection Service, a person submitting a valid claim under this section 
must be reimbursed the fair market value of the property at the time 
title vested in the United States Postal Service, less costs incurred by 
the Postal Service in returning or attempting to return such property to 
the owner and;
    (2) Where property has been sold, a person submitting a valid claim 
under this section must be reimbursed the same amount as the last 
appraised value of the property prior to the sale of such property.
    (b) In order to present a valid claim under Sec. 946.6(a), the 
claimant must establish that he or she had no actual or

[[Page 262]]

constructive notice prior to the date the property became abandoned that 
he or she was entitled to file a claim pursuant to Sec. 946.2 or Sec. 
946.4. Publication of notice pursuant to Sec. 946.4 provides 
constructive notice unless a claimant can demonstrate circumstances 
which reasonably precluded his access to the published notice.

[53 FR 6986, Mar. 4, 1988, as amended at 63 FR 8126, Feb. 18, 1998]



Sec. 946.7  Submission of claims.

    Claims submitted pursuant to this part must be submitted on Postal 
Service Form 1503 which may be obtained from the Inspector in Charge who 
has custody of the property.



Sec. 946.8  Determination of claims.

    Upon receipt of a claim under this part, the Postal Inspection 
Service must conduct an investigation to determine the merits of the 
claim. The results of the investigation must be submitted to the Chief 
Postal Inspector or delegate who must approve or deny the claim by 
written decision, a copy of which must be forwarded to the claimant by 
certified mail. If the claim is approved, the procedures to be followed 
by the claimant to obtain return of the property, or its determined 
value, must be stated. If the claim is denied, the decision must state 
the reasons therefor.



Sec. 946.9  Reconsideration of claims.

    A written request for reconsideration of denied claims may be 
submitted within 10 days of the postmarked date of the mailing denying 
the claim. Such requests must be addressed to the Chief Postal Inspector 
or delegate and must be based on evidence recently developed or not 
previously presented.



Sec. 946.10  Record retention.

    Records regarding property subject to this part will be retained for 
a period of 3 years following return of the property to its owner or a 
determination that the property is abandoned.



Sec. 946.11  Disposition of property declared abandoned.

    Property declared abandoned, including cash, and proceeds from the 
sale of property subject to this part may be shared by the Postal 
Inspection Service with federal, state, or local law enforcement 
agencies. Unless the Chief Postal Inspector determines that cash or the 
proceeds of the sale of the abandoned property are to be shared with 
other law enforcement agencies, such cash or proceeds shall be deposited 
in the Postal Service Fund established by 39 U.S.C. 2003. The authority 
to make this determination may be delegated by the Chief Postal 
Inspector.

[59 FR 29372, June 7, 1994]



Rules of Procedure Before the Judicial Officer--Table of Contents





PART 951_PROCEDURE GOVERNING THE ELIGIBILITY OF PERSONS TO PRACTICE 
BEFORE THE POSTAL SERVICE--Table of Contents



Sec.
951.1 Authority for rules.
951.2 Eligibility to practice.
951.3 Persons ineligible for admission to practice.
951.4 Authorization of appearance may be required.
951.5 Complaint of misconduct.
951.6 Censure, suspension or disbarment; grounds.
951.7 Notice of disbarment; exclusion from practice.
951.8 Ex parte communications.

    Authority: 39 U.S.C. 204, 401.

    Source: 36 FR 11562, June 16, 1971, unless otherwise noted.



Sec. 951.1  Authority for rules.

    The Judicial Officer promulgates these rules pursuant to authority 
delegated by the Postmaster General.



Sec. 951.2  Eligibility to practice.

    (a) Any individual who is a party to any proceeding before the 
Judicial Officer, the Board of Contract Appeals or an Administrative Law 
Judge may appear for himself or by an attorney at law.
    (b) The head of any department of the Postal Service may establish 
such special rules and regulations pertaining to eligibility to practice 
before such department as he may deem to be necessary or desirable.
    (c) Generally, except as provided in Sec. 951.3, any attorney at 
law who is a

[[Page 263]]

member in good standing of the Bar of the Supreme Court of the United 
States or of the highest court of any State, District, Territory, 
Protectorate or Possession of the United States, or of the District of 
Columbia, and is not under any order of any court or executive 
department of one of the foregoing governmental entities suspending, 
enjoining, restraining, disbarring, or otherwise restricting him in the 
practice of law may represent others before the U.S. Postal Service.
    (d) When any person acting in a representative capacity appears in 
person or signs a paper in practice before the Postal Service his 
personal appearance or signature shall constitute a representation to 
the Postal Service that under the provisions of this part and the law he 
is authorized and qualified to represent the particular party in whose 
behalf he acts. The Postal Service does not generally take formal action 
or issue any certificate to show that an individual is eligible to 
practice before it. (See Sec. 951.4.)



Sec. 951.3  Persons ineligible for admission to practice.

    (a) No person disbarred from practice before the Postal Service or 
in any other executive department of any of the governmental entities 
mentioned in Sec. 951.2(c) will be eligible to practice before the 
Postal Service until said order of disbarment shall have been revoked.
    (b) Any person who, subsequently to being admitted to practice 
before the Postal Service, is disbarred by any governmental entity 
mentioned in Sec. 951.2(c) shall be deemed suspended from practice 
before the Postal Service during the pendency of said order or 
disbarment.
    (c) No person who has been an attorney, officer, clerk, or employee 
in the Postal Service will be recognized as attorney for prosecuting 
before it or any office thereof any case or matter which he was in 
anywise connected while he was such attorney, officer, clerk, or 
employee.
    (d) No person coming within the prohibitions of 18 U.S.C. 203, 205, 
or 207, will be recognized as attorney before the Postal Service or any 
office thereof.



Sec. 951.4  Authorization of appearance may be required.

    The Judicial Officer, the head of any department of the Postal 
Service or any Administrative Law Judge may require any person to 
present satisfactory evidence of his authority to represent the person 
for whom he appears.



Sec. 951.5  Complaint of misconduct.

    (a) If the head of any department of the Postal Service has reason 
to believe, or if complaint be made to him, that any person is guilty of 
conduct subjecting him to suspension or disbarment, the head of such 
office shall report the same to the Judicial Officer.
    (b) Whenever any person submits to the Judicial Officer a complaint 
against any person who has practiced, is practicing or holding himself 
out as entitled to practice before the Postal Service, the Judicial 
Officer may refer such complaint to the Chief Inspector for a complete 
investigation and report.
    (c) At any time, the Judicial Officer may refer the complaint to the 
General Counsel for the preparation of formal charges to be lodged 
against and served upon the person against whom the complaint has been 
made.



Sec. 951.6  Censure, suspension or disbarment; grounds.

    (a) The Judicial Officer may censure, suspend or disbar any person 
against whom a complaint has been made and upon whom charges have been 
served as provided in Sec. 951.5 if he finds that such person:
    (1) Does not possess the qualifications required by Sec. 951.2;
    (2) Has failed to conform to standards of ethical conduct required 
of practitioners at the Bar of any court of which he is a member;
    (3) Represents, as an associate, an attorney who, known to him, 
solicits practice by means of runners or other unethical methods;
    (4) By use of his name, personal appearance, or any device, aids or 
abets an attorney to practice during the period of his suspension or 
disbarment, such suspension or disbarment being known to him;
    (5) Displays toward the Judicial Officer, Board of Contract Appeals 
or any

[[Page 264]]

Administrative Law Judge assigned to the Postal Service, conduct which, 
if displayed toward any court of any State, the United States, any of 
its Territories or the District of Columbia, would be cause for censure, 
suspension or disbarment; or
    (6) Is otherwise guilty of misconduct or lacking in character or 
professional integrity.
    (b) Before any person shall be censured, suspended or disbarred, he 
shall be afforded an opportunity to be heard by the Judicial Officer on 
the charges made against him. The General Counsel or his designee shall 
prosecute such cases.
    (c) In the event the Judicial Officer is unavailable for any reason, 
he may assign complaints of misconduct to the Associate Judicial 
Officer, an Administrative Law Judge appointed pursuant to the 
provisions of the Administrative Procedure Act, an Administrative Judge 
appointed pursuant to the provisions of the Contract Disputes Act of 
1978, or some other disinterested member of the headquarters staff of 
the Postal Service recommended by the Deputy Postmaster General, for the 
determinations required by Sec. 951.5, the conduct of the hearings, and 
the decision to censure, suspend, or debar persons as provided herein.

[36 FR 11562, June 16, 1971, as amended at 51 FR 16517, May 5, 1986]



Sec. 951.7  Notice of disbarment; exclusion from practice.

    Upon the disbarment of any person, notice thereof will be given to 
the heads of the departments of the Postal Service and to the other 
Executive Departments, and thereafter, until otherwise ordered, such 
disbarred persons will not be entitled to practice before the Postal 
Service or any department thereof.



Sec. 951.8  Ex parte communications.

    The provisions of 5 U.S.C. 551(14), 556(d) and 557(d) prohibiting ex 
parte communications are made applicable to proceedings under these 
rules of practice.

[42 FR 5357, Jan. 28, 1977]



PART 952_RULES OF PRACTICE IN PROCEEDINGS RELATIVE TO FALSE 
REPRESENTATION AND LOTTERY ORDERS--Table of Contents



Sec.
952.1 Authority.
952.2 Scope.
952.3 Informal dispositions.
952.4 Office business hours.
952.5 Complaints.
952.6 Interim impounding.
952.7 Notice of docketing and answer.
952.8 Service.
952.9 Filing documents for the record.
952.10 Answer.
952.11 Default.
952.12 Amendment of pleadings.
952.13 Continuances and extensions.
952.14 Hearings.
952.15 Change of place of hearings.
952.16 Appearances.
952.17 Presiding officers.
952.18 Evidence.
952.19 Subpoenas.
952.20 Witness fees.
952.21 Discovery.
952.22 Transcript.
952.23 Proposed findings and conclusions.
952.24 Decisions.
952.25 Exceptions to initial decision or tentative decision.
952.26 Judicial Officer.
952.27 Motion for reconsideration.
952.28 Orders.
952.29 Modification or revocation of orders.
952.30 Supplemental orders.
952.31 Computation of time.
952.32 Official record.
952.33 Public information.
952.34 Ex parte communications.

    Authority: 39 U.S.C. 204, 401, 3005, 3012, 3016.

    Source: 76 FR 36320, June 22, 2011, unless otherwise noted.



Sec. 952.1  Authority.

    These rules of practice are issued by the Judicial Officer of the 
United States Postal Service (see Sec. 952.26) pursuant to authority 
delegated by the Postmaster General, and in accordance with 39 U.S.C. 
3005, and are governed by the Administrative Procedure Act, 5 U.S.C. 
551, et seq.



Sec. 952.2  Scope.

    These rules of practice shall be applicable in all formal 
proceedings before the Postal Service under 39 U.S.C. 3005, including 
such cases instituted under prior rules of practice pertaining to

[[Page 265]]

these or predecessor statutes, unless timely shown to be prejudicial to 
Respondent.



Sec. 952.3  Informal dispositions.

    This part does not preclude the disposition of any matter by 
agreement between the parties either before or after the filing of a 
complaint when time, the nature of the proceeding, and the public 
interest permit.



Sec. 952.4  Office business hours.

    The offices of the officials identified in these rules are located 
at 2101 Wilson Boulevard, Suite 600, Arlington, VA 22201-3078, and are 
open Monday through Friday except holidays from 8:15 a.m. to 4:45 p.m.



Sec. 952.5  Complaints.

    When the Chief Postal Inspector or his or her designated 
representative believes that a person is using the mails in a manner 
requiring formal administrative action under 39 U.S.C. 3005, he or she 
shall prepare and file with the Recorder a complaint which names the 
person involved; states the name, address and telephone number of the 
attorney representing Complainant; states the legal authority and 
jurisdiction under which the proceeding is initiated; states the facts 
in a manner sufficient to enable the person named therein to answer; and 
requests the issuance of an appropriate order or orders and/or the 
assessment of civil penalties. Complainant shall attach to the complaint 
a copy of the order or orders requested which may, at any time during 
the proceedings, be modified. The person named in the complaint shall be 
known as ``Respondent'', and the Chief Postal Inspector or his or her 
designee shall be known as ``Complainant''. The term ``person'' (1 
U.S.C. 1) shall include any name, address, number or other designation 
under or by use of which Respondent seeks remittances of money or 
property through the mail.



Sec. 952.6  Interim impounding.

    In preparation for or during the pendency of a proceeding initiated 
under 39 U.S.C. 3005, mail addressed to Respondent may be impounded upon 
obtaining an appropriate order from a United States District Court, as 
provided in 39 U.S.C. 3007.



Sec. 952.7  Notice of docketing and answer.

    (a) Upon receipt of a complaint filed against a Respondent whose 
mailing address is within the United States, the Recorder shall issue a 
notice of docketing and answer due date stating the date for an answer 
which shall not exceed 30 days from the service of the complaint and a 
reference to the effect of failure to file an answer and/or the 
assessment of civil penalties authorized by 39 U.S.C. 3012. (See 
Sec. Sec. 952.10 and 952.11).
    (b) Upon receipt of a complaint filed against a Respondent whose 
mailing address is not within the United States, the Judicial Officer 
shall review the complaint and any supporting information and determine 
whether a prima facie showing has been made that Respondent is engaged 
in conduct warranting issuance of the orders authorized by 39 U.S.C. 
3005(a). Where the Judicial Officer concludes that a prima facie showing 
has not been made the complaint shall be dismissed. Where the Judicial 
Officer concludes that a prima facie showing has been made, he or she 
shall issue a tentative decision and orders which:
    (1) Set forth findings of fact and conclusions of law;
    (2) Direct Respondent to cease and desist from engaging in conduct 
warranting the issuance of an order authorized by 39 U.S.C. 3005(a);
    (3) Direct that postal money orders drawn to the order of Respondent 
not be paid for 45 days from date of the tentative decision;
    (4) Direct that mail addressed to Respondent be forwarded to 
designated facilities and detained for 45 days from the date of the 
tentative decision subject to survey by Respondent and release of mail 
unrelated to the matter complained of;
    (5) Tentatively assess such civil penalties as he considers 
appropriate under applicable law; and
    (6) Provide that unless Respondent presents, within 45 days of the 
date of the tentative decision, good cause for dismissing the complaint, 
or modifying the tentative decision and orders, the

[[Page 266]]

tentative decision and orders shall become final.
    (c) The Judicial Officer may, upon a showing of good cause made 
within 45 days of the date of the tentative decision, hold a hearing to 
determine whether the tentative decision and orders should be revoked, 
modified, or allowed to become final. Should a hearing be granted, the 
Judicial Officer may modify the tentative decision and orders to extend 
the time during which the payment of postal money orders payable to 
Respondent is suspended and mail addressed to Respondent is detained.



Sec. 952.8  Service.

    (a) Where Respondent's mailing address is within the United States, 
the Recorder shall cause a notice of docketing and answer due date (the 
``Notice''), a copy of these rules of practice, and a copy of the 
complaint to be transmitted to Complainant who shall serve those 
documents upon Respondent or his or her agent by certified mail, return 
receipt requested. Service shall be complete upon mailing. A receipt 
acknowledging delivery of the notice shall be secured from Respondent or 
his or her agent and forwarded to the Recorder, U.S. Postal Service, 
2101 Wilson Boulevard, Suite 600, Arlington, VA 22201-3078, to become a 
part of the official record. In the absence of a receipt, Complainant 
shall file an Affidavit of Service, along with returned undelivered 
mail, or other appropriate evidence of service, with the Recorder. In 
the alternative Complainant may, in its discretion, effectuate service 
by hand on Respondent and file an Affidavit of Service with the 
Recorder.
    (b) Where the only address against which Complainant seeks relief is 
outside the United States, a copy of the complaint, the tentative 
decision, and a copy of these rules of practice shall be sent by 
international mail, return receipt requested, by the Recorder to the 
address cited in the complaint. A written statement by the Recorder 
noting the time and place of mailing shall be accepted as evidence of 
service in the event a signed return receipt is not returned to the 
Recorder.



Sec. 952.9  Filing documents for the record.

    (a) Each party shall file with the Recorder pleadings, motions, 
proposed orders, and other documents for the record. Discovery need not 
be filed except as may be sought to be included in the record, or as may 
be ordered by the presiding officer. Each filing after the initial 
complaint shall be served upon all other parties to the proceeding by 
the filing party, and an affidavit of such service signed and dated by 
the filing party shall be included on the last page of such filing, 
which shall state as follows:

    I, [name of filing party] hereby certify that I served the within 
[title of document] upon each party of record by electronic mail or 
first class mail on [date].

    (b) The parties shall file one original of all documents filed under 
this section unless otherwise ordered by the presiding officer.
    (c) Documents shall be dated and state the docket number and title 
of the proceeding. Any pleading or other document required by order of 
the presiding officer to be filed by a specified date must be received 
by the Recorder on or before such date. The date of filing shall be 
entered thereon by the Recorder.
    (d) The presiding officer may permit filing of pleadings, motions, 
proposed orders, and other documents for the record by facsimile or by 
electronic mail with the Recorder.



Sec. 952.10  Answer.

    (a) The answer shall contain a concise statement admitting, denying, 
or explaining each of the allegations set forth in the complaint.
    (b) Any facts alleged in the complaint which are not denied or are 
expressly admitted in the answer may be considered as proved, and no 
further evidence regarding these facts need be adduced at the hearing.
    (c) The answer shall be signed personally by an individual 
Respondent, or in the case of a partnership by one of the partners, or, 
in the case of a corporation or association, by an officer thereof.

[[Page 267]]

    (d) The answer shall set forth Respondent's address, electronic mail 
address, and telephone number or the name, address, electronic mail 
address, and telephone number of an attorney representing Respondent.
    (e) The answer shall affirmatively state whether the Respondent will 
appear in person or by counsel at the hearing.
    (f) In lieu of appearing at the hearing in person or by counsel, 
Respondent may request that the matter be submitted for determination 
pursuant to Sec. 952.17(b)(10).



Sec. 952.11  Default.

    (a) If Respondent fails to file an answer within the time specified 
in the notice of docketing and answer, Respondent may be deemed in 
default, and to have waived hearing and further procedural steps. The 
Judicial Officer may thereafter issue orders and/or assess civil 
penalties without further notice.
    (b) If Respondent files an answer but fails to appear at the 
hearing, Respondent may, unless timely indications to the contrary are 
received, be deemed to have abandoned the intention to present a defense 
to the charges of the complaint, and the Judicial Officer, without 
further notice to Respondent, may issue the orders and/or assess civil 
penalties sought in the complaint.
    (c) If Respondent or Complainant fails to respond to or comply with 
an order of the presiding officer, the party may be held in default, and 
absent good cause shown, the party may be deemed to have abandoned the 
intention to present a defense, or to prosecute the complaint, and the 
presiding officer or Judicial Officer, without further notice to the 
offending party, may, as appropriate, dismiss the complaint or issue the 
orders and/or assess civil penalties sought in the complaint.



Sec. 952.12  Amendment of pleadings.

    (a) Amendments shall be filed with the Recorder.
    (b) By consent of the parties, a pleading may be amended at any 
time. Also, a party may move to amend a pleading at any time prior to 
the close of the hearing and, provided that the amendment is reasonably 
within the scope of the proceeding initiated by the complaint, the 
presiding officer rule on the motion as he or she deems to be fair and 
equitable to the parties.
    (c) When issues not raised by the pleadings but reasonably within 
the scope of the proceedings initiated by the complaint are tried by 
express or implied consent of the parties, they shall be treated in all 
respects as if they had been raised in the pleadings. Such amendments as 
may be necessary to conform the pleadings to the evidence and to raise 
such issues may be allowed at any time upon the motion of any party.
    (d) If a party objects to the introduction of evidence at the 
hearing on the ground that it is not within the issues raised by the 
pleadings, but fails to satisfy the presiding officer that an amendment 
of the pleadings would prejudice him or her on the merits, the presiding 
officer may allow the pleadings to be amended and may grant a 
continuance to enable the objecting party to rebut the evidence 
presented.
    (e) The presiding officer may, upon reasonable notice and upon such 
terms as are just, permit service of a supplemental pleading setting 
forth transactions, occurrences, or events which have occurred since the 
date of the pleading sought to be supplemented and which are relevant to 
any of the issues involved.



Sec. 952.13  Continuances and extensions.

    Continuances and extensions will not be granted by the presiding 
officer except for good cause shown.



Sec. 952.14  Hearings.

    Hearings are held at 2101 Wilson Boulevard, Suite 600, Arlington, VA 
22201-3078, or other locations designated by the presiding officer. 
Time, date, and location for the hearing shall be set by the presiding 
officer in his or her sole discretion.



Sec. 952.15  Change of place of hearings.

    (a) A party may file a request that a hearing be held to receive 
evidence in his or her behalf at a place other than that designated in 
Sec. 952.14. The party shall support the request with a statement 
outlining:

[[Page 268]]

    (1) The evidence to be offered in such place;
    (2) The names and addresses of the witnesses who will testify; and,
    (3) The reasons why such evidence cannot be produced at Arlington, 
VA.
    (b) The presiding officer shall give consideration to the 
convenience and necessity of the parties and witnesses and the relevance 
of the evidence to be offered.



Sec. 952.16  Appearances.

    (a) Respondent may appear and be heard in person or by attorney. A 
Notice of Appearance must be filed by any attorney representing 
Respondent.
    (b) An attorney may practice before the Postal Service in accordance 
with applicable rules issued by the Judicial Officer. See 39 CFR Part 
951.
    (c) When Respondent is represented by an attorney, all pleadings and 
other papers subsequent to the complaint shall be mailed to the 
attorney.
    (d) Withdrawal by any attorney representing a party must be preceded 
by a motion to withdraw stating the reasons therefore, and shall be 
granted in the discretion of the presiding officer. If a successor 
attorney is not appointed at the same time, withdrawing counsel shall 
provide adequate contact information for Respondent.
    (e) Parties must promptly file a notice of change of attorney.



Sec. 952.17  Presiding officers.

    (a) The presiding officer at any hearing shall be an Administrative 
Law Judge qualified in accordance with law or the Judicial Officer (39 
U.S.C. 204). The Chief Administrative Law Judge shall assign cases. The 
Judicial Officer may, for good cause shown, preside at the hearing if an 
Administrative Law Judge is unavailable.
    (b) The presiding officer shall have authority to:
    (1) Administer oaths and affirmations;
    (2) Examine witnesses;
    (3) Rule upon offers of proof, admissibility of evidence, and 
matters of procedure;
    (4) Order any pleading amended upon motion of a party at any time 
prior to the close of the hearing;
    (5) Maintain discipline and decorum and exclude from the hearing any 
person acting in an inappropriate manner;
    (6) Require the filing of briefs or memoranda of law on any matter 
upon which he or she is required to rule;
    (7) Order prehearing conferences for the purpose of the settlement 
or simplification of issues by the parties;
    (8) Order the proceeding reopened at any time prior to his or her 
decision for the receipt of additional evidence;
    (9) Render an initial decision, which becomes the final agency 
decision unless a timely appeal is taken, except that the Judicial 
Officer may issue a tentative or a final decision;
    (10) Rule on motion by either party, or on his or her own 
initiative, for a determination on the written record in lieu of an oral 
hearing in his or her sole discretion;
    (11) Rule on motion by either party, or on his or her own 
initiative, to permit a hearing to be conducted by telephone, video 
conference, or other appropriate means;
    (12) Rule upon applications and requests filed under Sec. Sec. 
952.19 and 952.21; and
    (13) Exercise all other authority conferred upon the presiding 
officer by the Administrative Procedure Act or other applicable law.



Sec. 952.18  Evidence.

    (a) Except as otherwise provided in these rules, the Federal Rules 
of Evidence shall govern. However, such rules may be relaxed to the 
extent that the presiding officer deems proper to ensure a fair hearing. 
The presiding officer may exclude irrelevant, immaterial, or repetitious 
evidence.
    (b) Testimony shall be under oath or affirmation and witnesses shall 
be subject to cross-examination.
    (c) Agreed statements of fact may be received in evidence.
    (d) Official notice, judicial notice or administrative notice of 
appropriate information may be taken in the discretion of the presiding 
officer.
    (e) Authoritative writings of the medical or other sciences may be 
admitted in evidence, but only through the testimony of expert witnesses 
or by stipulation.

[[Page 269]]

    (f) Lay testimonials may be received in evidence as proof of the 
efficacy or quality of any product, service, or thing sold through the 
mails, in the discretion of the presiding officer.
    (g) The written statement of a competent witness may be received in 
evidence provided that such statement is relevant to the issues, that 
the witness shall testify under oath at the hearing that the statement 
is in all respects true, and, in the case of expert witnesses, that the 
statement correctly states the witness's opinion or knowledge concerning 
the matters in question.
    (h) A party which objects to the admission of evidence shall explain 
the grounds for the objection. Formal exceptions to the rulings of the 
presiding officer are unnecessary.



Sec. 952.19  Subpoenas.

    (a) General. Upon written request of either party filed with the 
Recorder or on his or her own initiative, the presiding officer may 
issue a subpoena requiring:
    (1) Testimony at a deposition. The deposing of a witness in the city 
or county where the witness resides or is employed or transacts business 
in person, or at another location convenient for the witness that is 
specifically determined by the presiding officer;
    (2) Testimony at a hearing. The attendance of a witness for the 
purpose of taking testimony at a hearing; and
    (3) Production of records. The production by the witness at a 
deposition or hearing of records designated in the subpoena.
    (b) Voluntary cooperation. Each party is expected:
    (1) To cooperate and make available witnesses and evidence under its 
possession, custody or control as requested by the other party, without 
issuance of a subpoena, and
    (2) To secure voluntary production of desired third-party records 
whenever possible.
    (c) Requests for subpoenas. (1) A request for a subpoena shall to 
the extent practical be filed:
    (i) At the same time a request for deposition is filed; or
    (ii) Fifteen (15) days before a scheduled hearing where the 
attendance of a witness at a hearing is sought.
    (2) A request for a subpoena shall state the reasonable scope and 
relevance to the case of the testimony and of any records sought.
    (3) The presiding officer, in his or her sole discretion, may honor 
requests for subpoenas not presented within the time limitations 
specified in this paragraph.
    (d) Motion to quash or modify. (1) Upon written request by the 
person subpoenaed or by a party, the presiding officer may:
    (i) Quash or modify the subpoena if it is unreasonable, oppressive 
or for other good cause shown, or
    (ii) Require the person in whose behalf the subpoena was issued to 
advance the reasonable cost of producing subpoenaed records. Where 
circumstances require, the presiding officer may act upon such a request 
at any time after a copy has been served upon the opposing party.
    (2) Motions to quash or modify a subpoena shall be filed within 10 
days of service, or at least one day prior to any scheduled hearing, 
whichever first occurs. The presiding officer, in his or her sole 
discretion, may entertain motions to quash or modify not made within the 
time limitations specified in this paragraph.
    (e) Form; issuance. (1) Every subpoena shall state the title of the 
proceeding, shall cite 39 U.S.C. 3016(a)(2) as the authority under which 
it is issued, and shall command each person to whom it is directed to 
attend and give testimony, and if appropriate, to produce specified 
records at a time and place therein specified. In issuing a subpoena to 
a requesting party, the presiding officer shall sign the subpoena and 
may, in his or her discretion, enter the name of the witness and 
otherwise leave it blank. The party to whom the subpoena is issued shall 
complete the subpoena before service.
    (2) The party at whose instance a subpoena is issued shall be 
responsible for the payment of fees and mileage of the witness in 
accordance with 28 U.S.C. 1821, or other applicable law, and of the 
officer who serves the subpoena. The failure to make payment of

[[Page 270]]

such charges on demand may be deemed by the presiding officer as 
sufficient ground for striking the testimony of the witness and the 
evidence the witness has produced.
    (f)(1) Service in general. The party requesting issuance of a 
subpoena shall arrange for service.
    (2) Service within the United States. A subpoena issued under this 
section may be served by a person designated under 18 U.S.C. 3061 or by 
a United States marshal or deputy marshal, or by any other person who is 
not a party and not less than 18 years of age at any place within the 
territorial jurisdiction of any court of the United States.
    (3) Service outside the United States. Any such subpoena may be 
served upon any person who is not to be found within the territorial 
jurisdiction of any court of the United States, in such manner as the 
Federal Rules of Civil Procedure prescribe for service in a foreign 
country. To the extent that the courts of the United States may assert 
jurisdiction over such person consistent with due process, the United 
States District Court for the District of Columbia shall have the same 
jurisdiction to take any action respecting compliance with this section 
by such person that such court would have if such person were personally 
within the jurisdiction of such court.
    (4) Service on business persons. Service of any such subpoena may be 
made upon a partnership, corporation, association, or other legal entity 
by:
    (i) Delivering a duly executed copy thereof to any partner, 
executive officer, managing agent, or general agent thereof, or to any 
agent thereof authorized by appointment or by law to receive service of 
process on behalf of such partnership, corporation, association, or 
entity;
    (ii) Delivering a duly executed copy thereof to the principal office 
or place of business of the partnership, corporation, association, or 
entity; or
    (iii) Depositing such copy in the United States mails, by registered 
or certified mail, return receipt requested, duly addressed to such 
partnership, corporation, association, or entity at its principal office 
or place of business.
    (5) Service on natural persons. Service of any subpoena may be made 
upon any natural person by:
    (i) Delivering a duly executed copy to the person to be served; or
    (ii) Depositing such copy in the United States mails, by registered 
or certified mail, return receipt requested, duly addressed to such 
person at his or her residence or principal office or place of business.
    (6) Verified return. A verified return by the individual serving any 
such subpoena setting forth the manner of such service shall constitute 
proof of service. In the case of service by registered or certified 
mail, such return shall be accompanied by the return post office receipt 
of delivery of such subpoena, or a statement of service by registered or 
certified mail in the event that receipt of delivery is unavailable.
    (g) Contumacy or refusal to obey a subpoena. In the case of refusal 
to obey a subpoena, the Judicial Officer may request the Attorney 
General to petition the district court for any district in which the 
person receiving the subpoena resides, is found, or conducts business 
(or in the case of a person outside the territorial jurisdiction of any 
district court, the district court for the District of Columbia) to 
issue an appropriate order for the enforcement of such subpoena. Any 
failure to obey such order of the court may be punishable as contempt.



Sec. 952.20  Witness fees.

    The Postal Service does not pay fees and expenses for Respondent's 
witnesses or for depositions requested by Respondent, unless otherwise 
ordered by the presiding officer.



Sec. 952.21  Discovery.

    (a) Voluntary discovery. The parties are encouraged to engage in 
voluntary discovery procedures. In connection with any deposition or 
other discovery procedure, the presiding officer may issue any order 
which justice requires to protect a party or person from annoyance, 
embarrassment, oppression, or undue burden or expense, and those orders 
may include limitations on the scope, method, time and place for 
discovery, and provisions for protecting

[[Page 271]]

the secrecy of confidential information or documents.
    (b) Discovery disputes. The parties are required to make a good 
faith effort to resolve objections to discovery requests informally. A 
party receiving an objection to a discovery request, or a party which 
believes that another party's response to a discovery request is 
incomplete or entirely absent, may file a motion to compel a response, 
but such a motion must include a representation that the moving party 
has tried in good faith, prior to filing the motion, to resolve the 
matter informally. The motion to compel shall include a copy of each 
discovery request at issue and the response, if any.
    (c) Discovery limitations. The presiding officer may limit the 
frequency or extent of use of discovery methods described in these 
rules. In doing so, generally the presiding officer will consider 
whether:
    (1) The discovery sought is unreasonably cumulative or duplicative, 
or is obtainable from some other source that is more convenient, less 
burdensome, or less expensive;
    (2) The party seeking discovery has had ample opportunity by 
discovery in the case to obtain the information sought; or
    (3) The discovery is unduly burdensome and expensive, taking into 
account the needs of the case, the amount in controversy, limitations on 
the parties' resources, and the importance of the issues at stake.
    (d) Interrogatories. At any time after service of the complaint, a 
party may serve on the other party written interrogatories to be 
answered separately in writing, signed under oath and returned within 30 
days. Upon timely objection, the presiding officer will determine the 
extent to which the interrogatories will be permitted.
    (e) Requests for admission. At any time after service of the 
complaint, a party may serve upon the other party a request for the 
admission of specified facts. Within 30 days after service, the party 
served shall answer each requested fact or file objections thereto. The 
factual propositions set out in the request may be ordered by the 
presiding officer as deemed admitted upon the failure of a party to 
respond timely and fully to the request for admissions.
    (f) Requests for production of documents. At any time after service 
of the complaint, a party may serve on the other party written requests 
for the production, inspection, and copying of any documents, 
electronically stored information, or things, to be answered within 30 
days. Upon timely objection, the presiding officer will determine the 
extent to which the requests must be satisfied, and if the parties 
cannot themselves agree thereon, the presiding officer shall specify 
just terms and conditions for compliance.
    (g) Depositions. Except as stated herein, depositions shall be 
conducted in accordance with Rule 30 of the Federal Rules of Civil 
Procedure.
    (1) After a complaint has been filed and docketed, the parties may 
mutually agree to, or the presiding officer may, upon application of 
either party and for good cause shown, order the taking of testimony of 
any person by deposition upon oral examination or written 
interrogatories before any officer authorized to administer oaths at the 
place of examination, for use as evidence or for purpose of discovery. 
The application for order shall specify whether the purpose of the 
deposition is discovery or for use as evidence.
    (2) The time, place, and manner of conducting depositions shall be 
as mutually agreed by the parties or, failing such agreement, and upon 
proper application, governed by order of the presiding officer.
    (3) No testimony taken by deposition shall be considered as part of 
the evidence in the hearing of an appeal unless and until such testimony 
is offered and received in evidence at or before such hearing. It will 
not ordinarily be received in evidence if the deponent is available to 
testify at the hearing, but the presiding officer may admit testimony 
taken by deposition in his or her discretion. A deposition may be used 
to contradict or impeach the testimony of the witness given at the 
hearing. In cases submitted on the written record in lieu of an oral 
hearing, the presiding officer may, in his or her discretion, receive 
depositions as evidence in supplementation of that record.

[[Page 272]]

    (4) Each party shall bear its own expenses associated with the 
taking of any deposition unless otherwise ordered by the presiding 
officer.
    (h) Sanctions. If a party fails to appear for a deposition, after 
being served with a proper notice, or fails to serve answers or 
objections to interrogatories, requests for admissions, or requests for 
the production or inspection of documents, after proper service, the 
party seeking discovery may request that the presiding officer impose 
appropriate orders. Failure of a party to comply with an order pursuant 
to this rule may result in the presiding officer's ruling that the 
disobedient party may not support or oppose designated charges or 
defenses or may not introduce designated matters in evidence. The 
presiding officer may also infer from the disobedient party's failure to 
comply with the order that the facts to which the order related would, 
if produced or admitted, be adverse to such party's interests. In the 
sole discretion of the presiding officer, failure of a party to comply 
with an order pursuant to this rule may result in the presiding 
officer's issuance of an order of default under Sec. 952.11(c).



Sec. 952.22  Transcript.

    (a) Hearings shall be reported and transcribed by a court reporter. 
Argument upon any matter may be excluded from the transcript by order of 
the presiding officer. A copy of the transcript shall be a part of the 
record and the sole official transcript of the proceeding. Copies of the 
transcript shall be supplied to the parties to the proceeding by the 
reporter at rates not to exceed the maximum rates fixed by contract 
between the Postal Service and the reporter. Copies of parts of the 
official record including exhibits admitted into evidence, other than 
the transcript, may be obtained by Respondent from the Recorder upon the 
payment of reasonable copying charges. Items that cannot reasonably be 
photocopied may be photographed and furnished in that form.
    (b) Changes in the official transcript may be ordered by the 
presiding officer only to correct errors affecting substance and then 
only in the manner herein provided. Within 10 days after the receipt by 
any party of a copy of the official transcript, or any part thereof, he 
or she may file a motion requesting correction of the transcript. 
Opposing counsel shall, within such time as may be specified by the 
presiding officer, notify the presiding officer in writing of his or her 
concurrence or disagreement with the requested corrections. Failure to 
interpose timely objection to a proposed correction shall be considered 
to be concurrence. Thereafter, the presiding officer shall by order 
specify the corrections to be made in the transcript. The presiding 
officer on his or her own initiative may order corrections to be made in 
the transcript with prompt notice to the parties of the proceeding. Any 
changes ordered by the presiding officer other than by agreement of the 
parties shall be subject to objection and exception.



Sec. 952.23  Proposed findings and conclusions.

    (a) Each party to a proceeding, except one who fails to answer the 
complaint or, having answered, either fails to appear at the hearing or 
indicates in the answer that he or she does not desire to appear, may, 
unless at the discretion of the presiding officer such is not 
appropriate, submit proposed findings of fact, conclusions of law, 
orders and supporting reasons either in oral or written form in the 
discretion of the presiding officer. The presiding officer may also 
require parties to any proceeding to submit proposed findings of fact, 
conclusions of law, orders, and supporting reasons. Unless given orally, 
the date set for filing of proposed findings of fact, conclusions of 
law, orders and supporting reasons shall be within 30 days after the 
delivery of the official transcript to the Recorder who shall notify 
both parties of the date of its receipt. The filing date for proposed 
findings of fact, conclusions of law, orders and supporting reasons 
shall be the same for both parties. If not submitted by such date, or 
unless extension of time for the filing thereof is granted, they will 
not be included in the record or given consideration.
    (b) Except when presented orally before the close of the hearing, 
proposed findings of fact shall be set forth in serially numbered 
paragraphs and shall

[[Page 273]]

state with particularity all evidentiary facts in the record with 
appropriate citations to the transcript or exhibits supporting the 
proposed findings. Each proposed conclusion shall be separately stated.
    (c) Except when presented orally before the close of the hearing, 
proposed orders shall state the statutory basis of the order and, with 
respect to orders proposed to be issued pursuant to 39 U.S.C. 
3005(a)(3), shall be set forth in serially numbered paragraphs stating 
with particularity the representations Respondent and its representative 
shall cease and desist from using for the purpose of obtaining money or 
property through the mail.



Sec. 952.24  Decisions.

    (a) Initial decision by Administrative Law Judge. A written initial 
decision shall be rendered by an Administrative Law Judge as soon as 
practical after completion of the hearing, or after close of the record 
in matters heard upon the written record in lieu of an oral hearing 
under Sec. 952.17(b)(10). The initial decision shall include findings 
and conclusions with the reasons therefor upon all the material issues 
of fact or law presented on the record, and the appropriate orders or 
denial thereof. The initial decision shall become the final agency 
decision unless an appeal is taken in accordance with Sec. 952.25.
    (b) Tentative or final decision by the Judicial Officer. When the 
Judicial Officer presides at the hearing he or she shall issue a final 
or a tentative decision. Such decision shall include findings and 
conclusions with the reasons therefor upon all the material issues of 
fact or law presented on the record, and the appropriate orders or 
denial thereof. The tentative decision shall become the final agency 
decision unless exceptions are filed in accordance with Sec. 952.25.
    (c) Oral decisions. The presiding officer may render an oral 
decision (an initial decision by an Administrative Law Judge, or a 
tentative or final decision by the Judicial Officer) at the close of the 
hearing when the nature of the case and the public interest warrant. A 
party which desires an oral decision shall notify the presiding officer 
and the opposing party at least 5 days prior to the date set for the 
hearing. Either party may submit proposed findings, conclusions, and 
proposed orders either orally or in writing at the conclusion of the 
hearing.



Sec. 952.25  Exceptions to initial decision or tentative decision.

    (a) A party in a proceeding presided over by an Administrative Law 
Judge may appeal to the Judicial Officer by filing exceptions in a brief 
on appeal within 15 days from the receipt of the Administrative Law 
Judge's initial decision.
    (b) A party in a proceeding presided over by the Judicial Officer 
may file exceptions within 15 days from the receipt of the Judicial 
Officer's tentative decision.
    (c) If an initial or tentative decision is rendered orally by the 
presiding officer at the close of the hearing, he or she may then orally 
provide notice to the parties participating in the hearing of the time 
limit within which an appeal must be filed.
    (d) The date for filing the reply to an appeal brief or to a brief 
in support of exceptions to a tentative decision by the Judicial Officer 
is 10 days after the receipt thereof. No additional briefs shall be 
received unless requested by the Judicial Officer.
    (e) Briefs upon appeal or in support of exceptions to a tentative 
decision by the Judicial Officer and replies thereto shall be filed in 
duplicate with the Recorder and contain the following matter:
    (1) A subject index of the matters presented, with page references; 
a table of cases alphabetically arranged; a list of statutes and texts 
cited with page references;
    (2) A concise abstract or statement of the case in briefs on appeal 
or in support of exceptions;
    (3) Numbered exceptions to specific findings and conclusions of 
fact, conclusions of law, or recommended orders of the presiding officer 
in briefs on appeal or in support of exceptions; and
    (4) A concise argument clearly setting forth points of fact and of 
law relied upon in support of or in opposition to each exception taken, 
together with specific references to the parts of the

[[Page 274]]

record and the legal or other authorities relied upon.
    (f) Unless permission is granted by the Judicial Officer no brief 
shall exceed 50 printed pages double spaced, using 12 point type.
    (g) The Judicial Officer will extend the time to file briefs only 
upon written application for good cause shown. If the appeal brief or 
brief in support of exceptions is not filed within the time prescribed, 
the defaulting party may be deemed to have abandoned the appeal or 
waived the exceptions, and the initial or tentative decision shall 
become the final agency decision.



Sec. 952.26  Judicial Officer.

    (a) The Judicial Officer is authorized:
    (1) To act as presiding officer;
    (2) To render tentative decisions;
    (3) To render final agency decisions;
    (4) To issue Postal Service orders for the Postmaster General;
    (5) To refer the record in any proceeding to the Postmaster General 
or the Deputy Postmaster General for final agency decision;
    (6) To remand a case to the presiding officer for consideration; 
and,
    (7) To revise or amend these rules of practice.
    (b) In determining appeals from initial decisions or exceptions to 
tentative decisions, the entire official record will be considered 
before a final agency decision is rendered. Before rendering a final 
agency decision, the Judicial Officer may order the hearing reopened for 
the presentation of additional evidence by the parties.



Sec. 952.27  Motion for reconsideration.

    A party may file a motion for reconsideration of a final agency 
decision within 10 days after receiving it or within such longer period 
as the Judicial Officer may order. Each motion for reconsideration shall 
be accompanied by a brief clearly setting forth the points of fact and 
of law relied upon in support of said motion.



Sec. 952.28  Orders.

    (a) If an order is issued which prohibits delivery of mail to 
Respondent it shall be incorporated in the record of the proceeding. The 
Recorder shall cause notice of the order to be published in the Postal 
Bulletin and cause the order to be transmitted to such postmasters and 
other officers and employees of the Postal Service as may be required to 
place the order into effect.
    (b) If an order is issued which requires Respondent to cease and 
desist from using certain representations for the purpose of obtaining 
money or property through the mail, it shall be incorporated in the 
record of the proceeding and a copy thereof shall be served upon 
Respondent or his or her or its agent by certified mail or by personal 
service, or if no person can be found to accept service, service shall 
be accomplished by ordinary mail to the last known address of Respondent 
or his or her or its agent. If service is not accomplished by certified 
mail, a statement, showing the time and place of delivery, signed by the 
postal employee who delivered the order, shall be forwarded to the 
Recorder.



Sec. 952.29  Modification or revocation of orders.

    A party against which an order or orders have been issued may file 
an application for modification or revocation thereof. The Recorder 
shall transmit a copy of the application to the Chief Postal Inspector 
or his or her designee, who shall file a written reply within 10 days 
after filing or such other period as the Judicial Officer may order. A 
copy of the reply shall be sent to the applicant by the Recorder. 
Thereafter an order granting or denying such application will be issued 
by the Judicial Officer.



Sec. 952.30  Supplemental orders.

    When the Chief Postal Inspector or his or her designee, or the Chief 
Postal Inspector's designated representative shall have reason to 
believe that a person is evading or attempting to evade the provisions 
of any such orders by conducting the same or a similar enterprise under 
a different name or at a different address, he or she may file a 
petition with accompanying evidence setting forth the alleged evasion or 
attempted evasion and requesting the issuance of a supplemental order or 
orders against the name or names allegedly used. Notice shall then be 
given by the Recorder to the person that the

[[Page 275]]

order has been requested and that an answer may be filed within 10 days 
of the notice. The Judicial Officer, for good cause shown, may hold a 
hearing to consider the issues in controversy, and shall, in any event, 
render a final decision granting or denying the supplemental order or 
orders.



Sec. 952.31  Computation of time.

    A designated period of time under these rules excludes the day the 
period begins, and includes the last day of the period unless the last 
day is a Saturday, Sunday, or legal holiday, in which event the period 
runs until the close of business on the next business day.



Sec. 952.32  Official record.

    The hearing transcript together with all pleadings, orders, 
exhibits, briefs and other documents filed in the proceeding shall 
constitute the official record of the proceeding.



Sec. 952.33  Public information.

    The Librarian of the Postal Service maintains for public inspection 
in the Library copies of all initial, tentative and final agency 
decisions and orders. The Recorder maintains the complete official 
record of every proceeding.



Sec. 952.34  Ex parte communications.

    The provisions of 5 U.S.C. 551(14), 556(d), and 557(d) prohibiting 
ex parte communications apply to proceedings under these rules of 
practice.



PART 953_RULES OF PRACTICE IN PROCEEDINGS RELATIVE TO MAILABILITY--Table
of Contents



Sec.
953.1 Authority for rules.
953.2 Initiation.
953.3 Appeal.
953.4 Service of notice; Reply; Motion for summary judgment.
953.5 Hearings.
953.6 Compromise and informal dispositions.
953.7 Default; Appearances.
953.8 Location of hearing.
953.9 Change of place of hearing.
953.10 Presiding officers.
953.11 Proposed findings of fact and conclusions of law.
953.12 Initial decision.
953.13 Appeal from initial decision.
953.14 Final Agency decision.
953.15 Expedition.
953.16 Disposition.
953.17 Ex parte communications.

    Authority: 39 U.S.C. 204, 401.

    Source: 59 FR 31538, June 20, 1994, unless otherwise noted.



Sec. 953.1  Authority for rules.

    These rules of practice are issued by the Judicial Officer of the 
U.S. Postal Service pursuant to authority delegated by the Postmaster 
General.



Sec. 953.2  Initiation.

    Mailability proceedings are initiated upon the filing of a written 
appeal with the Recorder, Judicial Officer Department, U.S. Postal 
Service, 2101 Wilson Boulevard, Suite 600, Arlington, VA 22201-3078.

[63 FR 66050, Dec. 1, 1998]



Sec. 953.3  Appeal.

    The appeal shall:
    (a) Identify the appellant;
    (b) Describe or be accompanied by a copy of the determination or 
ruling being appealed;
    (c) Describe the character or content of the matter the appellant 
wishes to have carried and delivered by the U.S. Postal Service;
    (d) Request review of the determination or ruling, specifying each 
and every reason why the appellant believes the determination or ruling 
should be reversed;
    (e) Indicate whether the appellant desires to have an oral hearing 
or, instead, to have the case decided solely on the basis of the written 
record (i.e., the appeal, the General Counsel's or Chief Postal 
Inspector's or his or her designee's reply reply, and any documents 
submitted by the parties pursuant to an order of the presiding officer); 
and
    (f) Bear the signature, typed or printed name, title, business 
address, and telephone number of any attorney at law representing the 
appellant in bringing the appeal, and of each individual appellant or, 
if the appellant is a partnership, corporation, limited liability 
company, or unincorporated association, of the managing partner, chief 
executive officer, chief operating

[[Page 276]]

officer, or other officer authorized to bind the organization.

[59 FR 31538, June 20, 1994, as amended at 71 FR 53972, Sept. 13, 2006]



Sec. 953.4  Service of notice; Reply; Motion for summary judgment.

    (a) Service of notice. (1) Upon receiving the appeal, the Recorder 
shall issue a notice specifying that the Postal Service General 
Counsel's or Chief Postal Inspector's or his or her designee's reply 
shall be filed within 15 days of receipt of the notice; and the time and 
place of the hearing (if one was requested).
    (2) The Recorder shall promptly serve this notice on the parties as 
follows:
    (i) The notice, with a copy of the appeal, shall be sent to the 
General Counsel or the Chief Postal Inspector or his or her designee at 
Postal Service headquarters.
    (ii) When the appellant's address is within the United States, the 
notice, with a copy of the appeal, shall be sent to the postmaster at 
the office that delivers mail to the appellant's address. The postmaster 
shall be instructed that, acting personally or through a supervisory 
employee or a postal inspector, he or she is to serve these documents on 
the appellant. If the appellant cannot be found within 3 days, the 
postmaster shall send these documents to the appellant by ordinary mail 
and forward a statement to the Recorder that is signed by the delivering 
employee and that specifies the time and place of delivery.
    (iii) When the appellant's address is outside the United States, the 
notice, with a copy of the appeal, shall be sent to the appellant by 
registered airmail, return receipt requested. A written statement by the 
Recorder, noting the time and place of mailing, shall be accepted as 
proof of service in the event a signed and dated return receipt is not 
received.
    (b) Reply. The General Counsel or the Chief Postal Inspector or his 
or her designee shall file a written reply, in triplicate, with the 
Recorder, within the aforementioned 15-day period or any extension 
granted by the presiding officer for good cause shown. If the General 
Counsel's or the Chief Postal Inspector's or his or her designee's reply 
fails to address any allegation in the appeal, that allegation shall be 
deemed admitted.
    (c) Motion for summary judgment. Upon motion of either the General 
Counsel, the Chief Postal Inspector, or his or her designee, or the 
appellant, or on the presiding officer's own initiative, the presiding 
officer may find that the appeal and answer present no genuine and 
material issues of fact requiring an evidentiary hearing, and thereupon 
may render an initial decision upholding or reversing the determination 
or ruling. The initial decision shall become the final Agency decision 
if a timely appeal is not taken.

[59 FR 31538, June 20, 1994, as amended at 71 FR 53972, Sept. 13, 2006]



Sec. 953.5  Hearings.

    (a) In general, admissibility of evidence at hearings conducted 
under this part hinges on relevancy and materiality. However, relevant 
evidence may be excluded if its probative value is substantially 
outweighed by the danger of unfair prejudice, or by considerations of 
undue delay, or by needless presentation of cumulative evidence. 
Testimony shall be given under oath or affirmation, and witnesses are 
subject to cross-examination. Stipulations of fact are encouraged and 
may be received in evidence.
    (b) Objections to the admission or exclusion of evidence shall be in 
short form, stating the grounds of objections relied upon. The 
transcript shall not include argument or debate thereon except as 
ordered by the presiding officer. Rulings on such objections shall be a 
part of the transcript.
    (c) Formal exceptions to the rulings of the presiding officer made 
during the course of the hearing are unnecessary. For all purposes for 
which an exception otherwise would be taken, it is sufficient that a 
party, when the ruling of the presiding officer is made or sought, makes 
known the action he desires the presiding officer to take or his 
objection to an action taken, and his grounds therefor.



Sec. 953.6  Compromise and informal dispositions.

    Either party may request the other to consider informal disposition 
of any

[[Page 277]]

question of mailability, and the scheduled hearing date may be postponed 
by the presiding officer for such period of time as may be necessary to 
accommodate settlement discussions between the parties.



Sec. 953.7  Default; Appearances.

    If a timely reply to the appeal is not filed, the presiding officer 
shall refer the appeal to the Judicial Officer, who may find that the 
General Counsel or the Chief Postal Inspector or his or her designee is 
in default. Whenever the General Counsel or the Chief Postal Inspector 
or his or her designee has been deemed to be in default, the Judicial 
Officer shall take whatever action on the appeal he deems appropriate. 
If an oral evidentiary hearing is to be held, the appellant may appear 
at the hearing in person or by counsel. If either party fails to appear 
at the hearing, the presiding officer shall receive the evidence of the 
party appearing and render a decision.

[59 FR 31538, June 20, 1994, as amended at 71 FR 53972, Sept. 13, 2006]



Sec. 953.8  Location of hearing.

    Unless otherwise ordered by the presiding officer, the hearing shall 
be held at 2101 Wilson Boulevard, Suite 600, Arlington, VA 22201-3078, 
on the date set in the notice.

[63 FR 66050, Dec. 1, 1998]



Sec. 953.9  Change of place of hearing.

    (a) Not later than the date fixed for the filing of the reply, a 
party may file a motion that the scheduled hearing be held at a place 
other than that designated in the notice. The motion shall include a 
supporting statement outlining:
    (1) The evidence to be offered in such place;
    (2) The names and addresses of the witnesses who will testify; and
    (3) The reasons why such evidence cannot be presented in Arlington, 
VA.
    (b) In ruling on the motion, the presiding officer shall consider 
the convenience and necessity of the parties and the relevancy of the 
evidence to be offered.

[59 FR 31538, June 20, 1994, as amended at 63 FR 66050, Dec. 1, 1998]



Sec. 953.10  Presiding officers.

    The presiding officer at any hearing shall be an Administrative Law 
Judge qualified in accordance with law (5 U.S.C. 3105) and assigned by 
the Judicial Officer (39 U.S.C. 204), or the Judicial Officer, may at 
his discretion, elect to preside at the reception of evidence. The 
Judicial Officer shall assign cases to Administrative Law Judges upon 
rotation if practicable.



Sec. 953.11  Proposed findings of fact and conclusions of law.

    Proposed findings of fact and conclusions of law shall be submitted 
orally or in writing at the conclusion of the hearing, or otherwise, as 
ordered by the presiding officer.



Sec. 953.12  Initial decision.

    Unless given orally at the conclusion of the hearing, the 
Administrative Law Judge shall render an initial decision as 
expeditiously as practicable after the conclusion of the hearing and the 
receipt of the proposed findings and conclusions, if any. The initial 
decision shall become the decision of the Postal Service if an appeal is 
not perfected. When the Judicial Officer presides at the hearing, his 
powers shall include those of an Administrative Law Judge, but the 
Judicial Officer may render either an initial or final decision. 
Exceptions may be filed to an initial decision rendered by the Judicial 
Officer in accordance with Sec. 953.13.



Sec. 953.13  Appeal from initial decision.

    Either party may file exceptions in a brief on appeal to the 
Judicial Officer within 5 days after receipt of the initial decision 
unless additional time is granted. A reply brief may be filed within 5 
days after the receipt of the appeal brief by the opposing party.



Sec. 953.14  Final Agency decision.

    The Judicial Officer shall render a final Agency decision. The 
decision shall be served upon the parties and the postal official having 
custody of any mail detained pursuant to the determination or ruling.

[[Page 278]]



Sec. 953.15  Expedition.

    For the purpose of further expedition, either party may move to have 
the hearing held at an earlier date than that specified in the notice. 
Either party may also move to have the initial decision (if an 
Administrative Law Judge or the Judicial Officer is presiding) or the 
final Agency decision (if the Judicial Officer is presiding) rendered 
orally at the conclusion of the hearing. The presiding officer may grant 
or deny any such motion. The parties may, with the concurrence of the 
Judicial Officer, agree to waive any of the procedures established in 
these rules.



Sec. 953.16  Disposition.

    Mail matter found to be nonmailable shall be held at the post office 
where detained for a period of 15 days from the date of the Postal 
Service decision, unless that period is extended by the Judicial 
Officer. During this holding period, the appellant may apply for the 
withdrawal of the matter. If any such application is made, the General 
Counsel or Chief Postal Inspector or his or her designee shall be given 
notice and the opportunity to oppose the application. Upon the 
expiration of the holding period with no application having been made, 
the Judicial Officer shall order that the matter be disposed of in 
accordance with 39 U.S.C. 3001(b). If a timely application is made, the 
Judicial Officer shall consider the application and any reasons advanced 
by the General Counsel or Chief Postal Inspector or his or her designee 
for denying the application. The Judicial Officer shall thereafter order 
either that the matter be returned to the applicant or that it be 
disposed of in accordance with 39 U.S.C. 3001(b).

[59 FR 31538, June 20, 1994, as amended at 71 FR 53972, Sept. 13, 2006]



Sec. 953.17  Ex parte communications.

    The provisions of 5 U.S.C. 551(14), 556(d), and 557(d) prohibiting 
ex parte communications are made applicable to proceedings under these 
rules of practice.



PART 954_RULES OF PRACTICE IN PROCEEDINGS RELATIVE TO THE DENIAL, 
SUSPENSION, OR REVOCATION OF PERIODICALS MAIL PRIVILEGES--Table of 

Contents



Sec.
954.1 Authority for rules.
954.2 Scope of rules.
954.3 Informal dispositions.
954.4 Office business hours.
954.5 Application.
954.6 Revocation or suspension.
954.7 Failure to appeal proposed action.
954.8 Pleading.
954.9 Default.
954.10 Intervention or other participation.
954.11 Hearings.
954.12 Change of place of hearing.
954.13 Appearances.
954.14 Presiding officers.
954.15 Judicial Officer.
954.16 Procedure.
954.17 Transcript.
954.18 Proposed findings and conclusions.
954.19 Initial decision.
954.20 Appeals.
954.21 Motion for reconsideration.
954.22 Continuances.
954.23 Computation of time.
954.24 Official record.
954.25 Public information.
954.26 Ex parte communications.

    Authority: 39 U.S.C. 204, 401.

    Source: 36 FR 11567, June 16, 1971, unless otherwise noted.



Sec. 954.1  Authority for rules.

    These rules of practice are issued by the Judicial Officer of the 
U.S. Postal Service pursuant to authority delegated by the Postmaster 
General.



Sec. 954.2  Scope of rules.

    The rules of practice shall apply to all Postal Service proceedings 
concerning applications, denials, suspensions and revocations of 
Periodicals mailing privileges arising under former title 39 U.S.C. 
4351, 4352, 4353, 4354, 4355, 4356, and 4369 as continued by sec. 3 of 
the Postal Reorganization Act (Pub. L. 91-375).

[36 FR 11567, June 16, 1971, as amended at 62 FR 66998, Dec. 23, 1997]



Sec. 954.3  Informal dispositions.

    These rules do not preclude the informal dispositions of Periodicals 
mailing

[[Page 279]]

privilege matters before or after institution of proceedings.

[36 FR 11567, June 16, 1971, as amended at 62 FR 66998, Dec. 23, 1997]



Sec. 954.4  Office business hours.

    The offices of the officials mentioned in these rules are located at 
2101 Wilson Boulevard, Suite 600, Arlington, VA 22201-3078 and are open 
Monday through Friday from 8:15 a.m. to 4:45 p.m.

[63 FR 66050, Dec. 1, 1998]



Sec. 954.5  Application.

    A publisher may file an application for Periodicals mailing 
privileges. (See Sec. E213 of the Domestic Mail Manual.) An authorized 
administrative official of the Postal Service (hereinafter called ``the 
authorized official'') rules upon all applications. If he or she denies 
the application he or she shall notify the publisher specifying the 
reasons for his or her denial and attaching a copy of these rules. 
Before taking action on an application, the authorized official may call 
upon the publisher for additional information or evidence to support or 
clarify the application. Failure of the publisher to furnish such 
information or evidence may be cause for the authorized official to deny 
the application as incomplete or, on its face, not fulfilling the 
requirements for entry.

[36 FR 11567, June 16, 1971, as amended at 38 FR 17217, June 29, 1973; 
42 FR 30504, June 15, 1977; 62 FR 66998, Dec. 23, 1997]



Sec. 954.6  Revocation or suspension.

    When the authorized official determines that a publication is no 
longer entitled to Periodicals mailing privileges, he or she shall issue 
a ruling of suspension or revocation to the publisher at the last known 
address of the office of publication stating the reasons and attaching a 
copy of these rules.

[36 FR 11567, June 16, 1971, as amended at 38 FR 17217, June 29, 1973; 
62 FR 66998, Dec. 23, 1997]



Sec. 954.7  Failure to appeal proposed action.

    A ruling of the authorized official shall become final upon failure 
of the publisher to file a petition in accordance with the requirements 
of Sec. 954.8(b).

[36 FR 11567, June 16, 1971, as amended at 38 FR 17217, June 29, 1973]



Sec. 954.8  Pleading.

    (a) Place of filing. Parties shall file an original and three copies 
of all documents of record, unless otherwise ordered by the presiding 
officer with the Recorder of the Postal Service, who shall cause copies 
to be delivered to the other parties and to the presiding officer. 
Service is ordinarily made on the private parties by certified mail and 
delivery is deemed complete when a document or notice of its arrival is 
left at the designated address. The Recorder shall maintain a docket and 
the files in all proceedings.
    (b) Petition. A publisher may appeal from a ruling of the authorized 
official by filing a petition within 15 days of the receipt of the 
ruling unless the time is extended by the authorized official. The 
petition shall state the reasons why the publisher (designated 
``Petitioner'' in the proceeding) believes the ruling of the authorized 
official is erroneous and shall provide the address at which documents 
may be served on the Petitioner. The petition shall also allege facts 
showing compliance with each provision of law or regulation on which the 
publisher's claim to Periodicals mail privileges is based. The publisher 
shall attach to his or her petition a copy of the letter of the 
authorized official denying, suspending or revoking Periodicals mail 
privileges.
    (c) Notice of hearing. Upon receipt of the petition the Recorder 
shall set a date for the hearing and issue a notice of hearing to the 
parties stating the time and place of the hearing, the date for filing 
an answer, and the name of the presiding officer.
    (d) Answer. The authorized official (designated the ``Respondent'' 
in the proceeding) shall answer the petition within 15 days after filing 
and admit or deny each allegation of the petition.
    (e) Amendment. An amendment of a pleading may be offered by any 
party at any time prior to the close of the hearing. If the presiding 
officer deems

[[Page 280]]

it appropriate to permit the amendment of a pleading, he or she may 
impose such conditions, by way of continuance of the hearing date or 
otherwise, as he or she considers necessary to assure a fair hearing.

[36 FR 11567, June 16, 1971, as amended at 38 FR 17217, June 29, 1973; 
62 FR 66998, Dec. 23, 1997]



Sec. 954.9  Default.

    If a publisher fails to appear at the hearing, the presiding officer 
may: (a) Dismiss the petition; (b) order the petitioner to show cause 
within 30 days from the date of the order why an order of dismissal 
should not be entered, and thereafter enter such order as the presiding 
officer deems to be appropriate. If the petition is dismissed by order 
of an Administrative Law Judge, the dismissal may be appealed to the 
Judicial Officer within 15 days from the date of the order.



Sec. 954.10  Intervention or other participation.

    To intervene or otherwise participate in a proceeding, any person 
may file a timely application in accordance with Sec. 954.8(a). A 
timely application is one which will not unduly delay the proceeding. 
The application shall state whom the potential intervenor represents, 
his or her interest, the extent to which he or she desires to 
participate, and the evidence he or she seeks to introduce. The 
presiding officer shall fix the time within which the parties shall 
answer the application. The presiding officer shall grant or deny the 
application on such terms and conditions as he or she deems appropriate. 
In so doing the presiding officer will consider, among other things, 
whether intervention or other participation is consistent with the 
timely and proper adjudication of the rights of the original parties.

[31 FR 5198, Mar. 31, 1966. Redesignated at 31 FR 16270, Dec. 20, 1966; 
62 FR 66998, Dec. 23, 1997]



Sec. 954.11  Hearings.

    Hearings are held at 2101 Wilson Boulevard, Suite 600, Arlington, VA 
22201-3078, or other locations designated by the presiding officer.

[63 FR 66050, Dec. 1, 1998]



Sec. 954.12  Change of place of hearing.

    Not later than the date fixed for the filing of the answer, a party 
may file a request that a hearing be held to receive evidence in his or 
her behalf at a place other than that designated for hearing in the 
notice. He or she shall support his request with a statement setting 
forth:
    (a) The evidence to be offered in such place;
    (b) The names and addresses of the witnesses who will testify;
    (c) The reasons why such evidence cannot be produced at Arlington, 
VA.

The presiding officer shall give consideration to the convenience and 
necessity of the parties and the relevancy of the evidence to be 
offered.

[36 FR 11567, June 16, 1971, as amended at 62 FR 66998, Dec. 23, 1997; 
63 FR 66050, Dec. 1, 1998]



Sec. 954.13  Appearances.

    (a) The General Counsel of the Postal Service or a member of his or 
her staff designated by him or her shall represent the authorized 
official.
    (b) A publisher or intervenor may appear and be heard in person or 
by attorney. Attorneys may practice before the Postal Service in 
accordance with applicable rules issued by the Judicial Officer. See 
part 951 of this chapter.
    (c) An attorney representing a publisher or intervenor shall file a 
written authorization from the publisher or intervenor before he or she 
may participate in the proceeding. The publisher or intervenor must 
promptly file a notice of change of attorneys.
    (d) When a publisher or intervenor is represented by an authorized 
attorney all subsequent pleadings shall be served upon the attorney.

[36 FR 11567, June 16, 1971, as amended at 62 FR 66998, Dec. 23, 1997]



Sec. 954.14  Presiding officers.

    (a) The Chief Administrative Law Judge shall assign each case to an 
Administrative Law Judge qualified in accordance with law to preside 
over the

[[Page 281]]

hearing. Such assignments shall be made, so far as practical, in 
rotation.
    (b) The presiding officer shall have authority to:
    (1) Administer oaths and affirmations;
    (2) Examine witnesses;
    (3) Rule upon matters of evidence and procedure;
    (4) Order any pleading amended upon motion of a party at any time 
prior to the close of the hearing;
    (5) Maintain discipline and decorum and exclude from the hearing any 
person acting in an indecorous manner;
    (6) Require the filing of briefs on any matter upon which he or she 
is required to rule;
    (7) Order prehearing conferences for the settlement or 
simplification of issues by consent of the parties;
    (8) Order the proceeding reopened at any time prior to his or her 
decision for the receipt of additional evidence;
    (9) Render an initial decision.

[36 FR 11567, June 16, 1971, as amended at 38 FR 17217, June 29, 1973; 
38 FR 20263, July 30, 1973; 62 FR 66998, Dec. 23, 1997]



Sec. 954.15  Judicial Officer.

    The Judicial Officer is authorized (a) to act as presiding officer 
at hearings and (b) to render a final Postal Service Decision for the 
Postmaster General. On appeal from an Initial Decision of an 
Administrative Law Judge, the Judicial Officer will consider the entire 
record including the initial decision and the exceptions to that 
decision. Before any final agency decision has been rendered, the 
Judicial Officer may order the hearing reopened for the presiding 
officer to take additional evidence.



Sec. 954.16  Procedure.

    (a) Evidence. The general rules of evidence governing civil 
proceedings in matters not involving trial by jury in the courts of the 
United States apply. The rules may be relaxed to the extent that the 
presiding officer may deem proper to insure an adequate and fair 
hearing. The presiding officer may exclude irrelevant or repetitious 
evidence.
    (b) Subpoenas. The Postal Service is not authorized to issue 
subpoenas.
    (c) Fees. The Postal Service does not pay fees and expenses for 
witnesses of, or depositions requested by, the publisher or intervenor.
    (d) Depositions. Depositions may be taken as follows:
    (1) Not later than 5 days after the filing of the authorized 
officials's answer, any party may file application with the presiding 
officer for the taking of testimony by deposition. In support of such 
application the applicant shall submit under oath or affirmation a 
statement setting out the reasons why such testimony should be taken by 
deposition, the time and the place, and the name and address of the 
witness whose deposition is desired, the subject matter of the testimony 
of each witness, its relevancy, and the name and address of the person 
before whom the deposition is to be taken.
    (2) If the application is granted, the order for the taking of the 
deposition will specify the time and place thereof, the name of the 
witness, the person before whom the deposition is to be taken and any 
other necessary information.
    (3) Each witness testifying upon deposition shall be duly sworn by 
the deposition officer and the adverse party shall have the right to 
cross-examine. The questions and answers together with all objections, 
shall be reduced to writing and, unless waived by stipulation of the 
parties, shall be read to and subscribed by the witness in the presence 
of the deposition officer who shall certify it in the usual form. The 
deposition officer shall file the testimony taken by deposition as 
directed in the order. All objections made at the time of examination 
shall be noted by the deposition officer and the evidence objected to 
shall be taken subject to the objections. In lieu of participating in 
the oral examination, a party may transmit written interrogatories to 
the deposition officer, who shall propound them to the witness and 
record the answers verbatim. Objections to relevancy or materiality of 
testimony, or to errors and irregularities occurring at the oral 
examination in the manner of taking the deposition, in the form of the 
questions or answers, in the oath or affirmation, or in the conduct of 
the parties and errors of any kind which might be obviated, cured or 
removed if

[[Page 282]]

promptly presented, are waived unless timely objection is made at the 
taking of the deposition.
    (4) At the hearing any part or all of the deposition may be offered 
in evidence by any party who was present or represented at the taking of 
the deposition or who had notice thereof. If the deposition is not 
offered and received in evidence, it shall not be considered as a part 
of the record in the proceeding. The admissibility of depositions or 
parts thereof shall be governed by the rules of evidence.
    (5) The party requesting the deposition shall pay all fees required 
to be paid to witnesses and the deposition officer, and shall provide an 
original and one copy of the deposition for the official record, and 
shall serve one copy upon the opposing party.
    (6) Within the United States or within a territory or insular 
possession subject to the dominion of the United States, depositions may 
be taken before an officer authorized to administer oaths by the laws of 
the United States or of the place where the examination is held; within 
a foreign country, depositions may be taken before a secretary of an 
embassy or legation, consul general, vice consul or consular agent of 
the United States, or any other person designated in the order for the 
taking of a deposition.
    (7) Depositions may also be taken and submitted on written 
interrogatories in substantially the same manner as depositions taken by 
oral examination. When a deposition is taken upon written 
interrogatories and cross-interrogatories, none of the parties shall be 
present or represented, and no person, other than the witness, a 
stenographic reporter, and the deposition officer shall be present at 
the examination of the witness, which fact shall be certified by the 
officer, who shall propound the interrogatories and cross-
interrogatories to the witness in their order and reduce the testimony 
to writing in the witness' own words.

[36 FR 11567, June 16, 1971, as amended at 62 FR 66998, Dec. 23, 1997]



Sec. 954.17  Transcript.

    (a) A contract reporter of the Postal Service under the supervision 
of the presiding officer shall report hearings. The reporter shall 
supply the parties with copies of the transcript at rates not to exceed 
those fixed by contract between the Postal Service and the reporter.
    (b) Changes in the official transcript may be made only when they 
involve substantial errors. A party may file a motion for correction of 
the official transcript within 10 days after his or her receipt of the 
transcript or any part thereof. Other parties shall, within such time as 
may be specified by the presiding officer, notify the presiding officer 
in writing if they object to the requested corrections. Failure of a 
party to interpose timely objection to a proposed correction may be 
considered by the presiding officer to be concurrence. The presiding 
officer shall then specify the corrections to be made in the transcript. 
He or she may on his or her own initiative order corrections in the 
transcript after notice to the parties subject to their objection.

[36 FR 11567, June 16, 1971, as amended at 62 FR 66998, Dec. 23, 1997]



Sec. 954.18  Proposed findings and conclusions.

    (a) A party to a proceeding may submit proposed findings of fact and 
conclusions of law to the presiding officer. The presiding officer shall 
determine whether they shall be oral or written. The presiding officer 
may require parties to a proceeding to submit proposed findings of fact 
and conclusions of law with supporting reasons. When the proposed 
findings and conclusions are not submitted orally they shall be filed 
within 15 days after delivery of the official transcript to the 
Recorder. The Recorder shall notify the parties of the filing date which 
shall be the same for both parties. If not submitted by that date, the 
findings and conclusions will not be considered or included in the 
record.
    (b) Except when presented orally, proposed findings of fact and 
conclusions of law shall be set forth in numbered paragraphs and shall 
state with particularity all evidentiary facts in the record with 
appropriate citations to the transcript or exhibits relied

[[Page 283]]

upon to support the conclusions proposed. Each proposed conclusion shall 
be separately stated.

[36 FR 11567, June 16, 1971, as amended at 62 FR 66998, Dec. 23, 1997]



Sec. 954.19  Initial decision.

    (a) Upon request of either party the presiding officer may render an 
oral initial decision at the close of the hearing when the nature of the 
case and the public interest warrant. If a party desires an oral initial 
decision he or she shall notify the presiding officer and the opposing 
party at least 5 days prior to the date set for hearing. Parties may 
then submit proposed findings and conclusions orally or in writing at 
the conclusion of the hearing.
    (b) If an oral initial decision is not rendered, the presiding 
officer shall render a written initial decision with all due speed after 
the parties have submitted all posthearing material. The initial 
decision shall become the final agency decision unless it is appealed.
    (c) The initial decision shall include findings upon all material 
issues of fact and law presented on the record and the reasons for those 
findings.

[36 FR 11567, June 16, 1971, as amended at 62 FR 66998, Dec. 23, 1997]



Sec. 954.20  Appeals.

    (a) A party may appeal to the Judicial Officer from an initial 
decision by filing exceptions in a brief on appeal within 15 days from 
the receipt of a written or oral initial decision.
    (b) The time for the filing of the reply brief is 10 days after 
receipt of the appeal brief. No additional briefs shall be received 
unless requested by the Judicial Officer.
    (c) Appeal briefs shall contain the following matter in the order 
indicated:
    (1) A subject index of the matters presented with page references;
    (2) A table of cases alphabetically arranged;
    (3) A list of statutes and texts cited with page references;
    (4) A concise abstract or statement of the case;
    (5) Numbered exceptions to the findings and conclusions of the 
presiding officer and the reasons for the exceptions.
    (d) Reply briefs shall contain paragraphs (c) (1), (2), and (3) of 
this section and the reasons for opposing the exceptions.

[36 FR 11567, June 16, 1971, as amended at 38 FR 17217, June 29, 1973]



Sec. 954.21  Motion for reconsideration.

    Within 10 days from the date thereof, or such longer period as may 
be fixed by the Judicial Officer, either party may file a motion for 
reconsideration of a final Agency decision.



Sec. 954.22  Continuances.

    For good cause shown, continuances or extensions may be granted by 
the presiding officer. Similar action may be taken by the Judicial 
Officer when the proceeding is on appeal.



Sec. 954.23  Computation of time.

    A designated period of time under these rules excludes the day the 
period begins, and includes the last day of the period unless the last 
day is a Saturday, Sunday, or holiday, in which event the period runs 
until the close of business on the next working day.



Sec. 954.24  Official record.

    The pleadings, orders, exhibits, transcript of testimony, briefs, 
decisions and other documents filed in the proceeding constitute the 
official record of the proceeding.



Sec. 954.25  Public information.

    The Librarian of the Postal Service maintains for public inspection 
in the Library copies of all initial and final Agency decisions. The 
Recorder of the Postal Service maintains a complete official record of 
every proceeding. A person may examine a record upon authorization by 
the Judicial Officer.

[36 FR 11567, June 16, 1971, as amended at 62 FR 66998, Dec. 23, 1997]



Sec. 954.26  Ex parte communications.

    The provisions of 5 U.S.C. 551(14), 556(d) and 557(d) prohibiting ex 
parte communications are made applicable

[[Page 284]]

to proceedings under these rules of practice.

[42 FR 5358, Jan. 28, 1977]



PART 955_RULES OF PRACTICE BEFORE THE POSTAL SERVICE BOARD OF CONTRACT
APPEALS--Table of Contents



Sec.
955.1 Jurisdiction, procedure, service of documents.
955.2 Notice of appeals.
955.3 Contents of notice of appeal.
955.4 Forwarding of appeals.
955.5 Preparation, contents, organization, forwarding, and status of 
          appeal file.
955.6 Motions.
955.7 Pleadings.
955.8 Amendments of pleadings or record.
955.9 Hearing request.
955.10 Prehearing briefs.
955.11 Prehearing or presubmission conference.
955.12 Submission without a hearing.
955.13 Optional Small Claims (Expedited) and Accelerated Procedures.
955.14 Settling the record.
955.15 Discovery.
955.16 Interrogatories to parties, admission of facts, and production 
          and inspection of documents.
955.17 Depositions.
955.18 Hearings--where and when held.
955.19 Notice of hearings.
955.20 Unexcused absence of a party.
955.21 Nature of hearings.
955.22 Examination of witnesses.
955.23 Copies of papers, withdrawal of exhibits.
955.24 Posthearing briefs.
955.25 Transcript of proceedings.
955.26 Representation of the parties.
955.27 Withdrawal of attorney.
955.28 Suspension.
955.29 Decisions.
955.30 Motion for reconsideration.
955.31 Dismissal without prejudice.
955.32 Dismissal for failure to prosecute.
955.33 Ex parte communications.
955.34 Sanctions.
955.35 Subpoenas.
955.36 Effective dates and applicability.

    Authority: 39 U.S.C. 204, 401; 41 U.S.C. 7101-7109.

    Source: 74 FR 20592, May 5, 2009, unless otherwise noted.



Sec. 955.1  Jurisdiction, procedure, service of documents.

    (a) Jurisdiction for considering appeals. Pursuant to the Contract 
Disputes Act of 1978, 41 U.S.C. 7101-7109, the Postal Service Board of 
Contract Appeals (Board) has jurisdiction to consider and decide any 
appeal from a decision of a contracting officer of the United States 
Postal Service or the Postal Regulatory Commission relative to a 
contract made by either. In addition the Board has jurisdiction over 
other matters assigned to it by the Postmaster General, and over matters 
otherwise authorized by applicable law.
    (b) Organization and location of the Board. (1) The Board is located 
at 2101 Wilson Boulevard, Suite 600, Arlington, Virginia 22201-3078. The 
Board's telephone number is (703) 812-1900, and its Web site is http://
www.usps.gov/judicial. The Board's fax number is (703) 812-1901.
    (2) The Board consists of the Judicial Officer as Chairman, the 
Associate Judicial Officer as Vice Chairman, and the Judges of the 
Board, as appointed by the Postmaster General in accordance with the 
Contract Disputes Act of 1978, 41 U.S.C. 7101-7109. All members of the 
Board shall meet the qualifications established in the Contract Disputes 
Act. In general, appeals are assigned to a panel of at least three 
members of the Board. The decision of a majority of the panel 
constitutes the decision of the Board.
    (c) Board procedures-- (1) Rules. Appeals to the Board are handled 
in accordance with the rules of the Board.
    (2) Administration and interpretation of rules. These rules will be 
interpreted so as to secure a just and inexpensive determination of 
appeals without unnecessary delay. Emphasis is placed upon the sound 
administration of these rules in specific cases, because it is 
impracticable to articulate a rule to fit every possible circumstance 
which may be encountered. The Board may consider the Federal Rules of 
Civil Procedure for guidance in construing those Board rules that are 
similar to Federal Rules and for matters not specifically covered 
herein.
    (3) Time, computation, and extensions. (i) All time limitations 
specified for various procedural actions are computed as maximums, and 
are not to be fully exhausted if the action described can be 
accomplished in a lesser period. These time limitations are similarly 
eligible for extension in appropriate circumstances.

[[Page 285]]

    (ii) Except as otherwise provided by law, in computing any period of 
time prescribed by these rules or by any order of the Board, the day of 
the event from which the designated period of time begins to run shall 
not be included, but the last day of the period shall be included unless 
it is a Saturday, Sunday, or a federal holiday in which event the period 
shall run to the end of the next business day. Except as otherwise 
provided in these rules or an applicable order, prescribed periods of 
time are measured in calendar days rather than business days.
    (iii) Requests for extensions of time from either party shall be 
made in writing stating good cause therefor, shall represent that the 
moving party has contacted the opposing party about the request, or made 
reasonable and good faith efforts to do so, and shall indicate whether 
the opposing party consents to the extension. If the request for 
extension of time is filed after the time for taking the required action 
has expired, the request should indicate the reasons for the party's 
failure to have submitted the request before that time expired.
    (4) Place of filings. Unless the Board otherwise directs, pleadings 
and other communications shall be filed with the Recorder of the Board 
at its office at 2101 Wilson Boulevard, Suite 600, Arlington, Virginia 
22201-3078. Generally, and unless otherwise prescribed by law, rule or 
applicable Board order, the Board considers documents filed upon the 
earlier of receipt by the Recorder of the Board during the Board's 
working hours (8:45-4:45) or, if mailed, the date mailed to the Board. A 
United States Postal Service postmark shall be prima facie evidence that 
the document with which it is associated was mailed on the date of the 
postmark.
    (5) Service. Documents shall be served personally or by mail, 
addressed to the party upon whom service is to be made. Copies of 
simultaneous briefs shall be filed directly with the Board for 
distribution and shall not be sent directly by the parties to each 
other. The party filing any other document with the Board shall send a 
copy thereof to the opposing party, by an equally or more expeditious 
means of transmittal, noting on the document filed with the Board, or on 
the transmitting letter, that a copy has been so furnished. The filing 
of a document by fax transmission occurs upon receipt by the Board of 
the entire legible submission by fax. The Board may determine not to 
extend a deadline for filing if the extension is necessary solely 
because the Board's fax machine is busy or otherwise unavailable when a 
filing is due. Submissions filed by fax shall be followed promptly by 
filing by mail.

[74 FR 20592, May 5, 2009, as amended at 76 FR 37660, June 28, 2011]



Sec. 955.2  Notice of appeals.

    Notice of an appeal must be in writing, and the original, together 
with two copies, may be filed with the contracting officer from whose 
decision the appeal is taken, or may be filed directly with the Board. 
The notice of appeal must be mailed or otherwise filed within the time 
specified by applicable law.



Sec. 955.3  Contents of notice of appeal.

    (a) A notice of appeal from a contracting officer's decision should 
indicate that an appeal is thereby intended. It should identify the 
contract by number or other identifying reference, and identify the 
decision from which the appeal is taken, or it should attach a copy of 
the contracting officer's decision. If an appeal is taken from the 
failure of a contracting officer to issue a decision, the notice of 
appeal should describe in detail the claim that the contracting officer 
has failed to decide and/or attach a copy of the claim that the 
contracting officer has failed to decide, and explain that the 
contracting officer has failed to decide the claim as required.
    (b) The notice of appeal should be signed personally by the 
appellant (the contractor taking the appeal), or by an officer of the 
appellant corporation or member of the appellant firm, or by the 
contractor's duly authorized representative or attorney. The complaint 
referred to in Sec. 955.7 may be filed with the notice of appeal, or 
the appellant may designate the notice of appeal as a complaint, if it 
otherwise fulfills the requirements of a complaint.

[[Page 286]]



Sec. 955.4  Forwarding of appeals.

    Upon receipt of a notice of appeal in any form, the contracting 
officer shall indicate thereon the date of mailing (or date of receipt, 
if otherwise conveyed) and within 10 days shall forward said notice of 
appeal to the Board, and shall include a copy of the contracting 
officer's final decision if one has been issued. Following receipt by 
the Board of the notice of an appeal (whether through the contracting 
officer or otherwise), the contractor and contracting officer will be 
advised promptly of its receipt, and the contractor will be furnished a 
copy of these rules.



Sec. 955.5  Preparation, contents, organization, forwarding, and status
of appeal file.

    (a) Duties of the respondent. Within 30 days from receipt of the 
Board's docketing notice, or such other period as the Board may order, 
the respondent's counsel shall file with the Board an appeal file 
consisting of all documents pertinent to the appeal and shall provide a 
copy to the appellant. The appeal file shall include:
    (1) The claim and contracting officer's final decision from which 
the appeal is taken;
    (2) The contract, including pertinent specifications, amendments, 
plans and drawings;
    (3) All correspondence between the parties pertinent to the appeal;
    (4) Transcripts of any testimony taken during the course of 
proceedings, and affidavits or statements of any witnesses on the matter 
in dispute made prior to the filing of the notice of appeal with the 
Board; and
    (5) Any additional information considered pertinent.
    (b) Duties of the appellant. Within 30 days after receipt of a copy 
of the appeal file, the appellant shall supplement the appeal file by 
transmitting to the Board any documents not contained therein considered 
to be pertinent to the appeal, and shall furnish copies of such 
documents to Postal Service counsel.
    (c) Organization of appeal file. Documents in the appeal file or 
supplement, as applicable, may be originals or legible copies thereof, 
and shall be arranged in chronological order where practicable, numbered 
sequentially, tabbed, and indexed to identify the contents. Page 
numbering shall be consecutive and continuous from one document to the 
next, so that the complete file or supplement, as applicable, will 
consist of one set of consecutively numbered pages.
    (d) Lengthy documents. The Board may waive the requirement of 
furnishing to the other party copies of bulky, lengthy, or out-of-size 
documents in the appeal file when a party has shown that doing so would 
impose an undue burden. The party filing with the Board a document as to 
which such a waiver has been granted, shall notify the other party at 
the time of filing that the document is available for inspection at the 
offices of the Board or of the party.
    (e) Status of documents in appeal file. Documents contained in the 
appeal file are considered, without further action by the parties, as 
part of the record upon which the Board will render its decision, unless 
a party objects to the consideration of a particular document. Unless 
otherwise provided by Board order, any such objection shall be made at 
least 10 days prior to a hearing or the date specified for settling the 
record in the event there is no hearing on the appeal. If timely 
objection to a document is made, the Board will rule upon its 
admissibility into the record as evidence in accordance with Sec. Sec. 
955.14 and 955.21.



Sec. 955.6  Motions.

    (a) Any motion addressed to the jurisdiction of the Board shall be 
promptly filed. Oral argument on the motion may be afforded on 
application of either party, in the Board's discretion, or on the 
Board's initiative. The Board may at any time and on its own initiative 
raise the issue of its jurisdiction to proceed with a particular case.
    (b) A motion filed in lieu of an answer shall be filed no later than 
the date on which the answer is required to be filed or such later date 
as may be established by Board order. Any other dispositive motion shall 
be filed as soon as practicable after the grounds therefor are known.

[[Page 287]]

    (c) Motions for summary judgment may be considered by the Board. 
However, the Board may defer ruling on a motion for summary judgment, in 
its discretion, until after a hearing or other presentation of evidence. 
Motions for summary judgment may be filed only when a party believes 
that, based upon uncontested material facts, it is entitled to relief as 
a matter of law. The parties are to consider proceeding by submission of 
the case without a hearing in accordance with Sec. 955.12, in lieu of a 
motion for summary judgment.
    (1) Motions for summary judgment shall include a separate document 
titled Statement of Uncontested Facts, which shall contain in separately 
numbered paragraphs all of the material facts upon which the moving 
party bases its motion and as to which it contends there is no genuine 
issue. This statement shall include references to affidavits, 
declarations and/or documents relied upon to support such statement.
    (2) The opposing party shall file with its opposition a separate 
document titled Statement of Genuine Issues. This document shall 
identify, by reference to specific paragraph numbers in the moving 
party's Statement of Uncontested Facts, those facts as to which the 
opposing party claims there is a genuine issue necessary to be 
litigated. An opposing party shall state the precise nature of its 
disagreement, and support its opposition with references to affidavits, 
declarations and/or documents that demonstrate the existence of a 
genuine dispute.
    (3) The moving party and the non-moving party shall each submit a 
memorandum of law supporting or opposing summary judgment.
    (4) If, despite reasonable efforts, the opposing party cannot 
present facts essential to justify its opposition, the Board may defer 
ruling on the motion to permit affidavits to be obtained or depositions 
to be taken or other discovery to be conducted, or may issue such other 
order as is just. The parties should not expect the Board to search the 
record for evidence in support of either party's position.

[74 FR 20592, May 5, 2009, as amended at 76 FR 37660, June 28, 2011]



Sec. 955.7  Pleadings.

    (a) Appellant. Within 45 days after receipt of notice of docketing 
of the appeal, the appellant shall file with the Board a complaint 
setting forth simple, concise and direct statements of each of its 
claims, alleging the basis, with appropriate reference to contract 
provisions, for each claim, and the dollar amount claimed, and shall 
serve the respondent with a copy. This pleading shall fulfill the 
generally recognized requirements of a complaint although no particular 
form or formality is required. Upon the appellant's request or on the 
Board's own initiative, the appellant's claim, notice of appeal or other 
document may be deemed to constitute the complaint if in the opinion of 
the Board the issues before the Board are sufficiently defined.
    (b) Respondent. Within 30 days from receipt of said complaint, or 
the aforesaid notice from the Board, the respondent shall prepare and 
file with the Board an answer thereto, setting forth simple, concise, 
and direct statements of the respondent's defenses to each claim 
asserted by the appellant, and shall serve the appellant with a copy. 
This pleading shall fulfill the generally recognized requirements of an 
answer, and shall set forth any affirmative defenses or counterclaims as 
appropriate. Should the answer not be filed within the time required, 
the Board may, in its discretion, enter a general denial on behalf of 
the respondent, and the appellant shall be so notified.
    (c) Affirmative claims by the respondent. Where an appellant has 
appealed an affirmative claim by the respondent asserted in a final 
decision by a Postal Service contracting officer, such as a termination 
for default or a Postal Service claim that a contractor owes the Postal 
Service money under a contract, the Board may order the respondent to 
file the complaint as described in Sec. 955.7(a), and the appellant to 
file the answer as described in Sec. 955.7(b).

[74 FR 20592, May 5, 2009, as amended at 76 FR 37660, June 28, 2011]

[[Page 288]]



Sec. 955.8  Amendments of pleadings or record.

    (a) Upon its own initiative or upon application by a party, the 
Board may, in its discretion, order a party to submit a more definite 
statement of the complaint or answer, or to reply to an answer.
    (b) When issues within the proper scope of an appeal, but not raised 
in the pleadings, have been raised without objection or with permission 
of the Board at a hearing or in record submissions, they may be treated 
in all respects as if they had been raised in the pleadings. If evidence 
is objected to at a hearing on the ground that it is not within the 
issues raised by the pleadings, in its discretion the Board may admit 
the evidence and grant the objecting party a continuance or other relief 
if necessary to enable it to meet such evidence.



Sec. 955.9  Hearing request.

    As directed by Board order, each party shall inform the Board, in 
writing, whether it requests a hearing as prescribed in Sec. Sec. 
955.18 through 955.25, or in the alternative submission of its case on 
the record without a hearing as prescribed in Sec. 955.12. If a hearing 
is requested, the request should state where and when the requesting 
party desires the hearing to be conducted and should explain the reasons 
for its choices. After considering the parties' requests, the Board will 
determine whether a hearing will be held.

[76 FR 37660, June 28, 2011]



Sec. 955.10  Prehearing briefs.

    Based on an examination of the documentation described in Sec. 
955.5, the pleadings, and a determination of whether the arguments and 
authorities addressed to the issues are adequately set forth therein, 
the Board may, in its discretion, require the parties to submit 
prehearing briefs in any case in which a hearing has been ordered 
pursuant to Sec. 955.9. In the absence of a Board requirement therefor, 
either party may, in its discretion and upon appropriate and sufficient 
notice to the other party, furnish a prehearing brief to the Board. In 
any case where a prehearing brief is submitted, it shall be furnished so 
as to be received by the Board at least 15 days prior to the date set 
for hearing, and a copy shall be furnished simultaneously to the other 
party.

[74 FR 20592, May 5, 2009, as amended at 76 FR 37660, June 28, 2011]



Sec. 955.11  Prehearing or presubmission conference.

    (a) Whether the case is to be submitted pursuant to Sec. 955.12, or 
heard pursuant to Sec. Sec. 955.18 through 955.25, the Board may upon 
its own initiative or upon the application of either party, convene a 
conference to consider:
    (1) The simplification or clarification of the issues;
    (2) The possibility of obtaining stipulations, admissions, 
agreements on documents, understandings on matters already of record, or 
similar agreements which will avoid unnecessary proof;
    (3) The limitation of the number of expert witnesses, or avoidance 
of similar cumulative evidence, if the case is to be heard;
    (4) The possibility of agreement disposing of all or any of the 
issues in dispute; and
    (5) Such other matters as may aid in the disposition of the appeal.
    (b) The results of the conference shall be reduced to writing by the 
Board and this writing shall thereafter constitute part of the record.



Sec. 955.12  Submission without a hearing.

    Submission of the case without hearing does not relieve the parties 
from the necessity of proving the facts supporting their allegations or 
defenses. Affidavits, depositions, admissions, answers to 
interrogatories, and stipulations may be employed to supplement other 
documentary evidence in the record which will be settled pursuant to 
Sec. 955.14. The Board may permit such submission to be supplemented by 
oral argument (transcribed if requested), and by briefs in accordance 
with Sec. 955.24.



Sec. 955.13  Optional Small Claims (Expedited) and Accelerated Procedures.

    (a) The Small Claims (Expedited) Procedure. (1) The Expedited 
Procedure is available solely at the election of the

[[Page 289]]

appellant. Such election requires decision of the appeal, whenever 
possible, within 120 days after the Board receives written notice of the 
appellant's election to utilize this procedure.
    (2) The appellant may elect this procedure when:
    (i) There is a monetary amount in dispute and that amount is $50,000 
or less, or
    (ii) There is a monetary amount in dispute and that amount is 
$150,000 or less and the appellant is a small business concern (as that 
term is defined in the Small Business Act and regulations promulgated 
under the Act).
    (3) In cases proceeding under the Expedited Procedure, the 
respondent shall send the Board a copy of the contract, the contracting 
officer's final decision, and the appellant's claim letter or letters, 
if any, within ten days from the respondent's first receipt from either 
the appellant or the Board of a copy of the appellant's notice of 
election of the Expedited Procedure. If either party requests an oral 
hearing in accordance with Sec. 955.9, the Board shall promptly 
schedule such a hearing for a mutually convenient time consistent with 
administrative due process and the 120-day limit for a decision, at a 
place determined under Sec. 955.18. If a hearing is not requested by 
either party, the appeal shall be deemed to have been submitted under 
Sec. 955.12 without a hearing.
    (4) Promptly after receipt of the appellant's election of the 
Expedited Procedure, the Board shall establish a schedule of proceedings 
that will allow for the timely resolution of the appeal. Pleadings, 
discovery, and other prehearing activities may be restricted or 
eliminated at the Board's discretion as necessary to enable the Board to 
decide the appeal within 120 days after the Board has received the 
appellant's notice of election of the Expedited Procedure. In so doing, 
the Board may reserve whatever time it considers necessary for 
preparation of the decision.
    (5) Written decisions by the Board in cases processed under the 
Expedited Procedure will be short and contain only summary findings of 
fact and conclusions. Decisions will be rendered for the Board by a 
single Judge. If there has been a hearing, the Judge presiding at the 
hearing may, in his or her discretion, at the conclusion of the hearing 
and after entertaining such oral arguments as he or she deems 
appropriate, render on the record oral summary findings of fact, 
conclusions of law, and a decision of the appeal. Whenever such an oral 
decision is rendered, the Board will subsequently furnish the parties a 
printed copy of such oral decision for the record and payment purposes 
and for the establishment of the commencement date of the period for 
filing a motion for reconsideration under Sec. 955.30.
    (6) Decisions of the Board under the Expedited Procedure will not be 
published, will have no value as precedents, and in the absence of 
fraud, cannot be appealed.
    (b) The Accelerated Procedure. (1) The Accelerated Procedure is 
available solely at the election of the appellant and shall apply only 
to appeals where there is a monetary amount in dispute and the amount in 
dispute is $100,000 or less. Such election requires decision of the 
appeal, whenever possible, within 180 days after the Board receives 
written notice of the appellant's election to utilize this procedure.
    (2) Promptly after receipt of the appellant's election of the 
Accelerated Procedure, the Board shall establish a schedule of 
proceedings that will allow for the timely resolution of the appeal. The 
Board, in its discretion, may shorten time periods prescribed elsewhere 
in these Rules as necessary to enable the Board to decide the appeal 
within 180 days after the Board has received the appellant's notice of 
election of the Accelerated Procedure.
    (3) Written decisions by the Board in cases processed under the 
Accelerated Procedure will normally be short and contain only summary 
findings of fact and conclusions. Decisions will be rendered for the 
Board by a single Judge with the concurrence of the Chairman or Vice 
Chairman or other designated Judge, or by a majority among these two and 
an additional designated member in case of disagreement. In cases where 
the amount in dispute is $50,000 or less and in which there has been a 
hearing, the single Judge presiding at the hearing may, with the 
concurrence of both parties, convert the appeal to an Expedited 
Proceeding and at the

[[Page 290]]

conclusion of the hearing, after entertaining such oral arguments as he 
or she deems appropriate, render on the record oral summary findings of 
fact, conclusions of law, and a decision of the appeal. Whenever such an 
oral decision is rendered, the Board will subsequently furnish the 
parties a printed copy of such oral decision for record and payment 
purposes and to establish the date of commencement of the period for 
filing a motion for reconsideration under Sec. 955.30.
    (c) Denial of election. At the request of the respondent, or on its 
own initiative, the Board may determine whether the amount in dispute 
and/or the appellant's status make the election of the Expedited 
Procedure or the Accelerated Procedure inappropriate.
    (d) Motions for Reconsideration in Cases Arising Under Sec. 955.13. 
Motions for reconsideration of cases decided under either the Expedited 
Procedure or the Accelerated Procedure need not be decided within the 
time periods prescribed by this Sec. 955.13 for the initial decision of 
the appeal, but all such motions shall be processed and decided rapidly 
so as to fulfill the intent of this section.
    (e) General rule. Except as herein modified, the rules of this Part 
955 otherwise apply in all aspects.



Sec. 955.14  Settling the record.

    (a) The record upon which the Board's decision will be rendered 
consists of the appeal file described in Sec. 955.5, and to the extent 
the following items have been filed, pleadings, prehearing conference 
memoranda or orders, prehearing briefs, depositions or interrogatories 
received in evidence, admissions, stipulations, transcripts of 
conferences and hearings, hearing exhibits, posthearing briefs, and 
documents which the Board has specifically designated be made a part of 
the record. The record will at all reasonable times be available for 
inspection by the parties at the Board.
    (b) Except as the Board may otherwise order in its discretion, no 
proof shall be received in evidence after completion of an oral hearing 
or, in cases submitted on the record, after notification by the Board 
that the case is ready for decision.
    (c) The weight to be attached to any evidence of record will rest 
within the sound discretion of the Board. The Board may in any case 
require either party, with appropriate notice to the other party, to 
submit additional evidence on any matter relevant to the appeal.
    (d) The Board may consider the Federal Rules of Evidence for 
guidance regarding admissibility of evidence and other evidentiary 
issues in construing those Board rules that are similar to Federal Rules 
and for matters not specifically covered herein.



Sec. 955.15  Discovery.

    (a) The parties are encouraged to engage in voluntary discovery 
procedures. In connection with any deposition or other discovery 
procedure, the Board may issue any order which justice requires to 
protect a party or person from annoyance, embarrassment, oppression, or 
undue burden or expense, and those orders may include limitations on the 
scope, method, time and place for discovery, and provisions for 
protecting the secrecy of confidential information or documents.
    (b)(1) The Board may limit the frequency or extent of use of 
discovery methods described in these rules. In doing so, generally the 
Board will consider whether:
    (i) The discovery sought is unreasonably cumulative or duplicative, 
or is obtainable from some other source that is more convenient, less 
burdensome, or less expensive;
    (ii) The party seeking discovery has had ample opportunity by 
discovery in the case to obtain the information sought; or
    (iii) The discovery is unduly burdensome and expensive, taking into 
account the needs of the case, the amount in controversy, limitations on 
the parties' resources, and the importance of the issues at stake.
    (2) The parties are required to make a good faith effort to resolve 
objections to discovery requests informally. A party receiving an 
objection to a discovery request, or a party which believes that another 
party's response to a discovery request is incomplete or entirely 
absent, may file a motion to compel a response, but such a motion

[[Page 291]]

must include a representation that the moving party has tried in good 
faith, prior to filing the motion, to resolve the matter informally. The 
motion to compel shall include a copy of each discovery request at issue 
and the response, if any.
    (c) If a party fails to appear for a deposition, after being served 
with a proper notice, or fails to serve answers or objections to 
interrogatories, requests for admission of facts, or requests for the 
production or inspection of documents, after proper service, the party 
seeking discovery may request that the Board impose appropriate rulings 
or sanctions.



Sec. 955.16  Interrogatories to parties, admission of facts, and 
production and inspection of documents.

    (a) Interrogatories to parties. After an appeal has been filed with 
the Board, a party may serve on the other party written interrogatories 
to be answered separately in writing, signed under oath and returned 
within 30 days. Upon timely objection, the Board will determine the 
extent to which the interrogatories will be permitted. The scope and use 
of interrogatories will be controlled by Sec. 955.15.
    (b) Admission of facts. After an appeal has been filed with the 
Board, a party may serve upon the other party a request for the 
admission of specified facts. Within 30 days after service, the party 
served shall answer each requested fact or file objections thereto. The 
factual propositions set out in the request may be ordered by the Board 
as deemed admitted upon the failure of a party to respond timely and 
fully to the request for admissions.
    (c) Production and inspection of documents. After an appeal has been 
filed with the Board, a party may serve on the other party written 
requests for the production, inspection, and copying of any documents, 
electronically stored information, or things, to be answered within 30 
days. Upon timely objection, the Board will determine the extent to 
which the requests must be satisfied, and if the parties cannot 
themselves agree thereon, the Board shall specify just terms and 
conditions of compliance.



Sec. 955.17  Depositions.

    (a) When depositions permitted. After an appeal has been docketed 
and complaint filed, the parties may mutually agree to, or the Board 
may, upon application of either party and for good cause shown, order 
the taking of testimony of any person by deposition upon oral 
examination or written interrogatories before any officer authorized to 
administer oaths at the place of examination, for use as evidence or for 
purpose of discovery. The application for order shall specify whether 
the purpose of the deposition is discovery or for use as evidence.
    (b) Orders on depositions. The time, place, and manner of taking 
depositions shall be as mutually agreed by the parties or, failing such 
agreement, governed by order of the Board.
    (c) Use as evidence. No testimony taken by deposition shall be 
considered as part of the evidence in the hearing of an appeal unless 
and until such testimony is offered and received in evidence at or 
before such hearing. It will not ordinarily be received in evidence if 
the deponent is available to testify at the hearing, but the Board may 
admit testimony taken by deposition in its discretion. A deposition may 
be used to contradict or impeach the testimony of the witness given at 
the hearing. In cases submitted on the record, the Board may, in its 
discretion, receive depositions as evidence in supplementation of that 
record.
    (d) Expenses. Each party shall bear its own expenses associated with 
the taking of any deposition.



Sec. 955.18  Hearings--where and when held.

    If there is to be a hearing, it will be held at a time and place 
prescribed by the Board after consultation with the parties. At the 
discretion of the Board, hearings may be held in the Board's hearing 
room in Arlington, Virginia or may be held at another location with due 
consideration to the just, informal, expeditious and inexpensive 
resolution of each case.

[74 FR 20592, May 5, 2009, as amended at 76 FR 37660, June 28, 2011]

[[Page 292]]



Sec. 955.19  Notice of hearings.

    The Board shall issue an order reasonably in advance of the hearing 
identifying the time and place thereof.



Sec. 955.20  Unexcused absence of a party.

    The unexcused absence of a party at the time and place set for 
hearing will not be occasion for delay. In the event of such absence, 
the hearing will proceed and the case will be regarded as submitted by 
the absent party as provided in Sec. 955.12.



Sec. 955.21  Nature of hearings.

    Hearings shall be as informal as may be reasonable and appropriate 
under the circumstances. The Board may exclude evidence to avoid unfair 
prejudice, confusion of the issues, undue delay, waste of time, or 
presentation of irrelevant, immaterial or cumulative evidence. Although 
the Board will consider the Federal Rules of Evidence as described in 
Sec. 955.14(d), letters or copies thereof, affidavits, or other 
evidence not ordinarily admissible under the Federal Rules, may be 
admitted in the discretion of the Board. The weight to be attached to 
evidence presented in any particular form will be within the discretion 
of the Board, taking into consideration all the circumstances of the 
particular case. Stipulations of fact agreed upon by the parties may be 
accepted as evidence at the hearing. The parties may stipulate the 
testimony that would be given by a witness if the witness were present. 
The Board may in any case require evidence in addition to that offered 
by the parties. A party requiring the use of a foreign language 
interpreter allowing testimony to be taken in English for itself or 
witnesses it proffers is responsible for making all necessary 
arrangements and paying all costs and expenses associated with the use 
of an interpreter.



Sec. 955.22  Examination of witnesses.

    Witnesses before the Board will be examined orally under oath or 
affirmation, unless the facts are stipulated, or the Board shall 
otherwise order. If the testimony of a witness is not given under oath 
or affirmation, the Board may warn the witness that his or her 
statements may be subject to the provisions of 18 U.S.C. 287 and 1001, 
and any other provisions of law imposing penalties for knowingly making 
false representations in connection with claims against the United 
States or in any matter within the jurisdiction of any department or 
agency thereof. Upon the request of either party, or if the Board deems 
it advisable, the Board may exclude witnesses from the hearing room. The 
Board will not exclude a party who is an individual, the properly 
designated representative of a party which is an entity, a person whose 
presence is essential to the presentation of a party's case, or a person 
required by statute to be present.



Sec. 955.23  Copies of papers, withdrawal of exhibits.

    (a) When books, records, papers, or documents have been received in 
evidence, a true copy thereof or of such part thereof as may be material 
or relevant may be substituted therefor, during the hearing or at the 
conclusion thereof.
    (b) After a decision has become final, upon request and after notice 
to the other party, the Board in its discretion may permit the 
withdrawal of original exhibits, or any part thereof, by the party 
entitled thereto. The substitution of true copies of exhibits or any 
part thereof may be required by the Board in its discretion as a 
condition of granting permission for such withdrawal.



Sec. 955.24  Posthearing briefs.

    Posthearing briefs may be submitted upon such terms as may be 
ordered by the Board at the conclusion of the hearing. Ordinarily, they 
will be simultaneous briefs, submitted to the Board on a date 
established by the Board, following receipt of transcripts.



Sec. 955.25  Transcript of proceedings.

    Testimony and argument at hearings shall be reported verbatim, 
unless the Board otherwise orders. Transcripts of the proceedings will 
be provided to the parties by the Board.



Sec. 955.26  Representation of the parties.

    (a) The term appellant means a party that has filed an appeal for 
resolution by the Board. An individual appellant

[[Page 293]]

may appear before the Board in his or her own behalf, a corporation may 
appear before the Board by an officer thereof, a partnership or joint 
venture may appear before the Board by a member thereof, or any of these 
may appear before the Board by an attorney at law duly licensed in any 
state, commonwealth, territory of the United States, or in the District 
of Columbia. An attorney representing an appellant shall file a written 
notice of appearance with the Board, including his or her address, 
telephone number, fax number, and jurisdiction in which the attorney is 
licensed to practice law.
    (b) The term respondent means the U.S. Postal Service. Postal 
Service counsel, who shall be an attorney at law licensed to practice in 
a state, commonwealth, or territory of the United States, or in the 
District of Columbia, designated by the General Counsel, will represent 
the interest of the Postal Service before the Board. Postal Service 
counsel shall file a written notice of appearance with the Board, 
including his or her address, telephone number, fax number, and 
jurisdiction in which the attorney is licensed to practice law.
    (c) References to contractor, appellant, contracting officer, 
respondent and parties shall include respective counsel for the parties, 
as soon as appropriate notices of appearance have been filed with the 
Board. A self-represented party or an attorney representing either party 
shall inform the Board promptly of any change in his or her address, 
telephone number, or fax number.



Sec. 955.27  Withdrawal of attorney.

    Any attorney for either party who has filed a notice of appearance 
and who wishes to withdraw from a case must file a motion or notice 
which includes the name, address, telephone number, and fax number of 
the person who will assume responsibility for representation of the 
party in question.



Sec. 955.28  Suspension.

    (a) Whenever at any time it appears that the parties are in 
agreement as to disposition of the controversy, the Board may suspend 
further processing of the appeal: Provided, however, That if the Board 
is advised thereafter by either party that the controversy has not been 
disposed of by agreement, the case shall be restored to the Board's 
active docket.
    (b) The Board may in its discretion suspend proceedings to permit a 
contracting officer to issue a decision when an appeal has been taken 
from the contracting officer's failure to render a timely decision, or 
for other good cause.



Sec. 955.29  Decisions.

    Decisions of the Board will be made in writing and sent 
simultaneously to both parties. The rules of the Board and all final 
orders and decisions shall be open for public inspection at the offices 
of the Board, and may be made available on its official Web site and to 
commercial publishers. Decisions of the Board will be made solely upon 
the record, as described in Sec. 955.14.



Sec. 955.30  Motion for reconsideration.

    A motion for reconsideration, if filed by either party, shall set 
forth specifically the ground or grounds relied upon to sustain the 
motion, and shall be filed within 30 days from the date of the receipt 
of a copy of the decision of the Board by the party filing the motion.



Sec. 955.31  Dismissal without prejudice.

    In certain cases, appeals docketed before the Board are required to 
be placed in a suspense status and the Board is unable to proceed with 
disposition thereof for reasons not within the control of the Board. In 
any such case where the suspension has continued, or it appears that it 
will continue, for an inordinate length of time, the Board may, in its 
discretion, dismiss such appeals from its docket without prejudice to 
their restoration when the cause of suspension has been removed. Unless 
either party or the Board acts within three years to reinstate any 
appeal dismissed without prejudice, the dismissal shall be deemed with 
prejudice.



Sec. 955.32  Dismissal for failure to prosecute.

    Whenever a record discloses the failure of either party to file 
documents

[[Page 294]]

required by these rules, respond to notices or correspondence from the 
Board, comply with orders of the Board, or otherwise indicates an 
intention not to continue the prosecution or defense of an appeal, the 
Board may issue an order requiring the offending party to show cause why 
the appeal should not be either dismissed or granted, as appropriate. If 
the offending party shall fail to show such cause, the Board may take 
such action as it deems reasonable and proper under the circumstances.



Sec. 955.33  Ex parte communications.

    No member of the Board or of the Board's staff shall entertain, nor 
shall any person directly or indirectly involved in an appeal submit to 
the Board or the Board's staff, off the record, any evidence, 
explanation, analysis, or advice, whether written or oral, regarding any 
matter at issue in an appeal. This provision does not apply to 
consultation among Board members nor to ex parte communications 
concerning the Board's administrative functions or procedures.



Sec. 955.34  Sanctions.

    (a) All parties and their attorneys must obey directions and orders 
prescribed by the Board and adhere to standards of conduct applicable to 
such parties and attorneys. As to an attorney, the standards include the 
rules of professional conduct and ethics of the jurisdictions in which 
that attorney is licensed to practice, to the extent that those rules 
are relevant to conduct affecting the integrity of the Board, its 
process, or its proceedings.
    (b) If any party or its attorney fails to comply with any direction 
or order issued by the Board, or engages in misconduct affecting the 
Board, its process, or its proceedings, the Board may issue such orders 
as are just, including the imposition of appropriate sanctions. 
Sanctions may include:
    (1) Taking the facts pertaining to the matter in dispute to be 
established for the purpose of the case;
    (2) Forbidding challenge of the accuracy of any evidence;
    (3) Refusing to allow the disobedient party to support or oppose 
designated claims or defenses;
    (4) Prohibiting the disobedient party from introducing in evidence 
designated documents or testimony;
    (5) Striking pleadings or parts thereof, or staying further 
proceedings until the order is obeyed;
    (6) Dismissing or granting the case or any part thereof;
    (7) Imposing such other sanctions as the Board deems appropriate.
    (c) In addition, the Board may sanction individual attorneys for a 
violation of any Board order or direction or standard of conduct 
applicable to such individual where the violation seriously affects the 
integrity of the Board, its process, or its proceedings. Sanctions may 
be public or private, and may include admonishment, disqualification 
from a particular matter, disqualification from practice before the 
Board in accordance with 39 CFR Part 951, referral to an appropriate 
licensing authority, or such other action as circumstances may warrant.



Sec. 955.35  Subpoenas.

    (a) General. Upon written request of either party filed with the 
Recorder, or on the Board's own initiative, the Board may issue a 
subpoena requiring:
    (1) Testimony at a deposition. The deposing of a witness in the city 
or county where the witness resides or is employed or transacts business 
in person, or at another convenient location as determined by the Board;
    (2) Testimony at a hearing. The attendance of a witness for the 
purpose of taking testimony at a hearing; or
    (3) Production of books and papers. The production by a witness of 
books, papers, documents, electronically stored information, and other 
tangible and intangible things designated in the subpoena.
    (b) Voluntary cooperation. Each party is expected:
    (1) To cooperate and make available witnesses and evidence under its 
control as requested by the other party, without issuance of a subpoena; 
and
    (2) To secure voluntary attendance of desired third-party witnesses, 
books, papers, documents, or tangible things whenever possible.
    (c) Requests for subpoenas. (1) A request for a subpoena shall 
normally be filed at least:

[[Page 295]]

    (i) 15 days before a scheduled deposition where the attendance of a 
witness at a deposition is sought, and/or where the production by a 
witness of books, papers, documents, electronically stored information, 
and other tangible and intangible things is sought; and
    (ii) 30 days before a scheduled hearing where the attendance of a 
witness at a hearing is sought; except that
    (iii) In its discretion the Board may honor requests for subpoenas 
not made within these time limitations.
    (2) A request for a subpoena shall state the reasonable scope and 
general relevance to the case of the testimony and of any books, papers, 
documents, electronically stored information, and other tangible and 
intangible things sought.
    (d)(1) Requests to quash or modify. Upon written request by the 
person subpoenaed or by a party, made within 10 days after service but 
in any event not later than the time specified in the subpoena for 
compliance, the Board may:
    (i) Quash or modify the subpoena if it is unreasonable and 
oppressive or for other good cause shown; or
    (ii) Require the person in whose behalf the subpoena was issued to 
advance the reasonable cost of compliance.
    (2) Where circumstances require, the Board may act upon such a 
request at any time after a copy has been served upon the opposing 
party.
    (e) Form; issuance. (1) Every subpoena shall state the name of the 
Board and the title of the appeal and shall command each person to whom 
it is directed to attend and give testimony, and where appropriate, to 
produce specified books, papers, documents, electronically stored 
information, and other tangible and intangible things at a time and 
place therein specified. In issuing a subpoena to a requesting party, 
the Judge shall sign the subpoena and may enter the name of the witness 
and otherwise leave it blank. The party to whom the subpoena is issued 
shall complete the subpoena before service.
    (2) Where the witness is located in a foreign country, a letter 
rogatory or subpoena may be issued and served under the circumstances 
and in the manner provided in 28 U.S.C. 1781-1784.
    (f) Service. (1) The party requesting issuance of a subpoena shall 
arrange for service.
    (2) A subpoena may be served by a United States marshal or deputy 
marshal, or by any other person who is not a party and not less than 18 
years of age. Service of a subpoena upon a person named therein shall be 
made by personally delivering a copy to that person and tendering the 
fees for one day's attendance and the mileage provided by 28 U.S.C. 1821 
or other applicable law.
    (3) The party at whose instance a subpoena is issued shall be 
responsible for the payment of fees and mileage of the witness and of 
the officer who serves the subpoena. The failure to make payment of such 
charges on demand may be deemed by the Board as a sufficient ground for 
striking the testimony of the witness and the evidence the witness has 
produced.
    (g) Contumacy or refusal to obey a subpoena. In case of contumacy or 
refusal to obey a subpoena by a person who resides, is found, or 
transacts business within the jurisdiction of a U.S. District Court, the 
Board will apply to the Court through the Attorney General of the United 
States for an order requiring the person to appear before the Board or a 
member thereof to give testimony or produce evidence or both. Any 
failure of any such person to obey the order of the Court may be 
punished by the Court as a contempt thereof.



Sec. 955.36  Effective dates and applicability.

    These revised rules govern proceedings in all cases docketed by the 
Board on or after June 1, 2009.

                           PART 956 [RESERVED]



PART 957_RULES OF PRACTICE IN PROCEEDINGS RELATIVE TO DEBARMENT AND
SUSPENSION FROM CONTRACTING--Table of Contents



Sec.
957.1 Authority for rules.
957.2 Scope of rules.
957.3 Definitions.
957.4 Initiation of debarment proceedings.

[[Page 296]]

957.5 The request for a hearing.
957.6 Order relative to hearing.
957.7 Reply.
957.8 Service and filing documents for the record.
957.9 Respondent's failure to appear at the hearing.
957.10 Respondent already debarred by another Government agency.
957.11 Amendment of pleadings.
957.12 Continuances and extensions.
957.13 Hearings.
957.14 Appearances.
957.15 Conduct of the hearing.
957.16 Evidence.
957.17 Witness fees.
957.18 Depositions.
957.19 Transcript.
957.20 Proposed findings and conclusions.
957.21 Decision.
957.22 Motion for reconsideration.
957.23 Modification or revocation of orders.
957.24 Computation of time.
957.25 Official record.
957.26 Public information.
957.27 Suspension.
957.28 Ex parte communications.

    Authority: 39 U.S.C. 204, 401.

    Source: 36 FR 11574, June 16, 1971, unless otherwise noted.



Sec. 957.1  Authority for rules.

    The rules in this part are issued by the Judicial Officer of the 
Postal Service pursuant to authority delegated by the Postmaster General 
(39 U.S.C. secs. 204, 401; chapter 3, section 7 of the Postal Service 
Purchasing Manual).

[36 FR 11574, June 16, 1971, as amended at 41 FR 19309, May 12, 1976; 63 
FR 66051, Dec. 1, 1998]



Sec. 957.2  Scope of rules.

    The rules in this part shall be applicable in all formal proceedings 
before the Postal Service pertaining to hearings initiated under chapter 
3, section 7 of the Postal Service Purchasing Manual.

[36 FR 11574, June 16, 1971, as amended at 41 FR 19309, May 12, 1976; 63 
FR 66051, Dec. 1, 1998; 67 FR 62179, Oct. 4, 2002]



Sec. 957.3  Definitions.

    (a) the term Vice President means a Vice President with purchasing 
authority in the Postal Service or the Vice President's representative 
for the purpose of carrying out the provisions of chapter 3, section 7 
of the Postal Service Purchasing Manual.
    (b) The term General Counsel includes the General Counsel's 
authorized representative.
    (c) The term Judicial Officer includes the Acting Judicial Officer.
    (d) Debarment means, in general, an exclusion from Government 
contracting and subcontracting for a reasonable, specified period of 
time commensurate with the seriousness of the offense or failure, or the 
inadequacy of performance.
    (e) Suspension means a disqualification from Government contracting 
and subcontracting for a temporary period of time because a concern or 
individual is suspected upon adequate evidence of engaging in criminal, 
fraudulent, or seriously improper conduct.
    (f) Respondent means any individual, firm or other entity which has 
been served a written notice of proposed debarment pursuant to chapter 
3, section 7 of the Postal Service Purchasing Manual.
    (g) The Recorder means the Recorder of the United States Postal 
Service, 2101 Wilson Boulevard, Suite 600, Arlington, VA 22201-3078.

[36 FR 11574, June 16, 1971, as amended at 38 FR 17217, June 29, 1973; 
41 FR 19309, May 12, 1976; 63 FR 66051, Dec. 1, 1998]



Sec. 957.4  Initiation of debarment proceedings.

    (a) A Vice President shall initiate a debarment proceeding by 
serving upon the proposed Respondent a written notice of proposed 
debarment in the manner hereinafter (Sec. 957.8(d)) provided for the 
service of all other papers.
    (b) The notice shall state:
    (1) That debarment is being considered;
    (2) The reasons for the proposed debarment;
    (3) The period of debarment and the proposed effective date thereof;
    (4) That the debarment will not become effective until after a 
hearing if such hearing is requested within 20 days following the 
receipt of the notice; and
    (5) That the request for a hearing is to be submitted in the manner 
prescribed by the rules in this part, a copy of which shall be enclosed 
with the notice.

[[Page 297]]

    (c) If no hearing is requested within 20 days following the receipt 
of the notice, the action of the Vice President set forth in the notice 
shall become the final agency determination without further notice to 
the Respondent.
    (d) The party against which a final agency determination has been 
entered pursuant to paragraph (c) of this section shall, however, at any 
time have the privilege of reopening a case for the limited purpose of 
contesting the issue of service. Such party's contentions on that issue 
shall be addressed to the Judicial Officer in the same manner as a 
request for a hearing (see Sec. 957.5). The Judicial Officer may 
require such additional showings or proof as the Judicial Officer may 
deem necessary on the issue of service and shall reopen any debarment 
proceeding previously closed pursuant to paragraph (c) of this section 
if the Judicial Officer shall find that service was incomplete or 
otherwise failed to adequately advise of the pendency of the proposed 
debarment.

[36 FR 11574, June 16, 1971, as amended at 63 FR 66051, Dec. 1, 1998]



Sec. 957.5  The request for a hearing.

    A respondent may, within 20 days following the receipt of a written 
notice of proposed debarment, file a request for a hearing before the 
Judicial Officer. The request shall be addressed to the presiding 
officer through the Vice President who initiated the debarment 
proceeding and shall be accompanied by a concise statement admitting, 
denying or explaining each of the allegations set forth in the notice of 
proposed debarment and stating the relief desired.

[36 FR 11574, June 16, 1971, as amended at 63 FR 66051, Dec. 1, 1998]



Sec. 957.6  Order relative to hearing.

    (a) The Judicial Officer shall issue an order granting the 
Respondent's request for a hearing, establishing the time and place 
thereof and advising the Respondent of the consequences of a failure to 
appear at the hearing (see Sec. 957.9). Whenever practicable, the 
hearing date shall be within 30 days of the date of the Judicial 
Officer's order relative to hearing.
    (b) The notice of proposed debarment and the request for a hearing 
together with the reply, if any, shall become the pleadings in any 
proceeding in which the Judicial Officer orders a hearing to be held.



Sec. 957.7  Reply.

    Not more than 15 days from the service of the request for a hearing, 
the General Counsel may submit a reply on behalf of the Vice President 
who initiated the debarment proceeding.

[36 FR 11574, June 16, 1971, as amended at 63 FR 66051, Dec. 1, 1998]



Sec. 957.8  Service and filing documents for the record.

    (a) Each party shall file with the Recorder pleadings, motions, 
orders and other documents for the record. The Recorder shall cause 
copies to be served promptly on other parties to the proceeding and on 
the Judicial Officer.
    (b) The parties shall submit four copies of all documents unless 
otherwise ordered by the Judicial Officer. One copy shall be signed as 
the original.
    (c) Documents shall be dated and shall state the docket number and 
title of the proceeding. Any pleading or other document required by 
order of the Judicial Officer to be filed by a specified date shall be 
served upon the Recorder on or before such date. The date of such 
service shall be the filing date and shall be entered thereon by the 
Recorder.
    (d) Service of all papers shall be effected by mailing the same, 
postage prepaid registered, or certified mail, return receipt requested, 
or by causing said notice to be personally served on the proposed 
Respondent by an authorized representative of the Vice President. In the 
case of personal service the person making service shall secure from the 
proposed Respondent or his or her agent, a written acknowledgment of 
receipt of said notice, showing the date and time of such receipt. Said 
acknowledgment (or the return receipt where service is effectuated by 
mail) shall be made a part of the record by the Vice President 
initiating the debarment proceeding. The date of delivery, as shown by 
the acknowledgment of

[[Page 298]]

personal service or the return receipt, shall be the date of service.

[36 FR 11574, June 16, 1971, as amended at 63 FR 66051, Dec. 1, 1998]



Sec. 957.9  Respondent's failure to appear at the hearing.

    If the Respondent shall fail to appear at the hearing, the Judicial 
Officer shall receive the Vice President's evidence and render a Postal 
Service Decision without requirement of further notice to the 
Respondent.

[36 FR 11574, June 16, 1971, as amended at 37 FR 23422, Nov. 3, 1972; 63 
FR 66051, Dec. 1, 1998]



Sec. 957.10  Respondent already debarred by another Government agency.

    (a) When a Vice President proposes to debar a firm or individual 
already debarred by another Government agency for a term concurrent with 
such debarment, the debarment proceedings before the Postal Service may 
be based entirely upon the record of facts obtained from such other 
agency or upon such facts and additional other facts. In such cases the 
facts obtained from the other agency shall be considered as established, 
but the party to be debarred shall have opportunity to present 
information to the Judicial Officer and to explain why the debarment by 
the Postal Service should not be imposed.
    (b) Where the Vice President initiating the debarment proceeding 
relies:
    (1) Upon the provisions of paragraph (a) of this section, or
    (2) Upon all or part of the record of the proposed Respondent's 
previous debarment by another Government agency, in initiating such 
proceeding, the notice of proposed debarment shall contain a statement 
so stating in sufficient detail to apprise the Respondent of the extent 
of such reliance.
    (c) The Vice President's reliance upon provisions of paragraph (a) 
of this section, stated in conformity with the directions set forth in 
paragraph (b) of this section does not deprive the Respondent of the 
right to request the Judicial Officer to grant a hearing pursuant to 
these rules, nor the Judicial Officer the full discretion to grant or 
deny such request.

[36 FR 11574, June 16, 1971, as amended at 63 FR 66051, Dec. 1, 1998]



Sec. 957.11  Amendment of pleadings.

    (a) By consent of the parties a pleading may be amended at any time. 
Also, a party may move to amend a pleading at any time prior to the 
close of the hearing: Provided, That the proposed amendment is 
reasonably within the scope of the proceeding.
    (b) When issues not raised by the pleadings but reasonably within 
the scope of the proceedings initiated by the notice of proposed 
debarment are tried by express or implied consent of the parties, they 
shall be treated in all respects as if they had been raised in the 
pleadings. Such amendments as may be necessary to make the pleadings 
conform to the evidence and to raise such issues shall be allowed at any 
time upon the motion of any party.
    (c) If a party objects to the introduction of evidence at the 
hearing on the ground that it is not within the issues framed by the 
pleadings, but fails to satisfy the Judicial Officer that an amendment 
of the pleadings would prejudice him on the merits, the Judicial Officer 
may allow the pleadings to be amended and may grant a continuance to 
enable the objecting party to rebut the evidence presented.
    (d) The Judicial Officer may, upon reasonable notice and upon such 
terms as are just, permit service of a supplemental pleading setting 
forth transactions, occurrences, or events which have transpired since 
the date of the pleading sought to be supplemented and which are 
relevant to any of the issues involved.



Sec. 957.12  Continuances and extensions.

    Continuances and extensions will not be granted by the Judicial 
Officer except for good cause shown.



Sec. 957.13  Hearings.

    (a) Hearings are held at 2101 Wilson Boulevard, Suite 600, 
Arlington, VA 22201-3078, or other locations designated by the Judicial 
Officer.
    (b) A party may, not later than 7 days prior to the scheduled date 
of a

[[Page 299]]

hearing, file a request that such hearing be held at a place other than 
that designated in the Judicial Officer's order relative to hearing. The 
party shall support his or her request with a statement outlining:
    (1) The evidence to be offered in such place;
    (2) The names and addresses of the witnesses who will testify;
    (3) The reasons why such evidence cannot be produced at Arlington, 
VA. The Judicial Officer shall give consideration to the convenience and 
necessity of the parties and the relevancy of the evidence to be 
offered.

[36 FR 11574, June 16, 1971, as amended at 63 FR 66051, Dec. 1, 1998]



Sec. 957.14  Appearances.

    (a) A Respondent may appear and be heard in person or by attorney.
    (b) An attorney may practice before the Postal Service in accordance 
with applicable rules issued by the Judicial Officer (see part 951 of 
this chapter).
    (c) When a Respondent is represented by an attorney, all pleadings 
and other papers subsequent to the notice of proposed debarment shall be 
mailed to the attorney.
    (d) All counsel shall promptly file notices of appearance. Changes 
of Respondent's counsel shall be recorded by notices from retiring and 
succeeding counsel and from the Respondent.
    (e) After a request for a hearing has been filed pursuant to the 
rules in this part, the Law Department shall represent the Vice 
President in further proceedings relative to the hearing and shall in 
its notice of appearance identify the individual member of such office 
who has been assigned to handle the case on its behalf.

[36 FR 11574, June 16, 1971, as amended at 63 FR 66051, Dec. 1, 1998]



Sec. 957.15  Conduct of the hearing.

    The Judicial Officer shall have authority to:
    (a) Administer oaths and affirmations;
    (b) Examine witnesses;
    (c) Rule upon offers of proof, admissibility of evidence, and 
matters of procedure;
    (d) Order any pleading amended upon motion of a party at any time 
prior to the close of the hearing;
    (e) Maintain discipline and decorum and exclude from the hearing any 
person acting in an indecorous manner;
    (f) Require the filing of briefs or memoranda of law on any matter 
upon which the Judicial Officer is required to rule;
    (g) Order prehearing conferences for the purpose of the settlement 
or simplification of issues by the parties;
    (h) Order the proceeding reopened at any time prior to his or her 
decision for the receipt of additional evidence;
    (i) Render a final agency decision;
    (j) Take such other further action as may be necessary to properly 
preside over the debarment proceeding and render decision therein.

[36 FR 11574, June 16, 1971, as amended at 63 FR 66051, Dec. 1, 1998]



Sec. 957.16  Evidence.

    (a) Except as otherwise provided in the rules in this part, the 
rules of evidence governing civil proceedings in matters not involving 
trial by jury in the courts of the United States shall govern. However, 
such rules may be relaxed to the extent that the Judicial Officer deems 
proper to insure a fair hearing.
    (b) Testimony shall be under oath or affirmation and witnesses shall 
be subject to cross-examination.
    (c) Agreed statements of fact may be received in evidence.
    (d) Official notice or knowledge may be taken of the types of 
matters of which judicial notice or knowledge may be taken.
    (e) The written statement of a competent witness may be received in 
evidence: Provided, That such statement is relevant to the issues, that 
the witness shall testify under oath at the hearing that the statement 
is in all respects true, and, in the case of expert witnesses, that the 
statement correctly states his or her opinion or knowledge concerning 
the matters in question.

[36 FR 11574, June 16, 1971, as amended at 63 FR 66051, Dec. 1, 1998]

[[Page 300]]



Sec. 957.17  Witness fees.

    The Postal Service does not pay fees and expenses for Respondent's 
witnesses or for depositions requested by Respondent.



Sec. 957.18  Depositions.

    (a) Not later than 7 days prior to the scheduled date of the hearing 
any party may file application with the Recorder for the taking of 
testimony by deposition. In support of such application the applicant 
shall submit under oath or affirmation a statement setting out the 
reasons why such testimony should be taken by deposition, the time and 
the place, and the name and address of the witness whose deposition is 
desired, the subject matter of the testimony of each witness, its 
relevancy, and the name and address of the person before whom the 
deposition is to be taken.
    (b) If the application be granted, the order for the taking of the 
deposition will specify the time and place thereof, the name of the 
witness, the person before whom the deposition is to be taken and any 
other necessary information.
    (c) Each witness testifying upon deposition shall be duly sworn, and 
the adverse party shall have the right to cross-examine. The questions 
and answers together with all objections, shall be reduced to writing 
and, unless waived by stipulation of the parties, shall be read to and 
subscribed by the witness in the presence of the deposition officer who 
shall certify it in the usual form. The deposition officer shall file 
the testimony taken by deposition as directed in the order. The 
deposition officer shall put the witness on oath. All objections made at 
the time of examination shall be noted by the deposition officer and the 
evidence objected to shall be taken subject to the objections. In lieu 
of participating in the oral examination, a party may transmit written 
interrogatories to the officer, who shall propound them to the witness 
and record the answers verbatim. Objections to relevancy or materiality 
of testimony, or to errors and irregularities occurring at the oral 
examination in the manner of taking the deposition, in the form of the 
questions or answers, in the oath or affirmation, or in the conduct of 
the parties and errors of any kind which might be obviated, cured or 
removed if promptly presented, are waived unless timely objection is 
made at the taking of the deposition.
    (d) At the hearing any part or all of the deposition may be offered 
in evidence by any party who was present or represented at the taking of 
the deposition or who had notice thereof. If the deposition is not 
offered and received in evidence, it shall not be considered as a part 
of the record in the proceeding. The admissibility of depositions or 
parts thereof shall be governed by the rules of evidence.
    (e) The party requesting the deposition shall pay all fees required 
to be paid to witnesses and the deposition officer, and shall provide an 
original and one copy of the deposition for the official record, and 
shall serve one copy upon the opposing party.
    (f) Within the United States or within a territory or insular 
possession, subject to the dominion of the United States, depositions 
may be taken before an officer authorized to administer oaths by the 
laws of the United States or of the place where the examination is held; 
within a foreign country, depositions may be taken before a secretary of 
an embassy or legation, consul general, vice consul or consular agent of 
the United States, or any other person designated in the order for the 
taking of a deposition.
    (g) Depositions may also be taken and submitted on written 
interrogatories in substantially the same manner as depositions taken by 
oral examination. When a deposition is taken upon written 
interrogatories and cross-interrogatories, none of the parties shall be 
present or represented, and no person, other than the witness, a 
stenographic reporter, and the officer shall be present at the 
examination of the witness, which fact shall be certified by the 
officer, who shall propound the interrogatories and cross-
interrogatories to the witness in their order and reduce the testimony 
to writing in the witness' own words.

[36 FR 11574, June 16, 1971, as amended at 63 FR 66051, Dec. 1, 1998]

[[Page 301]]



Sec. 957.19  Transcript.

    (a) Hearings shall be stenographically reported by a contract 
reporter of the Postal Service under the supervision of the Judicial 
Officer. Argument upon any matter may be excluded from the transcript by 
order of the Judicial Officer. A copy of the transcript shall be a part 
of the record and the sole official transcript of the proceeding. Copies 
of the transcript may be obtained by the Respondent from the reporter 
upon the payment of a reasonable price therefor. Copies of parts of the 
official record other than the transcript may be obtained from the 
librarian of the Postal Service or the Recorder.
    (b) Changes in the official transcript may be made only when they 
involve errors affecting substance and then only in the manner herein 
provided. No physical changes shall be made in or upon the official 
transcript, or copies thereof, which have been filed with the record. 
Within 10 days after the receipt by any party of a copy of the official 
transcript, or any part thereof, the party may file a motion requesting 
correction of the transcript. Opposing counsel shall, within such time 
as may be specified by the Judicial Officer, notify the Judicial Officer 
in writing of his or her concurrence or disagreement with the requested 
corrections. Failure to interpose timely objection to a proposed 
correction shall be considered to be concurrence. Thereafter, the 
Judicial Officer shall by order specify the corrections to be made in 
the transcript. The Judicial Officer on his or her own initiative may 
order corrections to be made in the transcript with prompt notice to the 
parties of the proceeding. Any changes ordered by the Judicial Officer 
other than the agreement of the parties shall be subject to objection 
and exception.

[36 FR 11574, June 16, 1971, as amended at 63 FR 66051, Dec. 1, 1998]



Sec. 957.20  Proposed findings and conclusions.

    (a) Each party to a proceeding, except one who fails to appear at 
the hearing may, unless at the discretion of the Judicial Officer such 
is not appropriate, submit proposed findings of fact, conclusions of law 
and supporting reasons either in oral or written form in the discretion 
of the Judicial Officer. The Judicial Officer may also require parties 
to any proceeding to submit proposed findings of fact and conclusions of 
law with supporting reasons. Unless given orally the date set for filing 
of proposed findings of fact and conclusions of law shall be within 15 
days after the delivery of the official transcript to the Recorder who 
shall notify both parties of the date of its receipt. The filing date 
for proposed findings shall be the same for both parties. If not 
submitted by such date, or unless extension of time for the filing 
thereof is granted, they will not be included in the record or given 
consideration.
    (b) Except when presented orally before the close of the hearing, 
proposed findings of fact shall be set forth in serially numbered 
paragraphs and shall state with particularity all evidentiary facts in 
the record with appropriate citations to the transcript or exhibits 
supporting the proposed findings. Each proposed conclusion shall be 
separately stated.

[36 FR 11574, June 16, 1971, as amended at 63 FR 66051, Dec. 1, 1998]



Sec. 957.21  Decision.

    The Judicial Officer shall issue a final agency decision. Such 
decision shall include findings and conclusions, with the reasons 
therefor, upon all the material issues of fact or law presented on the 
record, and the appropriate order.



Sec. 957.22  Motion for reconsideration.

    Within 10 days from the date thereof, or such longer period as may 
be fixed by the Judicial Officer, either party may file a motion for 
reconsideration of the final agency decision. Each motion for 
reconsideration shall be accompanied by a brief clearly setting forth 
the points of fact and of law relied upon in support of said motion.



Sec. 957.23  Modification or revocation of orders.

    A party against whom an order of debarment has been issued may file 
an

[[Page 302]]

application for modification or revocation thereof. The Recorder shall 
transmit a copy of the application to the General Counsel, who shall 
file a written reply. A copy of the reply shall be sent to the applicant 
by the Recorder. Thereafter an order granting or denying such 
application will be issued by the Judicial Officer.

[36 FR 11574, June 16, 1971, as amended at 63 FR 66051, Dec. 1, 1998]



Sec. 957.24  Computation of time.

    A designated period of time under the rules in this part excludes 
the day the period begins, and includes the last day of the period 
unless the last day is a Saturday, Sunday, or legal holiday, in which 
event the period runs until the close of business on the next business 
day.



Sec. 957.25  Official record.

    The transcript of testimony together with all pleadings, orders, 
exhibits, briefs, and other documents filed in the proceeding shall 
constitute the official record of the proceeding.



Sec. 957.26  Public information.

    The Librarian of the Postal Service shall maintain for public 
inspection in the Library copies of all final decisions. The Recorder 
maintains the complete official record of every proceeding.

[36 FR 11574, June 16, 1971, as amended at 63 FR 66051, Dec. 1, 1998]



Sec. 957.27  Suspension.

    (a) Any firm or individual suspended under chapter 3, section 7 of 
the Postal Service Purchasing Manual who believes that the suspension 
has not been in accordance with the provisions thereof, or with 
applicable laws or regulations, may appeal to the Judicial Officer for a 
review of the suspension.
    (b) Any such appeal shall be addressed to the Judicial Officer 
through the Vice President who ordered the suspension within 20 days of 
the date upon which the respondent has been notified of the suspension. 
Such appeal shall concisely and in the manner of a pleading set forth 
the grounds upon which the suspension is contested and may be supported 
by a brief and such evidence as the respondent may desire to submit.
    (c) Should the respondent desire oral argument or a hearing before 
the Judicial Officer in connection with the appeal, application therefor 
shall be included in the appeal. In the event that the Judicial Officer 
grants the respondent's application for a hearing the notice of 
suspension and the appeal shall constitute the pleadings defining the 
issues therein and the hearing shall be regulated in accordance with the 
rules in this part concerning debarment proceedings.
    (d) The decision of the Judicial Officer in any appeal shall 
constitute the final agency determination of the issues presented 
thereby. Either party thereto may, however, file a motion for 
reconsideration thereof, in accordance with the provisions of Sec. 
957.22.

[36 FR 11574, June 16, 1971, as amended at 41 FR 19309, May 12, 1976; 63 
FR 66051, Dec. 1, 1998]



Sec. 957.28  Ex parte communications.

    The provisions of 5 U.S.C. 551(14), 556(d) and 557(d) prohibiting ex 
parte communications are made applicable to proceedings under these 
rules of practice.

[42 FR 5358, Jan. 28, 1977]



PART 958_RULES OF PRACTICE IN PROCEEDINGS RELATIVE TO CIVIL PENALTIES,
CLEAN-UP COSTS AND DAMAGES FOR VIOLATION OF HAZARDOUS MATERIAL 

REGULATIONS--Table of Contents



Sec.
958.1 Purpose.
958.2 Definitions.
958.3 Petition for hearing.
958.4 Referral of complaint.
958.5 Scope of hearing; evidentiary standard.
958.6 Notice of docketing and hearing.
958.7 Hearing location.
958.8 Rights of parties.
958.9 Responsibilities and authority of presiding officer.
958.10 Prehearing conferences.
958.11 Respondent access to information.
958.12 Depositions; interrogatories; admission of facts; production and 
          inspection of documents.
958.13 Sanctions.
958.14 Ex parte communications.

[[Page 303]]

958.15 Post-hearing briefs.
958.16 Transcript of proceedings.
958.17 Initial decision.
958.18 Appeal of initial decision to Judicial Officer.
958.19 Form and filing of documents.
958.20 Service of notice of docketing and hearing, other documents.
958.21 Computation of time.
958.22 Continuances and extensions.
958.23 Settlement.

    Authority: 39 U.S.C. 204; 39 U.S.C. 401; 39 U.S.C. 3001; 39 U.S.C. 
3018.

    Source: 74 FR 18631, Apr. 24, 2009, unless otherwise noted.



Sec. 958.1  Purpose.

    This part establishes the procedures governing the hearing and 
appeal rights of any person alleged to be liable for civil penalties, 
clean-up costs and/or damages for mailing hazardous materials and/or 
related violations under 39 U.S.C. 3018.



Sec. 958.2  Definitions.

    As used in this part:
    (a) Complaint refers to the determination by the Determining 
Official that an individual has violated the prohibition against mailing 
hazardous materials and/or related violations under 39 U.S.C. 3018.
    (b) Initial Decision refers to the written decision which the 
Presiding Officer renders.
    (c) Determining Official refers to the Chief Postal Inspector or 
designee.
    (d) Judicial Officer refers to the Judicial Officer or Acting 
Judicial Officer of the United States Postal Service or designee within 
the Judicial Officer Department.
    (e) Party refers to the Postal Service or the respondent.
    (f) Person refers to any individual, partnership, corporation, 
association, or private organization.
    (g) Presiding Officer refers to an Administrative Law Judge 
designated by the Judicial Officer to conduct a hearing.
    (h) Recorder refers to the Recorder of the Judicial Office of the 
United States Postal Service, 2101 Wilson Boulevard, Suite 600, 
Arlington, Virginia 22201-3078.
    (i) Representative refers to an attorney or other advocate.
    (j) Respondent refers to any person determined by the Determining 
Official to be liable for civil penalties, clean-up costs and/or damages 
for mailing hazardous materials and/or related violations under 39 
U.S.C. 3018.



Sec. 958.3  Petition for hearing.

    Within 30 days of being served the Postal Service's Complaint 
alleging liability under 39 U.S.C. 3018, the respondent may request a 
hearing by filing a written Hearing Petition with the Recorder. The 
respondent's Petition must include the following:
    (a) The words ``Petition for Hearing Related to Prohibitions 
Regarding the Mailing of Hazardous Material'' or other words reasonably 
identifying it as such;
    (b) The name of the respondent as well as his or her work and home 
addresses, and work and home telephone numbers; and other address and 
telephone number where the respondent may be contacted about the hearing 
proceedings;
    (c) The date on which the respondent received the Complaint issued 
by the Determining Official;
    (d) A statement indicating whether the respondent requests an oral 
hearing or a decision solely on the written record;
    (e) If the respondent requests an oral hearing, a statement 
proposing a city for the hearing site, with justification for holding 
the hearing in that city, as well as recommended dates for the hearing; 
and
    (f) A statement admitting or denying each of the allegations of 
liability made in the Complaint, and stating any defense on which the 
respondent intends to rely.



Sec. 958.4  Referral of complaint.

    (a) If the respondent fails to request a hearing within the 
specified period, the Determining Official shall transmit the Complaint 
to the Judicial Officer for referral to a Presiding Officer, who shall 
issue an Initial Decision based upon the information contained in the 
Complaint.
    (b) If the respondent files a Hearing Petition, the Determining 
Official, upon receiving a copy of the Petition,

[[Page 304]]

shall promptly transmit to the Presiding Officer a copy of the Postal 
Service's Complaint.



Sec. 958.5  Scope of hearing; evidentiary standard.

    (a) A hearing under this part shall be conducted by the Presiding 
Officer on the record:
    (1) To determine whether the respondent is liable under 39 U.S.C. 
3018, and
    (2) If so, to determine the amount of any civil penalties, clean-up 
costs and/or damages to be imposed.
    (b) The Postal Service must prove its case against a respondent by a 
preponderance of the evidence.
    (c) The parties may offer for insertion onto the record such 
relevant evidence as they deem appropriate and as would be admissible 
under the generally accepted rules of evidence applied in the courts of 
the United States in nonjury trials, subject, however, to the sound 
discretion of the Presiding Officer in supervising the extent and manner 
of presentation of such evidence. In general, admissibility will hinge 
on relevancy and materiality. However, relevant evidence may be excluded 
if its probative value is substantially outweighed by the danger of 
unfair prejudice, or by considerations of undue delay, waste of time, or 
needless presentation of cumulative evidence.



Sec. 958.6  Notice of docketing and hearing.

    (a) Within a reasonable time after receiving the respondent's 
Hearing Petition and the Complaint, the Presiding Officer shall serve 
upon the respondent and the Determining Official, a Notice of Docketing 
and Hearing.
    (b) The Notice of Docketing and Hearing required by paragraph (a) of 
this section may include:
    (1) The tentative site, date, and time of the oral hearing, if one 
is requested;
    (2) The legal authority and jurisdiction under which the hearing is 
to be held;
    (3) The nature of the hearing;
    (4) The matters of fact and law to be decided;
    (5) A description of the procedures governing the conduct of the 
hearing; and
    (6) Such other information as the Presiding Officer deems 
appropriate.



Sec. 958.7  Hearing location.

    An oral hearing under this part shall be held:
    (a) In the judicial district of the United States in which the 
respondent resides or transacts business;
    (b) In the judicial district of the United States in which the 
incident or incidents occurred upon which the determination of liability 
under 39 U.S.C. 3018 was made by the Determining Official; or
    (c) In such other place as may be determined by the Presiding 
Officer.



Sec. 958.8  Rights of parties.

    Subject to the sound discretion of the Presiding Officer, acting 
under Sec. 958.9, parties to a hearing under this part shall have the 
right:
    (a) To be accompanied, represented, and advised, by an attorney or 
representative of his or her own choosing;
    (b) To participate in any conferences held by the Presiding Officer;
    (c) To agree to stipulations of fact or law, which shall be made 
part of the record;
    (d) To make opening and closing statements at the oral hearing;
    (e) To present oral and documentary evidence relevant to the issues;
    (f) To submit rebuttal evidence;
    (g) To conduct such cross-examination as may be required for a full 
and true disclosure of the facts; and
    (h) To submit written briefs, proposed findings of fact, and 
proposed conclusions of law.



Sec. 958.9  Responsibilities and authority of presiding officer.

    (a) The Presiding Officer shall conduct a fair and impartial 
hearing, avoid unnecessary delay, maintain order, and assure that a 
record of the proceeding is made.
    (b) The Presiding Officer's authority includes, but is not limited 
to, the following:
    (1) Establishing, upon adequate notice to all parties, the date and 
time of the oral hearing, if any, as well as, in accordance with Sec. 
958.7, selecting the hearing site;

[[Page 305]]

    (2) Holding conferences, by telephone or in person, to identify or 
simplify the issues, or to consider other matters that may aid in the 
expeditious resolution of the proceeding;
    (3) Continuing or recessing the hearing in whole or in part for a 
reasonable period of time;
    (4) Administering oaths and affirmations to witnesses;
    (5) Ruling on all offers, motions, requests by the parties, and 
other procedural matters;
    (6) Issuing any notices, orders, or memoranda to the parties 
concerning the proceedings;
    (7) Regulating the scope and timing of discovery;
    (8) Regulating the course of the hearing and the conduct of the 
parties and their representatives;
    (9) Examining witnesses;
    (10) Receiving, ruling on, excluding, or limiting evidence in order 
to assure that relevant, reliable and probative evidence is elicited on 
the issues in dispute, but irrelevant, immaterial or repetitious 
evidence is excluded;
    (11) Deciding cases, upon motion of a party, in whole or in part by 
summary judgment where there is no disputed issue of material fact;
    (12) Establishing the record in the case; and
    (13) Issuing a written Initial Decision containing findings of fact, 
conclusions of law, and determinations with respect to whether civil 
penalties, clean-up costs and/or damages for mailing hazardous materials 
and/or related violations under 39 U.S.C. 3018 should be imposed, and if 
so, the amounts thereof, after taking into account the penalty 
considerations contained in 39 U.S.C. 3018(e).



Sec. 958.10  Prehearing conferences.

    (a) At a reasonable time after issuing the Notice of Docketing and 
Hearing, and with adequate notice to the parties, the Presiding Officer 
may conduct, in person or by telephone, one or more prehearing 
conferences to discuss the following:
    (1) Simplification of the issues;
    (2) The necessity or desirability of amendments to the pleadings, 
including the need for a more definite statement;
    (3) Stipulations or admissions of fact or as to the contents and 
authenticity of documents;
    (4) Limitation of the number of witnesses;
    (5) Exchange of witness lists, copies of prior statements of 
witnesses, and copies of hearing exhibits;
    (6) Scheduling dates for the exchange of witness lists and of 
proposed exhibits;
    (7) Discovery;
    (8) Possible changes in the scheduled oral hearing date, time or 
site, if requested; and
    (9) Any other matters related to the proceeding.
    (b) Within a reasonable time after the completion of a prehearing 
conference, the Presiding Officer shall issue an order detailing all 
matters agreed upon by the parties, or ordered by the Presiding Officer, 
at such conference.



Sec. 958.11  Respondent's access to information.

    Except as provided in this section, after receiving the Notice of 
Docketing and Hearing the respondent may review and obtain a copy of all 
relevant and material documents, transcripts, records, and other 
materials which relate to the determination of liability by the 
Determining Official under 39 U.S.C. 3018, and all exculpatory 
information in the possession of the Determining Official relating to 
liability for civil penalties, clean-up costs and/or damages for mailing 
hazardous materials and/or related violations under 39 U.S.C. 3018. The 
respondent is not entitled to review or obtain a copy of any document, 
transcript, record, or other material which is privileged under Federal 
law. The Presiding Officer is authorized to issue orders placing 
limitations on the scope, method, time and place for accessing this 
information, and provisions for protecting the secrecy of confidential 
information or documents.



Sec. 958.12  Depositions; interrogatories; admission of facts; 
production and inspection of documents.

    (a) General policy and protective orders. The parties are encouraged 
to engage in voluntary discovery procedures. In

[[Page 306]]

connection with any discovery procedure permitted under this part, the 
Presiding Officer may issue any order which justice requires to protect 
a party or person from annoyance, embarrassment, oppression, or undue 
burden or expense. Such orders may include limitations on the scope, 
method, time and place for discovery, and provisions for protecting the 
secrecy of confidential information or documents. Each party shall bear 
its own expenses relating to discovery.
    (b) Depositions. After the issuance of a Notice of Docketing and 
Hearing, the parties may mutually agree to, or the Presiding Officer 
may, upon application of either party and for good cause shown, order 
the taking of testimony of any person by deposition upon oral 
examination or written interrogatories before any officer authorized to 
administer oaths at the place of examination, for use as evidence or for 
purposes of discovery. The application for an order of the Presiding 
Officer under this paragraph shall specify whether the purpose of the 
deposition is discovery or for use as evidence.
    (1) The time, place, and manner of taking depositions shall be as 
mutually agreed by the parties, or failing such agreement, governed by 
order of the Presiding Officer.
    (2) No testimony taken by depositions shall be considered as part of 
the record in the hearing unless and until such testimony is offered and 
received into evidence by order of the Presiding Officer. Deposition 
testimony will not ordinarily be received in evidence if an oral hearing 
is requested by either party, and the deponent is available to testify 
personally at the hearing. In such instances, however, deposition 
testimony may be used to contradict or impeach the testimony of the 
witness given at the hearing. In cases submitted for a decision on a 
written record, the Presiding Officer may, in his or her discretion, 
receive deposition testimony as evidence in supplementation of that 
record.
    (c) Interrogatories to parties. After the issuance of a Notice of 
Docketing and Hearing, a party may serve on the other party written 
interrogatories. Within 30 days after service, the party served shall 
answer each interrogatory separately in writing, signed under oath, or 
file objections thereto. Upon timely objection by the party, the 
Presiding Officer will determine the extent to which the interrogatories 
will be permitted.
    (d) Admission of facts. After the issuance of a Notice of Docketing 
and Hearing, a party may serve upon the other party a request for the 
admission of specified facts. Within 30 days after service, the party 
served shall answer each requested fact or file objections thereto. Upon 
timely objection by the party, the Presiding Officer will determine the 
extent to which the request for admission will be permitted. The factual 
propositions set out in the request shall be deemed admitted upon the 
failure of a party to respond to the request for admission.
    (e) Production and inspection of documents. Upon motion of a party 
showing good cause therefor, and upon notice, the Presiding Officer may 
order the other party to produce and permit the inspection and copying 
or photographing of any designated documents or objects, not privileged, 
specifically identified, and their relevance and materiality to the 
cause or causes in issue explained, which are reasonably calculated to 
lead to the discovery or admissible evidence. If the parties cannot 
themselves agree thereon, the Presiding Officer shall specify just terms 
and conditions in making the inspection and taking the copies and 
photographs.
    (f) Limitations. A discovery procedure may not be used to reach 
documents, transcripts, records, or other material which a person is not 
entitled to review pursuant to Sec. 958.11.



Sec. 958.13  Sanctions.

    (a) In general. The Presiding Officer may sanction a person, 
including any party, attorney or representative, for:
    (1) Failing to comply with a lawful order or prescribed procedure;
    (2) Failing to prosecute or defend an action; or
    (3) Engaging in other misconduct that interferes with the speedy, 
orderly, or fair conduct of the hearing.
    (b) Reasonableness. Any such sanction, including but not limited to 
those listed in paragraphs (c), (d), and (e) of

[[Page 307]]

this section, shall reasonably relate to the severity and nature of the 
failure or misconduct.
    (c) Failure to comply with an order. When a party fails to comply 
with an order, including an order for taking a deposition, the 
production of evidence within the party's control, or a request for 
admission, the Presiding Officer may:
    (1) Draw an inference in favor of the requesting party with regard 
to the information sought;
    (2) Prohibit such party from introducing evidence concerning, or 
otherwise relying upon, testimony relating to the information sought;
    (3) Permit the requesting party to introduce secondary evidence 
concerning the information sought; and
    (4) Strike any part of the pleadings or other submissions of the 
party failing to comply with such request.
    (d) Failure to prosecute or defend. If a party fails to prosecute or 
defend an action under this part, the Presiding Officer may dismiss the 
action, or enter an order of default and an Initial Decision.
    (e) Failure to file timely. The Presiding Officer may refuse to 
consider any motion or other pleading, report, or response which is not 
filed in a timely fashion.



Sec. 958.14  Ex parte communications.

    Communications between a Presiding Officer and a party shall not be 
made on any matter in issue unless on notice and opportunity for all 
parties to participate. This prohibition does not apply to procedural 
matters. A memorandum of any communication between the Presiding Officer 
and a party shall be transmitted by the Presiding Officer to all 
parties.



Sec. 958.15  Post-hearing briefs.

    Post-hearing briefs and reply briefs may be submitted upon such 
terms as established by the Presiding Officer at the conclusion of the 
hearing.



Sec. 958.16  Transcript of proceedings.

    Testimony and argument at oral hearings shall be reported verbatim, 
unless the Presiding Officer orders otherwise. Transcripts or copies of 
the proceedings may be obtained by the parties at such rates as may be 
fixed by contract between the reporter and the Postal Service.



Sec. 958.17  Initial decision.

    (a) After the conclusion of the hearing, and the receipt of briefs, 
if any, from the parties, the Presiding Officer shall issue a written 
Initial Decision, including his or her findings and determinations. Such 
decision shall include the findings of fact and conclusions of law which 
the Presiding Officer relies upon in determining whether the respondent 
is liable for civil penalties, clean-up costs and/or damages for mailing 
hazardous materials and/or related violations under 39 U.S.C. 3018, and, 
if liability is found, shall set forth the amount of any civil 
penalties, clean-up costs and/or damages imposed.
    (b) The Presiding Officer shall promptly send to each party a copy 
of his or her Initial Decision. A party may, in accordance with Sec. 
958.18, appeal an adverse Initial Decision to the Judicial Officer. 
Unless a party timely appeals in accordance with Sec. 958.18, the 
Presiding Officer's Initial Decision, including the findings and 
determinations, becomes the final agency decision.



Sec. 958.18  Appeal of initial decision to Judicial Officer.

    (a) Notice of appeal and supporting brief. A party may appeal an 
adverse Initial Decision by filing, within 30 days after the Presiding 
Officer issues the Initial Decision, a Notice of Appeal with the 
Recorder. The Judicial Officer may extend the filing period but only if 
the party files a request for an extension within the initial 30-day 
period and demonstrates good cause for such extension.
    (1) The Notice of Appeal must be accompanied by a written brief 
specifying the party's exceptions, and any reasons for such exceptions, 
to the Presiding Officer's Initial Decision.
    (2) Within 30 days of receiving the party's brief, the opposing 
party may file with the Judicial Officer a response to the specified 
exceptions to the Presiding Officer's Initial Decision.
    (b) Form of review. Review by the Judicial Officer will be based 
entirely on the record and written submissions.

[[Page 308]]

    (1) The Judicial Officer may affirm, reduce, reverse, or remand any 
determination about a penalty or assessment by the Presiding Officer.
    (2) The Judicial Officer shall not consider any argument or 
objection that was not raised in the hearing unless the interested party 
demonstrates that the failure to raise the argument or objection before 
the Presiding Officer was caused by extraordinary circumstances.
    (3) If any party demonstrates to the satisfaction of the Judicial 
Officer that additional evidence not presented at the hearing is 
material and that there were reasonable grounds for the failure to 
present such evidence, the Judicial Officer may remand the matter to the 
Presiding Officer for consideration of such additional evidence.
    (c) Decision of Judicial Officer. The Judicial Officer shall 
promptly serve each party to the appeal with a copy of his or her 
decision. The decision of the Judicial Officer constitutes final agency 
action and becomes final and binding on the parties.



Sec. 958.19  Form and filing of documents.

    (a) Every pleading filed in a proceeding under this part must 
contain a caption setting forth the title of the action, the docket 
number (after assignment by the Recorder), an accurate designation of 
the document, and the name, address, and telephone number of the party 
on whose behalf the paper was filed. It shall also be signed by the 
party or party representative submitting the document.
    (b) The original and three copies of all pleadings and documents in 
a proceeding conducted under this part shall be filed with the Recorder, 
Judicial Officer Department, United States Postal Service, 2101 Wilson 
Boulevard, Suite 600, Arlington, Virginia 22201-3078. Normal Recorder 
business hours are between 8:15 a.m. and 4:45 p.m., eastern standard or 
daylight saving time. The Recorder will transmit a copy of each document 
filed to the other party, and the original to the Presiding Officer.
    (c) Pleadings or other document transmittals to, or communications 
with, the Postal Service, other than to the Recorder under paragraph (a) 
of this section, shall be made through the Determining Official or 
designated Postal Service attorney. If a notice of appearance by a 
representative is filed on behalf of the respondent, pleadings or 
document transmittals to, or communications with, the respondent shall 
be made through his or her representative.



Sec. 958.20  Service of notice of docketing and hearing, other documents.

    Unless otherwise specified, service of a Notice of Docketing and 
Hearing or any other document under this part shall be effected by 
registered or certified mail, return receipt requested, or by personal 
delivery. In the case of personal service, the person making service 
shall, if possible, secure from the party or other person sought to be 
served, or his or her agent, a written acknowledgement of receipt, 
showing the date and time of such receipt. If the person upon whom 
service is made declines to acknowledge receipt, the person effecting 
service shall execute a statement, indicating the time, place and manner 
of service, which shall constitute evidence of service.



Sec. 958.21  Computation of time.

    In computing any period of time provided for by this part, or any 
order issued pursuant to this part, the time begins with the day 
following the act, event, or default, and includes the last day of the 
period, unless it is a Saturday, Sunday, or legal holiday observed by 
the Federal Government, in which event it includes the next business 
day. Except as otherwise provided in these rules or an applicable order, 
prescribed periods of time are measured in calendar days rather than 
business days.



Sec. 958.22  Continuances and extensions.

    Continuances and extensions may be granted under these rules for 
good cause shown.



Sec. 958.23  Settlement.

    Either party may make offers of settlement or proposals of 
adjustment at any time. The Determining Official has the exclusive 
authority to compromise or settle any determinations of liability for 
civil penalties, clean-up costs and/or damages for mailing hazardous 
materials and/or related violations

[[Page 309]]

under 39 U.S.C. 3018, without the consent of the Presiding Officer or 
Judicial Officer.



PART 959_RULES OF PRACTICE IN PROCEEDINGS RELATIVE TO THE PRIVATE 
EXPRESS STATUTES--Table of Contents



Sec.
959.1 Authority for rules.
959.2 Scope of rules.
959.3 Office, business hours.
959.4 Demands for payment of postage.
959.5 Appeals from demands.
959.6 Revocations of suspension.
959.7 Notice of hearing.
959.8 Service of petition filed under Sec. 959.6.
959.9 Filing documents for the record.
959.10 Default.
959.11 Amendment of pleadings.
959.12 Continuances and extensions.
959.13 Hearings.
959.14 Change of place of hearings.
959.15 Appearances.
959.16 Presiding officers.
959.17 Evidence.
959.18 Subpoenas.
959.19 Witness fees.
959.20 Depositions.
959.21 Transcript.
959.22 Proposed findings and conclusions.
959.23 Decisions.
959.24 Exceptions to initial decision or tentative decision.
959.25 Judicial Officer.
959.26 Motion for reconsideration.
959.27 Modification or revocation of orders.
959.28 Computation of time.
959.29 Official record.
959.30 Public information.
959.31 Ex parte communications.

    Authority: 39 U.S.C. 204, 401; 39 CFR 224.1(c)(6)(ii)(D).

    Source: 39 FR 33213, Sept. 16, 1974, unless otherwise noted.



Sec. 959.1  Authority for rules.

    These rules are issued by the Judicial Officer of the U.S. Postal 
Service pursuant to authority delegated by the Postmaster General.



Sec. 959.2  Scope of rules.

    These rules apply to all Postal Service proceedings in which part 
310 of this title authorizes appeals to the Judicial Officer from 
demands for postage for matter carried in violation of the Private 
Express Statutes, and in proceedings to revoke, as to any person, the 
suspension of provisions of the Private Express Statutes in accordance 
with part 320 of this title.



Sec. 959.3  Office, business hours.

    The offices of the officials mentioned in these rules are located at 
2101 Wilson Boulevard, Suite 600, Arlington, VA 22201-3078 and are open 
Monday through Friday from 8:15 a.m. to 4:45 p.m.

[63 FR 66052, Dec. 1, 1998]



Sec. 959.4  Demands for payment of postage.

    Final demands for payment of postage will be accompanied by a copy 
of these rules and will:
    (a) State that the demand is final unless appealed under these rules 
within 15 days after receipt of the demand;
    (b) Describe the transaction on which the demand is based and the 
provisions of law or regulation alleged to have been violated; and
    (c) State the manner in which the amount of the demand is computed.



Sec. 959.5  Appeals from demands.

    (a) A party upon whom a demand for postage has been made may appeal 
from the demand by filing a petition, in triplicate, with the Recorder, 
Judicial Officer Department, within 15 days after receipt of the demand.
    (b) The petition shall:
    (1) Be signed personally by an individual petitioner, by one of the 
partners of a partnership, or by an officer of a corporation or 
association;
    (2) State the reasons why the person filing the petition (designated 
the ``Petitioner'' in these rules) believes the demand is not justified;
    (3) Admit or deny each fact alleged in the demand and allege any 
facts upon which the Petitioner relies to show compliance with 
applicable laws and regulations; and,
    (4) Be accompanied by a copy of the demand.
    (c) Factual allegations that are not denied by the petition may be 
deemed to have been admitted. The demand and the petition (together with 
other documents authorized in this part)

[[Page 310]]

shall become the pleadings in appeals from demands.

[39 FR 33213, Sept. 16, 1974, as amended at 63 FR 66052, Dec. 1, 1998]



Sec. 959.6  Revocations of suspension.

    (a) The General Counsel, or a member of the General Counsel's staff 
as may be designated, may initiate a revocation of the suspension of the 
Private Express Statutes as provided in part 320 of this title as to any 
person, by filing, in triplicate, a petition with the Recorder which
    (1) Names the person involved;
    (2) States the legal authority under which the proceeding is 
initiated;
    (3) States the facts in a manner sufficient to enable the person 
named to make answer thereto; and,
    (4) Recommends the issuance of an appropriate order.
    (b) Answer. (1) The person named in the petition (designated the 
``Respondent'' in these rules) shall file an answer with the Recorder 
within 15 days after being served with a copy of the petition in 
accordance with Sec. 959.8.
    (2) The answer shall contain a concise statement admitting, denying, 
or explaining each of the allegations set forth in the petition.
    (3) Any facts alleged in the petition which are not denied, or which 
are expressly admitted in the answer, may be considered as proved, and 
no further evidence regarding these facts need be adduced at the 
hearing.
    (4) The answer shall be signed personally by an individual 
respondent, or in the case of a partnership, by one of the partners, or, 
in the case of a corporation or association, by an officer thereof.
    (5) The answer shall set forth the respondent's address and the name 
and address of respondent's attorney, if respondent is represented by 
counsel.
    (6) The answer shall affirmatively state whether the respondent will 
appear in person or by counsel at the hearing.
    (7) If the respondent does not desire to appear at the hearing in 
person or by counsel, the matter shall be deemed submitted for 
determination pursuant to paragraph (b) of Sec. 959.10.

[39 FR 33213, Sept. 16, 1974, as amended at 63 FR 66052, Dec. 1, 1998]



Sec. 959.7  Notice of hearing.

    When a petition is filed, the Recorder shall issue a notice of 
hearing, stating the time and place of the hearing and the date for 
filing an answer which shall not exceed 15 days from the date of service 
of the petition, and a reference to the effect of failure to file an 
answer or appear at the hearing. (See Sec. Sec. 959.5(c), 959.6(b), and 
959.10.) Whenever practicable, the hearing date shall be within 30 days 
of the date of the notice.

[39 FR 33213, Sept. 16, 1974, as amended at 63 FR 66052, Dec. 1, 1998]



Sec. 959.8  Service of petition filed under Sec. 959.6.

    (a) The Recorder shall cause a notice of hearing and a copy of the 
petition to be transmitted to the postmaster at any office of address of 
the respondent in which the respondent is doing business, which shall be 
delivered to the respondent or respondent's agent by said postmaster or 
the postmaster's designee. A receipt acknowledging delivery of the 
notice shall be secured from the respondent or respondent's agent and 
forwarded to the Recorder, to become a part of the official record.
    (b) If, after 5 days, the postmaster or the postmaster's designee, 
can find no person to accept service of the notice of hearing and 
petition pursuant to paragraph (a) of this section, the notice and copy 
of the petition may be delivered in the usual manner as other mail 
addressed to the respondent. A statement, showing the time and place of 
delivery, signed by the postal employee who delivered the notice of 
hearing and petition shall be forwarded to the Recorder and such 
statement shall constitute evidence of service.

[39 FR 33213, Sept. 16, 1974, as amended at 63 FR 66052, Dec. 1, 1998]



Sec. 959.9  Filing documents for the record.

    (a) Each party shall file with the Recorder pleadings, motions, 
orders and other documents for the record. The Recorder shall cause 
copies to be delivered promptly to other party(ies) to the proceeding 
and to the presiding officer.

[[Page 311]]

    (b) The parties shall submit three copies of all documents unless 
otherwise ordered by the presiding officer. One copy shall be signed as 
the original.
    (c) Documents shall be dated and state the title of the proceeding 
and, except initial petitions, the docket number. Any pleading or other 
document required by order of the presiding officer to be filed by a 
specified date, shall be delivered to the Recorder on or before such 
date. The date of filing shall be entered thereon by the Recorder.

[39 FR 33213, Sept. 16, 1974, as amended at 63 FR 66052, Dec. 1, 1998]



Sec. 959.10  Default.

    (a) If the respondent fails to file an answer within the time 
specified in the notice of hearing, the respondent shall be deemed in 
default and to have waived hearing and further procedural steps. The 
Judicial Officer shall thereafter issue an order without further notice 
to the respondent.
    (b) If the respondent files an answer but fails to appear at the 
hearing, the presiding officer shall receive petitioner's evidence and 
render an initial decision.

[39 FR 33213, Sept. 16, 1974, as amended at 63 FR 66052, Dec. 1, 1998]



Sec. 959.11  Amendment of pleadings.

    (a) Amendments proposed prior to the hearing shall be filed with the 
Recorder. Amendments proposed thereafter shall be filed with the 
presiding officer.
    (b) By consent of the parties, a pleading may be amended at any 
time. Also, a party may move to amend a pleading at any time prior to 
the close of the hearing and, provided that the amendment is reasonably 
within the scope of the proceeding initiated by the petition, the 
presiding officer shall make such ruling on the motion as he or she 
deems fair and equitable to the parties.
    (c) When issues not raised by the pleadings, but reasonably within 
the scope of the proceedings initiated by the petition, are tried by 
express or implied consent of the parties, they shall be treated in all 
respects as if they had been raised in the pleadings. Such amendments as 
may be necessary to make the pleadings conform to the evidence, and to 
raise such issues, shall be allowed at any time upon the motion of any 
party.
    (d) If a party objects to the introduction of evidence at the 
hearing on the ground that it is not within the issues made by the 
pleadings, but fails to satisfy the presiding officer that an amendment 
of the pleadings would prejudice the objecting party on the merits, the 
presiding officer may allow the amendment and may grant a continuance to 
enable the objecting party to rebut the evidence presented.
    (e) The presiding officer may, upon reasonable notice and upon such 
terms as are just, permit service of supplemental pleadings setting 
forth transactions, occurrences, or events which have happened since the 
date of the pleading sought to be supplemented and which are relevant to 
any of the issues involved.

[39 FR 33213, Sept. 16, 1974, as amended at 63 FR 66052, Dec. 1, 1998]



Sec. 959.12  Continuances and extensions.

    Continuances and extensions will not be granted by the presiding 
officer except for good cause found.



Sec. 959.13  Hearings.

    Hearings are held at 2101 Wilson Boulevard, Suite 600, Arlington, VA 
22201-3078, or other locations designated by the presiding officer.

[63 FR 66052, Dec. 1, 1998]



Sec. 959.14  Change of place of hearings.

    Not later than the date fixed for the filing of the answer, a party 
may file a written request that a hearing be held at a place other than 
that designated in the notice. The party shall support the request with 
a statement outlining:
    (a) The evidence to be offered in such place;
    (b) The names and addresses of the witnesses who will testify; and,
    (c) The reasons why such evidence cannot be produced at Arlington, 
VA.

[[Page 312]]

The presiding officer shall give consideration to the convenience and 
necessity of the parties and the relevancy of the evidence to be 
offered.

[39 FR 33213, Sept. 16, 1974, as amended at 63 FR 66052, Dec. 1, 1998]



Sec. 959.15  Appearances.

    (a) A respondent may appear and be heard in person or by attorney.
    (b) An attorney may practice before the Postal Service in accordance 
with the rules in part 951 of this title.
    (c) When a respondent is represented by an attorney, all pleadings 
and other papers subsequent to the initial petition shall be mailed to 
the attorney.
    (d) A respondent must promptly file a notice of change of attorney.



Sec. 959.16  Presiding officers.

    (a) The presiding officer shall be either an Administrative Law 
Judge qualified in accordance with law, or the Judicial Officer. The 
Chief Administrative Law Judge shall assign cases to Administrative Law 
Judges upon rotation so far as practicable. The Judicial Officer may, 
for good cause found, preside at the reception of evidence in 
proceedings upon request of either party.
    (b) The presiding officer shall have authority to:
    (1) Administer oaths and affirmations;
    (2) Examine witnesses;
    (3) Rule upon offers of proof, admissibility of evidence and matters 
of procedure;
    (4) Order any pleading amended upon motion of a party at any time 
prior to the close of the hearing;
    (5) Maintain discipline and decorum and exclude from the hearing any 
person acting in an indecorous manner;
    (6) Require the filing of briefs or memoranda of law on any matter 
upon which he or she is required to rule;
    (7) Order prehearing conferences for the purpose of settlement or 
simplification of issues by the parties;
    (8) Order the proceeding reopened at any time prior to his or her 
decision for the receipt of additional evidence; and,
    (9) Render an initial decision if the presiding officer is an 
Administrative Law Judge, which becomes the final decision of the Postal 
Service unless a timely appeal is taken; the Judicial Officer may issue 
a tentative or a final decision.

[39 FR 33213, Sept. 16, 1974, as amended at 63 FR 66052, Dec. 1, 1998]



Sec. 959.17  Evidence.

    (a) Except as otherwise provided in these rules, the rules of 
evidence governing civil proceedings in matters not involving trial by 
jury in the District courts of the United States shall govern. However, 
such rules may be relaxed to the extent that the presiding officer deems 
proper to insure a fair hearing. The presiding officer shall exclude 
irrelevant, immaterial or repetitious evidence.
    (b) Testimony shall be under oath or affirmation and witnesses shall 
be subject to cross-examination.
    (c) Agreed statements of fact may be received into evidence.
    (d) Official notice or knowledge may be taken of the types of 
matters of which judicial notice or knowledge may be taken.
    (e) The written statement of a competent witness may be received 
into evidence provided that such statement is relevant to the issues, 
that the witness shall testify under oath at the hearing that the 
statement is in all respects true, and, in the case of expert witnesses, 
that the statement correctly states his or her opinion or knowledge 
concerning the matters in question.
    (f) A party who objects to the admission of evidence shall make a 
brief statement of the grounds for the objection. Formal exceptions to 
the rulings of the presiding officer are unnecessary.

[39 FR 33213, Sept. 16, 1974, as amended at 63 FR 66052, Dec. 1, 1998]



Sec. 959.18  Subpoenas.

    The Postal Service is not authorized by law to issue subpoenas 
requiring the attendance or testimony of witnesses or the production of 
documents. This does not affect the authority of the Chief Postal 
Inspector to issue subpoenas for the production of documents or 
information pursuant to Sec. 233.1(c) of this chapter.

[39 FR 33213, Sept. 16, 1974, as amended at 56 FR 55825, Oct. 30, 1991]

[[Page 313]]



Sec. 959.19  Witness fees.

    The Postal Service does not pay fees and expenses for a respondent's 
witnesses or for depositions requested by a respondent.



Sec. 959.20  Depositions.

    (a) Not later than 5 days after the filing of respondent's answer, 
any party may file an application with the Recorder for the taking of 
testimony by deposition. In support of such application, the applicant 
shall submit under oath or affirmation, a statement containing the 
reasons why such testimony should be taken by deposition, the time and 
place, and the name and address of the witness whose deposition is 
desired, the subject matter of the testimony of each witness, its 
relevancy, and the name and address of the person before whom the 
deposition is to be taken.
    (b) If the application be granted, the order shall specify the time 
and place thereof, the name of the witness, the person before whom the 
deposition is to be taken, and any other necessary information.
    (c) Each deponent shall first be duly sworn, and the adverse party 
shall have the right to cross-examine. The questions and answers, 
together with all objections, shall be reduced to writing and, unless 
waived by stipulation of the parties, shall be read to and subscribed by 
the witness in the presence of the deposition officer who shall certify 
it in the usual form. The deposition officer shall file the testimony 
taken by deposition as directed in the order. All objections made at the 
time of examination shall be noted by the deposition officer and the 
evidence objected to shall be taken subject to the objections. In lieu 
of participating in the oral examination, a party may transmit written 
interrogatories to the deposition officer, who shall propound them to 
the witness and record the answers verbatim. Objections to relevancy or 
materiality of testimony, or to errors and irregularities occurring at 
the oral examination in the manner of taking the deposition, in the form 
or relevancy or materiality of the questions or answers, in the oath or 
affirmation, or in the conduct of the parties, and errors of any kind 
which might be obviated, cured or removed if promptly presented, are 
waived unless timely objection is made at the taking of the deposition.
    (d) At the hearing, any part or all of the deposition may be offered 
into evidence by any party who was present or represented at the taking 
of the deposition or who had notice thereof. If the deposition is not 
offered and received into evidence, it shall not be considered as a part 
of the record. The admissibility of depositions or parts thereof shall 
be governed by the rules of evidence.
    (e) The party requesting the deposition shall pay all fees required 
to be paid to witnesses and the deposition officer, and shall provide an 
original and one copy thereof for the official record, and shall serve 
one copy upon the opposing party.
    (f) Within the United States, or within a territory or possession 
subject to the dominion of the United States, depositions may be taken 
before an officer authorized to administer oaths by the laws of the 
United States or of the place where the examination is held; within a 
foreign country, depositions may be taken before a secretary of an 
embassy or legation, consul general, vice consul or consular agent of 
the United States, or any other person designated in the order for the 
taking of the deposition.
    (g) Depositions may also be taken and submitted on written 
interrogatories in substantially the same manner as depositions taken by 
oral examination. When a deposition is taken upon written 
interrogatories and cross-interrogatories, none of the parties shall be 
present or represented, and no person, other than the witness, a 
stenographic reporter, and the deposition officer, shall be present at 
the examination of the witness, which fact shall be certified by the 
deposition officer, who shall propound the interrogatories and cross-
interrogatories to the witness in their order and cause the testimony to 
be reduced to writing in the witness' own words.

[39 FR 33213, Sept. 16, 1974, as amended at 63 FR 66052, Dec. 1, 1998]

[[Page 314]]



Sec. 959.21  Transcript.

    (a) Hearings shall be stenographically reported by a contract 
reporter of the Postal Service under the supervision of the assigned 
presiding officer. Argument upon any matter may be excluded from the 
transcript by order of the presiding officer. A copy of the transcript 
shall be a part of the record and the sole official transcript of the 
proceeding. Copies of the transcript shall be supplied to the parties by 
the reporter at rates not to exceed the maximum rates fixed by the 
contract between the Postal Service and the reporter. Copies of parts of 
the official record, other than the transcript, may be obtained by the 
respondent from the reporter upon the payment of a reasonable price 
therefor.
    (b) Changes in the official transcript may be made only when they 
involve errors affecting substance, and then only in the manner herein 
provided. No physical changes shall be made in or upon the official 
transcript, or copies thereof, which have been filed with the record. 
Within 10 days after the receipt by any party of a copy of the official 
transcript, or any part thereof, a party may file a motion requesting 
correction of the transcript. The opposing party shall, within such time 
as may be specified by the presiding officer, notify the presiding 
officer in writing of his or her concurrence or disagreement with the 
requested corrections. Failure to interpose timely objection to a 
proposed correction shall be considered to be concurrence. Thereafter, 
the presiding officer shall by order specify the corrections to be made 
in the transcript. The presiding officer on his or her own initiative 
may order corrections to be made in the transcript with prompt notice to 
the parties of the proceeding. Any changes ordered by the presiding 
officer other than by agreement of the parties shall be subject to 
objection and exception.

[39 FR 33213, Sept. 16, 1974, as amended at 63 FR 66052, Dec. 1, 1998]



Sec. 959.22  Proposed findings and conclusions.

    (a) Each party, except one who fails to answer the complaint or, 
having answered, either fails to appear at the hearing or indicates in 
the answer that he or she does not desire to appear, may submit proposed 
findings of fact, conclusions of law and supporting reasons either in 
oral or written form. The presiding officer may also require the parties 
to submit proposed findings of fact and conclusions of law with 
supporting reasons.
    (b) Proposed findings of fact, conclusions of law and supporting 
reasons not presented orally before the close of the hearing, shall, 
unless otherwise directed by the presiding officer, be filed within 15 
days after the delivery of the official transcript to the Recorder, who 
shall notify the parties of the date of its receipt. The proposed 
findings of fact, conclusions of law and supporting reasons shall be set 
forth in serially numbered paragraphs, and shall state with 
particularity, all pertinent evidentiary facts in the record with 
appropriate citations to the transcript or exhibits supporting the 
proposed findings. Each proposed conclusion of law shall be separately 
stated.

[39 FR 33213, Sept. 16, 1974, as amended at 63 FR 66052, Dec. 1, 1998]



Sec. 959.23  Decisions.

    (a) Oral decisions. The presiding officer may, in his or her 
discretion, render an oral decision (an initial decision by an 
Administrative Law Judge, or a tentative or final decision by the 
Judicial Officer) at the close of the hearing. A party who desires an 
oral decision shall notify the presiding officer and the opposing party 
at least 5 days prior to the date set for the hearing. Either party may 
submit proposed findings of fact and conclusions of law either orally or 
in writing at the conclusion of the hearing.
    (b) Written initial decision by Administrative Law Judge. A written 
initial decision shall be rendered with all due speed. The initial 
decision shall include findings of fact and conclusions of law, with the 
reasons therefor, upon all the material issues of fact or law presented 
on the record, and an appropriate order. The initial decision shall 
become the final decision of the Postal Service unless an appeal is 
taken in accordance with Sec. 959.24.
    (c) Written tentative or final decision by the Judicial Officer. 
When the Judicial

[[Page 315]]

Officer presides at the hearing, he or she shall issue a final or a 
tentative decision. Such decision shall include findings of fact and 
conclusions of law, with the reasons therefor, upon all the material 
issues of fact or law presented on the record, and appropriate order. 
The tentative decision shall become the final decision of the Postal 
Service unless exceptions are filed in accordance with Sec. 959.24.

[39 FR 33213, Sept. 16, 1974, as amended at 63 FR 66052, Dec. 1, 1998]



Sec. 959.24  Exceptions to initial decision or tentative decision.

    (a) A party in a proceeding presided over by an Administrative Law 
Judge, except a party who failed to file an answer, may appeal to the 
Judicial Officer by filing exceptions in a brief on appeal within 15 
days from the receipt of the Administrative Law Judge's written initial 
decision.
    (b) A party in a proceeding presided over by the Judicial Officer, 
except one who has failed to file an answer, may file exceptions within 
15 days from the receipt of the Judicial Officer's written tentative 
decision.
    (c) When an initial or tentative decision is rendered orally at the 
close of the hearing, the presiding officer may then establish and 
orally give notice to the parties participating in the hearing of the 
time limit within which exceptions must be filed.
    (d) Upon receipt of the brief on appeal from an initial decision of 
an Administrative Law Judge, the Recorder shall promptly transmit the 
record to the Judicial Officer. The date for filing the reply to a brief 
on appeal or to a brief in support of exceptions to a tentative decision 
by the Judicial Officer is 10 days after the receipt thereof. No 
additional briefs shall be received unless requested by the Judicial 
Officer.
    (e) Briefs on appeal or in support of exceptions and replies thereto 
shall be filed in triplicate with the Recorder, and contain the 
following matter in the order indicated:
    (1) A subject index of the matters presented, with page references; 
a table of cases alphabetically arranged; a list of statutes and texts 
cited, with page references.
    (2) A concise abstract or statement of the case.
    (3) Numbered exceptions to specific findings of fact or conclusions 
of law of the presiding officer.
    (4) A concise argument clearly setting forth points of fact and of 
law relied upon in support of, or in opposition to, each exception 
taken, together with specific references to the pertinent parts of the 
record and the legal or other authorities relied upon.
    (f) Unless permission is granted by the Judicial Officer, no brief 
on appeal or in support of exceptions shall exceed 50 printed or 100 
typewritten pages double spaced.
    (g) The Judicial Officer will extend the time to file briefs only 
upon written motion for good cause found. The Recorder shall promptly 
notify the movant of the Judicial Officer's decision on the motion. If a 
brief is not filed within the time prescribed, the defaulting party will 
be deemed to have abandoned the appeal or waived the exceptions, and the 
initial or tentative decision shall become the final decision of the 
Postal Service.

[39 FR 33213, Sept. 16, 1974, as amended at 63 FR 66052, Dec. 1, 1998]



Sec. 959.25  Judicial Officer.

    The Judicial Officer is authorized (a) to act as presiding officer 
at hearings, (b) to render tentative decisions, (c) to render final 
decisions of the Postal Service, (d) to refer the record in any 
proceedings to the Postmaster General or the Deputy Postmaster General 
who will make the final decision of the Postal Service, and (e) to 
revise or amend these rules of practice. The entire official record will 
be considered before a final decision of the Postal Service is rendered. 
Before rendering a final decision of the Postal Service, the Judicial 
Officer may order the hearing reopened for the presentation of 
additional evidence by the parties.



Sec. 959.26  Motion for reconsideration.

    A party may file a motion for reconsideration of a final decision of 
the Postal Service within 10 days after receiving it, or within such 
longer period as the Judicial Officer may fix. Each motion for 
reconsideration shall be accompanied by a brief clearly setting

[[Page 316]]

forth the points of fact and of law relied upon in support of said 
motion.



Sec. 959.27  Modification or revocation of orders.

    A party against whom an order has been issued may file with the 
Recorder an application for modification or revocation, addressed to the 
Judicial Officer. The Recorder shall transmit a copy of the application 
to the General Counsel, who shall file a written reply within 10 days 
after filing, or such other period as the Judicial Officer may fix. A 
copy of the reply shall be sent to the applicant by the Recorder. 
Thereafter an order granting or denying such application in whole or in 
part will be issued by the Judicial Officer.

[39 FR 33213, Sept. 16, 1974, as amended at 63 FR 66052, Dec. 1, 1998]



Sec. 959.28  Computation of time.

    A designated period of time excludes the day the period begins, and 
includes the last day of the period unless the last day is a Saturday, 
Sunday, or legal holiday, in which event the period runs until the close 
of business on the next business day.



Sec. 959.29  Official record.

    The transcript of testimony together with all pleadings, orders, 
exhibits, briefs and other documents filed in the proceedings shall 
constitute the official record of the proceeding.



Sec. 959.30  Public information.

    The Librarian of the Postal Service maintains for public inspection 
in the Library copies of all initial, tentative and final decisions of 
the Postal Service. The Recorder maintains the complete official record 
of every proceeding.

[39 FR 33213, Sept. 16, 1974, as amended at 63 FR 66052, Dec. 1, 1998]



Sec. 959.31  Ex parte communications.

    The provisions of 5 U.S.C. 551(14), 556(d) and 557(d) prohibiting ex 
parte communications are made applicable to proceedings under these 
rules of practice.

[42 FR 5358, Jan. 28, 1977]



PART 960_RULES RELATIVE TO IMPLEMENTATION OF THE EQUAL ACCESS TO JUSTICE
ACT IN POSTAL SERVICE PROCEEDINGS--Table of Contents



                      Subpart A_General Provisions

Sec.
960.1 Purpose of these rules.
960.2 When the Act applies.
960.3 Proceedings covered.
960.4 Eligibility of applicants.
960.5 Standards for awards.
960.6 Allowable fees and expenses.
960.7 Rulemaking on maximum rates for attorney fees.
960.8 Official authorized to take final action under the Act.

             Subpart B_Information Required from Applicants

960.9 Contents of application.
960.10 Net worth exhibit.
960.11 Documentation of fees and expenses.
960.12 When an application may be filed.

            Subpart C_Procedures for Considering Applications

960.13 Filing and service of documents.
960.14 Answer to application.
960.15 Reply.
960.16 Comments by other parties.
960.17 Settlement.
960.18 Further proceedings.
960.19 Decision.
960.20 Further Postal Service review.
960.21 Judicial review.
960.22 Payment of award.

    Authority: 5 U.S.C. 504 (c)(1); 39 U.S.C. 204, 401 (2).

    Source: 46 FR 45945, Sept. 16, 1981, unless otherwise noted.



                      Subpart A_General Provisions



Sec. 960.1  Purpose of these rules.

    The Equal Access to Justice Act, 5 U.S.C. 504 (called ``the Act'' in 
this part), provides for the award of attorney fees and other expenses 
to eligible individuals and entities who are parties to certain 
administrative proceedings (called ``adversary adjudications'') before 
the Postal Service. An eligible party may receive an award when it 
prevails over the Postal Service, unless the Postal Service's position 
was substantially justified or special circumstances make an award 
unjust. The rules in this part describe the parties

[[Page 317]]

eligible for awards and the proceedings that are covered. They also 
explain how to apply for awards, and the procedures and standards that 
the Postal Service will use to make them.

[46 FR 45945, Sept. 16, 1981, as amended at 52 FR 6797, Mar. 5, 1987]



Sec. 960.2  When the Act applies.

    The Act applies to any adversary adjudication pending or commenced 
before the Postal Service on or after August 5, 1985. It also applies to 
any adversary adjudication commenced on or after October 1, 1984, and 
finally disposed of before August 5, 1985, provided that an application 
for fees and expenses, as described in subpart B of these rules, has 
been filed with the Postal Service within 30 days after August 5, 1985, 
and to any adversary adjudication pending on or commenced on or after 
October 1, 1981, in which an application for fees and other expenses was 
timely filed and was dismissed for lack of jurisdiction.

[52 FR 6797, Mar. 5, 1987]



Sec. 960.3  Proceedings covered.

    (a) The Act applies to adversary adjudications conducted by the 
Postal Service. These are:
    (1) Adjudications under 5 U.S.C. 554 in which the position of the 
Postal Service is presented by an attorney or other representative who 
enters an appearance and participates in the proceeding (for the Postal 
Service, the types of proceedings generally covered are proceedings 
relative to false representation and cease and desist orders and 
mailability under chapter 30 of title 39, U.S.C., with the exception of 
proceedings under 39 U.S.C. 3008); and
    (2) Appeals of decisions of contracting officers made pursuant to 
section 6 of the Contract Disputes Act of 1978 (41 U.S.C. 605) before 
the Postal Service Board of Contract Appeals as provided in section 8 of 
that Act. (41 U.S.C. 607).
    (b) The Postal Service may also designate a proceeding not listed in 
paragraph (a) of this section as an adversary adjudication for purposes 
of the Act by so stating in an order initiating the proceeding or 
designating the matter for hearing. The failure to designate a 
proceeding as an adversary adjudication shall not preclude the filing of 
an application by a party who believes the proceeding is covered by the 
Act; whether the proceeding is covered will then be an issue for 
resolution in proceedings on the application.
    (c) If a proceeding includes both matters covered by the Act and 
matters specifically excluded from coverage, any award made will include 
only fees and expenses related to covered issues.

[46 FR 45945, Sept. 16, 1981, as amended at 52 FR 6798, Mar. 5, 1987; 67 
FR 62179, Oct. 4, 2002]



Sec. 960.4  Eligibility of applicants.

    (a) To be eligible for an award of attorney fees and other expenses 
under the Act, the applicant must be a party to the adversary 
adjudication for which it seeks an award. The term ``party'' is defined 
in 5 U.S.C. 551(3). The applicant must show by clear and convincing 
evidence that it meets all conditions of eligibility set out in this 
subpart and in subpart B and must submit additional information to 
verify its eligibility upon order by the adjudicative officer.
    (b) The types of eligible applicants are as follows:
    (1) An individual with a net worth of not more than $2 million;
    (2) The sole owner of an unincorporated business who has a net worth 
of not more than $7 million, including both personal and business 
interests, and not more than 500 employees;
    (3) A charitable or other tax-exempt organization described in 
section 501(c)(3) of the Internal Revenue Code (26 U.S.C. 501(c)(3)) 
with not more than 500 employees;
    (4) A cooperative association as defined in section 15(a) of the 
Agricultural Marketing Act (12 U.S.C. 1141j(a)) with not more than 500 
employees; and
    (5) Any other partnerships, corporation, association, unit of local 
government, or organization with a net worth of not more than $7 million 
and not more than 500 employees.
    (c) For the purposes of eligibility, the net worth and number of 
employees of an applicant shall be determined as of the date the 
proceeding was initiated, which in proceedings before the Board of 
Contract Appeals is the date the applicant files its appeal to the 
Board.

[[Page 318]]

    (d) An applicant who owns an unincorporated business will be 
considered as an ``individual'' rather than a ``sole owner of an 
unincorporated business'' if the issues on which the applicant prevails 
are related primarily to personal interests rather than to business 
interests.
    (e) The employees of an applicant include all persons who regularly 
perform services for remuneration for the applicant, under the 
applicant's direction and control. Part-time employees shall be included 
on a proportional basis.
    (f) The net worth and number of employees of the applicant and all 
of its affiliates shall be aggregated to determine eligibility. Any 
individual, corporation or other entity that directly or indirectly 
controls or owns a majority of the voting shares or other interest of 
the applicant, or any corporation or other entity of which the applicant 
directly or indirectly owns or controls a majority of the voting shares 
or other interest, will be considered an affiliate for purposes of this 
part, unless the adjudicative officer determines that such treatment 
would be unjust and contrary to the purposes of the Act in light of the 
actual relationship between the affiliated entities. In addition, the 
adjudicative officer may determine that financial relationships of the 
applicant other than those described in this paragraph constitute 
special circumstances that would make an award unjust.
    (g) An applicant that participates in a proceeding primarily on 
behalf of one or more other persons or entities that would be ineligible 
is not itself eligible for an award.

[46 FR 45945, Sept. 16, 1981, as amended at 52 FR 6798, Mar. 5, 1987]



Sec. 960.5  Standards for awards.

    (a) A prevailing applicant may receive an award for fees and 
expenses incurred in connection with a proceeding, including expenses 
and fees incurred in filing for an award under the Act, or in a 
significant and discrete substantive portion of the proceeding, unless 
the position of the agency over which the applicant has prevailed was 
substantially justified. The position of the agency includes in addition 
to the position taken by the agency in the adversary adjudication, the 
action or failure to act by the agency upon which the adversary 
adjudication is based. The burden of proof that an award should not be 
made to an eligible prevailing applicant is on Postal Service counsel.
    (b) An award will be reduced or denied if the applicant has unduly 
or unreasonably protracted the proceeding or if special circumstances 
make the award sought unjust.

[46 FR 45945, Sept. 16, 1981, as amended at 52 FR 6798, Mar. 5, 1987]



Sec. 960.6  Allowable fees and expenses.

    (a) Awards will be based on rates customarily charged by persons 
engaged in the business of acting as attorneys, agents and expert 
witnesses, even if the services were made available without charge or at 
a reduced rate to the applicant. Attorney fees may not be recovered by 
parties appearing pro se in postal proceedings.
    (b) No award for the fee of an attorney or agent under these rules 
may exceed $125.00 per hour, or such rate as prescribed by 5 U.S.C. 504. 
No award to compensate an expert witness may exceed the highest rate at 
which the Postal Service pays expert witnesses. However, an award may 
also include the reasonable expenses of the attorney, agent, or witness 
as a separate item, if the attorney, agent or witness ordinarily charges 
clients separately for such expenses.
    (c) In determining the reasonableness of the fee sought for an 
attorney, agent or expert witness, the adjudicative officer shall 
consider the following:
    (1) If the attorney, agent or witness is in private practice, his or 
her customary fee for similar services, or, if an employee of the 
applicant, the fully allocated cost of the services;
    (2) The prevailing rate for similar services in the community in 
which the attorney, agent or witness ordinarily performs services;
    (3) The time actually spent in the representation of the applicant;
    (4) The time reasonably spent in light of the difficulty or 
complexity of the issues in the proceeding; and
    (5) Such other factors as may bear on the value of the services 
provided.

[[Page 319]]

    (d) The reasonable cost of any study, analysis, engineering report, 
test, project or similar matter prepared on behalf of a party may be 
awarded, to the extent that the charge for the service does not exceed 
the prevailing rate for similar services, and the study or other matter 
was necessary for preparation of the applicant's case.

[46 FR 45945, Sept. 16, 1981, as amended at 52 FR 6798, Mar. 5, 1987; 66 
FR 55577, Nov. 2, 2001]



Sec. 960.7  Rulemaking on maximum rates for attorney fees.

    (a) If warranted by an increase in the cost of living or by special 
circumstances (such as limited availability of attorneys qualified to 
handle certain types of proceedings), the Postal Service may adopt 
regulations providing that attorney fees may be awarded at a rate higher 
than $125.00 per hour, or such rate as prescribed by 5 U.S.C. 504, in 
some or all of the types of proceedings covered by this part. The Postal 
Service will conduct any rulemaking proceedings for this purpose under 
the informal rulemaking procedures of the Administrative Procedure Act.
    (b) Any person may request the Postal Service to initiate a 
rulemaking proceeding to increase the maximum rate for attorney fees. 
The request should identify the rate the person believes the Postal 
Service should establish and the types of proceedings in which the rate 
should be used. It should also explain fully the reasons why the higher 
rate is warranted. The Postal Service will respond to the request within 
60 days after it is filed, by determining to initiate a rulemaking 
proceeding, denying the request, or taking other appropriate action.

[46 FR 45945, Sept. 16, 1981, as amended at 66 FR 55577, Nov. 2, 2001]



Sec. 960.8  Official authorized to take final action under the Act.

    The Postal Service official who renders the final agency decision in 
a proceeding under Sec. 952.26 or Sec. 953.15, or the panel that 
renders the decision in an appeal before the Board of Contract Appeals 
under part 955 procedures, as the case may be, is authorized to take 
final action on matters pertaining to the Equal Access to Justice Act as 
applied to the proceeding.

[52 FR 6798, Mar. 5, 1987]



             Subpart B_Information Required From Applicants



Sec. 960.9  Contents of application.

    (a) An application for an award of fees and expenses under the Act 
shall identify the applicant and the proceeding for which an award is 
sought. The application shall show that the applicant has prevailed and 
identify the position of the Postal Service in the proceeding that the 
applicant alleges was not substantially justified. Unless the applicant 
is an individual, the application shall also state the number of 
employees of the applicant and describe briefly the type and purpose of 
its organization or business.
    (b) The application shall also include a statement that the 
applicant's net worth does not exceed $2 million (if an individual) or 
$7 million (for all other applicants, including their affiliates.) 
However, an applicant may omit this statement if:
    (1) It attaches a copy of a ruling by the Internal Revenue Service 
that it qualifies as an organization described in section 501(c)(3) of 
the Internal Revenue Code (26 U.S.C. 501(c)(3)) or, in the case of a 
tax-exempt organization not required to obtain a ruling from the 
Internal Revenue Service on its exempt status, a statement that 
describes the basis for the applicant's belief that it qualifies under 
such section; or
    (2) It states on the application that it is a cooperative 
association as defined in section 15(a) of the Agricultural Marketing 
Act (12 U.S.C. 1141j(a)).
    (c) The application shall state the amount of fees and expenses for 
which an award is sought.
    (d) The application may also include any other matters that the 
applicant wishes the Postal Service to consider in determining whether 
and in what amount an award should be made.
    (e) The application shall be signed by the applicant or an 
authorized officer or attorney of the applicant. It shall also contain 
or be accompanied by a written verification under oath or

[[Page 320]]

under penalty of perjury that the information provided in the 
application is true and correct.

[46 FR 45945, Sept. 16, 1981, as amended at 52 FR 6798, Mar. 5, 1987]



Sec. 960.10  Net worth exhibit.

    (a) Each applicant except a qualified tax-exempt organization or 
cooperative association must provide with its application a detailed 
exhibit showing the net worth of the applicant and any affiliates (as 
defined in Sec. 960.4(f)) when the proceeding was initiated. The 
exhibit may be in any form convenient to the applicant that provides 
full disclosure of the applicant's and its affiliates' assets and 
liabilities and is sufficient to determine whether the applicant 
qualifies under the standards in this part. The adjudicative officer may 
require an applicant to file additional information to determine its 
eligibility for an award.
    (b) Ordinarily, the net worth exhibit will be included in the public 
record of the proceeding. However, an applicant that objects to public 
disclosure of information in any portion of the exhibit and believes 
there are legal grounds for withholding it from disclosure may submit 
that portion of the exhibit directly to the adjudicative officer in a 
sealed envelope labeled ``Confidential Financial Information'', 
accompanied by a motion to withhold the information from public 
disclosure. The motion shall describe the information sought to be 
withheld and explain, in detail, why it falls within one or more of the 
specific exemptions from mandatory disclosure under the Freedom of 
Information Act, 5 U.S.C. 552(b) (1) through (9), why public disclosure 
of the information would adversely affect the applicant, and why 
disclosure is not required in the public interest. The material in 
question shall be served on counsel representing the agency against 
which the applicant seeks an award, but need not be served on any other 
party to the proceeding. If the adjudicative officer finds that the 
information should not be withheld from disclosure, it shall be placed 
in the public record of the proceeding. Otherwise, any request to 
inspect or copy the exhibit shall be disposed of in accordance with the 
Postal Service's established procedures under the Freedom of Information 
Act, part 265 of this title.



Sec. 960.11  Documentation of fees and expenses.

    (a) The application shall be accompanied by full documentation of 
the fees and expenses, including the cost of any study, analysis, 
engineering report, test, project or similar matter, for which an award 
is sought. A separate itemized statement shall be submitted for each 
professional firm or individual whose services are covered by the 
application, showing the hours spent in connection with the proceeding 
by each individual, a description of the specific services performed, 
the rate at which each fee has been computed, any expenses for which 
reimbursement is sought, the total amount claimed, and the total amount 
paid or payable by the applicant or by any other person or entity for 
the services provided. The adjudicative officer may require the 
applicant to provide vouchers, receipts, or other substantiation for any 
expenses claimed. In addition, the Board of Contract Appeals may require 
an applicant to submit to an audit by the Postal Service of its claimed 
fees and expenses.
    (b) Where the case has been sustained in part and denied in part or 
where the applicant has prevailed in only a significant and discrete 
substantive portion of the case, the application must be limited to fees 
and expenses allocable to the portion of the case as to which the 
applicant was the prevailing party.

[46 FR 45945, Sept. 16, 1981, as amended at 52 FR 6798, Mar. 5, 1987]



Sec. 960.12  When an application may be filed.

    (a) An application may be filed whenever the applicant has prevailed 
in the proceeding or in a significant and discrete substantive portion 
of the proceeding, but in no case later than 30 days after the Postal 
Service's final disposition of the proceeding.
    (b) If review or reconsideration is sought or taken of a decision as 
to which an applicant believes it has prevailed, proceedings for the 
award of

[[Page 321]]

fees shall be stayed pending final disposition of the underlying 
controversy.
    (c) For purposes of this rule, final disposition means the later of 
(1) the date on which an initial decision or other recommended 
disposition of the merits of the proceeding by an adjudicative officer 
or intermediate review board becomes administratively final;
    (2) Issuance of an order disposing of any petitions for 
reconsideration of the Postal Service's final order in the proceeding;
    (3) If no petition for reconsideration is filed, the last date on 
which such a petition could have been filed;
    (4) Issuance of a final order or any other final resolution of a 
proceeding, such as a settlement or voluntary dismissal, which is not 
subject to a petition for reconsideration;
    (5) In proceedings under 39 U.S.C. 3005, on the date that an 
Administrative Law Judge enters an order indefinitely suspending further 
proceedings on the basis of a compromise agreement entered into between 
the parties; or
    (6) In proceedings before the Board of Contract Appeals, the Board 
of Contract Appeals decision on quantum. When the Board decides only 
entitlement and remands the issue of quantum to the parties, the final 
disposition occurs when the parties execute an agreement on quantum, or 
if the parties cannot agree on quantum and resubmit the quantum dispute 
to the Board, when the Board issues a decision on quantum.

[46 FR 45945, Sept. 16, 1981, as amended at 52 FR 6798, Mar. 5, 1987]



            Subpart C_Procedures for Considering Applications



Sec. 960.13  Filing and service of documents.

    Any application for an award or other pleading or document related 
to an application shall be filed and served on all parties to the 
proceeding in the same manner as other pleadings in the proceeding, 
except as provided in Sec. 960.11(b) for confidential financial 
information.



Sec. 960.14  Answer to application.

    (a) Within 30 days after service of an application, counsel 
representing the Postal Service may file an answer to the application. 
Unless the Postal Service counsel requests an extension of time for 
filing or files a statement of intent to negotiate under paragraph (b) 
of this section, failure to file an answer within the 30-day period may 
be treated as a consent to the award requested.
    (b) If the Postal Service counsel and the applicant believe that the 
issues in the fee application can be settled, they may jointly file a 
statement of their intent to negotiate a settlement. The filing of this 
statement shall extend the time for filing an answer for an additional 
30 days, and further extensions may be granted by the adjudicative 
officer upon request by Postal Service counsel and the applicant.
    (c) The answer shall explain in detail any objections to the award 
requested and identify the facts relied on in support of the Postal 
Service's position. If the answer is based on any alleged facts not 
already in the record of the proceeding, the Postal Service shall 
include with the answer either supporting affidavits or a request for 
further proceedings under Sec. 960.19.



Sec. 960.15  Reply.

    Within 15 days after service of an answer, the applicant may file a 
reply. If the reply is based on any alleged facts not already in the 
record of the proceeding, the applicant shall include with the reply 
either supporting affidavits or a request for further proceedings under 
Sec. 960.19.



Sec. 960.16  Comments by other parties.

    Any party to a proceeding other than the applicant and Postal 
Service may file comments on an application within 30 days after it is 
served or on an answer within 15 days after it is served. A commenting 
party may not participate further in proceedings on the application 
unless the adjudicative officer determines that the public interest 
requires such participation in order to permit full exploration of 
matters raised in the comments.

[[Page 322]]



Sec. 960.17  Settlement.

    The applicant and the Postal Service may agree on a proposed 
settlement of the award before final action on the application, either 
in connection with a settlement of the underlying proceeding, or after 
the underlying proceeding has been concluded. If a prevailing party and 
Postal Service counsel agree on a proposed settlement of an award before 
an application has been filed, the application shall be filed with the 
proposed settlement.



Sec. 960.18  Further proceedings.

    (a) Ordinarily, the determination of an award will be made on the 
basis of the written record. However, on request of either the applicant 
or Postal Service counsel, or on his or her own initiative, the 
adjudicative officer may order further proceedings, such as an informal 
conference, oral argument, additional written submissions, or an 
evidentiary hearing. Such further proceedings shall be held only when 
necessary for full and fair resolution of the issues arising from the 
application, and shall be conducted as promptly as possible. Whether or 
not the position of the agency was substantially justified shall be 
determined on the basis of the entire administrative record that is made 
in the adversary adjudication for which fees and other expenses are 
sought.
    (b) A request that the adjudicative officer order further 
proceedings under this section shall specifically identify the 
information sought or the disputed issues and shall explain why the 
additional proceedings are necessary to resolve the issues.

[46 FR 45945, Sept. 16, 1981, as amended at 52 FR 6798, Mar. 5, 1987]



Sec. 960.19  Decision.

    (a) The adjudicative officer shall issue an initial decision on the 
application as promptly as possible after completion of proceedings on 
the application. The decision shall include written findings and 
conclusions on the applicant's eligibility and status as a prevailing 
party, and an explanation of the reasons for any difference between the 
amount requested and the amount awarded. The decision shall also 
include, if at issue, findings on whether the Postal Service's position 
was substantially justified, whether the applicant unduly protracted the 
proceedings, or whether special circumstances make an award unjust. If 
the applicant has sought an award against the Postal Service and another 
agency, the decision shall allocate responsibility for payment of any 
award made between the Postal Service and the other agency, and shall 
explain the reasons for the allocation made.
    (b) The Board of Contract Appeals shall issue its decision on the 
application as promptly as possible after completion of proceedings on 
the application. Whenever possible, the decision shall be made by the 
same Administrative Judge or panel that decided the contract appeal for 
which fees are sought. The decision shall be in the format described in 
paragraph (a) of this section.

[46 FR 45945, Sept. 16, 1981, as amended at 52 FR 6798, Mar. 5, 1987]



Sec. 960.20  Further Postal Service review.

    (a) Either the applicant or Postal Service counsel may seek review 
of the initial decision on the fee application, in accordance with Sec. 
952.25 or Sec. 953.14. If neither the applicant nor the Postal Service 
counsel seeks review, the initial decision on the application shall 
become a final decision of the Postal Service 30 days after it is 
issued. If review is taken, the Judicial Officer will issue a final 
decision on the application or remand the application to the 
adjudicative officer for further proceedings.
    (b) In Board of Contract Appeals proceedings, either party may seek 
reconsideration of the decision on the fee application in accordance 
with 39 CFR 955.30.

[46 FR 45945, Sept. 16, 1981, as amended at 52 FR 6798, Mar. 5, 1987]



Sec. 960.21  Judicial review.

    A party other than the Postal Service may, within 30 days after a 
determination on the award is made, appeal the determination to the 
court of the

[[Page 323]]

United States having jurisdiction to review the merits of the underlying 
decision of the agency adversary adjudication in accordance with 5 
U.S.C. 504(c)(2).

[52 FR 6799, Mar. 5, 1987]



Sec. 960.22  Payment of award.

    An applicant seeking payment of an award shall submit to the 
Judicial Officer a copy of the Postal Service's final decision granting 
the award, accompanied by a statement that the applicant will not seek 
review of the decision in the United States courts. Requests for payment 
should be sent to: Judicial Officer, 2101 Wilson Boulevard, Suite 600, 
Arlington, VA 22201-3078. The Judicial Officer shall submit 
certification for payment to the Postal Data Center. The Postal Service 
will pay the amount awarded to the applicant within 60 days, unless 
judicial review of the award or of the underlying decision of the 
adversary adjudication has been sought by the applicant or any other 
party to the proceeding.

[46 FR 45945, Sept. 16, 1981, as amended at 63 FR 66052, Dec. 1, 1998]



PART 961_RULES OF PRACTICE IN PROCEEDINGS RELATIVE TO EMPLOYEE HEARING 
PETITIONS UNDER SECTION 5 OF THE DEBT COLLECTION ACT--Table of Contents



Sec.
961.1 Authority for rules.
961.2 Scope of rules.
961.3 Definitions.
961.4 Employee petition for a hearing and supplement to petition.
961.5 Effect of Petition filing.
961.6 Filing, docketing and serving documents; computation of time; 
          representation of parties.
961.7 Answer to Petition and Supplement to Petition.
961.8 Hearing Official authority and responsibilities.
961.9 Effect of Hearing Official's decision; motion for reconsideration.
961.10 Waiver of employee rights.
961.11 Ex parte communications.

    Authority: 39 U.S.C. 204, 401; 5 U.S.C. 5514(a).

    Source: 51 FR 1251, Jan. 10, 1986, unless otherwise noted.



Sec. 961.1  Authority for rules.

    These rules are issued by the Judicial Officer pursuant to authority 
delegated by the Postmaster General.



Sec. 961.2  Scope of rules.

    The rules in this part apply to the hearing provided by section 5 of 
the Debt Collection Act of 1982, as amended, 5 U.S.C. 5514(a), on the 
Postal Service's determination of the existence or amount of an employee 
debt to the Postal Service, or of the terms of the employee's debt 
repayment schedule. In addition, these rules, as appropriate, apply to a 
hearing under section 5 of the Debt Collection Act when an 
Administrative Law Judge or an Administrative Judge in the Judicial 
Officer Department is designated as the Hearing Official for a creditor 
Federal agency other than the Postal Service pursuant to an agreement 
between the Postal Service and that agency.



Sec. 961.3  Definitions.

    (a) Employee refers to a current employee of the Postal Service or 
another Federal agency who is alleged to be indebted to the Postal 
Service or another creditor Federal agency and whose hearing under 
section 5 of the Debt Collection Act is being conducted under these 
rules.
    (b) General Counsel refers to the General Counsel of the Postal 
Service, and includes a designated representative.
    (c) Hearing Official refers to an Administrative Law Judge qualified 
to hear cases under the Administrative Procedure Act, an Administrative 
Judge appointed under the Contract Disputes Act of 1978, or any other 
qualified person not under the control or supervision of the Postmaster 
General, who is designated by the Judicial Officer to conduct the 
hearing under section 5 of the Debt Collection Act of 1982, as amended, 
5 U.S.C. 5514(a).
    (d) Judicial Officer refers to the Judicial Officer or Acting 
Judicial Officer of the United States Postal Service.
    (e) Notice of Involuntary Administrative Salary Offsets Under the 
Debt Collection Act refers to the formal written notice required by 
section 5 of the Debt Collection Act before involuntary collection 
deductions can be taken from an employee's salary.

[[Page 324]]

    (f) Postmaster/Installation Head refers to the Postal Service 
official who is authorized under the Postal Service Employee and Labor 
Relations Manual to make the initial determination of employee 
indebtedness and to issue the ``Notice of Involuntary Administrative 
Salary Offsets Under the Debt Collection Act.''
    (g) Recorder refers to the Recorder, Judicial Officer Department, 
U.S. Postal Service, 2101 Wilson Boulevard, Suite 600, Arlington, VA 
22201-3078.

[51 FR 1251, Jan. 10, 1986, as amended at 63 FR 66053, Dec. 1, 1998]



Sec. 961.4  Employee petition for a hearing and supplement to petition.

    (a) If an employee desires a hearing, prescribed by section 5 of the 
Debt Collection Act, on the Postal Service's determination of the 
existence or amount of a debt, or on the involuntary repayment terms 
proposed by the Postal Service, the employee must file a written, signed 
petition with the Recorder, Judicial Officer Department, U.S. Postal 
Service, 2101 Wilson Boulevard, Suite 600, Arlington, VA 22201-3078, on 
or before the fifteenth (15th) calendar day following the employee's 
receipt of the Postal Service's ``Notice of Involuntary Administrative 
Salary Offsets Under the Debt Collection Act.''
    (b) The hearing petition is to include the following:
    (1) The words, ``Petition for Hearing Under the Debt Collection 
Act,'' prominently captioned at the top of the first page:
    (2) The name of the employee petitioner and the employee's work and 
home addresses, and work and home telephone numbers; or other address 
and telephone number where the employee may be contacted about the 
hearing proceedings;
    (3) A statement of the date the employee received the ``Notice of 
Involuntary Administrative Salary Offsets Under the Debt Collection 
Act,'' and a copy of the Notice;
    (4) A statement indicating whether the employee requests an oral 
hearing or a hearing based solely on written submissions;
    (5) If the employee requests an oral hearing, a statement of the 
evidence he or she will produce which makes an oral hearing necessary, 
including a list of witnesses, with their addresses, whom the employee 
expects to call; the proposed city for the hearing site, with 
justification for holding the hearing in that city; and recommended 
alternative dates for the hearing; which should be within 40 days from 
filing the Petition;
    (6) A statement of the grounds upon which the employee objects to 
the Postal Service's determination of the existence or amount of the 
debt, or to the proposed offset schedule. This statement should identify 
and explain with reasonable specificity and brevity the facts, evidence, 
and legal arguments, if any, which the employee believes support his or 
her position;
    (7) Copies of all records in the employee's possession which relate 
to the debt; and
    (8) If an employee contends that the Postal Service's proposed 
offset schedule would result in a severe financial hardship on the 
employee and his or her spouse and dependents, an alternative offset 
schedule, and a statement and supporting documents indicating for the 
employee and his or her spouse and dependents for the one year preceding 
the Postal Service's notice and for the repayment period proposed by the 
employee in his or her alternative offset schedule, their total income 
from all sources; assets; liabilities; number of dependents; and 
expenses for food, housing, clothing, transportation, medical care, and 
exceptional expenses, if any.
    (c) The employee may, if necessary, file with the Recorder, 
additional information as a Supplement to the Petition on or before the 
thirtieth (30th) calendar day following the employee's receipt of the 
Postal Service's ``Notice of Involuntary Administrative Salary Offsets 
Under the Debt Collection Act.''

[51 FR 1251, Jan. 10, 1986, as amended at 63 FR 66053, Dec. 1, 1998]



Sec. 961.5  Effect of Petition filing.

    Upon receipt and docketing of the employee's Petition for a hearing, 
the Recorder will notify the Postmaster/Installation Head and the 
General Counsel that the Petition has been filed and that pursuant to 
section 5 of the Debt

[[Page 325]]

Collection Act, a timely-filed Petition for a hearing stays further 
collection action.



Sec. 961.6  Filing, docketing and serving documents; computation of 
time; representation of parties.

    (a) Filing. All documents relating to the Debt Collection Act 
hearing proceedings must be filed by the employee or the General Counsel 
with the Recorder. (Normal Recorder office business hours are between 
8:15 a.m. and 4:45 p.m., eastern standard or day-light saving time as 
appropriate during the year.) The Recorder will transmit a copy of each 
document filed to the other party, and the original to the Hearing 
Official.
    (b) Docketing. The Recorder will maintain a docket record of Debt 
Collection Act hearing petition proceedings and will assign each 
employee Petition a docket number. After notification of the docket 
number, the employee and General Counsel should refer to it on any 
further filings regarding the Petition.
    (c) Time computation. A filing period under the rules in this part 
excludes the day the period begins, and includes the last day of the 
period unless the last day is a Saturday, Sunday, or legal holiday, in 
which event the period runs until the close of business on the next 
business day.
    (d) Representation of parties. After the filing of the Petition, 
further document transmittals for, or communications with, the 
Postmaster/Installation Head or Postal Service shall be through their 
representative, the General Counsel, or, if an appropriate notice of 
appearance is filed, the General Counsel's designee. If a notice of 
appearance by an attorney authorized to practice law in any of the 
United States or the District of Columbia or a territory of the United 
States is filed in behalf of an employee, further transmissions of 
documents and other communications with the employee shall be made 
through his or her attorney rather than directly with the employee.



Sec. 961.7  Answer to Petition and Supplement to Petition.

    If the employee's Petition states reasons to support the employee's 
position, within 15 days from notice of the Petition, the General 
Counsel shall file an Answer to the Petition, and attach all available 
relevant records and documents in support of the Postal Service's claim, 
and a list of witnesses the Postal Service intends to call if an oral 
hearing is granted. If the employee files a Supplement to the Petition, 
the General Counsel, within ten (10) calendar days from the filing of 
the Supplement with the Recorder must file any Supplemental Answer and 
records to support the position of the Postal Service.



Sec. 961.8  Hearing Official authority and responsibilities.

    The Hearing Official shall provide a full and fair hearing. The 
proceedings must be expedited to ensure issuance of the final decision 
no later than 60 days after the filing of the employee's hearing 
Petition. The Hearing Official's authority includes, but is not limited 
to, the following:
    (a) Ruling on all offers, motions or requests by the parties;
    (b) Issuing any notices, orders or memoranda to the parties 
concerning the hearing proceedings;
    (c) Using telephone conferences with the parties to expedite the 
proceedings. A memorandum of a telephone conference will be transmitted 
to both parties;
    (d) Determining if an oral hearing should be held; and setting the 
place, date and time for the hearing or the taking of testimony by 
telephone conference;
    (e) Administering oaths or affirmations to witnesses, and conducting 
the hearing in a manner to maintain discipline and decorum while 
assuring that relevant, reliable and probative evidence is elicited on 
the issues in dispute, but irrelevant, immaterial or repetitious 
evidence is excluded;
    (f) Establishing the record in the case;
    (g) Issuing the final decision orally or in writing no later than 
sixty (60) days after the filing of the employee's hearing Petition. 
When an oral decision is rendered, a written confirmation will 
thereafter be sent to the parties. The decision must include the 
determination of the amount and validity of the

[[Page 326]]

alleged debt and, where applicable, the repayment schedule. It should 
also include findings and reasons.



Sec. 961.9  Effect of Hearing Official's decision; motion for 
reconsideration.

    The Hearing Official's decision shall be the final administrative 
determination on the employee's debt or repayment schedule. No 
reconsideration of the decision will be allowed unless a motion for 
reconsideration is filed by either party within 10 days from receipt of 
the decision and shows good reasons for reconsideration. Reconsideration 
will be allowed only in the discretion of the Hearing Official. A motion 
for reconsideration by the employee will not operate to stay the 
collection action authorized by the Hearing Official's decision.



Sec. 961.10  Waiver of employee rights.

    The Hearing Official may determine the employee has waived his or 
her right to a hearing and the employee's pay shall be offset in 
accordance with the Postal Service's offset schedule, if the employee:
    (a) Files a Petition for hearing after the end of the 15-day period 
allowed by the Act for filing the Petition, and fails to demonstrate to 
the satisfaction of the Hearing Official good cause for the delay;
    (b) Has received notice to appear at an oral hearing but fails to do 
so without showing circumstances beyond the employee's control;
    (c) Fails to file required submissions or to comply with orders of 
the Hearing Official, and the failure makes it difficult or impossible 
to hold the hearing or to issue the decision within the statutory time;
    (d) Files a withdrawal of his or her Petition for a hearing with the 
Recorder.



Sec. 961.11  Ex parte communications.

    Ex parte communications between a Hearing Official or his staff and 
a party shall not be made. This prohibition does not apply to procedural 
matters. A memorandum of any communication between the Hearing Official 
and a party will be transmitted to both parties.



PART 962_RULES OF PRACTICE IN PROCEEDINGS RELATIVE TO THE PROGRAM 
FRAUD CIVIL REMEDIES ACT--Table of Contents



Sec.
962.1 Purpose.
962.2 Definitions.
962.3 Petition for hearing.
962.4 Referral of complaint.
962.5 Scope of hearing; evidentiary standard.
962.6 Notice of hearing.
962.7 Hearing location.
962.8 Rights of parties.
962.9 Responsibilities and authority of presiding officer.
962.10 Prehearing conferences.
962.11 Respondent access to information.
962.12 Depositions; interrogatories; admission of facts; production and 
          inspection of documents.
962.13 Subpoenas.
962.14 Enforcement of subpoenas.
962.15 Sanctions.
962.16 Disqualification of reviewing official or presiding official.
962.17 Ex parte communications.
962.18 Post-hearing briefs.
962.19 Transcript of proceedings.
962.20 Initial decision.
962.21 Appeal of initial decision to judicial officer.
962.22 Form and filing of documents.
962.23 Service of notice of hearing, other documents.
962.24 Computation of time.
962.25 Continuances and extensions.
962.26 Settlement.
962.27 Limitations.

    Authority: 31 U.S.C. Chapter 38; 39 U.S.C. 401.

    Source: 52 FR 12904, Apr. 20, 1987, unless otherwise noted.



Sec. 962.1  Purpose.

    This part establishes the procedures governing the hearing and 
appeal rights of any person alleged to be liable for civil penalties and 
assessments under the Program Fraud Civil Remedies Act of 1986 (codified 
at 31 U.S.C. 3801-3812).



Sec. 962.2  Definitions.

    (a) Attorney refers to an individual authorized to practice law in 
any of the United States or the District of Columbia or a territory of 
the United States.

[[Page 327]]

    (b) Complaint refers to the administrative Complaint served by the 
Reviewing Official on a Respondent pursuant to Sec. 273.8 of this 
title.
    (c) Initial Decision refers to the written decision which the 
Presiding Officer is required by Sec. 962.20 to render, and includes a 
revised initial decision issued following a remand.
    (d) Investigating Official refers to the Inspector General of the 
United States Postal Service or any designee within the Office of the 
Inspector General.
    (e) Judicial Officer refers to the Judicial Officer or Acting 
Judicial Officer of the United States Postal Service or for purposes 
other than specified in Sec. 962.21 any designee within the Judicial 
Officer Department.
    (f) Party refers to the Postal Service or the Respondent.
    (g) Person refers to any individual, partnership, corporation, 
association, or private organization.
    (h) Postmaster General refers to the Postmaster General of the 
United States or his designee.
    (i) Presiding Officer refers to an Administrative Law Judge 
designated by the Judicial Officer to conduct a hearing authorized by 31 
U.S.C. 3803.
    (j) Recorder refers to the Recorder of the United States Postal 
Service, 2101 Wilson Boulevard, Suite 600, Arlington, VA 22201-3078.
    (k) Representative refers to an attorney or other advocate.
    (l) Respondent refers to any person alleged to be liable for a civil 
penalty or assessment under 31 U.S.C. 3802.
    (m) Reviewing Official refers to the General Counsel of the Postal 
Service or any designee within the Law Department who serves in a 
position for which the rate of basic pay is not less than the minimum 
rate payable under section 5376 of title 5 of the United States Code.

[52 FR 12904, Apr. 20, 1987, as amended at 63 FR 66053, Dec. 1, 1998; 67 
FR 62179, Oct. 4, 2002]



Sec. 962.3  Petition for hearing.

    Within 30 days of receiving the Postal Service's Complaint, issued 
pursuant to Sec. 273.8 of this title, alleging liability under 31 
U.S.C. 3802, the Respondent may request a hearing under the Program 
Fraud Civil Remedies Act by filing a written Hearing Petition with the 
Recorder in accordance with Sec. 962.22(b). The Respondent's Petition 
must include the following:
    (a) The words ``Petition for Hearing Under the Program Fraud Civil 
Remedies Act,'' or other words reasonably identifying it as such;
    (b) The name of the Respondent as well as his or her work and home 
addresses, and work and home telephone numbers; or other address and 
telephone number where the Respondent may be contacted about the hearing 
proceedings;
    (c) A statement of the date the Respondent received the Complaint 
issued by the Reviewing Official;
    (d) A statement indicating whether the Respondent requests an oral 
hearing or a decision on the record;
    (e) If the Respondent requests an oral hearing, a statement 
proposing a city for the hearing site, with justification for holding 
the hearing in that city, as well as recommended dates for the hearing; 
and
    (f) A statement admitting or denying each of the allegations of 
liability made in the Complaint, and stating any defense on which the 
Respondent intends to rely.



Sec. 962.4  Referral of complaint.

    (a) If the Respondent fails to request a hearing within the 
specified period, the Reviewing Official shall transmit the Complaint to 
the Judicial Officer for referral to a Presiding Officer, who shall 
issue an initial decision based upon the information contained in the 
Complaint.
    (b) If the Respondent files a Hearing Petition, the Reviewing 
Official, upon receiving a copy of the Petition, shall promptly transmit 
to the Presiding Officer a copy of the Postal Service's Complaint.



Sec. 962.5  Scope of hearing; evidentiary standard.

    (a) A hearing under this part shall be conducted by the Presiding 
Officer on the record (1) to determine whether the Respondent is liable 
under 31 U.S.C. 3802, and (2) if so, to determine the amount of any 
civil penalty or assessment to be imposed.

[[Page 328]]

    (b) The Postal Service must prove its case against a Respondent by a 
preponderance of the evidence.
    (c) The parties may offer at a hearing on the merits such relevant 
evidence as they deem appropriate and as would be admissible under the 
generally accepted rules of evidence applied in the courts of the United 
States in nonjury trials, subject, however, to the sound discretion of 
the Presiding Officer in supervising the extent and manner of 
presentation of such evidence. In general, admissibility will hinge on 
relevancy and materiality. However, relevant evidence may be excluded if 
its probative value is substantially outweighed by the danger of unfair 
prejudice, or by considerations of undue delay, waste of time, or 
needless presentation of cumulative evidence.



Sec. 962.6  Notice of hearing.

    (a) Within a reasonable time after receiving the Respondent's 
Hearing Petition and the Complaint, the Presiding Officer shall serve, 
in accordance with Sec. 962.23, upon the Respondent and the Reviewing 
Official, a Notice of Hearing containing the information set forth in 
paragraph (b) of this section.
    (b) The Notice of Hearing required by paragraph (a) of this section 
must include:
    (1) The tentative hearing site, date, and time;
    (2) The legal authority and jurisdiction under which the hearing is 
to be held;
    (3) The nature of the hearing;
    (4) The matters of fact and law to be decided;
    (5) A description of the procedures governing the conduct of the 
hearing; and
    (6) Such other information as the Presiding Officer deems 
appropriate.



Sec. 962.7  Hearing location.

    An oral hearing under this part shall be held
    (a) In the judicial district of the United States in which the 
Respondent resides or transacts business; or
    (b) In the judicial district of the United States in which the claim 
or statement upon which the allegation of liability under 31 U.S.C. 3802 
was made, presented, or submitted; or
    (c) In such other place as may be agreed upon by the Respondent and 
the Presiding Officer.



Sec. 962.8  Rights of parties.

    Any party to a hearing under this part shall have the right
    (a) To be accompanied, represented, and advised, by a representative 
of his own choosing;
    (b) To participate in any prehearing or post-hearing conference held 
by the Presiding Officer;
    (c) To agree to stipulations of fact or law, which shall be made 
part of the record;
    (d) To make opening and closing statements at the hearing;
    (e) To present oral and documentary evidence relevant to the issues 
at the hearing;
    (f) To submit rebuttal evidence;
    (g) To conduct such cross-examination as may be required for a full 
and true disclosure of the facts; and
    (h) To submit written briefs, proposed findings of fact, and 
proposed conclusions of law.



Sec. 962.9  Responsibilities and authority of presiding officer.

    (a) The Presiding Officer shall conduct a fair and impartial 
hearing, avoid delay, maintain order, and assure that a record of the 
proceeding is made.
    (b) The Presiding Officer's authority includes, but is not limited 
to, the following:
    (1) Establishing, upon adequate notice to all parties, the date and 
time of the hearing, as well as, in accordance with Sec. 962.7, 
selecting the hearing site;
    (2) Holding conferences, by telephone or in person, to identify or 
simplify the issues, or to consider other matters that may aid in the 
expeditious disposition of the proceeding;
    (3) Continuing or recessing the hearing in whole or in part for a 
reasonable period of time;
    (4) Administering oaths and affirmations to witnesses;
    (5) Issuing subpoenas, requiring the attendance and testimony of 
witnesses and the production of all information, documents, reports, 
answers, records, accounts, papers, and other data and

[[Page 329]]

documentary evidence which the Presiding Officer considers relevant and 
material to the hearing;
    (6) Ruling on all offers, motions, requests by the parties, and 
other procedural matters;
    (7) Issuing any notices, orders, or memoranda to the parties 
concerning the proceedings;
    (8) Regulating the scope and timing of discovery;
    (9) Regulating the course of the hearing and the conduct of the 
parties and their representatives;
    (10) Examining witnesses;
    (11) Receiving, ruling on, excluding, or limiting evidence in order 
to assure that relevant, reliable and probative evidence is elicited on 
the issues in dispute, but irrelevant, immaterial or repetitious 
evidence is excluded;
    (12) Deciding cases, upon motion of a party, in whole or in part by 
summary judgment where there is no disputed issue of material fact;
    (13) Establishing the record in the case; and
    (14) Issuing a written initial decision containing findings of fact, 
conclusions of law, and determinations with respect to whether a penalty 
or assessment should be imposed, and if so, the amount of such penalty 
or assessment.



Sec. 962.10  Prehearing conferences.

    (a) At a reasonable time in advance of the hearing, and with 
adequate notice to all parties, the Presiding Officer may conduct, in 
person or by telephone, one or more prehearing conference to discuss the 
following:
    (1) Simplification of the issues;
    (2) The necessity or desirability of amendments to the pleadings, 
including the need for a more definite statement;
    (3) Stipulations or admissions of fact or as to the contents and 
authenticity of documents;
    (4) Limitation of the number of witnesses;
    (5) Exchange of witness lists, copies of prior statements of 
witnesses, and copies of hearing exhibits;
    (6) Scheduling dates for the exchange of witness lists and of 
proposed exhibits;
    (7) Discovery;
    (8) Possible changes in the scheduled hearing date, time or site; 
and
    (9) Any other matters related to the proceeding.
    (b) Within a reasonable time after the completion of a prehearing 
conference, the Presiding Officer shall issue an order detailing all 
matters agreed upon by the parties, or ordered by the Presiding Officer, 
at such conference.



Sec. 962.11  Respondent access to information.

    (a)(1) Except as provided in paragraph (a)(2) of this section, the 
Respondent, at any time after receiving the Notice of Hearing required 
by Sec. 962.6, may review, and upon payment of a duplication fee 
established under Sec. 265.8(c) of this title, may obtain a copy of, 
all relevant and material documents, transcripts, records, and other 
materials, which relate to the allegations of liability, and upon which 
the findings and conclusions of the Investigating Official under Sec. 
273.5 of this title are based.
    (2) The Respondent is not entitled to review or obtain a copy of any 
document, transcript, record, or other material which is privileged 
under Federal law.
    (b) At any time after receiving the Notice of Hearing required by 
Sec. 962.6, the Respondent shall be entitled to obtain all exculpatory 
information in the possession of the Investigating Official or the 
Reviewing Official relating to the allegations or liability under 31 
U.S.C. 3802. Paragraph (a)(2) of this section does not apply to any 
document, transcript, record, or other material, or any portion thereof, 
in which such exculpatory information is contained.
    (c) Requests to review or copy material under this section must be 
directed to the Reviewing Official who must respond within a reasonable 
time.



Sec. 962.12  Depositions; interrogatories; admission of facts; 
production and inspection of documents.

    (a) General Policy and protective orders. The parties are encouraged 
to engage in voluntary discovery procedures. In connection with any 
discovery procedure permitted under this part, the Presiding Officer may 
issue

[[Page 330]]

any order which justice requires to protect a party or person from 
annoyance, embarrassment, oppression, or undue burden or expense. Such 
orders may include limitations on the scope, method, time and place for 
discovery, and provisions for protecting the secrecy of confidential 
information or documents. Each party shall bear its own expenses 
relating to discovery.
    (b) Depositions. (1) After the issuance of a Notice of Hearing 
described in Sec. 962.6, the parties may mutually agree to, or the 
Presiding Officer may, upon application of either party and for good 
cause shown, order the taking of testimony of any person by deposition 
upon oral examination or written interrogatories before any officer 
authorized to administer oaths at the place of examination, for use as 
evidence or for purposes of discovery. The application for order shall 
specify whether the purpose of the deposition is discovery or for use as 
evidence.
    (2) The time, place, and manner of taking depositions shall be as 
mutually agreed by the parties, or failing such agreement, governed by 
order of the Presiding Officer.
    (3) No testimony taken by depositions shall be considered as part of 
the evidence in the hearing unless and until such testimony is offered 
and received in evidence at such hearing. Depositions will not 
ordinarily be received in evidence if the deponent is present and can 
testify personally at the hearing. In such instances, however, the 
deposition may be used to contradict or impeach the testimony of the 
witness given at the hearing. In cases submitted for a decision on the 
record, the Presiding Officer may, in his discretion, receive 
depositions as evidence in supplementation of that record.
    (c) Interrogatories to parties. After the issuance of a Notice of 
Hearing described in Sec. 962.6, a party may serve on the other party 
written interrogatories to be answered separately in writing, signed 
under oath and returned within 30 days. Upon timely objection by the 
party, the Presiding Officer will determine the extent to which the 
interrogatories will be permitted.
    (d) Admission of facts. After the issuance of a Notice of Hearing 
described in Sec. 962.6, a party may serve upon the other party a 
request for the admission of specified facts. Within 30 days after 
service, the party served shall answer each requested fact or file 
objections thereto. The factual propositions set out in the request 
shall be deemed admitted upon the failure of a party to respond to the 
request for admission.
    (e) Production and inspection of documents. Upon motion of any party 
showing good cause therefor, and upon notice, the Presiding Officer may 
order the other party to produce and permit the inspection and copying 
or photographing of any designated documents or objects, not privileged, 
specifically identified, and their relevance and materiality to the 
cause or causes in issue explained, which are reasonably calculated to 
lead to the discovery or admissible evidence. If the parties cannot 
themselves agree thereon, the Presiding Officer shall specify just terms 
and conditions in making the inspection and taking the copies and 
photographs.
    (f) Limitations. Under no circumstances may a discovery procedure be 
used to reach
    (1) Documents, transcripts, records, or other material which a 
person is not entitled to review pursuant to Sec. 962.11;
    (2) The notice sent to the Attorney General from the Reviewing 
Official under Sec. 273.6 of this title; or
    (3) Other documents which are privileged under Federal law.

[52 FR 12904, Apr. 20, 1987, as amended at 67 FR 62179, Oct. 4, 2002]



Sec. 962.13  Subpoenas.

    (a) General. Upon written request of either party filed with the 
Recorder or on his own initiative, the Presiding Officer may issue a 
subpoena requiring:
    (1) Testimony at a deposition. The deposing of a witness in the city 
or county where he resides or is employed or transacts his business in 
person, or at another location convenient for him that is specifically 
determined by the Presiding Officer;
    (2) Testimony at a hearing. The attendance of a witness for the 
purpose of taking testimony at a hearing; and
    (3) Production of books and papers. In addition to paragraphs (a)(1) 
and (a)(2)

[[Page 331]]

of this section, the production by the witness at the deposition or 
hearing of books and papers designated in the subpoena.
    (b) Voluntary cooperation. Each party is expected (1) to cooperate 
and make available witnesses and evidence under its control as requested 
by the other party, without issuance of a subpoena, and (2) to secure 
voluntary attendance of desired third-party books, papers, documents, or 
other tangible things whenever possible.
    (c) Requests for subpoenas. (1) A request for a subpoena shall 
normally be filed at least:
    (i) 15 days before a scheduled deposition where the attendance of a 
witness at a deposition is sought;
    (ii) 30 days before a scheduled hearing where the attendance of a 
witness at a hearing is sought.
    (2) A request for a subpoena shall state the reasonable scope and 
general relevance to the case of the testimony and of any books, papers, 
documents, or other tangible things sought.
    (3) The Presiding Officer, in his discretion, may honor requests for 
subpoenas not made within the time limitations specified in this 
paragraph.
    (d) Requests to quash or modify. Upon written request by the person 
subpoenaed or by a party, made within 10 days after service but in any 
event not later than the time specified in the subpoena for compliance, 
the Presiding Officer may (1) quash or modify the subpoena if it is 
unreasonable and oppressive or for other good cause shown, or (2) 
require the person in whose behalf the subpoena was issued to advance 
the reasonable cost of producing subpoenaed books and papers. Where 
circumstances require, the Presiding Officer may act upon such a request 
at any time after a copy has been served upon the opposing party.
    (e) Form; issuance. (1) Every subpoena shall state the title of the 
proceeding, shall cite 31 U.S.C. 3804(b) as the authority under which it 
is issued, and shall command each person to whom it is directed to 
attend and give testimony, and if appropriate, to produce specified 
books and papers at a time and place therein specified. In issuing a 
subpoena to a requesting party, the Presiding Officer shall sign the 
subpoena and may, in his discretion, enter the name of the witness and 
otherwise leave it blank. The party to whom the subpoena is issued shall 
complete the subpoena before service.
    (2) Where the witness is located in a foreign country, a letter 
rogatory or subpoena may be issued and served under the circumstances 
and in the manner provided in 28 U.S.C. 1781-1784.
    (f) Service. (1) The party requesting issuance of a subpoena shall 
arrange for service.
    (2) A subpoena requiring the attendance of a witness at a deposition 
or hearing may be served at any place. A subpoena may be served by a 
United States marshal or deputy marshal, or by any other person who is 
not a party and not less than 18 years of age. Service of a subpoena 
upon a person named therein shall be made by personally delivering a 
copy to that person and tendering the fees for one day's attendance and 
the mileage provided by 28 U.S.C. 1821 or other applicable law.
    (3) The party at whose instance a subpoena is issued shall be 
responsible for the payment of fees and mileage of the witness and of 
the officer who serves the subpoena. The failure to make payment of such 
charges on demand may be deemed by the Presiding Officer as sufficient 
ground for striking the testimony of the witness and the evidence the 
witness has produced.

[52 FR 12904, Apr. 20, 1987, as amended at 67 FR 62179, Oct. 4, 2002]



Sec. 962.14  Enforcement of subpoenas.

    In the case of contumacy or refusal to obey a subpoena issued 
pursuant to Sec. Sec. 962.9(b)(5) and 962.13, the district courts of 
the United States have jurisdiction to issue an appropriate order for 
the enforcement of such subpoena. Any failure to obey such order of the 
court may be punishable as contempt. In any case in which the Postal 
Service seeks the enforcement of a subpoena under this section, the 
Postal Service shall request the Attorney General to petition the 
district court for the district in which a hearing under this part is 
being conducted or in which the person receiving the subpoena resides or 
conducts business to issue such an order.

[[Page 332]]



Sec. 962.15  Sanctions.

    (a) The Presiding Officer may sanction a person, including any party 
or representative, for
    (1) Failing to comply with a lawful order or prescribed procedure;
    (2) Failing to prosecute or defend an action; or
    (3) Engaging in other misconduct that interferes with the speedy, 
orderly, or fair conduct of the hearing.
    (b) Any such sanction, including but not limited to those listed in 
paragraphs (c), (d), and (e) of this section, shall reasonably relate to 
the severity and nature of the failure or misconduct.
    (c) Failure to comply with an order. When a party fails to comply 
with an order, including an order for taking a deposition, the 
production of evidence within the party's control, or a request for 
admission, the Presiding Officer may:
    (1) Draw an inference in favor of the requesting party with regard 
to the information sought;
    (2) Prohibit such party from introducing evidence concerning, or 
otherwise relying upon, testimony relating to the information sought;
    (3) Permit the requesting party to introduce secondary evidence 
concerning the information sought; and
    (4) Strike any part of the pleadings or other submissions of the 
party failing to comply with such request.
    (d) Failure to prosecute or defend. If a party fails to prosecute or 
defend an action under this part commenced by service of a Complaint, 
the Presiding Officer may dismiss the action or enter an order of 
default.
    (e) Failure to make timely filing. The Presiding Officer may refuse 
to consider any motion or other pleading, report, or response which is 
not filed in a timely fashion.



Sec. 962.16  Disqualification of reviewing official or presiding official.

    If a Respondent believes, in good faith, that the Reviewing Official 
or Presiding Officer should be disqualified because of personal bias, or 
other reason, the Respondent may file a timely and sufficient affidavit 
alleging such belief with supporting evidence. If the Presiding Officer 
finds that such allegations concerning the Reviewing Official are 
meritorious, he may direct the Reviewing Official to disqualify himself 
and request the appointment of a new Reviewing Official. Where a 
Respondent seeks the disqualification of a Presiding Officer, such 
Presiding Officer, may, in his discretion, disqualify himself at any 
time during the proceeding. In the event a Reviewing Official or 
Presiding Officer withdraws from a hearing, the proceeding shall be 
stayed until the assignment of a new Reviewing Official or Presiding 
Officer.



Sec. 962.17  Ex parte communications.

    Communications between a Presiding Officer and a party shall not be 
made on any matter in issue unless on notice and opportunity for all 
parties to participate. This prohibition does not apply to procedural 
matters. A memorandum of any communication between the Presiding Officer 
and a party shall be transmitted by the Presiding Officer to all 
parties.



Sec. 962.18  Post-hearing briefs.

    Post-hearing briefs and reply briefs may be submitted upon such 
terms as established by the Presiding Officer at the conclusion of the 
hearing.



Sec. 962.19  Transcript of proceedings.

    Testimony and argument at hearings shall be reported verbatim, 
unless the Presiding Officer orders otherwise. Transcripts or copies of 
the proceedings may be obtained by the parties at such rates as may be 
fixed by contract between the reporter and the Postal Service.



Sec. 962.20  Initial decision.

    (a) After the conclusion of the hearing, and the receipt of briefs, 
if any, from the parties, the Presiding Officer shall issue a written 
initial decision, including his or her findings and determinations. Such 
decision shall include the findings of fact and conclusions of law which 
the Presiding Officer relied upon in determining whether the Respondent 
is liable under 31 U.S.C. 3802, and, if liability is found, shall set 
forth the amount of any penalties and assessments imposed.
    (b) The Presiding Officer shall promptly send to each party a copy 
of

[[Page 333]]

his or her initial decision, and a statement describing the right of any 
person determined to be liable under 31 U.S.C. 3802, to appeal, in 
accordance with Sec. 962.21, the decision of the Presiding Officer to 
the Judicial Officer.
    (c) Unless the Respondent appeals the Presiding Officer's initial 
decision, such decision, including the findings and determinations, is 
final.



Sec. 962.21  Appeal of initial decision to judicial officer.

    (a) Notice of appeal and supporting brief. (1) A Respondent may 
appeal an adverse initial decision by filing, within 30 days after the 
Presiding Officer issues an initial decision, a Notice of Appeal with 
the Recorder. The Judicial Officer may extend the filing period if the 
Respondent files a request for an extension within the initial 30-day 
period and demonstrates good cause for such extension.
    (2) The Respondent's Notice of Appeal must be accompanied by a 
written brief specifying the Respondent's exceptions, and any reasons 
for such exceptions, to the Presiding Officer's initial decision.
    (3) Within 30 days of receiving the Respondent's brief, the 
Reviewing Official may file with the Judicial Officer a response to the 
Respondent's specified exceptions to the Presiding Officer's initial 
decision.
    (b) Form of review. (1) Review by the Judicial Officer will be based 
entirely on the record and written submissions.
    (2) The Judicial Officer may affirm, reduce, reverse, or remand any 
penalty or assessment determined by the Presiding Officer.
    (3) The Judicial Officer shall not consider any objection that was 
not raised in the hearing unless the interested party demonstrates that 
the failure to raise the objection before the Presiding Officer was 
caused by extraordinary circumstances.
    (4) If any party demonstrates to the satisfaction of the Judicial 
Officer that additional evidence not presented at the hearing is 
material and that there were reasonable grounds for the failure to 
present such evidence, the Judicial Officer shall remand the matter to 
the Presiding Officer for consideration of such additional evidence.
    (c) Decision of judicial officer. (1) The Judicial Officer shall 
promptly serve each party to the appeal with a copy of his decision and 
a statement describing the right to judicial review under 31 U.S.C. 3805 
of any Respondent determined to be liable under 31 U.S.C. 3802.
    (2) The decision of the Judicial Officer constitutes final agency 
action and becomes final and binding on the parties 60 days after it is 
issued unless a petition for judicial review is filed.

[52 FR 12904, Apr. 20, 1987, as amended at 67 FR 62179, Oct. 4, 2002]



Sec. 962.22  Form and filing of documents.

    (a) Every pleading filed in a proceeding under this part must
    (1) Contain a caption setting forth the title of the action, the 
docket number (after assignment by the Recorder), and a designation of 
the document (e.g., ``Motion to Quash Subpoena'');
    (2) Contain the name, address, and telephone number of the party or 
other person on whose behalf the paper was filed, or the name, address 
and telephone number of the representative who prepared such paper; and
    (3) Be signed by the party or other person submitting the document, 
or by such party's or person's representative.
    (b) The original and three copies of all pleadings and documents in 
a proceeding conducted under this part shall be filed with the Recorder, 
Judicial Officer Department, United States Postal Service, 2101 Wilson 
Boulevard, Suite 600, Arlington, VA 22201-3078. Normal Recorder business 
hours are between 8:15 a.m. and 4:45 p.m., eastern standard or daylight 
saving time. The Recorder will transmit a copy of each document filed to 
the other party, and the original to the Presiding Officer.
    (c) Pleadings or document transmittals to, or communications with, 
the Postal Service, other than to the Recorder under paragraph (b) of 
this section, shall be made through the Reviewing Official or designated 
Postal

[[Page 334]]

Service attorney. If a notice of appearance by a representative is filed 
on behalf of a Respondent, pleadings or document transmittals to, or 
communications with, the Respondent shall be made through his 
representative.

[52 FR 12904, Apr. 20, 1987, as amended at 63 FR 66053, Dec. 1, 1998]



Sec. 962.23  Service of notice of hearing, other documents.

    Unless otherwise specified, service of a Notice of Hearing or any 
other document under this part must be effected by registered or 
certified mail, return-receipt requested, or by personal delivery. In 
the case of personal service, the person making service shall, if 
possible, secure from the party or other person sought to be served, or 
his or her agent, a written acknowledgement of receipt, showing the date 
and time of such receipt. If the person upon whom service is made 
declines to acknowledge receipt, the person effecting service shall 
execute a statement, indicating the time, place and manner of service, 
which shall constitute evidence of service.



Sec. 962.24  Computation of time.

    (a) In computing any period of time provided for by this part, or 
any order issued pursuant to this part, the time begins with the day 
following the act, event, or default, and includes the last day of the 
period, unless it is a Saturday, Sunday, or legal holiday observed by 
the Federal Government, in which event it includes the next business 
day.
    (b) When the applicable period of time is less than seven days, 
intermediate Saturdays, Sundays, and legal holidays observed by the 
Federal Government shall be excluded from the computation.



Sec. 962.25  Continuances and extensions.

    Continuances and extensions may be granted under these rules for 
good cause shown.



Sec. 962.26  Settlement.

    (a) Either party may make offers of settlement or proposals of 
adjustment at any time.
    (b) The Reviewing Official has the exclusive authority to compromise 
or settle any allegations or determinations of liability under 31 U.S.C. 
3802 without the consent of the Presiding Officer, except during the 
pendency of an appeal to the appropriate United States district court 
pursuant to 31 U.S.C. 3805 or during the pendency of an action to 
collect any penalties or assessments pursuant to 31 U.S.C. 3806.
    (c) The Attorney General has the exclusive authority to compromise 
or settle any penalty or assessment the determination of which is the 
subject of a pending petition for judicial review, or a pending action 
to recover such penalty or assessment.
    (d) The Reviewing Official may recommend settlement terms to the 
Attorney General, as appropriate.

[59 FR 51860, Oct. 13, 1994]



Sec. 962.27  Limitations.

    A hearing under this part concerning a claim or statement allegedly 
made, presented, or submitted in violation of 31 U.S.C. 3802 shall be 
commenced within six years after the date on which such claim or 
statement is made, presented, or submitted.



PART 963_RULES OF PRACTICE IN PROCEEDINGS RELATIVE TO VIOLATIONS OF 
THE PANDERING ADVERTISEMENTS STATUTE, 39 U.S.C. 3008--Table of Contents



Sec.
963.1 Authority for the rules.
963.2 Scope of the rules.
963.3 Petition; notice of hearing; answer; filing and copies of 
          documents; summary judgment.
963.4 Presiding Officer.
963.5 Appearances.
963.6 Computation of time.
963.7 Location of hearing.
963.8 Change of place of hearing.
963.9 Election as to hearing.
963.10 Continuances and extensions.
963.11 Default.
963.12 Settlement agreements.
963.13 Subpoenas and witness fees not authorized.
963.14 Discovery.
963.15 Evidence.
963.16 Transcript.
963.17 Proposed findings of fact and conclusions of law.
963.18 Initial decision.
963.19 Appeal.
963.20 Final agency decision.
963.21 Official record.

[[Page 335]]

963.22 Public information.

    Authority: 39 U.S.C. 204, 401, 3008.

    Source: 52 FR 18912, May 20, 1987, unless otherwise noted.



Sec. 963.1  Authority for the rules.

    These rules of practice are issued by the Judicial Officer of the 
U.S. Postal Service pursuant to authority delegated by the Postmaster 
General (39 CFR 226.2(e)(1)).

[52 FR 18912, May 20, 1987, as amended at 59 FR 10751, Mar. 8, 1994]



Sec. 963.2  Scope of the rules.

    These rules of practice are applicable to cases in which the 
Prohibitory Order Processing Center Manager (hereinafter, ``Manager'') 
has issued a complaint, pursuant to 39 U.S.C. 3008(d), alleging 
violation of a prohibitory order, and in which the alleged violator has 
petitioned for a hearing in the matter. As provided in 39 U.S.C. 
3008(h), subchapter II of chapter 5 (relating to administrative 
procedure) and chapter 7 (relating to judicial review) of part I of 
title 5, U.S.C., do not apply to the hearings authorized by 39 U.S.C. 
3008(d).

[52 FR 18912, May 20, 1987, as amended at 59 FR 10751, Mar. 8, 1994, 62 
FR 4459, Jan. 30, 1997]



Sec. 963.3  Petition; notice of hearing; answer; filing and copies of
documents; summary judgment.

    (a) Petition. Anyone against whom a complaint has been issued 
pursuant to 39 U.S.C 3008(d) may submit to the Manager a petition for 
hearing on the alleged violation. The petition must be in writing, 
signed by the petitioner or his or her attorney, and filed with the 
Manager on or before the 15th day after receipt of the complaint. The 
petition shall state the reasons why the petitioner believes the 
complaint to be erroneous. No petition received after the 15th day will 
be considered to have been filed on time, unless it was duly sent to the 
Manager via certified mail, deposited in the U.S. mail on or before the 
15th day. The Manager will forward each timely petition to the Recorder, 
Judicial Officer Department, U.S. Postal Service, 2101 Wilson Boulevard, 
Suite 600, Arlington, VA 22201-3078.
    (b) Notice of hearing. Upon receiving a petition, the Recorder shall 
schedule a hearing for a date not later than 30 days after the date of 
receipt, issue and send a notice of hearing to the parties, and send a 
copy of the petition to the General Counsel of the U.S. Postal Service.
    (c) Answer. The General Counsel shall file with the Recorder an 
answer to the petition within 15 days after the date of receiving a copy 
thereof. A certified copy of the material documents from the Manager's 
case file (i.e., of the PS Forms 1500, Application for Listing and/or 
Prohibitory Order, 2152, Prohibitory Order, and 2153, Complaint, 
underlying mail pieces, and pertinent return receipts) shall be appended 
to the answer.
    (d) Filing and copies of documents. With the exception of the 
initial petition, all documents shall be filed with the Recorder in 
triplicate at the address set forth above. The Recorder shall promptly 
provide copies to the other party to the proceeding and to the presiding 
officer.
    (e) Summary Judgment. Upon motion of either the General Counsel or 
the petitioner, or on his or her own initiative, the presiding officer 
may find that the petition and answer present no genuine and material 
issues of fact requiring an evidentiary hearing, and thereupon may 
render an initial decision upholding or dismissing the complaint. The 
initial decision shall become the final agency decision if a timely 
appeal is not taken.

[52 FR 18912, May 20, 1987; 52 FR 20599, June 2, 1987, as amended at 59 
FR 10752, Mar. 8, 1994; 62 FR 4459, Jan. 30, 1997; 63 FR 66053, Dec. 1, 
1998]



Sec. 963.4  Presiding Officer.

    (a) The presiding officer shall be an Administrative Law Judge or an 
Administrative Judge qualified in accordance with law. The Judicial 
Officer assigns cases under this part. Judicial Officer includes 
Associate Judicial Officer upon delegation thereto. The Judicial Officer 
may, on his or her own initiative or for good cause found, preside at 
the reception of evidence.
    (b) The presiding officer has authority to:

[[Page 336]]

    (1) Take such action as may be necessary properly to preside over 
the proceeding and render decision therein;
    (2) Render an initial decision, if the presiding officer is not the 
Judicial Officer, which becomes the final agency decision unless a 
timely appeal is taken; the Judicial Officer may issue a tentative or a 
final decision.

[52 FR 18912, May 20, 1987, as amended at 62 FR 4459, Jan. 30, 1997]



Sec. 963.5  Appearances.

    (a) Petitioner. A petitioner may appear and be heard in person or by 
attorney. An attorney may practice before the Postal Service in 
accordance with applicable rules issued by the Judicial Officer (see 
Part 951 of this chapter). When a petitioner is represented by an 
attorney, all pleadings and other papers to be served on petitioner 
after entry of the attorney's appearance shall be mailed to the 
attorney. A petitioner must promptly file notice of any change of 
attorney.
    (b) Postal Service. The Postal Service will be represented by its 
General Counsel or any attorney designated by the General Counsel.



Sec. 963.6  Computation of time.

    A designated period of time under these rules means calendar days, 
excludes the day the period begins, and includes the last day of the 
period unless the last day is a Saturday, Sunday, or legal holiday, in 
which case the period runs until the close of business on the next 
business day.



Sec. 963.7  Location of hearing.

    Hearings are held at 2101 Wilson Boulevard, Suite 600, Arlington, VA 
22201-3078, or other locations designated by the presiding officer.

[63 FR 66053, Dec. 1, 1998]



Sec. 963.8  Change of place of hearing.

    Not later than the date fixed for the filing of the answer, a party 
may file a request that a hearing be held to receive evidence in his or 
her behalf at a place other than that designated for hearing in the 
notice. The party shall support his or her request with a statement 
outlining:
    (a) The evidence to be offered in such place;
    (b) The names and addresses of the witnesses who will testify;
    (c) The reasons why such evidence cannot be produced at Arlington, 
VA.

The presiding officer shall consider the convenience and necessity of 
the parties and the relevance of the evidence to be offered.

[52 FR 18912, May 20, 1987, as amended at 62 FR 4459, Jan. 30, 1997; 63 
FR 66053, Dec. 1, 1998]



Sec. 963.9  Election as to hearing.

    If both parties elect, an oral hearing may be waived and the matter 
submitted for decision on the basis of the petition and answer, and of 
any documentary evidence or briefs requested by the presiding officer. 
The written election to waive oral hearing must be received by the 
Recorder no later than 10 days prior to the scheduled hearing date.



Sec. 963.10  Continuances and extensions.

    Continuances and extensions will be granted by the presiding officer 
for good cause shown.



Sec. 963.11  Default.

    If a petitioner, without notice or cause satisfactory to the 
presiding officer, fails to appear at the hearing or comply with any of 
the provisions of these rules or an order issued by the presiding 
officer, the petitioner may be deemed to have abandoned his or her 
petition and to have acquiesced in the allegations of the complaint. The 
presiding officer thereupon may find the petitioner to be in default and 
refer the matter to the Judicial Officer for dismissal of the petition.

[52 FR 18912, May 20, 1987, as amended at 62 FR 4459, Jan. 30, 1997]



Sec. 963.12  Settlement agreements.

    These rules do not preclude the disposition of any matter by 
agreement between the parties at any stage of the proceeding.

[[Page 337]]



Sec. 963.13  Subpoenas and witness fees not authorized.

    The Postal Service is not authorized to issue subpoenas requiring 
the attendance or testimony of witnesses, nor to pay fees and expenses 
for a petitioner's witnesses or for depositions requested by a 
petitioner.



Sec. 963.14  Discovery.

    Discovery is to be conducted on a voluntary basis to the extent 
possible. The presiding officer may, upon application of either party, 
order such discovery as he or she deems reasonable and necessary. 
Discovery may include one or more of the following: production of 
documents, requests for admissions, interrogatories, depositions, and 
witness lists. The presiding officer will establish the terms upon which 
requested discovery will be allowed.

[52 FR 18912, May 20, 1987, as amended at 62 FR 4459, Jan. 30, 1997]



Sec. 963.15  Evidence.

    (a) In general, admissibility will hinge on relevancy and 
materiality. However, relevant evidence may be excluded if its probative 
value is substantially outweighed by the danger of unfair prejudice, or 
by considerations of undue delay, waste of time, or needless 
presentation of cumulative evidence.
    (b) Testimony shall be given under oath or affirmation and witnesses 
are subject to cross-examination.
    (c) Agreed statements of fact are encouraged and may be received in 
evidence.



Sec. 963.16  Transcript.

    Testimony and argument at hearings shall be reported verbatim, 
unless the presiding officer otherwise orders. Transcripts or copies of 
the proceedings are supplied to the parties at such rate as may be fixed 
by contract between the reporter and Postal Service. Any party desiring 
a copy of the transcript shall order it from the contract reporter in a 
timely manner to avoid delay in filing briefs.



Sec. 963.17  Proposed findings of fact and conclusions of law.

    (a) Each party who participates in the hearing may, unless the 
presiding officer orders otherwise, submit proposed findings of fact, 
conclusions of law, orders, and supporting reasons, either in writing or 
orally at the discretion of the presiding officer. Unless given orally, 
the date set for filing of proposed findings of fact, conclusions of 
law, orders, and supporting reasons shall be within 15 days after the 
delivery of the official transcript to the Recorder, who shall notify 
both parties of the date of its receipt. The filing date for proposed 
findings of fact, conclusions of law, orders, and supporting reasons 
shall be the same for both parties. If not submitted by such date, 
unless extension of time for the filing thereof is granted, they will 
not be included in the record or given consideration.
    (b) Except when presented orally before the close of the hearing, 
proposed findings of fact shall be set forth in serially numbered 
paragraphs and shall state with particularity all evidentiary facts in 
the record with appropriate citations to the transcript or exhibits 
supporting the proposed findings. Each proposed conclusion shall be 
stated separately.

[52 FR 18912, May 20, 1987; 52 FR 20599, June 2, 1987]



Sec. 963.18  Initial decision.

    Unless given orally at the conclusion of the hearing, the presiding 
officer shall render an initial decision as expeditiously as practicable 
following the conclusion of the hearing and the receipt of the proposed 
findings and conclusions, if any. The initial decision becomes the final 
agency decision if a timely appeal is not taken.



Sec. 963.19  Appeal.

    Either party may file exceptions in a brief on appeal to the 
Judicial Officer within 15 days after receipt of the initial or 
tentative decision unless additional time is granted. A reply brief may 
be filed within 15 days after the receipt of the appeal brief by the 
opposing party. The Judicial Officer has all powers of a presiding 
officer and is authorized to decide all issues de novo.



Sec. 963.20  Final agency decision.

    The Judicial Officer, or by delegation the Associate Judicial 
Officer, renders

[[Page 338]]

the final agency decision which will be served upon the parties. If the 
decision is that the Postal Service's prohibitory order was violated, 
the Recorder shall provide a certified copy of the record to the General 
Counsel for use in seeking court enforcement of the order.



Sec. 963.21  Official record.

    The transcript of testimony together with all pleadings, orders, 
exhibits, briefs, and other documents filed in the proceeding constitute 
the official record of the proceeding.



Sec. 963.22  Public information.

    The Librarian of the Postal Service maintains for public inspection 
in the Library copies of all initial, tentative, and final agency 
decisions and orders. The Recorder maintains the complete official 
record of every proceeding.

[52 FR 18912, May 20, 1987, as amended at 63 FR 66053, Dec. 1, 1998]



PART 964_RULES OF PRACTICE GOVERNING DISPOSITION OF MAIL WITHHELD FROM
DELIVERY PURSUANT TO 39 U.S.C. 3003, 3004--Table of Contents



Sec.
964.1 Authority for rules.
964.2 Scope of rules.
964.3 Customer petitions; notice of hearing; answer; summary judgment.
964.4 Hearings.
964.5 Election as to hearing.
964.6 Default.
964.7 Presiding officers.
964.8 Subpoenas and witness fees not authorized.
964.9 Discovery; interrogatories; admission of facts; production; and 
          inspection of documents.
964.10 Evidence.
964.11 Transcript.
964.12 Computation of time.
964.13 Continuances and extensions.
964.14 Proposed findings of fact and conclusions of law.
964.15 Decisions.
964.16 Appeal.
964.17 Final agency decision.
964.18 Compromise and informal disposition.
964.19 Orders.
964.20 Modification or revocation of orders.
964.21 Official record.
964.22 Public information.
964.23 Ex Parte communications.

    Authority: 39 U.S.C. 204, 401, 3003, 3004.

    Source: 52 FR 36763, Oct. 1, 1987, unless otherwise noted.



Sec. 964.1  Authority for rules.

    These rules of practice are issued by the Judicial Officer of the 
United States Postal Service pursuant to authority delegated by the 
Postmaster General (39 CFR 224.1(c)(4)).

[52 FR 36763, Oct. 1, 1987, as amended at 67 FR 62179, Oct. 4, 2002]



Sec. 964.2  Scope of rules.

    The rules in this part provide for administrative review of cases in 
which the Chief Postal Inspector or his delegate, acting pursuant to 39 
U.S.C. 3003(a), has withheld from delivery mail which he believes is 
involved in a scheme described in section 3003(a), and cases in which 
the Chief Postal Inspector or his delegate, acting pursuant to 39 U.S.C. 
3004, determines that letters or parcels sent in the mail are addressed 
to places not the residence or regular business address of the person 
for whom they are intended to enable the person to escape 
identification.

[52 FR 36763, Oct. 1, 1987, as amended at 67 FR 62179, Oct. 4, 2002]



Sec. 964.3  Customer petitions; notice of hearing; answer; summary
judgment.

    (a) Petition. Any addressee who receives notice from the Chief 
Postal Inspector or his delegate that his mail has been withheld 
pursuant to 39 U.S.C. 3003(a) or 3004 may oppose such action by filing 
with the Judicial Officer a written Petition stating the reasons for his 
or her opposition. The Petition, signed by the Petitioner or his 
attorney, shall be filed by sending the Petition via certified mail to 
the Recorder, Judicial Officer Department, U.S. Postal Service, 2101 
Wilson Boulevard, Suite 600, Arlington, VA 22201-3078. The Petition must 
be postmarked within 14 days of the date upon which the Petitioner 
received the notice. The failure of an addressee who has received notice 
of withheld mail to file a Petition opposing such action with the 
Judicial Officer shall constitute a waiver of hearing and further 
procedural steps by the addressee. The Chief Postal Inspector or his or 
her designee of the Postal Service shall thereupon file the matter

[[Page 339]]

with the Judicial Officer for issuance of a final order pursuant to 
Sec. 964.19. Such referral shall contain a statement of the basis for 
the detention, evidence that the notice of the detention and the 
addressee's right to petition for review under this part were served on 
the addressee in person or by mailing a copy to the address to which the 
detained mail is directed, the date of such service, and a copy of the 
proposed order sought by the Chief Postal Inspector or his or her 
designee.
    (b) Notice of hearing. On receipt of the Petition, the Recorder 
shall schedule a hearing on a date not later than 28 days after the date 
of receipt. A Notice of Hearing shall be sent to the Petitioner. A copy 
of the Notice of Hearing and the Petition shall be sent to the Chief 
Postal Inspector or his or her designee of the U.S. Postal Service.
    (c) Answer. The Chief Postal Inspector or his or her designee of the 
Postal Service shall file an Answer to the Petition within 10 days of 
receipt of the Petition from the Recorder.
    (d) Summary judgment. Upon motion of either the Chief Postal 
Inspector or his or her designee or the Petitioner, or upon his own 
initiative, the presiding officer may find that the Petition and Answer 
present no material issues of fact requiring an evidentiary hearing and 
thereupon may render an initial decision granting or dismissing the 
Petition. The initial decision shall become the final agency decision if 
a timely appeal is not taken pursuant to Sec. 964.16 of this part.

[52 FR 36763, Oct. 1, 1987, as amended at 53 FR 4849, Feb. 18, 1988; 63 
FR 66053, Dec. 1, 1998; 71 FR 53972, Sept. 13, 2006]



Sec. 964.4  Hearings.

    Hearings are held at 2101 Wilson Boulevard, Suite 600, Arlington, VA 
22201-3078, or other locations designated by the presiding officer. Not 
later than 10 days prior to the date fixed for the hearing, a party may 
file a request that a hearing be held to receive evidence in his behalf 
at a place other than that designated for hearing in the notice. He 
shall support his request with a statement outlining:
    (a) The evidence to be offered in such place;
    (b) The names and addresses of the witnesses who will testify; and
    (c) The reasons why such evidence cannot be produced at Arlington, 
VA.
    The presiding officer shall give consideration to the convenience 
and necessity of the parties and the relevance of the evidence to be 
offered

[52 FR 36763, Oct. 1, 1987, as amended at 63 FR 66053, Dec. 1, 1998]



Sec. 964.5  Election as to hearing.

    If both parties elect, they may waive an oral hearing and submit the 
matter for decision on the basis of the Petition and Answer, subject to 
the authority of the presiding officer to require the parties to furnish 
such further evidence or such briefs as necessary. The request to waive 
oral hearing should be filed not later than 10 days prior to the date 
set for hearing.



Sec. 964.6  Default.

    If a Petitioner fails to appear at the hearing without notice or 
without adequate cause the presiding officer may issue an order 
dismissing the Petition and refer the matter to the Judicial Officer for 
issuance of the order provided for under Sec. 964.19. An order of 
dismissal issued under this section may be appealed to the Judicial 
Officer within 10 days from the date of the order.

[52 FR 36763, Oct. 1, 1987, as amended at 53 FR 4849, Feb. 18, 1988]



Sec. 964.7  Presiding officers.

    (a) The presiding officer shall be an Administrative Law Judge 
qualified in accordance with law. The Judicial Officer shall assign 
cases upon rotation as far as practicable. The Judicial Officer may on 
his own initiative or for good cause shown, preside at the reception of 
evidence.
    (b) The presiding officer has authority to:
    (1) Administer oaths and affirmations;
    (2) Examine witnesses;
    (3) Rule upon offers of proof, admissibility of evidence and matters 
of procedure;
    (4) Order any pleadings amended upon motion of a party at any time 
prior to the close of the hearing;

[[Page 340]]

    (5) Maintain discipline and decorum and exclude from the hearing any 
person acting in an indecorous manner;
    (6) Require the filing of briefs or memoranda of law on any matter 
upon which he is required to rule;
    (7) Order prehearing conferences for the purpose of the settlement 
or simplification of issues by the parties or for any other purpose he 
believes will facilitate the processing of the proceeding;
    (8) Order the proceeding reopened at any time prior to his decision 
for the receipt of additional evidence;
    (9) Render an initial decision, which becomes the final agency 
decision unless a timely appeal is taken: The Judicial Officer may issue 
a tentative or a final decision;
    (10) Rule upon applications and requests filed under Sec. 964.9 of 
this part.



Sec. 964.8  Subpoenas and witness fees not authorized.

    The Postal Service is not authorized to issue subpoenas requiring 
the attendance or testimony of witnesses, nor to pay fees and expenses 
for a Petitioner's witnesses or for depositions requested by a 
Petitioner.



Sec. 964.9  Discovery; interrogatories; admission of facts; production
and inspection of documents.

    (a) General policy and protective orders. The parties are encouraged 
to engage in voluntary discovery procedures. In connection with any 
discovery procedure permitted under this part, the presiding officer may 
issue any order which justice requires to protect a party or person from 
annoyance, embarrassment, oppression, or undue burden or expense. Such 
orders may include limitations on the scope, method, time and place for 
discovery, and provisions for protecting confidential information or 
documents from unwarranted public disclosure. Each party shall bear its 
own expenses relating to discovery.
    (b) Depositions. (1) After the issuance of a notice of hearing 
described in Sec. 964.3 of this part, the parties may mutually agree 
to, or the presiding officer may, upon application of either party and 
for good cause shown, order the taking of testimony of any person by 
deposition upon oral examination or written interrogatories before any 
officer authorized to administer oaths at the place of examination, for 
use as evidence or for purposes of discovery. The application for order 
shall specify whether the purpose of the deposition is discovery or for 
use as evidence, or both.
    (2) The time, place, and manner of taking depositions shall be as 
mutually agreed by the parties, or failing such agreement, governed by 
order of the presiding officer.
    (3) No testimony taken by depositions shall be considered as part of 
the evidence in the hearing unless and until such testimony is offered 
and received in evidence at such hearing. Depositions will not 
ordinarily be received in evidence if the deponent is present and can 
testify personally at the hearing. In such instances, however, the 
deposition may be used to contradict or impeach the testimony of the 
witness given at the hearing. In cases submitted on the record, the 
presiding officer may, in his discretion, receive depositions as 
evidence in supplementation of the record.
    (c) Interrogatories to parties. Not later than 5 days after the 
filing of the Answer described in Sec. 964.3, a party may serve on the 
other party written interrogatories to be answered separately in 
writing, signed under oath and returned within 10 days. Upon timely 
objection by the party, the presiding officer will determine the extent 
to which the interrogatories will be permitted.
    (d) Admission of facts. Not later than 5 days after the filing of 
the Answer described in Sec. 964.3, a party may serve upon the other 
party a request for the admission of specified facts. Within 10 days 
after receipt of the request for admissions, the party served shall 
admit or answer each specified fact or file objections thereto. Any 
factual propositions set out in the request to which a party fails to 
respond shall be deemed admitted.
    (e) Production and inspection of documents. Upon motion of any party 
showing good cause therefor, and upon notice, the presiding officer may 
order the other party to produce and permit the inspection and copying 
or

[[Page 341]]

photographing of any designated documents and or objects, provided that 
such documents and objects are not privileged, their relevance to the 
cause or causes in issue is explained, and they are reasonably 
calculated to lead to the discovery of admissible evidence. If the 
parties cannot themselves agree thereon, the presiding officer shall 
specify the terms and conditions for making the inspection and taking 
the copies and photographs.



Sec. 964.10  Evidence.

    (a) In general, admissibility will hinge on relevancy and 
materiality. However, relevant evidence may be excluded if its probative 
value is substantially outweighed by the danger of unfair prejudice, or 
by considerations of undue delay, waste of time, or needless 
presentation of cumulative evidence.
    (b) Testimony shall be given under oath or affirmation and witnesses 
shall be subject to cross-examination.
    (c) Agreed statements of fact are encouraged and may be received in 
evidence.



Sec. 964.11  Transcript.

    Testimony and argument at hearings shall be reported verbatim, 
unless the presiding officer orders otherwise. Transcripts or copies of 
the proceedings are supplied to the parties at such rate as may be fixed 
by contract between the reporter and Postal Service. Any party desiring 
a copy of the transcript shall order it from the contract reporter in a 
timely manner to avoid delay in filing briefs.



Sec. 964.12  Computation of time.

    A designated period of time under these rules means calendar days, 
excludes the day the period begins, and includes the last day of the 
period unless the last day is a Saturday, Sunday, or legal holiday, in 
which case the period runs until the close of business on the next 
business day.



Sec. 964.13  Continuances and extensions.

    Continuances and extensions will be granted by the presiding officer 
for good cause shown.



Sec. 964.14  Proposed findings of fact and conclusions of law.

    (a) Each party to a proceeding, except one who fails to answer the 
Petition or, having answered, either fails to appear at the hearing or 
indicates in the answer that he does not desire to appear, may, unless 
at the discretion of the presiding officer such is not appropriate, 
submit proposed findings of fact, conclusions of law, orders and 
supporting reasons either in oral or written form in the discretion of 
the presiding officer. The presiding officer may also require parties to 
submit proposed findings of fact, conclusions of law, orders, and 
supporting reasons. Unless given orally, the date set for filing of 
proposed findings of fact, conclusions of law, orders and supporting 
reasons shall be within 15 days after the delivery of the official 
transcript to the Recorder who shall notify both parties of the date of 
its receipt. The filing date for proposed findings of fact, conclusions 
of law, orders and supporting reasons shall be the same for both 
parties. If not submitted by such date, unless extension of time for the 
filing thereof is granted, they will not be included in the record or 
given consideration.
    (b) Except when presented orally before the close of the hearing, 
proposed findings of fact shall be set forth in serially numbered 
paragraphs and shall state with particularity all evidentiary facts in 
the record with appropriate citations to the transcript or exhibits 
supporting the proposed finding. Each proposed conclusion shall be 
separately stated.



Sec. 964.15  Decisions.

    (a) Initial decision by Administrative Law Judge. A written initial 
decision shall be rendered by an Administrative Law Judge with all due 
speed. The initial decision shall include findings and conclusions with 
the reasons therefor upon all the material issues of fact or law 
presented in the record, and the appropriate orders or denial thereof. 
The initial decision shall become the final agency decision unless an 
appeal is taken in accordance with Sec. 964.16.
    (b) Tentative or final decision by the Judicial Officer. When the 
Judicial Officer presides at the hearing he shall

[[Page 342]]

issue a final or a tentative decision. Such decision shall include 
findings and conclusions with the reasons therefor upon all the material 
issues of fact or law presented in the record, and the appropriate 
orders or denial thereof. The tentative decision shall become the final 
agency decision unless exceptions are filed in accordance with Sec. 
964.16.



Sec. 964.16  Appeal.

    (a) Either party may file exceptions in a brief on appeal to the 
Judicial Officer within 15 days after receipt of the initial or 
tentative decision unless additional time is granted. A reply brief may 
be filed within 15 days after receipt of the appeal brief by the 
opposing party. The Judicial Officer has all powers of a presiding 
officer and is authorized to decide all issues de novo.
    (b) Briefs upon appeal or in support of exceptions to a tentative 
decision by the Judicial Officer and replies thereto shall be filed in 
triplicate with the Recorder and contain the following matter in the 
order indicated:
    (1) A subject index of the matters presented, with page references; 
a table of cases alphabetically arranged; a list of statutes and texts 
cited with page references.
    (2) A concise abstract or statement of the case in briefs on appeal 
or in support of exceptions.
    (3) Numbered exceptions to specific findings and conclusions of 
fact, conclusions of law, or recommended orders of the presiding officer 
in briefs on appeal or in support of exceptions.
    (4) A concise argument clearly setting forth points of fact and of 
law relied upon in support of or in opposition to each exception taken, 
together with specific references to the parts of the record and the 
legal or other authorities relied upon.



Sec. 964.17  Final agency decision.

    The Judicial Officer renders the final agency decision and order 
which will be served upon the parties and upon the postmaster at the 
office where the mail at issue is being held.

[52 FR 36763, Oct. 1, 1987, as amended at 53 FR 4849, Feb. 18, 1988]



Sec. 964.18  Compromise and informal disposition.

    Nothing in these rules precludes the compromise, settlement, and 
informal disposition of proceedings initiated under these rules at any 
time prior to the issuance of the final agency decision.



Sec. 964.19  Orders.

    If an order is issued by the Judicial Officer which prohibits 
delivery of mail to a Petitioner it shall be incorporated in the record 
of the proceeding. The Recorder shall cause notice of the order to be 
published in the Postal Bulletin and cause the order to be transmitted 
to such postmasters and other officers and employees of the Postal 
Service as may be required to place the order into effect.

[52 FR 36763, Oct. 1, 1987, as amended at 53 FR 4849, Feb. 18, 1988]



Sec. 964.20  Modification or revocation of orders.

    A party against whom an order or orders have been issued may file an 
application for modification or revocation thereof. The Recorder shall 
transmit a copy of the application to the Chief Postal Inspector or his 
or her designee, who shall file a written reply within 10 days after 
receipt or such other period as the Judicial Officer may fix. A copy of 
the reply shall be sent to the applicant by the Recorder. Thereafter an 
order granting or denying such application will be issued by the 
Judicial Officer.

[52 FR 36763, Oct. 1, 1987, as amended at 71 FR 53972, Sept. 13, 2006]



Sec. 964.21  Official record.

    The transcript of testimony together with all pleadings, orders, 
exhibits, briefs, and other documents filed in the proceeding constitute 
the official record of the proceeding.



Sec. 964.22  Public information.

    The Librarian of the Postal Service maintains for public inspection 
in the Library copies of all initial, tentative, and final agency 
decisions and orders.

[[Page 343]]

The Recorder maintains the complete official record of every proceeding.

[52 FR 36763, Oct. 1, 1987, as amended at 63 FR 66053, Dec. 1, 1998]



Sec. 964.23  Ex parte communications.

    The provisions of 5 U.S.C. 551(14), 556(d), and 557(d) prohibiting 
ex parte communications are made applicable to proceedings under these 
rules of practice.



PART 965_RULES OF PRACTICE IN PROCEEDINGS RELATIVE TO MAIL 
DISPUTES--Table of Contents



Sec.
965.1 Authority for rules.
965.2 Scope of rules.
965.3 Notice to parties.
965.4 Presiding officers.
965.5 Initial submissions by parties.
965.6 Comments by parties.
965.7 Default.
965.8 Hearings.
965.9 Evidence.
965.10 Transcript.
965.11 Initial decision.
965.12 Appeal.
965.13 Compromise and informal disposition.
965.14 Public information.

    Authority: 39 U.S.C. 204, 401.

    Source: 52 FR 29012, Aug. 5, 1987, unless otherwise noted.



Sec. 965.1  Authority for rules.

    These rules of practice are issued by the Judicial Officer of the 
U.S. Postal Service pursuant to authority delegated by the Postmaster 
General.

[76 FR 15219, Mar. 21, 2011]



Sec. 965.2  Scope of rules.

    The rules in this part shall be applicable to mail dispute cases 
forwarded to the Judicial Officer pursuant to Postal Operations Manual 
section 616.21.

[76 FR 15219, Mar. 21, 2011]



Sec. 965.3  Notice to parties.

    Upon receipt of a mail dispute case, the Recorder, Office of the 
Judicial Officer, United States Postal Service, 2101 Wilson Boulevard, 
Suite 600, Arlington, VA 22201-3078, will send a notice of docketing and 
submission due date to the parties together with a copy of these rules.

[76 FR 15219, Mar. 21, 2011]



Sec. 965.4  Presiding officers.

    (a) The presiding officer shall be an Administrative Law Judge, an 
Administrative Judge qualified in accordance with law, or any other 
qualified person licensed to practice law designated by the Judicial 
Officer to preside over a proceeding conducted pursuant to this part. 
The Judicial Officer assigns cases under this part. Judicial Officer 
includes Associate Judicial Officer upon delegation thereto. The 
Judicial Officer may, on his or her own initiative or for good cause 
found, preside at the reception of evidence.
    (b) The presiding officer has authority to:
    (1) Take such action as may be necessary to preside properly over 
the proceeding and render decision therein;
    (2) Render an initial decision, if the presiding officer is not the 
Judicial Officer; or if the presiding officer is the Judicial Officer, 
issue a tentative or a final decision or order.

[52 FR 29012, Aug. 5, 1987, as amended at 75 FR 6570, Feb. 10, 2010; 76 
FR 15219, Mar. 21, 2011]



Sec. 965.5  Initial submissions by parties.

    Within 15 days after receipt of the Recorder's notice, each party 
shall file with the Recorder a sworn statement of the facts supporting 
its claim to receipt of the mail together with a copy of each document 
on which it relies in making such claim, and any arguments supporting 
its claim.

[76 FR 15219, Mar. 21, 2011]



Sec. 965.6  Comments by parties.

    Within 10 days of receipt of the other party's initial submission 
under Sec. 965.5, each party may file with the Recorder an additional 
statement or rebuttal argument setting forth in detail its 
disagreements, if any, with its opponent's initial submission. Such 
rebuttal may include any additional documents relevant to the dispute.

[76 FR 15219, Mar. 21, 2011]

[[Page 344]]



Sec. 965.7  Default.

    A party who fails to file the submittal required by Sec. 965.5 may 
be held in default and the presiding officer may issue an initial 
decision that mail be delivered to the other party.



Sec. 965.8  Hearings.

    (a) Generally, mail dispute cases are resolved based on written 
submissions. However, in the discretion of the presiding officer an oral 
hearing may be conducted where in the opinion of the presiding officer, 
the case cannot be resolved by a review of the documentary evidence.
    (b) Hearings are held at 2101 Wilson Boulevard, Suite 600, 
Arlington, VA 22201-3078, or such other place as may be designated by 
the presiding officer.

[52 FR 29012, Aug. 5, 1987, as amended at 63 FR 66053, Dec. 1, 1998; 76 
FR 15219, Mar. 21, 2011]



Sec. 965.9  Evidence.

    (a) In general, admissibility will hinge on relevancy and 
materiality. However, relevant evidence may be excluded if its probative 
value is substantially outweighed by the danger of unfair prejudice, or 
by considerations of undue delay, waste of time, or needless 
presentation of cumulative evidence.
    (b) Testimony shall be given under oath or affirmation and witnesses 
are subject to cross-examination.

[52 FR 29012, Aug. 5, 1987, as amended at 76 FR 15219, Mar. 21, 2011]



Sec. 965.10  Transcript.

    Testimony and argument at hearings shall be reported verbatim, 
unless the presiding officer otherwise orders. Transcripts or copies of 
the proceedings are supplied to the parties at such rate as may be fixed 
by contract between the reporter and Postal Service.



Sec. 965.11  Initial decision.

    The presiding officer shall render an initial decision in writing, 
based on the record, as expeditiously as possible, but to the extent 
practicable within 10 working days of closing of the record. The 
decision will be brief, containing summary findings of fact, conclusions 
of law, and reasons therefor. If there has been a hearing the presiding 
officer may in his discretion render an oral decision. A typed copy of 
such oral decision will subsequently be furnished to the parties to 
establish the date for commencement of time for requesting review of the 
initial decision.



Sec. 965.12  Appeal.

    Within 10 days after receipt by the parties of the initial or 
tentative decision, either party may file an appeal to the Judicial 
Officer. The Judicial Officer, or by delegation the Associate Judicial 
Officer, in his or her sole discretion, also may review the initial or 
tentative decision on his or her own initiative. If an appeal is denied, 
the initial or tentative decision becomes the final agency decision upon 
the issuance of such denial. If an appeal is not filed and the Judicial 
Officer, or by delegation the Associate Judicial Officer does not review 
the initial or tentative decision on his or her own initiative, a final 
order will be issued. The Judicial Officer's decision on appeal or his 
or her final order is the final agency decision with no further agency 
review or appeal rights.

[76 FR 15219, Mar. 21, 2011]



Sec. 965.13  Compromise and informal disposition.

    Nothing in these rules precludes the compromise, settlement, and 
informal disposition of proceedings initiated under these rules at any 
time prior to the issuance of the final agency decision.



Sec. 965.14  Public information.

    The Librarian of the Postal Service maintains for public inspection 
in the Library copies of all initial, tentative, and final agency 
decisions and orders. Copies of decisions also are available on the 
Judicial Officer's section of the official Web site of the U.S. Postal 
Service. The Recorder maintains the complete official record of every 
proceeding.

[76 FR 15219, Mar. 21, 2011]

[[Page 345]]



PART 966_RULES OF PRACTICE IN PROCEEDINGS RELATIVE TO ADMINISTRATIVE
OFFSETS INITIATED AGAINST FORMER EMPLOYEES OF THE POSTAL SERVICE--Table 

of Contents



Sec.
966.1 Authority for rules.
966.2 Scope of rules.
966.3 Definitions.
966.4 Petition for a hearing and supplement to petition.
966.5 Effect of petition filing.
966.6 Filing, docketing and serving documents; computation of time; 
          representation of parties.
966.7 Answer to petition.
966.8 Authority and responsibilities of Hearing Official or Judicial 
          Officer.
966.9 Opportunity for oral hearing.
966.10 Initial decision.
966.11 Appeal.
966.12 Waiver of rights.
966.13 Ex parte communications.

    Authority: 39 U.S.C. 204, 401, 2601.

    Source: 62 FR 63279, Nov. 28, 1997, unless otherwise noted.



Sec. 966.1  Authority for rules.

    These rules of practice are issued by the Judicial Officer pursuant 
to authority delegated by the Postmaster General.



Sec. 966.2  Scope of rules.

    The rules in this part apply to any petition filed by a former 
postal employee:
    (a) To challenge the Postal Service's determination that he or she 
is liable to the Postal Service for a debt incurred in connection with 
his or her Postal Service employment; and/or
    (b) To challenge the administrative offset schedule proposed by the 
Postal Service for collecting any such debt.



Sec. 966.3  Definitions.

    (a) Administrative offset refers to the withholding of money payable 
by the Postal Service or the United States to, or held by the Postal 
Service or the United States for, a former employee in order to satisfy 
a debt determined to be owed by the former employee to the Postal 
Service.
    (b) Debt refers to any amount determined by the Postal Service to be 
owed to the Postal Service by a former employee.
    (c) Former employee refers to an individual whose employment with 
the Postal Service has ceased. An employee is considered formally 
separated from the Postal Service rolls as of close of business on the 
effective date of his or her separation. Postal Service Form 50.
    (d) General Counsel refers to the General Counsel of the Postal 
Service, and includes a designated representative.
    (e) Hearing Official refers to an Administrative Law Judge qualified 
to hear cases under the Administrative Procedure Act, an Administrative 
Judge appointed under the Contract Disputes Act of 1978, or any other 
qualified person licensed to practice law designated by the Judicial 
Officer to preside over a hearing conducted pursuant to this part.
    (f) Judicial Officer refers to the Judicial Officer, Associate 
Judicial Officer, or Acting Judicial Officer of the Postal Service.
    (g) Postmaster/Installation Head refers to the top management 
official at a particular post office or installation when an alleged 
debt owed by a former employee was incurred, or to that official's 
successor, or to the department head who had general supervisory 
responsibility for a former employee at Area Offices or National 
Headquarters when an alleged debt owed by that former employee was 
incurred, or to that official's successor. Where the former employee was 
a Postmaster/Installation Head, the term refers to the official to whom 
the Postmaster/Installation Head reported when an alleged debt owed by 
that former employee was incurred, or to that official's successor. 
Where the former employee was in the Inspection Service, the term refers 
to the former employee's immediate supervisor when an alleged debt owed 
by that former employee was incurred, or to that official's successor. 
Where the former employee was in the Office of Inspector General, the 
term refers to the Inspector General, or to the Inspector General's 
delegate.
    (h) Reconsideration refers to the review of an alleged debt and/or 
the proposed offset schedule conducted by the Postmaster/Installation 
Head at the request of a former employee alleged to be indebted to the 
Postal Service.

[[Page 346]]

    (i) Recorder refers to the Recorder, Judicial Officer Department, 
United States Postal Service, 2101 Wilson Boulevard, Suite 600, 
Arlington, VA 22201-3078.

[62 FR 63279, Nov. 28, 1997, as amended at 63 FR 66053, Dec. 1, 1998]



Sec. 966.4  Petition for a hearing and supplement to petition.

    (a) A former employee who is alleged to be responsible for a debt to 
the Postal Service may petition for a hearing under this part, provided:
    (1) Liability for the debt and/or the proposed offset schedule has 
not been established under Part 452.3 or Part 462.3 of the Employee & 
Labor Relations Manual;
    (2) He or she has received a Notice from the Minneapolis Accounting 
Service Center (or its successor installation) informing him or her of 
the debt and an offset schedule to satisfy the debt and of the right to 
request reconsideration by the Postmaster/Installation Head; and
    (3) He or she has requested and received reconsideration of the 
existence or amount of the alleged debt and/or the offset schedule 
proposed by the Postal Service.
    (b) Within thirty (30) calendar days after the date of receipt of 
the Postmaster/Installation Head's written decision upon 
reconsideration, the former employee must file a written, signed 
petition, requesting a written or oral hearing, with the Recorder, 
Judicial Officer Department, United States Postal Service, 2101 Wilson 
Boulevard, Suite 600, Arlington, VA 22201-3078.
    (c) The petition must include the following:
    (1) The words, ``Petition for Review Under 39 CFR Part 966'';
    (2) The former employee's name and social security number;
    (3) The former employee's home address and telephone number, and any 
other address and telephone number at which the former employee may be 
contacted about these proceedings;
    (4) A statement of the date the former employee received the 
Postmaster/Installation Head's written decision upon reconsideration of 
the alleged debt, and a copy of the decision;
    (5) A statement indicating whether the former employee requests an 
oral hearing or a decision based solely on written submissions;
    (6) If the former employee requests an oral hearing, a statement 
describing the evidence he or she will produce which makes an oral 
hearing necessary, including a list of witnesses, with their addresses, 
whom the former employee expects to call; a summary of the testimony the 
witnesses are expected to present; the city requested for the hearing 
site, with justification for holding the hearing in that city; and at 
least three proposed dates for the hearing at least forty-five (45) days 
after the filing of the petition;
    (7) A statement of the grounds upon which the former employee 
objects to the Postal Service's determination of the debt or to the 
administrative offset schedule proposed by the Postal Service for 
collecting any such debt. This statement should identify with reasonable 
specificity and brevity the facts, evidence, and legal arguments, if 
any, which support the former employee's position; and
    (8) Copies of all records in the former employee's possession which 
relate to the debt and which the former employee may enter into the 
record of the hearing.
    (d) The former employee may, if necessary, file with the Recorder 
additional information as a supplement to the petition at any time prior 
to the filing of the answer to the petition under Sec. 966.7, or at 
such later time as permitted by the Hearing Official upon a showing of 
good cause.

[62 FR 63279, Nov. 28, 1997, as amended at 63 FR 66053, Dec. 1, 1998]



Sec. 966.5  Effect of petition filing.

    Upon receipt and docketing of the former employee's petition, the 
Recorder will notify the General Counsel that the petition has been 
filed and that a timely filed petition stays further collection action.



Sec. 966.6  Filing, docketing and serving documents; computation of 
time; representation of parties.

    (a) Filing. All documents required under this part must be filed by 
the

[[Page 347]]

former employee or the General Counsel in triplicate with the Recorder. 
(Normal Recorder office business hours are between 8:15 a.m. and 4:45 
p.m., eastern standard or daylight saving time as appropriate during the 
year.) The Recorder will transmit a copy of each document filed to the 
other party, and the original to the Hearing Official.
    (b) Docketing. The Recorder will maintain a docket record of 
proceedings under this part and will assign each petition a docket 
number. After notification of the docket number, the former employee and 
General Counsel should refer to it on any further filings regarding the 
petition.
    (c) Time computation. A filing period under the rules in this part 
excludes the day the period begins, and includes the last day of the 
period unless the last day is a Saturday, Sunday, or legal holiday, in 
which event the period runs until the close of business on the next 
business day.
    (d) Representation of parties. After the filing of the petition, 
further document transmittals for, or communications with, the Postal 
Service shall be through its representative, the General Counsel. If a 
former employee is represented by an attorney authorized to practice law 
in any of the United States or the District of Columbia or a territory 
of the United States, further transmissions of documents and other 
communications with the former employee shall be made through his or her 
attorney rather than directly with the former employee.



Sec. 966.7  Answer to petition.

    Within thirty (30) days after the date of receipt of the petition, 
the General Counsel shall file an answer to the petition, and attach all 
available relevant records and documents in support of the Postal 
Service's claim, or the administrative offset schedule proposed by the 
Postal Service for collecting any such claim; a statement of whether the 
Postal Service concurs in, or objects to, an oral hearing, if the former 
employee requests one, with the reason(s) for the Postal Service's 
objection; a list of witnesses the Postal Service intends to call if an 
oral hearing is requested and the request is granted; a synopsis of the 
testimony of each witness; a statement of concurrence or objection to 
the proposed location and dates for the oral hearing; and a statement of 
the basis for the determination of debt or offset schedule if not 
contained in the relevant records or documents. If the former employee 
files a supplement to the petition, the General Counsel may file any 
supplemental answer and records to support the position of the Postal 
Service within twenty (20) calendar days from the date of receipt of the 
supplement filed with the Recorder.



Sec. 966.8  Authority and responsibilities of Hearing Official or 
Judicial Officer.

    (a) In processing a case under this part, the Hearing Official's 
authority includes, but is not limited to, the following:
    (1) Ruling on all offers, motions, or requests by the parties;
    (2) Issuing any notices, orders, or memoranda to the parties 
concerning the hearing procedures;
    (3) Conducting telephone conferences with the parties to expedite 
the proceedings (a memorandum of a telephone conference will be 
transmitted to both parties);
    (4) Determining if an oral hearing is necessary, the type of oral 
hearing that would be appropriate, and setting the place, date, and time 
for such hearing;
    (5) Administering oaths or affirmations to witnesses;
    (6) Conducting the hearing in a manner to maintain discipline and 
decorum while assuring that relevant, reliable, and probative evidence 
is elicited on the issues in dispute, and that irrelevant, immaterial, 
or repetitious evidence is excluded;
    (7) Establishing the record in the case;
    (8) Issuing an initial decision or one on remand; and
    (9) Granting, at the request of either party, reasonable time 
extensions.
    (b) The Judicial Officer, in addition to possessing such authority 
as is described elsewhere in this part, shall possess all of the 
authority and responsibilities of a Hearing Official.

[[Page 348]]



Sec. 966.9  Opportunity for oral hearing.

    An oral hearing generally will be held only in those cases which, in 
the opinion of the Hearing Official, cannot be resolved by a review of 
the documentary evidence, such as when the existence, or amount, of a 
debt turns on issues of credibility or veracity. An oral hearing 
includes an in-person hearing, a telephonic hearing, or a hearing by 
video conference. When the Hearing Official determines that an oral 
hearing is not necessary, the decision shall be based solely on written 
submissions.



Sec. 966.10  Initial decision.

    (a) After the receipt of written submissions or after the conclusion 
of the hearing and the receipt of any post-hearing briefs, the Hearing 
Official shall issue a written initial decision, including findings of 
fact and conclusions of law, which the Hearing Official relied upon in 
determining whether the former employee is indebted to the Postal 
Service, or in upholding or revising the administrative offset schedule 
proposed by the Postal Service for collecting a former employee's debt. 
When the Judicial Officer presides at a hearing he or she shall issue a 
final or a tentative decision.
    (b) The Hearing Official shall promptly send to each party a copy of 
the initial or tentative decision, and a statement describing the right 
of appeal to the Judicial Officer in accordance with Sec. 966.11.



Sec. 966.11  Appeal.

    The initial or tentative decision will become final and an order to 
that effect will be issued by the Judicial Officer thirty (30) days 
after issuance and receipt by the parties of the initial or tentative 
decision unless the Judicial Officer, in his discretion, grants review 
upon appeal by either party, or on his own motion. If an appeal is 
denied, the initial or tentative decision becomes the final agency 
decision upon the issuance of such denial. The Judicial Officer's 
decision on appeal is the final agency decision with no further right of 
appeal within the agency.



Sec. 966.12  Waiver of rights.

    The Hearing Official may determine the former employee has waived 
his or her right to a hearing and administrative offset may be initiated 
if the former employee:
    (a) Files a petition for hearing after the end of the prescribed 
thirty (30) day period, and fails to demonstrate to the satisfaction of 
the Hearing Official good cause for the delay;
    (b) Has received notice to appear at an oral hearing but fails to do 
so without showing circumstances beyond the former employee's control;
    (c) Fails to file required submissions or to comply with orders of 
the Hearing Official; or
    (d) Files a withdrawal of his or her petition for a hearing with the 
Recorder.



Sec. 966.13  Ex parte communications.

    Ex parte communications between a Hearing Official or his or her 
staff and a party shall not be made. This prohibition does not apply to 
procedural matters. A memorandum of any communication between the 
Hearing Official and a party will be transmitted to both parties.

[[Page 349]]



                CHAPTER III--POSTAL REGULATORY COMMISSION




  --------------------------------------------------------------------

                         SUBCHAPTER A--PERSONNEL
Part                                                                Page
3000            Standards of conduct........................         351
3001            Rules of practice and procedure.............         353
3002            Organization................................         389
3003            Privacy Act rules...........................         393
3004            Public records and Freedom of Information 
                    Act.....................................         395
3005            Procedures for compelling production of 
                    information by the Postal Service.......         403
3007            Treatment of non-public materials provided 
                    by the Postal Service...................         409
3010            Regulation of rates for market dominant 
                    products................................         419
3015            Regulation of rates for competitive products         429
3020            Product lists...............................         431
3025            Rules for appeals of Postal Service 
                    determinations to close or consolidate 
                    post offices............................         441
3030            Rules for complaints........................         444
3031            Rules for rate or service inquiries.........         447
3050            Periodic reporting..........................         448
3055            Service performance and customer 
                    satisfaction reporting..................         458
3060            Accounting practices and tax rules for the 
                    theoretical competitive products 
                    enterprise..............................         464

[[Page 351]]



                         SUBCHAPTER A_PERSONNEL





PART 3000_STANDARDS OF CONDUCT--Table of Contents



                      Subpart A_General Provisions

Sec.
3000.735-101 Cross-reference to employee ethical conduct standards and 
          financial disclosure regulations.
3000.735-102 Counseling and advisory services.
3000.735-103 Financial interests.
3000.735-104 Outside employment.

                    Subpart B_Ex Parte Communications

3000.735-501 Ex parte communications prohibited.
3000.735-502 Public record of ex parte communications.

Appendix A to Part 3000--Code of Ethics for Government Service

    Authority: 39 U.S.C. 3603; E.O. 12674; 54 FR 15159; 3 CFR, 1989 
Comp., p. 215, as modified by E.O. 12731, 56 FR 42547, 3 CFR, 1990 
Comp., p. 396, 5 CFR parts 2634 and 2635.

    Source: 36 FR 5412, Mar. 23, 1971, unless otherwise noted.



                      Subpart A_General Provisions

    Source: 58 FR 42874, Aug. 12, 1993, unless otherwise noted.



Sec. 3000.735-101  Cross-reference to employee ethical conduct standards
and financial disclosure regulations.

    Employees of the Postal Regulatory Commission (Commission) are 
subject and should refer to the executive branch-wide Standards of 
Ethical Conduct at 5 CFR part 2635, the Commission regulation at 5 CFR 
part 5601 which supplements the executive branch-wide standards, and the 
executive branch-wide financial disclosure regulation at 5 CFR part 
2634.

[58 FR 42874, Aug. 12, 1993, as amended at 72 FR 33165, June 15, 2007]



Sec. 3000.735-102  Counseling and advisory services.

    (a) The Chairman of the Commission shall appoint the Designated 
Agency Ethics Official (DAEO) for the Commission. The DAEO may appoint 
deputy ethics officials to assist in carrying out the responsibilities 
of the designated agency ethics official. The DAEO shall advise 
employees as to the applicability and interpretation of laws and 
regulations involving the standards of conduct for employees of the 
Commission. The DAEO shall furnish advice to employees for the purpose 
of aiding employees in avoiding conflicts of interest, situations, 
actions or conduct that may reflect adversely on the Commission.
    (b) The DAEO shall develop and execute an ethics agency training 
plan providing for an initial orientation for new employees and annual 
ethics training.



Sec. 3000.735-103  Financial interests.

    An employee shall not, either directly or indirectly, have any 
financial interest (whether by ownership of any stock, bond, security, 
or otherwise) in any entity or person whose interests may be 
significantly affected by rates of postage, fees for postage services, 
the classification of mail, or the operation of the Postal Service. This 
paragraph does not proscribe interests in an entity or person whose use 
of the mail is merely an incidental or a minor factor in the general 
conduct of its business.

[66 FR 32545, June 15, 2001]



Sec. 3000.735-104  Outside employment.

    (a) An employee shall not engage in outside employment or 
professional practice, either on a paid or unpaid basis, with or for a 
company or other person whose interests are significantly affected by 
rates of postage, fees for postal services, the classification of mail 
or the operations of Postal Service.
    (b) An employee who wishes to engage in outside employment either on 
a paid or unpaid basis shall obtain the prior written approval of the 
DAEO. A request for such approval shall be submitted in writing with 
sufficient description of the employment to enable the DAEO to make an 
informed determination that the outside employment

[[Page 352]]

is not prohibited by law or regulation, including 5 CFR part 2635 or 5 
CFR part 5601.
    (c) An employee who has been assigned to a particular matter which 
affects the financial interests of a prospective employer and who is 
required, in accordance with 5 CFR 2635.604(a), to disqualify himself 
from participation in that matter shall, notwithstanding the guidance in 
5 CFR 2635.604 (b) and (c), provide notice of disqualification to his 
supervisor upon determining that he will not participate in the matter.



                    Subpart B_Ex Parte Communications



Sec. 3000.735-501  Ex parte communications prohibited.

    Decision-making Commission personnel, as defined in Sec. 3001.7(a), 
shall not, either in an official or unofficial capacity, participate in 
any ex parte communication--either oral or written--with any person 
regarding (1) a particular matter (substantive or procedural) at issue 
in contested proceedings before the Commission or (2) the substantive 
merits of a matter that is likely to become a particular matter at issue 
in contested proceedings before the Commission. A particular matter is 
at issue in contested proceedings before the Commission when it is a 
subject of controversy in a hearing held under 39 U.S.C. 3624 or 
3661(c). However, this section does not prohibit participation in off-
the-record proceedings conducted under regulations adopted by the 
Commission for hearings held under 39 U.S.C. 3624 or 3661(c).

[45 FR 65581, Oct. 3, 1980]



Sec. 3000.735-502  Public record of ex parte communications.

    As ex parte communications (either oral or written) may occur 
inadvertently notwithstanding Sec. 3000.735-501, the employee who 
receives such a communication, shall--within 2 workdays after the 
receipt of such a communication--prepare a written report concerning the 
communication. The report shall identify the employee and the person or 
persons who participated in the ex parte communication; the 
circumstances which resulted in the communication; the substance of the 
communication; and the relationship of the communication to a particular 
matter at issue or likely to become at issue in contested proceedings 
before the Commission. When the ex parte communication concerns a 
particular matter at issue in a proceeding before the Commission, a copy 
of the report shall be submitted to each party to the proceeding. The 
report is a public record of the Commission and a copy thereof shall be 
available to any member of the public on request. This section does not 
apply to ex parte communications under paragraph 3000.735-501(b).

[36 FR 5412, Mar. 23, 1971, as amended at 38 FR 24899, Sept. 11, 1973]



   Sec. Appendix A to Part 3000--Code of Ethics For Government Service

    Resolved by the House of Representatives (the Senate concurring), 
That it is the sense of the Congress that the following Code of Ethics 
should be adhered to by all Government employees, including office-
holders:

                  code of ethics for government service

    Any person in Government service should:
    1. Put loyalty to the highest moral principles and to country above 
loyalty to persons, party, or Government department.
    2. Uphold the Constitution, laws, and legal regulations of the 
United States and of all governments therein and never be a party to 
their evasion.
    3. Give a full day's labor for a full day's pay; giving to the 
performance of his duties his earnest effort and best thought.
    4. Seek to find and employ more efficient and economical ways of 
getting tasks accomplished.
    5. Never discriminate unfairly by the dispensing of special favors 
or privileges to anyone, whether for remuneration or not; and never 
accept, for himself or his family, favors or benefits under 
circumstances which might be construed by reasonable persons as 
influencing the performance of his governmental duties.
    6. Make no private promises of any kind binding upon the duties of 
office, since a Government employee has no private word which can be 
binding on public duty.
    7. Engage in no business with the Government, either directly or 
indirectly, which is inconsistent with the conscientious performance of 
his governmental duties.
    8. Never use any information coming to him confidentially in the 
performance of governmental duties as a means for making private profit.

[[Page 353]]

    9. Expose corruption wherever discovered.
    10. Uphold these principles, ever conscious that public office is a 
public trust.
    Passed July 11, 1958.



PART 3001_RULES OF PRACTICE AND PROCEDURE--Table of Contents



                Subpart A_Rules of General Applicability

Sec.
3001.1 Construction of rules.
3001.2 [Reserved]
3001.3 Scope of rules.
3001.4 Method of citing rules.
3001.5 Definitions.
3001.6 Appearances.
3001.7 Ex parte communications.
3001.8 No participation by investigative or prosecuting officers.
3001.9 Filing of documents.
3001.10 Form and number of copies of documents.
3001.11 General contents of documents.
3001.12 Service of documents.
3001.13 Docket and hearing calendar.
3001.14 Consolidation and separation of proceedings.
3001.15 Computation of time.
3001.16 Continuances and extensions of time.
3001.17 Notice of proceeding.
3001.18 Nature of proceedings.
3001.19 Notice of prehearing conference or hearing.
3001.20 Formal intervention.
3001.20a Limited participation by persons not parties.
3001.20b Informal expression of views by persons not parties or limited 
          participators (commenters).
3001.21 Motions.
3001.22 Requests for waiver.
3001.23 Presiding officers.
3001.24 Prehearing conferences.
3001.25 Discovery--general policy.
3001.26 Interrogatories for purpose of discovery.
3001.27 Requests for production of documents or things for purpose of 
          discovery.
3001.28 Requests for admissions for purpose of discovery.
3001.29 Settlement conferences.
3001.30 Hearings.
3001.31 Evidence.
3001.31a In camera orders.
3001.32 Appeals from rulings of the presiding officer.
3001.33 Depositions.
3001.34 Briefs.
3001.35 Proposed findings and conclusions.
3001.36 Oral argument before the presiding or other designated officer.
3001.37 Oral argument before the Commission.
3001.38 Omission of intermediate decisions.
3001.39 Intermediate decisions.
3001.40 Exceptions to intermediate decisions.
3001.41 Rulemaking proceedings.
3001.42 [Reserved]
3001.43 Public attendance at Commission meetings.

Subparts B-C [Reserved]

  Subpart D_Rules Applicable to Requests for Changes in the Nature of 
                             Postal Services

3001.71 Applicability.
3001.72 Filing of formal requests.
3001.73 Filing of prepared direct testimony.
3001.74 Contents of formal requests.
3001.75 Service by the Postal Service.

Subparts E-L [Reserved]

    Authority: 39 U.S.C. 404(d); 503; 504; 3661.

    Source: 36 FR 396, Jan. 12, 1971, unless otherwise noted.

    Editorial Note: Nomenclature changes for Part 3001 appear at 70 FR 
48277, Aug. 17, 2005, and 72 FR 33165, June 15, 2007.



                Subpart A_Rules of General Applicability



Sec. 3001.1  Construction of rules.

    The rules in this part shall be liberally construed to secure just 
and speedy determination of issues.

[38 FR 4327, Feb. 13, 1973]



Sec. 3001.2  [Reserved]



Sec. 3001.3  Scope of rules.

    The rules of practice in this part are applicable to proceedings 
before the Postal Regulatory Commission under the Act, including those 
which involve a hearing on the record before the Commission or its 
designated presiding officer and, as specified in part 3005 of this 
chapter to the procedures for compelling the production of information 
by the Postal Service. They do not preclude the informal disposition of 
any matters coming before the Commission not required by statute to be 
determined upon notice and hearing.

[75 FR 22197, Apr. 27, 2010]

[[Page 354]]



Sec. 3001.4  Method of citing rules.

    This part shall be referred to as the ``rules of practice.'' Each 
section, paragraph, or subparagraph shall include only the numbers and 
letters to the right of the decimal point. For example, ``3001.24 
Prehearing conferences'' shall be referred to as ``section 24'' or 
``rule 24.''

[65 FR 6539, Feb. 10, 2000]



Sec. 3001.5  Definitions.

    (a) Act means the Postal Reorganization Act (84 Stat. 719, title 39, 
U.S.C.), as amended.
    (b) Postal Service means the U.S. Postal Service established by the 
Act.
    (c) Commission or Commissioner means, respectively, the Postal 
Regulatory Commission established by the Act or a member thereof.
    (d) Secretary means the Secretary or the Acting Secretary of the 
Commission.
    (e) Presiding officer means the Chairman of the Commission in 
proceedings conducted by the Commission en banc or the Commissioner or 
employee of the Commission designated to preside at hearings or 
conferences.
    (f) Person means an individual, a partnership, corporation, trust, 
unincorporated association, public or private organization, or 
governmental agency.
    (g) Party means the Postal Service, a complainant, an appellant, or 
a person who has intervened in a proceeding before the Commission.
    (h) Participant means any party and the officer of the Commission 
who is designated to represent the interests of the general public and, 
for purposes of Sec. Sec. 3001.11(e), 3001.12, 3001.21, 3001.23, 
3001.24, 3001.29, 3001.30, 3001.31, and 3001.32 only, it also means 
persons who are limited participators.
    (i) Complainant means a person or interested party who as permitted 
by section 3662 of the Act files a complaint with the Commission in the 
form and manner hereinafter prescribed.
    (j) Hearing means a hearing under sections 556 and 557 of title 5, 
U.S.C. (80 Stat. 386), as provided by sections 3624, 3661, and 3662 of 
the Act.
    (k) Record means the transcript of testimony and exhibits, together 
with all papers and requests filed in the proceeding, which constitutes 
the exclusive record for decision.
    (l) Effective date of an order or notice issued by the Commission or 
an officer thereof means the date of issuance unless otherwise 
specifically provided.
    (m) Petitioner means a person who as permitted by 39 U.S.C. 404(b) 
appeals to the Commission a determination of the Postal Service to close 
or consolidate a post office.
    (n) Commission meeting means the deliberations of at least three 
Commissioners where such deliberations determine or result in the joint 
conduct or disposition of official Commission business, but does not 
include deliberations required or permitted by Sec. 3001.43(d) or Sec. 
3001.43(e).
    (o) Ex parte communication means an oral or written communication 
not on the public record with respect to which reasonable prior notice 
to all participants and limited participators is not given, but it shall 
not include requests for status reports on any matter or proceeding 
covered by subchapter II of chapter 5 of title 5 or a proceeding 
conducted pursuant to subpart H of this part.
    (p) Domestic Mail Classification Schedule means the classification 
schedule, including schedules of full and phased rates and fees, adopted 
by the Decision of the Governors of the U.S. Postal Service Re 
Recommended Decision of the Postal Rate Commission Regarding the Proper 
Scope and Extent of the Mail Classification Schedule, issued April 3, 
1979, and any amendments thereto adopted pursuant to the procedures of 
subchapter III, chapter 36, title 39 of the U.S.C.
    (q) Office of the Consumer Advocate or OCA means the officer of the 
Commission designated to represent the interests of the general public 
in a Commission proceeding.
    (r) Negotiated service agreement means a written contract, to be in 
effect for a defined period of time, between the Postal Service and a 
mailer, that provides for customer-specific rates or fees and/or terms 
of service in accordance with the terms and conditions of the contract. 
A rate associated with a negotiated service agreement is not a rate of 
general applicability.

[[Page 355]]

    (s) Postal service refers to the delivery of letters, printed 
matter, or mailable packages, including acceptance, collection, sorting, 
transportation, or other functions ancillary thereto.
    (t) Product means a postal service with a distinct cost or market 
characteristic for which a rate or rates are, or may reasonably be, 
applied.
    (u) Rate or class of general applicability means a rate or class 
that is available to all mailers equally on the same terms and 
conditions.

[36 FR 396, Jan. 12, 1971, as amended at 38 FR 4327, Feb. 13, 1973; 42 
FR 8142, Feb. 2, 1977; 42 FR 10992, Feb. 25, 1977; 42 FR 13290, Mar. 10, 
1977; 44 FR 26075, May 4, 1979; 58 FR 38976, July 21, 1993; 65 FR 6539, 
Feb. 10, 2000; 69 FR 7593, Feb. 18, 2004; 71 FR 2472, Jan. 17, 2006; 72 
FR 63691, Nov. 9, 2007; 77 FR 6679, Feb. 9, 2012]



Sec. 3001.6  Appearances.

    (a) By whom. An individual may appear in his/her own behalf; a 
member of a partnership may represent the partnership; and an officer 
may represent a corporation, trust, unincorporated association, or 
governmental agency. A person may be represented in a proceeding by an 
attorney at law admitted to practice and in good standing before the 
Supreme Court of the United States, the highest court of any State or 
Territory of the United States or the District of Columbia, or the Court 
of Appeals or the District Court for the District of Columbia.
    (b) Authority to act. When an officer of any participant or an 
attorney acting in a representative capacity appears in person, submits 
a document to the Commission online as a Principal Account Holder, or 
signs a paper filed with the Commission, his/her personal appearance, 
online submission, or signature, shall constitute a representation to 
the Commission that he/she is authorized to represent the particular 
participant in whose behalf he/she acts. Any person appearing before or 
transacting business with the Commission in a representative capacity 
may be required by the Commission or the presiding officer to file 
evidence of his/her authority to act in such capacity.
    (c) Notice of appearance and withdrawal of appearance. An individual 
intending to appear before the Commission or its presiding officer in a 
representative capacity for a participant in a proceeding shall file 
with the Commission a notice of appearance in the form prescribed by the 
Secretary unless that individual is named in an initial filing of the 
participant whom he/she represents as a person to whom communications 
from the Commission in regard to the filing are to be addressed. A 
person whose authority to represent a participant in a specific 
Commission proceeding has been terminated shall file a timely notice of 
withdrawal of appearance with the Commission.
    (d) Standards of conduct. Individuals practicing before the 
Commission shall conform to the standards of ethical conduct required of 
practitioners in the courts of the United States.
    (e) Disqualification and suspension. After hearing, the Commission 
may disqualify and deny, temporarily or permanently, the privilege of 
appearing and practicing before it in any way to any individual who is 
found not to possess the requisite qualifications, or to have engaged in 
unethical or improper professional conduct. Contumacious conduct at any 
hearing before the Commission or its presiding officer shall be ground 
for exclusion of any individual from such hearing and for summary 
suspension for the duration of the hearing by the Commission or the 
presiding officer.

[36 FR 396, Jan. 12, 1971, as amended at 38 FR 4327, Feb. 13, 1973; 51 
FR 8827, Mar. 14, 1986; 58 FR 38976, July 21, 1993; 67 FR 67559, Nov. 6, 
2002]



Sec. 3001.7  Ex parte communications.

    (a) Definitions--(1) Decision-making Commission personnel. Subject 
to the exception stated in paragraph (a)(2)(ii) of this section, the 
following categories of persons are designated ``decision-making 
Commission personnel'':
    (i) The Commissioners and their personal office staffs;
    (ii) The General Counsel and his/her staff;
    (iii) The Director of the Office of Rates Analysis and Planning and 
his/her staff.
    (iv) Any other employee who may reasonably be expected to be 
involved in the decisional process.

[[Page 356]]

    (2) Non-decision-making Commission personnel. The following 
categories of persons are designated ``non-decision-making Commission 
personnel'';
    (i) All Commission personnel other than decision-making Commission 
personnel;
    (ii) Decision-making Commission personnel not participating in the 
decisional process owing to the prohibitions of Sec. 3001.8 or 39 CFR 
3000.735, Subpart C.
    (b) Prohibition. In any agency proceeding that is required to be 
conducted in accordance with section 556 of Title 5 or a proceeding 
conducted pursuant to part 3025 of this chapter except to the extent 
required for the disposition of ex parte matters as authorized by law:
    (1) Interested persons outside the Commission and non-decision-
making Commission personnel shall not make or knowingly cause to be made 
to any Commission decision-making personnel ex parte communications 
relevant to the merits of the proceeding;
    (2) Commission decision-making personnel shall not make or knowingly 
cause to be made to any interested person outside the Commission or to 
non-decision-making Commission personnel ex parte communications 
relevant to the merits of the proceeding;
    (3) Commission decision-making personnel who receive ex parte 
communications relevant to the merits of the proceeding shall decline to 
listen to such communications and explain that the matter is pending for 
determination. Any recipient thereof shall advise the communicator that 
he/she will not consider the communication and shall promptly and fully 
inform the Commission in writing of the substance of and the 
circumstances attending the communication, so that the Commission will 
be able to take appropriate action.
    (4) Commission decision-making personnel who receive, or who make or 
knowingly cause to be made, communications prohibited by this paragraph 
shall place on the public record of the proceeding:
    (i) All such written communications;
    (ii) Memoranda stating the substance of all such oral 
communications; and
    (iii) All written responses, and memoranda stating the substance of 
all oral responses, to the materials described in paragraphs (b)(4)(i) 
and (b)(4)(ii) of this section.
    (5) Requests for an opportunity to rebut, on the record, any facts 
or contentions contained in an ex parte communication which have been 
placed on the public record of the proceeding pursuant to paragraph 
(b)(4) of this section may be filed in writing with the Commission. The 
Commission will grant such requests only where it determines that the 
dictates of fairness so require. Generally, in lieu of actually 
receiving rebuttal material, the Commission will direct that the alleged 
factual assertion and the proposed rebuttal be disregarded in arriving 
at a decision.
    (c) Applicability. (1) The prohibitions of paragraph (b) of this 
section shall apply beginning at the time at which a proceeding is 
noticed for hearing or appeal unless the person responsible for the 
communication has knowledge that it will be noticed, in which case the 
prohibitions shall apply beginning at the time of his/her acquisition of 
such knowledge.
    (2) Paragraph (b) of this section does not constitute authority to 
withhold information from Congress.
    (d) Violations of ex parte rules. (1) Upon notice of a communication 
knowingly made or knowingly caused to be made by a participant in 
violation of paragraph (b) of this section, the Commission or presiding 
officer at the hearing may, to the extent consistent with the interests 
of justice and the policy of the underlying statutes, require the 
participant to show cause why his/her claim or interest in the 
proceeding should not be dismissed, denied, disregarded, or otherwise 
adversely affected on account of such violation.
    (2) The Commission may, to the extent consistent with the interests 
of justice and the policy of the underlying statutes administered by the 
Commission, consider a violation of paragraph (b) of this section 
sufficient grounds for a decision adverse to a party who has knowingly 
committed such violation or

[[Page 357]]

knowingly caused such violation to occur.

[45 FR 65580, Oct. 3, 1980, as amended at 58 FR 38976, July 21, 1993; 62 
FR 45530, Aug. 28, 1997; 65 FR 6539, Feb. 10, 2000; 77 FR 6679, Feb. 9, 
2012]



Sec. 3001.8  No participation by investigative or prosecuting officers.

    In any proceeding noticed pursuant to Sec. 3001.17, no officer, 
employee or agent of the Commission who appears in the hearing in a 
proceeding before the Commission as an attorney or witness or who 
actively participates in the preparation of evidence or argument 
presented by such persons, shall participate or advise as to the 
intermediate decision or Commission decision in that proceeding except 
as a witness or counsel in public proceedings.



Sec. 3001.9  Filing of documents.

    (a) Filing with the Commission. The filing of each written document 
required or authorized by these rules or any applicable statute, rule, 
regulation, or order of the Commission, or by direction of the presiding 
officer, shall be made using the Internet (Filing Online) pursuant to 
Sec. 3001.10(a) at the Commission's Web site (http://www.prc.gov), 
unless a waiver is obtained. If a waiver is obtained, a hard copy 
document may be filed either by mailing or by hand delivery to the 
Office of the Secretary, Postal Regulatory Commission, 901 New York 
Ave., NW., Suite 200, Washington, DC 20268-0001 during regular business 
hours on a date no later than that specified for such filing. The 
requirements of this section do not apply to participants other than the 
Postal Service in proceedings conducted pursuant to part 3025 of this 
chapter.
    (b) Account holder. In order for a document to be accepted using 
Filing Online, it must be submitted to the Commission by a principal 
account holder or an agent account holder (Filing Online account 
holder). The authority of the principal account holder to represent the 
participant on whose behalf the document is filed must be valid and 
current, in conformance with Sec. 3001.6. The authority of an agent 
account holder to submit documents for a principal account holder must 
be valid and current. A principal account holder must promptly inform 
the Secretary of any change in his/her authority to represent 
participants in a proceeding or any change in the authority delegated to 
an agent account holder to submit documents on his/her behalf.
    (c) Acceptance for filing. Only such documents as conform to the 
requirements of this part and any other applicable rule or order 
authorized by the Commission shall be accepted for filing. In order for 
a document to be accepted using Filing Online, it must be submitted to 
the Commission by a Filing Online account holder.
    (1) Subject to Sec. 3001.9(d):
    (i) A document submitted through Filing Online is filed on the date 
indicated on the receipt issued by the Secretary. It is accepted when 
the Secretary, after review, has posted it on the Daily Listing page of 
the Commission's Web site.
    (ii) A hardcopy document is filed on the date stamped by the 
Secretary. It is accepted when the Secretary, after review, has posted 
it on the Daily Listing page of the Commission's Web site.
    (2) Any document received after the close of regular business hours 
or on a Saturday, Sunday, or holiday, shall be deemed to be filed on the 
next regular business day.
    (d) Rejected filings. Any filing that does not comply with any 
applicable rule or order authorized by the Commission may be rejected. 
Any filing that is rejected is deemed not to have been filed with the 
Commission. If a filing is rejected, the Secretary or the Secretary's 
designee will notify the person submitting the filing, indicating the 
reason(s) for rejection. Acceptance for filing shall not waive any 
failure to comply with this part, and such failure may be cause for 
subsequently striking all or any part of any document.
    (e) Account holder exemptions. Notices of intervention and comments 
solicited by the Commission may be filed under temporary Filing Online 
accounts. Temporary Filing Online accounts may be obtained without 
meeting all of the requirements of paragraphs (b) and (c) of this 
section, and the subscription requirements of Sec. 11. Other categories 
of documents may be filed under temporary Filing Online accounts under

[[Page 358]]

extraordinary circumstances, for good cause shown.

[67 FR 67559, Nov. 6, 2002, as amended at 68 FR 47, Jan. 2, 2003; 77 FR 
6679, Feb. 9, 2012]



Sec. 3001.10  Form and number of copies of documents.

    (a) Documents. Each document filed with the Commission must be 
submitted through Filing Online by an account holder, unless a waiver is 
obtained.
    (1) The text of documents filed with the Commission shall be 
formatted in not less than one and one-half spaced lines except that 
footnotes and quotations may be single spaced. Documents must be 
submitted in Arial 12 point font, or such program, format, or font as 
the presiding officer may designate.
    (2) The Secretary may prescribe additional format requirements for 
documents submitted through Filing Online.
    (3) The form of documents filed as library references is governed by 
Sec. 3001.31(b)(2)(iv).
    (4) Requests for changes in rates and classifications, including 
supporting documentation, shall be filed both online and in hardcopy 
form pursuant to paragraph (b) of this section.
    (5) Documents filed online must satisfy Filing Online system 
compatibility requirements specified by the Secretary in the Filing 
Online User Guide, which may be accessed from the Filing Online page on 
the Commission's Web site, http://www.prc.gov.
    (6) Documents requiring privileged or protected treatment shall not 
be filed online.
    (b) Hard copies. Each document filed in paper form must be produced 
on letter-size paper, 8 to 8\1/2\ inches wide by 10\1/2\ to 11 inches 
long, with left- and right-hand margins not less than 1 inch and other 
margins not less than .75 inches, except that tables, charts or special 
documents attached thereto may be larger if required, provided that they 
are folded to the size of the document to which they are attached. If 
the document is bound, it shall be bound on the left side. Copies of 
documents for filing and service must be printed from a text-based pdf 
version of the document, where possible. Otherwise, they may be 
reproduced by any duplicating process that produces clear and legible 
copies. Each person filing a hardcopy document with the Commission must 
provide an original and two fully conformed copies of the document 
required or permitted to be filed under this part, except for a document 
filed under seal, for which only the original and two (2) copies need be 
filed. The copies need not be signed but shall show the full name of the 
individual signing the original document and the certificate of service 
attached thereto.
    (c) Computer media. A participant that has obtained a waiver of the 
online filing requirement of Sec. 3001.9(a) may submit a document on 
standard PC media, simultaneously with the filing of one printed 
original and two hard copies, provided that the stored document is a 
file generated in either Acrobat (pdf), Word, or WordPerfect, or Rich 
Text Format (rtf).
    (d) Exception for appeals of post office closings and 
consolidations. The requirements of this section do not apply to 
participants other than the Postal Service in proceedings conducted 
pursuant to part 3025 of this chapter.

[67 FR 67559, Nov. 6, 2002, as amended at 77 FR 6679, Feb. 9, 2012]



Sec. 3001.11  General contents of documents.

    (a) Caption and title. The caption of each document filed with the 
Commission in any proceeding shall clearly show the docket designation 
and title of the proceeding before the Commission. The title of such 
document shall identify each participant on whose behalf the filing is 
made and include a brief description of the document or the nature of 
the relief sought therein (e.g., motion for extension, brief on 
exceptions, complaint, notice of intervention, answer to complaint).
    (b) Designation of individuals to receive service. Each notice of 
intervention filed pursuant to Sec. 3001.20 or Sec. 3001.20a must 
state the name, full mailing address, telephone number, and e-mail 
address of up to two individuals designated to receive service of 
hardcopy documents relating to the proceeding.
    (c) Contents. In the event there is no rule, regulation, or order of 
the Commission which specifically prescribes

[[Page 359]]

the contents of any document to be filed, such document shall contain a 
proper identification of the parties concerned and a concise but 
complete statement of the relief sought and of the facts and citations 
of authority and precedent relied upon.
    (d) Improper matter. Defamatory, scurrilous, or unethical matter 
shall not be included in any document filed with the Commission.
    (e) Subscription. Each document filed with the Commission shall be 
subscribed. Subscription constitutes a certification that he/she has 
read the document being subscribed and filed; that he/she knows the 
contents thereof; that if executed in any representative capacity, the 
document has been subscribed and executed in the capacity specified in 
the document with full power and authority so to do; that to the best of 
his/her knowledge, information and belief every statement contained in 
the document is true and no such statements are misleading; and that 
such document is not filed for purposes of delay.
    (1) For a document filed via the Internet by an account holder, the 
subscription requirement is met when the document is filed with the 
Commission.
    (2) For a hardcopy document filed under either Sec. 3001.10(b) or 
(c), the original shall be signed in ink by the individual filing the 
same or by an authorized officer, employee, attorney, or other 
representative and all other copies of such document filed with the 
Commission and served on the participants in any proceeding shall be 
fully conformed thereto.
    (f) Table of contents. Each document filed with the Commission 
consisting of 20 or more pages shall include a table of contents with 
page references. For briefs see Sec. 3001.34.
    (g) Certificate of service. A certificate of service signed in ink 
must be attached to the original of each hardcopy document filed with 
the Commission showing service on all participants in a proceeding as 
prescribed by Sec. 3001.12. All copies filed and served shall be fully 
conformed thereto.

[67 FR 67559, Nov. 6, 2002]



Sec. 3001.12  Service of documents.

    (a) Service by account holders. Each document filed in a proceeding 
via the Internet by an Account Holder shall be deemed served on all 
participants when it is accepted by the Secretary and posted on the 
Commission's Web site, except that:
    (1) A document subject to Sec. 3001.10(a)(4) must meet the service 
requirements that apply to hardcopy documents as well as those that 
apply to documents filed online.
    (2) A document that must be served on a participant that the 
Commission or presiding officer has determined is unable to receive 
service through the Commission's Web site shall be served on such 
participant by the Secretary by First-Class Mail.
    (3) In proceedings conducted pursuant to part 3025 of this chapter, 
the Secretary will serve documents (except an administrative record) on 
participants who do not use Filing Online. Service will be by First-
Class Mail.
    (b) Service by others. If the Commission or presiding officer has 
determined that a participant is unable to file documents online, 
documents filed by that participant must be delivered to the Secretary 
by hand or First-Class Mail. Such documents will be deemed served upon 
all participants when they are accepted by the Secretary and posted on 
the Commission's Web site. If such documents cannot be posted on the 
Commission's website, they will be deemed served on all participants 
when the Secretary posts them as First-Class Mail.
    (c) Service by the Commission. Except as provided in this section, 
each document issued by the Commission or presiding officer shall be 
deemed served upon the participants in the proceeding upon its posting 
by the Commission on its website. Service of Commission documents on any 
participant that the Commission or presiding officer has determined is 
unable to receive service through the Commission Web site shall be by 
First-Class Mail.
    (d) Hardcopy documents. Each participant filing a hardcopy document 
in a proceeding shall serve such document upon each person on the 
proceeding's service list, unless that person is subject to paragraph 
(b) of this section, or

[[Page 360]]

the Commission or presiding officer otherwise directs.
    (e) Limitation on extent of hardcopy service. To avoid the 
imposition of an unreasonable burden upon participants, the Commission 
or the presiding officer may, by appropriate order, limit service of 
hardcopy documents to service upon participants intending to actively 
participate in the hearing, or upon a person or persons designated for 
properly representative groups, or by requiring the making of documents 
available for convenient public inspection, or by any combination of 
such methods.
    (f) Service list. The Secretary shall maintain a current service 
list in each proceeding which shall include the participants in that 
proceeding and up to two individuals designated for service of documents 
by each participant. The service list for each current proceeding will 
be available on the Commission's Web site http://www.prc.gov. Each 
participant is responsible for ensuring that its listing on the 
Commission's Web site is accurate, and should promptly notify the 
Commission of any errors.
    (g) Method of hardcopy service. Service of hardcopy documents may be 
made by First-Class Mail or personal delivery, to the address shown for 
the individuals designated on the Secretary's service list. Service of 
any hardcopy document upon the Postal Service shall be made by 
delivering or mailing six copies thereof to the address shown for the 
individual designated in the Secretary's service list.
    (h) Date of hardcopy service. Whenever service is made by mail, the 
date of the postmark shall be the date of service. Whenever service is 
made by personal delivery, the date of such delivery shall be the date 
of service.
    (i) Form of hardcopy certificate of service. The certificate of 
service of hardcopy documents shall show the name of the participant or 
his/her counsel making service, the date and place of service, and 
include the statement that ``I hereby certify that I have this day 
served the foregoing document upon all participants of record in this 
proceeding in accordance with section 12 of the rules of practice.

[67 FR 67559, Nov. 6, 2002, as amended at 77 FR 6679, Feb. 9, 2012]



Sec. 3001.13  Docket and hearing calendar.

    The Secretary shall maintain a docket of all proceedings, and each 
proceeding as initiated shall be assigned an appropriate designation. 
The Secretary shall maintain a hearing calendar of all proceedings that 
have been set for hearing. Proceedings shall be heard on the date set in 
the hearing order, except that the Commission may for cause, with or 
without motion, at any time with due notice to the parties advance or 
postpone the date of hearing. All documents filed in a docket, other 
than matter filed under seal, and the hearing calendar may be accessed 
remotely via the Commission's Web site, or viewed at the Commission's 
docket section during regular business hours.

[67 FR 67559, Nov. 6, 2002]



Sec. 3001.14  Consolidation and separation of proceedings.

    The Commission, with or without motion, may order proceedings 
involving related issues or facts to be consolidated for hearing of any 
or all matters in issue in such proceedings. The Commission may sever 
proceedings which have been consolidated, or order separate proceedings 
on any issue presented, if it appears that separate proceedings will be 
more convenient, expeditious, or otherwise appropriate.



Sec. 3001.15  Computation of time.

    Except as otherwise provided by law, in computing any period of time 
prescribed or allowed by this part, or by any notice, order, rule or 
regulation of the Commission or a presiding officer, the day of the act, 
event, or default after which the designated period of time begins to 
run is not to be included. The last day of the period so computed is to 
be included unless it is a Saturday, Sunday, or legal holiday for the 
Commission, in which event the period runs until the end of the next day 
which is neither a Saturday, Sunday, or holiday. A part-day holiday 
shall be considered as other days and

[[Page 361]]

not as a holiday. In computing a period of time which is 5 days or less, 
all Saturdays, Sundays, and legal holidays of the Commission are to be 
excluded.

[38 FR 4327, Feb. 13, 1973; 51 FR 8827, Mar. 14, 1986]



Sec. 3001.16  Continuances and extensions of time.

    Continuances of any proceeding or hearing and extensions of time for 
making any filing or performing any act required or allowed to be done 
within a specified time or by a specified date may be granted by the 
Commission or the presiding officer upon motion for good cause shown 
unless the time for performance or filing is limited by statute. 
Requests for extension of time shall be by written motion timely filed 
with the Commission stating the facts on which the application rests, 
except that after a hearing has convened, such requests shall be made by 
written or oral motion to the presiding officer. Requests for 
continuances or extensions of time may as a matter of discretion be 
acted upon without waiting for answers thereto.



Sec. 3001.17  Notice of proceeding.

    (a) When issued. The Commission shall issue a notice of a proceeding 
to be determined on the record with an opportunity for any interested 
person to request a hearing whenever:
    (1) The Postal Service files a request with the Commission to issue 
an advisory opinion on a proposed change in the nature of postal 
services which will generally affect service on a nationwide or 
substantially nationwide basis;
    (2) The Commission in the exercise of its discretion determines that 
an opportunity for hearing should be provided with regard to a complaint 
filed pursuant to part 3030 of this chapter; or
    (3) The Commission in the exercise of its discretion determines it 
is appropriate.
    (b) Publication and service of notice. Each notice of proceeding 
shall be published in the Federal Register and served on the Postal 
Service, and the complainant in a complaint proceeding.
    (c) Contents of notice. The notice of a proceeding shall include the 
following:
    (1) The general nature of the proceeding involved in terms of 
categories listed in paragraph (a) of this section;
    (2) A reference to the legal authority under which the proceeding is 
to be conducted;
    (3) A concise description of proposals for changes in rates or fees, 
proposals for the establishment of or changes in the mail classification 
schedule, proposals for changes in the nature of postal services and, in 
the case of a complaint, an identification of the complainant and a 
concise description of the subject matter of the complaint;
    (4) The date by which notices of intervention and requests for 
hearing must be filed; and
    (5) Such other information as the Commission may desire to include.

[77 FR 6679, Feb. 9, 2012]



Sec. 3001.18  Nature of proceedings.

    (a) Proceedings to be set for hearing. Except as otherwise provided 
in these rules, in any case noticed for a proceeding to be determined on 
the record pursuant to Sec. 3001.17(a), the Commission may hold a 
public hearing if a hearing is requested by any party to the proceeding 
or if the Commission in the exercise of its discretion determines that a 
hearing is in the public interest. The Commission may give notice of its 
determination that a hearing shall be held in its original notice of the 
proceeding or in a subsequent notice issued pursuant to paragraph (b) of 
this section and Sec. 3001.19.
    (b) Procedure in hearing cases. In proceedings which are to be set 
for hearing, the Commission shall issue a notice of hearing or 
prehearing conference pursuant to Sec. 3001.19. After the completion of 
the hearing, the Commission or the presiding officer shall receive such 
briefs and hear such oral argument as may be ordered by the Commission 
or the presiding officer pursuant to Sec. Sec. 3001.34 to 3001.37, and 
the Commission shall then issue a recommended decision, advisory 
opinion, or public report, as appropriate, in accordance with the 
provisions of Sec. Sec. 3001.38 to 3001.39.
    (c) Procedure in non-hearing cases. In any case noticed for a 
proceeding to be determined on the record in which a hearing is not 
requested by any party

[[Page 362]]

or ordered by the Commission, the Commission or the presiding officer 
shall issue a notice of the procedure to be followed with regard to the 
filing of briefs and oral argument, and a recommended decision, advisory 
opinion, or public report, as appropriate, shall then be issued pursuant 
to the provisions of Sec. Sec. 3001.34 to 3001.39. The Commission or 
presiding officer may, if necessary or desirable, call procedural 
conferences by issuance of a notice pursuant to Sec. 3001.19.

[36 FR 396, Jan. 12, 1971, as amended at 65 FR 6540, Feb. 10, 2000]



Sec. 3001.19  Notice of prehearing conference or hearing.

    In any proceeding noticed for a proceeding on the record pursuant to 
Sec. 3001.17(a) the Commission shall give due notice of any prehearing 
conference or hearing by including the time and place of the conference 
or hearing in the notice of proceeding or by subsequently issuing a 
notice of prehearing conference or hearing. Such notice of prehearing 
conference or hearing shall give the title and docket designation of the 
proceeding, a reference to the original notice of proceeding and the 
date of such notice, and the time and place of the conference or 
hearing. Such notice shall be published in the Federal Register and 
served on all participants in the proceeding involved. Notice of the 
time and place where a hearing will be reconvened shall be served on all 
participants in the proceeding unless announcement was made thereof by 
the presiding officer at the adjournment of an earlier session of the 
prehearing conference or hearing.

[65 FR 6540, Feb. 10, 2000]



Sec. 3001.20  Formal intervention.

    (a) Who may intervene. A notice of intervention will be entertained 
in those cases that are noticed for a proceeding pursuant to Sec. 
3001.17(a) from any person claiming an interest of such nature that 
intervention is allowed by the Act, or appropriate to its 
administration.
    (b) Contents. A notice of intervention shall clearly and concisely 
set forth the nature and extent of the intervenor's interest in the 
issues to be decided, including the classifications of postal service 
utilized by the intervenor giving rise to his/her interest in the 
proceeding, and to the extent known, the position of the intervenor with 
regard to the proposed changes in postal rates, fees, classifications, 
or services, or the subject matter of the complaint, as described in the 
notice of the proceeding. Such notice shall state whether or not the 
intervenor requests a hearing or in lieu thereof, a conference, and 
whether or not the intervenor intends to actively participate in a 
hearing. Such notice shall also include on page one thereof the name and 
full mailing address of no more than two persons who are to receive 
service of any documents relating to such proceeding.
    (c) Form and time of filing. Notices of intervention shall be filed 
no later than the date fixed for such filing in any notice or order with 
respect to the proceeding issued by the Commission or its Secretary, 
unless in extraordinary circumstances for good cause shown, the 
Commission authorizes a late filing. Notices of intervention shall 
conform to the requirements of Sec. Sec. 3001.9 through 3001.12.
    (d) Oppositions. Oppositions to notices of intervention may be filed 
by any participant in the proceeding no later than 10 days after the 
notice of intervention is filed. Pending Commission action, an 
opposition to intervention shall delay on a day-for-day basis, the date 
for responses to discovery requests filed by that intervenor.
    (e) Effect of intervention. A person filing a notice of intervention 
shall be a party to the proceeding subject, however, to a determination 
by the Commission, either in response to an opposition, or sua sponte, 
that party status is not appropriate under the Act. Intervenors are also 
subject to the right of the Commission or the presiding officer as 
specified in Sec. 3001.24 to require two or more intervenors having 
substantially like interests and positions to join together for purposes 
of service of documents, presenting evidence, making and arguing motions 
and objections, cross-examining witnesses, filing briefs, and presenting 
oral arguments to the Commission or presiding officer.

[[Page 363]]

No intervention shall be deemed to constitute a decision that the 
intervening party has such an interest in the proceeding that he/she 
would be aggrieved by an ultimate decision by order of the Commission.

[48 FR 15627, Apr. 12, 1983, as amended at 58 FR 38976, July 21, 1993; 
58 FR 38976, July 21, 1993; 65 FR 6540, Feb. 10, 2000; 67 FR 67561, Nov. 
6, 2002]



Sec. 3001.20a  Limited participation by persons not parties.

    Notwithstanding the provisions of Sec. 3001.20, any person may 
appear as a limited participator in any case that is noticed for a 
proceeding pursuant to Sec. 3001.17(a), in accordance with the 
following provisions;
    (a) Form of intervention. Notices of intervention as a limited 
participator shall be in writing, shall set forth the nature and extent 
of the intervenor's interest in the proceeding, and shall conform to the 
requirements of Sec. Sec. 3001.9 through 3001.12.
    (b) Oppositions. Oppositions to notices to intervene as a limited 
participator may be filed by any participant in the proceeding no later 
than 10 days after the notice of intervention as a limited participator 
is filed.
    (c) Scope of participation. Subject to the provisions of Sec. 
3001.30(f), limited participators may present evidence which is relevant 
to the issues involved in the proceeding and their testimony shall be 
subject to cross-examination on the same terms applicable to that of 
formal participants. Limited participants may file briefs or proposed 
findings pursuant to Sec. Sec. 3001.34 and 3001.35, and within 15 days 
after the release of an intermediate decision, or such other time as may 
be fixed by the Commission, they may file a written statement of their 
position on the issues. The Commission or the presiding officer may 
require limited participators having substantially like interests and 
positions to join together for any or all of the above purposes. Limited 
participators are not required to respond to discovery requests under 
Sec. Sec. 3001.25 through 3001.28 except to the extent that those 
requests are directed specifically to testimony which the limited 
participators provided in the proceeding; however, limited 
participators, particularly those making contentions under 39 U.S.C. 
3622(b)(4), are advised that failure to provide relevant and material 
information in support of their claims will be taken into account in 
determining the weight to be placed on their evidence and arguments.

[48 FR 15627, Apr. 12, 1983, as amended at 58 FR 38976, July 21, 1993; 
60 FR 12115, Mar. 6, 1995; 65 FR 6540, Feb. 10, 2000; 67 FR 67561, Nov. 
6, 2002]



Sec. 3001.20b  Informal expression of views by persons not parties or 
limited participators (commenters).

    Notwithstanding the provisions of Sec. Sec. 3001.19a and 3001.20, 
any person may file with the Commission, in any case that is noticed for 
a hearing pursuant to Sec. 3001.17, an informal statement of views in 
writing, in accordance with the following provisions:
    (a) Form of statement. A statement filed pursuant to this section 
may be submitted as a hardcopy letter mailed to the Secretary or an 
electronic message entered on the form provided for this purpose under 
the ``Contact Us'' link on the Commission's Web site, http://
www.prc.gov.
    (b) Contents of statement. A statement filed pursuant to this 
section shall set forth the name and full mailing address of the person 
by whom or on whose behalf it is filed, a concise statement of the issue 
or issues to which the comments contained therein apply, and a clear 
statement of any views, opinions, or suggestions which the person filing 
the statement wishes to lay before the Commission.
    (c) Disposition by the Commission or presiding officer. Statements 
filed pursuant to this section shall be made a part of the Commission's 
files in the proceeding. The Secretary shall maintain a file of such 
statements which shall be segregated from the evidentiary record in the 
proceeding, and shall be open to public inspection during the 
Commission's office hours. A statement or exhibit thereto filed pursuant 
to this section shall not be accepted in the ``record,'' as defined by 
Sec. 3001.5(k) except to the extent that it is (1) otherwise formally 
introduced in evidence, or (2) a proper subject of official notice, 
pursuant to Sec. 3001.31(j).

[[Page 364]]

    (d) Ex parte communications--exception. A statement filed pursuant 
to this section shall not be considered an ex parte communication within 
the meaning of Sec. 3001.7.

[42 FR 8142, Feb. 9, 1977. Redesignated at 48 FR 15627, Apr. 12, 1983, 
as amended at 58 FR 38976, July 21, 1993; 68 FR 47, Jan. 2, 2003]



Sec. 3001.21  Motions.

    (a) Scope and contents. An application for an order or ruling not 
otherwise specifically provided for in this part shall be by motion. 
Motions shall set forth with particularity the ruling or relief sought, 
the grounds and basis therefor, and the statutory or other authority 
relied upon, and shall be filed with the Secretary and served pursuant 
to the provisions of Sec. Sec. 3001.9 to 3001.12. All motions to 
dismiss proceedings or other motions which involve a final determination 
of the proceeding shall be addressed to the Commission. After a 
presiding officer is designated in any proceeding, and before the 
issuance of an initial decision pursuant to Sec. 3001.39 or 
certification of the record to the Commission pursuant to Sec. 3001.38, 
all other motions in that proceeding shall be addressed to the presiding 
officer.
    (b) Answers. Within seven days after a motion is filed, or such 
other period as the rules provide or the Commission or presiding officer 
may fix, any participant to the proceeding may file and serve an answer 
in support of or in opposition to the motion pursuant to Sec. Sec. 
3001.9 to 3001.12. Such answers shall state with particularity the 
position of the participant with regard to the ruling or relief 
requested in the motion and the grounds and basis and statutory or other 
authority relied upon. Unless the Commission or presiding officer 
otherwise provides, no reply to an answer or any further responsive 
document shall be filed.
    (c) Motions to strike. Motions to strike are requests for 
extraordinary relief and are not substitutes for briefs or rebuttal 
evidence in a proceeding. All motions to strike testimony or exhibit 
materials are to be submitted in writing at least 14 days before the 
scheduled appearance of the witness, unless good cause is shown. 
Responses to motions to strike are due within seven days.

[38 FR 4327, Feb. 13, 1973, as amended at 51 FR 8827, Mar. 14, 1986; 58 
FR 38976, July 21, 1993; 65 FR 6540, Feb. 10, 2000]



Sec. 3001.22  Requests for waiver.

    Upon request by motion, any requirement of any subpart of this Part 
3001 may be waived in whole or in part to the extent permitted by law 
upon a showing that such waiver will not unduly prejudice the interests 
of other participants and is consistent with the public interest and the 
Commission's expeditious discharge of its responsibilities under the 
Act. A request for waiver shall not be entertained unless it is timely 
filed so as to permit Commission disposition of the request prior to the 
date specified for the requirement for which waiver is requested. The 
pendency of a request for waiver does not justify or excuse any person 
from timely meeting the requirements of this part.



Sec. 3001.23  Presiding officers.

    (a) Authority delegated. Presiding officers shall have the 
authority, within the Commission's powers and subject to its published 
rules, as follows:
    (1) To regulate the course of the hearing, including the recessing, 
reconvening, and adjournment thereof, unless otherwise directed by the 
Commission, as provided in Sec. 3001.16;
    (2) To administer oaths and affirmations;
    (3) To issue subpoenas authorized by law;
    (4) To rule upon offers of proof and receive relevant evidence;
    (5) To take or authorize that depositions be taken as provided in 
Sec. 3001.33;
    (6) To hold appropriate conferences before or during hearings and to 
rule on matters raised at such conferences including those specified in 
paragraph (d) of Sec. 3001.24;
    (7) To dispose of procedural requests or similar matters but not, 
before their initial or recommended decision, to dispose of motions made 
during hearings to dismiss proceedings or other motions which involve a 
final determination of the proceeding;
    (8) Within their discretion, or upon direction of the Commission, to 
certify

[[Page 365]]

any question to the Commission for its consideration and disposition;
    (9) To submit an initial or recommended decision in accordance with 
Sec. Sec. 3001.38 and 3001.39; and
    (10) To take any other action necessary or appropriate to the 
discharge of the duties vested in them, consistent with the statutory or 
other authorities under which the Commission functions and with the 
rules, regulations, and policies of the Commission.
    (b) Conduct of hearings. It is the duty of the presiding officer to 
conduct a fair and impartial hearing and to maintain order. Any 
disregard by participants or counsel of his/her rulings on matters of 
order and procedure shall be noted on the record, and where he/she deems 
it necessary shall be made the subject of a special written report to 
the Commission. In the event that participants or counsel should be 
guilty of disrespectful, disorderly, or contumacious language or conduct 
in connection with any hearing, the presiding officer immediately may 
submit to the Commission his/her report thereon, together with his/her 
recommendations, and in his/her discretion, suspend the hearing.
    (c) Ex parte communication. Except to the extent required for the 
disposition of ex parte matters as authorized by law and by the rules of 
the Commission, no presiding officer shall, in any proceeding in which 
the Commission may so direct, or in any proceeding required by statute 
to be determined on the record after opportunity for hearing, consult 
any person on any matter in issue unless upon notice and opportunity for 
all participants to be heard.
    (d) Disqualification. A presiding officer may withdraw from a 
proceeding when he/she deems himself disqualified, or may be withdrawn 
by the Commission for good cause found after timely affidavits alleging 
personal bias or other disqualifications have been filed.

[36 FR 396, Jan. 12, 1971, as amended at 49 FR 6490, Feb. 22, 1984; 51 
FR 8827, Mar. 14, 1986; 58 FR 38976, July 21, 1993]



Sec. 3001.24  Prehearing conferences.

    (a) Initiation and purposes. In any proceeding the Commission or the 
presiding officer may, with or without motion, upon due notice as to 
time and place, direct the participants in a proceeding to appear for a 
prehearing conference for the purposes of considering all possible ways 
of expediting the proceeding, including those in paragraph (d) of this 
section. It is the intent of the Commission to issue its recommended 
decision or advisory opinion on requests under sections 3622, 3623, and 
3661 of the Act with the utmost practicable expedition. The Commission 
directs that these prehearing procedures shall be rigorously pursued by 
the presiding officer and all participants to that end.
    (b) Informal off-the-record procedures. In order to make the 
prehearing conference as effective as possible, the presiding officer 
may, in his/her discretion, direct that conferences be held off the 
record at the beginning of a prehearing conference or at other 
appropriate times, without the presiding officer being present. Such 
informal off-the-record conferences shall be presided over by the 
Commission's officer designated to represent the interests of the 
general public or such other person as the participants may select. At 
such off-the-record conferences the participants shall be expected to 
reach agreement on those matters which will expedite the proceeding, 
including the matters specified in the notice of the prehearing 
conference, in the ruling of the presiding officer directing that the 
off-the-record conference be held and in paragraph (d) of this section. 
A report on the results of such off-the-record conference shall be made 
to the presiding officer on the record at a time specified by the 
presiding officer and he/she shall then determine the further prehearing 
procedures to be followed.
    (c) Required preparation and cooperation of all parties. All 
participants in any proceeding before the Commission are required and 
expected to come to the prehearing conference fully prepared to discuss 
in detail and resolve all matters specified in paragraph (d) of this 
section, and notice of the prehearing conference, and such other notice 
or agenda as may have been issued by the Commission or the presiding 
officer. All participants are required and expected to cooperate fully 
at all stages of the proceeding to achieve

[[Page 366]]

these objectives, through thorough advance preparation for the 
prehearing conference, including informal communications between the 
participants, requests for discovery and appropriate discovery 
procedures at the earliest possible time and no later than at the 
prehearing conference, and the commencement of preparation of evidence 
and cross-examination. The failure of any participant to appear at the 
prehearing conference or to raise any matters that could reasonably be 
anticipated and resolved at the prehearing conference shall not be 
permitted to unduly delay the progress of the proceeding and shall 
constitute a waiver of the rights of the participant with regard 
thereto, including all objections to the agreements reached, actions 
taken, or rulings issued by the presiding officer with regard thereto.
    (d) Matters to be pursued. At the prehearing conference in any 
proceeding, the presiding officer and the participants shall consider 
and resolve the following matters:
    (1) The definition and simplification of the issues including any 
appropriate explanation, clarification, or amendment of any proposal, 
filing, evidence, complaint or other pleading filed by any participant;
    (2) Arrangement for timely completion of discovery from the Postal 
Service or any other participant concerning information desired by any 
participant with regard to any issues in the proceeding or prior 
filings, evidence or pleadings of any participant;
    (3) Agreement as to procedures for timely discovery with regard to 
any future evidentiary filings of any participant;
    (4) Stipulations, admissions or concessions as to evidentiary facts, 
and agreements as to documentary matters, exhibits and matters of 
official notice, which will avoid unnecessary proof or dispute;
    (5) Grouping parties with substantially like interests for purposes 
of presenting evidence, making and arguing motions and objections, 
cross-examining witnesses, filing briefs, and presenting oral argument 
to the Commission or presiding officer;
    (6) Disclosure of the number, identity and qualifications of 
witnesses, and the nature of their testimony, particularly with respect 
to the policies of the Act and, as applicable according to the nature of 
the proceeding, each factor stated in section 3622 or 3623 of the Act;
    (7) Limitation of the scope of the evidence and the number of 
witnesses to eliminate irrelevant, immaterial, or cumulative and 
repetitious evidence;
    (8) Procedures to direct and control the use of discovery prior to 
the hearing and submission of written testimony and exhibits on matters 
in dispute so as to restrict to a bare minimum the amount of hearing 
time required for oral cross-examination of witnesses;
    (9) Division of the proceeding where practicable into two or more 
phases for separate simultaneous hearings;
    (10) Fixing dates for the submission and service of such written 
testimony and exhibits as may be appropriate in advance of the hearing;
    (11) Order of presentation of the evidence and cross-examination of 
witnesses so that the hearing may proceed in the most expeditious and 
orderly manner possible; and
    (12) All other matters which would aid in an expeditious disposition 
of the proceeding, including consent of the participants to the conduct 
of the entire proceedings off the record.
    (e) Rulings by presiding officer. The presiding officer at such 
prehearing conference, irrespective of the consent of the participants, 
shall dispose of by ruling (1) any of the procedural matters itemized in 
paragraph (d) of this section and (2) such other procedural matters on 
which he/she is authorized to rule during the course of the hearing if 
ruling at this stage would expedite the proceeding. Either on the record 
at the conclusion of such prehearing conference, or by order issued 
shortly thereafter, the presiding officer shall state the agreements 
reached by the participants, the actions taken, and the rulings made by 
the presiding officer. Such rulings shall control the subsequent course 
of the proceedings unless modified at the hearing to prevent manifest 
injustice.

[36 FR 396, Jan. 12, 1971, as amended at 58 FR 38976, July 21, 1993]

[[Page 367]]



Sec. 3001.25  Discovery--general policy.

    (a) Rules 26 through 28 allow discovery reasonably calculated to 
lead to admissible evidence during a noticed proceeding. Generally, 
discovery against a participant will be scheduled to end prior to the 
receipt into evidence of that participant's direct case. An exception to 
this procedure shall operate in all proceedings brought under 39 U.S.C. 
3622, 3623, 3661 and 3662 when a participant needs to obtain information 
(such as operating procedures or data) available only from the Postal 
Service. Discovery requests of this nature are permissible only for the 
purpose of the development of rebuttal testimony and may be made up to 
20 days prior to the filing date for final rebuttal testimony.
    (b) The discovery procedures set forth in rules 26 through 28 are 
not exclusive. Participants are encouraged to engage in informal 
discovery whenever possible to clarify exhibits and testimony. The 
results of these efforts may be introduced into the record by 
stipulation, by supplementary testimony or exhibit, by presenting 
selected written interrogatories and answers for adoption by a witness 
at the hearing, or by other appropriate means. In the interest of 
reducing motion practice, parties also are expected to use informal 
means to clarify questions and to identify portions of discovery 
requests considered overbroad or burdensome.
    (c) If a participant or an officer or agent of a participant fails 
to obey an order of the Commission or the presiding officer to provide 
or permit discovery pursuant to Sec. Sec. 3001.26 to 3001.28, the 
Commission or the presiding officer may make such orders in regard to 
the failure as are just, and among others, may direct that the matters 
regarding which the order was made or any other designated facts shall 
be taken to be established for the purposes of the proceeding in 
accordance with the claim of the participants obtaining the order, or 
prohibit the disobedient participant from introducing designated matters 
in evidence, or strike the evidence, complaint or pleadings or parts 
thereof.

[65 FR 6543, Feb. 10, 2000]



Sec. 3001.26  Interrogatories for purpose of discovery.

    (a) Service and contents. In the interest of expedition and limited 
to information which appears reasonably calculated to lead to the 
discovery of admissible evidence, any participant may propound to any 
other participant in a proceeding written, sequentially numbered 
interrogatories, by witness, requesting nonprivileged information 
relevant to the subject matter in such proceeding, to be answered by the 
participant served, who shall furnish such information as is available 
to the participant. A participant through interrogatories may require 
any other participant to identify each person whom the other participant 
expects to call as a witness at the hearing and to state the subject 
matter on which the witness is expected to testify. The participant 
propounding the interrogatories shall file them with the Commission in 
conformance with Sec. Sec. 3001.9 through 3001.12. Follow-up 
interrogatories to clarify or elaborate on the answer to an earlier 
discovery request may be filed after the initial discovery period ends. 
They must be filed within seven days of receipt of the answer to the 
previous interrogatory unless extraordinary circumstances are shown.
    (b) Answers. Answers to discovery requests shall be prepared so that 
they can be incorporated as written cross-examination. Each answer shall 
begin on a separate page, identify the individual responding and the 
relevant testimony number, if any, the participant who asked the 
question, and the number and text of the question. Each interrogatory 
shall be answered separately and fully in writing, unless it is objected 
to, in which event the reasons for objection shall be stated in the 
manner prescribed by paragraph (c) of this section. The participant 
responding to the interrogatories shall file the answers in conformance 
with Sec. Sec. 3001.9 through 3001.12 within 14 days of the filing of 
the interrogatories or within such other period as may be fixed by the 
Commission or presiding officer, but before the conclusion of the 
hearing.
    (c) Objections. In the interest of expedition, the bases for 
objection shall be clearly and fully stated. If objection is

[[Page 368]]

made to part of an interrogatory, the part shall be specified. A 
participant claiming privilege shall identify the specific evidentiary 
privilege asserted and state the reasons for its applicability. A 
participant claiming undue burden shall state with particularity the 
effort that would be required to answer the interrogatory, providing 
estimates of cost and work hours required, to the extent possible. An 
interrogatory otherwise proper is not necessarily objectionable because 
an answer would involve an opinion or contention that relates to fact or 
the application of law to fact, but the Commission or presiding officer 
may order that such an interrogatory need not be answered until a 
prehearing conference or other later time. Objections shall be filed 
with the Commission in conformance with Sec. Sec. 3001.9 through 
3001.12 within 10 days of the filing of the interrogatories.
    (d) Motions to compel responses to discovery. Motions to compel a 
more responsive answer, or an answer to an interrogatory to which an 
objection was interposed, should be filed within 14 days of the answer 
or objection to the discovery request. The text of the discovery 
request, and any answer provided, should be provided as an attachment to 
the motion to compel. Participants who have objected to interrogatories 
which are the subject of a motion to compel shall have seven days to 
answer. Answers will be considered supplements to the arguments 
presented in the initial objection.
    (e) Compelled answers. The Commission, or the presiding officer, 
upon motion of any participant to the proceeding, may compel a more 
responsive answer, or an answer to an interrogatory to which an 
objection has been raised if the objection is found not to be valid, or 
may compel an additional answer if the initial answer is found to be 
inadequate. Such compelled answers shall be filed in conformance with 
Sec. Sec. 3001.9 through 3001.12 within seven days of the date of the 
order compelling an answer or within such other period as may be fixed 
by the Commission or presiding officer, but before the conclusion of the 
hearing.
    (f) Supplemental answers. The individual or participant who has 
answered interrogatories is under the duty to seasonably amend a prior 
answer if he/she obtains information upon the basis of which he/she 
knows that the answer was incorrect when made or is no longer true. 
Participants shall serve supplemental answers to update or to correct 
responses whenever necessary, up until the date the answer could have 
been accepted into evidence as written cross-examination. Participants 
filing supplemental answers shall indicate whether the answer merely 
supplements the previous answer to make it current or whether it is a 
complete replacement for the previous answer.
    (g) Orders. The Commission or the presiding officer may order that 
any participant or person shall answer on such terms and conditions as 
are just and may for good cause make any protective order, including an 
order limiting or conditioning interrogatories, as justice requires to 
protect a participant or person from undue annoyance, embarrassment, 
oppression, or expense.

[65 FR 6541, Feb. 10, 2000, as amended at 67 FR 67561, Nov. 6, 2002]



Sec. 3001.27  Requests for production of documents or things for purpose
of discovery.

    (a) Service and contents. In the interest of expedition and limited 
to information which appears reasonably calculated to lead to the 
discovery of admissible evidence, any participant may serve on any other 
participant to the proceeding a request to produce and permit the 
participant making the request, or someone acting in his/her behalf, to 
inspect and copy any designated documents or things that constitute or 
contain matters, not privileged, that are relevant to the subject matter 
involved in the proceeding and that are in the custody or control of the 
participant to whom the request is addressed. The request shall set 
forth the items to be inspected either by individual item or category, 
and describe each item and category with reasonable particularity, and 
shall specify a reasonable time, place and manner of making inspection. 
The participant requesting the production of documents or things shall 
file its request with the Commission in conformance with Sec. Sec. 
3001.9 through 3001.12.

[[Page 369]]

    (b) Answers. The participant responding to the request shall file an 
answer with the Commission in conformance with Sec. Sec. 3001.9 through 
12 within 14 days after the request is filed, or within such other 
period as may be fixed by the Commission or presiding officer. The 
answer shall state, with respect to each item or category, that 
inspection will be permitted as requested unless the request is objected 
to pursuant to paragraph (c) of this section.
    (c) Objections. In the interest of expedition, the bases for 
objection shall be clearly and fully stated. If objection is made to 
part of an item or category, the part shall be specified. A participant 
claiming privilege shall identify the specific evidentiary privilege 
asserted and state with particularity the reasons for its applicability. 
A participant claiming undue burden shall state with particularity the 
effort that would be required to answer the request, providing estimates 
of cost and work hours required, to the extent possible. Objections 
shall be filed with the Commission in conformance with Sec. Sec. 3001.9 
through 3001.12 within 10 days of the request for production.
    (d) Motions to compel requests for production of documents or things 
for purposes of discovery. Motions to compel shall be filed within 14 
days of the answer or objection to the discovery request. The text of 
the discovery request, and any answer provided, should be provided as an 
attachment to the motion to compel. Participants who have objected to 
requests for production of documents or things which are the subject of 
a motion to compel shall have seven days to answer. Answers will be 
considered supplements to the arguments presented in the initial 
objection.
    (e) Compelled answers. Upon motion of any participant to the 
proceeding to compel a response to discovery, as provided in paragraph 
(d) of this section, the Commission or the presiding officer may compel 
production of documents or things to which an objection is found not to 
be valid. Such compelled documents or things shall be made available to 
the participant making the motion within seven days of the date of the 
order compelling production or within such other period as may be fixed 
by the Commission or presiding officer, but before the conclusion of the 
hearing. When complying with orders to produce documents or things, 
notice shall be filed in conformance with Sec. Sec. 3001.9 through 
3001.12. The Commission or the presiding officer may, on such terms and 
conditions as are just and reasonable, order that any participant in a 
proceeding shall respond to a request for inspection, and may make any 
protective order of the nature provided in Sec. 3001.26(g) as may be 
appropriate.

[65 FR 6541, Feb. 10, 2000, as amended at 67 FR 67562, Nov. 6, 2002]



Sec. 3001.28  Requests for admissions for purpose of discovery.

    (a) Service and content. In the interest of expedition, any 
participant may serve upon any other participant a written request for 
the admission, for purposes of the pending proceeding only, of any 
relevant, unprivileged facts, including the genuineness of any documents 
or exhibits to be presented in the hearing. The participant requesting 
the admission shall file its request with the Commission in conformance 
with Sec. Sec. 3001.9 through 3001.12.
    (b) Answers. Each matter of which an admission is requested shall be 
separately set forth and is admitted unless within 14 days after the 
request is filed, or within such other period as may be fixed by the 
Commission or presiding officer, the participant to whom the request is 
directed files a written answer or objection pursuant to paragraph (c) 
of this section. A participant who answers a request for admission shall 
file its answer with the Commission in conformance with Sec. Sec. 
3001.9 through 3001.12.
    (c) Objections. In the interest of expedition, the bases for 
objection shall be clearly and fully stated. If objection is made to 
part of an item, the part shall be specified. A participant claiming 
privilege shall identify the specific evidentiary privilege asserted and 
state the reasons for its applicability. A participant claiming undue 
burden shall state with particularity the effort that would be required 
to answer the request, providing estimates of cost and work hours 
required to the extent possible. Objections shall be filed with the 
Commission in conformance with

[[Page 370]]

Sec. Sec. 3001.9 through 3001.12, within 10 days of the request for 
admissions.
    (d) Motions to compel responses to requests for admissions. Motions 
to compel a more responsive answer, or an answer to a request to which 
an objection was interposed, shall be filed within 14 days of the answer 
or objection to the request for admissions. The text of the request for 
admissions, and any answer provided, should be provided as an attachment 
to the motion to compel. Participants who have objected to requests for 
admissions which are the subject of a motion to compel shall have seven 
days to answer. Answers will be considered supplements to the arguments 
presented in the initial objection.
    (e) Compelled answers. Upon motion of any participant to the 
proceeding the Commission or the presiding officer may compel answers to 
a request for admissions to which an objection has been raised if the 
objection is found not to be valid. Such compelled answers shall be 
filed with the Commission in conformance with Sec. Sec. 3001.9 through 
3001.12 within seven days of the date of the order compelling production 
or within such other period as may be fixed by the Commission or the 
presiding officer, but before the conclusion of the hearing. If the 
Commission or presiding officer determines that an answer does not 
comply with the requirements of this rule, it may order either that the 
matter is admitted or that an amended answer be filed.

[65 FR 6542, Feb. 10, 2000, as amended at 67 FR 67562, Nov. 6, 2002]



Sec. 3001.29  Settlement conferences.

    Any participant in a proceeding may submit offers of settlement or 
proposals of adjustment at any time and may request a conference between 
the participants to consider such offers or proposals. The Commission or 
the presiding officer shall afford the participants appropriate 
opportunity prior to or during the hearing for conferences for the 
purpose of considering such offers or proposals as time, the nature of 
the proceeding, and the public interest permit. Unaccepted offers of 
settlement or adjustment and proposed stipulations not agreed to shall 
be privileged and shall not be admissible in evidence against any 
participant claiming such privilege.



Sec. 3001.30  Hearings.

    (a) How initiated. Hearings for the purpose of taking evidence shall 
be initiated by the issuance of a notice by the Commission as provided 
in Sec. 3001.19.
    (b) Presiding officer. All hearings shall be held before the 
Commission sitting en banc, or a duly designated presiding officer.
    (c) Entering of appearances. The Commission or the presiding officer 
before whom the hearing is held will cause to be entered on the record 
all appearances together with a notation showing in whose behalf each 
such appearance has been made.
    (d) Order of procedure. In public hearings before the Commission, 
the Postal Service shall open and close in proceedings which it has 
initiated under sections 3622, 3623, or 3661 of the Act, and a 
complainant shall open and close in proceedings on complaints filed 
under section 3662 of the Act. With respect to the order of presentation 
of all other participants, and in all other proceedings, unless 
otherwise ordered by the Commission, the presiding officer shall direct 
the order of presentation of evidence and issue such other procedural 
orders as may be necessary to assure the orderly and expeditious 
conclusion of the hearing.
    (e)(1) Presentations by participants. Any participant shall have the 
right in public hearings of presentation of evidence, cross-examination 
(limited to testimony adverse to the participant conducting the cross-
examination), objection, motion, and argument. The case-in-chief of 
participants other than the proponent shall be in writing and shall 
include the participant's direct case and rebuttal, if any, to the 
initial proponent's case-in-chief. It may be accompanied by a trial 
brief or legal memoranda. (Legal memoranda on matters at issue will be 
welcome at any stage of the proceeding.) There will be an opportunity 
for participants to rebut presentations of other participants and for 
the initial proponent to present surrebuttal evidence. New affirmative 
matter (not in reply to another participant's direct case) should not be 
included in rebuttal testimony

[[Page 371]]

or exhibits. When objections to the admission or exclusion of evidence 
before the Commission or the presiding officer are made, the grounds 
relied upon shall be stated. Formal exceptions to rulings are 
unnecessary.
    (2) Written cross-examination. Written cross-examination will be 
utilized as a substitute for oral cross-examination whenever possible, 
particularly to introduce factual or statistical evidence. Designations 
of written cross-examination should be served in accordance with 
Sec. Sec. 3001.9 through 3001.12 no later than three working days 
before the scheduled appearance of a witness. Designations shall 
identify every item to be offered as evidence, listing the participant 
who initially posed the discovery request, the witness and/or party to 
whom the question was addressed (if different from the witness 
answering), the number of the request and, if more than one answer is 
provided, the dates of all answers to be included in the record. (For 
example, ``OCA-T1-17 to USPS witness Jones, answered by USPS witness 
Smith (March 1, 1997) as updated (March 21, 1997)).'' When a participant 
designates written cross-examination, two hard copies of the documents 
to be included shall simultaneously be submitted to the Secretary of the 
Commission. The Secretary of the Commission shall prepare for the record 
a packet containing all materials designated for written cross-
examination in a format that facilitates review by the witness and 
counsel. The witness will verify the answers and materials in the 
packet, and they will be entered into the transcript by the presiding 
officer. Counsel may object to written cross-examination at that time, 
and any designated answers or materials ruled objectionable will be 
stricken from the record.
    (3) Oral cross-examination. Oral cross-examination will be permitted 
for clarifying written cross-examination and for testing assumptions, 
conclusions or other opinion evidence. Notices of intent to conduct oral 
cross-examination should be filed three or more working days before the 
announced appearance of the witness and should include specific 
references to the subject matter to be examined and page references to 
the relevant direct testimony and exhibits. A participant intending to 
use complex numerical hypotheticals, or to question using intricate or 
extensive cross-references, shall provide adequately documented cross-
examination exhibits for the record. Copies of these exhibits should be 
filed at least two calendar days (including one working day) before the 
scheduled appearance of the witness. They may be filed online or 
delivered in hardcopy form to counsel for the witness, at the discretion 
of the participant. If a participant has obtained permission to receive 
service of documents in hardcopy form, hardcopy notices of intent to 
conduct oral cross-examination of witnesses for that participant should 
be delivered to counsel for that participant and served three or more 
working days before the announced appearance of the witness, and cross-
examination exhibits should be delivered to counsel for the witness at 
least two calendar days (including one working day) before the scheduled 
appearance of the witness.
    (f) Limitations on presentation of the evidence. The taking of 
evidence shall proceed with all reasonable diligence and dispatch, and 
to that end, the Commission or the presiding officer may limit 
appropriately (1) the number of witnesses to be heard upon any issue, 
(2) the examination by any participant to specific issues, and (3) the 
cross-examination of a witness to that required for a full and true 
disclosure of the facts necessary for the disposition of the proceeding 
and to avoid irrelevant, immaterial, or unduly repetitious testimony.
    (g) Motions during hearing. After a hearing has commenced in a 
proceeding, a request may be made by motion to the presiding officer for 
any procedural ruling or relief desired. Such motions shall set forth 
the ruling or relief sought, and state the grounds therefor and 
statutory or other supporting authority. Motions made during hearings 
may be stated orally upon the record, except that the presiding officer 
may require that such motions be reduced to writing and filed 
separately. Any participant shall have the opportunity to answer or 
object to such motions at the time and in the

[[Page 372]]

manner directed by the presiding officer.
    (h) Rulings on motions. The presiding officer is authorized to rule 
upon any such motion not formally acted upon by the Commission prior to 
the commencement of a prehearing conference or hearing where immediate 
ruling is essential in order to proceed with the prehearing conference 
or hearing, and upon any motion to the presiding officer filed or made 
after the commencement thereof, except that no motion made to the 
presiding officer, a ruling upon which would involve or constitute a 
final determination of the proceeding, shall be ruled upon affirmatively 
by the presiding officer except as a part of his intermediate decision. 
This section shall not preclude a presiding officer, within his 
discretion, from referring any motion made in hearing to the Commission 
for ultimate determination.
    (i) Transcript corrections. Corrections to the transcript of a 
hearing should not be requested except to correct a material substantive 
error in the transcription made at the hearing.

[36 FR 396, Jan. 12, 1971, as amended at 60 FR 12116, Mar. 6, 1995; 65 
FR 6543, Feb. 10, 2000; 67 FR 67563, Nov. 6, 2002]



Sec. 3001.31  Evidence.

    (a) Form and admissibility. In any public hearing before the 
Commission, or a presiding officer, relevant and material evidence which 
is not unduly repetitious or cumulative shall be admissible. Witnesses 
whose testimony is to be taken shall be sworn, or shall affirm, before 
their testimony shall be deemed evidence in the proceeding or any 
questions are put to them.
    (b) Documentary material--(1) General. Documents and detailed data 
and information shall be presented as exhibits. Exhibits should be self-
explanatory. They should contain appropriate footnotes or narrative 
explaining the source of each item of information used and the methods 
employed in statistical compilations. The principal title of each 
exhibit should state what it contains or represents. The title may also 
contain a statement of the purpose for which the exhibit is offered; 
however, this statement will not be considered part of the evidentiary 
record. Where one part of a multi-part exhibit is based on another part 
or on another exhibit, appropriate cross-references should be made. 
Relevant exposition should be included in the exhibits or provided in 
accompanying testimony. Testimony, exhibits and supporting workpapers 
prepared for Commission proceedings that are premised on data or 
conclusions developed in a library reference shall provide the location 
of that information within the library reference with sufficient 
specificity to permit ready reference, such as the page and line, or the 
file and the worksheet or spreadsheet page or cell. Where relevant and 
material matter offered in evidence is embraced in a document containing 
other matter not material or relevant or not intended to be put in 
evidence, the participant offering the same shall plainly designate the 
matter offered excluding the immaterial or irrelevant parts. If other 
matter in such document is in such bulk or extent as would unnecessarily 
encumber the record, it may be marked for identification, and, if 
properly authenticated, the relevant and material parts may be read into 
the record, or, if the Commission or presiding officer so directs, a 
true copy of such matter in proper form shall be received in evidence as 
an exhibit. Copies of documents shall be delivered by the participant 
offering the same to the other participants or their attorneys appearing 
at the hearing, who shall be afforded an opportunity to examine the 
entire document and to offer in evidence in like manner other material 
and relevant portions thereof.
    (2) Library references. (i) The term ``library reference'' is a 
generic term or label that participants and others may use to identify 
or designate certain documents or things (``material'') filed with the 
Commission's docket section. To the extent possible, material filed as a 
library reference shall be identified and referred to by participants in 
terms of the following categories: Category 1--Reporting Systems 
Material (consisting of library references relating to the Service's 
statistical cost and revenue reporting systems, and their primary 
outputs); Category 2--Witness Foundational Material (consisting of 
material relating to the testimony of

[[Page 373]]

specific witnesses, primarily that which is essential to the 
establishment of a proper foundation for receiving into evidence the 
results of studies and analyses); Category 3--Reference Material 
(consisting of previously published material provided for the 
convenience of the reader, such as books, chapters or other portions of 
books, articles, reports, manuals, handbooks, guides, and contracts; 
Category 4--Material Provided in Response to Discovery (consisting of 
material provided in response to discovery requests); Category 5--
Disassociated Material (consisting of material filed at the request of 
another, from which the filing party wishes to be disassociated, is not 
vouching for or sponsoring the material provided); Category 6--All Other 
Material (consisting of library references not fitting any of the other 
categories).
    (ii) The practice of filing a library reference is authorized 
primarily as a convenience to filing participants and the Commission 
under certain circumstances. These include when the physical 
characteristics of the material, such as number of pages, bulk, or 
format, are reasonably likely to render compliance with the service 
requirements unduly burdensome; and one of the following considerations 
apply:
    (A) Interest in the material or things so labeled is likely to be so 
limited that service on the entire list would be unreasonably 
burdensome, and the participant agrees to serve the material on 
individual participants upon request within three days of a request, or 
to provide, within the same period, an explanation of why the material 
cannot be provided within three days, and to undertake reasonable 
efforts to promptly provide the material; or
    (B) The participant satisfactorily demonstrates that designation of 
material as a library reference is appropriate because the material 
constitutes a secondary source. A secondary source is one that provides 
background for a position or matter referred to elsewhere in a 
participant's case or filing, but does not constitute essential support 
and is unlikely to be a material factor in a decision on the merits of 
issues in the proceeding; or
    (C) Reference to, identification of, or use of the material would be 
facilitated if it is filed as a library reference; or
    (D) The material is filed in compliance with a discovery request for 
production of documents or things.
    (iii) Other circumstances. If a participant considers it appropriate 
to file material as a library reference because its physical 
characteristics render service unduly burdensome, but cannot satisfy the 
terms set out in paragraphs (b)(2)(ii)(A) through (D) of this section, 
the material may be filed (by means of a notice) subject to the 
following conditions:
    (A) Inclusion in the accompanying notice of a detailed explanation 
of the reason for filing the material under this provision;
    (B) Satisfaction of all other applicable requirements relating to 
library references; and
    (C) The Commission's right to refuse acceptance of the material in 
its docket room and its right to take other action to ensure 
participants' ability to obtain access to the material.
    (iv) Filing procedure. Participants filing material as a library 
reference shall file contemporaneous written notice of this action in 
conformance with Sec. Sec. 3001.9 through 3001.12. The notice shall:
    (A) Set forth the reason(s) why the material is being designated as 
a library reference, with specific reference to paragraphs (b)(2)(ii) 
and (iii) of this section;
    (B) Identify the category into which the material falls and describe 
in detail what the material consists of or represents, noting matters 
such as the presence of survey results;
    (C) Explain in detail how the material relates to the participant's 
case or to issues in the proceeding;
    (D) Identify authors or others materially contributing to 
substantive aspects of the preparation or development of the library 
reference;
    (E) Identify the documents (such as testimony, exhibits, and an 
interrogatory) or request to which the library reference relates, to the 
extent practicable;
    (F) Identify other library references or testimony relied upon or 
referred to

[[Page 374]]

in the designated material, to the extent practicable;
    (G) Indicate whether the library reference is an update or revision 
to another library reference and, if it is, clearly identify the 
predecessor material.
    (H) To the extent feasible, identify portions expected to be entered 
into the record and the expected sponsor (if the participant filing a 
library reference anticipates seeking, on its own behalf, to enter all 
or part of the material contained therein into the evidentiary record).
    (v) Labeling. Material filed as a library reference shall be labeled 
in a manner consistent with standard Commission notation and any other 
conditions the presiding officer or Commission establishes.
    (vi) Optional preface or summary. Inclusion of a preface or summary 
in a library reference addressing the matters set out in paragraphs 
(b)(2)(iv)(A) through (H) of this section is encouraged but optional.
    (vii) Electronic version. Material filed as a library reference 
shall also be made available in an electronic version, absent a showing 
of why an electronic version cannot be supplied or should not be 
required to be supplied. Participants are encouraged to include in the 
electronic version the information and disclosures required to be 
included in the accompanying notice.
    (viii) Number of copies. Except for good cause shown, two hard 
copies of each library reference shall be filed.
    (ix) Special requests and motions seeking service. In situations 
other than that covered in paragraph (b)(2)(ii)(A) of this section, 
special requests for service of material contained in a library 
reference may be made by the participant that filed the interrogatory or 
inquiry that generated a response in the form of a library reference. 
Service shall be made within a reasonable time. Others seeking service 
of the material contained in a library reference shall file a detailed 
motion setting forth the reasons why service is necessary or 
appropriate.
    (x) Waiver. Upon the filing of a motion showing good cause, the 
Commission may waive one or more of the provisions relating to library 
references. Motions seeking waiver may request expedited consideration 
and may seek waiver for categories of library references.
    (xi) Status of library references. Designation of material as a 
library reference and acceptance in the Commission's docket section do 
not confer evidentiary status. The evidentiary status of the material is 
governed by this section.
    (c) Commission's files. Except as otherwise provided in Sec. 
3001.31(e), in case any matter contained in a report or other document 
on file with the Commission is offered in evidence, such report or other 
document need not be produced or marked for identification, but may be 
offered in evidence by specifying the report, document, or other file 
containing the matter so offered.
    (d) Public document items. Whenever there is offered in evidence (in 
whole or in part) a public document, such as an official report, 
decision, opinion or published scientific or economic statistical data 
issued by any of the Executive Departments (or their subdivisions), 
legislative agencies or committees, or administrative agencies of the 
Federal Government (including Government-owned corporations) and such 
document (or part thereof) has been shown by the offeror thereof to be 
reasonably available to the public, such document need not be produced 
or physically marked for identification, but may be offered in evidence 
as a public document item by clearly identifying the document and the 
relevant parts thereof.
    (e) Designation of evidence from other Commission dockets. 
Participants may request that evidence received in other Commission 
proceedings be entered into the record of the current proceeding. These 
requests shall be made by motion, shall explain the purpose of the 
designation, and shall identify material by page and line or paragraph 
number. Absent extraordinary justification, these requests must be made 
at least 28 days before the date for filing the participant's direct 
case. Oppositions to motions for designations and/or requests for 
counter-designations

[[Page 375]]

shall be filed within 14 days. Oppositions to requests for counter-
designations are due within seven days. At the time requests for 
designations and counter-designations are made, the moving participant 
must submit two copies of the identified material to the Secretary of 
the Commission.
    (f) Form of prepared testimony and exhibits. Unless the presiding 
officer otherwise directs, the direct testimony of witnesses shall be 
reduced to writing and offered either as such or as an exhibit. All 
prepared testimony and exhibits of a documentary character shall, so far 
as practicable, conform to the requirements of Sec. 3001.10(a) and (b).
    (g) Copies to participants. Except as otherwise provided in these 
rules, copies of prepared testimony and exhibits shall be furnished to 
the presiding officer and to the participants or counsel, unless the 
presiding officer otherwise directs. In addition, unless otherwise 
directed by the presiding officer, eight copies of all prepared 
testimony and exhibits shall be furnished for the use of the Commission.
    (h) Reception and ruling. The presiding officer shall rule on the 
admissibility of evidence and otherwise control the reception of 
evidence so as to confine it to the issues in the proceeding.
    (i) Offers of proof. Any offer of proof made in connection with any 
ruling of the presiding officer rejecting or excluding proffered oral 
testimony shall consist of a statement of the substance of the evidence 
which counsel contends would be adduced by such testimony; and if the 
excluded evidence consists of evidence in documentary or written form, 
or of reference to documents or records, a copy of such evidence shall 
be marked for identification and shall constitute the offer of proof.
    (j) Official notice of facts. Official notice may be taken of such 
matters as might be judicially noticed by the courts of the United 
States or of any other matter peculiarly within the general knowledge of 
the Commission as an expert body: Provided, That any participant shall, 
on timely request, be afforded an opportunity to show the contrary.
    (k) Introduction and reliance upon studies and analyses--(1) 
General. In the case of all studies and analyses offered in evidence in 
hearing proceedings or relied upon as support for other evidence, other 
than the kinds described in paragraphs (k) (2) and (3) of this section, 
there shall be a clear statement of the study plan, all relevant 
assumptions and a description of the techniques of data collection, 
estimation and/or testing. In addition, there shall be a clear statement 
of the facts and judgments upon which conclusions are based, together 
with an indication of the alternative courses of action considered. 
Tabulations of input data shall be made available upon request at the 
offices of the Commission.
    (2) Statistical studies. All statistical studies offered in evidence 
in hearing proceedings or relied upon as support for other evidence 
shall include a comprehensive description of the assumptions made, the 
study plan utilized and the procedures undertaken. Where a computer 
analysis is employed to obtain the result of a statistical study, all of 
the submissions required by Sec. 3001.31(k)(3) shall be furnished, upon 
request. In addition, for each of the following types of statistical 
studies, the indicated information should be furnished:
    (i) Market research. (a) The following data and information shall be 
provided: (1) A clear and detailed description of the sample, 
observational, and data preparation designs, including definitions of 
the target population, sampling frame, units of analysis, and survey 
variables;
    (2) An explanation of methodology for the production and analysis of 
the major survey estimates and associated sampling errors;
    (3) A presentation of response, coverage and editing rates, and any 
other potential sources of error associated with the survey's quality 
assurance procedures;
    (4) A discussion of data comparability over time and with other data 
sources;
    (5) An assessment of the effects of editing and imputation;
    (6) Identification of applicable statistical models, when model-
based procedures are employed; and
    (7) An explanation of all statistical tests performed and an 
appropriate set

[[Page 376]]

of summary statistics summarizing the results of each test.
    (ii) Other sample surveys. (a) A clear description of the survey 
design, including the definition of the universe under study, the 
sampling frame and units, and the validity and confidence limits than 
can be placed on major estimates; and
    (b) An explanation of the method of selecting the sample and the 
characteristics measured or counted.
    (iii) Experimental analyses. (a) A complete description of the 
experimental design, including a specification of the controlled 
conditions and how the controls were realized;
    (b) A complete description of the methods of making observations and 
the adjustments, if any, to observed data.
    (iv) Econometric Studies. (a) A presentation of the economic theory 
underlying the study;
    (b) A complete description of the econometric model(s) and the 
reasons for each major assumption and specification;
    (c) The definition of the variables selected and the justification 
for their selection;
    (d) For any alternative model whose computed econometric results 
influenced the choice of the preferred model, a statement of the reasons 
for rejecting that alternative, an identification of any differences 
between that alternative and the preferred model with respect to 
variable definitions, equation forms, data, or estimation methods, and, 
upon request, the computed econometric results for that alternative;
    (e) A reference to a detailed description in a text, manual, or 
technical journal for every econometric technique used in the estimation 
process and the reasons for selecting the technique, or, in the 
alternative, a description and analysis of the technique that is 
sufficient for a technical evaluation;
    (f) Summary descriptions and source citations for all input data 
and, upon request, a complete listing of the data. Complete descriptions 
of any alterations or transformations made to the data as received from 
the original sources, and the reasons for making the alterations;
    (g) A complete report of the econometric results including, where 
applicable:
    (1) coefficient estimates
    (2) standard errors and t-values,
    (3) goodness-of-fit statistics,
    (4) other appropriate test statistics,
    (5) the variance/covariance matrix of the estimates,
    (6) computed residuals for results computed from samples composed of 
fewer than 250 observations, and, upon request, other computed 
residuals;
    (h) Descriptions of all statistical tests of hypotheses and the 
results of such tests;
    (v) All other studies involving statistical methodology. (a) The 
formula used for statistical estimates;
    (b) The standard errors of each component estimated;
    (c) Test statistics and the description of statistical tests and all 
related computations, and final results; and
    (d) Summary descriptions of input data, and upon request the actual 
input data shall be made available at the offices of the Commission.
    (3) Computer analyses. (i) In the case of computer studies or 
analyses which are being offered in evidence, or relied upon as support 
for other evidence, a foundation for the reception of such materials 
must be laid by furnishing a general description of the program that 
includes the objectives of the program, the processing tasks performed, 
the methods and procedures employed, and a listing of the input and 
output data and source codes (or a showing pursuant to paragraph 
(k)(3)(iii) of this section as to why such codes cannot be so furnished) 
and such description shall be furnished in all cases. For the purpose of 
completing such foundation, the following additional items shall be 
deemed presumptively necessary and shall be furnished upon request of a 
participant, the Commission, or the presiding officer, unless the 
presumption is overcome by an affirmative showing.
    (a) For all input data, designations of all sources of such data, 
and explanations of any modifications to such data made for use in the 
program;
    (b) Definitions of all input and output variables or sets of 
variables;

[[Page 377]]

    (c) A description of input and output data file organization;
    (d) A hard copy of all data bases;
    (e) For all source codes, documentation sufficiently comprehensive 
and detailed to satisfy generally accepted software documentation 
standards appropriate to the type of program and its intended use in the 
proceeding;
    (f) The source code in hardcopy form;
    (g) All pertinent operating system and programming language manuals; 
and
    (h) If the requested program is user interactive, a representative 
sample run, together with any explanation necessary to illustrate the 
response sequence.
    (i) An expert on the design and operation of the program shall be 
provided at a technical conference to respond to any oral or written 
questions concerning information that is reasonably necessary to enable 
independent replication of the program output. Machine-readable data 
files and program files shall be provided in the form of a compact disk 
or other media or method approved in advance by the Administrative 
Office of the Postal Regulatory Commission. Any machine-readable data 
file or program file so provided must be identified and described in 
accompanying hardcopy documentation. In addition, files in text format 
must be accompanied by hard-copy instructions for printing them. Files 
in machine code must be accompanied by hardcopy instructions for 
executing them.
    (j) Computer simulation models offered in evidence or relied upon as 
support for other evidence, shall be bound by all applicable provisions 
of paragraph (k)(3) of this section and the separate requirements of 
paragraph (k)(2) of this section, to the extent that portions of the 
simulation model utilize or rely upon such studies. Information that 
compares the simulation model output results to the actual phenomena 
being modelled, using data other than those from which the model was 
developed, shall be separately identified and submitted as evidence 
supporting the test and validation of the simulation model. Separate 
statements concerning the model limitations, including limiting model 
design assumptions and range of data input utilized in model design, 
shall be provided. Where test and validation of the entire simulation 
model are not possible, test and validation information shall be 
provided for disaggregate portions of the model. If disaggregate testing 
and validation are not possible, separate statements to that effect and 
statements regarding operational experts' review of model validity shall 
be provided.
    (ii) Upon timely and otherwise proper request of a participant, or 
sua sponte, the Commission or the Presiding Officer may rule that 
matters other than those listed in paragraphs (k)(3)(i) (a) through (h) 
of this section are necessary to establish the foundation for reception 
of the evidence concerned and must be furnished.
    (iii) When the requestor is other than the Commission or the 
Presiding Officer, the cost of producing the material required in 
paragraph (k)(3)(i) (d), (f), and (g)of this section, shall be borne by 
the requesting party unless otherwise ordered, for good cause shown by 
the requestor. When the Commission or the Presiding Officer is the 
requestor, it may assume or equitably allocate such costs for good cause 
shown by the requestee.
    (iv) If the recipient of a request for materials pursuant to this 
paragraph (k)(3) of this section asserts that compliance with the 
request would conflict with patent, copyright, trade secret or contract 
rights applicable to the requested material, the recipient shall 
immediately notify the requestor and the Presiding Officer. If valid, 
the Presiding Officer shall devise means of accommodating such rights. 
Such means may include protective orders, including access under 
protective conditions to the computer facilities of the recipient of a 
request, making material available for inspection, compensation, or 
other procedures, according to the nature of the right affected by 
compliance with this paragraph (k)(3) of this section. If the Presiding 
Officer determines that compensation is necessary to accommodate the 
affected right, the cost of compensation shall be borne in the same 
manner that paragraph (k)(3)(iii) of this section prescribes for bearing 
the costs referenced there. If

[[Page 378]]

such right cannot be accommodated by reasonable compensation, or by 
protective orders or other procedures, and, as a result, materials 
required by this paragraph (k)(3) of this section cannot be provided, 
the Presiding Officer shall determine, in his/her discretion, whether 
evidence that relies upon the materials not provided shall be admissible 
or afforded limited weight.
    (4) Expedition. The offeror shall expedite responses to requests 
made pursuant to this section. Responses shall be served on the 
requesting party, and notice thereof filed with the Secretary in 
accordance with the provisions of Sec. 3001.12, no later than 14 days 
after a request is made.

[36 FR 396, Jan. 12, 1971, as amended at 45 FR 65580, Oct. 3, 1980; 47 
FR 12796, Mar. 25, 1982; 50 FR 43392, Oct. 25, 1985; 51 FR 8827, Mar. 
14, 1986; 51 FR 14992, Apr. 22, 1986; 54 FR 35494, Aug. 28, 1989; 58 FR 
38976, July 21, 1993; 62 FR 45729, Aug. 29, 1997; 64 FR 67490, Dec. 2, 
1999; 65 FR 6543, Feb. 10, 2000; 67 FR 67563, Nov. 6, 2002]



Sec. 3001.31a  In camera orders.

    (a) Definition. Except as hereinafter provided, documents and 
testimony made subject to in camera orders are not made a part of the 
public record, but are kept confidential, and only authorized parties, 
their counsel, authorized Commission personnel, and court personnel 
concerned with judicial review shall have access thereto. The right of 
the presiding officer, the Commission, and reviewing courts to disclose 
in camera data to the extent necessary for the proper disposition of the 
proceeding is specifically reserved.
    (b) In camera treatment of documents and testimony. Presiding 
officers shall have authority, but only in those unusual and exceptional 
circumstances when good cause is found on the record, to order documents 
or oral testimony offered in evidence whether admitted or rejected, to 
be placed in camera. The order shall specify the date on which in camera 
treatment expires and shall include: (1) A description of the documents 
and testimony; (2) a full statement of the reasons for granting in 
camera treatment; and (3) a full statement of the reasons for the date 
on which in camera treatment expires. Any party desiring, for the 
preparation and presentation of the case, to disclose in camera 
documents or testimony to experts, consultants, prospective witnesses, 
or witnesses, shall make application to the presiding officer setting 
forth the justification therefor. The presiding officer, in granting 
such application for good cause found, shall enter an order protecting 
the rights of the affected parties and preventing unnecessary disclosure 
of information. In camera documents and the transcript of testimony 
subject to an in camera order shall be segregated from the public record 
and filed in a sealed envelope, bearing the title and docket number of 
the proceeding, the notation ``In Camera Record under Sec. 3001.31a,'' 
and the date on which in camera treatment expires.
    (c) Release of in camera information. In camera documents and 
testimony shall constitute a part of the confidential records of the 
Commission and shall be subject to the provisions of Sec. 3001.42 of 
this chapter. However, the Commission, on its own motion or pursuant to 
a request, may make in camera documents and testimony available for 
inspection, copying, or use by any other governmental agency. The 
Commission shall, in such circumstances, give reasonable notice of the 
impending disclosure to the affected party. However, such notice may be 
waived in extraordinary circumstances for good cause.
    (d) Briefing of in camera information. In the submittal of proposed 
findings, briefs, or other papers, counsel for all parties shall make a 
good faith attempt to refrain from disclosing the specific details of in 
camera documents and testimony. This shall not preclude references in 
such proposed findings, briefs, or other papers to such documents or 
testimony including generalized statements based on their contents. To 
the extent that counsel consider it necessary to include specific 
details of in camera data in their presentations, such data shall be 
incorporated in separate proposed findings, briefs, or other papers 
marked ``confidential,'' which shall be placed in camera and become a 
part of the in camera record.

[44 FR 33880, June 13, 1979, as amended at 48 FR 15901, Apr. 13, 1983; 
58 FR 38976, July 21, 1993]

[[Page 379]]



Sec. 3001.32  Appeals from rulings of the presiding officer.

    (a) General policy. The Commission will not review a ruling of the 
presiding officer prior to its consideration of the entire proceeding 
except in extraordinary circumstances. This section specifies the 
showing which participants must make in order to appeal interlocutory 
rulings.
    (b) Appeals certified by the presiding officer. (1) Before the 
issuance of an initial decision pursuant to Sec. 3001.39(a) or the 
certification of the record to the Commission pursuant to Sec. 
3001.38(a), rulings of the presiding officer may be appealed when the 
presiding officer certifies in writing that an interlocutory appeal is 
warranted. The presiding officer shall not certify an appeal unless the 
officer finds that (i) the ruling involves an important question of law 
or policy concerning which there is substantial ground for difference of 
opinion and (ii) an immediate appeal from the ruling will materially 
advance the ultimate termination of the proceeding or subsequent review 
will be an inadequate remedy.
    (2) A request for the presiding officer to certify an appeal shall 
be made within 5 days after the presiding officer's ruling has been 
issued. The request shall set forth with specificity the reasons that a 
participant believes that an appeal meets the criteria of paragraphs 
(b)(1) (i) and (ii) of this section. Such requests shall also state in 
detail the legal, policy, and factual arguments supporting the 
participant's position that the ruling should be modified. If the appeal 
is from a ruling rejecting or excluding evidence, such request shall 
include a statement of the substance of the evidence which the 
participant contends would be adduced by the excluded evidence and the 
conclusions intended to be derived therefrom.
    (3) The presiding officer may request responsive pleadings from 
other participants prior to ruling upon the request to certify an 
appeal.
    (c) Appeals not certified by the presiding officer. If the presiding 
officer declines to certify an appeal, a participant who has requested 
certification may apply to the Commission for review within 10 days. 
Unless the Commission directs otherwise, its review of the application 
will be based on the record and pleadings filed before the presiding 
officer pursuant to paragraph (b) of this section.
    (d) Action by the Commission. (1) The Commission may dismiss an 
appeal certified by the presiding officer if it determines that (i) the 
objection to the ruling should be deferred until the Commission's 
consideration of the entire proceeding or (ii) interlocutory review is 
otherwise not warranted or appropriate under the circumstances.
    (2) Where the presiding officer has declined to certify an appeal, 
the Commission will not allow an application for review unless it 
determines (i) that the presiding officer should have certified the 
matter, (ii) that extraordinary circumstances exist, and (iii) that 
prompt Commission decision is necessary to prevent grave detriment to 
the public interest.
    (3) The Commission may issue an order accepting an interlocutory 
appeal within 15 days after the presiding officer certifies the appeal 
or a participant files an application for review. If the Commission 
fails to issue such an order, leave to appeal from the presiding 
officer's interlocutory ruling shall be deemed to be denied. If the 
Commission issues an order accepting an appeal, it may rule upon the 
merits of the appeal in that order or at a later time.
    (e) Effect of appeals. Unless the presiding officer or the 
Commission so orders, the certification of an appeal or the filing of an 
application for review shall not stay the proceeding or the 
effectiveness of any ruling.
    (f) Review at conclusion of proceeding. If an interlocutory appeal 
is not allowed or requested, objection to the ruling may be raised on 
review of the presiding officer's initial decision, or, if the initial 
decision is omitted, at the conclusion of the proceeding.
    (g) Form, filing, and service of documents. Requests for 
certification, applications for review, and any responses shall be in 
writing and shall be in conformity with Sec. Sec. 3001.10 and 3001.11. 
They shall be filed and served pursuant to Sec. Sec. 3001.9 and 
3001.12.

[38 FR 4328, Feb. 13, 1973, as amended at 42 FR 8143, Feb. 9, 1977; 51 
FR 8827, Mar. 14, 1986]

[[Page 380]]



Sec. 3001.33  Depositions.

    (a) When permissible. The testimony of a witness may be taken by 
deposition upon authorization by the Commission or the presiding officer 
on application of any participant before the hearing is closed. An 
authorization to take the deposition of a witness will be issued only if 
(1) the person whose deposition is to be taken would be unavailable at 
the hearing, or (2) the deposition is deemed necessary to perpetuate the 
testimony of the witness, or (3) the taking of the deposition is 
necessary to prevent undue and excessive expense to a participant and 
will not result in undue delay or an undue burden to other participants.
    (b) Application. An application for authorization to take testimony 
by deposition shall be filed in duplicate with the Commission or the 
presiding officer and shall state (1) the name, identification, and post 
office address of the witness, (2) the subject matter of the testimony, 
(3) the time and place of taking the deposition, (4) the name, 
identification, and post office address of the officer before whom the 
deposition is to be taken, and (5) the reasons why the testimony of such 
witness should be taken by deposition.
    (c) Authorization. If the application so warrants, the Commission or 
the presiding officer will issue and serve or cause to be served on the 
participants within a reasonable time in advance of the time fixed for 
taking testimony, an authorization for the taking of such testimony by 
deposition. Such authorization shall name the witness, and the time, 
place, and officer before whom the deposition shall be taken, and shall 
specify the number of copies of the deposition to be submitted to the 
Commission. The authorization may include such terms and conditions as 
the Commission or the presiding officer deems fair and reasonable.
    (d) Qualifications of officer before whom taken. Such deposition may 
be taken before a presiding officer or other authorized representative 
of the Commission, or any officer, not being counsel or attorney for any 
participant or having an interest in the proceeding, authorized to 
administer oaths by the laws of the United States or of the place where 
the deposition is to be taken.
    (e) Oath and reduction to writing. The officer before whom the 
deposition is to be taken shall put the witness on oath or affirmation 
and shall personally, or by some one acting under his/her direction and 
in his/her presence, record the examination of the witness. The 
examination shall be transcribed in the form specified in Sec. 
3001.10(a), signed by the witness, and certified in the usual form by 
the officer. The original of the deposition, together with the number of 
copies required by the authorization to be made by such officer, shall 
be forwarded by the officer to the Secretary by personal delivery or 
registered mail. Upon receipt the Secretary shall hold the original for 
use in the hearing upon request by any participant and shall make copies 
available for public inspection.
    (f) Scope and conduct of examination. Unless otherwise directed in 
the authorization, the witness may be questioned regarding any matter 
which is relevant to the issues involved in the proceeding. Participants 
shall have the right of cross-examination and objection. In lieu of 
participation in the oral examination, participants may transmit written 
interrogatories to the officer who shall propound them to the witness.
    (g) Objections. The officer before whom the deposition is taken 
shall not have the power to rule upon procedural matters or the 
competency, materiality, or relevancy of questions. Procedural 
objections or objections to questions of evidence shall be stated 
briefly and recorded in the deposition without argument. Objections not 
stated before the officer shall be deemed waived.
    (h) When a part of the record. No portion of a deposition shall 
constitute a part of the record in the proceeding unless received in 
evidence by the presiding officer. If only a portion of the deposition 
is offered in evidence by a participant, any other participant may 
require him/her to introduce all of it which is relevant to the part 
introduced, and any participant may offer in evidence any other 
portions.
    (i) Fees. Witnesses whose depositions are taken and the officer 
taking the same shall be entitled to the same fees

[[Page 381]]

as are paid for like services in the District Courts of the United 
States to be paid directly by the participant or participants on whose 
application the deposition was taken.

[36 FR 396, Jan. 12, 1971, as amended at 58 FR 38976, July 21, 1993; 58 
FR 38976, July 21, 1993]



Sec. 3001.34  Briefs.

    (a) When filed. At the close of the taking of testimony in any 
proceeding, the Commission or the presiding officer shall fix the time 
for the filing and service of briefs, giving due regard to the timely 
issuance of a recommended decision or advisory opinion to the Postal 
Service within the contemplation of sections 3641(a) and 3661 of the 
Act. In addition, subject to such consideration, due regard shall be 
given to the nature of the proceeding, the complexity and importance of 
the issues involved, and the magnitude of the record. In cases subject 
to a limitation on the time available to the Commission for decision, 
the Commission shall generally direct that each participant shall file a 
single brief at the same time. In cases where, because of the nature of 
the issues and the record or the limited number of participants 
involved, the filing of initial and reply briefs, or the filing of 
initial, answering, and reply briefs, will not unduly delay the 
conclusion of the proceeding and will aid in the proper disposition of 
the proceeding, the participants may be directed to file more than one 
brief and at different times rather than a single brief at the same 
time. The presiding officer or the Commission may also order the filing 
of briefs during the course of the proceeding.
    (b) Contents. Each brief filed with the Commission shall be as 
concise as possible, within any page limitation specified by the 
Commission or the presiding officer, and shall include the following in 
the order indicated:
    (1) A subject index with page references, and a list of all cases 
and authorities relied upon, arranged alphabetically, with references to 
the pages where the citation appears;
    (2) A concise statement of the case from the viewpoint of the filing 
participant;
    (3) A clear, concise and definitive statement of the position of the 
filing participant as to the proposals of the Postal Service, the 
subject matter of the complaint, or recommended decision, advisory 
opinion, or public report to be issued;
    (4) A discussion of the evidence, reasons, and authorities relied 
upon with exact references to the record and the authorities; and
    (5) Proposed findings and conclusions with appropriate references to 
the record or the prior discussion of the evidence and authorities 
relied upon.
    (c) Incorporation by references. Briefs before the Commission or a 
presiding officer shall be completely self-contained and shall not 
incorporate by reference any portion of any other brief, pleading or 
document.
    (d) Excerpts from the record. Testimony and exhibits shall not be 
quoted or included in briefs except for short excerpts pertinent to the 
argument presented.
    (e) Filing and service. Briefs shall be filed in the form and manner 
and served as required by Sec. Sec. 3001.9 to 3001.12.

[36 FR 396, Jan. 12, 1971, as amended at 38 FR 4328, Feb. 13, 1973; 51 
FR 8827, Mar. 14, 1986]



Sec. 3001.35  Proposed findings and conclusions.

    The Commission or the presiding officer may direct the filing of 
proposed findings and conclusions with a brief statement of the 
supporting reasons for each proposed finding and conclusion.

[38 FR 4329, Feb. 13, 1973; 51 FR 8827, Mar. 14, 1986]



Sec. 3001.36  Oral argument before the presiding or other designated 
officer.

    In any case in which the presiding officer is to issue an initial or 
recommended decision, or another designated officer of the Commission is 
to issue a recommended decision, such officer may permit the 
presentation of oral argument when, in his/her opinion, time permits, 
and the nature of the proceedings, the complexity or importance of the 
issues of fact or law involved, and the public interest warrants hearing 
such argument. Such officer shall determine the time and place for oral 
argument. He may specify the issue or issues on which oral argument is 
to be presented, the order in

[[Page 382]]

which the presentations shall be made, and the amount of time allowed 
each participant. A request for oral argument before the issuance of an 
intermediate decision shall be made during the course of the hearing on 
the record.

[36 FR 396,Jan. 12, 1971, as amended at 58 FR 38976, July 21, 1993]



Sec. 3001.37  Oral argument before the Commission.

    (a) When ordered. In any proceeding before the Commission for 
decision, the Commission, upon the request of any participant or on its 
own initiative, may order oral argument when, in the Commission's 
discretion, time permits, and the nature of the proceedings, the 
complexity or importance of the issues of fact or law involved, and 
public interest warrants such argument.
    (b) How requested. Any participant in a proceeding before the 
Commission for decision may request oral argument before the Commission 
by filing a timely motion pursuant to Sec. 3001.21. In a proceeding 
before the Commission on exceptions to an intermediate decision, such 
motion shall be filed no later than the date for the filing of briefs on 
exceptions. Motions requesting oral argument may be included in briefs 
or briefs on exceptions or in a separate document.
    (c) Notice of oral argument. The Commission shall rule on requests 
for oral argument, and if argument is allowed, the Commission shall 
notify the participants of the time and place set for argument, the 
amount of time allowed each participant, and the issue or issues on 
which oral argument is to be heard. Unless otherwise ordered by the 
Commission, oral argument shall be limited to matters properly raised on 
the record and in the briefs before the Commission.
    (d) Use of documents at oral argument. Charts, graphs, maps, tables 
and other written material may be presented to the Commission at oral 
argument only if limited to facts in the record of the case being argued 
and if copies of such documents are filed with the Secretary and served 
on all parties at least 7 days in advance of the argument. Enlargements 
of such charts, graphs, maps and tables may be used at the argument 
provided copies are filed and served as required by this paragraph.



Sec. 3001.38  Omission of intermediate decisions.

    (a) Basis of omission. In any proceeding noticed pursuant to Sec. 
3001.17, the Commission, on the motion of any participant or on its own 
initiative, may direct the certification of the record to the Commission 
and omit any intermediate decision upon a finding on the record that due 
and timely execution of its functions imperatively and unavoidably so 
requires. In proceedings in which all participants concur in a request 
by any participant that any intermediate decision be omitted, the 
Commission shall direct the certification of the record to the 
Commission and forthwith render a final decision unless the Commission 
denies such request within 10 days next following its filing or referral 
by the presiding officer.
    (b) Requests for omission. Requests for omission of the intermediate 
decision in any proceeding shall be made by motion pursuant to Sec. 
3001.21 or made orally on the record before the presiding officer who 
shall promptly refer the same to the Commission. Such requests shall 
specify (1) the concurrence of other parties and (2) whether opportunity 
for filing briefs or presenting oral argument to the Commission is 
desired or waived. Failure of any party to object to such request shall 
constitute a waiver of any objections.



Sec. 3001.39  Intermediate decisions.

    (a) Initial decision by presiding officer. In any proceedings in 
which a Commissioner or hearing officer has presided at the reception of 
evidence, such presiding officer, as soon as practicable after the 
conclusion of the hearing and the filing of briefs, shall certify and 
file with the Secretary, a copy of the record of the hearing and his/her 
initial decision on the matters and issues presented for decision in 
such proceeding.
    (b) Tentative decision. Prior to the issuance of an initial decision 
by the presiding officer, the Commission, with notice to the 
participants or by order in specific cases or by general rule for a 
class of cases, may direct the certification of the record to the 
Commission

[[Page 383]]

for the purpose of the issuance of a tentative decision. In such cases, 
the Commission may issue a tentative decision or require that the 
presiding officer or any designated responsible officer of the 
Commission recommend a decision.
    (c) Contents. All intermediate decisions (initial, recommended or 
tentative) shall include (1) findings and conclusions, and the reasons 
or basis therefor, on all the material issues of fact, law, or 
discretion presented on the record, and (2) the appropriate recommended 
decision, advisory opinion or public report pursuant to the Act. An 
intermediate decision in a proceeding under section 3622 or 3623 of the 
Act shall include a statement specifically responsive to the criteria 
established under section 3622 or 3623 of the Act, as the case may be; 
and an intermediate decision in a proceeding under section 3661 of the 
Act shall include a determination of the question of whether or not the 
proposed change in the nature of postal service conforms to the policies 
established under the Act.
    (d) Service and Commission review. All intermediate decisions shall 
be part of the record, shall be served on the participants to the 
proceeding by the Secretary pursuant to Sec. 3001.12 and shall be 
subject to review by the Commission on its own initiative, or the filing 
of exceptions by the participants pursuant to Sec. 3001.40.
    (e) Unavailability of presiding officer. In any proceeding in which 
the intermediate decision is not omitted pursuant to Sec. 3001.38, if a 
presiding officer becomes unavailable to issue an intermediate decision 
on a timely basis, the Commission shall, by a notice served on the 
participants require the record to be certified to it and it shall 
either designate a qualified responsible officer of the Commission to 
issue a recommended decision or will itself issued a tentative decision, 
as the Commission may deem appropriate.
    (f) Effect of intermediate decision. Unless briefs on exceptions are 
filed to an intermediate decision pursuant to Sec. 3001.40 or unless 
the Commission issues an order to review an intermediate decision on its 
own initiative, the intermediate decision shall become the final action 
of the Commission after 30 days from the date of issuance thereof. If 
briefs on exceptions are timely filed or the Commission initiates review 
on its own motion, the intermediate decision is stayed until further 
order of the Commission.

[36 FR 396, Jan. 12, 1971, as amended at 58 FR 38976, July 21, 1993]



Sec. 3001.40  Exceptions to intermediate decisions.

    (a) Briefs on exceptions and opposing exceptions. Any participant in 
a proceeding may file exceptions to any intermediate decision by filing 
a brief on exceptions with the Commission within 30 days after the date 
of issuance of the intermediate decision or such other time as may be 
fixed by the Commission. Any participant to a proceeding may file a 
response to briefs on exceptions within 20 days after the time limited 
for the filing of briefs on exceptions or such other time as may be 
fixed by the Commission. No further response will be entertained unless 
the Commission, upon motion for good cause shown or on its own 
initiative, so orders.
    (b) Filing and contents. Briefs on exceptions and briefs opposing 
exceptions shall be filed in accordance with Sec. 3001.34. In briefs on 
exceptions, the discussion of evidence, reasons and authorities shall be 
specifically directed to the findings, conclusions and recommendations 
in the intermediate decision to which exception is taken. Briefs on 
exceptions should not include a discussion of evidence and authorities 
on matters and issues to which no exception to the intermediate decision 
is taken. Briefs on exceptions and briefs opposing exceptions need not 
contain a statement of the case to the extent that it was correctly 
stated in either the intermediate decision or the brief on exceptions of 
another participant to which reference is made.
    (c) Failure to except results in waiver. Any participant who fails 
to except or object to any part of an intermediate decision in its brief 
on exceptions may not thereafter raise such exceptions or

[[Page 384]]

objections which shall be deemed to have been waived.

(84 Stat. 759-761, 764; 39 U.S.C. 3603, 3622-3624, 3661, 3662)

[36 FR 396, Jan. 12, 1971, as amended at 38 FR 4329, Feb. 13, 1973]



Sec. 3001.41  Rulemaking proceedings.

    (a) General notice. Before the adoption of any rule of general 
applicability, or the commencement of any hearing on any such proposed 
rulemaking, the Commission will cause general notice to be given by 
publication in the Federal Register, such notice to be published therein 
not less than 30 days prior to the date fixed for the consideration of 
the adoption of a proposed rule or rules or for the commencement of the 
hearing, if any, on the proposed rulemaking, except where a shorter 
period is reasonable and good cause exists therefor. However, where the 
Commission, for good cause, finds it impracticable, unnecessary, or 
contrary to the public interest to give such notice, it may proceed with 
the adoption of rules without notice by incorporating therein a finding 
to such effect and a concise statement of the reasons therefor. Advance 
notice shall not be required for rules subject to 5 U.S.C. 553(d).
    (b) Contents of notice. The notice shall include (1) a statement of 
the time, place and nature of the public rulemaking proceedings; (2) 
reference to the legal authority under which the rule is proposed; and 
(3) either the terms or substance of the proposed rule or a description 
of the subjects and issues involved.
    (c) Participation. After notice given as provided in paragraph (a) 
of this section, the Commission shall give interested persons an 
opportunity to participate in the rulemaking through submission of 
written data, views, or arguments with or without opportunity for oral 
presentation.
    (d) General statement as to basis and purpose. After consideration 
of the relevant matter presented, the Commission shall incorporate in 
the rules adopted a concise general statement of their basis and 
purpose.
    (e) Exceptions. Except when notice or hearing is required by 
statute, the Commission may issue at any time rules of organization, 
procedure or practice, or interpretive rules, or statements of policy, 
without notice or public procedure, and this section is not to be 
construed as applicable to the extent that there may be involved any 
military, naval or foreign affairs function of the United States, or any 
matter relating to the Commission's management or personnel, or to U.S. 
property, loans, grants, benefits, or contracts.

(84 Stat. 759-761, 764; 39 U.S.C. 3603, 3622-3624, 3661, 3662)

[36 FR 396, Jan. 12, 1971, as amended at 38 FR 4329, Feb. 13, 1973]



Sec. 3001.42  [Reserved]



Sec. 3001.43  Public attendance at Commission meetings.

    (a) Open Commission meetings. (1) Commissioners shall not jointly 
conduct or dispose of agency business other than in accordance with this 
section. Except as provided in paragraph (c) of this section, every 
portion of every meeting of the Commission shall be open to public 
observation. Access to documents being considered at Commission meetings 
shall be obtained in the manner set forth in Sec. 3001.42.
    (2) Members of the public may not participate in open meetings. They 
may record the proceedings, provided they use battery-operated recording 
devices at their seats. Cameras may be used by observers to photograph 
proceedings, provided it is done from their seats and no flash or 
lighting equipment is used. Persons may electronically record or 
photograph a meeting, as long as such activity does not impede or 
disturb the members of the Commission in the performance of their 
duties, or members of the public attempting to observe, or to record or 
photograph, the Commission meeting.
    (b) Physical arrangements for open meetings. The Secretary shall be 
responsible for seeing that ample space, sufficient visibility, and 
adequate acoustics are provided for public observation of the Commission 
meetings.
    (c) Closed Commission meetings. Except in a case where the 
Commission finds that the public interest requires otherwise, the second 
sentence of paragraph (a) shall not apply to any portion of a

[[Page 385]]

Commission meeting, and the requirements of paragraphs (d) and (e) shall 
not apply to any information pertaining to such meeting otherwise 
required by this section to be disclosed to the public, where the 
Commission properly determines that such portion or portions of its 
meetings or the disclosure of such information is likely to
    (1) Disclose matters that are (i) specifically authorized under 
criteria established by an Executive order to be kept secret in the 
interests of national defense or foreign policy and (ii) in fact 
properly classified pursuant to such Executive order;
    (2) Relate solely to the internal personnel rules and practices of 
the Commission;
    (3) Disclose matters specifically exempted from disclosure by 
statute (other than section 552 of title 5), provided that such statute 
(i) requires that the matter be withheld from the public in such a 
manner as to leave no discretion on the issue, or (ii) establishes 
particular criteria for withholding or refers to particular types of 
matters to be withheld;
    (4) Disclose trade secrets and commercial or financial information 
obtained from a person and privileged or confidential;
    (5) Involve accusing any person of a crime, or formally censuring 
any person;
    (6) Disclose information of a personal nature where disclosure would 
constitute a clearly unwarranted invasion of personal privacy;
    (7) Disclose investigatory records compiled for law enforcement 
purposes, or information which if written would be contained in such 
records, but only to the extent that the production of such records or 
information would (i) interfere with enforcement proceedings, (ii) 
deprive a person of a right to a fair trial or an impartial 
adjudication, (iii) constitute an unwarranted invasion of personal 
privacy, (iv) disclose the identity of a confidential source and, in the 
case of a record compiled by a criminal law enforcement authority in the 
course of a criminal investigation, or by an agency conducting a lawful 
national security intelligence investigation, confidential information 
furnished only by the confidential source, (v) disclose investigative 
techniques and procedures, or (vi) endanger the life or physical safety 
of law enforcement personnel;
    (8) Disclose information contained in or related to examination, 
operating, or condition reports prepared by, on behalf of, or for the 
use of an agency responsible for the regulation or supervision of 
financial institutions;
    (9) Disclose information the premature disclosure of which would be 
likely to significantly frustrate implementation of a proposed 
Commission action, except that paragraph (c)(9) shall not apply in any 
instance where the Commission has already disclosed to the public the 
content or nature of its proposed action, or where the Commission is 
required by law to make such disclosure on its own initiative prior to 
taking final Commission action on such proposal; or
    (10) Specifically concern the Commission's issuance of a subpoena or 
the Commission's participation in a civil action or proceeding, an 
action in a foreign court or international tribunal, or an arbitration, 
or the initiation, conduct or disposition by the Commission of a 
particular case of formal Commission adjudication pursuant to the 
procedures in section 554 of title 5 or otherwise involving a 
determination on the record after opportunity for a hearing as provided 
by section 3624(a) of title 39.
    (d) Procedures for closing meetings. (1) Action under paragraph (c) 
of this section shall be taken only when three Commissioners vote to 
take such action. A separate vote of the Commissioners shall be taken 
with respect to each agency meeting a portion or portions of which are 
proposed to be closed to the public pursuant to paragraph (c) of this 
section, or with respect to any information which is proposed to be 
withheld under paragraph (c) of this section. A single vote may be taken 
with respect to a series of meetings, a portion or portions of which are 
proposed to be closed to the public, or with respect to any information 
concerning such series of meetings, so long as each meeting in such 
series involves the same particular matters and is scheduled to be held 
no more than 30 days after the initial meeting in such

[[Page 386]]

series. The vote of each Commissioner participating in such vote shall 
be recorded and no proxies shall be allowed.
    (2) Whenever any person whose interests may be directly affected by 
a portion of a meeting requests that the Commission close such portion 
to the public for any of the reasons referred to in paragraph (c) (5), 
(6), or (7) of this section, the Commission upon request of any one of 
its members, shall vote by recorded vote whether to close such meeting.
    (3) Within 1 day of any vote taken pursuant to paragraph (d)(1) or 
(2) of this section, the Commission shall make publicly available a 
written copy of such vote reflecting the vote of each member on the 
question. If a portion of a meeting is to be closed to the public, the 
Commission shall, within 1 day of the vote taken pursuant to paragraph 
(d)(1) or (2) of this section, make publicly available a full written 
explanation of its action closing the portion together with a list of 
all persons expected to attend the meeting and their affiliation.
    (4) Any person may protest a Commission decision to hold a closed 
meeting under paragraph (d)(1) or (2) of this section by filing a motion 
to open the meeting. Such motion shall be addressed to the Commission 
and shall set forth with particularity the statutory or other authority 
relied upon, the reasons for which the movant believes the meeting 
should not be closed, and the reasons for which the movant believes that 
the public interest requires the meeting to be open. Such motion shall 
be filed with the Secretary no later than 24 hours prior to the time for 
which the closed meeting is scheduled.
    (5) The Commission has determined that a majority of its meetings 
may be closed to the public pursuant to paragraph (c)(4), (8) or (10) of 
this section or any combination thereof. Therefore, pursuant to 5 U.S.C. 
552b(d)(4), Commission meetings shall be closed to the public pursuant 
to paragraph (c)(4), (8) or (10) of this section or any combination 
thereof when three Commissioners vote by recorded vote at the beginning 
of such meeting, or portion thereof, to close the exempt portion or 
portions of the meeting, and a copy of such vote, reflecting the vote of 
each Commissioner on the question, is made available to the public. The 
provisions of paragraphs (d) (1), (2), (3), and (e) of this section 
shall not apply to any portion of a meeting to which paragraph (d)(5) of 
this section applies: Provided, that the Commission shall, except to the 
extent that such information is exempt from disclosure under the 
provisions of paragraph (c) of this section, provide the public with 
public announcement of the time, place, and subject matter of the 
meeting and of each portion thereof at the earliest practicable time.
    (e) Scheduling and public announcement. (1) In the case of each 
meeting, the Commission shall make public announcement, at least 1 week 
before the meeting, of the time, place, and subject matter of the 
meeting, whether it is to be open or closed to the public, and the name 
and phone number of the official designated by the Commission to respond 
to requests for information about the meeting. Such announcement shall 
be made unless three Commissioners determine by a recorded vote that 
Commission business requires that such meeting be called at an earlier 
date, in which case the Commission shall make public announcement of the 
time, place, and subject matter of such meeting, and whether open or 
closed to the public, at the earliest practicable time.
    (2) The time or place of a meeting may be changed following the 
public announcement required by paragraph (e)(1) of this section only if 
the Commission publicly announces such change at the earliest 
practicable time. The subject matter of a meeting, or the determination 
of the Commission to open or close a meeting, or a portion of a meeting, 
to the public, may be changed following the public announcement required 
by paragraph (e)(1) only if (i) three Commissioners determine by a 
recorded vote that Commission business so requires and that no earlier 
announcement of the change was possible, and (ii) the Commission 
publicly announces such change and the vote of each Commissioner upon 
such change at the earliest practicable time.
    (3) Immediately following each public announcement required by 
paragraph

[[Page 387]]

(e) of this section, notice of the time, place, and subject matter of a 
meeting, whether the meeting is open or closed, any change in one of the 
preceding, and the name and phone number of the official designated by 
the Commission to respond to requests for information about the meeting, 
shall also be submitted for publication in the Federal Register.
    (4) The public announcement required by this section may consist of 
the Secretary:
    (i) Publicly posting a copy of the document in the office of the 
Secretary of the Commission at 901 New York Avenue NW., Suite 200, 
Washington, DC 20268-0001;
    (ii) Mailing a copy to all persons whose names are on a mailing list 
maintained for this purpose;
    (iii) Operating a recorded telephone announcement, giving the 
announcement; and
    (iv) Any other means which the Secretary believes will serve to 
further inform any persons who might be interested.
    (f) Certification of closed meetings; transcripts, electronic 
recordings, and minutes. (1) Before any meeting to be closed pursuant to 
paragraphs (c) (1) through (10) of this section, the General Counsel of 
the Commission, or in the General Counsel's absence, the senior advisory 
staff attorney available, should publicly certify that, in his/her 
opinion, the meeting may be closed to the public and shall state each 
relevant exemptive provision. A copy of such certification, together 
with a statement from the presiding officer of the meeting setting forth 
the time and place of the meeting, and the persons present, shall be 
retained by the Commission. The Commission shall maintain a complete 
transcript or electronic recording adequate to record fully the 
proceedings of each meeting, or portion of a meeting, closed to the 
public, except that in the case of a meeting, or portion of a meeting, 
closed to the public pursuant to paragraph (c)(8) or (10) of this 
section, the Commission shall maintain either such a transcript or 
recording, or a set of minutes. Such minutes shall fully and clearly 
describe all matters discussed and shall provide a full and accurate 
summary of any actions taken, and the reasons therefor, including a 
description of the views expressed on any item and the record of any 
rollcall vote (reflecting the vote of each Commissioner on the 
question). All documents considered in connection with any action shall 
be identified in such minutes.
    (2) The Commission shall make promptly available to the public, in a 
place easily accessible to the public, the transcript, electronic 
recording, or minutes (as required by paragraph (f)(1) of this section) 
of the discussion of any item on the agenda, or of any item of the 
testimony of any witness received at the meeting, except for such item 
or items of such discussion or testimony as the Commission determines by 
a majority vote of all its members (i) contains information which may be 
withheld under paragraph (c) of this section, and (ii) is not required 
by the public interest to be made available. Copies of such transcript, 
or minutes, or a transcription of such recording disclosing the identity 
of each speaker, shall be furnished to any person at the actual cost of 
duplication or transcription. The Commission shall maintain a complete 
verbatim copy of the transcript, a complete copy of the minutes, or a 
complete electronic recording of each meeting, or portion of a meeting, 
closed to the public, for a period of at least 2 years after such 
meeting, or until 1 year after the conclusion of any Commission 
proceeding with respect to which the meeting or portion was held, 
whichever occurs later.
    (g) Requests to open or close Commission meetings. (1)(i) Any person 
may request in writing that the Commission open to public observation 
discussion of a matter which it has earlier decided to close.
    (ii) Such requests shall be captioned ``Request to open ---------- 
(date) Commission meeting on item ---------- (number or description).'' 
The request shall state the reason(s) therefor, the name and address of 
the person making the request and, if desired, a telephone number.
    (iii) Ten copies of such requests must be received by the office of 
the Secretary no later than three working days after the issuance of the 
notice of meeting to which the request pertains.

[[Page 388]]

Requests received after that time will be returned to the requester with 
a statement that the request was untimely received and that copies of 
any nonexempt portions of the transcript or minutes for the meeting in 
question will ordinarily be available in the office of the Secretary 10 
working days after the meeting.
    (2)(i) Any person whose interests may be directly affected may 
request in writing that the Commission close to public observation 
discussion of a matter which it has earlier decided to open as provided 
for in paragraph (d)(2) of this section.
    (ii) Such requests shall be captioned ``Request to Close ---------- 
(date) Commission meeting on item ---------- (number or description),'' 
shall state the reason(s) therefor, the name and address of the person 
making the request and, if desired, a telephone number.
    (iii) Ten copies of such requests should be filed with the office of 
the Secretary as soon as possible after the issuance of the notice of 
meeting to which the request pertains. However, a single copy of the 
request will be accepted. Requests to close meetings must be received by 
the office of the Secretary no later than the time scheduled for the 
meeting to which such a request pertains.
    (3) The Secretary shall retain one copy of timely requests and 
forward one copy to each Commissioner, one copy to the interested 
Office, and two copies to the Docket Section, one for entry in the 
appropriate docket file, if any, and one to be posted on the Public 
Notice Board located in that section as an attachment to the Notice of 
Meeting to which it pertains.
    (4) Pleadings replying to requests to open or close shall not be 
accepted.
    (5) Any Commissioner may require that the Commission vote upon the 
request to open or close. If the request is supported by the votes of a 
majority of the agency membership, notice of change in meeting shall be 
issued and the Secretary shall immediately notify the requester and, 
before the close of business the next working day, have posted such vote 
and other material required by paragraphs (d) and (e) of this section on 
the Commission's Public Notice Board.
    (6) If no Commissioner requests that a vote be taken on a request to 
open or close a Commission meeting, the Secretary shall by the close of 
the next working day after the meeting to which such request pertains 
certify that no vote was taken. The Secretary shall forward one copy of 
that certification to the requester and two copies of that certification 
to the Docket Section, one to be placed in the appropriate docket file, 
if any, and one to be posted on the Public Notice Board, where it will 
be displayed for one week.

[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, Feb. 
10, 2000]

Subparts B-C [Reserved]



  Subpart D_Rules Applicable to Requests for Changes in the Nature of 
                             Postal Services



Sec. 3001.71  Applicability.

    The rules in this subpart govern the procedure with regard to 
proposals of the Postal Service pursuant to section 3661 of the Act 
requesting from the Commission an advisory opinion on changes in the 
nature of postal services which will generally affect service on a 
nationwide or substantially nationwide basis. The Rules of General 
Applicability in subpart A of this part are also applicable to 
proceedings on requests subject to this subpart.



Sec. 3001.72  Filing of formal requests.

    Whenever the Postal Service determines to request that the 
Commission issue an advisory opinion on a proposed change in the nature 
of postal services subject to this subpart, the Postal Service shall 
file with the Commission a formal request for such an opinion in 
accordance with the requirements of Sec. Sec. 3001.9 to 3001.11 and 
3001.74. Such request shall be filed not less than 90 days in advance of 
the date on which the Postal Service proposes to make effective the 
change in the nature of postal services involved. Within 5 days

[[Page 389]]

after the Postal Service has filed a formal request for a recommended 
decision in accordance with this subsection, the Secretary shall lodge a 
notice thereof with the Director of the Federal Register for publication 
in the Federal Register.

[38 FR 4330, Feb. 13, 1973, as amended at 51 FR 8827, Mar. 14, 1986]



Sec. 3001.73  Filing of prepared direct testimony.

    Simultaneously with the filing of a formal request for an advisory 
opinion under this subpart, the Postal Service shall file all of the 
prepared direct evidence upon which it proposes to rely in the 
proceeding on the record before the Commission to establish that the 
proposed change in the nature of postal services is in accordance with 
and conforms to the policies of the Act. Such prepared direct evidence 
shall be in the form of prepared written testimony and documentary 
exhibits which shall be filed in accordance with Sec. 3001.31.



Sec. 3001.74  Contents of formal requests.

    (a) General requirements. Each formal request filed under this 
subpart shall include such information and data and such statements of 
reasons and basis as are necessary and appropriate to fully inform the 
Commission and the parties of the nature, scope, significance and impact 
of the proposed change in the nature of postal services and to show that 
such change in the nature of postal service is in accordance with and 
conforms to the policies established under the Act. Detailed data and 
information and statements of reasons or basis set forth in the Postal 
Service's prepared direct evidence may be relied upon for purposes of 
the formal request without restatement therein by reference in the 
request to the portions of the prepared direct evidence relied upon.
    (b) Specific information. Subject to the right of the Commission to 
request additional information, each formal request shall include the 
following:
    (1) A detailed statement of the present nature of the postal 
services proposed to be changed and the change proposed;
    (2) The proposed effective date for the proposed change in the 
nature of postal services;
    (3) A full and complete statement of the reasons and basis for the 
Postal Service's determination that the proposed change in the nature of 
postal services is in accordance with and conforms to the policies of 
the Act.



Sec. 3001.75  Service by the Postal Service.

    Immediately after the issuance of an order or orders by the 
Commission designating an officer of the Commission to represent the 
interests of the general public in a proceeding before the Commission 
under this subpart, the Postal Service shall serve copies of its formal 
request for an advisory opinion and its prepared direct evidence upon 
such officer and the intervenors as provided by Sec. 3001.12. Service 
shall also be made on persons who are limited participators.

[38 FR 3511, Feb. 7, 1973, as amended at 51 FR 8827, Mar. 14, 1986; 58 
FR 38977, July 21, 1993]

Subparts E-L [Reserved]



PART 3002_ORGANIZATION--Table of Contents



Sec.
3002.1 Purpose.
3002.2 Statutory functions
3002.3 Official seal.
3002.4-3002.9 [Reserved]
3002.10 The Commission and its offices.
3002.11 Administrative Office.
3002.12 Office of Rates, Analysis, and Planning.
3002.13 Office of the General Counsel.
3002.14 Office of the Consumer Advocate.
3002.15 Office of Public Affairs and Governmental Relations. [Reserved]
3002.16 Office of Inspector General. [Reserved]

Appendix A to Part 3002--Postal Rate Commission, Mission Statement of 
          the Office of the Consumer Advocate

    Authority: 39 U.S.C. 503; 5 U.S.C. 552.

    Editorial Note: Nomenclature changes for Part 3002 appear at 70 FR 
48277, Aug. 17, 2005.



Sec. 3002.1  Purpose.

    This part is published in compliance with 5 U.S.C. 552(a)(1) and 
constitutes a

[[Page 390]]

general description of the Postal Regulatory Commission.

[36 FR 21994, Nov. 18, 1971, as amended at 72 FR 33165, June 15, 2007]



Sec. 3002.2  Statutory functions.

    (a) Areas of jurisdiction. The Commission has jurisdiction over 
changes in postal rates and fees under 39 U.S.C. 3622, and over mail 
classifications under 39 U.S.C. 3623. It issues recommended decisions to 
the Governors of the Postal Service on these matters. It also acts on 
postal patrons' appeals from Postal Service decisions to close or 
consolidate post offices under 39 U.S.C. 404(b). Further, the Commission 
investigates complaints of substantial national scope concerning postal 
rates, fees, mail classifications or services under 39 U.S.C. 3662. It 
also responds to requests of the Postal Service for advisory opinions on 
changes in the nature of postal services under 39 U.S.C. 3661. Because 
of the Commission's expertise, Congress occasionally asks it to 
undertake special studies on postal issues.
    (b) Public participation. Interested persons may elect to 
participate in Commission rate and mail classification proceedings as 
formal intervenors (Sec. 3001.20), limited participators (Sec. 
3001.20a), or commenters (Sec. 3001.20b). Interested parties who 
believe the Postal Service is charging rates which do not conform with 
the policies of the Postal Reorganization Act, or who believe that they 
are not receiving postal service in accordance with the policies of 
title 39, may lodge a complaint with the Commission under section 
3001.82. Persons served by post offices that the Postal Service decides 
to close or consolidate with other post offices may appeal such 
determinations under Sec. 3001.111.

[64 FR 58337, Oct. 29, 2000]



Sec. 3002.3  Official seal.

    (a) Authority. The Seal described in this section is hereby 
established as the official seal of the Postal Rate Commission.
    (b) Description. (1) On a white disc within a blue border with inner 
and outer rims gold and inscribed at top POSTAL RATE COMMISSION and in 
base, between two small five-pointed stars, 1970, all in gold, the 
shield of the coat of arms in full color blazoned as follows:

    Five blue stars on a white stripe running from the upper left to the 
lower right of the shield, with three white billets on each of the upper 
and lower sections of the shield, the former blue and the latter red.

    (2) The official seal of the Postal Rate Commission is modified when 
reproduced in black and white and when embossed, as it appears in this 
section.
[GRAPHIC] [TIFF OMITTED] TC21OC91.065

    (c) Custody and authorization to affix. (1) The seal is the official 
emblem of the Postal Rate Commission and its use is therefore permitted 
only as provided in this part.
    (2) The seal shall be kept in the custody of the Secretary and is to 
be used to authenticate records of the Postal Rate Commission and for 
other official purposes.
    (3) Use by any person or organization outside of the Commission may 
be made only with the Commission's prior written approval. Such request 
must be made in writing to the Secretary.

[39 FR 2481, Jan. 22, 1974. Redesignated at 42 FR 3646, Jan. 19, 1977, 
and 48 FR 13168, Mar. 30, 1983. Redesignated and amended at 72 FR 33165, 
June 15, 2007]

    Effective Date Note: At 72 FR 33165, June 15, 2007, Sec. 3002.3 was 
stayed indefinitely.



Sec. Sec. 3002.4-3002.9  [Reserved]



Sec. 3002.10  The Commission and its offices.

    (a) The Commissioners. The Postal Regulatory Commission is an 
independent establishment of the executive branch of the U.S. Government 
created by the Postal Reorganization Act (84

[[Page 391]]

Stat. 719, title 39, U.S.C.). The Commission consists of five 
Commissioners appointed by the President and confirmed by the Senate, 
one of whom is designated as Chairman by the President.
    (b) The Chairman and Vice-Chairman. The Chairman has the 
administrative responsibility for assigning the business of the 
Commission to the other Commissioners and to the offices and employees 
of the Commission. He/She has the administrative duty to preside at the 
meetings and sessions of the Commission and to represent the Commission 
in matters specified by statute or executive order or as the Commission 
directs. The Commission shall elect annually a member of the Commission 
to serve as Vice-Chairman of the Commission for a term of one year or 
until a successor is elected. In case of a vacancy in the Office of the 
Chairman of the Commission, or in the absence or inability of the 
Chairman to serve, the Vice-Chairman, unless otherwise directed by the 
Chairman, shall have the administrative responsibilities and duties of 
the Chairman during the period of vacancy, absence, or inability.
    (c) The Commission's offices are located at 901 New York Avenue NW., 
Suite 200, Washington, DC 20268. On these premises, the Commission 
maintains offices for Commissioners and the staff components described 
in Sec. Sec. 3001.4, 3001.5, 3001.6 and 3001.7; a docket room where 
documents may be filed with the Commission pursuant to Sec. 3001.9 and 
examined by interested persons; a public reading room where the 
Commission's public records are available for inspection and copying; a 
library containing legal and technical reference materials; and a 
hearing room where formal evidentiary proceedings are held on matters 
before the Commission. The Commission also maintains an electronic 
reading room accessible through the Internet, on its website at 
www.prc.gov.

[48 FR 13167, Mar. 30, 1983. Redesignated and amended at 64 FR 58337, 
Oct. 29, 1999. Redesignated and amended at 72 FR 33165, June 15, 2007]



Sec. 3002.11  Administrative Office.

    (a) The incumbent head of the office is responsible for exercising 
two executive functions of the Commission and utilizes the title of 
either ``Secretary'' or ``Chief Administrative Officer'', as 
appropriate.
    (b) As Secretary of the Commission, the incumbent head shall have 
custody of the Commission's seal, the minutes of all action taken by the 
Commission, its rules and regulations, its administrative and other 
orders, and records. All orders and other actions of the Commission 
shall be authenticated or signed by the Secretary or any such other 
person as may be authorized by the Commission.
    (c) As Chief Administrative Officer the incumbent head is also 
responsible, subject to the policy guidelines of the Commission, for: 
Development, implementation, and administration of the Commission's 
financial management system and accounting activities including those 
relating to the budget and the payroll; development and administration 
in conjunction with the Personnel Officer of a personnel program 
designed to meet the needs of the Commission and its employees; 
development and administration, subject to the supervision of the 
Chairman, of a public information program appropriate to the agency 
mission; provision of facilities and operating and support services 
essential to the efficient and effective conduct of operations; 
acquisition, planning and assignment of office space; procurement and 
supply; serving as the contracting officer for the Commission and 
controlling the obligation of Commission funds, as authorized by the 
Commission.
    (d) The personnel management functions set out above are the 
immediate responsibility of the Personnel Officer, whose position is 
located in the Administrative Office.
    (e) The Administrative Office is also responsible for the 
maintenance of the Commission's public information resources, including 
the docket room, the physical reading room, and the library on the 
premises of the Commission's offices, as well as the electronic reading 
room accessible on the Commission's website at www.prc.gov. The 
information available on the Commission's website is, in general, 
coextensive with that available from the Commission's docket room and 
physical

[[Page 392]]

reading room, and includes: Commission decisions, rules, orders and 
notices; testimony, pleadings and reference materials filed in 
Commission proceedings; and current information concerning Commission 
activities, employment opportunities, and a calendar of upcoming events.

[48 FR 13167, Mar. 30, 1983. Redesignated and amended at 64 FR 58337, 
Oct. 29, 1999. Redesignated at 72 FR 33165, June 15, 2007]



Sec. 3002.12  Office of Rates, Analysis, and Planning.

    (a) The Office of Rates, Analysis, and Planning is responsible for 
technical (as opposed to legal) analysis and the formulation of policy 
recommendations for the Commission.
    (b) This office provides the analytic support to the Commission for 
reviewing the record of rate and classification requests, post office 
closings and other issues which come before the Commission. The 
functional areas of expertise within this office are:
    (1) The economic analysis of the market for postal services 
including the alternative sources for such services and the users of the 
service;
    (2) The analysis of the operational characteristics of the postal 
system and its interface with various segments of the economy; and,
    (3) The analysis of the costs of operating the Postal Service and 
how such costs are influenced by the operational characteristics.
    (c) These functional activities are combined in the evaluation of 
the revenue requirements of the Postal Service under possible 
alternative operating circumstances for the purpose of developing rate 
structures. They are also used to evaluate the impact of various 
proposed changes to the Domestic Mail Classification Schedule and the 
consequences of these changes upon the mailers and upon the revenue 
requirements and rate structure of the Postal Service.
    (d) The office also collects, analyzes and periodically summarizes 
financial and various other statistical information for use in its 
ongoing activities and for the development of future methods, techniques 
and systems of analysis and reporting.

[48 FR 13168, Mar. 30, 1983, as amended at 62 FR 45530, Aug. 28, 1997. 
Redesignated at 64 FR 58337, Oct. 29, 1999. Redesignated at 72 FR 33165, 
June 15, 2007]



Sec. 3002.13  Office of the General Counsel.

    The General Counsel directs and coordinates the functions of the 
Office of the General Counsel and is directly responsible for the 
counseling and advisory services set forth in 39 CFR 3000.735-203. In 
accordance with Sec. 3001.8 of the rules of practice, the General 
Counsel does not appear as an attorney in hearings in any proceeding 
before the Commission and takes no part in the preparation of evidence 
or argument presented in such hearings. The General Counsel represents 
the Commission in court proceedings and performs legal research on 
issues coming before the Commission; advises the Commission on the legal 
aspects of proposed legislation and rulemaking, the legal aspects of 
proposed action and policies on procurement, contracting, personnel 
matters, and other internal legal questions.

[48 FR 13168, Mar. 30, 1983. Redesignated at 72 FR 33165, June 15, 2007]



Sec. 3002.14  Office of the Consumer Advocate.

    (a) The Office of the Consumer Advocate provides representation for 
the interests of the general public in Commission proceedings. The 
office prepares and litigates before the Commission legal and 
evidentiary presentations in all formal Commission dockets under chapter 
36 of title 39, U.S. Code. It also is responsible for maintaining a 
continuing litigation capability including preparation for consideration 
of issues likely to reflect the interests of the general public in 
subsequent proceedings.
    (b) The head of this office is responsible for directing both legal 
and technical personnel to fulfill its functions. The office includes 
both litigation attorneys and a broad spectrum of technical expertise to 
analyze and evaluate the diverse economic, cost and market issues before 
the Commission. During

[[Page 393]]

the pendency of a proceeding, personnel serving in the Office of the 
Consumer Advocate are prohibited from participating or advising as to 
any intermediate or Commission decision in that proceeding pursuant to 
the Commission Rules of Practice.
    (c) A mission statement regarding the Office of the Consumer 
Advocate is contained as appendix A to this part.

[48 FR 13168, Mar. 30, 1983, as amended at 64 FR 37402, July 12, 1999. 
Redesignated at 72 FR 33165, June 15, 2007]



Sec. 3002.15  Office of Public Affairs and Governmental Relations. 
[Reserved]



Sec. 3002.16  Office of Inspector General. [Reserved]



  Sec. Appendix A to Part 3002--Postal Regulatory Commission, Mission 
            Statement of the Office of the Consumer Advocate

    The mission of the Office of the Consumer Advocate is to be a 
vigorous, responsive, and effective advocate for reasonable and 
equitable treatment of the general public in proceedings before the 
Postal Regulatory Commission.
    In furtherance of this mission, the Office of the Consumer Advocate 
will:
    1. Give a strong and consistent voice to the views of consumers, 
especially those that are not otherwise represented in Commission 
proceedings;
    2. Argue for equity on behalf of individuals and small businesses, 
both as senders and as recipients of mail and mail services;
    3. Utilize all means and procedures available under the Commission's 
rules and applicable law to present evidence and arguments on behalf of 
consumers in Commission proceedings;
    4. Assist in the development of a complete record on issues pending 
before the Commission;
    5. Engage in dialogue with parties or participants in proceedings 
before the Commission to advance the interests of consumers;
    6. Encourage the equitable settlement of issues among the parties 
and participants in proceedings whenever possible;
    7. Promote fair competition between the United States Postal Service 
and its competitors for the ultimate benefit of consumers;
    8. Seek out responsible advocates of consumer interests and 
encourage their participation in Commission cases;
    9. Maintain the highest standards of competence and quality in all 
evidence and pleadings submitted to the Commission; and
    10. Maintain separation and independence from the Commission and its 
advisory staff in the course of proceedings before the Commission.

[64 FR 37402, July 12, 1999, as amended at 72 FR 33165, June 15, 2007]



PART 3003_PRIVACY ACT RULES--Table of Contents



Sec.
3003.1 Purpose and scope.
3003.2 Definitions.
3003.3 Procedures for requesting inspection, copying, or correction.
3003.4 Response to a request.
3003.5 Appeals of denials of access or amendment.
3003.6 Fees.
3003.7 Exemptions.

    Authority: Privacy Act of 1974 (Pub. L. 93-579), 5 U.S.C. 552a.

    Source: 64 FR 57982, Oct. 28, 1999, unless otherwise noted.

    Editorial Note: Nomenclature changes for Part 3003 appear at 70 FR 
48277, Aug. 17, 2005.



Sec. 3003.1  Purpose and scope.

    This part implements the Privacy Act of 1974 (5 U.S.C. 552a) by 
establishing Commission policies and procedures that permit individuals 
to obtain access to and request amendment of information about 
themselves that is maintained in systems of records. This part does not 
expand or restrict any rights granted under the Privacy Act of 1974.



Sec. 3003.2  Definitions.

    For purposes of this part:
    (a) Commission means the Postal Regulatory Commission.
    (b) Individual, record, and system of records have the meanings 
specified in 5 U.S.C. 552a(a).
    (c) Day means a calendar day and does not include Saturdays, 
Sundays, and legal holidays.

[64 FR 57982, Oct. 28, 1999, as amended at 72 FR 33165, June 15, 2007]



Sec. 3003.3  Procedures for requesting inspection, copying, or correction.

    (a) An individual who--
    (1) Wishes to know whether a Commission system of records contains a 
record about him or her,

[[Page 394]]

    (2) Seeks access to a Commission record about him or her that is 
maintained in a system of records (including the accounting of 
disclosures), or
    (3) Seeks to amend a record about him or her that is maintained in a 
system of records, may file a written request with the chief 
administrative officer of the Commission at the Commission's current 
address (901 New York Avenue NW., Suite 200, Washington, DC 20268-0001). 
The request should state on the outside of the envelope and in the 
request that it is a Privacy Act request.
    (b) A request for amendment must describe the information sought to 
be amended and the specific reasons for the amendment.
    (c) A requester--
    (1) May request an appointment to inspect records at the 
Commission's offices between the hours of 8 a.m. and 4:30 p.m. on any 
day;
    (2) Must present suitable identification, such as a driver's 
license, employee identification card, or Medicare card;
    (3) If accompanied by another individual, must sign a statement, if 
requested by the chief administrative officer, authorizing discussion of 
his or her record in the presence of that individual;
    (4) Who files a request by mail must include his or her date of 
birth, dates of employment at the Commission (if applicable), and 
suitable proof of identity, such as a facsimile of a driver's license, 
employee identification card, or Medicare card; and
    (5) Must, if requested by the chief administrative officer, provide 
additional proof of identification.



Sec. 3003.4  Response to a request.

    (a) In the case of a request for notice of the existence of a 
record, the chief administrative officer shall respond within 10 days of 
receipt of a request and shall inform the individual whether a system of 
records maintained by the Commission contains such a record.
    (b) In the case of a request for access to a record or for a copy of 
a record, the chief administrative officer shall acknowledge the request 
within 10 days and shall promptly thereafter--
    (1) Fulfill the request by mail or arrange for an inspection by the 
requester in the Commission's offices; or
    (2) If the request is denied, notify the requester of the denial, 
the reasons for the denial, the procedures for appealing the refusal, 
and the name and address of the Chairman of the Commission who will 
consider an appeal.
    (c) In the case of a request for amendment, the chief administrative 
officer shall:
    (1) Acknowledge the request in writing within 10 days;
    (2) Promptly review the record; and
    (3)(i) Make any requested amendment of a record found to be not 
accurate, relevant, timely, or complete; notify the requester of the 
change and provide a copy of the corrected record; and notify any 
previous recipient of the record (excluding Commission staff who 
obtained the record in the performance of their duties and recipients 
under the Freedom of Information Act) of any change; or
    (ii) Inform the requester of a refusal to amend the record, the 
reasons for the refusal, the procedures for appealing the refusal, and 
the name and address of the Chairman of the Commission who will consider 
an appeal.



Sec. 3003.5  Appeals of denials of access or amendment.

    (a) If a request for access to or amendment of a record is denied, 
the requester may file a written appeal with the Chairman of the 
Commission. The Chairman will decide each appeal within 30 days of 
receipt unless the Chairman has, for good cause, extended the period for 
another 30 days.
    (b) If an appeal is denied, the requester will be notified of the 
decision, the reasons for the denial, the right to file a concise 
statement of disagreement, the procedures for filing a statement of 
disagreement, the subsequent uses of a statement of disagreement, and of 
the right to seek judicial review in accordance with subsection (g) of 
the Privacy Act.



Sec. 3003.6  Fees.

    The first copy of any record furnished under the Privacy Act of 1974

[[Page 395]]

will be provided without charge. Additional copies will be charged at 
the cost of reproduction.



Sec. 3003.7  Exemptions.

    The Postal Regulatory Commission has not established any exempt 
system of records.

[64 FR 57982, Oct. 28, 1999, as amended at 72 FR 33165, June 15, 2007]



PART 3004_PUBLIC RECORDS AND FREEDOM OF INFORMATION ACT--Table of 
Contents



Sec.
3004.1 Purpose.
3004.2 Presumption of openness.
3004.10 Public records.
3004.11 Use of exemptions.
3004.12 Reading room.
3004.13 Notice and publication of public information.
3004.20 Commission procedure when served a subpoena.
3004.30 Relationship among the Freedom of Information Act, the Privacy 
          Act, and the Commission's procedures for according appropriate 
          confidentiality.
3004.40 Hard copy requests for records and for expedited processing.
3004.41 Electronic requests for records and for expedited processing.
3004.42 Tracking of requests.
3004.43 Response to requests.
3004.44 Appeals.
3004.45 Extension of response time limit.
3004.50 Fees--definitions as used in this part.
3004.51 Fees--request category.
3004.52 Fees--general provisions.
3004.53 Fee schedule.
3004.54 Procedure for assessing and collecting fees.
3004.60 Chief Freedom of Information Act Officer.
3004.61 Freedom of Information Act Public Liaison.
3004.70 Third-party submission of non-public materials.

    Authority: 5 U.S.C. 552; 39 U.S.C. 503.

    Source: 74 FR 57256, Nov. 5, 2009, unless otherwise noted.



Sec. 3004.1  Purpose.

    (a) This part implements the Freedom of Information Act (FOIA), 5 
U.S.C. 552, and describes the procedures by which a person may request 
copies of Commission records pursuant to FOIA. It contains the rules 
that the Commission follows in handling requests, such as the amount of 
time it has to make a determination regarding release of records and 
what fees to charge. It also describes how a submitter of trade secrets 
or confidential business information can identify information that the 
submitter believes to be exempt from disclosure under 5 U.S.C. 552(b).
    (b) Information required to be published or made available pursuant 
to 5 U.S.C. 552(a)(1) and (a)(2) may be found in 39 CFR part 3002, and 
on the Commission's Web site at http://www.prc.gov. The Commission's 
guide to FOIA, all required FOIA indexes, and recent annual FOIA reports 
are also available on the Web site.
    (c) Section 3004.10 identifies records that the Commission has 
determined to be public.



Sec. 3004.2  Presumption of openness.

    (a) The Commission shall be proactive, and systematically, in a 
timely manner, post public records online in advance of any public 
request.
    (b) It is the stated policy of the Commission that FOIA requests 
shall be administered with a clear presumption of openness.



Sec. 3004.10  Public records.

    (a) Except as provided in Sec. 3004.11 and in Sec. 3007.10 of this 
chapter, the public records of the Commission include all submissions 
and filings as follows:
    (1) Requests of the Postal Service for decisions or advisory 
opinions, notices, public reports, complaints (both formal and 
informal), and other papers seeking Commission action;
    (2) Financial, statistical and other reports to the Commission, and 
other filings and submittals to the Commission in compliance with the 
requirements of any statute, executive order, or Commission rule, 
regulation or order;
    (3) All answers, replies, responses, objections, protests, motions, 
stipulations, exceptions, other pleadings, notices, depositions, 
certificates, proofs of service, transcripts and briefs in any matter or 
proceeding;
    (4) Exhibits, attachments and appendices to, amendments and 
corrections of, supplements to, or transmittals or withdrawals of any of 
the foregoing; and

[[Page 396]]

    (5) Commission correspondence related to the foregoing.
    (b) All other parts of the formal record in any matter or proceeding 
before the Commission and correspondence related thereto, including:
    (1) Notices or Commission orders initiating the matter or 
proceeding;
    (2) Designation of the presiding officer;
    (3) Transcript of hearings;
    (4) Offers of proof, motions and stipulations made during a hearing;
    (5) Exhibits received in evidence during a hearing;
    (6) Certifications to the Commission; and
    (7) Anything else upon which action of a presiding officer or the 
Commission may be based.
    (c) Proposed testimony or exhibits filed with the Commission but not 
yet offered or received in evidence.
    (d) Presiding officer actions and all presiding officer 
correspondence and memoranda to or from anyone other than staff assigned 
to provide assistance to the presiding officer.
    (e) Commission decisions, reports, opinions, orders, notices, 
findings, determinations and other actions in any matter or proceeding 
and all Commission minutes which have been approved.
    (f) Commission correspondence relating to any data or information 
request directed to the Postal Service.
    (g) Commission correspondence with respect to the furnishing of 
data, information, comments, or recommendations to or by another branch, 
department, or agency of the Government where furnished to satisfy a 
specific requirement of a statute or where made public by that branch, 
department, or agency.
    (h) Commission correspondence and reports on legislative matters 
under consideration by the Office of Management and Budget or Congress, 
but only if and after authorized for release or publication by that 
office, the Commission, or the Member of Congress involved.
    (i) Commission correspondence on the interpretation or applicability 
of any statute, rule, regulation, decision, advisory opinion, or public 
report issued by the Commission and letters of opinion on that subject 
signed by the General Counsel and sent to persons other than the 
Commission, a Commissioner, or any of the staff.
    (j) Copies of all filings by the Commission, and all orders, 
judgments, decrees, and mandates directed to the Commission in court 
proceedings involving Commission action and all correspondence with the 
courts, or clerks of court.
    (k) The Commission's administrative and operating manuals as issued.



Sec. 3004.11  Use of exemptions.

    (a) Under FOIA, there are nine exemptions which may be used to 
protect information from disclosure. The Commission has paraphrased the 
exemptions in paragraphs (b) through (j) of this section. These 
paraphrases are not intended to be interpretations of the exemptions.
    (b) National security information concerning national defense or 
foreign policy, provided that such information has been properly 
classified, in accordance with an Executive Order.
    (c) Information related solely to the internal personnel rules and 
practices of an agency.
    (d) Information specifically exempted from disclosure by statute, 
for example, 39 U.S.C. 410(c):
    (1) The name or address, past or present, of any postal patron;
    (2) Information of a commercial nature, including trade secrets, 
whether or not obtained from a person outside the Postal Service, which 
under good business practice would not be publicly disclosed;
    (3) Information prepared for use in connection with the negotiation 
of collective bargaining agreements under 39 U.S.C. chapter 12, or 
minutes of, or notes kept during negotiating sessions conducted under 
such chapter;
    (4) Information prepared for use in connection with proceedings 
under 39 U.S.C. chapter 36; and
    (5) The reports and memoranda of consultants or independent 
contractors except to the extent that they would be required to be 
disclosed if prepared within the agency.

[[Page 397]]

    (e) Trade secrets and commercial or financial information which is 
obtained from a person and is privileged or confidential.
    (f) Inter-agency or intra-agency memoranda or letters, which would 
not be available by law to a party other than an agency in litigation 
with the agency.
    (g) Personnel and medical files and similar files, the disclosure of 
which would constitute a clearly unwarranted invasion of personal 
privacy.
    (h) Records or information compiled for law enforcement purposes, 
the release of which:
    (1) Could reasonably be expected to interfere with enforcement 
proceedings;
    (2) Would deprive a person of a right to a fair trial or an 
impartial adjudication;
    (3) Could reasonably be expected to constitute an unwarranted 
invasion of personal privacy;
    (4) Could reasonably be expected to disclose the identity of a 
confidential source and investigations or prosecutions if such 
disclosure could reasonably be expected to risk circumvention of the 
law; or
    (5) Could reasonably be expected to endanger the life or physical 
safety of any individual.
    (i) Information contained in or related to examination, operating, 
or condition reports, prepared by, or on behalf of, or for the use of an 
agency responsible for regulating or supervising financial institutions.
    (j) Geological and geophysical information and data, including maps, 
concerning wells.
    (k) It is Commission policy to make records publicly available upon 
request, unless the record qualifies for exemption under one or more of 
the nine exemptions. It is Commission policy to make discretionary 
releases; however, a discretionary release is not normally appropriate 
for records exempt under exemptions identified in paragraphs (b), (d), 
(e), (g), (h)(3) and (h)(5) of this section. The remainder of the 
exemptions are discretionary.
    (l) The following are examples of information that is not part of 
the public records of the Commission:
    (1) Written communications between or among the Commission, members 
of the Commission, the Secretary, and expressly designated staff members 
while particularly assigned, in accordance with all applicable legal 
requirements, to aid the Commission in the drafting of any decision, 
notice, order, advisory opinion, or public report and findings, with or 
without opinion, or report in any matter or proceeding;
    (2) Reports and records compiled or created by the Inspector General 
of the Commission designated as confidential; and
    (3) Unaccepted offers of settlement in any matter or proceeding 
unless or until made public by act of the offeror.



Sec. 3004.12  Reading room.

    (a) The Commission maintains a public reading room at its offices 
(901 New York Avenue, NW., Suite 200, Washington, DC 20268-0001) and an 
electronic reading room at http://www.prc.gov. The public reading room 
at its offices is open during business hours.
    (b) The records available for public inspection and printing 
include, for example, decisions; reports; opinions; orders; notices; 
findings; determinations; statements of policy; copies of selected 
records released under FOIA; indexes required to be maintained under 
FOIA; and records described in Sec. 3004.10 relating to any matter or 
proceeding before the Commission.
    (c) The Commission shall make available, in the electronic and 
physical reading rooms, records previously released under FOIA and which 
the Commission determines are or are likely to become of significant 
public interest.



Sec. 3004.13  Notice and publication of public information.

    (a) Decisions, advisory opinions, orders, and public reports will be 
made available to the public by posting on the Commission's Web site at 
http://www.prc.gov.
    (b) Descriptions of the Commission's organization, its methods of 
operation, statements of policy and interpretations, and procedural and 
substantive rules, are published in the Federal Register publication 
system, and are available on the Commission's Web site, http://
www.prc.gov.

[[Page 398]]



Sec. 3004.20  Commission procedure when served a subpoena.

    If an officer or employee of the Commission is served with a 
subpoena duces tecum, material that is not part of the public files and 
records of the Commission shall be produced only as authorized by the 
Commission. Service of such a subpoena shall immediately be reported to 
the Commission with a statement of all relevant facts. The Commission 
will thereupon enter such order or give such instructions as it deems 
advisable.



Sec. 3004.30  Relationship among the Freedom of Information Act, the 
Privacy Act, and the Commission's procedures for according appropriate

confidentiality.

    (a) Coverage. FOIA applies to all Commission records and provides 
the public with access to government records.
    (b) Requesting records subject to the Privacy Act. A request by an 
individual for his or her own records contained in a system of records 
is governed by the Privacy Act. Release will first be considered under 
the Privacy Act pursuant to part 3003 of this chapter. However, if there 
is any record that the Commission need not release under the Privacy 
Act, the Commission will also consider the request under FOIA, and will 
release the record if FOIA requires it.
    (c) Requesting another individual's record. Request for records of 
individuals which may not be granted under the Privacy Act shall be 
considered under FOIA.
    (1) If the Commission makes a disclosure in response to a request 
and the disclosure is permitted by the Privacy Act's disclosure 
provision, 5 U.S.C. 552a(b), the Commission will rely on the Privacy Act 
to govern the disclosure.
    (2) In some circumstances, the Privacy Act may prohibit the 
Commission's ability to release records which may be released under 
FOIA.
    (d) Requesting a Postal Service record. The Commission maintains 
custody of records that are both Commission and Postal Service records.
    (1) A request made pursuant to FOIA for records designated as non-
public by the Postal Service shall be referred to the Postal Service; 
and
    (2) A request made pursuant to part 3007 of this chapter for records 
designated as non-public by the Postal Service shall be considered under 
the applicable standards set forth in that part.
    (e) Requesting a third-party record submitted under seal. The 
Commission maintains records of a confidential nature submitted by third 
parties as non-public materials.
    (1) A request made pursuant to FOIA for records designated as non-
public by a third party shall be considered in light of all applicable 
exemptions; and
    (2) A request made pursuant to part 3007 of this chapter for records 
designated as non-public by a third party shall be considered under the 
applicable standards set forth in that part.



Sec. 3004.40  Hard copy requests for records and for expedited processing.

    (a) A hard copy request for records must:
    (1) Be in writing;
    (2) Include the name and address of the requester;
    (3) Reasonably describe the records sought;
    (4) Include a daytime telephone number;
    (5) Be clearly identified as ``Freedom of Information Act Request'' 
both in the text of the request and on the envelope;
    (6) Identify the request category under Sec. 3004.51; and
    (7) Be submitted to the Secretary of the Commission at the offices 
of the Commission (901 New York Avenue, NW., Suite 200, Washington, DC 
20268-0001).
    (b) Expedited processing. A person demonstrating a compelling need 
as defined in 5 U.S.C. 552(a)(6)(E)(v) may request expedited processing 
at the time of an initial request (or appeal) or at a later time. In 
addition to the requirements in paragraph (a) of this section, an 
expedited request for records must:
    (1) Demonstrate a compelling need as defined in 5 U.S.C. 
552(a)(6)(E)(v);

[[Page 399]]

    (2) Be clearly identified as ``Expedited Freedom of Information Act 
Request'' both in the text of the request and on the envelope; and
    (3) Certify the statement of compelling need to be true and correct 
to the best of the requester's knowledge and belief. At its discretion, 
the Commission may waive the requirement for certification.



Sec. 3004.41  Electronic requests for records and for expedited 
processing.

    (a) An electronic request for records must:
    (1) Be submitted using the Commission's online FOIA request form at 
http://www.prc.gov;
    (2) Reasonably describe the records sought;
    (3) Include a daytime telephone number and valid e-mail address; and
    (4) Identify the request category under Sec. 3004.51.
    (b) Expedited processing. A person satisfying the requirements of 
paragraph (a) of this section may request expedited processing at the 
time of the initial request or at a later time by:
    (1) Demonstrating a compelling need as defined in 5 U.S.C. 
552(a)(6)(E)(v);
    (2) Clearly identifying the request as an ``Expedited Freedom of 
Information Act Request'' in the body of the submission; and
    (3) Certifying the statement of compelling need to be true and 
correct to the best of the requester's knowledge and belief. At its 
discretion, the Commission may waive the requirement for certification.



Sec. 3004.42  Tracking of requests.

    (a) Upon receipt of a request, the Commission shall assign a unique 
tracking number to the request and within 3 days (excluding Saturdays, 
Sundays and legal holidays) provide that number to the person making the 
request.
    (b) Any person with a tracking number may call or e-mail the 
Commission's Office of Public Affairs and Government Relations (PAGR) to 
check the status of a request. PAGR may be e-mailed at [email protected] 
or called at 202-789-6800.



Sec. 3004.43  Response to requests.

    (a) Within 20 days (excluding Saturdays, Sundays and legal holidays) 
after receipt of a request for a Commission record, the Secretary or 
Assistant Secretary will notify the requester of its determination to 
grant or deny the request.
    (b) Granting request. If granting the request, the Secretary, or 
Assistant Secretary will notify the requester of any fees that must be 
paid.
    (c) Partial granting of request. If the Commission is unable to 
grant the request in its entirety, any reasonably segregable portion of 
the request shall be provided, with deleted portions treated as 
specified in paragraph (d) of this section, and the Secretary or 
Assistant Secretary will notify the requester of any fees that must be 
paid.
    (d) Denying request. If denying the request, in whole or in part, 
the Secretary or Assistant Secretary will inform the requester in 
writing of:
    (1) The reason for the denial, including each exemption used as a 
basis for withholding of the records sought and, if applicable, the harm 
to an interest protected by a statutory exemption;
    (2) An estimate of the volume of requested matter that was denied:
    (i) If disclosure of a record has been partially denied, the amount 
of information deleted will be indicated on the released portion if 
technically feasible; and
    (ii) If revealing the amount or location of a denied record will 
harm an interest protected by an exemption, then the description of the 
amount or location of deleted information shall be withheld.
    (3) The right to appeal the denial to the Commission within 1 year.
    (e) Expedited processing. Within 10 days (excluding Saturdays, 
Sundays and legal holidays) after receipt of a request for expedited 
processing, the Secretary or Assistant Secretary will:
    (1) Grant the request for expedited processing and process the 
request for records as soon as practicable; or
    (2) Deny the request for expedited processing by informing the 
individual of:
    (i) The denial in writing;
    (ii) The right to appeal the denial to the Commission in writing; 
and

[[Page 400]]

    (iii) The procedures for appealing the denial.
    (3) Any request for records that has been denied expedited 
processing will be processed in the same manner as a request that did 
not seek expedited processing.
    (f) Where a compelling need is not shown in an expedited request as 
specified in Sec. 3004.41(b)(1), the Commission may grant requests for 
expedited processing at its discretion.



Sec. 3004.44  Appeals.

    (a) The Commission may review any decision of the Secretary or 
Assistant Secretary on its own initiative.
    (b) A requester who seeks to appeal any denial must file an appeal 
with the Commission.
    (c)(1) The Commission will grant or deny the appeal in writing 
within 20 days (excluding Saturdays, Sundays and legal holidays) of the 
date the appeal is received. If on appeal the denial of the request for 
records is upheld, the Commission will notify the requester of the 
provisions for judicial review of that determination pursuant to 5 
U.S.C. 552(c).
    (2) The Commission will expeditiously consider an appeal of a denial 
of expedited processing.



Sec. 3004.45  Extension of response time limit.

    (a) The Commission may extend the time limit for a response at the 
request stage and at the appeal stage up to 10 working days due to 
unusual circumstances as specified in 5 U.S.C. 552(a)(6)(B)(iii).
    (b) The Commission will:
    (1) Notify the requester of any extension and the reason for the 
extension in writing; and
    (2) Provide the requester with an opportunity to limit the scope of 
the request or to arrange an alternative timeframe for processing the 
request or a modified request. The applicable time limits are not tolled 
while the Commission waits for a response from the requester under this 
subsection.



Sec. 3004.50  Fees--definitions as used in this part.

    Commercial use means a request from or on behalf of a person seeking 
information for a use or purpose that furthers the commercial, trade, or 
profit interests of the requester or person on whose behalf the request 
is made. In determining the applicability of this term, the use to which 
a requester will put the document is considered first; where reasonable 
doubt exists as to the use, the Commission may seek clarification before 
assigning the request to a category.
    Direct costs means the expenditures the Commission incurs in 
searching for, duplicating, and, where applicable, reviewing documents 
to respond to a request. They include (without limitation) the salary of 
the employee(s) performing work (the basic pay rate of such employee(s) 
plus 16 percent to cover benefits).
    Duplication means copying the documents necessary to respond to a 
request. Such copies may be paper, microform, audiovisual, or machine-
readable.
    Educational institution means a preschool, a public or private 
elementary or secondary school, an institution of graduate or 
undergraduate higher education, an institution of professional 
education, and an institution of vocational education, which operates a 
program or programs of scholarly research.
    Noncommercial scientific institution means an institution, not 
operated on a commercial basis (as referenced above), which is operated 
solely for the purpose of conducting scientific research whose results 
are not intended to promote any particular product or industry.
    Representative of the news media means any person or entity that 
gathers information of potential interest to a segment of the public, 
uses its editorial skills to turn the raw materials into a distinct 
work, and distributes that work to an audience. The term ``news'' means 
information that is about current events or that would be of current 
interest to the public. Examples of news media entities are television 
or radio stations broadcasting to the public at large and publishers of 
periodicals (but only if such entities qualify as disseminators of 
``news'') who make their products available for purchase or by 
subscription or by free

[[Page 401]]

distribution to the general public. These examples are not all inclusive 
and may include alternate media to disseminate news. A freelance 
journalist shall be regarded as working for a news media entity if the 
journalist can demonstrate a solid basis for expecting publication 
through that entity (e.g., by a publication contract or prior 
publication record), whether or not the journalist is actually employed 
by the entity.
    Review means examining documents located in response to a request to 
determine whether any portion is exempt from disclosure, and processing 
or preparing documents for release, but not determination of general 
legal or policy issues regarding application of exemptions.
    Search includes all time spent looking for material responsive to a 
request, including identification of pages or lines within documents. 
The term covers both manual and computerized searching.



Sec. 3004.51  Fees--request category.

    (a) The level of fee charged depends on the request category.
    (1) Commercial use. A request appearing to be for commercial use 
will be charged the full direct costs of searching for, reviewing, and 
duplicating the records sought.
    (2) Educational and noncommercial scientific institutions. A request 
from an educational or noncommercial scientific institution will be 
charged for the cost of duplication only (excluding charges for the 
first 100 pages). To be eligible for this category, a requester must 
show that the request is made under the auspices of a qualifying 
institution and that the records are not sought for commercial use but 
are in furtherance of scholarly (in the case of educational 
institutions) or scientific (in the case of noncommercial scientific 
institutions) research.
    (3) News media. A request from a representative of the news media 
will be charged the cost of duplication only (excluding charges for the 
first 100 pages).
    (4) Other requesters. A request from any other person will be 
charged the full direct cost of searching for, reviewing, and 
duplicating records responsive to the request, except that the first 100 
pages of duplication and the first 2 hours of search/review will be 
furnished without charge.
    (b) Privacy Act. A request by an individual for his or her own 
records in a system of records will be charged fees as provided under 
the Commission's Privacy Act regulations in part 3003 of this chapter.



Sec. 3004.52  Fees--general provisions.

    (a) The Commission may charge search fees even if no records are 
found or if the records found are exempt from disclosure.
    (b) Except in the case of commercial use requesters, the first 100 
pages of duplication and the first 2 hours of search time are provided 
without charge.
    (1) A page for these purposes is a letter- or legal-size sheet, or 
the equivalent amount of information in a medium other than paper copy.
    (2) Search time for these purposes refers to manual searching; if 
the search is performed by computer, the 2 hours provided without charge 
will be equal to 2 hours' salary of the person performing the search.
    (c) No requester will be charged a fee when the Commission 
determines that the cost of collecting the fee would equal or exceed the 
fee itself. In determining whether cost of collection would equal or 
exceed the fee, the allowance for 2 hours' search or 100 pages of 
duplication will be made before comparing the remaining fee and the cost 
of collection.
    (d) Records will be provided without charge or at a reduced charge 
if disclosure of the information is in the public interest because it is 
likely to contribute significantly to public understanding of the 
operations or activities of the government and is not primarily in the 
commercial interest of the requester.
    (e) No requester will be charged a fee after any search or response 
which occurs after the applicable time limits as described in Sec. Sec. 
3004.43 and 3004.44, so long as there are no unusual or exceptional 
circumstances, such as those used to justify an extension of the time 
limit as described in Sec. 3004.45. The Commission may, however, charge 
fees for

[[Page 402]]

a partial grant of a request while it reviews records that may be exempt 
and may be responsive to the request, if it is made within the 
applicable time limits.



Sec. 3004.53  Fee schedule.

    (a) Fees will be calculated as follows:
    (1) Manual search. At the salary rate (basic pay plus 16 percent) of 
the employee(s) making the search. Search time may be charged for even 
if the Commission fails to locate records or if records located are 
exempt from disclosure.
    (2) Computer search. At the direct cost of providing the search, 
including computer search time directly attributable to searching for 
records responsive to the request runs and employee salary apportionable 
to the search.
    (3) Review (commercial use). At the salary rate (basic pay plus 16 
percent) of the employee(s) conducting the review. Charges are imposed 
only for the review necessary at the initial administrative level to 
determine the applicability of any exemption, and not for review at the 
administrative appeal level of an exemption already applied.
    (4) Duplication. At 10 cents per page for paper copy, which the 
Commission has found to be the reasonable direct cost thereof. For 
copies of records prepared by computer the direct cost of production, 
including employee time, will be charged.
    (5) Additional services. Postage, insurance, and other additional 
services that may be arranged for by the requester will be charged at 
actually incurred cost.
    (b) In addition to the fee waiver provisions of Sec. 3004.52(d), 
fees may be waived at the discretion of the Commission.



Sec. 3004.54  Procedure for assessing and collecting fees.

    (a) Advance payment may be required if the requester failed to pay 
previous bills in a timely fashion or when the fees are likely to exceed 
$250.
    (1) Where the requester has previously failed to pay within 30 days 
of the billing date, the Commission may require the requester to pay an 
advance payment of the estimated fee together with either the past due 
fees (plus applicable interest) or proof that the past fees were paid.
    (2) When advance payment is required, the administrative time limits 
prescribed in 5 U.S.C. 552(a)(6) (Sec. 3004.43) begin only after such 
payment has been received.
    (b) Interest at the rate published by the Secretary of the Treasury 
as prescribed in 31 U.S.C. 3717 will be charged on unpaid fee bills 
starting on the 31st day after the bill was sent. Receipt of a fee by 
the Commission, whether processed or not, will stay the accrual of 
interest.



Sec. 3004.60  Chief Freedom of Information Act Officer.

    The Commission designates the Secretary of the Commission as the 
Chief FOIA Officer. The Chief FOIA Officer shall be responsible for the 
administration of and reporting on the Commission's Freedom of 
Information Act program.



Sec. 3004.61  Freedom of Information Act Public Liaison.

    The Commission designates the Director of the Office of Public 
Affairs and Government Relations or his or her designee as the FOIA 
Public Liaison who shall assist in the resolution of any dispute between 
a requester and the Commission. The FOIA Public Liaison may be contacted 
via e-mail at [email protected] or telephone at 202-789-6800.



Sec. 3004.70  Third-party submission of non-public materials.

    (a) Overlap with treatment of non-public materials. Any person who 
submits materials to the Commission (submitter) that the submitter 
reasonably believes to be exempt from public disclosure may submit 
materials under seal and lodge an application for nonpublic treatment as 
described in Sec. 3007.10 of this chapter.
    (b) Notice of request. Except as provided in Sec. 3004.30(d), if a 
FOIA request seeks materials designated as nonpublic materials, the 
Commission will provide the submitter with notice of the request. The 
Commission may also provide notice when it has reason to

[[Page 403]]

believe that third-party materials possibly exempt from disclosure may 
fall within the scope of any FOIA request.
    (c) Objections to disclosure. A submitter may file written 
objections to the request specifying all grounds for withholding the 
information under FOIA within 7 days of the date of the notice. If the 
submitter fails to respond to the notice, the submitter will be 
considered to have no objection, beyond those objections articulated in 
its application for nonpublic treatment pursuant to Sec. 3007.10 of 
this chapter, to the disclosure of the information.
    (d) Notice of decision. If, after considering the submitter's 
objections to disclosure the Commission decides to disclose the 
information, it will give the submitter written notice of the decision 
and a brief explanation of the reasons for not sustaining the 
submitter's objections. The actual disclosure will not be made before 3 
days after publication of the Commission's decision.



PART 3005_PROCEDURES FOR COMPELLING PRODUCTION OF INFORMATION BY THE 
POSTAL SERVICE--Table of Contents



                            Subpart A	General

Sec.
3005.1 Scope and applicability of other parts of this title.
3005.2 Terms defined for purposes of this part.

                           Subpart B_Subpoenas

3005.11 General rule--subpoenas.
3005.12 Subpoenas issued without receipt of a third-party request.
3005.13 Subpoenas issued in response to a third-party request.
3005.14 Service of subpoenas.
3005.15 Duties in responding to a subpoena.
3005.16 Enforcement of subpoenas.

            Subpart C_Depositions and Written Interrogatories

3005.21 Authority to order depositions and responses to written 
          interrogatories.

Appendix A to Part 3005--Subpoena Form

    Authority: Authority: 39 U.S.C. 503; 504; 3651(c); 3652(d).

    Source: 75 FR 22107, Apr. 27, 2010, unless otherwise noted.



                            Subpart A_General



Sec. 3005.1  Scope and applicability of other parts of this title.

    (a) The rules in this part govern the procedures for compelling the 
production of information by the Postal Service pursuant to 39 U.S.C. 
504(f).
    (b) Part 3001, subpart A, of this chapter applies unless otherwise 
stated in this part or otherwise ordered by the Commission.



Sec. 3005.2  Terms defined for purposes of this part.

    (a) Administrative law judge means an administrative law judge 
appointed by the Commission under 5 U.S.C. 3105.
    (b) Chairman means the Chairman of the Commission.
    (c) Covered person means an officer, employee, agent, or contractor 
of the Postal Service.
    (d) Designated Commissioner means any Commissioner who has been 
designated by the Chairman to act under this part.



                           Subpart B_Subpoenas



Sec. 3005.11  General rule--subpoenas.

    (a) Subject to the provisions of this part, the Chairman, any 
designated Commissioner, and any administrative law judge may issue a 
subpoena to any covered person.
    (b) The written concurrence of a majority of the Commissioners then 
holding office shall be required before any subpoena may be issued under 
this subpart. When duly authorized by a majority of the Commissioners 
then holding office, a subpoena shall be issued by the Chairman, a 
designated Commissioner, or an administrative law judge.
    (c) Subpoenas issued pursuant to this subpart may require the 
attendance and presentation of testimony or the production of 
documentary or other evidence with respect to any proceeding conducted 
by the Commission under title 39 of the United States Code or to obtain 
information for preparation of a report under that title.
    (d) Subpoenas issued pursuant to this subpart shall include such 
conditions as may be necessary or appropriate to

[[Page 404]]

protect a covered person from oppression, or undue burden or expense, 
including the following:
    (1) That disclosure may be had only on specified terms and 
conditions, including the designation of the time or place;
    (2) That certain matters not be inquired into, or that the scope of 
disclosure be limited to certain matters;
    (3) That disclosure occur with no one present except persons 
designated by the Commission;
    (4) That a trade secret or other confidential research, development, 
or commercial information not be revealed or be revealed only in a 
designated way as provided in part 3007 of this chapter; and
    (5) Such other conditions deemed necessary and appropriate under the 
circumstances presented.
    (e) Subpoenas shall be served in the manner provided by Sec. 
3005.14.



Sec. 3005.12  Subpoenas issued without receipt of a third-party request.

    (a) A subpoena duly authorized by a majority of the Commissioners 
then holding office may be issued by the Chairman, a designated 
Commissioner, or an administrative law judge under Sec. 3005.11 without 
a request having been made by a third party under Sec. 3005.13.
    (b) Except as provided in paragraph (c) of this section, a subpoena 
shall not be issued until after the covered person has been provided an 
opportunity to produce the requested information voluntarily.
    (c) A subpoena may be issued summarily without first providing an 
opportunity to produce the requested information voluntarily if a delay 
in the issuance of the subpoena could unreasonably limit or prevent 
production of the information being sought.
    (d) Subpoenas issued under this section shall be issued subject to 
the right of the Postal Service and other interested persons to file a 
motion pursuant to Sec. 3001.21(a) of this chapter to quash the 
subpoena, to limit the scope of the subpoena, or to condition the 
subpoena as provided in Sec. 3005.11(d). Such motion shall include any 
objections to the subpoena that are personal to the covered person 
responsible for providing the information being sought. Motions alleging 
undue burden or cost must state with particularity the basis for such 
claims. Answers to the motion may be filed by any interested person 
pursuant to Sec. 3001.21(b) of this chapter. Pending the resolution of 
any such motion, the covered person shall secure and maintain the 
requested information.



Sec. 3005.13  Subpoenas issued in response to a third-party request.

    (a) Procedure for requesting and issuing subpoenas when hearings 
have been ordered. A participant in any proceeding in which a hearing 
has been ordered by the Commission may request the issuance of a 
subpoena to a covered person pursuant to Sec. 3005.11.
    (1) Subpoenas may be requested to enforce an order to compel 
previously issued pursuant to the rules of practice with which the 
Postal Service has failed to comply.
    (2) Requests for subpoenas under this section shall be made by 
written motion filed with the presiding officer in the manner provided 
in Sec. 3001.21 of this chapter. The Postal Service shall transmit a 
copy of the request to any covered person that it deems likely to be 
affected by the request and shall provide the person requesting the 
subpoena with the name, business address and business phone number of 
the persons to whom the request has been transmitted.
    (3) Answers to the motion may be filed by the Postal Service, by any 
person to whom the Postal Service has transmitted the request, and by 
any other participant. Answers raising objections, including allegations 
of undue burden or cost, must state with particularity the basis for 
such claims. Answers shall be filed as required by Sec. 3001.21(b) of 
this chapter.
    (4) The presiding officer shall forward copies of the motion and any 
responses to the Commission together with a recommendation of whether or 
not the requested subpoena should be issued and, if so, the scope and 
content thereof and conditions, if any, that should be placed on the 
subpoena. Copies of the presiding officer's recommendation shall be 
served in accordance with Sec. 3001.12 of this chapter.
    (5) Following receipt of the materials forwarded by the presiding 
officer, the

[[Page 405]]

Commissioners shall determine whether the requested subpoena should be 
issued and, if so, whether any conditions should be placed on the scope 
or content of the subpoena or on the responses to the subpoena. The 
Commissioners may, but are not required, to entertain further oral or 
written submissions from the Postal Service or the participants before 
acting on the request. In making their determination, the Commissioners 
are not bound by any recommendation of a presiding officer.
    (b) Procedure for requesting and issuing subpoenas when no hearings 
have been ordered. Any person may request the issuance of a subpoena to 
a covered person pursuant to Sec. 3005.11 to enforce an information 
request issued by the Commission or a Commissioner even though no 
hearings have been ordered by the Commission.
    (1) A request for the issuance of a subpoena shall be made by motion 
as provided by Sec. 3001.21 of this chapter. A copy of the request 
shall be served upon the Postal Service as provided by Sec. 3001.12 of 
this chapter and by forwarding a copy to the General Counsel of the 
Postal Service, or such other person authorized to receive process by 
personal service, by Express Mail or Priority Mail, or by First-Class 
Mail, Return Receipt requested. The Postal Service shall transmit a copy 
of the request to any covered person that it deems likely to be affected 
by the request and shall provide the person requesting the subpoena with 
the name, business address and business phone number of the persons to 
whom the request has been transmitted. Proof of service of the request 
shall be filed with the Secretary by the person requesting the subpoena. 
The Secretary shall issue a notice of the filing of proof of service and 
the deadline for filing answers to the request.
    (2) Answers to the motion may be filed by the Postal Service, by any 
person to whom the Postal Service has transmitted the request, and by 
any other person. Answers raising objections, including allegations of 
undue burden or cost, must state with particularity the basis for such 
claims. Answers shall be filed as required by Sec. 3001.21(b) of this 
chapter.
    (3) Following receipt of the request and any answers to the request, 
the Commissioners shall determine whether the requested subpoena should 
be issued and, if so, whether any conditions should be placed on the 
scope or content of the subpoena or on the responses to the subpoena. 
The Commissioners may, but are not required, to entertain further oral 
or written submissions before acting. A majority of the Commissioners 
then holding office must concur in writing before a subpoena may be 
issued.
    (c) Contents of requests for subpoenas. Each motion requesting the 
issuance of a subpoena shall include the following:
    (1) A demonstration that the subpoena is being requested with 
respect to a proceeding conducted by the Commission under title 39 of 
the United States Code or that the purpose of the subpoena is to obtain 
information to be used by the Commission to prepare a report under title 
39 of the United States Code;
    (2) A showing of the relevance and materiality of the testimony, 
documentary or other evidence being sought;
    (3) Specification with particularity of any books, papers, 
documents, writings, drawings, graphs, charts, photographs, sound 
recordings, images, or other data or data compilations stored in any 
medium from which information can be obtained, including, without 
limitation, electronically stored information which is being sought from 
the covered person;
    (4) In situations in which a hearing has been ordered, the request 
must include in addition to the information required by paragraphs 
(c)(1), (2) and (3) of this section, a certification that the covered 
person has failed to comply with an order compelling discovery 
previously issued pursuant to the Commission's rules of practice; and
    (5) In situations in which a hearing has not been ordered, the 
request must include in addition to the information required by 
paragraphs (c)(1), (2) and (3) of this section, an explanation of the 
reason for the request and the purposes for which the appearance, 
testimony, documentary or other evidence is being sought, and a 
certification that the Postal Service has failed to comply

[[Page 406]]

with a previously issued Commission order or information request.



Sec. 3005.14  Service of subpoenas.

    (a) Manner of service--(1) Existing Postal Service officers and 
employees. In addition to electronic service as provided by Sec. 
3001.12(a) of this chapter, subpoenas directed to existing Postal 
Service officers and employees must be served by personal service upon 
the General Counsel of the Postal Service or upon such other 
representative of the Postal Service as is authorized to receive 
process. Upon receipt, the subpoena shall be transmitted and delivered 
by the Postal Service to the existing officers and employees responsible 
for providing the information being sought by the subpoena. Subpoenas 
served upon the Postal Service and transmitted to Postal Service 
officers and employees shall be accompanied by a written notice of the 
return date of the subpoena.
    (2) Existing Postal Service agents and contractors. In addition to 
electronic service as provided by Sec. 3001.12(a) of this chapter, 
subpoenas directed to existing Postal Service agents and contractors 
must be served by personal service upon the General Counsel of the 
Postal Service or upon such other representative of the Postal Service 
as is authorized to receive process. Upon receipt, the subpoena shall be 
transmitted and delivered by the Postal Service to existing agents and 
contractors responsible for providing the information being sought by 
the subpoena. Service upon such agents and contractors shall be 
accompanied by a written notice of the return date of the subpoena.
    (3) Prior Postal Service officers, employees, agents, and 
contractors. Subpoenas directed to Postal Service officers, employees, 
agents, and contractors who, at the time the subpoena is issued, are no 
longer officers or employees of the Postal Service or are no longer 
agents or contractors in an existing agency or contract relationship 
with the Postal Service, must be served by personal service. Service 
upon such officers, employees, agents, or contractors shall be 
accompanied by a written notice of the return date of the subpoena.
    (4) Service arrangements. Arrangements for service upon the Postal 
Service under Sec. Sec. 3001.14(a)(1) or 14(a)(2) of this chapter or 
upon former Postal Service officers, employees, agents, or contractors 
under Sec. 3001.14(a)(3) of this chapter shall be arranged either by 
the Commission or by the third party who requested issuance of the 
subpoena.
    (b) Return of service and proof of transmission. (1) Return of 
service. Proof of service under Sec. 3001.14(a) of this chapter must be 
filed with the Secretary within 2 business days following service, 
unless a shorter or longer period is ordered by the Commission, and must 
be accompanied by certifications of:
    (i) The manner, date, and time of delivery of the subpoena;
    (ii) The name, business address, telephone number, and e-mail 
address of the perseon upon whom the subpoena was served; and
    (iii) The return date of the subpoena.
    (2) Proof of transmission. The Postal Service shall within 2 
business days of transmission of a subpoena by the Postal Service to an 
existing Postal Service officer, employee, agent, or contractor pursuant 
to Sec. Sec. 3001.14(a)(i) or (ii) of this chapter, or such shorter or 
longer period ordered by the Commission, file with the Secretary a 
certification of:
    (i) The manner, date, and time of delivery of the subpoena;
    (ii) The name, business address, telephone number, and e-mail 
address of the person to whom the subpoena was transmitted; and
    (iii) The return date of the subpoena.
    (c) Notice of service, proof of transmission, and return date. The 
Secretary shall post a notice of service and proof of transmission upon 
the Commission's Web site which specifies the return date of the 
subpoena.



Sec. 3005.15  Duties in responding to a subpoena.

    (a) A covered person responding to a subpoena to produce documents 
shall produce them as they are kept in the usual course of business or 
shall organize and label them to correspond with the categories in the 
subpoena.
    (b) If a subpoena does not specify the form or forms for producing 
electronically stored information, a covered

[[Page 407]]

person responding to a subpoena must produce the information in a form 
or forms in which the covered person ordinarily maintains it or in a 
form or forms that are reasonably usable.
    (c) A covered person responding to a subpoena need not produce the 
same electronically stored information in more than one form.
    (d) A covered person commanded to produce and permit inspection or 
copying of designated electronically stored information, books, papers, 
or documents need not appear in person at the place of production or 
inspection unless commanded to appear for deposition, hearing, or trial.
    (e) A covered person who fails or refuses to disclose or provide 
discovery of information on the grounds that the information is 
privileged or subject to protection as a trade secret or other 
confidential research, development, or commercial information must 
expressly support all such claims and shall provide a description of the 
nature of the information and the potential harm that is sufficient to 
enable the Commission to evaluate and determine the propriety of the 
claim.
    (f) Request for confidential treatment of information shall be made 
in accordance with part 3007 of this chapter.



Sec. 3005.16  Enforcement of subpoenas.

    In the case of contumacy or failure to obey a subpoena issued under 
this subpart, the Commission may apply for an order to enforce its 
subpoena as permitted by 39 U.S.C. 504(f)(3).



            Subpart C_Depositions and Written Interrogatories



Sec. 3005.21  Authority to order depositions and responses to written
interrogatories.

    The Chairman, any designated Commissioner, or any administrative law 
judge may order the taking of depositions and responses to written 
interrogatories by a covered person with respect to any proceeding 
conducted under title 39 of the United States Code or to obtain 
information to be used to prepare a report under that title.

[[Page 408]]



               Sec. Appendix A to Part 3005--Subpoena Form
[GRAPHIC] [TIFF OMITTED] TR27AP10.000


[[Page 409]]


[GRAPHIC] [TIFF OMITTED] TR27AP10.001



PART 3007_TREATMENT OF NON-PUBLIC MATERIALS PROVIDED BY THE POSTAL 
SERVICE--Table of Contents



Sec.
3007.1 Definitions for purposes of this part.
3007.2 Scope.
3007.3 Data or information requests.
3007.10 Submission of non-public materials under seal.
3007.20 Application for non-public treatment.
3007.21 Content of the Postal Service application for non-public 
          treatment.
3007.22 Content of third-party application for non-public treatment.
3007.23 Treatment of non-public materials.
3007.24 Commission access to non-public materials.
3007.25 Use of non-public materials.
3007.30 Termination of non-public status.
3007.31 Request for early termination of non-public status.
3007.32 Preliminary determination of non-public status.
3007.33 Standard for decision for early termination of non-public 
          status.
3007.40 Request for access to non-public materials.
3007.41 Termination of access to non-public materials.
3007.42 Standard for decision for request for access to non-public 
          materials.
3007.50 Request for access to non-public materials relevant to 
          compliance.
3007.51 Termination of access to non-public materials relevant to 
          compliance.
3007.52 Standard for decision for request for access to non-public 
          materials relevant to compliance.
3007.60 Limitations on access to non-public materials.
3007.61 Continued effectiveness of protective conditions.
3007.62 Sanctions for violations of protective conditions.

Appendix A to Part 3007--Statement of Compliance with Protective 
          Conditions

    Authority: 39 U.S.C. 503, 504.

    Source: 74 FR 30943, June 29, 2009, unless otherwise noted.



Sec. 3007.1  Definitions for purposes of this part.

    (a) Authorized representative means any Commissioner designated by 
the Chairman, any administrative law judge appointed by the Commission 
under 5 U.S.C. 3105, and any employee of the Commission designated by 
the Commission. The authorized representative may administer oaths, 
examine witnesses, take depositions, and receive evidence with respect 
to any proceeding before the Commission under title 39 of the U.S. Code 
or obtain information to assist the Commission in the preparation of a 
report or performance of a function under title 39 of the U.S. Code.
    (b) Non-public materials means any information, documents, and 
things filed with the Commission which are claimed to be exempt from 
disclosure by the Postal Service pursuant to 39 U.S.C. 504(g), 3652(f) 
or 3654(f), or claimed to be protectable under Federal Rule of Civil 
Procedure 26(c) by a third party with a proprietary interest in the 
materials. Non-public materials cease to be non-public if the status has 
expired or been terminated by the Commission pursuant to this part.



Sec. 3007.2  Scope.

    The Commission or its authorized representative may require the 
Postal Service to provide any information, documents, and things in its 
possession or control, or any information, documents, and things that it 
can obtain through reasonable effort and expense, that are likely to 
materially assist the Commission in its conduct of proceedings, in its 
preparation of reports,

[[Page 410]]

or in performance of its functions under title 39 of the U.S. Code. 
Information, documents, and things the Postal Service may be required to 
provide, include, but are not limited to, paper hard copy and 
electronically stored data and materials--including writings, notes, e-
mails, drawings, graphs, charts, photographs, sound recordings, images, 
and other data or data compilations--stored in any medium from which 
information can be obtained either directly or, if necessary, after 
translation into a reasonably usable form; or any tangible things.



Sec. 3007.3  Data or information requests.

    (a) The Commission or its authorized representative may issue data 
or information requests to the Postal Service seeking information, 
documents, and things covered by Sec. 3007.2. A data or information 
request shall describe the documents, information, and things sought, 
briefly explain the reason for the request, and specify a timeframe for 
receiving the requested information and materials.
    (b) The Commission or its authorized representative may issue data 
or information requests to third parties seeking any information, 
document or thing. A data information request shall describe the 
documents, information and things sought, briefly explain the reason for 
the request, and specify a timeframe for receiving the requested 
materials.
    (c) Any person may request that the Commission issue a data or 
information request by filing a motion with the Commission, pursuant to 
Sec. 3001.21 of this chapter, which describes the documents, 
information, and things sought, explains the reasons the Commission 
should make the request, and includes a statement of how the materials 
sought are relevant and material to the Commission's duties under title 
39 of the U.S. Code.



Sec. 3007.10  Submission of non-public materials under seal.

    (a) Non-public materials shall not be filed electronically pursuant 
to Sec. 3001.9 of this chapter, but shall be filed in sealed envelopes 
clearly marked ``Confidential. Do Not Post on Web.'' The person filing 
the non-public materials shall submit two copies consisting, where 
practicable, of two paper hard copies as well as two copies in easily 
usable electronic form such as compact discs (CDs) or digital video 
discs (DVDs) of the non-public materials which shall also be clearly 
marked ``Confidential. Do Not Post on Web.'' Spreadsheets submitted in 
electronic form shall display the formulas used, their links to related 
spreadsheets, and shall not be password protected. All workpapers or 
data shall be submitted in a form, and be accompanied by sufficient 
explanation and documentation to allow them to be replicated using a 
publicly available PC application. Each page of any paper hard copy non-
public materials submitted shall be clearly marked as non-public.
    (b) The person submitting the non-public materials shall also file 
an electronic public (redacted) copy of the non-public materials 
pursuant to Sec. 3001.9 of this chapter. The electronic public 
(redacted) copy of the materials which are not spreadsheets, data files, 
or programs must be submitted in a searchable electronic format, but 
need not be submitted in its native format. As part of its publicly 
available electronic filing, the Postal Service must appropriately 
redact materials that contain both public and non-public information. 
For example, the Postal Service may not identify a whole page or a whole 
table as non-public materials if the page or table contains both public 
and non-public information, but must redact only the information it 
claims to be non-public. If practicable, the Postal Service shall 
sequentially number each page of the materials identified as non-public.
    (c) The Postal Service or third party shall use the graphical 
redaction (blackout) method for all redacted materials. Should the 
Postal Service wish to use any other method, it must state with 
particularity the competitive harm associated with use of the graphical 
redaction method to justify the use of any other method, and indicate 
the number of lines or pages removed at each redaction.
    (d) The Postal Service or third party shall mark each page, item, 
and thing,

[[Page 411]]

or portion thereof, that it seeks to protect from disclosure in a manner 
reasonably calculated to alert custodians to the confidential nature of 
the information or materials.



Sec. 3007.20  Application for non-public treatment.

    (a) Whenever the Postal Service files non-public materials with the 
Commission, it shall at the same time file an application for non-public 
treatment under Sec. 3007.21.
    (b) Before the Postal Service files non-public materials with the 
Commission which the Postal Service has reason to believe may implicate 
a third-party proprietary interest, the Postal Service shall inform each 
such third party:
    (1) Of the nature and scope of the filing with the Commission, 
including the pertinent docket, and
    (2) That it may address its confidentiality concerns directly with 
the Commission.
    (c) A third party with a proprietary interest in the materials may, 
if it deems necessary, independently seek non-public treatment under 
Sec. 3007.22.



Sec. 3007.21  Content of the Postal Service application for non-public 
treatment.

    (a) Whenever the Postal Service files non-public materials with the 
Commission, it must submit an application for non-public treatment that 
clearly identifies all non-public materials and describes the 
circumstances causing them to be submitted to the Commission.
    (b) An application for non-public treatment is to fulfill the burden 
of persuasion that the non-public materials should be withheld from the 
public.
    (c) The application for non-public treatment must include a specific 
and detailed statement setting forth:
    (1) The rationale for claiming that the materials are non-public, 
including the specific statutory basis for the claim, and a statement 
justifying application of the provision(s);
    (2) Identification, including name, phone number, and e-mail address 
for any third party who is known to have a proprietary interest in the 
materials, or if such an identification is sensitive, contact 
information for a Postal Service employee who shall provide notice to 
that third party;
    (3) A description of the materials claimed to be non-public in a 
manner that, without revealing the materials at issue, would allow a 
person to thoroughly evaluate the basis for the claim that they are non-
public;
    (4) Particular identification of the nature and extent of commercial 
harm alleged and the likelihood of such harm;
    (5) At least one specific hypothetical, illustrative example of each 
alleged harm;
    (6) The extent of protection from public disclosure deemed to be 
necessary;
    (7) The length of time deemed necessary for the non-public materials 
to be protected from public disclosure with justification thereof; and
    (8) Any other factors or reasons relevant to support the 
application.



Sec. 3007.22  Content of third-party application for non-public treatment.

    (a) The application for relief from public disclosure submitted by a 
party other than the Postal Service must clearly identify all materials 
believed to be protected from disclosure.
    (b) The application for non-public treatment must include a specific 
and detailed statement setting forth:
    (1) A description of the materials claimed to be non-public in a 
manner that, without revealing the materials at issue, would allow a 
person to thoroughly evaluate the basis for the claim that they are non-
public;
    (2) Particular identification of the nature and extent of the harm 
alleged and the likelihood of such harm; and
    (3) Any other factors or reasons relevant to support the 
application.



Sec. 3007.23  Treatment of non-public materials.

    The Commission or its authorized representative will not publicly 
disclose or grant access to non-public materials except as provided in 
the rules of this part.

[[Page 412]]



Sec. 3007.24  Commission and court access to non-public materials.

    (a) Non-public materials may be disclosed to the following persons:
    (1) Members of the Commission;
    (2) Commission employees including public representatives carrying 
out their appropriate responsibilities;
    (3) Contractors, attorneys, or other subject matter experts 
assisting the Commission in carrying out its statutory duties;
    (4) Reviewing courts and their staffs; or
    (5) Court reporters, stenographers, or persons operating audio or 
video recording equipment for such court reporters or stenographers at 
hearings or depositions.
    (b) Access to non-public materials for all persons not covered by 
this section is pursuant to Sec. Sec. 3007.40 and 3007.50.



Sec. 3007.25  Use of non-public materials.

    Except as pursuant to this part, persons with access to non-public 
materials under Sec. 3007.24 may not:
    (a) Use such materials for purposes other than the purposes for 
which they are supplied.
    (b) Permit anyone who is not allowed access under Sec. 3007.24 to 
have access to any such materials.



Sec. 3007.30  Termination of non-public status.

    Ten years after the date of filing with the Commission, non-public 
materials shall lose non-public status unless the Commission or its 
authorized representative enters an order extending the duration of that 
status.



Sec. 3007.31  Request for early termination of non-public status.

    (a) Any person may make a request to the Commission that non-public 
materials be publicly disclosed. Each such request shall provide a 
specific and detailed statement justifying why the non-public materials 
should be made public, giving specific recognition to any pertinent 
rationale(s) provided in the application for relief submitted pursuant 
to Sec. 3007.21 or Sec. 3007.22. The request, however, shall not 
publicly disclose any of the non-public materials. If it is necessary to 
use the non-public materials to formulate the argument in favor of 
public disclosure, the argument utilizing the non-public materials shall 
be filed under seal.
    (b) Any interested person, including the Postal Service, may file a 
response to the request within 7 days after such a request is filed, 
unless a longer period is specified by the Commission.
    (c) Unless the Commission otherwise provides, no reply to a response 
filed pursuant to paragraph (a) of this section shall be filed.
    (d) Following the filing of responses, if any, the Commission will 
issue an order determining the appropriate degree of protection, if any, 
to be accorded to the materials claimed to be non-public by the Postal 
Service or third party with a proprietary interest in the materials.



Sec. 3007.32  Preliminary determination of non-public status.

    (a) Whenever the Postal Service files non-public materials, the 
Commission may issue a notice of preliminary determination concerning 
the appropriate degree of protection, if any, to be accorded to such 
materials.
    (b) Any interested person, including the Postal Service, may file a 
response to the Commission's notice of preliminary determination within 
7 days after such a notice is filed, unless a longer period is 
specified.
    (c) Unless the Commission otherwise provides, no reply to a response 
filed pursuant to paragraph (b) of this section shall be filed.
    (d) Following the filing of responses, if any, the Commission will 
issue an order determining the appropriate degree of protection, if any, 
to be accorded to the materials claimed to be non-public by the Postal 
Service or third party with a proprietary interest in the materials.



Sec. 3007.33  Standard for decision for early termination of non-public
status.

    (a) In determining whether to publicly disclose non-public materials 
filed by the Postal Service, the Commission shall balance the nature and 
extent of the likely commercial injury identified

[[Page 413]]

by the Postal Service against the public interest in maintaining the 
financial transparency of a government entity competing in commercial 
markets.
    (b) In determining whether to publicly disclose non-public materials 
in which the Commission determines a third party has a proprietary 
interest, the Commission shall balance the interests of the parties 
based on Federal Rule of Civil Procedure 26(c).



Sec. 3007.40  Request for access to non-public materials.

    (a) During a Commission proceeding, any person may file a motion 
pursuant to Sec. 3001.21 of this chapter requesting access to non-
public materials. The motion shall include:
    (1) A detailed statement providing justification for access; and
    (2) A list of relevant affiliations, including employment or other 
relationship (including agent, consultant or contractor) with the party 
requesting access, and whether that party is affiliated with the 
delivery services, communications or mailing industries.
    (b) To expedite the process, each person seeking access to non-
public materials may attach to the motion an executed copy of protective 
conditions such as those provided in Appendix A of this part.
    (1) If an executed copy of protective conditions is attached and if 
actual notice of the motion has been provided by conversation or e-mail 
exchange to all persons identified by the Postal Service under Sec. 
3007.2(c), answers are due within 3 days after such a motion is filed.
    (2) In all other circumstances, answers are due within 7 days after 
such a motion is filed.
    (c) Unless the Commission otherwise provides, no reply to an answer 
filed pursuant to paragraph (b)(1) or paragraph (b)(2) of this section 
shall be filed.
    (d) Following the filing of answers, if any:
    (1) The Commission will issue an order allowing or denying access 
and setting forth the appropriate protective conditions, if any, to be 
accorded non-public materials, or
    (2) If the Postal Service or third party with a proprietary interest 
does not contest a person's access subject to agreed protective 
conditions, the Commission or its authorized representative may issue an 
order allowing access subject to the agreed protective conditions.



Sec. 3007.41  Termination of access to non-public materials.

    (a) Except as provided in paragraph (b) of this section, access to 
non-public materials obtained under Sec. 3007.40 terminates either when 
the Commission issues a final order or report in the relevant proceeding 
or the person withdraws or is otherwise no longer involved in the 
proceeding, whichever occurs first. For purposes of this section, an 
order or report is not considered final until after the possibility of 
judicial review expires.
    (b) Access to non-public materials shall continue for persons 
seeking continued access under Sec. 3007.50.
    (c) Upon termination of access under paragraph (a) of this section, 
all non-public materials in a person's possession must be destroyed, and 
the form attached to the protective conditions certifying destruction 
must be executed and filed with the Commission.



Sec. 3007.42  Standard for decision for request for access to non-public 
materials.

    In determining whether to grant a request for access to non-public 
materials, the Commission shall balance the interests of the parties 
based on Federal Rule of Civil Procedure 26(c).



Sec. 3007.50  Request for access to non-public materials relevant to 
compliance.

    (a) Any person may file a motion pursuant to Sec. 3001.21 of this 
chapter requesting access to, or continued access to, non-public 
materials relevant to compliance under 39 U.S.C. 3653. The motion shall 
include:
    (1) A detailed statement providing justification for access, 
including reference to the materials' relevance to compliance under 
chapter 36 of title 39 of the U.S. Code; and
    (2) A list of relevant affiliations, including employment or other 
relationship (including agent, consultant or contractor) with the party 
requesting

[[Page 414]]

access, and whether that party is affiliated with the delivery services, 
communications or mailing industries.
    (b) To expedite the process, each person seeking access to non-
public materials may attach to the motion an executed copy of protective 
conditions such as those provided in Appendix A of this part.
    (1) If an executed copy of protective conditions is attached and if 
actual notice of the motion has been provided by conversation or e-mail 
exchange to all persons identified by the Postal Service under Sec. 
3007.21(c), answers are due within 3 days after such a motion is filed.
    (2) In all other circumstances, answers are due within 7 days after 
such a motion is filed.
    (c) Unless the Commission otherwise provides, no reply to an answer 
filed pursuant to paragraph (b)(1) or paragraph (b)(2) of this section 
shall be filed.
    (d) Following the filing of answers, if any:
    (1) The Commission will issue an order allowing or denying access 
and setting forth the appropriate protective conditions, if any, to be 
accorded the non-public materials, or
    (2) If the Postal Service or third party with a proprietary interest 
does not contest a person's access subject to agreed protective 
conditions, the Commission or its authorized representative may issue an 
order allowing access subject to the agreed protective conditions.



Sec. 3007.51  Termination of access to non-public materials relevant to 
compliance.

    (a) Access to non-public materials obtained under Sec. 3007.50 
terminates either when the Commission issues its next Annual Compliance 
Determination (ACD) or the person withdraws or is otherwise no longer 
involved in the relevant proceeding, whichever occurs first.
    (b) Access to non-public materials shall continue for persons 
seeking continued access under Sec. 3007.50.
    (c) Upon termination of access under paragraph (a) of this section, 
all non-public materials in a person's possession must be destroyed, and 
the form attached to the protective conditions certifying destruction 
must be executed and filed with the Commission.



Sec. 3007.52  Standard for decision for request for access to non-public 
materials relevant to compliance.

    In determining whether to grant a request for access to non-public 
materials relevant to compliance, the Commission shall balance the 
interests of the parties based on Federal Rule of Civil Procedure 26(c).



Sec. 3007.60  Limitations on access to non-public materials.

    To afford appropriate confidentiality to non-public materials during 
any stage of a proceeding before the Commission, or in connection with 
any other purpose under title 39 of the U.S. Code, the Commission may, 
based on Federal Rule of Civil Procedure 26(c):
    (a) Prohibit the public disclosure of the non-public materials;
    (b) Specify terms for public disclosure of the non-public materials;
    (c) Order a specific method for disclosing the non-public materials;
    (d) Restrict the scope of the disclosure of the non-public materials 
as they relate to certain matters;
    (e) Restrict who may have access to non-public materials;
    (f) Require that a trade secret be revealed only in a specific and 
limited manner or to limited or specified persons; and
    (g) Order other relief as appropriate including, but not limited to, 
sealing a deposition or part of a proceeding.



Sec. 3007.61  Continued effectiveness of protective conditions.

    (a) If a court or other administrative agency issues a subpoena or 
orders production of non-public materials which a person has obtained 
under protective conditions ordered by the Commission, the target of the 
subpoena or order shall, within 2 days of receipt of the subpoena or 
order for production, notify the Postal Service of the pendency of the 
subpoena or order to allow the Postal Service time to object to the 
production or to seek a protective order or seek such other relief as it 
deems appropriate.

[[Page 415]]

    (b) Any person seeking to disclose non-public materials shall make a 
good faith effort to obtain protective conditions at least as effective 
as those set forth in the Commission order establishing the protective 
conditions.
    (c) Protective conditions ordered by the Commission or its 
authorized representative shall remain in effect throughout any 
subsequent review unless overridden by the action of the reviewing 
court.



Sec. 3007.62  Sanctions for violations of protective conditions.

    (a) No person who has been granted access to materials subject to 
protective conditions shall disseminate the materials in whole or in 
part to any person not authorized to obtain access under the protective 
conditions imposed by the Commission. If a person who has been granted 
access to such non-public materials under a protective order violates 
the terms of such order, the Commission or its authorized representative 
shall impose sanctions on the person who violated the protective order 
or the individuals or entities on whose behalf the person was acting, or 
both. The sanctions may include:
    (1) Dismissing the proceeding in whole or in part;
    (2) Ruling by default against the person who violated the protective 
order; and
    (3) Such other sanctions as the Commission or its authorized 
representative deems appropriate.
    (b) The Postal Service, in its discretion, may pursue any remedies 
available to it under the law against the individual who violated the 
protective order, or the individuals or entities on whose behalf the 
person was acting, or both.

[[Page 416]]



 Sec. Appendix A to Part 3007--Statement of Compliance with Protective 
                               Conditions
[GRAPHIC] [TIFF OMITTED] TR29JN09.013


[[Page 417]]


[GRAPHIC] [TIFF OMITTED] TR29JN09.014


[[Page 418]]


[GRAPHIC] [TIFF OMITTED] TR29JN09.015


[[Page 419]]


[GRAPHIC] [TIFF OMITTED] TR29JN09.016



PART 3010_REGULATION OF RATES FOR MARKET DOMINANT PRODUCTS--Table of 
Contents



                      Subpart A_General Provisions

Sec.
3010.1 Applicability.
3010.2 Types of rate adjustments for market dominant products.
3010.3 Type 1-A rate adjustment--in general.
3010.4 Type 1-B rate adjustment--in general.
3010.5 Type 2 rate adjustment--in general.
3010.6 Type 3 rate adjustment--in general.
3010.7 Schedule of regular rate changes.

Subpart B_Rules for Rate Adjustments for Rates of General Applicability 
                   (Type 1	A and 1	B Rate Adjustments)

3010.10 Procedures.
3010.11 Limit on size of rate increases.
3010.12 Source of CPI-U data for purposes of annual limitation.
3010.13 Proceedings for Type 1-A and Type 1-B rate adjustment filings.
3010.14 Contents of notice of rate adjustment.

               Subpart C_Rules for Applying the Price Cap

3010.20 Test for compliance with the annual limitation.
3010.21 Calculation of annual limitation.
3010.22 Calculation of less than annual limitation.
3010.23 Calculation of percentage change in rates.
3010.24 Treatment of volume associated with negotiated service 
          agreements.
3010.25 Limitation on unused rate adjustment authority rate adjustments.
3010.26 Calculation of unused rate adjustment authority.
3010.27 Application of unused rate adjustment authority.
3010.28 Maximum size of unused rate adjustment authority rate 
          adjustments.
3010.29 Transition rule.

 Subpart D_Rules for Rate Adjustments for Negotiated Service Agreements 
                        (Type 2 Rate Adjustments)

3010.40 Negotiated service agreements.

[[Page 420]]

3010.41 Procedures.
3010.42 Contents of notice of agreement in support of a negotiated 
          service agreement.
3010.43 Data collection plan.
3010.44 Proceedings for Type 2 rate adjustments.

 Subpart E_Rules for Rate Adjustments for Exigent Circumstances (Type 3 
                            Rate Adjustments)

3010.60 Applicability.
3010.61 Contents of exigent requests.
3010.62 Supplemental information.
3010.63 Treatment of unused rate adjustment authority.
3010.64 Expeditious treatment of exigent requests.
3010.65 Special procedures applicable to exigent requests.
3010.66 Deadline for Commission decision.

    Authority: 39 U.S.C. 503; 3622.

    Source: 72 FR 63691, Nov. 9, 2007, unless otherwise noted.



                      Subpart A_General Provisions



Sec. 3010.1  Applicability.

    The rules in this part implement provisions in the Postal 
Accountability and Enhancement Act (PAEA) establishing ratesetting 
policies and procedures for market dominant products. With the exception 
of exigency-based rate adjustments, these procedures allow a minimum of 
45 days for advance public notice of the Postal Service's planned rate 
adjustments. Exigency-based rate adjustments require the Postal Service 
to file a formal request with the Commission and are subject to special 
procedures.



Sec. 3010.2  Types of rate adjustments for market dominant products.

    (a) There are four types of rate adjustments for market dominant 
products. A Type 1-A rate adjustment, authorized under 39 U.S.C. 
3622(d)(1)(D), is based on the statutory annual limitation. A Type 1-B 
rate adjustment, authorized under 39 U.S.C. 3622(d)(2)(C), is based on 
an exception to the annual limitation, and is referred to as unused rate 
adjustment authority. A Type 2 rate adjustment, authorized under 39 
U.S.C. 3622(c)(10), is based on a negotiated service agreement. A Type 3 
rate adjustment, authorized under 39 U.S.C. 3622(d)(1)(E), is based on 
exigent circumstances.
    (b) Upon the establishment of unused rate adjustment authority in 
any class, the Postal Service shall devise and maintain a schedule that 
tracks the establishment and subsequent use of unused rate adjustment 
authority.
    (c) The Postal Service may combine Types 1-A, 1-B and 2 rate 
adjustments for purposes of filing with the Commission.



Sec. 3010.3  Type 1-A rate adjustment--in general.

    (a) A Type 1-A rate adjustment represents the usual type of 
adjustment to rates of general applicability.
    (b) A Type 1-A rate adjustment may result in a rate adjustment that 
is less than or equal to the annual limitation, but may not exceed the 
annual limitation.
    (c) A Type 1-A rate adjustment for any class that is less than the 
applicable change in CPI-U results in unused rate adjustment authority 
associated with that class. Part or all of the unused rate adjustment 
authority may be used in a subsequent adjustment for that class, subject 
to the expiration terms in Sec. 3010.26(d).



Sec. 3010.4  Type 1-B rate adjustment--in general.

    (a) A Type 1-B rate adjustment is a rate adjustment which uses 
unused rate adjustment authority in whole or in part. A rate adjustment 
using unused rate adjustment authority may not result in an increase for 
the class that exceeds the applicable annual limitation plus 2 
percentage points.
    (b) Type 1-B rate adjustments filed within 12 months of each other 
may not apply more than 2 percentage points of unused rate authority to 
any class.
    (c) Unused rate adjustment authority in each class may be applied to 
rate adjustments in the same class for up to 5 years.



Sec. 3010.5  Type 2 rate adjustment--in general.

    A negotiated service agreement rate adjustment entails a rate 
adjustment negotiated between the Postal Service and a customer or group 
of customers.

[[Page 421]]



Sec. 3010.6  Type 3 adjustment--in general.

    (a) A Type 3 rate adjustment is a request for an exigency-based rate 
adjustment. It is authorized only when justified by exceptional or 
extraordinary circumstances.
    (b) An exigency-based rate adjustment is not subject to the 
inflation-based limitation or the restrictions on the use of unused rate 
adjustment authority, and does not implement a negotiated service 
agreement.
    (c) A Postal Service request for a Type 3 rate adjustment is subject 
to public participation and Commission review within 90 days.



Sec. 3010.7  Schedule of regular rate changes.

    (a) The Postal Service shall maintain on file with the Commission a 
Schedule for Regular and Predictable Rate Changes. The Commission shall 
display the Schedule for Regular and Predictable Rate Changes on the 
Commission Web site, http:// www.prc.gov.
    (b) The Schedule for Regular and Predictable Rate Changes shall 
provide mailers with estimated implementation dates for future Type 1-A 
rate changes for each separate class of mail, should such changes be 
necessary and appropriate. Rate changes will be scheduled at specified 
regular intervals.
    (c) The Schedule for Regular and Predictable Rate Changes shall 
provide an explanation that will allow mailers to predict with 
reasonable accuracy the amounts of future scheduled rate changes.
    (d) The initial Schedule for Regular and Predictable Rate Changes 
must be filed within 90 days of the effective date of this rule. The 
Postal Service should balance its financial and operational needs with 
the convenience of mailers of each class of mail in developing the 
schedule.
    (e) Whenever the Postal Service deems it appropriate to change the 
Schedule for Regular and Predictable Rate Changes, it shall file a 
revised schedule and explanation with the Commission.
    (f) The Postal Service may, for good cause shown, vary rate 
adjustments from those estimated by the Schedule for Regular and 
Predictable Rate Changes. In such case, the Postal Service should 
provide a succinct explanation for such variation with its Type 1-A 
filing. No explanation is required for changes involving smaller than 
predicted rate adjustments.



Subpart B_Rules for Rate Adjustments for Rates of General Applicability 
                   (Type 1	A and 1	B Rate Adjustments)



Sec. 3010.10  Procedures.

    (a) The Postal Service, in every instance in which it determines to 
exercise its statutory authority to make a Type 1-A or Type 1-B rate 
adjustment for a market dominant postal product shall:
    (1) Provide public notice in a manner reasonably designed to inform 
the mailing community and the general public that it intends to change 
rates not later than 45 days prior to the intended implementation date; 
and
    (2) Transmit a notice of rate adjustment to the Commission no later 
than 45 days prior to the intended implementation date.
    (b) The Postal Service is encouraged to provide public notice and to 
submit its notice of rate adjustment as far in advance of the 45-day 
minimum as practicable, especially in instances where the intended price 
changes include classification changes or operations changes likely to 
have material impact on mailers.



Sec. 3010.11  Limit on size of rate increases.

    (a) Rate increases for each class of market dominant products in any 
12-month period are limited.
    (b) Rates of general applicability are subject to an inflation-based 
limitation computed using CPI-U values as detailed in Sec. 3010.12.
    (c) An exception to the inflation-based limitation allows a limited 
annual recapture of unused rate authority. The amount of unused rate 
authority is measured separately for each class of mail.
    (d) In any 12-month period the inflation-based limitation combined 
with the allowable recapture of unused rate

[[Page 422]]

authority equals the price cap applicable to each class of mail.



Sec. 3010.12  Source of CPI-U data for purposes of annual limitation.

    The monthly CPI-U values needed for the calculation of the annual 
limitation under this part shall be obtained from the Bureau of Labor 
Statistics (BLS) Consumer Price Index--All Urban Consumers, U.S. All 
Items, Not Seasonally Adjusted, Base Period 1982-84 = 100. The current 
Series ID for the index is ``CUUR0000SA0.''



Sec. 3010.13  Proceedings for Type 1-A and Type 1-B rate adjustment filings.

    (a) The Commission will establish a docket for each rate adjustment 
filing, promptly publish notice of the filing in the Federal Register, 
and post the filing on its Web site. The notice shall include:
    (1) The general nature of the proceeding;
    (2) A reference to legal authority to which the proceeding is to be 
conducted;
    (3) A concise description of the planned for changes in rates, fees, 
and the Mail Classification Schedule;
    (4) The identification of an officer of the Commission to represent 
the interests of the general public in the docket;
    (5) A period of 20 days from the date of the filing for public 
comment; and
    (6) Such other information as the Commission deems appropriate.
    (b) Public comments should focus primarily on whether planned rate 
adjustments comply with the following mandatory requirements of 39 
U.S.C. chapter 36, subchapter 1:
    (1) Whether the planned rate adjustments measured using the formula 
established in Sec. 3010.23(b) are at or below the annual limitation 
established in Sec. 3010.11; and
    (2) Whether the planned rate adjustments measured using the formula 
established in Sec. 3010.23(b) are at or below the limitations 
established in Sec. 3010.28.
    (c) Within 14 days of the conclusion of the public comment period 
the Commission will determine, at a minimum, whether the planned rate 
adjustments are consistent with the annual limitation set forth in rule 
3010.11; the limitations set forth in rule 3010.28; and 39 U.S.C. 3626, 
3627, and 3629, and issue an order announcing its findings.
    (d) If the planned rate adjustments are found consistent with 
applicable law by the Commission, they may take effect pursuant to 
appropriate action by the Governors.
    (e) If planned rate adjustments are found inconsistent with 
applicable law by the Commission, the Postal Service will submit an 
amended notice of rate adjustment and describe the modifications to its 
planned rate adjustments that will bring its rate adjustments into 
compliance. An amended notice of rate adjustment shall be accompanied by 
sufficient explanatory information to show that all deficiencies 
identified by the Commission have been corrected.
    (f) The Commission will post any amended notice of rate adjustment 
filing on its Web site and allow a period of 10 days from the date of 
the filing for public comment. Comments in the amended notice of rate 
adjustment should address the subjects identified in rule 3010.13(b).
    (g) The Commission will review any amended notice of rate adjustment 
together with any comments filed for compliance and within 14 days issue 
an order announcing its findings.
    (h) If the planned rate adjustments as amended are found to be 
consistent with applicable law, they may take effect pursuant to 
appropriate action by the Governors. However, no rate shall take effect 
until 45 days after the Postal Service files a notice of rate adjustment 
specifying that rate.
    (i) If the planned rate adjustments in an amended notice of rate 
adjustment are found to be inconsistent with applicable law, the 
Commission shall explain the basis of its determination and suggest an 
appropriate remedy.
    (j) For purposes of subsequent Commission proceedings, findings that 
a planned Type 1 rate adjustment is in compliance with the annual 
limitation set forth in Sec. 3010.11; the limitations set forth in 
Sec. 3010.28; and 39 U.S.C. 3626, 3627, and 3629 are decided on the 
merits. A Commission finding that a planned Type 1 rate adjustment does 
not contravene other policies of 39 U.S.C.

[[Page 423]]

chapter 36, subchapter 1 is provisional and subject to subsequent 
review.



Sec. 3010.14  Contents of notice of rate adjustment.

    (a) General. The Postal Service notice of rate adjustment must 
include the following information:
    (1) A schedule of the proposed rates;
    (2) The planned effective date(s) of the proposed rates;
    (3) A representation or evidence that public notice of the planned 
changes has been issued or will be issued at least 45 days before the 
effective date(s) for the proposed new rates; and
    (4) The identity of a responsible Postal Service official who will 
be available to provide prompt responses to requests for clarification 
from the Commission.
    (b) Supporting technical information and justifications. The notice 
of rate adjustment shall be accompanied by:
    (1) The amount of the applicable change in CPI-U calculated as 
required by Sec. 3010.21 or Sec. 3010.22, as appropriate. This 
information must be supported by workpapers in which all calculations 
are shown, and all input values including all relevant CPI-U values are 
listed with citations to the original sources;
    (2) A schedule showing unused rate authority available for each 
class of mail displayed by class and available amount for each of the 
preceding 5 years. This information must be supported by workpapers in 
which all calculations are shown;
    (3) The percentage change in rates for each class of mail calculated 
as required by Sec. 3010.23. This information must be supported by 
workpapers in which all calculations are shown, and all input values 
including current rates, new rates, and billing determinants are listed 
with citations to the original sources;
    (4) The amount of new unused rate authority, if any, that will be 
generated by the rate adjustment calculated as required by Sec. 
3010.26. All calculations are to be shown with citations to the original 
sources. If new unused rate authority will be generated for a class of 
mail that is not expected to cover its attributable costs, the Postal 
Service must provide the rationale underlying this rate adjustment;
    (5) A schedule of the workshare discounts included in the proposed 
rates, and a companion schedule listing the avoided costs that underlie 
each such discount. The avoided cost figures must be developed from the 
most recent PRC Annual Compliance Report. This information must be 
supported by workpapers in which all calculations are shown, and all 
input values are listed with citations to the original sources;
    (6) Separate justification for all proposed workshare discounts that 
exceed avoided costs. Each such justification shall reference applicable 
reasons identified in 39 U.S.C. 3622(e)(2) or (3). The Postal Service 
shall also identify and explain discounts that are set substantially 
below avoided costs and explain any relationship between discounts that 
are above and those that are below avoided costs;
    (7) A discussion that demonstrates how the planned rate adjustments 
are designed to help achieve the objectives listed in 39 U.S.C. 3622(b) 
and properly take into account the factors listed in 39 U.S.C. 3622(c);
    (8) A discussion that demonstrates the planned rate adjustments are 
consistent with 39 U.S.C. 3626, 3627, and 3629;
    (9) A schedule identifying every change to the Mail Classification 
Schedule that will be necessary to implement the planned rate 
adjustments; and
    (10) Such other information as the Postal Service believes will 
assist the Commission to issue a timely determination of whether the 
requested increases are consistent with applicable statutory policies.
    (c) New workshare discounts. Whenever the Postal Service establishes 
a new workshare discount rate, it must include with its filing:
    (1) A statement explaining its reasons for establishing the 
discount;
    (2) All data, economic analyses, and other information relied on to 
justify the discount; and
    (3) A certification based on comprehensive, competent analyses that 
the discount will not adversely affect either the rates or the service 
levels of users of postal services who do not take advantage of the 
discount.

[[Page 424]]

    (d) Information required only when Type 1-B rate adjustments are 
proposed. The notice of rate adjustment shall identify for each affected 
class how much existing unused rate authority is used in the proposed 
rates calculated as required by Sec. 3010.27. All calculations are to 
be shown, including citations to the original sources.



               Subpart C_Rules for Applying the Price Cap



Sec. 3010.20  Test for compliance with the annual limitation.

    The appropriate annual limitation shall be applied to a measure of 
the rates paid by mail sent in each class for which rate adjustments are 
to be made to determine whether planned rates are consistent with the 
annual limitation.



Sec. 3010.21  Calculation of annual limitation.

    (a) The calculation of an annual limitation involves three steps. 
First, a simple average CPI-U index is calculated by summing the most 
recently available 12 monthly CPI-U values from the date the Postal 
Service files its notice of rate adjustment and dividing the sum by 12 
(Recent Average). Then, a second simple average CPI-U index is similarly 
calculated by summing the 12 monthly CPI-U values immediately preceding 
the Recent Average and dividing the sum by 12 (Base Average). Finally, 
the annual limitation is calculated by dividing the Recent Average by 
the Base Average and subtracting 1 from the quotient. The result is 
expressed as a percentage, rounded to three decimal places.
    (b) The formula for calculating an annual limitation is as follows: 
Annual Limitation = (Recent Average/Base Average)-1.

[74 FR 49327, Sept. 28, 2009]



Sec. 3010.22  Calculation of less than annual limitation.

    (a) If a notice of rate adjustment is filed less than 1 year after 
the last Type 1-A or Type 1-B notice of rate adjustment applicable to an 
affected class of mail, then the annual limitation will recognize the 
rate increases that have occurred during the preceding 12 months. When 
the effects of those increases are removed, the remaining partial year 
limitation is the applicable restriction on rate increases.
    (b) The applicable partial year limitation is calculated in two 
steps. First, a simple average CPI-U index is calculated by summing the 
12 most recently available monthly CPI-U values from the date the Postal 
Service files its notice of rate adjustment and dividing the sum by 12 
(Recent Average). The partial year limitation is then calculated by 
dividing the Recent Average by the Recent Average from the most recent 
previous notice of rate adjustment (Previous Recent Average) applicable 
to each affected class of mail and subtracting 1 from the quotient. The 
result is expressed as a percentage, rounded to three decimal places.
    (c) The formula for calculating the partial year limitation for a 
notice of rate adjustment filed less than 1 year after the last notice 
is as follows: Partial Year Limitation = (Recent Average/Previous Recent 
Average)-1.

[74 FR 49327, Sept. 28, 2009]



Sec. 3010.23  Calculation of percentage change in rates.

    (a) The term rate cell as applied in the test for compliance with 
the annual limitation shall apply to each and every separate rate 
identified in any applicable notice of rate adjustment for rates of 
general applicability. Thus, seasonal or temporary rates, for example, 
shall be identified and treated as rate cells separate and distinct from 
the corresponding non-seasonal or permanent rates.
    (b) For each class of mail, the percentage change in rates is 
calculated in three steps. First, the volume of each rate cell in the 
class is multiplied by the planned rate for the respective cell and the 
resulting products are summed. Then, the same set of rate cell volumes 
are multiplied by the corresponding current rate for each cell and the 
resulting products are summed. Finally, the percentage change in rates 
is calculated by dividing the results of the first step by the

[[Page 425]]

results of the second step and subtracting 1 from the quotient. The 
result is expressed as a percentage.
    (c) The formula for calculating the percentage change in rates for a 
class described in paragraph (b) of this section is as follows:
    Percentage change in rates =
    [GRAPHIC] [TIFF OMITTED] TR09NO07.000
    
Where,

N = number of rate cells in the class
i = denotes a rate cell (i = 1, 2, ..., N)
Ri,n = planned rate of rate cell i
Ri,c = current rate of rate cell i
Vi = volume of rate cell i

    (d) The volumes for each rate cell shall be obtained from the most 
recent available 12 months of Postal Service billing determinants. The 
Postal Service shall make reasonable adjustments to the billing 
determinants to account for the effects of classification changes such 
as the introduction, deletion, or redefinition of rate cells. Whenever 
possible, adjustments shall be based on known mail characteristics. The 
Postal Service shall identify and explain all adjustments. All 
information and calculations relied upon to develop the adjustments 
shall be provided together with an explanation of why the adjustments 
are appropriate.



Sec. 3010.24  Treatment of volume associated with negotiated service 
agreements.

    (a) Mail volumes sent at rates under negotiated service agreements 
are to be included in the calculation of percentage change in rates as 
though they paid the appropriate rates of general applicability. Where 
it is impractical to identify the rates of general applicability (e.g., 
because unique rate categories are created for a mailer), the volumes 
associated with the mail sent under the terms of the negotiated service 
agreement shall be excluded from the calculation of percentage change in 
rates.
    (b) The Postal Service shall identify and explain all assumptions it 
makes with respect to the treatment of negotiated service agreements in 
the calculation of the percentage change in rates and provide the 
rationale for its assumptions.



Sec. 3010.25  Limitation on unused rate adjustment authority rate 
adjustments.

    Unused rate adjustment authority rate adjustments may only be 
applied together with inflation-based limitation rate adjustments or 
when inflation-based limitation rate adjustments are not possible. 
Unused rate adjustment authority rate adjustments may not be used in 
lieu of an inflation-based limitation rate adjustment.



Sec. 3010.26  Calculation of unused rate adjustment authority.

    (a) Unused rate adjustment authority accrues during the entire 
period between notices of Type 1 rate adjustments.
    (b) When notices of Type 1 rate adjustments are filed 12 months 
apart or less, either the annual or partial year limitation (developed 
pursuant to Sec. 3010.21(a) or Sec. 3010.22(b) respectively) is used 
to measure the accrued unused rate authority. In either circumstance, 
the new unused rate authority for each class is equal to the difference 
between the maximum allowable percentage change in rates under the 
applicable rate limitation and the actual percentage change in rates for 
that class.
    (c) When a notice of rate adjustment is filed more than 12 months 
after the previous notice of rate adjustment, unused rate authority is 
computed in three steps:
    (1) The unused rate authority for the 12 months represented by the 
annual limitation is computed as described in paragraph (b) of this 
section;
    (2) The additional unused rate authority accrued is measured by 
dividing the Base Average applicable to the instant notice of rate 
adjustment (as developed pursuant to Sec. 3010.21(a)) by the Recent 
Average utilized in the previous notice of rate adjustment (as developed 
pursuant to Sec. 3010.21(a)) and subtracting 1 from the quotient. The 
result is expressed as a percentage; and
    (3) The results from step 1 and step 2 are added together.

[[Page 426]]

    (d) Unused rate adjustment authority lapses 5 years after the date 
of filing of the notice of rate adjustment leading to its computation.



Sec. 3010.27  Application of unused rate adjustment authority.

    When the percentage change in rates for a class is greater than the 
applicable annual limitation, then the difference between the percentage 
change in rates for the class and the price cap shall be subtracted from 
the existing unused rate authority for the class, using a first-in, 
first-out (FIFO) method, beginning 5 years before the instant notice.



Sec. 3010.28  Maximum size of unused rate adjustment authority rate 
adjustments.

    Unused rate adjustment authority exercised in notices of rate 
adjustments for any class in any 12-month period may not exceed the 
applicable limitations described in Sec. Sec. 3010.21 or 3010.22 plus 
the lesser of:
    (a) 2 percent; or
    (b) The sum of any unused rate adjustment authority for that class.



Sec. 3010.29  Transition rule.

    If the Postal Service initial exercise of its authority to file a 
Type 1-A notice of rate adjustment is preceded by a transitional rate 
case filing under 39 U.S.C. 3622(f):
    (a) The annual limitation as calculated in Sec. 3010.21 is 
applicable if the notice of rate adjustment is 12 months or more after 
the date of the Decision of the Governors approving rate changes 
associated with the transitional filing; and
    (b) The annual limitation as calculated in Sec. 3010.22 is 
applicable if the notice of rate adjustment is 12 months or more after 
the date of the Decision of the Governors approving rate changes 
associated with the transitional filing. In such circumstances, the date 
of the Decision of the Governors approving rate changes associated with 
the transitional filing is the most recent previous notice of rate 
adjustment.



 Subpart D_Rules for Rate Adjustments for Negotiated Service Agreements 
                        (Type 2 Rate Adjustments)



Sec. 3010.40  Negotiated service agreements.

    (a) In administering this subpart, it shall be the objective of the 
Commission to allow implementation of negotiated service agreements that 
satisfy the statutory requirements of 39 U.S.C. 3622(c)(10). Negotiated 
service agreements must either:
    (1) Improve the net financial position of the Postal Service (39 
U.S.C. 3622(c)(10)(A)(i)); or
    (2) Enhance the performance of operational functions (39 U.S.C. 
3622(c)(10)(A)(ii)).
    (b) Negotiated service agreements may not cause unreasonable harm to 
the marketplace (39 U.S.C. 3622(c)(10)(B)).
    (c) Negotiated service agreements must be available on public and 
reasonable terms to similarly situated mailers.



Sec. 3010.41  Procedures.

    The Postal Service, in every instance in which it determines to 
exercise its statutory authority to make a Type 2 rate adjustment for a 
market dominant postal product shall provide public notice in a manner 
reasonably designed to inform the mailing community and the general 
public that it intends to change rates not later than 45 days prior to 
the intended implementation date; and transmit a notice of agreement to 
the Commission no later than 45 days prior to the intended 
implementation date.



Sec. 3010.42  Contents of notice of agreement in support of a negotiated
service agreement.

    (a) Whenever the Postal Service proposes to establish or change 
rates or fees and/or the Mail Classification Schedule based on a 
negotiated service agreement, the Postal Service shall file with the 
Commission a notice of agreement that shall include at a minimum:
    (1) A copy of the negotiated service agreement;
    (2) The planned effective date(s) of the proposed rates;

[[Page 427]]

    (3) A representation or evidence that public notice of the planned 
changes has been issued or will be issued at least 45 days before the 
effective date(s) for the proposed new rates; and
    (4) The identity of a responsible Postal Service official who will 
be available to provide prompt responses to requests for clarification 
from the Commission.
    (b) A statement identifying all parties to the agreement and a 
description clearly explaining the operative components of the 
agreement.
    (c) Details regarding the expected improvements in the net financial 
position or operations of the Postal Service. The projection of change 
in net financial position as a result of the agreement shall include for 
each year of the agreement:
    (1) The estimated mailer-specific costs, volumes, and revenues of 
the Postal Service absent the implementation of the negotiated service 
agreement;
    (2) The estimated mailer-specific costs, volumes, and revenues of 
the Postal Service which result from implementation of the negotiated 
service agreement;
    (3) An analysis of the effects of the negotiated service agreement 
on the contribution to institutional costs from mailers not party to the 
agreement; and
    (4) If mailer-specific costs are not available, the source and 
derivation of the costs that are used shall be provided, together with a 
discussion of the currency and reliability of those costs and their 
suitability as a proxy for the mailer-specific costs.
    (d) An identification of each component of the agreement expected to 
enhance the performance of mail preparation, processing, transportation 
or other functions in each year of the agreement, and a discussion of 
the nature and expected impact of each such enhancement.
    (e) Details regarding any and all actions (performed or to be 
performed) to assure that the agreement will not result in unreasonable 
harm to the marketplace.
    (f) Such other information as the Postal Service believes will 
assist the Commission to issue a timely determination of whether the 
requested changes are consistent with applicable statutory policies.



Sec. 3010.43  Data collection plan.

    The Postal Service shall include with any notice of agreement a 
detailed plan for providing data or information on actual experience 
under the agreement sufficient to allow evaluation of whether the 
negotiated service agreement operates in compliance with 39 U.S.C. 
3622(c)(10). The data report is due 60 days after each anniversary date 
of implementation and shall include, at a minimum, the following 
information for each 12-month period the agreement has been in effect:
    (a) The change in net financial position as a result of the 
agreement. This calculation shall include for each year of the 
agreement:
    (1) The actual mailer-specific costs, volumes, and revenues of the 
Postal Service;
    (2) An analysis of the effects of the negotiated service agreement 
on the net overall contribution to the institutional costs of the Postal 
Service; and
    (3) If mailer-specific costs are not available, the source and 
derivation of the costs that are used shall be provided, including a 
discussion of the currency and reliability of those costs, and their 
suitability as a proxy for the mailer-specific costs.
    (b) A discussion of the changes in operations of the Postal Service 
that have resulted from the agreement. This shall include, for each year 
of the agreement, identification of each component of the agreement 
known to enhance the performance of mail preparation, processing, 
transportation, or other functions in each year of the agreement.
    (c) An analysis of the impact of the negotiated service agreement on 
the marketplace, including a discussion of any and all actions taken to 
protect the marketplace from unreasonable harm.



Sec. 3010.44  Proceedings for Type 2 rate adjustments.

    (a) The Commission will establish a docket for each Type 2 rate 
adjustment filing, promptly publish notice of the filing in the Federal 
Register, and

[[Page 428]]

post the filing on its Web site. The notice shall include:
    (1) The general nature of the proceeding;
    (2) A reference to legal authority to which the proceeding is to be 
conducted;
    (3) A concise description of the planned changes in rates, fees, and 
the Mail Classification Schedule;
    (4) The identification of an officer of the Commission to represent 
the interests of the general public in the docket;
    (5) A period of 10 days from the date of the filing for public 
comment; and
    (6) Such other information as the Commission deems appropriate.
    (b) The Commission shall review the planned Type 2 rate adjustments 
and the comments thereon, and issue an order announcing its findings. So 
long as such adjustments are not inconsistent with 39 U.S.C. 3622, they 
may take effect pursuant to appropriate action by the Governors. 
However, no rate shall take effect until 45 days after the Postal 
Service files a notice of rate adjustment specifying that rate.
    (c) Commission findings that a planned Type 2 rate adjustment is not 
inconsistent with 39 U.S.C.3622 are provisional and subject to 
subsequent review.



 Subpart E_Rules for Rate Adjustments in Exigent Circumstances (Type 3 
                            Rate Adjustments)



Sec. 3010.60  Applicability.

    The Postal Service may request to increase rates for market dominant 
products in excess of the annual limitation on the percentage changes in 
rates described in Sec. 3010.11(d) due to extraordinary or exceptional 
circumstances. Such requests will be known as exigent requests.



Sec. 3010.61  Contents of exigent requests.

    (a) Each exigent request shall include the following:
    (1) A schedule of the proposed rates;
    (2) Calculations quantifying the increase for each affected product 
and class;
    (3) A full discussion of the extraordinary or exceptional 
circumstance(s) giving rise to the request, and a complete explanation 
of how both the requested overall increase, and the specific rate 
increases requested, relate to those circumstances;
    (4) A full discussion of why the requested increases are necessary 
to enable the Postal Service, under best practices of honest, efficient 
and economical management, to maintain and continue the development of 
postal services of the kind and quality adapted to the needs of the 
United States;
    (5) A full discussion of why the requested increases are reasonable 
and equitable as among types of users of market dominant products;
    (6) An explanation of when, or under what circumstances, the Postal 
Service expects to be able to rescind the exigent increases in whole or 
in part;
    (7) An analysis of the circumstances giving rise to the request, 
which should, if applicable, include a discussion of whether the 
circumstances were foreseeable or could have been avoided by reasonable 
prior action; and
    (8) Such other information as the Postal Service believes will 
assist the Commission to issue a timely determination of whether the 
requested increases are consistent with applicable statutory policies.
    (b) The Postal Service shall identify one or more knowledgeable 
Postal Service official(s) who will be available to provide prompt 
responses to Commission requests for clarification related to each topic 
specified in Sec. 3010.61(a).



Sec. 3010.62  Supplemental information.

    The Commission may require the Postal Service to provide 
clarification of its request or to provide information in addition to 
that called for by Sec. 3010.61 in order to gain a better understanding 
of the circumstances leading to the request or the justification for the 
specific rate increases requested.



Sec. 3010.63  Treatment of unused rate adjustment authority.

    (a) Each exigent request will identify the unused rate authority for 
each class of mail as of the date of the request.
    (b) Pursuant to an exigent request, increases may use accumulated 
unused

[[Page 429]]

rate adjustment authority in amounts greater than the limitation 
described in Sec. 3010.28.
    (c) Exigent increases will exhaust all unused rate adjustment 
authority for each class of mail before imposing additional rate 
increases in excess of the price cap for any class of mail.



Sec. 3010.64  Expeditious treatment of exigent requests.

    Requests under this subpart seek rate relief required by 
extraordinary or exceptional circumstances and will be treated with 
expedition at every stage. It is Commission policy to provide 
appropriate relief as quickly as possible consistent with statutory 
requirements and procedural fairness.



Sec. 3010.65  Special procedures applicable to exigent requests.

    (a) The Commission will establish a docket for each request for 
exigent rate adjustments, promptly publish notice of the request in the 
Federal Register, and post the filing on its Web site. The notice shall 
include:
    (1) The general nature of the proceeding;
    (2) A reference to legal authority to which the proceeding is to be 
conducted;
    (3) A concise description of the proposals for changes in rates, 
fees, and the Mail Classification Schedule;
    (4) The identification of an officer of the Commission to represent 
the interests of the general public in the docket;
    (5) A specified period for public comment; and
    (6) Such other information as the Commission deems appropriate.
    (b) The Commission will hold a public hearing on the Postal Service 
request. During the public hearing, responsible Postal Service officials 
will appear and respond under oath to questions from the Commissioners 
or their designees addressing previously identified aspects of the 
Postal Service's request and the supporting information provided in 
response to the topics specified in Sec. 3010.61(a).
    (c) Interested persons will be given an opportunity to submit to the 
Commission suggested relevant questions that might be posed during the 
public hearing. Such questions, and any explanatory materials submitted 
to clarify the purpose of the questions, should be filed in accordance 
with Sec. 3001.9, and will become part of the administrative record of 
the proceeding.
    (d) The timing and length of the public hearing will depend on the 
nature of the circumstances giving rise to the request and the clarity 
and completeness of the supporting materials provided with the request.
    (e) If the Postal Service is unable to provide adequate explanations 
during the public hearing, supplementary written or oral responses may 
be required.
    (f) Following the conclusion of the public hearings and submission 
of any supplementary materials interested persons will be given the 
opportunity to submit written comments on:
    (1) The sufficiency of the justification for an exigent rate 
increase;
    (2) The adequacy of the justification for increases in the amounts 
requested by the Postal Service; and
    (3) Whether the specific rate adjustments requested are reasonable 
and equitable.
    (g) An opportunity to submit written reply comments will be given to 
the Postal Service and other interested persons.



Sec. 3010.66  Deadline for Commission decision.

    The Commission will act expeditiously on the Postal Service request, 
taking into account all written comments. In every instance a Commission 
decision will be issued within 90 days of a Postal Service request for 
an exigent rate increase.



PART 3015_REGULATION OF RATES FOR COMPETITIVE PRODUCTS--Table of Contents



Sec.
3015.1 Scope.
3015.2 Changes in rates of general applicability.
3015.3 Decrease in rates of general applicability.
3015.4 Change in class of general applicability.
3015.5 Rate or class not of general applicability.
3015.6 Sufficiency of information.
3015.7 Standards for compliance.

    Authority: 39 U.S.C. 503; 3633.

[[Page 430]]


    Source: 72 FR 63697, Nov. 9, 2007, unless otherwise noted.



Sec. 3015.1  Scope.

    Rules in this part are applicable to competitive products.



Sec. 3015.2  Changes in rates of general applicability.

    (a) When the Postal Service determines to change a rate or rates of 
general applicability, it shall file notice of the change with the 
Commission no later than the date of publication of the decision in the 
Federal Register concerning such change, but at least 30 days before the 
effective date of the change.
    (b) The notice filed with the Commission shall include an 
explanation and justification for the change, the effective date, and a 
schedule of the changed rates.



Sec. 3015.3  Decrease in rates of general applicability.

    (a) When the Postal Service determines to change a rate or rates of 
general applicability for any competitive product that results in a 
decrease in the average rate of that product, it shall file notice of 
the change with the Commission no later than the date of publication of 
the decision in the Federal Register concerning such change, but at 
least 30 days before the effective date of the change.
    (b) The notice filed with the Commission shall include an 
explanation and justification for the change, the effective date, and a 
schedule of the changed rates.
    (c) In addition to the notice, the Postal Service shall file with 
the Commission:
    (1) Sufficient revenue and cost data for the 12-month period 
following the effective date of the rate to demonstrate that each 
affected competitive product will be in compliance with 39 U.S.C. 
3633(a)(2); and
    (2) A certified statement by a representative of the Postal Service 
attesting to the accuracy of the data submitted, and explaining why, 
following the change, competitive products in total will be in 
compliance with 39 U.S.C. 3633(a)(1) and (3).



Sec. 3015.4  Change in class of general applicability.

    (a) In the case of a change in class of general applicability, the 
Postal Service shall file notice of the change with the Commission no 
later than the date of publication of the decision in the Federal 
Register, but at least 30 days before the effective date of the 
increase.
    (b) The notice filed with the Commission shall include an 
explanation and justification for the change, the effective date, and 
the record of proceedings regarding such decision.



Sec. 3015.5  Rate or class not of general applicability.

    (a) When the Postal Service determines to add or change a rate or 
class not of general applicability, it shall file notice of its decision 
with the Commission at least 15 days before the effective date of the 
change.
    (b) The notice filed with the Commission shall include an 
explanation and justification for the change, the effective date, the 
rate and class decision, and the record of proceedings regarding such 
decision.
    (c) In addition to the notice, the Postal Service shall file with 
the Commission:
    (1) Sufficient revenue and cost data for the 12-month period 
following the effective date of the rate or class to demonstrate that 
each affected competitive product will be in compliance with 39 U.S.C. 
3633(a)(2); and
    (2) A certified statement by a representative of the Postal Service 
attesting to the accuracy of the data submitted, and explaining why, 
following the change, competitive products in total will be in 
compliance with 39 U.S.C. 3633(a)(1) and (3).



Sec. 3015.6  Sufficiency of information.

    If, after review of the information submitted pursuant to this part, 
the Commission determines additional information is necessary to enable 
it to evaluate whether competitive products will be in compliance with 
39 U.S.C. 3633(a), it may, in its discretion, require the Postal Service 
to provide additional information as deemed necessary.

[[Page 431]]



Sec. 3015.7  Standards for compliance.

    For purposes of determining competitive products' compliance with 39 
U.S.C. 3633, the Commission will apply the following standards:
    (a) Incremental costs will be used to test for cross-subsidies by 
market dominant products of competitive products. To the extent that 
incremental cost data are unavailable, the Commission will use 
competitive products' attributable costs supplemented to include 
causally related, group-specific costs to test for cross-subsidies.
    (b) Each competitive product must recover its attributable costs as 
defined in 39 U.S.C. 3631(b).
    (c) Annually, on a fiscal year basis, the appropriate share of 
institutional costs to be recovered from competitive products 
collectively is, at a minimum, 5.5 percent of the Postal Service's total 
institutional costs.



PART 3020_PRODUCT LISTS--Table of Contents



                 Subpart A_Mail Classification Schedule

Sec.
3020.1 Applicability.
3020.10 General.
3020.11 Initial Mail Classification Schedule.
3020.12 Publication of the Mail Classification Schedule.
3020.13 Contents of the Mail Classification Schedule.
3020.14 Notice of change.

Appendix A to Subpart A of Part 3020--Mail Classification Schedule

Subpart B_Requests Initiated by the Postal Service To Modify the Product 
         Lists Described Within the Mail Classification Schedule

3020.30 General.
3020.31 Contents of a request.
3020.32 Supporting justification.
3020.33 Docket and notice.
3020.34 Review.
3020.35 Further proceedings.

  Subpart C_Requests Initiated by Users of Mail To Modify the Product 
         Lists Described Within the Mail Classification Schedule

3020.50 General.
3020.51 Contents of a request.
3020.52 Supporting justification.
3020.53 Docket and notice.
3020.54 Postal Service notice and reply.
3020.55 Review.
3020.56 Further proceedings.

    Subpart D_Proposal of the Commission To Modify the Product Lists 
            Described Within the Mail Classification Schedule

3020.70 General.
3020.71 Contents of a proposal.
3020.72 Supporting justification.
3020.73 Docket and notice.
3020.74 Postal Service notice and reply.
3020.75 Review.
3020.76 Further proceedings.

 Subpart E_Requests Initiated by the Postal Service To Change the Mail 
                         Classification Schedule

3020.90 General.
3020.91 Modification.
3020.92 Public input.
3020.93 Implementation.

          Subpart F_Size and Weight Limitations for Mail Matter

3020.110 General.
3020.111 Limitations applicable to market dominant mail matter.
3020.112 Limitations applicable to competitive mail matter.

    Authority: 39 U.S.C. 503; 3622; 3631; 3642; 3682.

    Source: 72 FR 63698, Nov. 9, 2007, unless otherwise noted.



                 Subpart A_Mail Classification Schedule



Sec. 3020.1  Applicability.

    (a) The rules in this part provide for establishing product lists. 
The product lists shall categorize postal products as either market 
dominant or competitive. As established, the market dominant and 
competitive product lists will be specified in the Mail Classification 
Schedule and shall be consistent with the market dominant products 
identified in 39 U.S.C. 3621(a) and the competitive products identified 
in 39 U.S.C. 3631(a).
    (b) Once established, the Mail Classification Schedule may be 
modified subject to the procedures specified in this part.



Sec. 3020.10  General.

    The Mail Classification Schedule shall consist of two parts. Part 
One

[[Page 432]]

shall specify the list of market dominant products and include the 
explanatory information specified in Sec. 3020.13(a). Part Two shall 
specify the list of competitive products and include the explanatory 
information specified in Sec. 3020.13(b).



Sec. 3020.11  Initial Mail Classification Schedule.

    The initial Mail Classification Schedule shall specify the market 
dominant and competitive product lists. The Mail Classification Schedule 
product lists shall reflect the market dominant and competitive product 
lists identified in 39 U.S.C. 3621(a) and 39 U.S.C. 3631(a) 
respectively. The explanatory detailed descriptive information specified 
in Sec. 3020.13(a) and Sec. 3020.13(b) shall be incorporated by 
subsequent rulemaking.



Sec. 3020.12  Publication of the Mail Classification Schedule.

    (a) The Mail Classification Schedule established in accordance with 
subchapters I, II, and III of chapter 36 of title 39 of the United 
States Code and this subpart shall appear as Appendix A to this subpart.
    (b) Availability of the Mail Classification Schedule. Copies of the 
Mail Classification Schedule, both current and previous issues, are 
available during regular business hours for reference and public 
inspection at the Postal Regulatory Commission's Reading Room located at 
901 New York Avenue, NW., Suite 200, Washington, DC 20268-0001. The Mail 
Classification Schedule, both current and previous issues, also is 
available on the Internet at http://www.prc.gov.



Sec. 3020.13  Contents of the Mail Classification Schedule.

    The Mail Classification Schedule shall provide:
    (a) The list of market dominant products, including:
    (1) The class of each market dominant product;
    (2) The description of each market dominant product;
    (3) A schedule listing for each market dominant product the current 
rates and fees;
    (4) Where applicable, the identification of a product as a special 
classification within the meaning of 39 U.S.C. 3622(c)(10) for market 
dominant products;
    (5) Where applicable, the identification of a product as an 
experimental product undergoing a market test; and
    (6) Where applicable, the identification of a product as a non-
postal product.
    (b) The list of competitive products, including:
    (1) The description of each competitive product;
    (2) A schedule listing for each competitive product of general 
applicability the current rates and fees;
    (3) The identification of each product not of general applicability 
within the meaning of 39 U.S.C. 3632(b)(3) for competitive products;
    (4) Where applicable, the identification of a product as an 
experimental product undergoing a market test; and
    (5) Where applicable, the identification of a product as a non-
postal product.



Sec. 3020.14  Notice of change.

    Whenever the Postal Regulatory Commission modifies the list of 
products in the market dominant category or the competitive category, it 
shall cause notice of such change to be published in the Federal 
Register. The notice shall:
    (a) Include the current list of market dominant products and the 
current list of competitive products appearing in the Mail 
Classification Schedule;
    (b) Indicate how and when the previous product lists have been 
modified; and
    (c) Describe other changes to the Mail Classification Schedule as 
necessary.



 Sec. Appendix A to Subpart A of Part 3020--Mail Classification Schedule

                    Part A--Market Dominant Products

                    1000 Market Dominant Product List

First-Class Mail
 Single-Piece Letters/Postcards
 Bulk Letters/Postcards
 Flats
 Parcels
 Outbound Single-Piece First-Class Mail International

[[Page 433]]

 Inbound Single-Piece First-Class Mail International
Standard Mail (Regular and Nonprofit)
 High Density and Saturation Letters
 High Density and Saturation Flats/Parcels
 Carrier Route
 Letters
 Flats
 Not Flat-Machinables (NFMs)/Parcels
Periodicals
 Within County Periodicals
 Outside County Periodicals
Package Services
 Single-Piece Parcel Post
 Inbound Surface Parcel Post (at UPU rates)
 Bound Printed Matter Flats
 Bound Printed Matter Parcels
 Media Mail/Library Mail
Special Services
 Ancillary Services
 International Ancillary Services
 Address Management Services
 Caller Service
 Change-of-Address Credit Card Authentication
 Confirm
 Customized Postage
 International Reply Coupon Service
 International Business Reply Mail Service
 Money Orders
 Post Office Box Service
 Stamp Fulfillment Services
Negotiated Service Agreements
Bookspan Negotiated Service Agreement
 Bank of America Corporation Negotiated Service Agreement
 Discover Financial Services 1
 HSBC North America Holdings Inc. Negotiated Service Agreement
 Inbound Market Dominant Expr[egrave]s Service Agreement 1 (R2011-6)
 The Bradford Group Negotiated Service Agreement
 Inbound International
 Canada Post--United States Postal Service Contractual Bilateral 
          Agreement for Inbound Market Dominant Services (MC2010-12 and 
          R2010-2)
 Inbound Market Dominant Multi-Service Agreements with Foreign Postal 
          Operators 1

                  Market Dominant Product Descriptions

First-Class Mail
 Single-Piece Letters/Postcards
 Bulk Letters/Postcards
 Flats
 Parcels
 Outbound Single-Piece First-Class Mail International
 Inbound Single-Piece First-Class Mail International
Standard Mail (Regular and Nonprofit)
 High Density and Saturation Letters
 High Density and Saturation Flats/Parcels
 Carrier Route
 Letters [Reserved for Product Description]
 Flats
 Not Flat-Machinables (NFMs)/Parcels
Periodicals
 Within County Periodicals
 Outside County Periodicals
Package Services
 Single-Piece Parcel Post
 Inbound Surface Parcel Post (at UPU rates)
 Bound Printed Matter Flats
 Bound Printed Matter Parcels
 Media Mail/Library Mail
Special Services
 Ancillary Services
 Address Correction Service
 Applications and Mailing Permits
 Business Reply Mail
 Bulk Parcel Return Service
 Certified Mail
 Certificate of Mailing
 Collect on Delivery
 Delivery Confirmation
 Insurance
 Merchandise Return Service
 Parcel Airlift (PAL)
 Registered Mail
 Return Receipt
 Return Receipt for Merchandise
 Restricted Delivery
 Shipper-Paid Forwarding
 Signature Confirmation
 Special Handling
 Stamped Envelopes
 Stamped Cards
 Premium Stamped Stationery
 Premium Stamped Cards
 International Ancillary Services
 International Certificate of Mailing
 International Registered Mail
 International Return Receipt
 International Restricted Delivery
 Address List Services
 Caller Service
 Change-of-Address Credit Card Authentication
 Confirm
 International Reply Coupon Service
 International Business Reply Mail Service
 Money Orders
 Post Office Box Service [Reserved for Product Description]
Negotiated Service Agreements
 HSBC North America Holdings Inc. Negotiated Service Agreement
 Bookspan Negotiated Service Agreement
 Bank of America Corporation Negotiated Service Agreement
 The Bradford Group Negotiated Service Agreement

                      Part B--Competitive Products

                      2000 Competitive Product List

Express Mail
 Express Mail
 Outbound International Expedited Services

[[Page 434]]

 Inbound International Expedited Services
 Inbound International Expedited Services 1 (CP2008-7)
 Inbound International Expedited Services 2 (MC2009-10 and CP2009-12)
 Inbound International Expedited Services 3 (MC2010-13 and CP2010-12)
 Inbound International Expedited Services 4 (MC2010-37 and CP2010-126)
First-Class Package Service
Priority Mail
 Priority Mail
 Outbound Priority Mail International
 Inbound Air Parcel Post (at non-UPU rates)
 Royal Mail Group Inbound Air Parcel Post Agreement
 Inbound Air Parcel Post (at UPU rates)
Parcel Return Service
Parcel Select
International
 International Priority Airlift (IPA)
 International Surface Airlift (ISAL)
 International Direct Sacks--M-Bags
 Global Customized Shipping Services
 Inbound Surface Parcel Post (at non-UPU rates)
 Canada Post--United States Postal Service Contractual Bilateral 
          Agreement for Inbound Competitive Services (MC2010-14 and 
          CP2010-13--Inbound Surface Parcel Post at Non-UPU Rates and 
          Xpresspost-USA)
 International Money Transfer Service--Outbound
 International Money Transfer Service--Inbound
 International Ancillary Services
Special Services
 Address Enhancement Service
 Competitive Ancillary Services
 Greeting Cards and Stationery
 Premium Forwarding Service
 Shipping and Mailing Supplies
Negotiated Service Agreements
 Domestic
 Express Mail Contract 1 (MC2008-5)
 Express Mail Contract 2 (MC2009-3 and CP2009-4)
 Express Mail Contract 3 (MC2009-15 and CP2009-21)
 Express Mail Contract 4 (MC2009-34 and CP2009-45)
 Express Mail Contract 5 (MC2010-5 and CP2010-5)
 Express Mail Contract 6 (MC2010-6 and CP2010-6)
 Express Mail Contract 7 (MC2010-7 and CP2010-7)
 Express Mail Contract 8 (MC2010-16 and CP2010-16)
 Express Mail Contract 9 (MC2011-1 and CP2011-2)
 Express Mail Contract 10 (MC2011-12 and CP2011-48)
 Express Mail Contract 11 (MC2011-14 and CP2011-50)
 Express Mail & Priority Mail Contract 1 (MC2009-6 and CP2009-7)
 Express Mail & Priority Mail Contract 2 (MC2009-12 and CP2009-14)
 Express Mail & Priority Mail Contract 3 (MC2009-13 and CP2009-17)
 Express Mail & Priority Mail Contract 4 (MC2009-17 and CP2009-24)
 Express Mail & Priority Mail Contract 5 (MC2009-18 and CP2009-25)
 Express Mail & Priority Mail Contract 6 (MC2009-31 and CP2009-42)
 Express Mail & Priority Mail Contract 7 (MC2009-32 and CP2009-43)
 Express Mail & Priority Mail Contract 8 (MC2009-33 and CP2009-44)
 Parcel Select & Parcel Return Service Contract 1 (MC2009-11 and CP2009-
          13)
 Parcel Return Service Contract 1 (MC2009-1 and CP2009-2)
 Parcel Return Service Contract 2 (MC2011-6 and CP2011-33)
 Parcel Select Contract 1 (MC2011-16 and CP2011-53)
 Parcel Select & Parcel Return Service Contract 2 (MC2009-40 and CP2009-
          61)
 Priority Mail Contract 1 (MC2008-8 and CP2008-26)
 Priority Mail Contract 2 (MC2009-2 and CP2009-3)
 Priority Mail Contract 3 (MC2009-4 and CP2009-5)
 Priority Mail Contract 4 (MC2009-5 and CP2009-6)
 Priority Mail Contract 5 (MC2009-21 and CP2009-26)
 Priority Mail Contract 6 (MC2009-25 and CP2009-30)
 Priority Mail Contract 7 (MC2009-25 and CP2009-31)
 Priority Mail Contract 8 (MC2009-25 and CP2009-32)
 Priority Mail Contract 9 (MC2009-25 and CP2009-33)
 Priority Mail Contract 10 (MC2009-25 and CP2009-34)
 Priority Mail Contract 11 (MC2009-27 and CP2009-37)
 Priority Mail Contract 12 (MC2009-28 and CP2009-38)
 Priority Mail Contract 13 (MC2009-29 and CP2009-39)
 Priority Mail Contract 14 (MC2009-30 and CP2009-40)
 Priority Mail Contract 15 (MC2009-35 and CP2009-54)
 Priority Mail Contract 16 (MC2009-36 and CP2009-55)
 Priority Mail Contract 17 (MC2009-37 and CP2009-56)
 Priority Mail Contract 18 (MC2009-42 and CP2009-63)
 Priority Mail Contract 19 (MC2010-1 and CP2010-1)
 Priority Mail Contract 20 (MC2010-2 and CP2010-2)

[[Page 435]]

 Priority Mail Contract 21 (MC2010-3 and CP2010-3)
 Priority Mail Contract 22 (MC2010-4 and CP2010-4)
 Priority Mail Contract 23 (MC2010-9 and CP2010-9)
 Priority Mail Contract 24 (MC2010-15 and CP2010-15)
 Priority Mail Contract 25 (MC2010-30 and CP2010-75)
 Priority Mail Contract 26 (MC2010-31 and CP2010-76)
 Priority Mail Contract 27 (MC2010-32 and CP2010-77)
 Priority Mail Contract 28 (MC2011-2 and CP2011-3)
 Priority Mail Contract 29 (MC2011-3 and CP2011-4)
 Priority Mail Contract 30 (MC2011-9 and CP2011-44)
 Priority Mail Contract 31 (MC2011-10 and CP2011-46)
 Priority Mail Contract 32 (MC2011-11 and CP2011-47)
 Priority Mail Contract 33 (MC2011-13 and CP2011-49)
 Priority Mail Contract 34 (MC2011-17 and CP2011-56)
 Priority Mail Contract 35 (MC2011-18 and CP2011-57)
 Priority Mail Contract 36 (MC2012-2 and CP2012-6)
 Priority Mail Contract 37 (MC2012-3 and CP2012-7)
 Priority Mail Contract 38 (MC2012-7 and CP2012-15)
 Priority Mail--Non-Published Rates
 Priority Mail--Non-Published Rates 1 (MC2011-15 and CP2011-51)
Outbound International
 Direct Entry Parcels Contracts
 Direct Entry Parcels 1 (MC2009-26 and CP2009-36)
 Global Direct Contracts (MC2009-9, CP2009-10, and CP2009-11)
 Global Expedited Package Services (GEPS) Contracts
 GEPS 1 (CP2008-5, CP2008-11, CP2008-12, CP2008-13, CP2008-18, CP2008-
          19, CP2008-20, CP2008-21, CP2008-22, CP2008-23 and CP2008-24)
 Global Expedited Package Services 2 (CP2009-50)
 Global Expedited Package Services 3 (MC2010-28 and CP2010-71)
 Global Expedited Package Services 4 (CP2011-54)
 Global Expedited Package Services--Non-published Rates 2 (MC2010-29 and 
          CP2011-45)
 Global Expedited Package Services Non-published Rates 3 (MC2012-4 and 
          CP2012-8)
 Global Plus Contracts
 Global Plus 1 (CP2008-8, CP2008-46 and CP2009-47)
 Global Plus 1A (MC2010-26, CP2010-67 and CP2010-68)
 Global Plus 1B (MC2011-7, CP2011-39 and CP2011-40)
 Global Plus 1C (MC2012-6, CP2012-12 and CP2012-13)
 Global Plus 2 (MC2008-7, CP2008-48 and CP2008-49)
 Global Plus 2A (MC2010-27, CP2010-69 and CP2010-70)
 Global Plus 2B (MC2011-8, CP2011-41 and CP2011-42)
 Global Plus 2C (MC2012-5, CP2012-10 and CP2012-11)
 Global Reseller Expedited Package Services 1 (MC2010-21 and CP2010-36)
Inbound International
 Inbound Competitive Multi-Service Agreements with Foreign Postal 
          Operators 1 (MC2010-34 and CP2010-95)
 Inbound Direct Entry Contracts with Foreign Postal Administrations
 Inbound Direct Entry Contracts with Foreign Postal Administrations 
          (MC2008-6, CP2008-14 and MC2008-15)
 Inbound Direct Entry Contracts with Foreign Postal Administrations 1 
          (MC2008-6 and CP2009-62)
 International Business Reply Service Competitive Contract 1 (MC2009-14 
          and CP2009-20)
 International Business Reply Service Competitive Contract 2 (MC2010-18, 
          CP2010-21 and CP2010-22)

                    Competitive Product Descriptions

Express Mail
 Express Mail
 Outbound International Expedited Services
 Inbound International Expedited Services
 Priority
 Priority Mail
 Outbound Priority Mail International
 Inbound Air Parcel Post
 Parcel Select
 Parcel Return Service
 International
 International Priority Airlift (IPA)
 International Surface Airlift (ISAL)
 International Direct Sacks--M-Bags
 Global Customized Shipping Services
 International Money Transfer Service
 Inbound Surface Parcel Post (at non-UPU rates)
 International Ancillary Services
 International Certificate of Mailing
 International Registered Mail
 International Return Receipt
 International Restricted Delivery
 International Insurance
 Negotiated Service Agreements
 Domestic
 Outbound International

[[Page 436]]

           Part C--Glossary of Terms and Conditions [Reserved]

      Part D--Country Price Lists for International Mail [Reserved]

[77 FR 13198, Mar. 6, 2012]



Subpart B_Requests Initiated by the Postal Service To Modify the Product 
         Lists Described Within the Mail Classification Schedule



Sec. 3020.30  General.

    The Postal Service, by filing a request with the Commission, may 
propose a modification to the market dominant product list or the 
competitive product list appearing in the Mail Classification Schedule. 
For purposes of this part, modification shall be defined as adding a 
product to a list, removing a product from a list, or moving a product 
from one list to the other list.



Sec. 3020.31  Contents of a request.

    A request to modify the market dominant product list or the 
competitive product list shall:
    (a) Provide the name, and class if applicable, of each product that 
is the subject of the request;
    (b) Provide a copy of the Governor's decision supporting the 
request, if any;
    (c) Indicate whether the request proposes to add a product to the 
market dominant list or the competitive list, remove a product from the 
market dominant list or the competitive list, or transfer a product from 
the market dominant list to the competitive list or from the competitive 
list to the market dominant list;
    (d) Indicate whether each product that is the subject of the request 
is:
    (1) A special classification within the meaning of 39 U.S.C. 
3622(c)(10) for market dominant products;
    (2) A product not of general applicability within the meaning of 39 
U.S.C. 3632(b)(3) for competitive products; or
    (3) A non-postal product.
    (e) Provide all supporting justification upon which the Postal 
Service proposes to rely; and
    (f) Include a copy of the applicable sections of the Mail 
Classification Schedule and the proposed changes therein in legislative 
format.



Sec. 3020.32  Supporting justification.

    Supporting justification shall be in the form of a statement from 
one or more knowledgeable Postal Service official(s) who sponsors the 
request and 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 applicable criteria of chapter 36 of title 39 of the United 
States Code;
    (b) Explain why, as to market dominant products, the change is not 
inconsistent with each requirement of 39 U.S.C. 3622(d), and that it 
advances the objectives of 39 U.S.C. 3622(b), taking into account the 
factors of 39 U.S.C. 3622(c);
    (c) Explain why, as to competitive products, the addition, deletion, 
or transfer will not result in the violation of any of the standards of 
39 U.S.C. 3633;
    (d) Verify that the change does not classify as competitive a 
product over which the Postal Service exercises sufficient market power 
that it can, without risk of losing a significant level of business to 
other firms offering similar products:
    (1) Set the price of such product substantially above costs;
    (2) Raise prices significantly;
    (3) Decrease quality; or
    (4) Decrease output.
    (e) Explain whether or not each product that is the subject of the 
request is covered by the postal monopoly as reserved to the Postal 
Service under 18 U.S.C. 1696 subject to the exceptions set forth in 39 
U.S.C. 601;
    (f) Provide a description of the availability and nature of 
enterprises in the private sector engaged in the delivery of the 
product;
    (g) Provide any information available on the views of those who use 
the product on the appropriateness of the proposed modification;
    (h) Provide a description of the likely impact of the proposed 
modification on small business concerns; and
    (i) Include such information and data, and such statements of 
reasons

[[Page 437]]

and bases, as are necessary and appropriate to fully inform the 
Commission of the nature, scope, significance, and impact of the 
proposed modification.



Sec. 3020.33  Docket and notice.

    The Commission will establish a docket for each request to modify 
the market dominant list or the competitive product list, promptly 
publish notice of the request in the Federal Register, and post the 
filing on its Web site. The notice shall include:
    (a) The general nature of the proceeding;
    (b) A reference to legal authority to which the proceeding is to be 
conducted;
    (c) A concise description of the proposals for changes in the Mail 
Classification Schedule;
    (d) The identification of an officer of the Commission to represent 
the interests of the general public in the docket;
    (e) A specified period for public comment; and
    (f) Such other information as the Commission deems appropriate.



Sec. 3020.34  Review.

    The Commission shall review the request and responsive comments. The 
Commission shall either:
    (a) Approve the request to modify the market dominant and 
competitive product lists;
    (b) Institute further proceedings to consider all or part of the 
request if it finds that there is substantial likelihood that the 
modification is inconsistent with statutory policies or Commission 
rules, and explain its reasons for not approving the request to modify 
the market dominant and competitive product lists;
    (c) Provide an opportunity for the Postal Service to modify its 
request; or
    (d) Direct other action as the Commission may consider appropriate.



Sec. 3020.35  Further proceedings.

    If the Commission determines that further proceedings are necessary, 
a conference shall be scheduled to consider the concerns expressed by 
the Commission. Written statements commenting on the Commission's 
concerns shall be requested, to be filed 7 days prior to the conference. 
Upon conclusion of the conference, the Commission shall promptly issue a 
ruling to:
    (a) Provide for a period of discovery to obtain further information;
    (b) Schedule a hearing on the record for further consideration of 
the request;
    (c) Explain the reasons for not going forward with additional 
proceedings and approve the request to modify the market dominant and 
competitive product lists; or
    (d) Direct other action as the Commission may consider appropriate.



Subpart C_Requests Initiated by Users of the Mail To Modify the Product 
         Lists Described Within the Mail Classification Schedule



Sec. 3020.50  General.

    Users of the mail, by filing a request with the Commission, may 
propose a modification to the market dominant product list or the 
competitive product list appearing in the Mail Classification Schedule. 
For purposes of this part, modification shall be defined as adding a 
product to a list, removing a product from a list, or transferring a 
product from one list to the other list.



Sec. 3020.51  Contents of a request.

    A request to modify the market dominant product list or the 
competitive product list shall:
    (a) Provide the name, and class if applicable, of each product that 
is the subject of the request;
    (b) Indicate whether the request proposes to add a product to the 
market dominant list or the competitive list, remove a product from the 
market dominant list or the competitive list, or move a product from the 
market dominant list to the competitive list or from the competitive 
list to the market dominant list;
    (c) Indicate whether each product that is the subject of the request 
is:
    (1) A special classification within the meaning of 39 U.S.C. 
3622(c)(10) for market dominant products;
    (2) A product not of general applicability within the meaning of 39 
U.S.C. 3632(b) for competitive products; or
    (3) A non-postal product.

[[Page 438]]

    (d) Provide all supporting justification upon which the proponent of 
the request proposes to rely; and
    (e) Include a copy of the applicable sections of the Mail 
Classification Schedule and the proposed changes therein in legislative 
format.



Sec. 3020.52  Supporting justification.

    Supporting justification shall be in the form of a statement from a 
knowledgeable proponent of the request who 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 applicable criteria of chapter 36 of 39 U.S.C.;
    (b) Explain why, as to market dominant products, the change is not 
inconsistent with each requirement of 39 U.S.C. 3622(d), and that it 
advances the objectives of 39 U.S.C. 3622(b), taking into account the 
factors of 39 U.S.C. 3622(c);
    (c) Explain why, as to competitive products, the addition, deletion, 
or transfer will not result in the violation of any of the standards of 
39 U.S.C. 3633.
    (d) Verify that the change does not classify as competitive a 
product over which the Postal Service exercises sufficient market power 
that it can, without risk of losing a significant level of business to 
other firms offering similar products:
    (1) Set the price of such product substantially above costs;
    (2) Raise prices significantly;
    (3) Decrease quality; or
    (4) Decrease output.
    (e) Explain whether or not each product that is the subject of the 
request is covered by the postal monopoly, as reserved to the Postal 
Service under 18 U.S.C. 1696 subject to the exceptions set forth in 39 
U.S.C. 601;
    (f) Provide a description of the availability and nature of 
enterprises in the private sector engaged in the delivery of the 
product;
    (g) Provide any information available on the views of those who use 
the product on the appropriateness of the proposed modification;
    (h) Provide a description of the likely impact of the proposed 
modification on small business concerns; and
    (i) Include such information and data, and such statements of 
reasons and bases, as are necessary and appropriate to fully inform the 
Commission of the nature, scope, significance, and impact of the 
proposed modification.



Sec. 3020.53  Docket and notice.

    The Commission will establish a docket for each request to modify 
the market dominant list or the competitive product list, promptly 
publish notice of the request in the Federal Register, and post the 
filing on its Web site. The notice shall include:
    (a) The general nature of the proceeding;
    (b) A reference to legal authority to which the proceeding is to be 
conducted;
    (c) A concise description of the proposals for changes in the Mail 
Classification Schedule;
    (d) The identification of an Office of the Commission to represent 
the interests of the general public in the docket;
    (e) A specified period for public comment; and
    (f) Such other information as the Commission deems appropriate.



Sec. 3020.54  Postal Service notice and reply.

    The Secretary of the Commission shall forward to the Postal Service 
a copy of the request. Within 28 days of the filing of the request, the 
Postal Service shall provide its preliminary views in regard to the 
request. The Postal Service may include suggestions for appropriate 
Commission action in response to the request.



Sec. 3020.55  Review.

    The Commission shall review the request, the Postal Service reply, 
and any public comment to determine whether the proposed modification to 
the market dominant and competitive product lists complies with 
applicable statutory requirements and the Commission's rules, and 
whether the proposed modification is consistent with the position of the 
Postal Service as expressed in its reply. The Commission shall either:

[[Page 439]]

    (a) Approve the request to modify the market dominant and 
competitive product lists, but only to the extent the modification is 
consistent with the position of the Postal Service;
    (b) Reject the request;
    (c) Institute further proceedings to consider the request to modify 
the market dominant and competitive product lists; or
    (d) Direct other action as the Commission may consider appropriate.



Sec. 3020.56  Further proceedings.

    If the Commission determines that further proceedings are necessary, 
a conference shall be scheduled to consider the merits of going forward 
with the request. Upon conclusion of the conference, the Commission 
shall promptly issue a ruling to:
    (a) Provide for a period of discovery to obtain further information;
    (b) Schedule a hearing on the record for further consideration of 
the request;
    (c) Explain the reasons for not going forward with formal 
proceedings; or
    (d) Direct other action as the Commission may consider appropriate.



    Subpart D_Proposal of the Commission To Modify the Product Lists 
            Described Within the Mail Classification Schedule



Sec. 3020.70  General.

    The Commission, of its own initiative, may propose a modification to 
the market dominant product list or the competitive product list 
provided within the Mail Classification Schedule. For purposes of this 
part, modification shall be defined as adding a product to a list, 
removing a product from a list, or transferring a product from one list 
to the other list.



Sec. 3020.71  Contents of a proposal.

    A proposal to modify the market dominant product list or the 
competitive product list shall:
    (a) Provide the name, and class if applicable, of each product that 
is the subject of the proposal;
    (b) Indicate whether the proposal would add a product to the market 
dominant list or the competitive list, remove a product from the market 
dominant list or the competitive list, or move a product from the market 
dominant list to the competitive list or from the competitive list to 
the market dominant list;
    (c) Indicate whether each product that is the subject of the 
proposal is:
    (1) A special classification within the meaning of 39 U.S.C. 
3622(c)(10) for market dominant products;
    (2) A product not of general applicability within the meaning of 39 
U.S.C. 3632(b) for competitive products; or
    (3) A non-postal product.
    (d) Provide justification supporting the proposal; and
    (e) Include a copy of the applicable sections of the Mail 
Classification Schedule and the proposed changes therein in legislative 
format.



Sec. 3020.72  Supporting justification.

    Supporting justification shall:
    (a) Provide an explanation for initiating the docket;
    (b) Explain why, as to market dominant products, the change is not 
inconsistent with each requirement of 39 U.S.C. 3622(d), and that it 
advances the objectives of 39 U.S.C. 3622(b), taking into account the 
factors of 39 U.S.C. 3622(c);
    (c) Explain why, as to competitive products, the addition, 
subtraction, or transfer will not result in the violation of any of the 
standards of 39 U.S.C. 3633;
    (d) Verify that the change does not classify as competitive a 
product over which the Postal Service exercises sufficient market power 
that it can, without risk of losing a significant level of business to 
other firms offering similar products:
    (1) Set the price of such product substantially above costs;
    (2) Raise prices significantly;
    (3) Decrease quality; or
    (4) Decrease output.
    (e) Explain whether or not each product that is the subject of the 
request is covered by the postal monopoly as reserved to the Postal 
Service under 18 U.S.C. 1696 subject to the exceptions set forth in 39 
U.S.C. 601;
    (f) Provide a description of the availability and nature of 
enterprises in the

[[Page 440]]

private sector engaged in the delivery of the product;
    (g) Provide any information available on the views of those who use 
the product involved on the appropriateness of the proposed 
modification;
    (h) Provide a description of the likely impact of the proposed 
modification on small business concerns; and
    (i) Include such information and data, and such statements of 
reasons and bases, as are necessary and appropriate to fully inform the 
Postal Service and users of the mail of the nature, scope, significance, 
and impact of the proposed modification.



Sec. 3020.73  Docket and notice.

    The Commission will establish a docket for each request to modify 
the market dominant list or the competitive product list, promptly 
publish notice of the request in the Federal Register, and post the 
filing on its Web site. The notice shall include:
    (a) The general nature of the proceeding;
    (b) A reference to legal authority to which the proceeding is to be 
conducted;
    (c) A concise description of the proposals for changes in the Mail 
Classification Schedule;
    (d) The identification of an officer of the Commission to represent 
the interests of the general public in the docket;
    (e) A specified period for public comment; and
    (f) Such other information as the Commission deems appropriate.



Sec. 3020.74  Postal Service notice and reply.

    The Secretary of the Commission shall forward to the Postal Service 
a copy of the notice of proposal. Within 28 days of the filing of the 
proposal, the Postal Service shall provide its preliminary views in 
regard to the proposal. The Postal Service may include suggestions for 
appropriate further procedural steps.



Sec. 3020.75  Review.

    The Commission shall review the Postal Service reply and public 
comment. The Commission shall either:
    (a) Approve the proposal to modify the market dominant and 
competitive product lists, but only to the extent the modification is 
consistent with the position of the Postal Service;
    (b) Withdraw the proposal;
    (c) Institute further proceedings to consider the proposal, 
identifying relevant issues that may require further development; or
    (d) Direct other action as the Commission may consider appropriate.



Sec. 3020.76  Further proceedings.

    If the Commission determines that further proceedings are 
appropriate, a conference shall be scheduled to consider the merits of 
going forward with the proposal. Upon conclusion of the conference, the 
Commission shall promptly issue a ruling to:
    (a) Provide for a period of discovery to obtain further information;
    (b) Schedule a hearing on the record for further consideration of 
the proposal;
    (c) Explain the reasons for not going forward with formal 
proceedings; or
    (d) Direct other action as the Commission may consider appropriate.



 Subpart E_Requests Initiated by the Postal Service to Change the Mail 
                         Classification Schedule



Sec. 3020.90  General.

    The Postal Service shall assure that product descriptions in the 
Mail Classification Schedule accurately represent the current offerings 
of Postal Service products and services.



Sec. 3020.91  Modification.

    The Postal Service shall submit corrections to product descriptions 
in the Mail Classification Schedule that do not constitute a proposal to 
modify the market dominant product list or the competitive product list 
as defined in Sec. 3020.30 by filing notice of the proposed change with 
the Commission no later than 15 days prior to the effective date of the 
proposed change.

[73 FR 6427, Feb. 4, 2008]



Sec. 3020.92  Public input.

    The Commission shall publish Postal Service submissions pursuant to

[[Page 441]]

Sec. 3020.91 on its Web site and provide interested persons with an 
opportunity to comment on whether the planned changes are inconsistent 
with 39 U.S.C. 3642.



Sec. 3020.93  Implementation.

    (a) The Commission shall review the proposed changes to product 
descriptions, and the comments thereon. So long as such changes are not 
inconsistent with 39 U.S.C. 3642, the Commission shall, subject to 
editorial corrections, change the Mail Classification Schedule to 
coincide with the effective date of the proposed change.
    (b) The Commission's finding that changes to the product 
descriptions are not inconsistent with 39 U.S.C. 3642 is provisional and 
subject to subsequent review.

[72 FR 63698, Nov. 9, 2007, as amended at 73 FR 6427, Feb 4, 2008]



          Subpart F_Size and Weight Limitations for Mail Matter



Sec. 3020.110  General.

    Applicable size and weight limitations for mail matter shall appear 
in the Mail Classification Schedule as part of the description of each 
product.



Sec. 3020.111  Limitations applicable to market dominant mail matter.

    (a) The Postal Service shall inform the Commission of updates to 
size and weight limitations for market dominant mail matter by filing 
notice with the Commission 45 days prior to the effective date of the 
proposed update. The notice shall include a copy of the applicable 
sections of the Mail Classification Schedule and the proposed updates 
therein in legislative format.
    (b) The Commission shall provide notice of the proposed update in 
the Federal Register and seek public comment on whether the proposed 
update is in accordance with the policies and the applicable criteria of 
chapter 36 of title 39 of the United States Code.
    (c) If the Commission finds the proposed update in accordance with 
the policies and the applicable criteria of chapter 36 of 39 U.S.C., the 
Commission shall review the proposed Mail Classification Schedule 
language for formatting and conformance with the structure of the Mail 
Classification Schedule, and subject to editorial changes, shall change 
the Mail Classification Schedule to coincide with the effective date of 
the proposed update.
    (d) If the Commission finds the proposed update not in accordance 
with the policies and the applicable criteria of chapter 36 of title 39 
of the United States Code, the Commission may direct other action as 
deemed appropriate.



Sec. 3020.112  Limitations applicable to competitive mail matter.

    The Postal Service shall notify the Commission of updates to size 
and weight limitations for competitive mail matter pursuant to subpart E 
of this part.



PART 3025_RULES FOR APPEALS OF POSTAL SERVICE DETERMINATIONS TO CLOSE 
OR CONSOLIDATE POST OFFICES--Table of Contents



Sec.
3025.1 Definitions.
3025.2 Applicability.
3025.3 Notice by the Postal Service.
3025.10 Starting an appeal.
3025.11 Submitting an appeal and other documents.
3025.12 Duplicate appeals.
3025.13 Deadlines for appeals.
3025.14 Participation by others.
3025.20 The record on review.
3025.21 Filing of the administrative record.
3025.22 Making documents available for inspection by the public.
3025.30 Suspension pending review.
3025.40 Participant statement.
3025.41 Due date for participant statement.
3025.42 Due date for Postal Service response.
3025.43 Due date for replies to the Postal Service.

    Authority: 39 U.S.C. 404(d).

    Source: 77 FR 6679, Feb. 9, 2012, unless otherwise noted.



Sec. 3025.1  Definitions.

    The following definitions apply in this part:
    (a) Final determination means the written determination and findings 
required by 39 U.S.C. 404(d)(3).
    (b) Petitioner means a person who files a Petition for Review.

[[Page 442]]

    (c) Petition for Review means a written document that the Commission 
accepts as an appeal of a post office closing or consolidation.



Sec. 3025.2  Applicability.

    (a) The rules in this part apply when:
    (1) The Postal Service decides to close or consolidate a post 
office, and
    (2) A patron of that post office appeals the closing or 
consolidation.
    (b) The following sections in part 3001, subpart A of this chapter, 
apply to appeals of post office closings or consolidations: Sec. Sec. 
3001.1 through 3001.9 of this chapter; Sec. 3001.11(a) of this chapter, 
Sec. 3001.11(c) through (f) of this chapter; Sec. Sec. 3001.12 through 
3001.17 of this chapter; and Sec. Sec. 3001.21 and 3001.22 of this 
chapter.
    (c) Answers to motions filed by the Postal Service are due within 10 
days. Sec. 3025.3 Notice by the Postal Service.
    (a) Pursuant to section 404(d) of title 39, United States Code, any 
decision to close or consolidate a post office must be preceded by 60 
days' notice to persons served by such post office, the opportunity for 
such persons to present their views, and a written determination based 
upon consideration of each of the factors listed in section 404(d)(2) of 
title 39, United States Code.
    (b) This notice must include a provision stating that, pursuant to 
section 404(d)(5) of title 39, United States Code, a final Postal 
Service determination to close or consolidate a post office may be 
appealed by any person served by such office to the Postal Regulatory 
Commission at 901 New York Avenue NW., Suite 200, Washington, DC 20268-
0001, within 30 days after such determination is made available to such 
person by the Postal Service.



Sec. 3025.10  Starting an appeal.

    (a) A Postal Service decision to close or consolidate a post office 
may be appealed only by a person served by that office. An appeal is 
commenced by submitting a Petition for Review to the Postal Regulatory 
Commission.
    (b) The Petition for Review must state that the person(s) submitting 
it is/are served by the post office that the Postal Service has decided 
to close or consolidate. The petition should include the name(s) and 
address(es) of the person(s) filing it and the name or location of the 
post office to be closed or consolidated. A petitioner may include other 
information deemed pertinent.



Sec. 3025.11  Submitting an appeal and other documents.

    Petitions for Review, comments, motions, answers, and other 
documents may be submitted by persons other than the Postal Service by 
mail, electronically through the Commission's Web site, http://
www.prc.gov, or by delivery to the Commission's offices at 901 New York 
Avenue NW., Suite 200, Washington, DC 20268-0001.



Sec. 3025.12  Duplicate appeals.

    If the Commission receives more than one Petition for Review of the 
same post office closing or consolidation, the petitions will be 
considered in a single docket.



Sec. 3025.13  Deadlines for appeals.

    (a) In general. If the Postal Service has issued a final 
determination to close or consolidate a post office, an appeal is due 
within 30 days of the final determination being made available in 
conformance with Sec. 3025.3(b).
    (b) Appeals sent by mail. If sent by mail, a Petition for Review 
must be postmarked no later than 30 days after the final determination 
has been made available.
    (c) Appeals sent by other physical delivery. If sent by some other 
form of physical delivery, a Petition for Review must be received in the 
Commission's Docket Section no later than 4:30 p.m., eastern time, on 
the 30th day after the final determination has been made available.
    (d) Appeals sent electronically. If submitted electronically, a 
Petition for Review must be received in the Commission's Docket Section 
no later than 4:30 p.m., eastern time, on the 30th day after the final 
determination has been made available.



Sec. 3025.14  Participation by others.

    (a) A person served by the post office to be closed or consolidated 
pursuant to the Postal Service written determination under review who 
desires to intervene in the proceeding, or any

[[Page 443]]

other interested person, or any counsel, agent, or other person 
authorized or recognized by the Postal Service as such interested 
person's representative or the representative of such interested 
person's recognized group, such as Postmasters, may participate in an 
appeal by sending written comments to the Postal Regulatory Commission 
in the manner described in Sec. 3025.11.
    (b) Persons may submit comments supporting or opposing a Commission 
order returning the entire matter to the Postal Service for further 
consideration. Comments must be filed in accordance with the deadlines 
established in Sec. Sec. 3025.41 through 3025.43. Commenters may use 
PRC Form 61, which is available on the Commission's Web site, http://
www.prc.gov.



Sec. 3025.20  The record on review.

    (a) The record on review includes:
    (1) The final determination;
    (2) The notices to persons served by the post office to be closed or 
consolidated;
    (3) The administrative record; and
    (4) All documents submitted in the appeal proceeding.
    (b) The record shall contain all evidence considered by the Postal 
Service in making its determination and shall contain no evidence not 
previously considered by the Postal Service.



Sec. 3025.21  Filing of the administrative record.

    The Postal Service shall file the administrative record within 10 
days of the date of posting of a Petition for Review on the Commission's 
Web site. The Commission may alter this time for good cause. The 
Secretary will notify participants that they may view the administrative 
record at post offices where the final determination was posted.



Sec. 3025.22  Making documents available for inspection by the public.

    Copies of all filings (including the administrative record) related 
to an appeal shall be available for public inspection at the post 
offices where the final determination was posted. The Secretary will 
notify participants that they may view copies of filings at post offices 
where the final determination was posted.



Sec. 3025.30  Suspension pending review.

    (a) Application. Application for suspension of a determination of 
the Postal Service to close or consolidate any post office pending the 
outcome of an appeal to the Postal Regulatory Commission shall be made 
at the time of the filing of a Petition for Review. The application 
shall show the reasons for the relief requested and the facts relied 
upon, and if the facts are subject to dispute the application shall be 
supported by affidavits or other sworn statements or copies thereof. The 
applicant must be a person served by the affected post office. Immediate 
notice of the application shall be given to all parties to the 
proceeding. The application shall be filed with the Secretary of the 
Commission.
    (b) Answer and filing of the relevant record by the Postal Service. 
Within 10 days after the application for suspension is filed, the Postal 
Service shall file with the Secretary of the Commission and serve on the 
petitioners an answer to the application supported by affidavits or 
other sworn statements or copies thereof.



Sec. 3025.40  Participant statement.

    (a) When a timely Petition for Review of a decision to close or 
consolidate a post office is filed, the Secretary shall furnish 
petitioner with a copy of PRC Form 61. This form is designed to inform 
petitioners on how to make a statement of his/her arguments in support 
of the petition.
    (b) The instructions for PRC Form 61 shall provide:
    (1) A concise explanation of the purpose of the form;
    (2) A copy of section 404(d)(2)(A) of title 39, United States Code; 
and
    (3) Notification that, if petitioner prefers, he or she may file a 
brief in lieu of or in addition to completing PRC Form 61.



Sec. 3025.41  Due date for participant statement.

    The statement or brief of petitioner and of any other participant 
seeking to have the Commission return the entire

[[Page 444]]

matter to the Postal Service for further consideration, shall be filed 
not more than 20 days after the filing of the administrative record.



Sec. 3025.42  Due date for Postal Service response.

    The statement or brief of the Postal Service, and of any other 
participant opposing return of the matter for further consideration, 
shall be filed not more than 14 days after the date for filing of 
petitioner's statement.



Sec. 3025.43  Due date for replies to the Postal Service.

    Petitioner, and any other participant seeking to have the Commission 
return the matter for further consideration, may file a reply to the 
Postal Service response not more than 10 days after the date of the 
Postal Service response. Replies are limited to issues discussed in the 
responses of the Postal Service and other participants seeking 
affirmation of the Postal Service determination.



PART 3030_RULES FOR COMPLAINTS--Table of Contents



                            Subpart A_General

Sec.
3030.1 Applicability.
3030.2 Scope and nature of complaints.

       Subpart B_Form and Manner Requirements of Initial Pleadings

3030.10 Complaint contents.
3030.11 Service.
3030.12 Pleadings filed in response to a complaint.
3030.13 Conditions for applying rate or service inquiry procedures to 
          complaints.
3030.14 Answer contents.

                   Subpart C_Supplemental Information

3030.20 Sufficiency of information.
3030.21 Investigator.

                          Subpart D_Proceedings

3030.30 Beginning proceedings on complaints.

                          Subpart E_Settlement

3030.40 Policy on settlement.
3030.41 Satisfaction.

             Subpart F_Commission Determinations and Relief

3030.50 Remedies.

    Authority: 39 U.S.C. 503; 3662.

    Source: 74 FR 16744, Apr. 10, 2009, unless otherwise noted.



                            Subpart A_General



Sec. 3030.1  Applicability.

    (a) The rules in this part govern the procedure for complaints filed 
under 39 U.S.C. 3662 that meet the form and manner requirements of 
subpart B of this part. Part 3001, subpart A of this chapter, applies 
unless otherwise stated in this part or otherwise ordered by the 
Commission.
    (b) Sections 3001.25 through 27 of this chapter and Sec. 3001.33 of 
this chapter do not apply to this part unless and until the Commission 
makes a finding under Sec. 3030.30(a)(1) that the complaint raises 
material issues of fact or law.



Sec. 3030.2  Scope and nature of complaints.

    Any interested person (including a duly appointed officer of the 
Commission representing the interests of the general public) may file a 
written complaint with the Commission if that person believes that the 
Postal Service is not operating in conformance with:
    (a) The provisions of 39 U.S.C. chapter 36, or 39 U.S.C. 101(d), 
401(2), 403(c), 404a, or 601; or
    (b) Any rule, order, or other regulatory requirement based on any of 
these statutory provisions.



       Subpart B_Form and Manner Requirements of Initial Pleadings



Sec. 3030.10  Complaint contents.

    (a) A complaint must:
    (1) Set forth the facts and circumstances that give rise to the 
complaint;
    (2) Clearly identify and explain how the Postal Service action or 
inaction violates applicable statutory standards or regulatory 
requirements including citations to the relied upon section or sections 
of title 39, order, regulation, or other regulatory requirements;

[[Page 445]]

    (3) Set forth the business, commercial, economic or other issues 
presented by the action or inaction as such relate to the complainant;
    (4) Include a description of persons or classes of persons known or 
believed to be similarly affected by the issues involved in the 
complaint, if applicable;
    (5) State the nature of the evidentiary support that the complainant 
has or expects to obtain during discovery to support the facts alleged 
in the complaint;
    (6) Include an explanation as to why such facts could not reasonably 
be ascertained by the complainant where claims are premised on 
information and belief;
    (7) State whether the issues presented are pending in or have been 
resolved by an existing Commission proceeding or a proceeding in any 
other forum in which the complainant is a party; and if so, provide an 
explanation why timely resolution cannot be achieved in that forum;
    (8) State the specific relief or remedy requested and the basis for 
that relief; and
    (9) Include a certification that states that prior to filing, the 
complainant attempted to meet or confer with the Postal Service's 
general counsel to resolve or settle the complaint, why the complainant 
believes additional such steps would be inadequate, and the reasons for 
that belief; and
    (10) Include a certification that the complaint has been served on 
the United States Postal Service as required by Sec. 3030.11.
    (b) The Commission may waive any of the requirements listed in 
paragraph (a) of this section to serve the interests of justice.



Sec. 3030.11  Service.

    Any person filing a complaint must simultaneously serve a copy of 
the complaint on the Postal Service at the following address: 
[email protected]. A complaint is not deemed filed until it is 
served on the Postal Service. A waiver may be obtained pursuant to Sec. 
3001.9(a) of this chapter.

[74 FR 54755, Oct. 23, 2009]



Sec. 3030.12  Pleadings filed in response to a complaint.

    (a) Unless otherwise ordered by the Commission, the Postal Service 
shall file its answer to a complaint within 20 days after the complaint 
is filed.
    (b) If appropriate, the Postal Service may file a dispositive motion 
or otherwise move to delay disposition of the complaint. If the Postal 
Service files such a motion, unless otherwise ordered by the Commission, 
the period of time for filing its answer is altered as follows:
    (1) If the Commission denies the motion or postpones disposition, 
the answer is due within 10 days of the Commission's action; or
    (2) If the Commission invokes the rate or service inquiry special 
procedures under Sec. 3030.13 to the complaint, the answer is due 
contemporaneously with the Postal Service's report under Sec. 3031.11 
of this chapter if the complaint has not been resolved by that date.
    (c) If the Postal Service answer is delayed by the filing of a 
motion under paragraph (b) of this section, it may not obtain a further 
delay by filing another motion under paragraph (b) of this section 
raising an issue or objection that was available to the Postal Service 
but omitted from its earlier motion.



Sec. 3030.13  Conditions for applying rate or service inquiry procedures
to complaints.

    (a) This section applies to complaints that concern rate or service 
matters that are isolated incidents affecting few mail users provided 
that the complaint does not either:
    (1) Raise unfair competition issues;
    (2) Raise issues affecting a significant number of mail users;
    (3) Represent a pattern, practice, or systemic issue that affects a 
significant number of mail users (or is reasonably likely to be evidence 
that such a pattern has begun); or
    (4) Impact a substantial region of the nation.
    (b) The Commission may in its discretion, sua sponte, attempt to 
resolve a complaint through the rate or service inquiry procedures of 
Sec. 3031.11 of this chapter if the Commission finds that there is a 
reasonable likelihood that

[[Page 446]]

such procedures may result in resolution of the complaint. The 
Commission will issue an order to apply the procedures of Sec. 3031.11 
of this chapter prior to the due date for the Postal Service answer set 
forth in Sec. 3030.12.
    (c) If the Commission determines that application of paragraph (a) 
of this section is appropriate and the Postal Service is unable to 
resolve the complaint within 45 days, or such other period of time as 
ordered by the Commission, the Postal Service shall file its answer in 
accordance with Sec. 3030.12(b)(2).



Sec. 3030.14  Answer contents.

    (a) An answer must:
    (1) Contain a clear and concise statement of any disputed factual 
allegations upon which the answer relies;
    (2) Contain a clear and concise statement of any legal 
interpretation upon which the answer relies;
    (3) Admit or deny, specifically and with explanatory detail, each 
material factual allegation of the complaint. Denials based on 
information and belief must include an explanation as to why such facts 
could not reasonably be ascertained by the Postal Service prior to 
filing the answer. Each fact alleged in a complaint not thus 
specifically answered shall be deemed to have been admitted;
    (4) Set forth every defense relied upon. The answer shall advise the 
complainant and the Commission fully and completely of the nature of any 
defense, including factual allegations and law upon which the Postal 
Service relies. Affirmative defenses shall be specifically captioned as 
such and presented separately from any denials;
    (5) State the nature of the evidentiary support that the Postal 
Service has or expects to obtain to support its factual allegations and 
defenses; and
    (6) Include a certification that states that prior to the filing of 
its answer, the Postal Service met or conferred with the complainant to 
resolve or settle the complaint, whether the Postal Service believes 
additional such steps would be inappropriate and the reasons for that 
belief.
    (b) The Commission may waive any of the requirements listed in 
paragraph (a) of this section to serve the interests of justice.



                   Subpart C_Supplemental Information



Sec. 3030.20  Sufficiency of information.

    If, after review of the information submitted pursuant to this part, 
the Commission determines that additional information is necessary to 
enable it to evaluate whether the complaint raises material issues of 
fact or law, the Commission shall, in its discretion, either require the 
complainant and/or the Postal Service to provide additional information 
as deemed necessary, issue an appropriate order to appoint an 
investigator in accordance with Sec. 3030.21, or do both.



Sec. 3030.21  Investigator.

    The Commission may appoint an investigator to examine issues raised 
by the complaint and responses thereto. The investigator will use 
appropriate due diligence under the circumstances and provide a public, 
written report to the Commission.



                          Subpart D_Proceedings



Sec. 3030.30  Beginning proceedings on complaints.

    (a) Within 90 days after receiving a properly filed complaint under 
this part, the Commission will issue:
    (1) A notice and order in accordance with Sec. 3001.17 of this 
chapter that finds the complaint raises one or more material issues of 
fact or law and begin proceedings on the complaint; or
    (2) An order dismissing the complaint.
    (b) Orders issued pursuant to paragraph (a) of this section shall 
include the Commission's written statement setting forth the bases of 
its determination.
    (c) Contemporaneously with, or shortly after issuing a notice and 
order under paragraph (a)(1) of this section, the Commission will 
appoint a public representative to represent the interests of the 
general public in the complaint proceeding.

[[Page 447]]



                          Subpart E_Settlement



Sec. 3030.40  Policy on settlement.

    It shall be the general policy and practice of the Commission to 
encourage alternative dispute resolution and settlement of complaints by 
informal procedures, such as correspondence, conferences between the 
parties, and the conduct of proceedings off the record with the consent 
of the parties.



Sec. 3030.41  Satisfaction.

    (a) If a complaint is resolved informally, in whole or in part, 
subsequent to Commission action under Sec. 3030.30(a)(1), the 
complainant must promptly file:
    (1) A statement explaining the resolution; and
    (2) A motion to dismiss or amend the complaint based on the 
resolution.
    (b) The Commission may order the submission of additional 
information before acting on any motion filed under paragraph (a)(2) of 
this section.
    (c) In determining whether to allow the complaint to be dismissed or 
amended under this section, the Commission will take into consideration 
whether the issues raised by the complaint may continue to impact a 
significant segment of the mailing community.



             Subpart F_Commission Determinations and Relief



Sec. 3030.50  Remedies.

    (a) If the Commission finds that a complaint is justified, it will 
order that the Postal Service take such action as the Commission 
determines appropriate to:
    (1) Achieve compliance with the applicable requirements; and
    (2) Remedy the effects of any non-compliance.
    (b) If the Commission finds deliberate non-compliance on the part of 
the Postal Service, the Commission may order, based on the nature, 
circumstances, extent, and seriousness of the non-compliance, a fine for 
each incidence of non-compliance.
    (c) In any case where the Commission is considering the 
extraordinary relief described in paragraph (b) of this section, the 
Commission will provide notice to the participants that such relief is 
being considered. It will allow the participants a reasonable 
opportunity to comment and present aggravating and mitigating factors 
for its consideration.



PART 3031_RULES FOR RATE OR SERVICE INQUIRIES--Table of Contents



         Subpart A_Rate or Service Inquiry Forms and Procedures

Sec.
3031.10 Rate or service inquiry contents.
3031.11 Rate or service inquiry procedures.
3031.12 Treatment as a complaint.

Subpart B [Reserved]

    Authority: 39 U.S.C. 503, 3662.

    Source: 74 FR 16746, Apr. 10, 2009, unless otherwise noted.



         Subpart A_Rate or Service Inquiry Forms and Procedures



Sec. 3031.10  Rate or service inquiry contents.

    (a) A rate or service inquiry shall be in writing and should 
contain:
    (1) The name, address, and telephone number of the inquiring party;
    (2) Details regarding the Postal Service's action or inaction;
    (3) A statement of facts supporting the inquiring party's 
allegations; and
    (4) The specific relief being sought, if any.
    (b) The Commission may waive any of the requirements listed in 
paragraph (a) of this section to serve the interests of justice.



Sec. 3031.11  Rate or service inquiry procedures.

    (a) The Commission will forward rate or service inquiries to the 
Postal Service for investigation. The Postal Service will, within 45 
days of receipt of such inquiry, advise the Commission in writing, with 
a copy to the inquiring party, of its resolution of the inquiry or its 
refusal or inability to do so.
    (b) The Commission will monitor all rate or service inquiries to 
determine if Commission action under Sec. 3031.12 is appropriate.

[[Page 448]]

    (c) Where there are clear indications from the Postal Service's 
report or from other communications between the parties that the inquiry 
has been resolved, the Commission may, in its discretion, consider such 
proceeding to be resolved, without response to the inquiring party.



Sec. 3031.12  Treatment as a complaint.

    If the Commission receives a volume of rate or service inquiries on 
the same or similar issue such that there may be cause to warrant 
treatment as a complaint, it may appoint an investigator to review the 
matter under Sec. 3030.21 of this chapter or appoint a public 
representative representing the interests of the general public to 
pursue the matter.

Subpart B [Reserved]



PART 3050_PERIODIC REPORTING--Table of Contents



Sec.
3050.1 Definitions applicable to this part.
3050.2 Documentation of periodic reports.
3050.3 Access to information supporting Commission reports or 
          evaluations.
3050.10 Analytical principles to be applied in the Postal Service's 
          annual periodic reports to the Commission.
3050.11 Proposals to change an accepted analytical principle applied in 
          the Postal Service's annual periodic reports to the 
          Commission.
3050.12 Obsolescence of special studies relied on to produce the Postal 
          Service's annual periodic reports to the Commission.
3050.13 Additional documentation required in the Postal Service's 
          section 3652 report.
3050.14 Format of the Postal Service's section 3652 report.
3050.20 Compliance and other analyses in the Postal Service's section 
          3652 report.
3050.21 Content of the Postal Service's section 3652 report.
3050.22 Documentation supporting attributable cost estimates in the 
          Postal Service's section 3652 report.
3050.23 Documentation supporting incremental cost estimates in the 
          Postal Service's section 3652 report.
3050.24 Documentation supporting estimates of costs avoided by 
          worksharing and other mail characteristics in the Postal 
          Service's section 3652 report.
3050.25 Volume and revenue data.
3050.26 Documentation of demand elasticities and volume forecasts.
3050.27 Workers' Compensation Report.
3050.28 Monthly and pay period reports.
3050.30 Information needed to estimate the cost of the universal service 
          obligation. [Reserved]
3050.35 Financial reports.
3050.40 Additional financial reporting.
3050.41 Treatment of additional financial reports.
3050.42 Proceedings to improve the quality of financial data.
3050.43 Information on program performance.
3050.60 Miscellaneous reports and documents.

    Authority: 39 U.S.C. 503, 3651, 3652, 3653.

    Source: 74 FR 20850, May 5, 2009, unless otherwise noted.



Sec. 3050.1  Definitions applicable to this part.

    (a) Accepted analytical principle refers to an analytical principle 
that was applied by the Commission in its most recent Annual Compliance 
Determination unless a different analytical principle subsequently was 
accepted by the Commission in a final rule.
    (b) Accepted quantification technique refers to a quantification 
technique that was applied in the most recent iteration of the periodic 
report applying that quantification technique or was used to support a 
new analytical principle adopted in a subsequent rule 3050.11 
proceeding.
    (c) Analytical principle refers to a particular economic, 
mathematical, or statistical theory, precept, or assumption applied by 
the Postal Service in producing a periodic report to the Commission.
    (d) Annual Compliance Determination refers to the report that 39 
U.S.C. 3653 requires the Commission to issue each year evaluating the 
compliance of the Postal Service.
    (e) Annual periodic reports to the Commission refers to all of the 
reports that the Postal Service is required to provide to the Commission 
each year.
    (f) Quantification technique refers to any data entry or 
manipulation technique whose validity does not require the acceptance of 
a particular economic, mathematical, or statistical theory, precept, or 
assumption. A change in quantification technique should not change the 
output of the analysis in which it is employed.

[[Page 449]]

    (g) Section 3652 report refers to the annual compliance report 
provided by the Postal Service to the Commission pursuant to 39 U.S.C. 
3652, but does not include the reports required by 39 U.S.C. 2803 and 
2804.



Sec. 3050.2  Documentation of periodic reports.

    (a) At the time that it submits any periodic report to the 
Commission, the Postal Service shall identify any input data that have 
changed, list any quantification techniques that it has changed, and 
list any corrections that it has made since that report was last 
submitted to and accepted by the Commission. It shall provide a brief 
narrative explanation of each listed change.
    (b) If workpapers are required to support a periodic report, they 
shall:
    (1) Show all calculations employed in producing each estimate;
    (2) Be sufficiently detailed to allow all numbers used in such 
calculations to be traced back to public documents or to primary data 
sources; and
    (3) Be submitted in a form, and be accompanied by sufficient 
explanation and documentation, to allow them to be replicated using a 
publicly available PC application.
    (c) Spreadsheets used in preparing periodic reports shall be 
submitted in electronic form. They shall display the formulas used, 
their links to related spreadsheets, and shall not be password 
protected.
    (d) Filing of portions of the documentation required by paragraphs 
(b) and (c) of this section that are not time critical may be delayed up 
to 2 weeks if the Postal Service obtains permission from the Commission 
to defer filing of such portions at least 30 days prior to the date on 
which the periodic report is due.



Sec. 3050.3  Access to information supporting Commission reports or
evaluations.

    (a) The Commission shall have access to material if, in its 
judgment, the information supports any report, assessment, or evaluation 
required by title 39 of the United States Code, including:
    (1) The working papers and supporting matter of the Postal Service 
or the Postal Service Inspector General in connection with any 
information submitted under 39 U.S.C. 3652; and
    (2) Information that supports the Commission's annual assessment 
under 39 U.S.C. 3651.
    (b) [Reserved]



Sec. 3050.10  Analytical principles to be applied in the Postal 
Service's annual periodic reports to the Commission.

    In its annual periodic reports to the Commission, the Postal Service 
shall use only accepted analytical principles. With respect to its 
submissions under Sec. 3050.26, however, the Postal Service may elect 
to use an analytical principle prior to its acceptance by the 
Commission.



Sec. 3050.11  Proposals to change an accepted analytical principle 
applied in the Postal Service's annual periodic reports to the 

Commission.

    (a) To improve the quality, accuracy, or completeness of the data or 
analysis of data contained in the Postal Service's annual periodic 
reports to the Commission, the Commission, acting on its own behalf, may 
issue a notice of proceeding to change an accepted analytical principle. 
In addition, any interested person, including the Postal Service or a 
public representative, may submit a petition to the Commission to 
initiate such a proceeding.
    (b) Form and content of notice or petition. The notice of proceeding 
or petition shall identify the accepted analytical principle proposed 
for review, explain its perceived deficiencies, and suggest how those 
deficiencies should be remedied.
    (1) If the notice of proceeding or petition proposes that a specific 
alternative analytical principle be followed, it should include the 
data, analysis, and documentation on which the proposal is based, and, 
where feasible, include an estimate of the impact of the proposed change 
on the relevant characteristics of affected postal products, including 
their attributable cost, avoided cost, average revenue, or service 
attainment.
    (2) If the petitioner requests access to data from the Postal 
Service to support the assertions or conclusions in

[[Page 450]]

its petition, and such data are not otherwise available, it shall 
accompany the petition with a request to gain access to such data. The 
petitioner's request should identify the data sought, and include the 
reasons for believing that the data will support its petition. To 
expedite its evaluation of the data request, the Commission may, after 
reasonable public notice, order that answers or objections be presented 
orally or in writing.
    (c) Procedures for processing a notice or petition. To better 
evaluate a notice or petition to change an accepted analytical 
principle, the Commission may order that it be made the subject of 
discovery. By request of any interested person, or on its own behalf, 
the Commission may order that the petitioner and/or the Postal Service 
provide experts on the subject matter of the proposal to participate in 
technical conferences, prepare statements clarifying or supplementing 
their views, or answer questions posed by the Commission or its 
representatives.
    (d) Action on the notice or petition. (1) After the conclusion of 
discovery procedures, if any, the Commission shall determine whether to 
issue a notice of proposed rulemaking based on the petition and the 
supporting material received. Such notice shall be evaluated by 
procedures that are consistent with 5 U.S.C. 553. Interested parties 
will be afforded an opportunity to present written comments and reply 
comments, and, if the Commission so orders, to present oral comments as 
well.
    (2) If accepted by the Commission, the change proposed in the notice 
of proposed rulemaking shall be published in a final rule in the Federal 
Register and on the Commission's Web site.



Sec. 3050.12  Obsolescence of special studies relied on to produce the
Postal Service's annual periodic reports to the Commission.

    The Postal Service shall provide a list of special studies whose 
results are used to produce the estimates in its annual periodic reports 
to the Commission. It shall indicate the date the study was completed 
and whether the study reflects current operating conditions and 
procedures. The Postal Service shall update the list annually.



Sec. 3050.13  Additional documentation required in the Postal Service's
section 3652 report.

    At the time the Postal Service files its section 3652 report, it 
shall include a brief narrative explanation of any changes to accepted 
analytical principles that have been made since the most recent Annual 
Compliance Determination was issued and the reasons that those changes 
were accepted.



Sec. 3050.14  Format of the Postal Service's section 3652 report.

    The Postal Service's Cost and Revenue Analysis (CRA) report shall be 
presented in a format reflecting the classification structure in the 
Mail Classification Schedule. It shall also be presented in an 
alternative, more disaggregated format capable of reflecting the 
classification structure in effect prior to the adoption of the Postal 
Accountability and Enhancement Act.



Sec. 3050.20  Compliance and other analyses in the Postal Service's 
section 3652 report.

    (a) The Postal Service's section 3652 report shall include an 
analysis of the information that it contains in sufficient detail to 
demonstrate the degree to which, in the fiscal year covered by its 
report, each of its products (market dominant and competitive) comply 
with all of the applicable provisions of title 39 of the United States 
Code and the regulations promulgated thereunder, and promote the public 
policy objectives set out in title 39 of the United States Code.
    (b) Its analysis shall be applied to products individually, and, 
where appropriate, to products collectively.
    (c) It shall address such matters as non-compensatory rates, 
discounts greater than avoided costs, and failures to achieve stated 
goals for on-time delivery standards. A more detailed analysis is 
required when the Commission observed and commented upon the same matter 
in its Annual Compliance Determination for the previous fiscal year.

[[Page 451]]



Sec. 3050.21  Content of the Postal Service's section 3652 report.

    (a) No later than 90 days after the close of each fiscal year, the 
Postal Service shall submit a report to the Commission analyzing its 
cost, volume, revenue, rate, and service information in sufficient 
detail to demonstrate that all products during such year comply with all 
applicable provisions of title 39 of the United States Code. The report 
shall provide the items in paragraphs (b) through (j) of this section.
    (b) The volume and revenue generated by each product;
    (c) The attributable costs of, and the contribution to institutional 
costs made by, each product;
    (d) The quality of service received by each market dominant product, 
including the speed of delivery and the reliability of delivery;
    (e) For each market dominant workshare discount offered during the 
reporting year:
    (1) The per-item cost avoided by the Postal Service by virtue of 
such discount;
    (2) The percentage of such per-item cost avoided that the per-item 
workshare discount represents;
    (3) The per-item contribution made to institutional costs; and
    (4) The factual and analytical bases for its conclusion that one or 
more of the exception provisions of 39 U.S.C. 3622(e)(2)(A) through (D) 
apply.
    (f) For each market dominant negotiated service agreement:
    (1) Identify its rates and service features;
    (2) Estimate its costs, volumes, and revenues;
    (3) Analyze its effect on the operational performance of the Postal 
Service, specifying the affected operations and, to the extent possible, 
quantifying the effect;
    (4) Analyze the contribution of the agreement to institutional costs 
for its most recent year of operation. The year analyzed shall end on 
the anniversary of the negotiated service agreement that falls within 
the fiscal year covered by the Postal Service's annual periodic reports 
to the Commission and include the 12 preceding months. The analysis 
shall show all calculations and fully identify all inputs. Inputs used 
to estimate the effect on total contribution to the Postal Service, such 
as unit costs and price elasticities, shall be updated using fiscal year 
values; and
    (5) Analyze the effect of the negotiated service agreement (and 
other functionally equivalent negotiated service agreements) on the 
marketplace. If there were harmful effects, explain why those effects 
were not unreasonable.
    (g) For each competitive negotiated service agreement:
    (1) Identify its rates and service features; and
    (2) Estimate its costs, volumes, and revenues.
    (h) For market tests of experimental products:
    (1) Estimate their costs, volumes, and revenues individually, and in 
aggregate, by market dominant and by competitive product group;
    (2) Estimate the quality of service of each individual experimental 
product; and
    (3) Indicate whether offering the experimental product has created 
an inappropriate competitive advantage for the Postal Service or any 
mailer.
    (i) For each nonpostal service, estimate its costs, volumes, and 
revenues; and
    (j) Provide any other information that the Postal Service believes 
will help the Commission evaluate the Postal Service's compliance with 
the applicable provisions of title 39 of the United States Code.



Sec. 3050.22  Documentation supporting attributable cost estimates in
the Postal Service's section 3652 report.

    (a) The items in paragraphs (b) through (p) of this section shall be 
reported when they have changed from those used in the most recent 
Annual Compliance Determination.
    (b) The CRA report, including relevant data on international mail 
services;
    (c) The Cost Segments and Components (CSC) report;
    (d) All input data and processing programs used to produce the CRA 
report, to include:
    (1) CSC Reconciliation to Financial Statement and Account 
Reallocations;

[[Page 452]]

    (2) Manual Input Requirement (reflecting direct accounting or 
modeled costs);
    (3) The CSC ``A'' report (showing how indirect costs are distributed 
to products based on the distribution of direct costs);
    (4) The CSC ``B'' report (showing how indirect Property Equipment 
Supplies Services and Administrative (PESSA) costs are distributed to 
products;
    (5) The CSC ``D'' report (showing final adjustments to total 
attributable and product-specific costs);
    (6) The CSC ``F'' report (containing distribution keys for indirect 
labor components);
    (7) The control file that includes the CRA program control string 
commands used to produce the CRA and the above-described CSC reports; 
and
    (8) The master list of cost segment components, including all of the 
components used as distribution keys in the development of the CSC 
report and its accompanying reports.
    (e) Spreadsheet workpapers underlying development of the CSC report 
by component. These workpapers shall include the updated factors and 
input data sets from the supporting data systems used, including:
    (1) The In-Office Cost System (IOCS);
    (2) The Management Operating Data System (MODS);
    (3) The City Carrier Cost System (CCCS);
    (4) The City Carrier Street Time Sampling System (CCSTS);
    (5) The Rural Carrier Cost System (RCCS);
    (6) The National Mail Count;
    (7) The Transportation Cost System (TRACS);
    (8) System for International Revenues and Volumes/Outbound (SIRV/O);
    (9) System for International Revenues and Volumes/Inbound (SIRV/I);
    (10) Military and International Dispatch and Accountability System; 
and
    (11) Inbound International Revenue Accounting Systems (IAB data).
    (f) The econometric analysis of carrier street time, including input 
data, processing programs, and output;
    (g) The Window Service Supply Side Variability, Demand Side 
Variability, and Network Variability studies, including input data, 
processing programs, and output;
    (h) The econometric analysis of purchased highway transportation 
cost variability, including input data, processing programs, and output;
    (i) The econometric analysis of freight rail cost variability, 
including input data, processing programs, and output;
    (j) A list and summary description of any transportation contracts 
whose unit rates vary according to the level of postal volume carried. 
The description should include the product or product groups carried 
under each listed contract;
    (k) Spreadsheets and processing programs distributing attributable 
mail processing costs;
    (l) The Vehicle Service Driver Data Collection System;
    (m) Input data, processing programs, and output of the Vehicle 
Service Driver Cost Variability Study;
    (n) Econometric analysis of postmaster cost variability;
    (o) Floor Space Survey; and
    (p) Density studies used to convert weight to cubic feet of mail.



Sec. 3050.23  Documentation supporting incremental cost estimates in
the Postal Service's section 3652 report.

    Input data, processing programs, and output of an incremental cost 
model shall be reported.



Sec. 3050.24  Documentation supporting estimates of costs avoided by 
worksharing and other mail characteristics in the Postal Service's 

section 3652 report.

    (a) The items in paragraphs (b) through (l) of this section shall be 
reported, including supporting calculations and derivations.
    (b) Letter, card, flat, parcel and non-flat machinable mail 
processing cost models with Delivery Point Sequence percentages 
calculated, which shall include:
    (1) Coverage factors for any equipment where coverage is less than 
100 percent;
    (2) MODS productivities;
    (3) Piggyback factors and supporting data;
    (4) Entry profiles, bundle sorts, and pieces per bundle;

[[Page 453]]

    (5) Bundle breakage, handlings, and density;
    (6) Mail flow density and accept rates;
    (7) Remote Computer Reader finalization costs, cost per image, and 
Remote Bar Code Sorter leakage;
    (8) Percentage of mail finalized to carrier route;
    (9) Percentage of mail destinating at post office boxes; and
    (10) Wage rates and premium pay factors.
    (c) Pallet cost models for Periodicals;
    (d) Sack cost models for Periodicals;
    (e) Bundle cost models for Periodicals;
    (f) Other container cost models for Periodicals;
    (g) Analysis of Periodicals container costs;
    (h) Business Reply Mail cost supporting material;
    (i) Mail processing units costs for Carrier Route, High Density, and 
Saturation mail;
    (j) Mail processing unit costs by shape and cost pool for each 
product and benchmark category;
    (k) Delivery costs by product, shape, presort level, automation 
compatibility, and machinability, including Detached Address Label cost 
calculations; and
    (l) Dropship cost avoidance models.



Sec. 3050.25  Volume and revenue data.

    (a) The items in paragraphs (b) through (e) of this section shall be 
provided.
    (b) The Revenue, Pieces, and Weight (RPW) report, including 
estimates by shape, weight, and indicia, and the underlying billing 
determinants, broken out by quarter, within 90 days of the close of each 
fiscal year;
    (c) Revenue, pieces, and weight by rate category and special service 
by quarter, within 30 days of the close of the quarter;
    (d) Quarterly Statistics Report, including estimates by shape, 
weight, and indicia, within 30 days of the close of the quarter; and
    (e) Billing determinants within 40 days of the close of the quarter.



Sec. 3050.26  Documentation of demand elasticities and volume forecasts.

    By January 20 of each year, the Postal Service shall provide 
econometric estimates of demand elasticity for all postal products 
accompanied by the underlying econometric models and the input data sets 
used; and a volume forecast for the current fiscal year, and the 
underlying volume forecasting model.



Sec. 3050.27  Workers' Compensation Report.

    The Workers' Compensation Report, including summary workpapers, 
shall be provided by March 1 of each year.



Sec. 3050.28  Monthly and pay period reports.

    (a) The reports in paragraphs (b) through (f) of this section shall 
be provided within 15 days of the close of the relevant period or as 
otherwise stated.
    (b) Monthly Summary Financial Report on the 24th day of the 
following month, except that the report for the last month of each 
quarter shall be provided at the time that the Form 10-Q report is 
provided.
    (1) The report shall follow the formats as shown below.

[[Page 454]]

[GRAPHIC] [TIFF OMITTED] TR05MY09.003


[[Page 455]]


[GRAPHIC] [TIFF OMITTED] TR05MY09.004


[[Page 456]]


[GRAPHIC] [TIFF OMITTED] TR05MY09.005

[GRAPHIC] [TIFF OMITTED] TR05MY09.006

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

[[Page 457]]

    (d) National Payroll Hours Summary in electronic form (pay period);
    (e) On-roll and Paid Employee Statistics (ORPES) (pay period); and
    (f) Postal Service Active Employee Statistical Summary (HAT report) 
(pay period).



Sec. 3050.30  Information needed to estimate the cost of the universal
service obligation. [Reserved]



Sec. 3050.35  Financial reports.

    (a) The reports in paragraphs (b) through (d) of this section shall 
be provided annually at the time indicated.
    (b) Annual Report of the Postmaster General (when released to the 
public);
    (c) Congressional Budget Submission and supporting workpapers, 
including Summary Tables SE 1, 2, and 6 (within 7 days of the submission 
of the Federal Budget by the President to the Congress); and
    (d) Integrated Financial Plan (within 7 days of approval by the 
Board of Governors).



Sec. 3050.40  Additional financial reporting.

    (a) In general. The Postal Service shall file with the Commission:
    (1) Within 40 days after the end of each fiscal quarter, a quarterly 
report containing the information required by the Securities and 
Exchange Commission to be included in quarterly reports under sections 
13 and 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m, 
78o(d)) on Form 10-Q, as such form (or any successor form) may be 
revised from time to time;
    (2) Within 60 days after the end of each fiscal year, an annual 
report containing the information required by the Securities and 
Exchange Commission to be included in annual reports under such sections 
on Form 10-K, as such form (or any successor form) may be revised from 
time to time; and
    (3) Periodic reports within the time frame and containing the 
information prescribed in Form 8-K of the Securities and Exchange 
Commission, as such form (or any successor form) may be revised from 
time to time.
    (b) Internal control report. For purposes of defining the reports 
required by paragraph (a)(2) of this section, the Postal Service shall 
comply with the rules prescribed by the Securities and Exchange 
Commission implementing section 404 of the Sarbanes-Oxley Act of 2002 
(15 U.S.C. 7262), beginning with the annual report for fiscal year 2010.
    (c) Financial reporting. The reports required by paragraph (a)(2) of 
this section shall include, with respect to the Postal Service's pension 
and post-retirement health obligations:
    (1) The funded status of the Postal Service's pension and post-
retirement health obligations;
    (2) Components of the net change in the fund balances and 
obligations and the nature and cause of any significant changes;
    (3) Components of net periodic costs;
    (4) Cost methods and assumptions underlying the relevant actuarial 
valuations;
    (5) The effect of a 1 percentage point increase in the assumed 
health care cost trend rate for each future year on the service and 
interest costs components of net periodic post-retirement health cost 
and the accumulated obligation;
    (6) Actual contributions to and payments from the funds for the 
years presented and the estimated future contributions and payments for 
each of the following 5 years;
    (7) The composition of plan assets reflected in the fund balances; 
and
    (8) The assumed rate of return on fund balances and the actual rates 
of return for the years presented.
    (d) Time of filing. Within 5 business days of receiving the data 
listed under paragraph (c) of this section from the Office of Personnel 
Management, the Postal Service shall provide two copies of that data to 
the Commission.
    (e) Segment reporting.
    (1) Beginning with reports for fiscal year 2010, for purposes of the 
reports required under paragraphs (a)(1) and (2) of this section, the 
Postal Service shall include segment reporting.
    (2) The Postal Service shall determine the appropriate segment 
reporting under paragraph (e)(1) of this section after consultation with 
the Commission.

[[Page 458]]



Sec. 3050.41  Treatment of additional financial reports.

    (a) For purposes of the reports required by Sec. 3050.40(a)(2), the 
Postal Service shall obtain an opinion from an independent auditor on 
whether the information listed in Sec. 3050.40(c) is fairly stated in 
all material respects, either in relation to the basic financial 
statements as a whole or on a stand-alone basis.
    (b) Supporting matter. The Commission shall have access to the audit 
documentation and any other supporting matter of the Postal Service and 
its independent auditor in connection with any information submitted 
under Sec. 3050.40.



Sec. 3050.42  Proceedings to improve the quality of financial data.

    The Commission may, on its own motion or on request of an interested 
party, initiate proceedings to improve the quality, accuracy, or 
completeness of Postal Service data required under Sec. 3050.40 
whenever it shall appear that the data have become significantly 
inaccurate or can be significantly improved; or those revisions are, in 
the judgment of the Commission, otherwise necessitated by the public 
interest.



Sec. 3050.43  Information on program performance.

    (a) The Postal Service shall provide the items in paragraphs (b)(1) 
through (3) of this section at the same time that the President submits 
an annual budget to Congress:
    (b)(1) The comprehensive statement required by 39 U.S.C. 2401(e);
    (2) The performance plan required by 39 U.S.C. 2803; and
    (3) The program performance reports required by 39 U.S.C. 2804.
    (c) Section 3050.10 does not apply to the reports referenced in this 
section.



Sec. 3050.60  Miscellaneous reports and documents.

    (a) The reports in paragraphs (b) through (g) of this section shall 
be provided at the times indicated.
    (b) A master list of publications and handbooks, including those 
related to internal information procedures, data collection forms, and 
corresponding training handbooks by July 1, 2009, and again when 
changed;
    (c) The items listed in paragraph (b) of this section in hard copy 
form, and in electronic form, if available;
    (d) Household Diary Study (when completed);
    (e) Input data and calculations used to produce the annual Total 
Factor Productivity estimates (by March 1 of each year);
    (f) Succinct narrative explanations of how the estimates in the most 
recent Annual Compliance Determination were calculated and the reasons 
that particular analytical principles were followed. The narrative 
explanations shall be comparable in detail to that which had been 
provided in Library Reference 1 in omnibus rate cases processed under 
the Postal Reorganization Act (by July 1 of each year); and
    (g) An update of the history of changes in postal volumes, revenues, 
rates, and fees that appears in library references USPS-LR-L-73 through 
76 in Docket No. R2006-1 (by July 1 of each year).



PART 3055_SERVICE PERFORMANCE AND CUSTOMER SATISFACTION REPORTING--Table
of Contents



     Subpart A_Annual Reporting of Service Performance Achievements

Sec.
3055.1 Annual reporting of service performance achievements.
3055.2 Contents of the annual report of service performance 
          achievements.
3055.3 Reporting exceptions.
3055.4 Internal measurement systems.
3055.5 Changes to measurement systems, service standards, service goals 
          or reporting methodologies.
3055.6 Addition of new market dominant products or changes to existing 
          market dominant products.
3055.7 Special study.
3055.20 First-Class Mail.
3055.21 Standard Mail.
3055.22 Periodicals.
3055.23 Package Services.
3055.24 Special Services.
3055.25 Non-postal products. [Reserved]

    Subpart B_Periodic Reporting of Service Performance Achievements

3055.30 Periodic reporting of service performance achievements.

[[Page 459]]

3055.31 Contents of the Quarterly Report of service performance 
          achievements.
3055.32 Measurement systems using a delivery factor.
3055.45 First-Class Mail.
3055.50 Standard Mail.
3055.55 Periodicals.
3055.60 Package Services.
3055.65 Special Services.
3055.70 Non-postal products. [Reserved]

              Subpart C	Reporting of Customer Satisfaction

3055.90 Reporting of customer satisfaction.
3055.91 Consumer access to postal services.
3055.92 Customer Experience Measurement Surveys.

    Authority: 39 U.S.C. 503, 3622(a), 3652(d) and (e); 3657(c).

    Source: 75 FR 38742, July 6, 2010, unless otherwise noted.



     Subpart A_ Annual Reporting of Service Performance Achievements



Sec. 3055.1  Annual reporting of service performance achievements.

    For each market dominant product specified in the Mail 
Classification Schedule in part 3020, appendix A to subpart A of part 
3020 of this chapter, the Postal Service shall file a report as part of 
the section 3652 report addressing service performance achievements for 
the preceding fiscal year.



Sec. 3055.2  Contents of the annual report of service performance achievements.

    (a) The items in paragraphs (b) through (k) of this section shall be 
included in the annual report of service performance achievements.
    (b) The class or group-specific reporting requirements specified in 
Sec. Sec. 3055.20 through 3055.25.
    (c) The applicable service standard(s) for each product.
    (d) The applicable service goal(s) for each product.
    (e) A description of the measurement system for each product, 
including:
    (1) A description of what is being measured;
    (2) A description of the system used to obtain each measurement;
    (3) A description of the methodology used to develop reported data 
from measured data;
    (4) A description of any changes to the measurement system or data 
reporting methodology implemented within the reported fiscal year; and
    (5) Where proxies are used, a description of and justification for 
the use of each proxy.
    (f) A description of the statistical validity and reliability of the 
results for each measured product.
    (g) A description of how the sampled data represents the national 
geographic mail characteristics or behavior of the product.
    (h) For each product that does not meet a service standard, an 
explanation of why the service standard is not met, and a plan 
describing the steps that have or will be taken to ensure that the 
product meets or exceeds the service standard in the future.
    (i) The identification of each product, or component of a product, 
granted an exception from reporting pursuant to Sec. 3055.3, and a 
certification that the rationale for originally granting the exception 
remains valid.
    (j) Documentation showing how data reported at a given level of 
aggregation were derived from data reported at greater levels of 
disaggregation. Such documentation shall be in electronic format with 
all data links preserved. It shall show all formulas used, including 
volumes and other weighting factors.
    (k) For each product, documentation showing how the reports required 
by subpart A of this part were derived from the reports required by 
subpart B of this part. Such documentation shall be in electronic format 
with all data links preserved. It shall show all formulas used, 
including volumes and other weighting factors.



Sec. 3055.3  Reporting exceptions.

    (a) The Postal Service may petition the Commission to request that a 
product, or component of a product, be excluded from reporting, provided 
the Postal Service demonstrates that:
    (1) The cost of implementing a measurement system would be 
prohibitive in relation to the revenue generated by the product, or 
component of a product;
    (2) The product, or component of a product, defies meaningful 
measurement; or

[[Page 460]]

    (3) The product, or component of a product, is in the form of a 
negotiated service agreement with substantially all components of the 
agreement included in the measurement of other products.
    (b) The Postal Service shall identify each product or component of a 
product granted an exception in each report required under subparts A or 
B of this part, and certify that the rationale for originally granting 
the exception remains valid.



Sec. 3055.4  Internal measurement systems.

    Service performance measurements obtained from internal measurement 
systems or hybrid measurement systems (which are defined as systems that 
rely on both an internal and an external measurement component) shall 
not be used to comply with any reporting requirement under subparts A or 
B of this part without prior Commission approval.



Sec. 3055.5  Changes to measurement systems, service standards, service 
goals, or reporting methodologies.

    The Postal Service shall file notice with the Commission describing 
all changes to measurement systems, service standards, service goals or 
reporting methodologies, including the use of proxies for reporting 
service performance, 30 days prior to planned implementation. The 
Commission may initiate a proceeding at any time to consider such 
changes if it appears that the changes might have a material impact on 
the accuracy, reliability, or utility of the reported measurement, or if 
the changes might have a material impact on the characteristics of the 
underlying product.



Sec. 3055.6  Addition of new market dominant products or changes to 
existing market dominant products.

    Whenever the Postal Service proposes the addition of a new market 
dominant product or a change to an existing market dominant product, it 
also shall propose new or revised (as necessary) service performance 
measurement systems, service standards, service goals, data reporting 
elements, and data reporting methodologies.



Sec. 3055.7  Special study.

    Included in the second section 3652 report due after this rule 
becomes final, and every 2 years thereafter, the Postal Service shall 
provide a report, by class of mail, on delivery performance to remote 
areas of the Alaska, Caribbean, and Honolulu districts.



Sec. 3055.20  First-Class Mail.

    (a) Single-Piece Letters/Postcards, Bulk Letters/Postcards, Flats, 
and Parcels. For each of the Single-Piece Letters/Postcards, Bulk 
Letters/Postcards, Flats, and Parcels products within the First-Class 
Mail class, report the on-time service performance (as a percentage 
rounded to one decimal place), disaggregated by mail subject to the 
overnight, 2-day, and 3/4/5-day service standards.
    (b) Outbound Single-Piece First-Class Mail International and Inbound 
Single-Piece First-Class Mail International. For each of the Outbound 
Single-Piece First-Class Mail International and Inbound Single-Piece 
First-Class Mail International products within the First-Class Mail 
class, report the on-time service performance (as a percentage rounded 
to one decimal place).



Sec. 3055.21  Standard Mail.

    For each product within the Standard Mail class, report the on-time 
service performance (as a percentage rounded to one decimal place).



Sec. 3055.22  Periodicals.

    For each product within the Periodicals class, report the on-time 
service performance (as a percentage rounded to one decimal place).



Sec. 3055.23  Package Services.

    For each product within the Package Services class, report the on-
time service performance (as a percentage rounded to one decimal place).



Sec. 3055.24  Special Services.

    For each product within the Special Services group, report the 
percentage of time (rounded to one decimal place) that each product 
meets or exceeds its service standard.

[[Page 461]]



Sec. 3055.25  Nonpostal products. [Reserved]



    Subpart B_Periodic Reporting of Service Performance Achievements



Sec. 3055.30  Periodic reporting of service performance achievements.

    For each market dominant product specified in the Mail 
Classification Schedule in part 3020, appendix A to subpart A of part 
3020 of this chapter, the Postal Service shall file a Quarterly Report 
with the Commission addressing service performance achievements for the 
preceding fiscal quarter (within 40 days of the close of each fiscal 
quarter).



Sec. 3055.31  Contents of the Quarterly Report of service performance
achievements.

    (a) The items in paragraphs (b) through (e) of this section shall be 
included in the quarterly report of service performance achievements.
    (b) The class or group-specific reporting items specified in 
Sec. Sec. 3055.45 through 3055.70.
    (c) The identification of each product, or component of a product, 
granted an exception from reporting pursuant to Sec. 3055.3, and a 
certification that the rationale for originally granting the exception 
remains valid.
    (d) Documentation showing how data reported at a given level of 
aggregation were derived from data reported at greater levels of 
disaggregation. Such documentation shall be in electronic format with 
all data links preserved. It shall show all formulas used, including 
volumes and other weighting factors.
    (e) A year-to-date aggregation of each data item provided in each 
Quarterly Report due for the reported fiscal year, where applicable, 
including volumes and other weighting factors provided in electronic 
format, with formulas shown and data links preserved to allow 
traceability to individual Quarterly Reports.



Sec. 3055.32  Measurement systems using a delivery factor.

    For measurements that include a delivery factor, the duration of the 
delivery factor also shall be presented independent of the total 
measurement.



Sec. 3055.45  First-Class Mail.

    (a) Single-Piece Letters/Postcards, Bulk Letters/Postcards, Flats, 
and Parcels. For each of the Single-Piece Letters/Postcards, Bulk 
Letters/Postcards, Flats, and Parcels products within the First-Class 
Mail class, report the:
    (1) On-time service performance (as a percentage rounded to one 
decimal place), disaggregated by mail subject to the overnight, 2-day, 
and 3/4/5-day service standards, provided at the District, Postal 
Administrative Area, and National levels; and
    (2) Service variance (as a percentage rounded to one decimal place) 
for mail delivered within +1 day, +2 days, and +3 days of its applicable 
service standard, disaggregated by mail subject to the overnight, 2-day, 
and 3/4/5-day service standards, provided at the District, Postal 
Administrative Area, and National levels.
    (b) Outbound Single-Piece First-Class Mail International and Inbound 
Single-Piece First-Class Mail International. For each of the Outbound 
Single-Piece First-Class Mail International and Inbound Single-Piece 
First-Class Mail International products within the First-Class Mail 
class, report the:
    (1) On-time service performance (as a percentage rounded to one 
decimal place), provided at the Postal Administrative Area and National 
levels; and
    (2) Service variance (as a percentage rounded to one decimal place) 
for mail delivered within +1 day, +2 days, and +3 days of its applicable 
service standard, provided at the Postal Administrative Area and 
National levels.



Sec. 3055.50  Standard Mail.

    (a) For each product within the Standard Mail class, report the on-
time service performance (as a percentage rounded to one decimal place), 
disaggregated by the Destination Entry (2-day), Destination Entry (3-day 
through 4-day), Destination Entry (5-day through 10-day), End-to-End (3-
day through 5-day), End-to-End (6-day through 10-day), and End-to-End 
(11-day through 22-day) entry mail/service standards, provided at the 
District,

[[Page 462]]

Postal Administrative Area, and National levels.
    (b) For each product within the Standard Mail class, report the 
service variance (as a percentage rounded to one decimal place) for mail 
delivered within +1 day, +2 days, and +3 days of its applicable service 
standard, disaggregated by the Destination Entry (2-day), Destination 
Entry (3-day through 4-day), Destination Entry (5-day through 10-day), 
End-to-End (3-day through 5-day), End-to-End (6-day through 10-day), and 
End-to-End (11-day through 22-day) entry mail/service standards, 
provided at the District, Postal Administrative Area, and National 
levels.



Sec. 3055.55  Periodicals.

    (a) Within County Periodicals. For the Within County Periodicals 
product within the Periodicals class, report the:
    (1) On-time service performance (as a percentage rounded to one 
decimal place), provided at the Postal Administrative Area and National 
levels; and
    (2) Service variance (as a percentage rounded to one decimal place) 
for mail delivered within +1 day, +2 days, and +3 days of its applicable 
service standard, provided at the Postal Administrative Area and 
National levels.
    (b) Outside County Periodicals. For the Outside County Periodicals 
product within the Periodicals class, report the:
    (1) On-time service performance (as a percentage rounded to one 
decimal place), disaggregated by the Destination Entry and End-to-End 
entry mail, provided at the Postal Administrative Area and National 
levels; and
    (2) Service variance (as a percentage rounded to one decimal place) 
for mail delivered within +1 day, +2 days, and +3 days of its applicable 
service standard, disaggregated by the Destination Entry and End-to-End 
entry mail, provided at the Postal Administrative Area and National 
levels.



Sec. 3055.60  Package Services.

    (a) Single-Piece Parcel Post. For the Single-Piece Parcel Post 
product within the Package Services class, report the:
    (1) On-time service performance (as a percentage rounded to one 
decimal place), disaggregated by mail subject to the 2-day through 4-day 
and 5-day through 20-day service standards, provided at the District, 
Postal Administrative Area, and National levels; and
    (2) Service variance (as a percentage rounded to one decimal place) 
for mail delivered within +1 day, +2 days, and +3 days of its applicable 
service standard, disaggregated by mail subject to the 2-day through 4-
day and 5-day through 20-day service standards, provided at the 
District, Postal Administrative Area, and National levels.
    (b) Bound Printed Matter Flats, Bound Printed Matter Parcels, and 
Media Mail/Library Mail. For each of the Bound Printed Matter Flats, 
Bound Printed Matter Parcels, and Media Mail/Library Mail products 
within the Package Services class, report the:
    (1) On-time service performance (as a percentage rounded to one 
decimal place), disaggregated by the Destination Entry and End-to-End 
entry mail, provided at the District, Postal Administrative Area, and 
National levels; and
    (2) Service variance (as a percentage rounded to one decimal place) 
for mail delivered within +1 day, +2 days, and +3 days of its applicable 
service standard, disaggregated by the Destination Entry and End-to-End 
entry mail, provided at the District, Postal Administrative Area, and 
National levels.
    (c) Inbound Surface Parcel Post (at UPU rates). For the Inbound 
Surface Parcel Post (at UPU rates) product within the Package Services 
class, report the:
    (1) On-time service performance (as a percentage rounded to one 
decimal place), provided at the Postal Administrative Area and National 
levels; and
    (2) Service variance (as a percentage rounded to one decimal place) 
for mail delivered within +1 day, +2 days, and +3 days of its applicable 
service standard, provided at the Postal Administrative Area and 
National levels.



Sec. 3055.65  Special Services.

    (a) For each product within the Special Services group, report the 
percentage of time (rounded to one decimal

[[Page 463]]

place) that each product meets or exceeds its service standard, provided 
at the National level.
    (b) Additional reporting for Ancillary Services. For the Certified 
Mail, electronic Return Receipt, Delivery Confirmation, Insurance, and 
an aggregation of all other services within the Ancillary Services 
product, individually report the percentage of time (rounded to one 
decimal place) that each service meets or exceeds its service standard. 
For green card Return Receipt report:
    (1) The number of EXFC seed mailpieces sent;
    (2) The percentage of green cards properly completed and returned;
    (3) The percentage of green cards not properly completed, but 
returned;
    (4) The percentage of mailpieces returned without a green card 
signature; and
    (5) The percentage of the time the service meets or exceeds its 
overall service standard.
    (c) Additional reporting for Post Office Box Service. For Post 
Office Box Service, report the percentage of time (rounded to one 
decimal place) that the product meets or exceeds its service standard, 
provided at the District and Postal Administrative Area levels.
    (d) Additional reporting for Stamp Fulfillment Service. For Stamp 
Fulfillment Service, report:
    (1) The on-time service performance (as a percentage rounded to one 
decimal place), disaggregated by customer order entry method; and
    (2) The service variance (as a percentage rounded to one decimal 
place) for orders fulfilled within +1 day, +2 days, and +3 days of their 
applicable service standard, disaggregated by customer order entry 
method.

[75 FR 38742, July 6, 2010, as amended at 76 FR 70656, Nov. 15, 2011]



Sec. 3055.70  Nonpostal products. [Reserved]



              Subpart C_Reporting of Customer Satisfaction



Sec. 3055.90  Reporting of customer satisfaction.

    For each market dominant product specified in the Mail 
Classification Schedule in part 3020, appendix A to subpart A of part 
3020 of this chapter, the Postal Service shall file a report as part of 
the section 3652 report, unless a more frequent filing is specifically 
indicated, addressing customer satisfaction achievements for the 
preceding fiscal year. The report shall include, at a minimum, the 
specific reporting requirements presented in Sec. Sec. 3055.91 through 
3055.92.



Sec. 3055.91  Consumer access to postal services.

    (a) The following information pertaining to post offices shall be 
reported, disaggregated by type of post office facility, and provided at 
the Postal Administrative Area and National levels:
    (1) The number of post offices at the beginning of the reported 
fiscal year;
    (2) The number of post offices at the end of the reported fiscal 
year;
    (3) The number of post office closings in the reported fiscal year;
    (4) The number of post office emergency suspensions in effect at the 
beginning of the reported fiscal year;
    (5) The number of post office emergency suspensions in the reported 
fiscal year; and
    (6) The number of post office emergency suspensions in effect at the 
end of the reported fiscal year.
    (b) The following information pertaining to delivery points shall be 
reported, disaggregated by delivery point type, provided at the Postal 
Administrative Area and National levels:
    (1) The number of residential delivery points at the beginning of 
the reported fiscal year;
    (2) The number of residential delivery points at the end of the 
reported fiscal year;
    (3) The number of business delivery points at the beginning of the 
reported fiscal year; and
    (4) The number of business delivery points at the end of the 
reported fiscal year.
    (c) The following information pertaining to collection boxes shall 
be reported, provided at the Postal Administrative Area and National 
levels:
    (1) The number of collection boxes at the beginning of the reported 
fiscal year;

[[Page 464]]

    (2) The number of collection boxes at the end of the reported fiscal 
year;
    (3) The number of collection boxes removed during the reported 
fiscal year; and
    (4) The number of collection boxes added to new locations during the 
reported fiscal year.
    (d) The average customer wait time in line for retail service shall 
be reported. Data shall be provided for the beginning of the reported 
fiscal year and for the close of each successive fiscal quarter at the 
Postal Administrative Area and National levels.



Sec. 3055.92  Customer Experience Measurement Surveys.

    (a) The report shall include a copy of each type of Customer 
Experience Measurement instrument, or any similar instrument that may 
supersede the Customer Experience Measurement instrument used in the 
preceding fiscal year.
    (b) The report shall include information obtained from each type of 
Customer Experience Measurement instrument, or any similar instrument 
that may supersede the Customer Experience Measurement instrument 
including:
    (1) A description of the customer type targeted by the survey;
    (2) The number of surveys initiated and the number of surveys 
received; and
    (3) Where the question asked is subject to a multiple choice 
response, the number of responses received for each question, 
disaggregated by each of the possible responses.



PART 3060_ACCOUNTING PRACTICES AND TAX RULES FOR THE THEORETICAL 
COMPETITIVE PRODUCTS ENTERPRISE--Table of Contents



Sec.
3060.1 Scope.
3060.10 Costing.
3060.11 Valuation of assets.
3060.12 Asset allocation.
3060.13 Valuation of liabilities.
3060.14 Competitive products enterprise statement of allocated assets 
          and liabilities.
3060.20 Reports.
3060.21 Income report.
3060.22 Financial status report.
3060.23 Identified property and equipment assets report.
3060.24 Competitive products fund report.
3060.30 Statement of allocated assets and liabilities for competitive 
          products.
3060.31 Initial filing.
3060.40 Calculation of the assumed Federal income tax.
3060.41 Supporting documentation.
3060.42 Commission review.
3060.43 Annual transfer from competitive products fund to Postal Service 
          fund.

    Authority: 39 U.S.C. 503, 2011, 3633, 3634.

    Source: 73 FR 79261, Dec. 24, 2008, unless otherwise noted.



Sec. 3060.1  Scope.

    The rules in this part are applicable to the Postal Service's 
theoretical competitive products enterprise developed pursuant to 39 
U.S.C. 2011 and 3634 and to the Postal Service's obligation to calculate 
annually an assumed Federal income tax on competitive products income 
and transfer annually any such assumed Federal income tax due from the 
Competitive Products Fund to the Postal Service Fund.



Sec. 3060.10  Costing.

    (a) The assumed taxable income from competitive products for the 
Postal Service's theoretical competitive products enterprise for a 
fiscal year shall be based on total revenues generated by competitive 
products during that year less the costs identified in paragraph (b) of 
this section calculated using the methodology most recently approved by 
the Commission.
    (b) The net income for the Postal Service's theoretical competitive 
products enterprise shall reflect the following costs:
    (1) Attributable costs, including volume variable and product 
specific costs; and
    (2) The appropriate share of institutional costs assigned to 
competitive products by the Commission pursuant to 39 U.S.C. 3633(a)(3).



Sec. 3060.11  Valuation of assets.

    For the purposes of 39 U.S.C. 2011, the total assets of the Postal 
Service theoretical competitive products enterprise are the greater of:
    (a) The percentage of total Postal Service revenues and receipts 
from

[[Page 465]]

competitive products times the total net assets of the Postal Service, 
or
    (b) The net assets related to the provision of competitive products 
as determined pursuant to Sec. 3060.12.



Sec. 3060.12  Asset allocation.

    Within 6 months of January 23, 2009, and for each fiscal year 
thereafter, the Postal Service will develop the net assets of the 
theoretical competitive products enterprise as follows:
    (a) Identify all asset accounts within the Postal Service's Chart of 
Accounts used solely for the provision of competitive products.
    (b) Identify all asset accounts within the Postal Service's Chart of 
Accounts used solely for the provision of market dominant products.
    (c) The portion of asset accounts in the Postal Service's Chart of 
Accounts that are not identified in either paragraph (a) or paragraph 
(b) of this section shall be assigned to the Postal Service theoretical 
competitive products enterprise using a method of allocation based on 
appropriate revenue or cost drivers approved by the Commission.
    (d) Within 6 months of January 23, 2009, the Postal Service shall 
submit to the Commission for approval a proposed methodology detailing 
how each asset account identified in the Chart of Accounts shall be 
allocated to the theoretical competitive products enterprise and provide 
an explanation in support of each allocation.
    (e) If the Postal Service desires to change the methodologies 
outlined above, it shall utilize the procedures provided in Sec. 
3050.11 of this chapter.



Sec. 3060.13  Valuation of liabilities.

    Within 6 months of January 23, 2009, and for each fiscal year 
thereafter, the Postal Service will develop the liabilities of the 
theoretical competitive products enterprise as follows:
    (a) Identify all liability accounts within the Postal Service's 
Chart of Accounts used solely for the provision of competitive products.
    (b) Identify all liability accounts within the Postal Service's 
Chart of Accounts used solely for the provision of market dominant 
products.
    (c) The portion of liability accounts in the Postal Service's Chart 
of Accounts that are not identified in either paragraph (a) or paragraph 
(b) of this section shall be assigned to the theoretical competitive 
products enterprise using a method of allocation based on appropriate 
revenue or cost drivers approved by the Commission.
    (d) Within 6 months of the effective date of these rules, the Postal 
Service shall submit to the Commission for approval a proposed 
methodology detailing how each liability account identified in the Chart 
of Accounts shall be allocated to the theoretical competitive products 
enterprise and provide an explanation in support of each allocation.
    (e) If the Postal Service desires to change the methodologies 
outlined above, it shall utilize the procedures provided in Sec. 
3050.11 of this chapter.



Sec. 3060.14  Competitive products enterprise statement of allocated 
assets and liabilities.

    The Postal Service will report the assets and liabilities of the 
theoretical competitive products enterprise as computed under Sec. Sec. 
3060.12 and 3060.13 in the format as prescribed under Sec. 3060.30 for 
each fiscal year starting with FY 2010.



Sec. 3060.20  Reports.

    (a) Beginning with reports for FY 2009, the Postal Service shall 
file with the Commission each of the reports required by this part by no 
later than 90 days after the close of each fiscal year. For FY 2008, the 
Postal Service may file these reports by January 15, 2009, with the 
exception of the report required by Sec. 3060.24.
    (b) Each report shall include workpapers that cite all numbers to 
primary sources and such other information needed to present complete 
and accurate financial information concerning the provision of 
competitive products.
    (c) Each report shall utilize the same books of accounts and data 
collection systems used to produce the report required by part 3050 of 
this chapter.
    (d) Each report shall include summary descriptions of computations

[[Page 466]]

used, assumptions made, and other relevant information in the form of 
notes to the financial statements.
    (e) A one-time extension until January 15, 2009, shall be permitted 
for the submission of the reports due for fiscal year ending September 
30, 2008.
    (f) The accounting practices used by the Postal Service in the 
reports filed for FY 2008, as approved by the Commission, shall be used 
for all future reports until such time as they may be changed by the 
Commission. If the Postal Service desires to change such practices, it 
shall utilize the procedures provided in Sec. 3050.11 of this chapter.



Sec. 3060.21  Income report.

    The Postal Service shall file an Income Report in the form and 
content of Table 1, below.

                         Table 1--Competitive Products Income Statement--PRC Form CP-01
                                                   [$ in 000s]
----------------------------------------------------------------------------------------------------------------
                                                                                         Percent       Percent
                                                             FY 20xx      FY 20xx-1    change from   change from
                                                                                          SPLY          SPLY
----------------------------------------------------------------------------------------------------------------
Revenue:................................................        $x,xxx          $x,x           xxx          xx.x
                                                                                  xx
    (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:
    (4) Volume-Variable Costs...........................         x,xxx         x,xxx           xxx          xx.x
    (5) Product Specific Costs..........................         x,xxx         x,xxx           xxx          xx.x
    (6) Total Competitive Products Attributable Costs...         x,xxx         x,xxx           xxx          xx.x
    (7) Net Income Before Institutional Cost                     x,xxx         x,xxx           xxx
     Contribution.......................................
    (8) Required Institutional Cost Contribution........         x,xxx         x,xxx          $xxx         x.x.x
    (9) Net Income (Loss) Before Tax....................         x,xxx         x,xxx          $xxx          xx.x
    (10) Assumed Federal Income Tax.....................         x,xxx         x,xxx          $xxx          xx.x
    (11) 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): Sum total of Competitive Products costs (sum of lines 4 and 5).
Line (7): Difference between Competitive Products total revenues and attributable costs (line 3 less line 6).
Line (8): Minimum amount of Institutional Cost contribution required under 39 CFR 3015.7 of this chapter.
Line (9): Line 7 less line 8.
Line (10): Total assumed Federal income tax as calculated under 39 CFR 3060.40.
Line (11): Line 9 less line 10.
----------------------------------------------------------------------------------------------------------------



Sec. 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 Assumed Federal Income Tax.
(2) Total Financial Obligations (List
 of Financial Obligations).
(3) Total Financial Investments (List
 of Financial 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.

[[Page 467]]

 
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.
----------------------------------------------------------------------------------------------------------------



Sec. 3060.23  Identified property and equipment assets report.

    The Postal Service shall file an Identified Property and Equipment 
Assets Report 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
----------------------------------------------------------------------------------------------------------------



Sec. 3060.24  Competitive products fund report.

    Within 90 days of the close of each fiscal year the Postal Service 
will provide the most recent report of the activity of the Competitive 
Products Fund as provided to the Secretary of the Treasury under 39 
U.S.C. 2011(i)(1).



Sec. 3060.30  Statement of allocated assets and liabilities for 
competitive products.

    (a) The Postal Service shall file a Statement of Allocated Assets 
and Liabilities for Competitive Products in the form and content of 
Table 4, below.

         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
    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.            $x,xxx          $x,xxx          $x,xxx
         2011(e)(5).............................
----------------------------------------------------------------------------------------------------------------
 
              Total net liabilities
 
Liabilities
    Current Liabilities:
        Compensation and Benefits...............           x,xxx           x,xxx           x,xxx

[[Page 468]]

 
        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                x,xxx           x,xxx           x,xxx
         Revenue................................
        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 Revenue
        Long-Term Portion of Capital Lease                 x,xxx           x,xxx           x,xxx
         Obligations............................
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 Assets and Liabilities for 
Competitive Products shall detail the analysis and selection of methods 
of allocation of total assets and liabilities to the competitive 
products.



Sec. 3060.31  Initial filing.

    The due date for filing the initial Statement of Allocated Assets 
and Liabilities for Competitive Products is 90 days after the close of 
FY 2010.



Sec. 3060.40  Calculation of the assumed Federal income tax.

    (a) The assumed Federal income tax on competitive products income 
shall be based on the Postal Service theoretical competitive products 
enterprise income statement for the relevant year and must be calculated 
in compliance with chapter 1 of the Internal Revenue Code by computing 
the tax liability on the taxable income from the competitive products of 
the Postal Service theoretical competitive products enterprise at the 
section 11 (regular) or section 55(b)(1)(B) (Alternative Minimum Tax) 
tax rates, as applicable.
    (b) The end of the fiscal year for the annual calculation of the 
assumed Federal income tax on competitive products income shall be 
September 30.
    (c) The calculation of the assumed Federal income tax due shall be 
submitted to the Commission no later than the January 15 following the 
close of the fiscal year referenced in paragraph (b) of this section, 
except that a one-time extension of 6 months, until July 15, 2009, shall 
be permitted for the calculation of the assumed Federal income tax due 
for fiscal year end September 30, 2008.
    (d) No estimated Federal income taxes need to be calculated or paid.
    (e) No state, local, or foreign income taxes need to be calculated 
or paid.



Sec. 3060.41  Supporting documentation.

    (a) In support of its calculation of the assumed Federal income tax, 
the Postal Service shall file detailed schedules reporting the Postal 
Service theoretical competitive products enterprise assumed taxable 
income, effective tax rate, and tax due.
    (b) Adjustments made to book income, if any, to arrive at the 
assumed taxable income for any year shall be submitted to the Commission 
no later than January 15 of the following year.



Sec. 3060.42  Commission review.

    (a) Interested persons shall be provided an opportunity to comment 
on the filing of the calculation of the assumed Federal income tax and 
supporting documentation.
    (b) The Commission will review the calculation of the assumed 
Federal income tax submitted pursuant to

[[Page 469]]

Sec. 3060.40, the supporting documentation submitted pursuant to Sec. 
3060.41, and any comments. The Commission then will issue an order 
either approving the calculation of the assumed Federal income tax for 
that tax year or take such other action as the Commission deems 
appropriate, including, but not limited to, directing the Postal Service 
to file additional supporting materials.
    (c) The Commission will issue such order no later than 6 months 
after the Postal Service's filing pursuant to Sec. 3060.40.
    (d) Notwithstanding paragraph (b) of this section, if the Commission 
determines within 3 years of its submission that the Postal Service's 
calculation of an assumed Federal income tax is incomplete, inaccurate, 
or otherwise deficient, the Commission will notify the Postal Service in 
writing and provide it with an opportunity to cure or otherwise explain 
the deficiency. Upon receipt of the Postal Service's responsive 
pleading, the Commission may order such action as it deems appropriate.



Sec. 3060.43  Annual transfer from competitive products fund to Postal 
Service fund.

    (a) The Postal Service must on an annual basis transfer the assumed 
Federal income tax due on competitive products income from the 
Competitive Products Fund to the Postal Service Fund.
    (b) If the assumed taxable income from competitive products for a 
given fiscal year is positive, the assumed Federal income tax due, 
calculated pursuant to Sec. 3060.40, shall be transferred to the Postal 
Service Fund no later than the January 15 following the close of the 
relevant fiscal year.
    (c) A one-time extension of 6 months, until July 15, 2009, shall be 
permitted for the transfer of the assumed Federal income tax due for 
fiscal year ending September 30, 2008.
    (d) If assumed taxable income from competitive products for a given 
fiscal year is negative, and:
    (1) A payment was made to the Postal Service Fund for the previous 
tax year, a transfer equaling the lesser of the amount paid into the 
Postal Service Fund for the past 2 tax years or the amount of the 
hypothetical tax on the loss shall be made from the Postal Service Fund 
to the Competitive Products Fund no later than the January 15 following 
the close of the relevant fiscal year; or
    (2) No payment has been made into the Postal Service Fund for the 
previous 2 tax years, the loss may be carried forward and offset against 
any calculated assumed Federal taxable income on competitive products 
income for 20 years.

[[Page 471]]



                              FINDING AIDS




  --------------------------------------------------------------------

  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

[[Page 473]]



                    Table of CFR Titles and Chapters




                      (Revised as of July 1, 2012)

                      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--500)

                    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 Circulars and Guidance 
                (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)
        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  Housing and Urban Development (Parts 2400--2499)
       XXV  National Science Foundation (Parts 2500--2599)
      XXVI  National Archives and Records Administration (Parts 
                2600--2699)
     XXVII  Small Business Administration (Parts 2700--2799)
    XXVIII  Department of Justice (Parts 2800--2899)

[[Page 474]]

       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)
    XXXVII  Peace Corps (Parts 3700--3799)
     LVIII  Election Assistance Commission (Parts 5800--5899)

                        Title 3--The President

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

                           Title 4--Accounts

         I  Government Accountability Office (Parts 1--199)
        II  Recovery Accountability and Transparency Board (Parts 
                200--299)

                   Title 5--Administrative Personnel

         I  Office of Personnel Management (Parts 1--1199)
        II  Merit Systems Protection Board (Parts 1200--1299)
       III  Office of Management and Budget (Parts 1300--1399)
         V  The International Organizations Employees Loyalty 
                Board (Parts 1500--1599)
        VI  Federal Retirement Thrift Investment Board (Parts 
                1600--1699)
      VIII  Office of Special Counsel (Parts 1800--1899)
        IX  Appalachian Regional Commission (Parts 1900--1999)
        XI  Armed Forces Retirement Home (Parts 2100--2199)
       XIV  Federal Labor Relations Authority, General Counsel of 
                the Federal Labor Relations Authority and Federal 
                Service Impasses Panel (Parts 2400--2499)
        XV  Office of Administration, Executive Office of the 
                President (Parts 2500--2599)
       XVI  Office of Government Ethics (Parts 2600--2699)
       XXI  Department of the Treasury (Parts 3100--3199)
      XXII  Federal Deposit Insurance Corporation (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)
    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)

[[Page 475]]

    XXXIII  Overseas Private Investment Corporation (Parts 4300--
                4399)
     XXXIV  Securities and Exchange Commission (Parts 4400--4499)
      XXXV  Office of Personnel Management (Parts 4500--4599)
    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)
     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)
    LXXXII  Special Inspector General for Iraq Reconstruction 
                (Parts 9200--9299)

[[Page 476]]

   LXXXIII  Special Inspector General for Afghanistan 
                Reconstruction (Parts 9300--9399)
    LXXXIV  Bureau of Consumer Financial Protection (Parts 9400--
                9499)
     XCVII  Department of Homeland Security Human Resources 
                Management System (Department of Homeland 
                Security--Office of Personnel Management) (Parts 
                9700--9799)

                      Title 6--Domestic Security

         I  Department of Homeland Security, Office of the 
                Secretary (Parts 1--99)

                         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, Marketing 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 Agriculture (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 
                Agriculture (Parts 600--699)
       VII  Farm Service Agency, Department of Agriculture (Parts 
                700--799)
      VIII  Grain Inspection, Packers and Stockyards 
                Administration (Federal Grain Inspection Service), 
                Department of Agriculture (Parts 800--899)
        IX  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Fruits, Vegetables, Nuts), Department 
                of Agriculture (Parts 900--999)
         X  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Milk), Department of Agriculture 
                (Parts 1000--1199)
        XI  Agricultural Marketing Service (Marketing Agreements 
                and Orders; 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)

[[Page 477]]

     XVIII  Rural Housing Service, Rural Business-Cooperative 
                Service, Rural Utilities Service, and Farm Service 
                Agency, Department 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 
                Agriculture (Parts 2900--2999)
       XXX  Office of the Chief Financial Officer, Department of 
                Agriculture (Parts 3000--3099)
      XXXI  Office of Environmental Quality, Department of 
                Agriculture (Parts 3100--3199)
     XXXII  Office of Procurement and Property Management, 
                Department of Agriculture (Parts 3200--3299)
    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 Agriculture (Parts 3600--3699)
    XXXVII  Economic Research Service, Department of Agriculture 
                (Parts 3700--3799)
   XXXVIII  World Agricultural Outlook Board, Department of 
                Agriculture (Parts 3800--3899)
       XLI  [Reserved]
      XLII  Rural Business-Cooperative Service and Rural Utilities 
                Service, Department of Agriculture (Parts 4200--
                4299)

                    Title 8--Aliens and Nationality

         I  Department of Homeland Security (Immigration and 
                Naturalization) (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 Agriculture (Parts 1--199)
        II  Grain Inspection, Packers and Stockyards 
                Administration (Packers and Stockyards Programs), 
                Department of Agriculture (Parts 200--299)

[[Page 478]]

       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)
      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, 
                Department of the Treasury (Parts 1800--1899)

[[Page 479]]

               Title 13--Business Credit and Assistance

         I  Small Business Administration (Parts 1--199)
       III  Economic Development Administration, Department of 
                Commerce (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 
                Administration, 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)
        XI  Technology Administration, Department of Commerce 
                (Parts 1100--1199)
      XIII  East-West Foreign Trade Board (Parts 1300--1399)
       XIV  Minority Business Development Agency (Parts 1400--
                1499)
            Subtitle C--Regulations Relating to Foreign Trade 
                Agreements
        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)

[[Page 480]]

                    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)

                     Title 20--Employees' Benefits

         I  Office of Workers' Compensation Programs, Department 
                of Labor (Parts 1--199)
        II  Railroad Retirement Board (Parts 200--399)
       III  Social Security Administration (Parts 400--499)
        IV  Employees' Compensation Appeals Board, Department of 
                Labor (Parts 500--599)
         V  Employment and Training Administration, Department of 
                Labor (Parts 600--699)
        VI  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)

[[Page 481]]

                       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)
        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 
                Development
         I  Office of Assistant Secretary for Equal Opportunity, 
                Department of Housing and Urban Development (Parts 
                100--199)

[[Page 482]]

        II  Office of Assistant Secretary for Housing-Federal 
                Housing Commissioner, 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 Development (Parts 400--499)
         V  Office of Assistant Secretary for Community Planning 
                and Development, Department of Housing and Urban 
                Development (Parts 500--599)
        VI  Office of Assistant Secretary for Community Planning 
                and Development, Department of Housing and Urban 
                Development (Parts 600--699) [Reserved]
       VII  Office of the Secretary, Department of Housing and 
                Urban Development (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 Development (Section 8 Housing Assistance 
                Programs, Section 202 Direct Loan Program, Section 
                202 Supportive Housing for the Elderly Program and 
                Section 811 Supportive Housing for Persons With 
                Disabilities Program) (Parts 800--899)
        IX  Office of Assistant Secretary for Public and Indian 
                Housing, Department of Housing and Urban 
                Development (Parts 900--1699)
         X  Office of Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (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, 
                Department of Housing and Urban Development (Parts 
                2700--2799)
        XX  Office of Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Parts 3200--3899)
      XXIV  Board of Directors of the HOPE for Homeowners Program 
                (Parts 4000--4099)
       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 
                Interior (Parts 500--599)
        IV  Office of Navajo and Hopi Indian Relocation (Parts 
                700--799)
         V  Bureau of Indian Affairs, Department of the Interior, 
                and Indian Health Service, Department of Health 
                and Human Services (Part 900)

[[Page 483]]

        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, 
                Department 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)

                            Title 29--Labor

            Subtitle A--Office of the Secretary of Labor (Parts 
                0--99)
            Subtitle B--Regulations Relating to Labor
         I  National Labor Relations Board (Parts 100--199)
        II  Office of Labor-Management Standards, Department of 
                Labor (Parts 200--299)
       III  National Railroad Adjustment Board (Parts 300--399)
        IV  Office of Labor-Management Standards, Department of 
                Labor (Parts 400--499)
         V  Wage and Hour Division, Department of Labor (Parts 
                500--899)
        IX  Construction Industry Collective Bargaining Commission 
                (Parts 900--999)
         X  National Mediation Board (Parts 1200--1299)
       XII  Federal Mediation and Conciliation Service (Parts 
                1400--1499)
       XIV  Equal Employment Opportunity Commission (Parts 1600--
                1699)

[[Page 484]]

      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 
                Interior (Parts 500--599)
       VII  Office of Surface Mining Reclamation and Enforcement, 
                Department 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)
        VI  Bureau of Engraving and Printing, Department of the 
                Treasury (Parts 600--699)
       VII  Federal Law Enforcement Training Center, Department of 
                the Treasury (Parts 700--799)
      VIII  Office of International Investment, Department of the 
                Treasury (Parts 800--899)
        IX  Federal Claims Collection Standards (Department of the 
                Treasury--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)

[[Page 485]]

         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 
                Defense
       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 (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 
                Education (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)
        II  Office of Elementary and Secondary Education, 
                Department of Education (Parts 200--299)
       III  Office of Special Education and Rehabilitative 
                Services, Department of Education (Parts 300--399)
        IV  Office of Vocational and Adult Education, Department 
                of Education (Parts 400--499)
         V  Office of Bilingual Education and Minority Languages 
                Affairs, Department of Education (Parts 500--599)
        VI  Office of Postsecondary Education, Department of 
                Education (Parts 600--699)
       VII  Office of Educational Research and Improvement, 
                Department of Education [Reserved]
            Subtitle C--Regulations Relating to Education
        XI  National Institute for Literacy (Parts 1100--1199)
       XII  National Council on Disability (Parts 1200--1299)

[[Page 486]]

                          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 
                Environmental Policy Foundation (Parts 1600--1699)

             Title 37--Patents, Trademarks, and Copyrights

         I  United States Patent and Trademark Office, Department 
                of Commerce (Parts 1--199)
        II  Copyright Office, Library of Congress (Parts 200--299)
       III  Copyright Royalty Board, Library of Congress (Parts 
                300--399)
        IV  Assistant Secretary for Technology Policy, Department 
                of Commerce (Parts 400--499)
         V  Under Secretary for Technology, Department of Commerce 
                (Parts 500--599)

           Title 38--Pensions, Bonuses, and Veterans' Relief

         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)

[[Page 487]]

        VI  Chemical Safety and Hazard Investigation Board (Parts 
                1600--1699)
       VII  Environmental Protection Agency and Department of 
                Defense; Uniform National Discharge Standards for 
                Vessels of the Armed Forces (Parts 1700--1799)

          Title 41--Public Contracts and Property Management

            Subtitle 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 
                Employment 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 
                Management [Reserved]
            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 Employees (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 
                Services (Parts 1--199)

[[Page 488]]

        IV  Centers for Medicare & Medicaid Services, Department 
                of Health and Human Services (Parts 400--599)
         V  Office of Inspector General-Health Care, Department of 
                Health and Human Services (Parts 1000--1999)

                   Title 43--Public Lands: Interior

            Subtitle A--Office of the Secretary of the Interior 
                (Parts 1--199)
            Subtitle B--Regulations Relating to Public Lands
         I  Bureau of Reclamation, Department of the Interior 
                (Parts 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 
                Homeland 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), 
                Administration for Children and Families, 
                Department of Health and Human Services (Parts 
                200--299)
       III  Office of Child Support Enforcement (Child Support 
                Enforcement 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) 
                [Reserved]
         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)

[[Page 489]]

      XIII  Office of Human Development Services, Department of 
                Health and Human Services (Parts 1300--1399)
       XVI  Legal Services Corporation (Parts 1600--1699)
      XVII  National Commission on Libraries and Information 
                Science (Parts 1700--1799)
     XVIII  Harry S. Truman Scholarship Foundation (Parts 1800--
                1899)
       XXI  Commission on Fine Arts (Parts 2100--2199)
     XXIII  Arctic Research Commission (Part 2301)
      XXIV  James Madison Memorial Fellowship Foundation (Parts 
                2400--2499)
       XXV  Corporation for National and Community Service (Parts 
                2500--2599)

                          Title 46--Shipping

         I  Coast Guard, Department of 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)
        IV  National Telecommunications and Information 
                Administration, Department of Commerce, and 
                National Highway Traffic Safety Administration, 
                Department of Transportation (Parts 400--499)

           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  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)

[[Page 490]]

        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 
                Acquisition 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 [Reserved]
        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 
                Administration (Parts 6100--6199)
        63  Department of Transportation Board of Contract Appeals 
                (Parts 6300--6399)
        99  Cost Accounting Standards Board, Office of Federal 
                Procurement 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, Department of Transportation 
                (Parts 100--199)
        II  Federal Railroad Administration, Department of 
                Transportation (Parts 200--299)

[[Page 491]]

       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, Department of 
                Transportation (Parts 1000--1399)
        XI  Research and Innovative Technology Administration, 
                Department of Transportation [Reserved]
       XII  Transportation Security Administration, Department of 
                Homeland Security (Parts 1500--1699)

                   Title 50--Wildlife and Fisheries

         I  United States Fish and Wildlife Service, Department of 
                the Interior (Parts 1--199)
        II  National Marine Fisheries Service, National Oceanic 
                and Atmospheric 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, Department of the Interior and National 
                Marine Fisheries Service, National Oceanic and 
                Atmospheric Administration, Department of 
                Commerce); Endangered Species Committee 
                Regulations (Parts 400--499)
         V  Marine Mammal Commission (Parts 500--599)
        VI  Fishery Conservation and Management, National Oceanic 
                and Atmospheric Administration, Department of 
                Commerce (Parts 600--699)

                      CFR Index and Finding Aids

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

[[Page 493]]





           Alphabetical List of Agencies Appearing in the CFR




                      (Revised as of July 1, 2012)

                                                  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
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                            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        7, VIII; 9, II
       Administration
  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, L
  Rural Development Administration                7, XLII
  Rural Housing Service                           7, XVIII, XXXV, L
  Rural Telephone Bank                            7, XVI
  Rural Utilities Service                         7, XVII, XVIII, XLII, L
  Secretary of Agriculture, Office of             7, Subtitle A
  Transportation, Office of                       7, XXXIII
  World Agricultural Outlook Board                7, XXXVIII
Air Force Department                              32, VII
  Federal Acquisition Regulation Supplement       48, 53
Air Transportation Stabilization Board            14, VI
Alcohol and Tobacco Tax and Trade Bureau          27, I
Alcohol, Tobacco, Firearms, and Explosives,       27, II
     Bureau of
AMTRAK                                            49, VII
American Battle Monuments Commission              36, IV
American Indians, Office of the Special Trustee   25, VII
Animal and Plant Health Inspection Service        7, III; 9, I

[[Page 494]]

Appalachian Regional Commission                   5, IX
Architectural and Transportation Barriers         36, XI
     Compliance Board
Arctic Research Commission                        45, XXIII
Armed Forces Retirement Home                      5, XI
Army Department                                   32, V
  Engineers, Corps of                             33, II; 36, III
  Federal Acquisition Regulation                  48, 51
Bilingual Education and Minority Languages        34, V
     Affairs, Office of
Blind or Severely Disabled, Committee for         41, 51
     Purchase from People Who Are
Broadcasting Board of Governors                   22, V
  Federal Acquisition Regulation                  48, 19
Bureau of Ocean Energy Management, Regulation,    30, II
     and Enforcement
Census Bureau                                     15, I
Centers for Medicare & Medicaid Services          42, IV
Central Intelligence Agency                       32, XIX
Chemical Safety and Hazardous Investigation       40, VI
     Board
Chief Financial Officer, Office of                7, XXX
Child Support Enforcement, Office of              45, III
Children and Families, Administration for         45, II, III, IV, X
Civil Rights, Commission on                       5, LXVIII; 45, VII
Civil Rights, Office for                          34, I
Court Services and Offender Supervision Agency    5, LXX
     for the District of Columbia
Coast Guard                                       33, I; 46, I; 49, IV
Coast Guard (Great Lakes Pilotage)                46, III
Commerce Department                               2, XIII; 44, IV; 50, VI
  Census Bureau                                   15, I
  Economic Affairs, Under Secretary               37, V
  Economic Analysis, Bureau of                    15, VIII
  Economic Development Administration             13, III
  Emergency Management and Assistance             44, IV
  Federal Acquisition Regulation                  48, 13
  Foreign-Trade Zones Board                       15, IV
  Industry and Security, Bureau of                15, VII
  International Trade Administration              15, III; 19, III
  National Institute of Standards and Technology  15, II
  National Marine Fisheries Service               50, II, IV
  National Oceanic and Atmospheric                15, IX; 50, II, III, IV, 
       Administration                             VI
  National Telecommunications and Information     15, XXIII; 47, III, IV
       Administration
  National Weather Service                        15, IX
  Patent and Trademark Office, United States      37, I
  Productivity, Technology and Innovation,        37, IV
       Assistant Secretary for
  Secretary of Commerce, Office of                15, Subtitle A
  Technology, Under Secretary for                 37, V
  Technology Administration                       15, XI
  Technology Policy, Assistant Secretary for      37, IV
Commercial Space Transportation                   14, III
Commodity Credit Corporation                      7, XIV
Commodity Futures Trading Commission              5, XLI; 17, I
Community Planning and Development, Office of     24, V, VI
     Assistant Secretary for
Community Services, Office of                     45, X
Comptroller of the Currency                       12, I
Construction Industry Collective Bargaining       29, IX
     Commission
Consumer Financial Protection Bureau              12, X
Consumer Product Safety Commission                5, LXXI; 16, II
Copyright Office                                  37, II
Copyright Royalty Board                           37, III
Corporation for National and Community Service    2, XXII; 45, XII, XXV
Cost Accounting Standards Board                   48, 99
Council on Environmental Quality                  40, V
Court Services and Offender Supervision Agency    5, LXX; 28, VIII
   for the District of Columbia
[[Page 495]]

Customs and Border Protection                     19, I
Defense Contract Audit Agency                     32, I
Defense Department                                2, XI; 5, XXVI; 32, 
                                                  Subtitle A; 40, VII
  Advanced Research Projects Agency               32, I
  Air Force Department                            32, VII
  Army Department                                 32, V; 33, II; 36, III, 
                                                  48, 51
  Defense Acquisition Regulations System          48, 2
  Defense Intelligence Agency                     32, I
  Defense Logistics Agency                        32, I, XII; 48, 54
  Engineers, Corps of                             33, II; 36, III
  National Imagery and Mapping Agency             32, I
  Navy Department                                 32, VI; 48, 52
  Secretary of Defense, Office of                 2, XI; 32, I
Defense Contract Audit Agency                     32, I
Defense Intelligence Agency                       32, I
Defense Logistics Agency                          32, XII; 48, 54
Defense Nuclear Facilities Safety Board           10, XVII
Delaware River Basin Commission                   18, III
District of Columbia, Court Services and          5, LXX; 28, VIII
     Offender Supervision Agency for the
Drug Enforcement Administration                   21, II
East-West Foreign Trade Board                     15, XIII
Economic Affairs, Under Secretary                 37, V
Economic Analysis, Bureau of                      15, VIII
Economic Development Administration               13, III
Economic Research Service                         7, XXXVII
Education, Department of                          2, XXXIV; 5, LIII
  Bilingual Education and Minority Languages      34, V
       Affairs, Office of
  Civil Rights, Office for                        34, I
  Educational Research and Improvement, Office    34, VII
       of
  Elementary and Secondary Education, Office of   34, II
  Federal Acquisition Regulation                  48, 34
  Postsecondary Education, Office of              34, VI
  Secretary of Education, Office of               34, Subtitle A
  Special Education and Rehabilitative Services,  34, III
       Office of
  Vocational and Adult Education, Office of       34, IV
Educational Research and Improvement, Office of   34, VII
Election Assistance Commission                    2, LVIII; 11, II
Elementary and Secondary Education, Office of     34, II
Emergency Oil and Gas Guaranteed Loan Board       13, V
Emergency Steel Guarantee Loan Board              13, IV
Employee Benefits Security Administration         29, XXV
Employees' Compensation Appeals Board             20, IV
Employees Loyalty Board                           5, V
Employment and Training Administration            20, V
Employment Standards Administration               20, VI
Endangered Species Committee                      50, IV
Energy, Department of                             2, IX; 5, XXIII; 10, II, 
                                                  III, X
  Federal Acquisition Regulation                  48, 9
  Federal Energy Regulatory Commission            5, XXIV; 18, I
  Property Management Regulations                 41, 109
Energy, Office of                                 7, XXIX
Engineers, Corps of                               33, II; 36, III
Engraving and Printing, Bureau of                 31, VI
Environmental Protection Agency                   2, XV; 5, LIV; 40, I, IV, 
                                                  VII
  Federal Acquisition Regulation                  48, 15
  Property Management Regulations                 41, 115
Environmental Quality, Office of                  7, XXXI
Equal Employment Opportunity Commission           5, LXII; 29, XIV
Equal Opportunity, Office of Assistant Secretary  24, I
     for
Executive Office of the President                 3, I
  Administration, Office of                       5, XV

[[Page 496]]

  Environmental Quality, Council on               40, V
  Management and Budget, Office of                2, Subtitle A; 5, III, 
                                                  LXXVII; 14, VI; 48, 99
  National Drug Control Policy, Office of         21, III
  National Security Council                       32, XXI; 47, 2
  Presidential Documents                          3
  Science and Technology Policy, Office of        32, XXIV; 47, II
  Trade Representative, Office of the United      15, XX
       States
Export-Import Bank of the United States           2, XXXV; 5, LII; 12, IV
Family Assistance, Office of                      45, II
Farm Credit Administration                        5, XXXI; 12, VI
Farm Credit System Insurance Corporation          5, XXX; 12, XIV
Farm Service Agency                               7, VII, XVIII
Federal Acquisition Regulation                    48, 1
Federal Aviation Administration                   14, I
  Commercial Space Transportation                 14, III
Federal Claims Collection Standards               31, IX
Federal Communications Commission                 5, XXIX; 47, I
Federal Contract Compliance Programs, Office of   41, 60
Federal Crop Insurance Corporation                7, IV
Federal Deposit Insurance Corporation             5, XXII; 12, III
Federal Election Commission                       5, XXXVII; 11, I
Federal Emergency Management Agency               44, I
Federal Employees Group Life Insurance Federal    48, 21
     Acquisition Regulation
Federal Employees Health Benefits Acquisition     48, 16
     Regulation
Federal Energy Regulatory Commission              5, XXIV; 18, I
Federal Financial Institutions Examination        12, XI
     Council
Federal Financing Bank                            12, VIII
Federal Highway Administration                    23, I, II
Federal Home Loan Mortgage Corporation            1, IV
Federal Housing Enterprise Oversight Office       12, XVII
Federal Housing Finance Agency                    5, LXXX; 12, XII
Federal Housing Finance Board                     12, IX
Federal Labor Relations Authority                 5, XIV, XLIX; 22, XIV
Federal Law Enforcement Training Center           31, VII
Federal Management Regulation                     41, 102
Federal Maritime Commission                       46, IV
Federal Mediation and Conciliation Service        29, XII
Federal Mine Safety and Health Review Commission  5, LXXIV; 29, XXVII
Federal Motor Carrier Safety Administration       49, III
Federal Prison Industries, Inc.                   28, III
Federal Procurement Policy Office                 48, 99
Federal Property Management Regulations           41, 101
Federal Railroad Administration                   49, II
Federal Register, Administrative Committee of     1, I
Federal Register, Office of                       1, II
Federal Reserve System                            12, II
  Board of Governors                              5, LVIII
Federal Retirement Thrift Investment Board        5, VI, LXXVI
Federal Service Impasses Panel                    5, XIV
Federal Trade Commission                          5, XLVII; 16, I
Federal Transit Administration                    49, VI
Federal Travel Regulation System                  41, Subtitle F
Financial Crimes Enforcement Network              31, X
Financial Research Office                         12, XVI
Financial Stability Oversight Council             12, XIII
Fine Arts, Commission on                          45, XXI
Fiscal Service                                    31, II
Fish and Wildlife Service, United States          50, I, IV
Food and Drug Administration                      21, I
Food and Nutrition Service                        7, II
Food Safety and Inspection Service                9, III
Foreign Agricultural Service                      7, XV
Foreign Assets Control, Office of                 31, V
Foreign Claims Settlement Commission of the       45, V
     United States
Foreign Service Grievance Board                   22, IX

[[Page 497]]

Foreign Service Impasse Disputes Panel            22, XIV
Foreign Service Labor Relations Board             22, XIV
Foreign-Trade Zones Board                         15, IV
Forest Service                                    36, II
General Services Administration                   5, LVII; 41, 105
  Contract Appeals, Board of                      48, 61
  Federal Acquisition Regulation                  48, 5
  Federal Management Regulation                   41, 102
  Federal Property Management Regulations         41, 101
  Federal Travel Regulation System                41, Subtitle F
  General                                         41, 300
  Payment From a Non-Federal Source for Travel    41, 304
       Expenses
  Payment of Expenses Connected With the Death    41, 303
       of Certain Employees
  Relocation Allowances                           41, 302
  Temporary Duty (TDY) Travel Allowances          41, 301
Geological Survey                                 30, IV
Government Accountability Office                  4, I
Government Ethics, Office of                      5, XVI
Government National Mortgage Association          24, III
Grain Inspection, Packers and Stockyards          7, VIII; 9, II
     Administration
Harry S. Truman Scholarship Foundation            45, XVIII
Health and Human Services, Department of          2, III; 5, XLV; 45, 
                                                  Subtitle A,
  Centers for Medicare & Medicaid Services        42, IV
  Child Support Enforcement, Office of            45, III
  Children and Families, Administration for       45, II, III, IV, X
  Community Services, Office of                   45, X
  Family Assistance, Office of                    45, II
  Federal Acquisition Regulation                  48, 3
  Food and Drug Administration                    21, I
  Human Development Services, Office of           45, XIII
  Indian Health Service                           25, V
  Inspector General (Health Care), Office of      42, V
  Public Health Service                           42, I
  Refugee Resettlement, Office of                 45, IV
Homeland Security, Department of                  2, XXX; 6, I; 8, I
  Coast Guard                                     33, I; 46, I; 49, IV
  Coast Guard (Great Lakes Pilotage)              46, III
  Customs and Border Protection                   19, I
  Federal Emergency Management Agency             44, I
  Human Resources Management and Labor Relations  5, XCVII
       Systems
  Immigration and Customs Enforcement Bureau      19, IV
  Transportation Security Administration          49, XII
HOPE for Homeowners Program, Board of Directors   24, XXIV
     of
Housing and Urban Development, Department of      2, XXIV; 5, LXV; 24, 
                                                  Subtitle B
  Community Planning and Development, Office of   24, V, VI
       Assistant Secretary for
  Equal Opportunity, Office of Assistant          24, I
       Secretary for
  Federal Acquisition Regulation                  48, 24
  Federal Housing Enterprise Oversight, Office    12, XVII
       of
  Government National Mortgage Association        24, III
  Housing--Federal Housing Commissioner, Office   24, II, VIII, X, XX
       of Assistant Secretary for
  Housing, Office of, and Multifamily Housing     24, IV
       Assistance Restructuring, Office of
  Inspector General, Office of                    24, XII
  Public and Indian Housing, Office of Assistant  24, IX
       Secretary for
  Secretary, Office of                            24, Subtitle A, VII
Housing--Federal Housing Commissioner, Office of  24, II, VIII, X, XX
     Assistant Secretary for
Housing, Office of, and Multifamily Housing       24, IV
     Assistance Restructuring, Office of
Human Development Services, Office of             45, XIII
Immigration and Customs Enforcement Bureau        19, IV

[[Page 498]]

Immigration Review, Executive Office for          8, V
Independent Counsel, Office of                    28, VII
Indian Affairs, Bureau of                         25, I, V
Indian Affairs, Office of the Assistant           25, VI
     Secretary
Indian Arts and Crafts Board                      25, II
Indian Health Service                             25, V
Industry and Security, Bureau of                  15, VII
Information Resources Management, Office of       7, XXVII
Information Security Oversight Office, National   32, XX
     Archives and Records Administration
Inspector General
  Agriculture Department                          7, XXVI
  Health and Human Services Department            42, V
  Housing and Urban Development Department        24, XII, XV
Institute of Peace, United States                 22, XVII
Inter-American Foundation                         5, LXIII; 22, X
Interior Department                               2, XIV
  American Indians, Office of the Special         25, VII
       Trustee
  Bureau of Ocean Energy Management, Regulation,  30, II
       and Enforcement
  Endangered Species Committee                    50, IV
  Federal Acquisition Regulation                  48, 14
  Federal Property Management Regulations System  41, 114
  Fish and Wildlife Service, United States        50, I, IV
  Geological Survey                               30, IV
  Indian Affairs, Bureau of                       25, I, V
  Indian Affairs, Office of the Assistant         25, VI
       Secretary
  Indian Arts and Crafts Board                    25, II
  Land Management, Bureau of                      43, II
  National Indian Gaming Commission               25, III
  National Park Service                           36, I
  Natural Resource Revenue, Office of             30, XII
  Ocean Energy Management, Bureau of              30, V
  Reclamation, Bureau of                          43, I
  Secretary of the Interior, Office of            2, XIV; 43, Subtitle A
  Surface Mining Reclamation and Enforcement,     30, VII
       Office of
Internal Revenue Service                          26, I
International Boundary and Water Commission,      22, XI
     United States and Mexico, United States 
     Section
International Development, United States Agency   22, II
     for
  Federal Acquisition Regulation                  48, 7
International Development Cooperation Agency,     22, XII
     United States
International Joint Commission, United States     22, IV
     and Canada
International Organizations Employees Loyalty     5, V
     Board
International Trade Administration                15, III; 19, III
International Trade Commission, United States     19, II
Interstate Commerce Commission                    5, XL
Investment Security, Office of                    31, VIII
Iraq Reconstruction, Special Inspector General    5, LXXXVII
     for
James Madison Memorial Fellowship Foundation      45, XXIV
Japan-United States Friendship Commission         22, XVI
Joint Board for the Enrollment of Actuaries       20, VIII
Justice Department                                2, XXVIII; 5, XXVIII; 28, 
                                                  I, XI; 40, IV
  Alcohol, Tobacco, Firearms, and Explosives,     27, II
       Bureau of
  Drug Enforcement Administration                 21, II
  Federal Acquisition Regulation                  48, 28
  Federal Claims Collection Standards             31, IX
  Federal Prison Industries, Inc.                 28, III
  Foreign Claims Settlement Commission of the     45, V
       United States
  Immigration Review, Executive Office for        8, V
  Offices of Independent Counsel                  28, VI
  Prisons, Bureau of                              28, V
  Property Management Regulations                 41, 128
Labor Department                                  5, XLII

[[Page 499]]

  Employee Benefits Security Administration       29, XXV
  Employees' Compensation Appeals Board           20, IV
  Employment and Training Administration          20, V
  Employment Standards Administration             20, VI
  Federal Acquisition Regulation                  48, 29
  Federal Contract Compliance Programs, Office    41, 60
       of
  Federal Procurement Regulations System          41, 50
  Labor-Management Standards, Office of           29, II, IV
  Mine Safety and Health Administration           30, I
  Occupational Safety and Health Administration   29, XVII
  Office of Workers' Compensation Programs        20, VII
  Public Contracts                                41, 50
  Secretary of Labor, Office of                   29, Subtitle A
  Veterans' Employment and Training Service,      41, 61; 20, IX
       Office of the Assistant Secretary for
  Wage and Hour Division                          29, V
  Workers' Compensation Programs, Office of       20, I
Labor-Management Standards, Office of             29, II, IV
Land Management, Bureau of                        43, II
Legal Services Corporation                        45, XVI
Library of Congress                               36, VII
  Copyright Office                                37, II
  Copyright Royalty Board                         37, III
Local Television Loan Guarantee Board             7, XX
Management and Budget, Office of                  5, III, LXXVII; 14, VI; 
                                                  48, 99
Marine Mammal Commission                          50, V
Maritime Administration                           46, II
Merit Systems Protection Board                    5, II, LXIV
Micronesian Status Negotiations, Office for       32, XXVII
Millennium Challenge Corporation                  22, XIII
Mine Safety and Health Administration             30, I
Minority Business Development Agency              15, XIV
Miscellaneous Agencies                            1, IV
Monetary Offices                                  31, I
Morris K. Udall Scholarship and Excellence in     36, XVI
     National Environmental Policy Foundation
Museum and Library Services, Institute of         2, XXXI
National Aeronautics and Space Administration     2, XVIII; 5, LIX; 14, V
  Federal Acquisition Regulation                  48, 18
National Agricultural Library                     7, XLI
National Agricultural Statistics Service          7, XXXVI
National and Community Service, Corporation for   2, XXII; 45, XII, XXV
National Archives and Records Administration      2, XXVI; 5, LXVI; 36, XII
  Information Security Oversight Office           32, XX
National Capital Planning Commission              1, IV
National Commission for Employment Policy         1, IV
National Commission on Libraries and Information  45, XVII
     Science
National Council on Disability                    34, XII
National Counterintelligence Center               32, XVIII
National Credit Union Administration              12, VII
National Crime Prevention and Privacy Compact     28, IX
     Council
National Drug Control Policy, Office of           21, III
National Endowment for the Arts                   2, XXXII
National Endowment for the Humanities             2, XXXIII
National Foundation on the Arts and the           45, XI
     Humanities
National Highway Traffic Safety Administration    23, II, III; 47, VI; 49, V
National Imagery and Mapping Agency               32, I
National Indian Gaming Commission                 25, III
National Institute for Literacy                   34, XI
National Institute of Food and Agriculture        7, XXXIV
National Institute of Standards and Technology    15, II
National Intelligence, Office of Director of      32, XVII
National Labor Relations Board                    5, LXI; 29, I
National Marine Fisheries Service                 50, II, IV
National Mediation Board                          29, X

[[Page 500]]

National Oceanic and Atmospheric Administration   15, IX; 50, II, III, IV, 
                                                  VI
National Park Service                             36, I
National Railroad Adjustment Board                29, III
National Railroad Passenger Corporation (AMTRAK)  49, VII
National Science Foundation                       2, XXV; 5, XLIII; 45, VI
  Federal Acquisition Regulation                  48, 25
National Security Council                         32, XXI
National Security Council and Office of Science   47, II
     and Technology Policy
National Telecommunications and Information       15, XXIII; 47, III, IV
     Administration
National Transportation Safety Board              49, VIII
Natural Resources Conservation Service            7, VI
Natural Resource Revenue, Office of               30, XII
Navajo and Hopi Indian Relocation, Office of      25, IV
Navy Department                                   32, VI
  Federal Acquisition Regulation                  48, 52
Neighborhood Reinvestment Corporation             24, XXV
Northeast Interstate Low-Level Radioactive Waste  10, XVIII
     Commission
Nuclear Regulatory Commission                     2, XX; 5, XLVIII; 10, I
  Federal Acquisition Regulation                  48, 20
Occupational Safety and Health Administration     29, XVII
Occupational Safety and Health Review Commission  29, XX
Ocean Energy Management, Bureau of                30, V
Offices of Independent Counsel                    28, VI
Office of Workers' Compensation Programs          20, VII
Oklahoma City National Memorial Trust             36, XV
Operations Office                                 7, XXVIII
Overseas Private Investment Corporation           5, XXXIII; 22, VII
Patent and Trademark Office, United States        37, I
Payment From a Non-Federal Source for Travel      41, 304
     Expenses
Payment of Expenses Connected With the Death of   41, 303
     Certain Employees
Peace Corps                                       2, XXXVII; 22, III
Pennsylvania Avenue Development Corporation       36, IX
Pension Benefit Guaranty Corporation              29, XL
Personnel Management, Office of                   5, I, XXXV; 45, VIII
  Human Resources Management and Labor Relations  5, XCVII
       Systems, Department of Homeland Security
  Federal Acquisition Regulation                  48, 17
  Federal Employees Group Life Insurance Federal  48, 21
       Acquisition Regulation
  Federal Employees Health Benefits Acquisition   48, 16
       Regulation
Pipeline and Hazardous Materials Safety           49, I
     Administration
Postal Regulatory Commission                      5, XLVI; 39, III
Postal Service, United States                     5, LX; 39, I
Postsecondary Education, Office of                34, VI
President's Commission on White House             1, IV
     Fellowships
Presidential Documents                            3
Presidio Trust                                    36, X
Prisons, Bureau of                                28, V
Procurement and Property Management, Office of    7, XXXII
Productivity, Technology and Innovation,          37, IV
     Assistant Secretary
Public Contracts, Department of Labor             41, 50
Public and Indian Housing, Office of Assistant    24, IX
     Secretary for
Public Health Service                             42, I
Railroad Retirement Board                         20, II
Reclamation, Bureau of                            43, I
Recovery Accountability and Transparency Board    4, II
Refugee Resettlement, Office of                   45, IV
Relocation Allowances                             41, 302
Research and Innovative Technology                49, XI
     Administration
Rural Business-Cooperative Service                7, XVIII, XLII, L
Rural Development Administration                  7, XLII
Rural Housing Service                             7, XVIII, XXXV, L

[[Page 501]]

Rural Telephone Bank                              7, XVI
Rural Utilities Service                           7, XVII, XVIII, XLII, L
Saint Lawrence Seaway Development Corporation     33, IV
Science and Technology Policy, Office of          32, XXIV
Science and Technology Policy, Office of, and     47, II
     National Security Council
Secret Service                                    31, IV
Securities and Exchange Commission                5, XXXIV; 17, II
Selective Service System                          32, XVI
Small Business Administration                     2, XXVII; 13, I
Smithsonian Institution                           36, V
Social Security Administration                    2, XXIII; 20, III; 48, 23
Soldiers' and Airmen's Home, United States        5, XI
Special Counsel, Office of                        5, VIII
Special Education and Rehabilitative Services,    34, III
     Office of
State Department                                  2, VI; 22, I; 28, XI
  Federal Acquisition Regulation                  48, 6
Surface Mining Reclamation and Enforcement,       30, VII
     Office of
Surface Transportation Board                      49, X
Susquehanna River Basin Commission                18, VIII
Technology Administration                         15, XI
Technology Policy, Assistant Secretary for        37, IV
Technology, Under Secretary for                   37, V
Tennessee Valley Authority                        5, LXIX; 18, XIII
Thrift Supervision Office, Department of the      12, V
     Treasury
Trade Representative, United States, Office of    15, XX
Transportation, Department of                     2, XII; 5, L
  Commercial Space Transportation                 14, III
  Contract Appeals, Board of                      48, 63
  Emergency Management and Assistance             44, IV
  Federal Acquisition Regulation                  48, 12
  Federal Aviation Administration                 14, I
  Federal Highway Administration                  23, I, II
  Federal Motor Carrier Safety Administration     49, III
  Federal Railroad Administration                 49, II
  Federal Transit Administration                  49, VI
  Maritime Administration                         46, II
  National Highway Traffic Safety Administration  23, II, III; 47, IV; 49, V
  Pipeline and Hazardous Materials Safety         49, I
       Administration
  Saint Lawrence Seaway Development Corporation   33, IV
  Secretary of Transportation, Office of          14, II; 49, Subtitle A
  Surface Transportation Board                    49, X
  Transportation Statistics Bureau                49, XI
Transportation, Office of                         7, XXXIII
Transportation Security Administration            49, XII
Transportation Statistics Bureau                  49, XI
Travel Allowances, Temporary Duty (TDY)           41, 301
Treasury Department                               5, XXI; 12, XV; 17, IV; 
                                                  31, IX
  Alcohol and Tobacco Tax and Trade Bureau        27, I
  Community Development Financial Institutions    12, XVIII
       Fund
  Comptroller of the Currency                     12, I
  Customs and Border Protection                   19, I
  Engraving and Printing, Bureau of               31, VI
  Federal Acquisition Regulation                  48, 10
  Federal Claims Collection Standards             31, IX
  Federal Law Enforcement Training Center         31, VII
  Financial Crimes Enforcement Network            31, X
  Fiscal Service                                  31, II
  Foreign Assets Control, Office of               31, V
  Internal Revenue Service                        26, I
  Investment Security, Office of                  31, VIII
  Monetary Offices                                31, I
  Secret Service                                  31, IV
  Secretary of the Treasury, Office of            31, Subtitle A
  Thrift Supervision, Office of                   12, V
Truman, Harry S. Scholarship Foundation           45, XVIII

[[Page 502]]

United States and Canada, International Joint     22, IV
     Commission
United States and Mexico, International Boundary  22, XI
     and Water Commission, United States Section
Utah Reclamation Mitigation and Conservation      43, III
     Commission
Veterans Affairs Department                       2, VIII; 38, I
  Federal Acquisition Regulation                  48, 8
Veterans' Employment and Training Service,        41, 61; 20, IX
     Office of the Assistant Secretary for
Vice President of the United States, Office of    32, XXVIII
Vocational and Adult Education, Office of         34, IV
Wage and Hour Division                            29, V
Water Resources Council                           18, VI
Workers' Compensation Programs, Office of         20, I
World Agricultural Outlook Board                  7, XXXVIII

[[Page 503]]



List of CFR Sections Affected



All changes in this volume of the Code of Federal Regulations that were 
made by documents published in the Federal Register since January 1, 
2001, are enumerated in the following list. Entries indicate the nature 
of the changes effected. Page numbers refer to Federal Register pages. 
The user should consult the entries for chapters and parts as well as 
sections for revisions.
For the period before January 1, 2001, see the ``List of CFR Sections 
Affected, 1949-1963, 1964-1972, 1973-1985, and 1986-2000'' published in 
11 separate volumes.

                                  2001

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

[[Page 504]]

3001.161--3001.166 (Subpart I) Added...............................54441
3001.171--3001.176 (Subpart J) Added...............................54443
3001.181--3001.182 (Subpart K) Added...............................54444

                                  2002

39 CFR
                                                                   67 FR
                                                                    Page
Chapter I
3 Authority citation revised........................................2135
3.4 (i) revised; (j) added..........................................2135
20 IMM amended; incorporation by reference..................38597, 58945
111 DMM amended; incorporation by reference.................8720, 10620,
14865, 18698, 20645, 30572, 40167, 45063, 53457, 53881, 63551, 65500, 
66056, 78178
    Authority citation revised......................................8720
111.3 (f) table amended............................................46875
111.5 Revised......................................................46875
224.3 (a) and (c) revised; (b)(6) and (d) removed; (b)(7) and (8) 
        redesignated as (b)(6) and (7).............................16024
224.4 (b)(1) and (2) amended.......................................16024
229.2 (b)(1) amended...............................................16024
230 Added..........................................................16025
233 Heading revised................................................16024
233.1 (c) revised; (d) amended.....................................16024
255 Revised........................................................75814
265.6 (d) introductory text and (2) revised; (d)(3) through (d)(8) 
        redesignated as (d)(4) through (d)(9); new (d)(3) added....46393
266.6 (a)(1) amended...............................................16024
266.9 (b)(7) added.................................................79859
273.2 (c) revised..................................................16024
501.2 Introductory text, (c) and (d) revised.......................69479
    (c)(i) and (ii) correctly designated as (c)(1) and (2).........71843
501.23 (g) and (h) revised.........................................69138
551 Authority citation revised......................................5215
551.1 Revised.......................................................5215
551.5 (a) revised...................................................5215
551.6 (a) revised...................................................5216
551.8 (b), (c) and (d) introductory text revised....................5216
927 Revised........................................................50353
952.5 Amended......................................................62179
952.33 Amended.....................................................62179
957.2 Amended......................................................62179
958.3 (d) amended..................................................62179
960.3 (b) amended..................................................62179
962.2 (d) and (m) revised..........................................62179
962.12 (f)(1) amended..............................................62179
962.13 (f)(2) amended..............................................62179
962.21 (b)(4) amended..............................................62179
964.1 Amended......................................................62179
964.2 Amended......................................................62179
965.3 Amended......................................................62179
Chapter III
3001.6 (b) and (c) revised.........................................67559
3001.9 Revised.....................................................67559
3001.10 Revised....................................................67559
3001.11 Revised....................................................67559
3001.12 Revised....................................................67559
3001.13 Revised....................................................67559
3001.20 (c) revised................................................67561
3001.20a (a) revised...............................................67561
3001.26 (a) through (c) and (e) revised............................67561
3001.27 (a) through (c) and (e) revised............................67562
3001.28 (a) through (c) and (e) revised............................67562
3001.30 (e)(2) and (3) revised.....................................67563
3001.31 (b)(2)(iv) amended.........................................67563
3001.42 (a) revised................................................67563

                                  2003

39 CFR
                                                                   68 FR
                                                                    Page
Chapter I
6.1 Revised........................................................28773
111 Authority citation revised.....................................49362
111 DMM amended; incorporation by reference..................4715, 9008,
15056, 33862, 34807, 40776, 49396, 52102, 54665, 56557, 58276, 59732
    Corrected......................................................61624
111.3 (f) table amended............................................66018
111.5 Revised......................................................66018
224.1 (a) amended; (f) removed.....................................56558
230 Authority citation revised.....................................57372
230.1--230.5 (Subpart A) Subpart designation and heading added.....57372
230.10--230.27 (Subpart B) Added...................................57372
261.2 (b) amended..................................................56558
261.4 (a) amended; (b) revised.....................................56558
262.2 (a), (c) and (d) redesignated as (c), (d) and (e); new (a) 
        added; (b) revised; new (e) amended........................56558
262.4 (a) and (b) amended..........................................56558
262.5 (d)(2) amended...............................................56558
263.3 (a) amended..................................................56558
263.4 Amended......................................................56558

[[Page 505]]

263.5 Amended......................................................56558
264.3 (a) amended..................................................56558
265.3 (a) and (b) amended..........................................56558
265.4 Amended......................................................56559
265.5 Amended......................................................56559
265.6 (b) introductory text, (3)(ii), (d)(1), (4)(i), (ii), 
        (5)(ii)(F), (iv) and (9)(i) amended........................56559
265.7 (a)(2) amended...............................................56559
265.9 (b)(1)(i), (ii), (iii), (3), (g)(1), (2)(i) and (4) amended; 
        (e)(3) removed; (g)(5) revised.............................56559
265.10 Amended.....................................................56559
265.12 (b)(7) amended..............................................56559
265 Appendix A revised.............................................56559
266.3 (a), (c) and (d)(2) introductory text amended; (d)(2)(i) 
        through (vi) revised.......................................56560
266.4 (b)(6)(i), (iii) and (iv) amended............................56560
266.5 (d) amended..................................................56560
266.6 (a) and (d) amended..........................................56560
266.7 (a)(4) amended...............................................56560
266.8 (b)(3) amended...............................................56560
266.10 (a), (b), (c), (d) introductory text and (2) amended........56560
267.3 (a) introductory text amended................................56560
267.5 (e)(3)(i) amended............................................56560
268.1 (b) amended..................................................56560
501.22 Revised......................................................2698
501.28 Revised......................................................2699
964.6 Amended; CFR correction......................................19152
Chapter III
3001.9 (e) added......................................................47
3001.20b (a), (b) and (c) redesignated as (b), (c) and (d); new 
        (a) added.....................................................47
3001.53 Revised....................................................48299
3001.54 (a)(1) revised.............................................48299
3001.59 (c) and (e)(4) revised.....................................12589
3001.63 Revised....................................................48299
3001.69b (b), (c), and (d) revised.................................12590
3001.102 Revised...................................................65373
3001.163 (b), (c), and (d) revised.................................12590
3001.173 (b), (c), and (d) revised.................................12590

                                  2004

39 CFR
                                                                   69 FR
                                                                    Page
Title 39 Nomenclature change.......................................18803
Chapter I
3.3 (o) removed....................................................42340
    (a) removed....................................................58057
3.4 (k) added......................................................42340
    (c) revised....................................................58057
4.2 Amended........................................................58058
6.1 Amended........................................................58058
6.6 (f) amended....................................................58058
20 Revised.........................................................59546
    IMM amended; incorporation by reference........................63946
111 DMM amended; incorporation by reference................11532, 11534,
17062, 22401, 23438, 25321, 45263, 53811, 54005, 62582, 63452
    Regulation at 69 FR 25321 withdrawn............................26305
    Authority citation revised.....................................53644
    DMM amended; incorporation by reference; interim...............53644
111.1 Amended......................................................59139
111.2 (a) and (c) amended..........................................59139
111.5 Removed......................................................59139
211.2 (a)(2) amended........................................36022, 59545
221 Revised........................................................53000
222 Revised........................................................53000
223 Revised........................................................53000
224 Removed........................................................53002
225 Removed........................................................53002
226 Removed........................................................53002
227 Removed........................................................53002
228 Removed........................................................53002
229 Removed........................................................53002
233.2 (b)(1) introductory text, (ii), (ix), (x) and (b)(2) note 
        revised....................................................16166
241.3 (b)(2) introductory text, (i), (d)(4) introductory text, 
        (e)(2)(ii)(A), (f)(1), (2) introductory text, (3), (4), 
        (5), (g)(1)(i), (2), (3)(i), (ii) introductory text and 
        (4)(ii) revised............................................11536
255 Revised........................................................44692
265.6 (d)(1), (7), (9)(i) and (g) amended; (d)(5)(i) revised.......34932
    (g) amended....................................................39851
265.7 (a)(4) amended; (d)(1)(iii) removed; (d)(1)(iv) redesignated 
        as new (d)(1)(iii).........................................34935
265.9 (g)(5) amended...............................................34935
265.13 (a)(4) revised..............................................34935
266.5 (a) revised; (c) amended.....................................34935
266.10 (b) amended.................................................34935
310.5 (b) revised..................................................54006
310.6 Revised......................................................54006
320.3 (a) revised; (b) amended.....................................54006
501.1 Revised......................................................60090
    (a) corrected..................................................61085
    (f) added......................................................67508

[[Page 506]]

501.3 Revised......................................................60091
501.23 (r)(1) revised..............................................55506
551 Authority citation revised......................................7689
551.8 (a), (c), (d), (e) and (g) revised............................7689
601 Revised........................................................36022
601.100 Revised.............................................45274, 51367
601.101 Revised.............................................45274, 51367
912.2 (b) amended..................................................52607
912.4 Revised......................................................52607
912.5 (a) amended; (b) revised.....................................52607
912.9 (b) and (c) amended..........................................52607
912.10 Amended.....................................................52607
912.12 Amended.....................................................52607
Chapter III
3001.5 (r) added....................................................7593
3001.51 Revised.....................................................7593
3001.61 Revised.....................................................7593
3001.190--3001.198 (Subpart L) Added................................7593

                                  2005

39 CFR
                                                                   70 FR
                                                                    Page
Chapter I
20 IMM amended; incorporation by reference..................70965, 70977
    IMM amended; incorporation by reference; corrected.............71890
20.1 Revised.......................................................70964
20.2 Revised.......................................................70964
111 DMM amended; incorporation by reference..................1347, 2954,
29959, 61039, 70982, 72221, 75734
    DMM amended; incorporation by reference; interim................5055
    DMM amended; incorporation by reference; eff. 8-7-05...........33837
111.1 Amended......................................................14535
111.2 Amended......................................................14535
111.3 Amended......................................................14535
111.4 Amended......................................................14535
211.2 (a)(2) revised...............................................20293
232 Authority citation revised.....................................72078
232.1 (a) revised; (e) and (h)(1) amended..........................72078
254 Added; eff. 10-1-05............................................28214
265.6 (d)(3), (4), (5) and (9) revised.............................22512
    (g) figures revised............................................52016
266.9 Revised......................................................22513
501.13 Heading revised; (e) added...................................1349
501.23 (r) revised...................................................705
551.8 (e) introductory text revised.................................6765
601 Revised........................................................20293
Chapter III
3001 Nomenclature change...........................................48277
3001.197 Revised; eff. 7-5-05......................................32497
3001.198 Revised; eff. 7-5-05......................................32497
3002 Nomenclature change...........................................48277
3003 Nomenclature change...........................................48277

                                  2006

39 CFR
                                                                   71 FR
                                                                    Page
Chapter I
3.3 (f) and (g) revised............................................64647
111 DMM amended; incorporation by reference..................1977, 9452,
13269, 16044, 30288, 54199, 64119
    DMM amended; incorporation by reference; interim........38538, 64122
    DMM amended; incorporation by reference; eff. 8-1-07...........38975
230.4 Existing text designated as (a); (b) added...................12285
230.24 (a) revised.................................................11161
232 Authority citation revised.....................................11161
232.1 (q)(1) and (2) revised.......................................11161
501 Revised........................................................65733
952.5 nded.........................................................53972
952.29 Amended.....................................................53972
952.30 Amended.....................................................53972
953.3 (e) amended..................................................53972
953.4 (a) introductory text, (2)(i), (b) and (c) amended...........53972
953.7 Amended......................................................53972
953.16 Amended.....................................................53972
958 Removed........................................................54199
964.3 (a) through (d) amended......................................53972
964.20 Amended.....................................................53972
Chapter III
3001.5 (s) added....................................................2472
3001.57 (b) revised................................................66677
3001.69 Revised....................................................66677
3001.69a Removed...................................................66678
3001.69b Removed...................................................66678
3001.69c Removed...................................................66678
3001.161 (a) designation and (b) removed...........................66678
3001.163 (b), (d) and (e) revised..................................66678
3001.171 (a) designation and (b) removed...........................66679
3001.173 (b), (d) and (e) revised..................................66679
3001.174 Revised...................................................66679
3001.181 (a) designation and (b) removed...........................66679

[[Page 507]]

                                  2007

39 CFR
                                                                   72 FR
                                                                    Page
Chapter I
20 IMM amended; incorporation by reference....16605, 16616, 37455, 61523
111 DMM amended; incorporation by reference..................469, 15371,
18388, 26543, 31726, 35177, 54360, 55057, 56901, 57489, 61525
    DMM amended; incorporation by reference; eff. 7-15-07..........29261
    Regulation at 71 FR 38975 eff. date delayed....................35177
121 Added..........................................................72228
122 Added..........................................................72228
230.1 (d) revised..................................................39011
232 Authority citation revised.....................................11288
232.1 (q)(1) revised...............................................11288
    (l) revised....................................................12565
    (h)(1) revised.................................................49195
233.1 (b) introductory text and (1) revised........................39011
233.7 (a) revised..................................................39012
273.2 (c) revised..................................................39012
447.21 (g) and note revised........................................49195
501.16 Revised; eff. 7-16-07.......................................33163
601 Revised........................................................58252
955.13 Revised.....................................................35662
Chapter III
Chapter III Heading revised........................................33165
3000 Authority citation revised....................................33165
3000.735-101 Amended...............................................33165
3001 Authority citation revised.............................33165, 63691
3001.3 Amended.....................................................33165
3001.5 (c) amended.................................................33165
    (r) and (s) revised; (t) and (u) added.........................63691
    Regulation at 72 FR 63691 eff. date corrected..................64155
3001.9 (a) amended.................................................33165
3001.17 (b)(1) and (2) amended.....................................33165
3001.31 (k)(3)(i)(i) amended.......................................33165
3001.110 Amended...................................................33165
3001.114 Amended...................................................33165
3001.116 Amended...................................................33165
3002 Authority citation revised....................................33165
3002.1 Amended.....................................................33165
3002.3 (a) amended; redesignated as 3002.10; new 3002.3 
        redesignated from 3002.8 and suspended.....................33165
3002.4 Redesignated as 3002.11.....................................33165
3002.5 Redesignated as 3002.12.....................................33165
3002.6 Redesignated as 3002.13.....................................33165
3002.7 designated as 3002.14.......................................33165
3002.8 Redesignated as 3002.3 and suspended........................33165
3002.9 Removed.....................................................33165
3002.10 Redesignated from 3002.3...................................33165
3002.11 Redesignated from 3002.4...................................33165
3002.12 Redesignated from 3002.5...................................33165
3002.13 Redesignated from 3002.6...................................33165
3002.14 Redesignated from 3002.7...................................33165
3002.15 Added......................................................33165
3002.16 Added......................................................33165
3002 Appendix A amended............................................33165
3003.2 (a) amended.................................................33165
3003.7 Amended.....................................................33165
3004 Authority citation revised....................................33165
3010 Added.........................................................63691
    Regulation at 72 FR 63691 eff. date corrected..................64155
3015 Added.........................................................63697
    Regulation at 72 FR 63697 eff. date corrected..................64155
3020 Added.........................................................63698
    Regulation at 72 FR 63698 eff. date corrected..................64155

                                  2008

39 CFR
                                                                   73 FR
                                                                    Page
Chapter I
1--11 (Subchapter A) Revised.......................................78983
20 IMM amended; incorporation by reference..............2156, 6032, 9191
    Authority citation revised......................................6032
    Technical correction...........................................12274
111 Authority citation revised......................................6033
    DMM amended; incorporation by reference..................6033, 9198,
9199, 20533, 25513, 28041, 31943, 48300, 49340, 49348, 54712, 56501, 
61355, 72616
    DMM amended; incorporation by reference; eff. 9-11-08..........32238
111.3 (f) table amended............................................25509
111.4 Amended......................................................25509
912.4 Amended......................................................75339
912.5 (c) added....................................................75339
912.9 (b) and (c) amended..........................................75340
956 Removed.................................................12893, 13132

[[Page 508]]

Chapter III
3020.1--3020.14 (Subpart A) Appendix A amended......41268, 43048, 43346, 
                                                     45850, 47834, 51715
    Regulation at 73 FR 43048 eff. date corrected..................43489
    Appendix A revised.....................................55424, 59517,
62185, 62887, 67351, 67395, 67709, 68347, 71559, 71937, 77514, 78187, 
78190, 79399
3020.91 Correctly revised...........................................6427
3020.93 (b) correctly revised.......................................6427
3060 Added.........................................................79261

                                  2009

39 CFR
                                                                   74 FR
                                                                    Page
Chapter I
20 Authority citation revised........................45761, 52145, 54485
20 IMM amended; incorporation by reference.....8466, 8474, 26960, 45761, 
                                              52145, 54485, 55139, 57890
    IMM corrected; incorporation by reference........11848, 14933, 18467
20.1 Revised........................................................8465
20.2 Revised........................................................8465
111 Authority citation revised.....................................45764
111 DMM amended; incorporation by reference..................2867, 8011,
15377, 15382, 16125, 22836, 34251, 36117, 45326, 45764, 52147, 55141, 
57900, 66242, 68539
    DMM amended; incorporation by reference; eff. 9-8-09...........17401
233.3 (c)(3) and (4) revised.......................................18297
955 Revised........................................................20592
958 Added..........................................................18631
Chapter III
3001 Authority citation revised....................................23114
3001.42 Removed....................................................57256
3001.51--3001.60 (Subpart B) Removed...............................23114
3001.61--3001.69 (Subpart C) Removed...............................23114
3001.81--3001.87 (Subpart E) Removed...............................16744
3001.91--3001.92 (Subpart F) Removed...............................23115
3001.101--3001.103 (Subpart G) Removed.............................23115
3001.102 Removed...................................................20850
3001.103 Removed...................................................20850
3001.161--3001.166 (Subpart I) Removed.............................23115
3001.171--3001.176 (Subpart J) Removed.............................23115
3001.181--3001.182 (Subpart K) Removed.............................23115
3001.190--3001.198 (Subpart L) Removed.............................23115
3004 Revised.......................................................57256
3007 Added; eff. 7-29-09...........................................30943
3010 Heading revised...............................................49327
3010.21 Revised....................................................49327
3010.22 Revised....................................................49327
3020 Policy statement................................................219
3020.1--3020.14 (Subpart A) Appendix A revised.................625, 861,
6119, 6231, 7651, 11295, 11298, 15386, 26792, 31378, 36942, 37554, 
37937, 38100, 38534, 38922, 40709, 40715, 41049, 41054, 41338, 41635, 
41793, 44759, 45329, 46018, 49824, 50710, 51080, 51468, 56545, 61533, 
62495, 65444, 66244, 67818
3030 Added.........................................................16744
3030.11 Revised....................................................54755
3031 Added.........................................................16746
3050 Added.........................................................20850

                                  2010

39 CFR
                                                                   75 FR
                                                                    Page
Chapter I
20 Authority citation revised......................................34017
20 IMM amended; incorporation by reference..................69336, 75151
20 IMM amended; incorporation by reference; eff. 8-2-10............35302
    Regulation at 75 FR 35302 eff. date corrected..................37308
20.1 Revised.......................................................34017
20.2 Revised.......................................................34017
111 DMM amended; incorporation by reference...1541, 12984, 14076, 17862, 
         29667, 29893, 30300, 41990, 47719, 51669, 51948, 54289, 68434, 
                                       70129, 70136, 71548, 72687, 76283
    DMM amended; incorporation by reference; eff. 7-6-10...........31288
    Nomenclature changes............................................9343
    DMM amended; incorporation by reference; eff. 8-2-10...........36537
111.3 (f) table amended............................................31702
111.4 Amended......................................................31702
121.1 Heading revised...............................................9344
121.2 (b)(3) and (4) revised........................................9344
121.3 (a)(3), (b)(4) and (5) revised................................9344

[[Page 509]]

121.4 (a)(2), (3), (6), (b)(3) and (4) revised......................9344
121 Appendix A amended..............................................9344
232 Authority citation revised.....................................78916
232.1 (p)(2) revised.........................................4273, 28205
    (f), (m), (o)(3) and (p)(2) revised............................78916
310.5 (b) revised..................................................12123
310.6 Revised......................................................12123
320.3 (a) revised; (b) amended.....................................12123
501.1