[Title 39 CFR ]
[Code of Federal Regulations (annual edition) - July 1, 2023 Edition]
[From the U.S. Government Publishing Office]



[[Page i]]

          

          Title 39

Postal Service

                         Revised as of July 1, 2023

          Containing a codification of documents of general 
          applicability and future effect

          As of July 1, 2023
                    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                361
  Finding Aids:
      Table of CFR Titles and Chapters........................     549
      Alphabetical List of Agencies Appearing in the CFR......     569
      List of CFR Sections Affected...........................     579

[[Page iv]]





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

                     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 
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    To determine whether a Code volume has been amended since its 
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Sections Affected (LSA),'' which is issued monthly, and the ``Cumulative 
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EFFECTIVE AND EXPIRATION DATES

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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 
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PAST PROVISIONS OF THE CODE

    Provisions of the Code that are no longer in force and effect as of 
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``[RESERVED]'' TERMINOLOGY

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Federal Regulations. An agency may add regulatory information at a 
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INCORPORATION BY REFERENCE

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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 
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    (c) The incorporating document is drafted and submitted for 
publication in accordance with 1 CFR part 51.
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    An index to the text of ``Title 3--The President'' is carried within 
that volume.

[[Page vii]]

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the revision dates of the 50 CFR titles.

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    Oliver A. Potts,
    Director,
    Office of the Federal Register
    July 1, 2023







[[Page ix]]



                               THIS TITLE

    Title 39--Postal Service is composed of one volume. This volume is 
comprised of Chapter I--United States Postal Service and Chapter III--
Postal Regulatory Commission. The contents of this volume represent all 
current regulations codified under this title of the CFR as of July 1, 
2023.

    For Chapter I--United States Postal Service, the ``International 
Mail Manual'' and the ``Mailing Standards of the United States Postal 
Service, Domestic Mail Manual'' are incorporated by reference.

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

[[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]......................          15
5               Committees [Article V]......................          16
6               Meetings [Article VI].......................          16
7               Public observation [Article VII]............          19
8-9

[Reserved]

10              Rules of conduct for Postal Service 
                    Governors [Article X]...................          23
11              Advisory boards [Article XI]................          24
                    SUBCHAPTER B--INTERNATIONAL MAIL
20              International Postal Service................          25
           SUBCHAPTER C--POST OFFICE SERVICES [DOMESTIC MAIL]
                  GENERAL INFORMATION ON POSTAL SERVICE
111             General information on Postal Service.......          27
121             Service standards for market-dominant mail 
                    products................................          29
122             Service standards for market-dominant 
                    special services products...............          36
              SUBCHAPTER D--ORGANIZATION AND ADMINISTRATION
211             Application of regulations..................          38
221             General organization........................          40
222             Delegations of authority....................          42
223             Relationships and communication channels....          43
                     INSPECTION SERVICE REQUIREMENTS
230             Office of Inspector General.................          44

[[Page 4]]

231             Protection of post offices..................          52
232             Conduct on postal property..................          52
233             Inspection Service authority................          56
235             Defense Department liaison..................          88
               POST OFFICE ORGANIZATION AND ADMINISTRATION
241             Establishment classification, and 
                    discontinuance..........................          89
242             Change of site..............................         100
243             Conduct of offices..........................         100
                      GENERAL POSTAL ADMINISTRATION
254             Postal Service standards for facility 
                    accessibility pursuant to the 
                    Architectural Barriers Act..............         101
255             Access of persons with disabilities to 
                    Postal Service programs, activities, 
                    facilities, and electronic and 
                    information technology..................         102
259             Services performed for other agencies.......         107
                         RECORDS AND INFORMATION
261             Records and information management..........         108
262             Records and information management 
                    definitions.............................         110
263             Records retention and disposition...........         113
264             Vital records...............................         113
265             Production or disclosure of material or 
                    information.............................         114
266             Privacy of information......................         142
267             Protection of information...................         154
268             Privacy of information--employee rules of 
                    conduct.................................         156
273             Administration of Program Fraud Civil 
                    Remedies Act............................         157
                DAMAGE TO OR DESTRUCTION OF FIRM MAILINGS
281             Firm mailings damaged or destroyed through 
                    transportation accidents or catastrophes         163
        SUBCHAPTER E--RESTRICTIONS ON PRIVATE CARRIAGE OF LETTERS
310             Enforcement of the private express statutes.         164
320             Suspension of the private express statutes..         168
                         SUBCHAPTER F--PERSONNEL
447             Rules of conduct for postal employees.......         175
491             Garnishment of salaries of employees of the 
                    Postal Service and the Postal Rate 
                    Commission..............................         179

[[Page 5]]

492             Administrative wage garnishment from non-
                    postal sources..........................         182
                     SUBCHAPTER G--POSTAGE PROGRAMS
501             Authorization to manufacture and distribute 
                    postage evidencing systems..............         184
551             Semipostal stamp program....................         203
     SUBCHAPTER H--PROCUREMENT SYSTEM FOR THE U.S. POSTAL SERVICE: 
             INTELLECTUAL PROPERTY RIGHTS OTHER THAN PATENTS
601             Purchasing of property and services.........         208
602             Intellectual property rights other than 
                    patents.................................         218
                         SUBCHAPTER I [RESERVED]
SUBCHAPTER J--POSTAL SERVICE DEBT OBLIGATIONS; DISBURSEMENT POSTAL MONEY 
                                 ORDERS
760             Applicability of Treasury Department 
                    regulations.............................         220
761             Book-entry procedures.......................         220
762             Disbursement postal money orders............         223
                 SUBCHAPTER K--ENVIRONMENTAL REGULATIONS
775             National Environmental Policy Act procedures         228
776             Floodplain and wetland procedures...........         238
                    SUBCHAPTER L--SPECIAL REGULATIONS
777             Relocation assistance and real property 
                    acquisition policies....................         243
778             Intergovernmental review of Postal Service 
                    facility actions........................         262
                         SUBCHAPTER M [RESERVED]
                        SUBCHAPTER N--PROCEDURES
         RULES OF PROCEDURE BEFORE THE OFFICE OF GENERAL COUNSEL
912             Procedures to adjudicate claims for personal 
                    injury or property damage arising out of 
                    the operation of the U.S. Postal Service         266
913             Procedures for the issuance of 
                    administrative subpoenas under 39 U.S.C. 
                    3016....................................         269

[[Page 6]]

916

[Reserved]

        RULES OF PROCEDURE BEFORE THE MAIL PROCESSING DEPARTMENT
927             Rules of procedure relating to fines, 
                    deductions, and damages.................         271
931             Rules of procedure governing the compromise 
                    of obligations..........................         273
         RULES OF PROCEDURE BEFORE THE POSTAL INSPECTION SERVICE
946             Rules of procedure relating to the 
                    disposition of stolen mail matter and 
                    property acquired by the Postal 
                    Inspection Service for use as evidence..         273
             RULES OF PROCEDURE BEFORE THE JUDICIAL OFFICER
951             Procedure governing the eligibility of 
                    persons to practice before the Postal 
                    Service.................................         275
952             Rules of practice in proceedings relative to 
                    false representation and lottery orders.         277
953             Rules of practice in proceedings relative to 
                    mailability.............................         288
954             Rules of practice in proceedings relative to 
                    the denial, suspension, or revocation of 
                    periodicals mail privileges.............         291
955             Rules of practice before the Postal Service 
                    Board of Contract Appeals...............         297
956

[Reserved]

957             Rules of practice in proceedings relative to 
                    debarment from contracting..............         309
958             Rules of practice in proceedings relative to 
                    civil penalties, clean-up costs and 
                    damages for violation of hazardous 
                    material regulations....................         312
959             Rules of practice in proceedings relative to 
                    the private express statutes............         318
960             Rules relative to implementation of the 
                    Equal Access to Justice Act in Postal 
                    Service proceedings.....................         326
961             Rules of practice in proceedings under 
                    section 5 of the Debt Collection Act....         332
962             Rules of practice in proceedings relative to 
                    the Program Fraud Civil Remedies Act....         336
963             Rules of practice in proceedings relative to 
                    violations of the pandering 
                    advertisements statute, 39 U.S.C. 3008..         344
964             Rules of practice governing disposition of 
                    mail withheld from delivery pursuant to 
                    39 U.S.C. 3003, 3004....................         348

[[Page 7]]

965             Rules of practice in proceedings relative to 
                    mail disputes...........................         353
966             Rules of practice in proceedings relative to 
                    administrative offsets initiated against 
                    former employees of the Postal Service..         355
967-999

[Reserved]

[[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, led by the Secretary of the Board, 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.

[86 FR 10012, Feb. 18, 2021]



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 five (5) business days before the meeting. The members 
of the Board may waive the five (5) business 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.

[86 FR 10012, Feb. 18, 2021]



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, 504, 1003, 2005, 2011, 2802-2804, 3013, 3622, 3632, 3642, 3652, 
3654, 3691, 3703; 5 U.S.C. 552b(g), (j); 5 U.S.C. App.; Pub. L. 107-67, 
115 Stat. 514 (2001).

[[Page 11]]


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



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 meetings of the Board and its Committees. 
Compensation is provided for not more than 42 days of meetings per year.

[86 FR 10012, Feb. 18, 2021]



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) Approval of the annual Postal Service Integrated Financial Plan, 
which shall include the Financing Plan, the Operating Plan, and the 
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) 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.
    (e) 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.
    (f) 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).
    (g) 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, pursuant to 39 U.S.C. 
3661.
    (h) 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.
    (i) Compensation and benefits of officers the Postal Service whose 
positions are included in Level II of the Postal Career Executive 
Service.
    (j) 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.
    (k) 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.
    (l) Approval and transmittal to the President and the Congress of 
the Annual Report to Congress, which shall include the annual report of 
the Postmaster General under 39 U.S.C. 2402, the comprehensive statement 
of the Postal Service under 39 U.S.C. 2401(e), the Postal Service's 
annual performance plan under 39 U.S.C. 2803, and the Postal Service's 
report on program performance under 39 U.S.C. 2804.

[[Page 12]]

    (m) Approval and transmittal to the President and the Congress of 
the Postal Service's strategic plan, pursuant to 39 U.S.C. 2802.
    (n) All other matters that the Board may consider appropriate to 
reserve for its decision by resolution adopted by the Board, pursuant to 
Sec.  3.5.

[73 FR 78983, Dec. 24, 2008, as amended at 86 FR 10012, Feb. 18, 2021; 
86 FR 24713, May 10, 2021]



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 and to seek the Postal Regulatory 
Commission's review of the adjusted rates or fees for such 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 (in conjunction with Commissioners of 
the Postal Regulatory Commission) 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) Compensation and benefits, term of service, and appointment/
removal of the Secretary of the Board and other necessary staff, which 
shall be considered annually in closed session.
    (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 any special postage stamp under 39 
U.S.C. 414 and any semi-postal stamp under 39 U.S.C. 416 or any act of 
Congress.
    (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).
    (o) Consideration and potential adjustment of the funding requested 
in the Postal Regulatory Commission's budget for the succeeding fiscal 
year as required by 39 U.S.C. 504(d).
    (p) Approval of any program established under 39 U.S.C. 3703 to 
enter into agreements with agencies of state, local or tribal 
governments to provide property or non-postal services to the public on 
behalf of such agencies for non-commercial purposes.

[73 FR 78983, Dec. 24, 2008, as amended at 86 FR 10012, Feb. 18, 2021; 
87 FR 68908, Nov. 17, 2022]



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.

[[Page 13]]



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 quarterly 
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;
    (3) Balance sheet information;
    (4) Statement of cash flow; and
    (5) Service quality measurements.
    (b) These statements shall include, where applicable, comparable 
figures for the previous year and the current year's plan.
    (c) At the reasonable request of the Board, Postal management shall 
furnish to the Board such other information as the Board deems 
necessary.

[73 FR 78983, Dec. 24, 2008, as amended at 86 FR 10013, Feb. 18, 2021; 
86 FR 24713, May 10, 2021]



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) Five-year and ten-year plans, annual operating and investment 
plans, and significant departures from estimates upon which the plans 
were based;
    (2) Productivity measurements (reflecting workload and resource 
utilization);
    (3) The need for rate adjustments and the outcome of significant 
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 
annually. 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) Postal management shall annually provide the Board with a 
summary of the Annual Compliance Report filed with the Postal Regulatory 
Commission, which includes data on product costs.
    (e) 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 (e), 
``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.
    (f) At the reasonable request of the Board, Postal management shall 
furnish to the Board such other information as the Board deems 
necessary.

[73 FR 78983, Dec. 24, 2008, as amended at 86 FR 10013, Feb. 18, 2021; 
86 FR 24713, May 10, 2021]



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

[[Page 14]]

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.
    (g) Other matters having important policy implications.
    (h) At the reasonable request of the Board, Postal management shall 
furnish to the Board such other information as the Board deems 
necessary.

[73 FR 78983, Dec. 24, 2008, as amended at 86 FR 10013, Feb. 18, 2021]



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

[[Page 15]]

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 annual 
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 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.

[77 FR 17333, Mar. 26, 2012, as amended at 86 FR 10013, Feb. 18, 2021]



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 annual 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.

[86 FR 10013, Feb. 18, 2021]



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.

[[Page 16]]



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 any such notification the reasons for such 
removal or transfer. The Postmaster General's appointment of the 
Judicial Officer and any other judges in the Judicial Officer Department 
must be ratified by resolution of the Governors.

[86 FR 10013, Feb. 18, 2021]



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. With the concurrence of the Board, the 
Chairman may designate the number and general qualifications of such 
assistant secretaries or other staff as may be necessary to perform any 
of the duties of the Secretary.

[86 FR 10013, Feb. 18, 2021]



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.
6.5 Minutes of meetings.
6.6 Quorum and voting.
6.7 Notation voting.

[[Page 17]]

6.8 Delegation of Authority for Continuity of Operations.

    Authority: 39 U.S.C. 202, 205, 401(2), (10), 504, 1003, 3622, 3632, 
3703; 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 in November of each calendar year is 
designated as the annual meeting. Consistent with the provisions 
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.

[86 FR 10014, Feb. 18, 2021]



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 
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.

    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, video 
conference, 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 decision making authority.

[86 FR 10014, Feb. 18, 2021]



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

[[Page 18]]

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.

    Except for matters considered through the notation voting process 
described in Sec.  6.7, the Board acts by resolution upon a vote of 
those members who attend a meeting in accordance with Sec.  6.4. No 
proxies are allowed in any vote of the members of the Board. As provided 
by 39 U.S.C. 205(c), any six (6) members constitute a quorum for the 
transaction of business by the Board, and a resolution requires a 
favorable vote of a majority of those members who are present, except as 
follows:
    (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.
    (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.
    (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 the appointment of the Inspector General, 39 U.S.C. 202(e) 
requires a favorable vote of a majority of the Governors then in office 
and of a majority of the Commissioners of the Postal Regulatory 
Commission then in office.
    (h) In removing the Inspector General for cause, 39 U.S.C. 202(e) 
requires the written concurrence of at least 7 Governors and 3 
Commissioners of the Postal Regulatory Commission.
    (i) In adjusting the funding requested in the Postal Regulatory 
Commission's budget for the succeeding fiscal year, 39 U.S.C. 504(d) 
requires a unanimous written decision of the Governors then holding 
office, issued no later than 30 days after receiving the budget.
    (j) In approving a program established under 39 U.S.C. 3703 to enter 
into agreements with agencies of state, local or tribal governments to 
provide property or non-postal services to the public on such agencies' 
behalf, 39 U.S.C. 3703(c) requires a recorded and publicly available 
vote of a majority of the Governors then holding office.

[73 FR 78983, Dec. 24, 2008, as amended at 77 FR 17334, Mar. 26, 2012; 
86 FR 10014, Feb. 18, 2021; 87 FR 68908, Nov. 17, 2022]



Sec.  6.7  Notation voting.

    (a) General. Notation voting consists of the circulation of physical 
or electronic 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, or 
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

[[Page 19]]

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, as amended at 86 FR 10014, Feb. 18, 2021]



Sec.  6.8  Delegation of Authority for Continuity of Operations.

    When, by reason of death, incapacity, or disruption of 
transportation and communications, a quorum of the Board of Governors 
cannot reasonably be assembled, or when vacancies on the Board make it 
impossible for a quorum to assemble, the remaining members of the Board 
who are able to assemble are constituted a Temporary Emergency Committee 
of the Board of Governors. The Chairman or Vice Chairman of the Board, 
or in their absence any available member of the Board, may convene a 
meeting of such Temporary Emergency Committee for the consideration of 
such business as may be needed to provide for continuity of operations 
for the duration of the emergency, or for the duration of the period of 
time in which vacancies on the Board prevent a quorum from being 
assembled. The powers reserved to the Board under Sec.  3.3 of these 
bylaws necessary to provide for continuity of operations are delegated 
to the Committee, which may exercise such powers until such time as 
sufficient members of the Board are again available to enable the Board 
to convene.

[86 FR 10014, Feb. 18, 2021]



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]



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

[[Page 20]]

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 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

[[Page 21]]

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.
    (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.

[[Page 22]]

    (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) No later than the beginning of every meeting or portion of a 
meeting closed under Sec. 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.

[73 FR 78983, Dec. 24, 2008, as amended at 86 FR 10014, Feb. 18, 2021]



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 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

[[Page 23]]

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 Government 
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.

[86 FR 10014, Feb. 18, 2021]



Sec.  10.2  Advisory service.

    (a) The Associate General Counsel and Chief Ethics and Compliance 
Officer 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 
Associate General Counsel or a designated assistant.
    (c) If the Associate 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 General Counsel, the Chairman of the Board of 
Governors, or the Vice Chairman, as appropriate.

[86 FR 10014, Feb. 18, 2021]



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--(1) Upon nomination. At 
the time of their nomination, Governors complete a financial disclosure 
report which, under the practice of the Senate Homeland Security and 
Governmental Affairs Committee, is kept confidential.
    (2) After confirmation. Because the Director of the Office of 
Government Ethics has concluded 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 
Associate General Counsel on or before 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 Associate General Counsel may, for good cause shown, grant 
to a Governor one or more extensions totaling not more than 90 days.

[[Page 24]]

    (c) Information required to be reported. Each report shall be a full 
and complete statement, on the form prescribed by the Associate General 
Counsel and the Office of Government Ethics and in accordance with 
instructions issued by him or her.
    (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 Associate General Counsel 
who shall either approve the report, or make an initial determination 
that a conflict or appearance thereof exists. If the Associate General 
Counsel determines initially that a conflict or the appearance of a 
conflict exists, he or she shall inform the Governor of his or her 
determination.
    (2) If the Associate 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 Associate 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 Associate 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.

[86 FR 24713, May 10, 2021]



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 25]]



                     SUBCHAPTER B_INTERNATIONAL MAIL





PART 20_INTERNATIONAL POSTAL SERVICE--Table of Contents



Sec.
20.1 Incorporation by reference; Mailing Standards of the United States 
          Postal Service, International Mail Manual.
20.2 Effective date of the International Mail Manual.
20.3 [Reserved]
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  Incorporation by reference; Mailing Standards of the 
United States Postal Service, International Mail Manual.

    (a) Mailing Standards of the United States Postal Service, 
International Mail Manual (IMM) is incorporated by reference into this 
part with the approval of the Director of the Federal Register under 5 
U.S.C. 552(a) and 1 CFR part 51.
    (1) Subscriptions. Subscriptions to the IMM can be purchased by the 
public from the Superintendent of Documents, Washington, DC 20402-9375.
    (2) Inspection--USPS. (i) Copies of the IMM, 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. For access contact 202-268-
2906.
    (ii) 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 IMM is available for examination on the 
internet at https://pe.usps.gov.
    (3) Inspection--NARA. For information on the availability of this 
material at NARA, contact the Office of the Federal Register--email: 
[email protected]; website: www.archives.gov/ federal-register/cfr/ 
ibr-locations.html.
    (b) The Director of the Federal Register approved the IMM, updated 
July 10, 2022, for incorporation by reference as of October 19, 2022.

[87 FR 63424, Oct. 19, 2022]



Sec.  20.2  Effective date of the International Mail Manual.

    The provisions of the International Mail Manual issued July 10, 
2022, (incorporated by reference, see Sec.  20.1) are applicable with 
respect to the international mail services of the Postal Service

[87 FR 63425, Oct. 19, 2022]



Sec.  20.3  [Reserved]



Sec.  20.4  Amendments to the International Mail Manual.

    (a) The current issue of the IMM is incorporated by reference, see 
Sec.  20.1.
    (b) New issues of the International Mail Manual will be incorporated 
by reference into this part and will be available at https://
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 https://usps.com/ 
cpim/ftp/bulletin/pb.htm. Successive issues of the IMM are listed in 
Table 1 to this section.

            Table 1 to Sec.   20.4--International Mail Manual
------------------------------------------------------------------------
      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.

[[Page 26]]

 
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.
IMM..................................  June 24, 2012.
IMM..................................  January 26, 2015.
IMM..................................  July 11, 2016.
IMM..................................  January 22, 2017.
IMM..................................  March 5, 2018.
IMM..................................  March 4, 2019.
IMM..................................  July 1, 2020.
IMM..................................  July 10, 2022.
------------------------------------------------------------------------


[85 FR 61608, Sept. 30, 2020, as amended at 87 FR 63425, Oct. 19, 2022]



Sec.  20.5  [Reserved]

[[Page 27]]



            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 Incorporation by reference; Mailing Standards of the United States 
          Postal Service, Domestic Mail Manual.
111.2 [Reserved]
111.3 Amendments to the Mailing Standards of the United States Postal 
          Service, Domestic Mail Manual.
111.4-111.5 [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, 401-404, 414, 416, 3001-3018, 3201-3220, 3401-3406, 3621, 
3622, 3626, 3629, 3631-3633, 3641, 3681-3685, and 5001.

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



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

    (a) Mailing Standards of the United States Postal Service, Domestic 
Mail Manual (DMM) is incorporated by reference into this part with the 
approval of the Director of the Federal Register under 5 U.S.C. 552(a) 
and 1 CFR part 51.
    (1) Subscriptions. 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.
    (2) Inspection--USPS. (i) Copies of the DMM, 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. For access contact 202-268-
2906.
    (ii) 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 DMM is available for examination on the 
internet at https://pe.usps.gov.
    (3) Inspection--NARA. For information on the availability of this 
material at NARA, contact the Office of the Federal Register--email: 
[email protected]; website: www.archives.gov/ federal-register/cfr/ 
ibr-locations.html.
    (b) The Director of the Federal Register approved DMM, updated July 
10, 2022, for incorporation by reference as of October 19, 2022.

[85 FR 61609, Sept. 30, 2020, as amended at 87 FR 63425, Oct. 19, 2022]



Sec.  111.2  [Reserved]



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

    (a) A complete issue of the DMM is incorporated by reference 
annually (see Sec.  111.1). Except for interim or final regulations 
published as provided in paragraph (b) of this section, only 
notifications rather than complete text of changes made to the DMM are 
published in the Federal Register. These documents are published in the 
form of one summary transmittal letter for each issue of the DMM. A 
complete issue of the DMM incorporated by reference, which includes the 
text of all changes published to date, is filed with the Director, 
Office of the Federal Register. Subscribers to the DMM receive the 
latest issue of the DMM from the Government Publishing Office (see Sec.  
111.1 for subscription information).
    (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

[[Page 28]]

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.

              Table 1 to Sec.   111.3--Domestic Mail Manual
------------------------------------------------------------------------
                                                       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.
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.
DMM 300.........................  June 24, 2012.....  77 FR 45246.
DMM 300.........................  January 25, 2015..  80 FR 13492.
DMM 300.........................  July 11, 2016.....  81 FR 66822.
DMM.............................  January 22, 2017..  82 FR 28559.
DMM.............................  March 5, 2018.....  83 FR 17922.
DMM.............................  March 4, 2019.....  84 FR 24392.
DMM.............................  July 1, 2020......  85 FR 61609.
DMM.............................  July 10, 2022.....  87 FR 63425.
------------------------------------------------------------------------


[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.govinfo.gov.

[[Page 29]]



Sec. Sec.  111.4-111.5  [Reserved]



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



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

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

    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) A same day service standard is applied to USPS 
ConnectTM Local Mail pieces properly accepted at 
participating Destination Delivery Units before the day-zero Critical 
Entry Time (CET); a one day service standard is applied to USPS 
ConnectTM Local Mail pieces accepted via carrier pick-up or 
properly accepted at participating Destination Delivery Units after the 
day-zero CET.
    (b) A 1-day (overnight) service standard is applied to intra-
Sectional Center Facility (SCF) domestic Presort First-Class Mail pieces 
properly accepted at the SCF before the day-zero Critical Entry Time 
(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.
    (c) A 2-day service standard is applied to:
    (1) Intra-SCF single-piece domestic First-Class Mail properly 
accepted before the day-zero CET if:
    (i) The SCF is also the origin Processing & Distribution Center or 
Facility (P&DC/F), or
    (ii) the combined drive time between the origin P&DC/F, destination 
Area Distribution Center (ADC), and destination SCF is 3 hours or less;
    (2) inter-SCF domestic First-Class Mail pieces properly accepted 
before the day-zero CET if the combined drive time between the origin 
P&DC/F, destination ADC, and destination SCF is 3 hours or less;
    (3) Presort First-Class Mail properly accepted before the day-zero 
CET with an origin and destination that are separately in Puerto Rico 
and the U.S. Virgin Islands; and
    (4) intra-SCF Presort First-Class Mail properly accepted before the 
day-zero CET with an origin or destination that 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.
    (d) A 3-day service standard is applied to domestic First-Class Mail 
pieces properly accepted before the day-zero CET, if the 1-day and 2-day 
service standards do not apply, the combined drive time between the 
origin P&DC/F, destination ADC, and destination SCF is 20 hours or less, 
and both the origin and the destination are within the contiguous 48 
states.
    (e) 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 combined drive time between the origin P&DC/F, destination 
ADC, and destination SCF is 41 hours or less, and 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.
    (f) A 5-day service standard is applied to all remaining domestic 
First-Class Mail pieces properly accepted before the day-zero CET.
    (g) The service standard for Outbound Single-Piece First-Class Mail

[[Page 30]]

International\TM\; 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.
    (h) The service standard for Inbound Letter Post 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.

[86 FR 43952, Aug. 11, 2021, as amended at 87 FR 73469, Nov. 30, 2022]



Sec.  121.2  Periodicals.

    (a) End-to-End. (1) A 3- to 6-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.
    (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 standard set forth in paragraph (a)(1) 
does 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 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

[[Page 31]]

designated DSCF, if 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.
    (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, as amended at 79 FR 4080, Jan. 24, 2014; 79 
FR 44701, Aug. 1, 2014; 86 FR 43952, Aug. 11, 2021]



Sec.  121.3  USPS Marketing Mail.

    (a) End-to-End. (1) The service standard for Sectional Center 
Facility (SCF) turnaround USPS Marketing Mail[supreg] pieces accepted at 
origin before the day-zero Critical Entry Time is 3 days when the origin 
Processing & Distribution Center/Facility (origin P&DC/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 USPS Marketing Mail pieces accepted at origin before the day-
zero Critical Entry Time is 4 days when the origin P&DC/F and the ADC 
are the same

[[Page 32]]

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) 
USPS Marketing 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 USPS Marketing 
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 USPS Marketing 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) USPS Marketing 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) USPS Marketing 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 when accepted on Sunday through Thursday and a 4-day service 
standard when accepted on Friday or Saturday, 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.
    (3) USPS Marketing Mail pieces that qualify for a DSCF rate and that 
are accepted before the day zero Critical Entry Time at the SCF in the 
territory of Puerto Rico and destined to the territory of the U.S. 
Virgin Islands, or are destined to American Samoa, have a 4-day service 
standard when accepted on Sunday through Thursday and a 5-day service 
standard when accepted on Friday or Saturday.
    (4) USPS Marketing 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) USPS Marketing Mail pieces that qualify for a 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.

[86 FR 43952, Aug. 11, 2021]



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

[[Page 33]]

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 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

[[Page 34]]

the market-dominant mail products referenced in Sec. Sec.  121.1 through 
121.4 (for purposes of this part, references to the contiguous states 
also include the District of Columbia):
    Table 1. End-to-end service standard day ranges for mail originating 
and destinating within the contiguous 48 states and the District of 
Columbia.

                    Table 1--Contiguous United States
------------------------------------------------------------------------
                                                              End-to-end
                         Mail class                             range
                                                                (days)
------------------------------------------------------------------------
First-Class Mail *.........................................          1-5
Periodicals................................................          3-9
USPS Marketing Mail........................................         3-10
Package Services...........................................          2-8
------------------------------------------------------------------------
* Excluding USPS Connect\TM\ Local Mail.

    Table 2. End-to-end service standard day ranges for mail originating 
and/or destinating in non-contiguous states and territories.

[[Page 35]]



                                                     Table 2--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 (PR), American
                                                                                                                          Samoa (AS), Northern Mariana
                   Mail class                                                                                            Islands (MP), and U.S. Virgin
                                                              Hawaii,                            Hawaii,                         Islands (USVI)
                                                   Alaska   Guam, MP, &  PR & USVI    Alaska   Guam, MP, &  PR & USVI ----------------------------------
                                                                 AS                                 AS                              Hawaii,
                                                                                                                         Alaska   Guam, MP, &  PR & USVI
                                                                                                                                       AS
--------------------------------------------------------------------------------------------------------------------------------------------------------
First-Class Mail *.............................        1-4          1-4        1-2        4-5          4-5        4-5          5            5          5
Periodicals....................................        3-5          3-5          3      13-19        12-22      11-16      21-25        21-26      23-26
USPS Marketing 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 USPS ConnectTM Local Mail.
** Excluding bypass mail.


[[Page 36]]


[87 FR 73469, Nov. 30, 2022]



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-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 [supreg] 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.

[[Page 37]]

 
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 38]]



              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, 205, 401-404, 406, 407, 410, 411, 
413, 414, 416, 1001-1011, 1201-1209, 2008-2010, 2201, 2601-2605, 2901-
2902, 3001-3018, 3201-3220, 3401-3406, 3621-3629, 3631-3633, 3641, 3654, 
3681-3685, 3691, 5001-5007, 5401-5403, 5601-5605; 39 U.S.C. note.

    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 the following, 
any of which may, but are not required to, be published in the Federal 
Register and the Code of Federal Regulations:
    (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; those portions of 
Chapter 2 of the former Postal Service Manual and chapter 7 of the 
former Postal Manual retained in force; and Publication 52, Hazardous, 
Restricted, and Perishable Mail; and
    (3) Headquarters Circulars, Management Instructions, Regional 
Instructions, Handbooks, Memoranda of Policy, Publications, delegations 
of authority, and other regulatory issuances and directives of the 
Postal Service or the former Post Office Department, to the extent that 
such documents state binding rules of future effect beyond those stated 
in other regulations of the Postal Service then in effect.
    (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; 86 FR 53221, Sept. 27, 2021]



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

[[Page 39]]

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 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

[[Page 40]]

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.
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

[[Page 41]]

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.
    (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.

[[Page 42]]



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.
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.

[[Page 43]]



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.
    (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

[[Page 44]]

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.



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 Demands for records or testimony.

Subpart C_Rules of Procedure Relating to the Disposition of Stolen Mail 
Matter and Property Acquired by the Office Of Inspector General for Use 
                               as Evidence

230.30 Scope.
230.31 Definitions.
230.32 Disposition of property of apparent owners where property is 
          valued over $200.
230.33 Disposition of property of apparent owners where property is 
          valued at $200 or less.
230.34 Disposition of property of unknown owners where property is 
          valued over $200.
230.35 Disposition of property of unknown owners where property is 
          valued at $200 or less.
230.36 Contraband and property subject to court order.
230.37 Determination of type of property.
230.38 Disposition of abandoned property; additional period for filing 
          claims.
230.39 Submission of claims.
230.40 Determination of claims.
230.41 Reconsideration of claims.
230.42 Disposition of property declared abandoned where title vests in 
          the government.

    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.
    (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

[[Page 45]]

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 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.

[[Page 46]]

    (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: 86 FR 14539, Mar. 17, 2021, unless otherwise noted.



Sec.  230.10  Demands for records or testimony.

    (a) Scope and applicability. (1) This section sets forth the Touhy 
regulations of the U.S. Postal Service Office of Inspector General. It 
applies to situations where an employee of the Office of Inspector 
General has been summoned, subpoenaed, or given a court order to produce 
documents or provide testimony in connection with any Federal, State, 
local court, administrative, or legislative proceeding.
    (2) This section does not apply to:
    (i) Proceedings where the United States, the Postal Service, or any 
other Federal agency is named as a party;
    (ii) Congressional requests or subpoenas for testimony or documents; 
or
    (iii) Appearances by employees in their private capacities in 
proceedings unrelated to their Postal Service employment.

[[Page 47]]

    (3) This section should be read together with the Freedom of 
Information Act (FOIA), 5 U.S.C. 552a, which provides additional 
information about access to records. The provisions of this section do 
not affect rights and procedures governing public access to official 
documents pursuant to the FOIA.
    (4) This section does not create any right or benefit, substantive 
or procedural, enforceable by any party against the Office of Inspector 
General or the U.S. Postal Service.
    (b) General prohibition. (1) No employee 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 
case or matter, unless authorized to do so by an authorizing official.
    (2) Without written authorization from the authorizing official, the 
employee must respectfully decline to produce 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.
    (3) If an attempt is made to compel production of documents 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.
    (c) Procedure to request documents or testimony. (1) All demands 
seeking the production of nonpublic documents or employee testimony 
concerning matters relating to their official duties shall be made in 
writing and conform to the requirements outlined in paragraphs (c)(2) 
and (3) of this section.
    (2) The requesting party shall serve a summons or subpoena issued in 
accordance with the appropriate rules of procedure on the General 
Counsel to the Inspector General at the Office of Inspector General, 
1735 North Lynn Street, Arlington, VA 22209-2020.
    (3) Together with a summons or subpoena served on the General 
Counsel, the requesting party shall include an affidavit or sworn 
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) If testimony is sought, a detailed summary of the anticipated 
testimony;
    (v) If testimony is sought, a showing that Office of Inspector 
General records could not be provided and used in place of the requested 
testimony;
    (vi) The intended use of the documents or testimony; and
    (vii) An affirmative statement that the documents or testimony is 
necessary for defending or prosecuting the case at issue.
    (d) Evaluation of a demand for documents or testimony. (1) The 
authorizing official will consider the factors in paragraphs (d)(1)(i) 
through (viii) of this section when deciding whether to authorize 
testimony or the production of documents:
    (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) Office of Inspector General rules and regulations;
    (iv) The public interest;
    (v) Minimizing or preventing expenditures of Office of Inspector 
General time and resources solely for private purposes;
    (vi) Minimizing the appearance of improperly favoring one litigant 
over another;
    (vii) Minimizing the possibility that the public will misconstrue 
variances between personal opinions of Office of Inspector General 
employees and agency policy; and
    (viii) Preserving the integrity of the administrative process.
    (2) Where, on the basis of its investigation, the Office of 
Inspector General has requested or recommended that a State or local 
prosecuting authority pursue a criminal prosecution or has otherwise 
approved such a prosecution, that prosecuting authority will be deemed 
to have made a proper

[[Page 48]]

request for information to be used in connection with that prosecution. 
With respect to other criminal matters pursued in state or local courts, 
the consideration shall also be given to the additional factors in 
paragraphs (d)(2)(i) through (iv) of this section:
    (i) The seriousness of the violation or crime involved;
    (ii) The past history or criminal record of the violator or accused;
    (iii) The importance of the legal issues presented; and
    (iv) The relatedness of the crime to the Office of Inspector 
General's mission.
    (3) The following records described in paragraphs (d)(2)(i) through 
(iii) of this section will not be released:
    (i) Records required to remain confidential by the Freedom of 
Information Act, the Privacy Act, this part, and part 262 of this 
chapter,
    (ii) Records containing information relating to an employee's 
security or loyalty; and
    (iii) Original records.
    (4)(i) The following records and testimony may only be produced 
under the circumstances described in paragraphs (d)(4)(i)(A) through (C) 
of this section:
    (A) The Office of Inspector General Manual and other operating 
instructions issued to employees when specifically authorized after 
consultation with the General Counsel to the Inspector General;
    (B) Office of Inspector General criminal investigative reports when 
specifically authorized after consulting with the General Counsel to the 
Inspector General; and
    (C) Information relating to confidential investigative techniques, 
confidential sources of information, and information that must be keep 
confidential under the Inspector General Act, as amended, 5 U.S.C. app. 
3. Where the authorizing official determines this information would 
otherwise be appropriate for release under this part, the Office of 
Inspector General may request an in camera review to determine the 
necessity for its release.
    (ii) The specific limitations on the production of certain 
categories of information set forth in paragraphs (d)(4)(i)(A) through 
(C) of this section do not require or imply that other documents or 
testimony will be authorized without limitation.
    (5) When authorizing testimony or the release of documents, the 
authorizing official will establish the extent of the Office of 
Inspector General's response.
    (i) Permission to testify or to release documents in all cases will 
be limited to matters outlined in the affidavit or declaration described 
in paragraph (c)(3) of this section, or to such matters as deemed 
appropriate by the authorizing official.
    (ii) If the authorizing official allows the production of documents 
or testimony, 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.
    (iii) The Inspector General, authorizing official, or a delegee may 
designate an employee other than the employee identified in the request 
to respond to a request for an appearance.
    (6) Upon the authorizing official's issuance of a final 
determination not to authorize testimony or release records, the party 
making the request may consult or negotiate with the authorizing 
official to refine and limit the demand.
    (7) Notwithstanding the Office of Inspector General's general 
commitment to offer all possible assistance to the courts, the 
disclosure of information falling within the scope of this part is a 
matter of discretion, resting with the authorizing official. If, in the 
opinion of the authorizing official requested documents should not be 
released or testimony should not be provided, that determination will be 
final.
    (e) Representation of an employee in any appearance. At the option 
of the authorizing official, an Office of Inspector General attorney may 
make an appearance on behalf of the Office of

[[Page 49]]

Inspector General and assist an employee whose appearance has been 
requested and authorized. The authorizing official may also request 
assistance from the U.S. Department of Justice.
    (f) Expert or opinion witness. Unless authorized by the authorizing 
official, an employee may not testify as an expert or opinion witness 
regarding 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. A litigant must first obtain the permission of an authorizing 
official before designating an employee as an expert or opinion witness.
    (g) Costs and fees. (1) The Office of Inspector General is 
authorized to charge reasonable fees to parties demanding documents or 
information. Unless determined by 28 U.S.C. 1821 or other applicable 
statute, the costs of responding to a request for documents or testimony 
shall be borne by the requesting party. As determined by the Office of 
Inspector General, costs calculated to reimburse the Office for the cost 
of responding to a demand may include:
    (i) The costs of time expended by employees to process and respond 
to the demand;
    (ii) Attorney time for reviewing, responding to, or processing the 
demand and for legal work in connection with the demand;
    (iii) Expenses generated by equipment used to search for, produce, 
and copy the requested information;
    (iv) Expenses attendant upon an 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;
    (v) Travel costs of any employees who testify or are requested to 
testify and any agency attorney or other representative who travels in 
connection with a request for testimony, including lodging and per diem, 
assessed, as applicable, at the rates and in the manner specified in 39 
CFR 265.9; and
    (vi) Other costs of providing testimony, including the cost of 
transcripts.
    (2) At the discretion of the Office of Inspector General where 
appropriate, fees and costs may be estimated and collected before 
testimony is given.
    (h) Definitions. The following definitions apply to this section.
    Authorizing official means the Inspector General or an official 
designated by the Inspector General to authorize release of documents or 
employee testimony.
    Case or matter means any civil or criminal proceeding before a court 
of law, administrative board, hearing officer, or other body conducting 
a judicial or administrative proceeding. The term also includes 
proceedings in legislative bodies other than the Congress of the United 
States.
    Demand means any request, order, or subpoena for testimony or the 
production of documents.
    Document includes all information falling within the scope of the 
terms ``documents'' and ``electronically stored information'' in Federal 
Rule of Civil Procedure 34(a) and any analogous rules applicable to the 
case or matter in which a demand is made.
    Employee includes all current and former employees of the Office of 
Inspector General (whether temporary or permanent, part-time or full-
time), employees of the Postal Service assigned or detailed to the 
Office of Inspector General, student interns, student cooperatives, 
contractors, and employees of contractors who have or had access to 
Office of Inspector General information and records.
    Nonpublic means all documents or information not subject to 
mandatory public disclosure under 39 CFR 265.6(b) or that must be kept 
confidential under the Inspector General Act of 1978 as amended, 5 
U.S.C. app. 3.
    Testify or testimony include in-person oral statements before any 
body conducting a judicial, administrative, or legislative proceeding, 
statements made in depositions, answers to interrogatories, 
declarations, affidavits, or other similar documents.

[[Page 50]]



Subpart C_Rules of Procedure Relating to the Disposition of Stolen Mail 
Matter and Property Acquired by the Office Of Inspector General for Use 
                               as Evidence

    Source: 81 FR 50624, Aug. 2, 2016, unless otherwise noted.



Sec.  230.30  Scope.

    This subpart prescribes procedures governing the disposition of any 
property (real, personal, tangible, or intangible) obtained by the 
United States Postal Service Office of Inspector General (Office of 
Inspector General) for possible use as evidence after the need to retain 
such property no longer exists.



Sec.  230.31  Definitions.

    The following definitions apply to this subpart:
    (a) Apparent. That which is clear, plain, and evident.
    (b) Owner. The person recognized by the law as having ultimate 
control over and the right to use property.
    (c) Claimant. A person who submits a claim for abandoned or other 
unclaimed property.
    (d) Ruling official. The official who has the authority to grant or 
deny a claim for abandoned or other unclaimed property, typically the 
Executive Special Agent in Charge of the Area Field Office where the 
property is located, or a designee.



Sec.  230.32  Disposition of property of apparent owners where property
is valued over $200.

    Where an apparent owner of property subject to this subpart is 
known, and the estimated value of the property exceeds $200, the owner 
shall be notified by certified mail at his last known address. The 
written notice shall describe the property and the procedure for filing 
a claim for its return (see, Sec. Sec.  230.36 and 230.39). Such claims 
must be filed within 30 days from the date the written 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.  230.38.



Sec.  230.33  Disposition of property of apparent owners where property
is valued at $200 or less.

    Where an apparent owner of property subject to this subpart is 
known, and the estimated value of the property is $200 or less, the 
Executive Special Agent in Charge, or a designee, should attempt to 
return the property to the owner. If successful, the Executive Special 
Agent in Charge shall request the owner sign a Hold Harmless Agreement. 
If not, the Executive Special Agent in Charge shall vest title in the 
Government.



Sec.  230.34  Disposition of property of unknown owners where property
is valued over $200.

    (a) Where no apparent owner of property subject to this subpart is 
known, except property described in Sec.  230.36, and the estimated 
value of the property exceeds $200, the Executive Special Agent in 
Charge, or a designee, must publish notice providing the following 
information:
    (1) A description of the property, including model or serial 
numbers, if known;
    (2) A statement of the location where the property was found;
    (3) The name, address, and telephone number of the Executive Special 
Agent in Charge who has custody of the property; and
    (4) A statement inviting any person who believes he or she is fully 
entitled to the property to submit a claim for its return with the 
Executive Special Agent in Charge identified in the notice. Such claim 
must be submitted within 30 days from the date of first publication of 
the notice.
    (b) The notice under paragraph (a) of this section must be published 
for three consecutive weeks on the Office of Inspector General's Web 
site.



Sec.  230.35  Disposition of property of unknown owners where property 
is valued at $200 or less.

    Where the owner of property subject to this subpart is unknown and 
the estimated value of the property is $200 or less, no notice is 
required, and the Executive Special Agent in Charge, or a designee, 
should vest title in the Government, subject to the rights of the

[[Page 51]]

owner to submit a valid claim as provided in Sec.  230.38.



Sec.  230.36  Contraband and property subject to court order.

    Claims submitted with respect to property subject to this subpart, 
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 Executive Special Agent in Charge, 
or a designee, determines that it should be placed in official use by 
the Office of Inspector General. 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.  230.37  Determination of type of property.

    If the Office of Inspector General is unable to determine whether 
the personal property in its custody is abandoned or voluntarily 
abandoned, it shall contact the Office of Inspector General, Office of 
General Counsel for such a determination.



Sec.  230.38  Disposition of abandoned property; additional period for
filing claims.

    (a) Upon expiration of the time provided in Sec. Sec.  230.32 and 
230.34 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 Government. 
However, if the owner satisfies the requirements of paragraph (b) of 
this section, except for property described in Sec.  230.36, such 
abandoned property must be returned to the owner if a valid claim is 
filed within three years from the date the property became abandoned, 
with the following qualifications:
    (1) Where property has been placed in official use by the Office of 
Inspector General, 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 Office of Inspector General, less costs incurred in 
returning or attempting to return such property to the owner; or
    (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 paragraph (a) of this 
section, the claimant must establish he or she had no actual or 
constructive notice that he or she was entitled to file a claim pursuant 
to Sec.  230.32 or Sec.  230.34 prior to the date the property became 
abandoned. Publication of a notice pursuant to Sec.  230.34 provides 
constructive notice, unless a claimant can demonstrate circumstances 
that reasonably precluded his or her access to the published notice.



Sec.  230.39  Submission of claims.

    Claims submitted pursuant to this subpart must be submitted on 
Postal Service Form 1503, which may be obtained from the Executive 
Special Agent in Charge who has custody of the property.



Sec.  230.40  Determination of claims.

    Upon receipt of a claim under this subpart, the Office of Inspector 
General must conduct an investigation to determine the merits of the 
claim. The results of the investigation must be submitted to the ruling 
official, 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 granted, the conditions of relief and the procedures to be 
followed to obtain the relief shall be set forth. If the claim is 
denied, the claimant shall be advised of the reason for such denial. For 
claims involving firearms or contraband, the ruling official shall 
consult with the Office of Inspector General, Office of General Counsel 
prior to rendering a decision.

[[Page 52]]



Sec.  230.41  Reconsideration of claims.

    A written request for reconsideration of denied claims must be based 
on evidence recently developed or not previously presented. It must be 
submitted within 10 days of the postmarked date of the letter denying 
the claim. The ruling official shall advise the Asset Forfeiture 
Coordinator if a timely reconsideration of the denial is made. The 
Office of Inspector General, Office of General Counsel shall rule on the 
reconsideration request.



Sec.  230.42  Disposition of property declared abandoned where title
vests in the government.

    Property declared abandoned, including cash and proceeds from the 
sale of property subject to this part, may be shared with federal, 
state, or local law enforcement agencies. Abandoned property may also be 
destroyed, sold, or placed into official use. However, before abandoned 
property can be shared with another agency, sold, or placed into 
official use, the Executive Special Agent in Charge must confer with the 
Office of Inspector General, Office of General Counsel. Abandoned 
property that is not shared with other agencies shall be converted into 
a monetary instrument and deposited into the Postal Service Fund 
established by 39 U.S.C. 2003. The Executive Special Agent in Charge of 
Headquarters Operations, or a designee, in consultation with the Office 
of General Counsel, shall determine which accounts within the Postal 
Service Fund will receive the proceeds of abandoned property.



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

[[Page 53]]

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 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

[[Page 54]]

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 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

[[Page 55]]

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 
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

[[Page 56]]

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 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.govinfo.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 screening.
233.12 Civil penalties.

    Authority: 39 U.S.C. 101, 102, 202, 204, 401, 402, 403, 404, 406, 
410, 411, 1003, 3005(e)(1), 3012, 3017, 3018; 12 U.S.C. 3401-3422; 18 
U.S.C. 981, 983, 1956, 1957, 2254, 3061; 21 U.S.C. 881; Pub. L. 101-410, 
104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 104-208, 110 Stat. 3009; 
Secs. 106 and 108, Pub. L. 106-168, 113 Stat. 1806 (39 U.S.C. 3012, 
3017); Pub. L. 114-74, 129 Stat. 584.



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

[[Page 57]]

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.
    (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

[[Page 58]]

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.
    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

[[Page 59]]

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 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 that 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; Priority Mail Express; Outbound 
International Expedited Services (Priority Mail Express International; 
as well as Global Express Guaranteed items containing only documents); 
Outbound Single-Piece First-Class Package International Service; 
International Priority Airmail, except M-bags; International Surface Air 
Lift, except M-bags; Outbound Single-Piece First-Class Mail 
International; Global Bulk Economy Contracts, except M-bags; and 
International Transit Mail.
    (4) Unsealed mail is mail that 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; USPS Marketing Mail (Commercial and Nonprofit); 
Package Services; incidental First-Class Mail attachments and 
enclosures; Parcel Select; Parcel Return Service; First Class Package 
Service; USPS Retail Ground; Global Express Guaranteed items containing 
non-documents; Outbound Priority Mail International; International 
Direct Sacks--M-bags; and all items sent via ``Free Matter for the Blind 
or Handicapped'' under 39 U.S.C. 3403 and ``Free Matter for the Blind'' 
under 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

[[Page 60]]

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
    (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

[[Page 61]]

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 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.

[[Page 62]]

    (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; 81 FR 74308, Oct. 26, 2016; 82 FR 32474, July 
14, 2017]



Sec.  233.4  Withdrawal of mail privileges.

    (a) False representation and lottery orders--(1) 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-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;

[[Page 63]]

    (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 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

[[Page 64]]

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 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

[[Page 65]]

    (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 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

[[Page 66]]

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, 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,

[[Page 67]]

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 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

[[Page 68]]

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 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

[[Page 69]]

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.
    (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;

[[Page 70]]

    (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.
    (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-

[[Page 71]]

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.
    (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

[[Page 72]]

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:
    (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

[[Page 73]]

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 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;

[[Page 74]]

    (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 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.

[[Page 75]]

    (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 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

[[Page 76]]

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).
    (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:

[[Page 77]]

    (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 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.

[[Page 78]]

    (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 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.

[[Page 79]]

    (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.
    (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

[[Page 80]]

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 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. If 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

[[Page 81]]

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:
    (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

[[Page 82]]

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 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

[[Page 83]]

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
    (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.

[[Page 84]]

    (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 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.

[[Page 85]]

    (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 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

[[Page 86]]

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
    (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 screening.

    (a) Screening of mail transported by aircraft--(1) Authority. 
Pursuant to 39 U.S.C. 5401, the Postal Service is authorized to provide 
for the safe and expeditious transportation of mail by aircraft and may 
make such rules, regulations, and orders consistent with part A of 
subtitle VII of title 49 [49 U.S.C. 40101 et seq.], or any order, rule, 
or regulation made by the Secretary of Transportation thereunder, as may 
be necessary for such transportation, except as otherwise provided in 39 
U.S.C. 5402.
    (2) Purpose. To prevent and deter the carriage of unauthorized 
explosives, incendiaries, or other destructive substances or items in 
the mail or in postal products onboard aircraft and to ensure the 
security and safety of all persons and property onboard aircraft 
carrying mail.
    (3) Policy. Mail of sufficient weight to pose a hazard to aviation 
may, without a search warrant or the sender's or addressee's consent, be 
screened by any means capable of identifying explosives, nonmailable 
firearms, or other dangerous contents in the mails that are destructive 
or could endanger life or property.
    (b) Screening of surface transported mail--(1) Authority. Pursuant 
to 39 U.S.C. 404, the Postal Service has specific power to provide for, 
among other things, the handling of mail. Mail may be screened without a 
search warrant

[[Page 87]]

or the sender's or addressee's consent in exigent circumstances to 
identify explosives or other dangerous contents in the mails.
    (2) Purpose. To prevent and deter the carriage of unauthorized 
explosives or other dangerous content in the mail or in postal products 
transported via surface transportation providers and to ensure the 
security and safety of all persons and property associated with mail 
usage, processing, handling, and transportation.
    (3) Policy. When the Chief Postal Inspector or designee determines 
there is a credible threat that certain mail may contain a bomb, 
explosives, or other material that could endanger life or property, 
including nonmailable firearms, the Chief Postal Inspector or designee 
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.
    (c) Mail screening restrictions. Screening of mail authorized by 
paragraphs (a) and (b) of this section is subject to the following 
restrictions:
    (1) No unreasonable delay. The mail must be screened in a manner 
which does not unreasonably delay its delivery.
    (2) Authorization to screen mail. The mail screening may be 
conducted by Postal Service employees or persons not employed by the 
Postal Service, as authorized by the Chief Postal Inspector, under such 
instruction that requires compliance with this part and protects the 
security of the mail. No information obtained from this mail screening 
may be disclosed unless authorized by this part.
    (3) Mail of insufficient weight to pose a threat. Mail of 
insufficient weight to pose a hazard to air transportation, surface 
transportation, or to contain firearms must be excluded from such 
screening.
    (4) Additional limitations. The screening must be within the limits 
of this section and conducted without opening mail that is sealed 
against inspection or revealing the contents of correspondence within 
mail that is sealed against inspection.
    (d) Identified threatening pieces of mail--(1) Hazardous mail. Mail, 
sealed or unsealed, reasonably suspected of posing an immediate danger 
to life or limb or an immediate substantial danger to property as a 
result of screening or other information may, without a search warrant, 
be detained, opened, removed from postal custody, processed, and 
treated, but only to the extent necessary to determine and eliminate the 
danger. Such mail must be processed in accordance with the instructions 
promptly furnished by the Inspection Service.
    (2) Indeterminate mail. 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 processed in accordance 
with the instructions promptly furnished by the Inspection Service.
    (3) Mandatory reporting. Any person who opens mail sealed against 
inspection, in accordance with paragraph (d)(1) or (2) of this section, 
is required to provide a complete written and sworn statement regarding 
the detention, screening, opening, and treatment of the mail piece, as 
well as the circumstances surrounding its identification as a possible 
threat. The statement is required to be signed by the person purporting 
to act under this section and promptly forwarded to the Chief Postal 
Inspector. 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.

[86 FR 53222, Sept. 27, 2021]



Sec.  233.12  Civil penalties.

    (a) False representations and lottery orders. Under 39 U.S.C. 
3005(a)(1)-(3), the Postal Service may issue administrative orders 
prohibiting persons from using the mail to obtain money through false 
representations or lotteries. Persons who evade, attempt to evade, or 
fail to comply with an order to stop such prohibited practices may be 
liable to the United States for a

[[Page 88]]

civil penalty under 39 U.S.C. 3012(a). As adjusted under Public Law 114-
74, the penalties are as follows: $85,637 for each mailing less than 
50,000 pieces, $171,269 for each mailing of 50,000 to 100,000 pieces, 
and $17,128 for each additional 10,000 pieces above 100,000 not to 
exceed $3,425,405.
    (b) False representation and lottery penalties in lieu of or as part 
of an order. In lieu of or as part of an order issued under 39 U.S.C. 
3005(a)(1)-(3), the Postal Service may assess a civil penalty payable 
under 39 U.S.C. 3012(c)(1). As adjusted under Public Law 114-74, the 
penalties are as follows: $42,818 for each mailing that is less than 
50,000 pieces, $85,637 for each mailing of 50,000 to 100,000 pieces, and 
an additional $8,564 for each additional 10,000 pieces above 100,000 not 
to exceed $1,712,703.
    (c) Misleading references to the United States Government; 
Sweepstakes and deceptive mailings. Persons sending certain deceptive 
mail matter described in 39 U.S.C. 3001(h)-(k), including:
    (1) Solicitations making false claims of Federal Government 
connection or approval;
    (2) Certain solicitations for the purchase of a product or service 
that may be obtained without cost from the Federal Government;
    (3) Solicitations containing improperly prepared ``facsimile 
checks''; and
    (4) Solicitations for ``skill contests'' and ``sweepstakes'' sent to 
individuals who, in accordance with 39 U.S.C. 3017(d), have requested 
that such materials not be mailed to them; may be liable to the United 
States for a civil penalty under 39 U.S.C. 3012(d). As adjusted under 
Public Law 114-74, this penalty is not to exceed $17,128 for each 
mailing.
    (d) Commercial use of lists of persons electing not to receive skill 
contest or sweepstakes mailings. Under 39 U.S.C. 3017(g)(2), the Postal 
Service may impose a civil penalty against a person who provides 
information for commercial use about individuals who, in accordance with 
39 U.S.C. 3017(d), have elected not to receive certain sweepstakes and 
contest information. As adjusted under Public Law 114-74, the penalty 
may not exceed $3,425,405 per violation.
    (e) Reckless mailing of skill contest or sweepstakes matter. Under 
39 U.S.C. 3017(h)(1)(A), any promoter who recklessly mails nonmailable 
skill contest or sweepstakes matter may be liable to the United States 
for a civil penalty for each mailing to an individual. As adjusted under 
Public Law 114-74, the penalty is $17,128 per violation.
    (f) Hazardous material. Under 39 U.S.C. 3018(c)(1)(A), the Postal 
Service may impose a civil penalty payable into the Treasury of the 
United States on a person who knowingly mails nonmailable hazardous 
materials or fails to follow postal laws on mailing hazardous materials. 
As adjusted under Public Law 114-74, the penalty is at least $371, but 
not more than $147,675 for each violation.

[81 FR 42533, June 30, 2016, as amended at 82 FR 6277, Jan. 19, 2017; 84 
FR 20805, May 13, 2019; 85 FR 2037, Jan. 14, 2020; 86 FR 2987, Jan. 14, 
2021; 87 FR 1675, Jan. 12, 2022; 88 FR 1514, Jan. 11, 2023]



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 89]]

    (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 Relocating retail services; adding new retail service facilities.

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



Sec.  241.1  Post offices.

    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. A Remotely Managed Post 
Office (RMPO) is a Post Office that offers part-time window service 
hours, is staffed by a Postal Service employee under the direction of a 
postmaster, and reports to an Administrative Post Office. A Part-Time 
Post Office (PTPO) is a Post Office that offers part-time window service 
hours, is staffed by a Postal Service employee, and reports to a 
district office. Unless otherwise specified, all references to ``Post 
Office'' include RMPOs and PTPOs.

[77 FR 46950, Aug. 7, 2012]

[[Page 90]]



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 terms listed below are 
defined as follows:
    (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.
    (vi) A ``Remotely Managed Post Office'' (RMPO) is a Post Office that 
offers

[[Page 91]]

part-time window service hours, is staffed by a Postal Service employee 
at the direction of a postmaster, and reports to an Administrative Post 
Office. Unless otherwise specified, all references to ``Post Office'' 
include RMPOs. The classification of a Post Office as an RMPO is not a 
discontinuance action under this section.
    (vii) A ``Part-Time Post Office'' (PTPO) is a Post Office that 
offers part-time window service hours, is staffed by a Postal Service 
employee, and reports to a district office. Unless otherwise specified, 
all references to ``Post Office'' include PTPOs. The classification of a 
Post Office as a PTPO is not a discontinuance action under this section.
    (3) Requirements. A District Manager or the responsible Headquarters 
Vice 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) within the 120 days specified by statute.
    (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; up to 120    Wait at least 60 days from
 days for appeal consideration and           first day after posting
 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

[[Page 92]]

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 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 level RMPO;
    (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 pickup.
    (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

[[Page 93]]

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 of Area Delivery and Retail 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.
    (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

[[Page 94]]

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 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

[[Page 95]]

President or the applicable Vice President of Area Delivery and Retail 
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 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

[[Page 96]]

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).
    (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

[[Page 97]]

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.
    (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; 77 FR 46950, Aug. 7, 2012; 87 FR 29673, May 
16, 2022]



Sec.  241.4  Relocating retail services; adding new retail service
facilities.

    (a) Application. (1) Except as otherwise provided, this section 
applies when the Postal Service makes a tentative decision to relocate 
all retail services from a retail service facility to a separate 
physical building, or to add a new retail service facility for a 
community. As used in this section, ``retail services'' means the 
single-piece mail services offered to individual members of the public 
on a walk-in basis, and a ``retail service facility'' is a physical 
building where Postal Service employees provide such retail services.
    (2) This paragraph (a)(2) applies to temporary additions of retail 
service or relocations of retail service facilities, emergency 
relocations of retail services, provisional relocations of retail 
services, and relocations of retail services within the same development 
or following redevelopment of a site.
    (i) The Postal Service may implement temporary additions of retail 
service or relocations of retail service facilities without undertaking 
the process in paragraph (c) of this section when necessary to support 
Postal Service business for holidays, special events, or overflow 
business. Temporary additions of retail service and relocations of 
retail service facilities

[[Page 98]]

normally 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 or his designee.
    (ii) The Postal Service may implement emergency relocations without 
first undertaking the process in paragraph (c) of this section when the 
Postal Service determines relocation is required to protect Postal 
Service business due to events such as earthquakes, floods, fire, 
potential or actual OSHA violations, safety factors, environmental 
causes, other business disrupting events, or as necessary to protect 
employees, customers, or the security of the mail. Following an 
emergency relocation, as soon as the Postal Service determines it is 
feasible to identify the long-term location for the retail services, the 
Postal Service will make a tentative decision to remain in the emergency 
relocation site on a long-term basis, to return to the original retail 
service facility (if feasible), or to relocate to another site. Unless 
the decision is to return to the original retail service facility, the 
Postal Service then will follow the process in paragraph (c) of this 
section with respect to collecting and considering community input on a 
proposal to implement that decision.
    (iii) The Postal Service may implement provisional relocations in 
connection with lease terminations or expirations, or in connection with 
a lessor exercising a right to require the Postal Service to move to 
alternate premises, when the Postal Service has not already undertaken 
the process in paragraph (c) of this section for such relocations. Not 
later than 180 days following a provisional relocation, the Postal 
Service will make a tentative decision to remain in the provisional 
relocation site on a long-term basis or to relocate to another site. 
After that decision, the Postal Service will follow the process in 
paragraph (c) of this section with respect to collecting and considering 
community input on a proposal to implement that decision.
    (iv) The Postal Service may implement relocations without 
undertaking the process in paragraph (c) of this section when the new 
retail service facility is within the same development as the relocated 
retail service facility. As used in this section, ``development'' means 
one or more commercial or mixed-use buildings that share an access point 
or points from a public right-of-way.
    (v) The Postal Service may implement relocations without undertaking 
the process in paragraph (c) of this section when the relocated retail 
service facility is within the same site following the redevelopment of 
the building or development in which the relocated retail service 
facility was located.
    (3) This section applies to tentative decisions described in 
paragraphs (a)(1) and (2) of this section made on or after June 6, 2023. 
The rules under Sec.  241.4 in effect prior to that date shall apply to 
projects described in paragraph (a) of this section undertaken prior to 
that date.
    (b) Purpose. The purpose of this section is to provide opportunities 
for community members and their elected local officials to comment on 
Postal Service tentative decisions described in paragraphs (a)(1) and 
(2) of this section and to give input on proposals for implementing 
those decisions (each a ``proposal''), and to require the Postal Service 
to consider any input in arriving at final decisions to proceed with, 
modify, or cancel proposals.
    (c) Collecting and considering community input. When the Postal 
Service makes a tentative decision described in paragraphs (a)(1) and 
(a)(2) of this section, a Postal Service representative will take the 
following steps:
    (1) Identify the community and engage local elected officials. The 
Postal Service representative will identify the community the Postal 
Service anticipates would be affected by implementing the proposal, 
taking into account such factors as the Postal Service determines are 
appropriate for the proposal. The Postal Service representative then 
will deliver to one or more local elected public officials a written 
outline of the proposal and offer to discuss the proposal with them. The 
Postal Service representative may elect to conduct that discussion 
either in person or using any other appropriate communication tool, 
including electronic communications. If the officials accept

[[Page 99]]

the offer, then the Postal Service representative will identify the need 
and outline the proposal 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 input from the local officials 
regarding the proposal.
    (2) Notify the community. The Postal Service will send an initial 
news release outlining the proposal to one or more news media serving 
the community and, if the community has a retail service facility, then 
the Postal Service also will post a copy of the information given to 
local officials or the news release in the public lobby of that retail 
service facility. If the proposal concerns relocating retail services 
from a leased facility, then, using the most current notice address 
information in the Postal Service's file for the site, the Postal 
Service will deliver to the lessor a copy of the information given to 
local officials, provided, however, that no such notice will be required 
when the lessor has terminated the Postal Service's lease or has 
declined to renew the Postal Service lease on terms acceptable to the 
Postal Service.
    (3) Solicit comments from the community. The Postal Service will 
mail written notification of the tentative decision and the proposal to 
customers within the community and post a notice of the proposal in the 
retail service facility that would be affected by the proposal, seeking 
their written input on the proposal and providing an address to which 
the community and local officials may send written comments on the 
proposal during the 45 days following the mailing of that notification.
    (i)(A) If the proposal concerns relocation, then the Postal Service 
will:
    (1) Discuss the reasons for relocating;
    (2) Identify the site or area, or both, to which the Postal Service 
anticipates relocating the retail services; and
    (3) Describe the anticipated size of the retail service facility for 
the relocated retail services, and the anticipated services to be 
offered at that site or in that area.
    (B) The Postal Service may identify more than one potential 
relocation site and/or area, for example, when the Postal Service has 
not selected among competing sites.
    (ii)(A) If the proposal concerns adding a new retail service 
facility for a community, then the Postal Service will:
    (1) Discuss the reasons for the addition;
    (2) Identify the site or area, or both, to which the Postal Service 
anticipates adding the retail service facility; and
    (3) Describe the anticipated size of the added retail service 
facility, and the anticipated services to be offered.
    (B) The Postal Service may identify more than one potential site 
and/or area, for example, when the Postal Service has not selected yet 
among competing sites.
    (4) Consider comments. After the 45-day comment period, the Postal 
Service will consider the comments received that identify reasons why 
the Postal Service's tentative decision and proposal (e.g., to relocate 
to the selected site, or to add a new retail service facility) is, or is 
not, the optimal solution for the identified need. Following that 
consideration, the Postal Service will make a final decision to proceed 
with, modify, or cancel the proposal. The Postal Service then will 
inform local officials in writing of its final decision and send an 
initial news release announcing the final decision to local news media. 
If the community has a retail service facility, then the Postal Service 
also will post a copy of the information given to local officials or the 
news release in the public lobby of that retail service facility. The 
Postal Service then will implement the final decision.
    (5) Identify any new site or area. After the written notification 
under paragraph (c)(3) of this section, if the Postal Service decides to 
use a site or area that it did not identify in the written notification, 
and this section applies with respect to that new site or area, then the 
Postal Service will undertake the steps in paragraphs (c)(2) through (4) 
of this section with regard to the new site or area.
    (d) Effect on other obligations and policies. (1) Nothing in this 
section shall add to, reduce, or otherwise modify the

[[Page 100]]

Postal Service's legal obligations or policies for compliance with:
    (i) Section 106 of the National Historic Preservation Act, 16 U.S.C. 
470, Executive Order 12072, and Executive Order 13006;
    (ii) 39 U.S.C. 404(d) and 39 CFR 241.3; or
    (iii) 39 U.S.C. 409(f);
    (2) These are independent policies or obligations of the Postal 
Service that are not dependent upon a relocation or addition of a retail 
service facility.

[80 FR 9193, Feb. 20, 2015, as amended at 88 FR 36961, June 6, 2023]



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]



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 
265.11 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

[[Page 101]]

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; 82 FR 12921, Mar. 8, 2017]



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.



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

[[Page 102]]

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 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

[[Page 103]]

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 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.

[[Page 104]]



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 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

[[Page 105]]

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.
    (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

[[Page 106]]

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 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

[[Page 107]]

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 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

[[Page 108]]

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]



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.

[[Page 109]]



Sec.  261.1  Purpose and scope.

    Under 39 U.S.C. 410, as enacted by the Postal Reorganization Act, 
the U.S. Postal Service is not 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 of this chapter are to provide the basis for an 
organization-wide records and information management program affecting 
all Postal Service organizational components having the custody of any 
form of information and records.

[80 FR 45065, July 29, 2015]



Sec.  261.2  Authority.

    (a) As provided in 39 U.S.C. 401(5), 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) Under Sec.  262.2 of this chapter, the Postal Service Privacy 
and Records Office, located under the Associate General Counsel and 
Chief Ethics and Compliance Officer, is responsible for the retention, 
security, and privacy of Postal Service records and is empowered to 
authorize the disclosure of such records and to order their disposal by 
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.

[80 FR 45065, July 29, 2015]



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 Chief Freedom of Information Act (FOIA) Officer, whose 
duties are performed by the Associate General Counsel and Chief Ethics 
and Compliance Officer, is responsible for:
    (1) Overseeing Postal Service compliance with the FOIA.
    (2) Making recommendations to the Postmaster General regarding the 
Postal Service's FOIA program.
    (3) Monitoring and reporting on FOIA implementation and performance 
for the Postal Service.
    (b) The Chief Privacy Officer, under the Associate General Counsel 
and Chief Ethics and Compliance Officer, is responsible for 
administering records and information management policies, and the 
privacy of information programs, and for the compliance of all 
handbooks, directives, and instructions in support of these policies and 
programs.
    (c) The Deputy Chief FOIA Officer, under the Privacy and Records 
Office, administers the Postal Service release of information program 
with the assistance of FOIA Coordinators in Headquarters departments and 
area and district offices.
    (d) Freedom of Information Act Public Liaisons are responsible for:
    (1) Managing FOIA Requester Service Centers (RSCs).
    (2) Receiving concerns of requesters about the service provided by 
the FOIA RSC following an initial response.
    (3) Ensuring a service-oriented response to requests and FOIA-
related inquiries.
    (4) Reporting to the Chief FOIA Officer on their activities.
    (e) Freedom of Information Act Requester Service Centers are 
responsible for:
    (1) Facilitating communication between the Postal Service and FOIA 
requesters.
    (2) Providing information to requesters concerning the status of 
FOIA requests and information about responses to such requests.
    (f) Freedom of Information Act Coordinators fill an ad hoc position 
located within each Headquarters department, and Area and District 
office, and are responsible for:

[[Page 110]]

    (1) Coordinating and tracking FOIA requests referred to or received 
by their functional or geographical area.
    (2) Providing procedural guidance, upon request, to records 
custodians.
    (3) Assisting the Deputy Chief FOIA Officer with national reporting 
activities, such as annual reporting of local FOIA and Privacy Act 
activities.
    (g) Records Custodians are responsible for ensuring that records 
within their facilities or organizations are managed according to Postal 
Service policies. Vice presidents or their designees are the custodians 
of records maintained at Headquarters. In the field, the Records 
Custodian is the head of a Postal Service facility such as an area, 
district, Post Office, or other Postal Service installation or designee 
that maintains Postal Service records. Senior medical personnel are the 
custodians of restricted medical records maintained within Postal 
Service facilities. The Custodian of Employee Assistance Program (EAP) 
records is the Postal Service counselor, a supplier, or the public 
health service, whichever provided the services.
    (h) 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.

[80 FR 45065, July 29, 2015]



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. The CPO has the power to 
authorize the disclosure of such records. Additionally, the CPO is 
responsible for establishing procedures and guidelines to ensure that 
record management practices are in compliance with the Privacy Act and 
FOIA. The CPO directs the activities of the Privacy and Records Office 
and may also delegate or take appropriate action if policies are not 
adhered to or if questions of interpretation or procedures arise.
    (b) Deputy Chief FOIA Officer. The Deputy Chief FOIA Officer, under 
the Privacy and Records Office, administers the Postal Service release 
of information program and has the power to authorize the disclosure of 
records. The Deputy Chief FOIA Officer oversees FOIA Requester Service 
Centers (RSCs).
    (c) Records Custodian. The Records Custodian is 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. This is the Postal Service 
official, usually a vice president, who prescribes the existence of and 
the policies for an information system.
    (e) Records Office. The Records Office is responsible for the 
issuance of policy on the maintenance and disposition of 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.

[80 FR 45066, July 29, 2015]



Sec.  262.3  Information.

    Data combined with the knowledge of its context and having the 
potential to serve a Postal Service use.

[[Page 111]]

    (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 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.

[[Page 112]]

    (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.
    (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

[[Page 113]]

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 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

[[Page 114]]

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_PRODUCTION OR DISCLOSURE OF MATERIAL OR INFORMATION-
-Table of Contents



  Subpart A_Procedures for Disclosure of Records Under the Freedom of 
                             Information Act

Sec.
265.1 General provisions.
265.2 Proactive disclosure of Postal Service records.
265.3 Procedure for submitting a FOIA request.
265.4 Responsibility for responding to requests.
265.5 Timing of responses to requests.
265.6 Responses to requests.
265.7 Confidential commercial information obtained from submitters.
265.8 Administrative appeals.
265.9 Fees.

   Subpart B_Production or Disclosure in Federal and State Proceedings

265.11 Compliance with subpoenas 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 Postal Inspection Service where the 
          Postal Service, the United States, or any other Federal agency 
          is not a party.

                    Subpart C_Availability of Records

265.14 Rules concerning specific categories of records.

    Authority: 5 U.S.C. 552; 5 U.S.C. App. 3; 39 U.S.C. 401, 403, 410, 
1001, 2601; Pub. L. 114-185.

    Source: 81 FR 86271, Nov. 30, 2016, unless otherwise noted.



  Subpart A_Procedures for Disclosure of Records Under the Freedom of 
                             Information Act



Sec.  265.1  General provisions.

    (a) Policy. (1) This subpart contains the regulations that implement 
the Freedom of Information Act (FOIA), 5 U.S.C. 552, insofar as the Act 
applies to the Postal Service. These rules should be read in conjunction 
with the text of the FOIA and the Uniform Freedom of Information Act Fee 
Schedule and Guidelines published by the Office of Management and Budget 
(OMB Guidelines). The Postal Service FOIA Requester's Guide, an easy-to-
read guide for making Postal Service FOIA requests, is available at 
http://about.usps.com/ who-we-are/foia/welcome.htm.
    (2) Requests made by individuals for records about themselves under 
the Privacy Act of 1974, 5 U.S.C. 552a, are processed under part 266 of 
this chapter as well as under this subpart.

[[Page 115]]

    (3) 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 
of those records that are covered by the requirements of the FOIA, 
subject only to the specific exemptions required or authorized by law. 
The exemptions from mandatory disclosure for various types of records 
provided by 5 U.S.C. 552(b) and 39 U.S.C. 410(c) 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 rather than by requiring their disclosure. This Postal 
Service policy does not create any right enforceable in court.
    (4) Nothing in this subpart shall be construed to entitle any 
person, as of right, to any service or to the disclosure of any record 
to which such person is not entitled under the FOIA.
    (b) Definitions--(1) Record. (i) For purposes of this part, a record 
is a discrete, distinct, or segregable grouping of information that 
pertains to a specific topic that is:
    (A) Recorded, regardless of media, format, or physical 
characteristics, including electronic data; and
    (B) In the custody or control of the Postal Service.
    (ii) The definition of a record does not include any discrete, 
distinct, or segregable grouping of information created at the 
discretion of an employee primarily for the employee's convenience and 
not disclosed to other employees. The definition of a record is not the 
same as a ``document;'' a single ``document'' may be a single record or 
it may include multiple records and groupings of information that do not 
constitute records as defined in this section.
    (2) Component. For purposes of this subpart, component means any 
department or facility within the Postal Service that maintains records; 
the Office of Inspector General; and the Postal Inspection Service. 
Postal Service refers to all such components collectively.

[82 FR 32767, July 18, 2017, amended at 83 FR 48235, Sept. 24, 2018]



Sec.  265.2  Proactive disclosure of Postal Service records.

    (a) In general. The Postal Service is responsible for determining 
which of its records must be made publicly available, for identifying 
additional records of interest to the public that are appropriate for 
public disclosure, and for posting and indexing such records. The Postal 
Service's FOIA Requester Service Centers (RSCs) and FOIA Public Liaisons 
can assist individuals in locating Postal Service records. Descriptions 
of, and contact information for, the various FOIA RSCs can be found at 
http://about.usps.com/ who-we-are/foia/ welcome.htm.
    (b) Records available in an electronic format. Records that the FOIA 
requires the Postal Service to make available for public inspection in 
an electronic format pursuant to 5 U.S.C. 552(a)(2) and that are exempt 
from the requirements of 5 U.S.C. 552(a)(3), may be accessed through the 
Postal Service's Web site at http://about.usps.com/ who-we-are/foia/
welcome.htm. The Postal Service must ensure that its Web site of posted 
records and indices is reviewed and updated on an ongoing basis. Such 
records available for public inspection in an electronic format include 
the following:
    (1) Opinions. All final opinions and orders made in the adjudication 
of 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 
supplier disagreement 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 Web site at http://
about.usps.com/ who-we-are/foia/welcome.htm.
    (2) Administrative manuals and instructions. 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

[[Page 116]]

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 Postal 
Service's Web site at http://about.usps.com/ who-we-are/foia/
welcome.htm. Copies of publications which are not listed as for sale or 
as available free of charge may be requested on an individual basis in 
accordance with the procedures provided in Sec.  265.3.
    (3) Previously released records. Copies of all records, regardless 
of form or format, that have been released to any person pursuant to the 
FOIA; and that because of the nature of their subject matter, the Postal 
Service determines have become or are likely to become the subject of 
subsequent requests for substantially the same records; or that have 
been requested 3 or more times, as well as a general index of such 
records. Records processed and disclosed after March 31, 1997, 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 Web site identified at 
Sec.  265.2(b). Records described in this paragraph that were not 
created by, or on behalf of, the Postal Service generally will not be 
available at the 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 exemptions indicated in accordance with Sec.  
265.6(d).
    (4) Public index. (i) A public index is maintained in the 
Headquarters Library and at the 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 (b) 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.  265.3.
    (iv) Copies of the public index and of matters listed in the public 
index may be requested through the procedures described in Sec.  265.3, 
with payment of any applicable fees.
    (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 Web site at http://about.usps.com/ who-we-are/foia/ 
welcome.htm.



Sec.  265.3  Procedure for submitting a FOIA request.

    (a) To whom submitted. A request must be submitted to the 
appropriate FOIA Requester Service Center (RSC). Descriptions of, and 
contact information for, the various FOIA RSCs can be found at http://
about.usps.com/ who-we-are/foia/welcome.htm. For assistance in 
determining the appropriate FOIA RSC, requesters may contact the USPS HQ 
FOIA Requester Service Center, Privacy and Records Office, U.S. Postal 
Service, 475 L'Enfant Plaza SW., Washington, DC 20260, telephone (202) 
268-2608. Requests for listings of postal employee names should also be 
sent to the USPS HQ FOIA Requester Service Center.
    (b) Form of request. A request to inspect or to obtain a copy of an 
identifiable Postal Service record must 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, both on the letter and on the envelope or 
other cover. Requests for records that are labeled incorrectly may be 
delayed in reaching the appropriate FOIA RSC. A requester must provide 
his or her full name and mailing address. A requester may also provide a 
daytime telephone number or email address to facilitate communication 
regarding his or her request.
    (c) Content of request. Requesters must describe the records sought 
in

[[Page 117]]

sufficient detail to enable Postal Service personnel to locate them with 
a reasonable amount of effort. Whenever possible, requesters should 
include specific information about each record sought, such as the type 
of record (e.g., contract, report, memorandum, etc.); the title or case 
number of a specific document or report; the topic or subject matter; 
the name of the office, facility, functional unit or employees most 
likely to possess the record; the geographical location, such as a city 
and state, where the records are thought to exist; the date or general 
timeframe of the record's creation; and any details related to the 
purpose of the record. Requests for email records should specify the 
likely senders and recipients, keywords, and a range of dates. If 
seeking information about a company, requesters should provide the exact 
name and address of the company (many companies use similar names). 
Before submitting requests, requesters may contact the relevant Postal 
Service FOIA Requester Service Center to discuss the records they are 
seeking and to receive assistance in describing the records. The request 
may state the maximum amount of fees for which the requester is willing 
to accept liability without prior notice. If no amount is stated, the 
requester will be deemed willing to accept liability for fees not to 
exceed $25.00. See paragraph (e)(2) of Sec.  265.9.The request may also 
specify the preferred form or format (including electronic formats) of 
the requested records.
    (d) First-party requests. A requester who is making a request for 
records about himself must provide verification of identity sufficient 
to satisfy the component as to his identity prior to release of the 
record. For Privacy Act-protected records, the requester must further 
comply with the procedures set forth in 39 CFR 266.5.
    (e) Third-party requests. Where a FOIA request seeks disclosure of 
records that pertain to a third party, a requester may receive greater 
access by submitting a written authorization signed by that individual 
authorizing disclosure of the records to the requester, or by submitting 
proof that the individual is deceased (e.g., a copy of a death 
certificate or an obituary). As an exercise of administrative 
discretion, each component can require a requester to supply a notarized 
authorization, a declaration, a completed Privacy Waiver as set forth in 
39 CFR 266.5(b)(2)(iii), or other additional information if necessary in 
order to verify that a particular individual has consented to 
disclosure.
    (f) Improper requests. A request that does not reasonably describe 
the records sought, or does not comply with the published rules 
regarding the procedures to be followed for submitting a request, will 
be deemed to be an improper FOIA request. If after receiving a request, 
the Postal Service determines that it is improper, the Postal Service 
will inform the requester as to why the request is improper. If the 
requester fails to respond to the Postal Service's request for 
clarification or additional information within 30 calendar days, the 
Postal Service will assume the requester is no longer interested in 
pursuing the request and close its file. The FOIA Requester Service 
Centers and the FOIA Public Liaisons are available to assist requesters 
in correcting a request that does not reasonably describe the records 
sought.

[81 FR 86271, Nov. 30, 2016, as amended at 83 FR 48235, Sept. 24, 2018]



Sec.  265.4  Responsibility for responding to requests.

    (a) In general. When a request is received, the FOIA RSC will either 
respond to the request, or refer the request to the appropriate FOIA RSC 
or records custodians. The FOIA RSC will advise the requester of any 
such referral. The Postal Service, the Office of Inspector General of 
the Postal Service, and the Postal Inspection Service, respectively, are 
responsible for responding to requests they receive for records they 
maintain. Records responsive to a request ordinarily will include only 
records in the Postal Service's possession as of the date of the search. 
If any other date is used, the Postal Service shall inform the requester 
of that date. A record that is excluded from the requirements of the 
FOIA pursuant to 5 U.S.C. 552(c) is not considered responsive to the 
request.
    (b) Authority to grant or deny requests. The records custodian of 
the requested

[[Page 118]]

record, or his designee, is authorized to grant or to deny the request. 
FOIA RSC staff may also grant or deny requests.
    (c) Receipt and tracking of requests. FOIA RSCs are responsible for 
the initial receipt and tracking of FOIA requests.
    (d) Acknowledgments of requests. FOIA RSCs must acknowledge the 
request in writing and assign it an individualized tracking number if it 
will take longer than 10 working days to process. The acknowledgement of 
the request must include a brief description of the records sought to 
allow requesters to more easily keep track of their requests.

[81 FR 86271, Nov. 30, 2016, as amended at 82 FR 15139, Mar. 27, 2017]



Sec.  265.5  Timing of responses to requests.

    (a) In general. Requests will ordinarily be responded to according 
to their order of receipt. A request that is not initially submitted to 
the appropriate FOIA RSC will be deemed to have been received by the 
Postal Service at the time that it is actually received by the 
appropriate FOIA RSC, but in any case a request will be deemed to have 
been received no later than 10 business days after the request is first 
received by a FOIA RSC.
    (b) Multitrack processing. (1) Unless expedited processing has been 
granted, the Postal Service places each request in simple or complex 
tracks based on the amount of work and time involved in processing the 
request. Factors considered in assigning a request into the complex 
track may include one or more of the following factors:
    (i) The request involves voluminous documents;
    (ii) The complexity of the material;
    (iii) The request involves record searches at multiple facilities or 
locations;
    (iv) The request requires consultation among components or other 
agencies;
    (v) The number of open requests submitted by the same requester.
    (2) Within each track, the Postal Service processes requests in the 
order in which they are received. When appropriate, the FOIA RSC or the 
component will notify the requester if it has placed the request in the 
``Complex'' track, and provide the requester with an opportunity to 
limit the scope of the request. If the requester limits the scope of the 
request, it may result in faster processing.
    (c) Expedited processing. (1) Requests and appeals shall be 
processed on an expedited basis whenever it is determined that they 
involve:
    (i) Circumstances in which the lack of expedited processing could 
reasonably be expected to pose an imminent threat to the life or 
physical safety of an individual;
    (ii) An urgency to inform the public about an actual or alleged 
Federal Government activity, if made by a person who is primarily 
engaged in disseminating information.
    (2) A requester who seeks expedited processing must submit a 
statement, certified to be true and correct, explaining in detail the 
basis for making the request for expedited processing. For example, 
under paragraph (e)(1)(ii) of this section, a requester who is not a 
full-time member of the news media must establish that the requester is 
a person whose primary professional activity or occupation is 
information dissemination, though it need not be the requester's sole 
occupation. Such a requester also must establish a particular urgency to 
inform the public about the government activity involved in the 
request--one that extends beyond the public's right to know about 
government activity generally. The existence of numerous articles 
published on a given subject can be helpful in establishing the 
requirement that there be an ``urgency to inform'' the public on the 
topic. As a matter of administrative discretion, a component may waive 
the formal certification requirement.
    (3) A component shall notify the requester within 10 calendar days 
of the receipt of a request for expedited processing of its decision 
whether to grant or deny expedited processing. If expedited processing 
is granted, the request shall be given priority, placed in the 
processing track for expedited requests, and shall be processed as soon 
as practicable. If a request for expedited processing is denied, any 
appeal

[[Page 119]]

of that decision shall be acted on expeditiously
    (d) Unusual circumstances. Whenever the statutory time limit for 
processing a request cannot be met because of ``unusual circumstances'', 
as defined in the FOIA, and the component extends the time limit on that 
basis, the component shall, before the expiration of the 20-day period 
to respond, notify the requester in writing of the unusual circumstances 
involved and of the date by which processing of the request can be 
expected to be completed. Where the extension exceeds 10 working days, 
the component shall, as described by the FOIA, provide the requester 
with an opportunity to modify the request or arrange an alternative time 
period for processing and alert the requester to the availability of the 
Office of Government Information Services to provide dispute resolution 
services. The component shall make available its designated FOIA contact 
and its FOIA Public Liaison for this purpose.
    (e) Aggregating requests. For the purposes of satisfying unusual 
circumstances under the FOIA, the Postal Service may aggregate requests 
in cases where it reasonably appears that multiple requests, submitted 
either by a single requester or by a group of requesters acting in 
concert, constitute a single request that would otherwise involve 
unusual circumstances. Multiple requests that involve unrelated matters 
shall not be aggregated.

[81 FR 86271, Nov. 30, 2016, as amended at 82 FR 32767, July 18, 2017]



Sec.  265.6  Responses to requests.

    (a) Grants of requests. Once a component makes a determination to 
grant a request in whole or in part, it shall notify the requester in 
writing and include a statement alerting the requester of his or her 
right to seek assistance from the FOIA Public Liaison. The component 
also shall inform the requester of any fees charged under Sec.  265.9 
and shall disclose the requested records to the requester promptly upon 
payment of any applicable fees.
    (b) Adverse determinations of requests. A component making an 
adverse determination denying a request in any respect shall notify the 
requester of that determination in writing. Adverse determinations, or 
denials of requests, include decisions that: the requested record is 
exempt, in whole or in part; the request does not reasonably describe 
the records sought; the information requested is not a record subject to 
the FOIA; the requested record does not exist, cannot be located, or has 
been destroyed; or the requested record is not readily reproducible in 
the form or format sought by the requester. Adverse determinations also 
include denials involving fees or fee waiver matters or denials of 
requests for expedited processing.
    (c) Content of denial. The denial shall include, to the extent 
applicable:
    (1) The name and title or position of the person responsible for the 
denial;
    (2) A brief statement of the reasons for the denial, including any 
FOIA exemption applied by the component in denying the request;
    (3) An estimate of the volume of any records or information 
withheld, such as the number of pages or some other reasonable form of 
estimation, although such an estimate is not required if the volume is 
otherwise indicated by deletions marked on records that are disclosed in 
part or if providing an estimate would harm an interest protected by an 
applicable exemption; and
    (4) A statement that the denial may be appealed under Sec.  265.8, 
and a description of the requirements set forth therein.
    (5) A statement notifying the requester of his or her right to seek 
dispute resolution services from the FOIA Public Liaison or the Office 
of Government Information Services.
    (d) Markings on released documents. Markings on released documents 
must be clearly visible to the requester. Records disclosed in part 
shall be marked to show the amount of information deleted and the 
exemption under which the deletion was made unless doing so would harm 
an interest protected by an applicable exemption. The location of the 
information deleted shall also be indicated on the record, if 
technically feasible.
    (e) Use of record exclusions. (1) In the event that a component 
identifies records that may be subject to exclusion from the 
requirements of the

[[Page 120]]

FOIA pursuant to 5 U.S.C. 552(c), the component must confer with 
Department of Justice, Office of Information Policy (OIP), to obtain 
approval to apply the exclusion.
    (2) Any component invoking an exclusion must maintain an 
administrative record of the process of invocation and approval of 
exclusion by OIP.

[81 FR 86271, Nov. 30, 2016, as amended at 83 FR 48235, Sept. 24, 2018]



Sec.  265.7  Confidential commercial information obtained from submitters.

    (a) Definitions. (1) Confidential commercial information means 
commercial or financial information obtained by the Postal Service from 
a submitter that may be protected from disclosure under Exemption 4 of 
the FOIA, 5 U.S.C. 552(b)(4).
    (2) Submitter means any person or entity, including a corporation, 
State, or foreign government, but not including another Federal 
Government entity, that provides information, either directly or 
indirectly to the Postal Service.
    (b) Designation of confidential commercial information. A submitter 
of confidential commercial information must use good faith efforts to 
designate by appropriate markings, either at the time of submission or 
within a reasonable time thereafter, any portion of its submission that 
it considers to be protected from disclosure under Exemption 4. The 
Postal Service will not determine the validity of any request for 
confidential treatment until a request for disclosure of the information 
is received. These designations shall expire 10 years after the date of 
the submission unless the submitter requests and provides justification 
for a longer designation period.
    (c) When notice to submitters is required. (1) The Postal Service 
shall promptly provide written notice to a submitter of confidential 
commercial information whenever records containing such information are 
requested under the FOIA if, after reviewing the request, the responsive 
records, and any appeal by the requester, the Postal Service determines 
that it may be required to disclose the records, provided:
    (i) The requested information has been designated in good faith by 
the submitter as information considered protected from disclosure under 
Exemption 4; or
    (ii) The Postal Service has a reason to believe that the requested 
information may be protected from disclosure under Exemption 4, but has 
not yet determined whether the information is protected from disclosure 
under that exemption or any other applicable exemption.
    (2) The notice shall either describe the commercial information 
requested or include a copy of the requested records or portions of 
records containing the information. In cases involving a voluminous 
number of submitters, notice may be made by posting or publishing the 
notice in a place or manner reasonably likely to accomplish it.
    (d) Exceptions to submitter notice requirements. The notice 
requirements of this section shall not apply if:
    (1) The Postal Service determines that the information is exempt 
under the FOIA or 39 U.S.C. 410(c);
    (2) The information has been lawfully published or has been 
officially made available to the public;
    (3) Disclosure of the information is required by a statute other 
than the FOIA or by a Postal Service regulation; if disclosure is 
required by a Postal Service regulation and the submitter provided 
written justification for protection of the information under Exemption 
4 at the time of submission or a reasonable time thereafter, advanced 
written notice of the disclosure must be provided to the submitter; or
    (4) The designation made by the submitter under paragraph (b) of 
this section appears obviously frivolous or overly broad, except that, 
in such cases, the component shall give the submitter written notice of 
any final decision to disclose the information and must provide that 
notice within a reasonable number of days prior to a specified 
disclosure date.
    (e) Opportunity to object to disclosure. (1) The Postal Service 
shall specify a reasonable time period within which the submitter must 
respond to the notice referenced above. If a submitter has any 
objections to disclosure, it

[[Page 121]]

should provide the Postal Service a detailed written statement that 
specifies all grounds for withholding the particular information under 
any exemption of the FOIA. In order to rely on Exemption 4 as basis for 
nondisclosure, the submitter must explain why the information 
constitutes a trade secret or commercial or financial information that 
is privileged or confidential. Whenever possible, the 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.
    (2) A submitter who fails to respond within the time period 
specified in the notice shall be considered to have no objection to 
disclosure of the information. Information received by the Postal 
Service after the date of any disclosure decision shall not be 
considered by the Postal Service. Any information provided by a 
submitter under this subpart may itself be subject to disclosure under 
the FOIA. The Postal Service must consider a submitter's objections and 
specific grounds for nondisclosure in deciding whether to disclose the 
requested information.
    (f) Determination that confidential treatment is warranted. If the 
Postal Service determines that confidential treatment is warranted for 
any part of the requested records and that the records will therefore be 
redacted or withheld, it must inform the requester in writing, and must 
advise the requester of the right to appeal. A copy of the letter of 
denial must also be provided to the submitter of the records in any case 
in which the submitter had been notified of the request.
    (g) Notice of intent to disclose. If the Postal Service decides to 
disclose information over the objection of a submitter, the Postal 
Service shall provide the submitter written notice, which shall include:
    (1) A statement of the reasons why each of the submitter's 
disclosure objections was not sustained;
    (2) A description or copy of the information to be disclosed; and
    (3) A specified disclosure date, which shall be a reasonable time 
subsequent to the notice.
    (h) Notice of FOIA lawsuit. Whenever a requester files a lawsuit 
seeking to compel the disclosure of confidential commercial information, 
the component shall promptly notify the submitter. Whenever a submitter 
files a lawsuit to prevent disclosure of confidential commercial 
information, the component shall promptly notify the requester.
    (i) Requester notification. The Postal Service shall notify a 
requester whenever it notifies the submitter of its intent to disclose 
the requested information.



Sec.  265.8  Administrative appeals.

    (a) Requirements for making an appeal. Requesters may appeal adverse 
decisions rendered by the Postal Inspection Service or any Postal 
Service component by mail to the General Counsel, U.S. Postal Service, 
475 L'Enfant Plaza SW., Washington, DC 20260; or by email to 
[email protected]. The requester must make the appeal in writing and 
to be considered timely it must be postmarked, or in the case of 
electronic submissions, transmitted, within 90 calendar days after the 
date of the response; or within a reasonable time if the appeal is from 
a failure of the custodian to act. The General Counsel may, in his or 
her discretion, consider late appeals. 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 or she 
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. A letter of appeal 
should include, as applicable:
    (1) A copy of the request, of any notification of denial or other 
action, and of any other related correspondence;
    (2) The FOIA tracking number assigned to the request;
    (3) A statement of the action, or failure to act, from which the 
appeal is taken;

[[Page 122]]

    (4) A statement identifying the specific redactions to responsive 
records that the requester is challenging;
    (5) A statement of the relief sought; and
    (6) A statement of the reasons why the requester believes the action 
or failure to act is erroneous.
    (b) Adjudication of appeals. (1) The decision of the General Counsel 
or his or her designee constitutes the final decision of the Postal 
Service on the issue being appealed. 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 or her 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 (a)(5) of this 
section. The aggregate number of additional working days utilized, 
however, may not exceed 10 working days.
    (2) An appeal ordinarily will not be adjudicated if the request 
becomes a matter of FOIA litigation.
    (3) On receipt of any appeal, the General Counsel, or his or her 
designee, must take appropriate action to ensure compliance with 
applicable classification rules.
    (c) Decisions on appeals. A decision on an appeal must be made in 
writing. A decision that upholds a component's determination in whole or 
in part will contain a statement that identifies the reasons for the 
affirmance, including any FOIA exemptions applied. The decision will 
provide the requester with notification of the statutory right to file a 
lawsuit and will inform the requester of the mediation services offered 
by the Office of Government Information Services of the National 
Archives and Records Administration as a non-exclusive alternative to 
litigation. If a custodian's decision is remanded or modified on appeal, 
the requester will be notified of that determination in writing. The 
component will further process the request in accordance with that 
appeal determination and respond directly to the requester. 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.
    (d) When appeal is required. Before seeking judicial review of a 
component's adverse determination, a requester generally must first 
submit a timely administrative appeal.
    (e) Appeal procedures for the Office of the Inspector General. The 
appeal procedures for the Office of the Inspector General are described 
in 39 CFR 230.5.



Sec.  265.9  Fees.

    (a) In general. The Postal Service shall charge for processing 
requests under the FOIA in accordance with the provisions of this 
section and with the OMB Guidelines. In order to resolve any fee issues 
that arise under this section, a component may contact a requester for 
additional information. The Postal Service will conduct searches, 
review, and duplication in the most efficient and the least expensive 
manner. The Postal Service ordinarily will collect all applicable fees 
before sending copies of records to a requester. Requesters must pay 
fees by check or money order made payable to ``U.S. Postal Service.''
    (b) Definitions. For purposes of this section:
    (1) Commercial-use requester is a requester who asks for information 
for a use or a purpose that furthers a commercial, trade, or profit 
interest, which can include furthering those interests through 
litigation. The Postal Service's decision to place a requester in the 
commercial use category will be made on a case-by-case basis based on 
the requester's intended use of the information.
    (2) Direct costs are those expenses that the Postal Service incurs 
in searching for and duplicating records in order to respond to a FOIA 
request. In the case of commercial-use requesters, direct costs include 
reviewing and taking all other measures needed to prepare the records 
for disclosure.
    (3) Search is the process of looking for and retrieving records or 
information responsive to a request. Search time includes page-by-page 
or line-by-line

[[Page 123]]

identification of information within records and the reasonable efforts 
expended to locate and retrieve information from electronic records.
    (4) Duplication is reproducing a copy of a record, or of the 
information contained in it, necessary to respond to a FOIA request. 
Copies can take the form of paper, audiovisual materials, or electronic 
records, among others.
    (5) Review is the examination of a record located in response to a 
request in order to determine whether any portion of it is exempt from 
disclosure. Review time includes processing any record for disclosure, 
such as doing all that is necessary to prepare the record for 
disclosure, including the process of redacting the record and marking 
the appropriate exemptions. Review costs are properly charged even if a 
record ultimately is not disclosed. Review time also includes time spent 
both obtaining and considering any formal objection to disclosure made 
by a confidential commercial information submitter under Sec.  265.6, 
but it does not include time spent resolving general legal or policy 
issues regarding the application of exemptions.
    (6) Educational institution is any school that operates a program of 
scholarly research. A requester in this fee category must show that the 
request is authorized by, and is made under the auspices of, an 
educational institution and that the records are not sought for a 
commercial use, but rather are sought to further scholarly research. To 
fall within this fee category, the request must serve the scholarly 
research goals of the institution rather than an individual research 
goal.
    (7) Noncommercial scientific institution is an institution that is 
not operated on a ``commercial'' basis, as defined in paragraph (b)(1) 
of this section and that is operated solely for the purpose of 
conducting scientific research the results of which are not intended to 
promote any particular product or industry. A requester in this category 
must show that the request is authorized by and is made under the 
auspices of a qualifying institution and that the records are sought to 
further scientific research and are not for a commercial use.
    (8) Representative of the news media is 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 include 
television or radio stations that broadcast ``news'' to the public at 
large and publishers of periodicals that disseminate ``news'' and make 
their products available through a variety of means to the general 
public, including news organizations that disseminate solely on the 
Internet. A request for records supporting the news-dissemination 
function of the requester shall not be considered to be for a commercial 
use. ``Freelance'' journalists who demonstrate a solid basis for 
expecting publication through a news media entity shall be considered as 
a representative of the news media. A publishing contract would provide 
the clearest evidence that publication is expected; however, the Postal 
Service shall also consider a requester's past publication record in 
making this determination.
    (c) Charging fees. In responding to FOIA requests, the Postal 
Service shall charge the following fees unless a waiver or reduction of 
fees has been granted under paragraph (j) of this section. Because the 
fee amounts provided below already account for the direct costs 
associated with a given fee type, components should not add any 
additional costs to charges calculated under this section.
    (1) Search. (i) Requests made by educational institutions, 
noncommercial scientific institutions, or representatives of the news 
media are not subject to search fees. Search fees shall be charged for 
all other requesters, subject to the restrictions of paragraph (d) of 
this section. The Postal Service may charge for time spent searching 
even if no responsive records are located or if it determines that the 
records are entirely exempt from disclosure.
    (ii) For each half hour spent by personnel searching for requested 
records, including electronic searches that do

[[Page 124]]

not require new programming, the fee shall be $21.00.
    (iii) Requesters shall be charged the direct costs associated with 
conducting any search that requires the creation of a new computer 
program to locate the requested records. Requesters shall be notified of 
the costs associated with creating such a program and must agree to pay 
the associated costs before the costs may be incurred.
    (iv) For requests that require the retrieval of records stored at a 
Federal records center operated by the National Archives and Records 
Administration (NARA), or other storage facility, additional costs may 
be charged for their retrieval.
    (2) Duplication. Duplication fees shall be charged to all 
requesters, subject to the restrictions of paragraph (d) of this 
section. A component shall honor a requester's preference for receiving 
a record in a particular form or format where it is readily reproducible 
by the component in the form or format requested. Where photocopies are 
supplied, the component shall provide one copy per request at a cost of 
fifteen cents per page. For copies of records produced on tapes, disks, 
or other media, components shall charge the direct costs of producing 
the copy, including operator time. Where paper documents must be scanned 
in order to comply with a requester's preference to receive the records 
in an electronic format, the requester shall pay the direct costs 
associated with scanning those materials. For other forms of 
duplication, components shall charge the direct costs.
    (3) Review. Commercial-use requesters shall be charged review fees 
at the rate of $21.00 for each half hour by personnel reviewing the 
records. Review fees shall be assessed in connection with the initial 
review of the record, i.e., the review conducted by a component to 
determine whether an exemption applies to a particular record or portion 
of a record. No charge will be made for review at the administrative 
appeal stage of exemptions applied at the initial review stage. However, 
if a particular exemption is deemed to no longer apply, any costs 
associated with a component's re-review of the records in order to 
consider the use of other exemptions may be assessed as review fees.
    (d) Restrictions on charging fees. (1) No search fees will be 
charged for requests by educational institutions (unless the records are 
sought for a commercial use), noncommercial scientific institutions, or 
representatives of the news media.
    (2)(i) If a component fails to comply with the time limits in which 
to respond to a request, it may not charge search fees, or, in the 
instances of requests from requesters described in paragraph (d)(1) of 
this section, may not charge duplication fees.
    (ii) If a component has determined that unusual circumstances as 
defined by the FOIA apply and the component provided timely written 
notice to the requester in accordance with the FOIA, the component has 
an additional 10 days to respond to the request.
    (iii) If a component has determined that unusual circumstances as 
defined by the FOIA apply and more than 5,000 pages are necessary to 
respond to the request, the component may charge search fees, or, in the 
case of requesters described in paragraph (d)(1) of this section, may 
charge duplication fees if the following steps are taken:
    (A) The component provides timely written notice of unusual 
circumstances to the requester; and
    (B) The component discussed or made three good faith attempts to 
discuss via mail, email, or telephone how the requester could 
effectively limit the scope of the request in accordance with 5 U.S.C. 
552(a)(6)(B)(ii).
    (iv) If a court has determined that exceptional circumstances exist, 
a failure to comply with the time limits shall be excused for the length 
of time provided by the court order.
    (3) No search or review fees will be charged for a quarter-hour 
period unless more than half of that period is required for search or 
review.
    (4) Except for requesters seeking records for a commercial use, 
components shall provide without charge:
    (i) The first 100 pages of duplication (or the cost equivalent for 
other media); and
    (ii) The first two hours of search.
    (5) When, after first deducting the 100 free pages (or its cost 
equivalent) and

[[Page 125]]

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

[[Page 126]]

fee within 30 calendar days of the billing date, a component may require 
that the requester pay the full amount due on that prior request, and 
the component may require that the requester make an advance payment of 
the full amount of any anticipated fee before the component begins to 
process a new request or continues to process a pending request or any 
pending appeal. Where a component has a reasonable basis to believe that 
a requester has misrepresented the requester's identity in order to 
avoid paying outstanding fees, it may require that the requester provide 
proof of identity.
    (4) In cases in which a component requires advance payment, the 
request shall not be considered received and further work will not be 
completed until the required payment is received. If the requester does 
not pay the advance payment within 30 calendar days after the date of 
the component's fee determination, the request will be administratively 
closed.
    (i) Other statutes specifically providing for fees. The fee schedule 
of this section does not apply to fees charged under any statute that 
specifically requires the Postal Service to set and collect fees for 
particular types of records. In instances where records responsive to a 
request are subject to a statutorily-based fee schedule program, the 
component shall inform the requester of the contact information for that 
program.
    (j) Requirements for waiver or reduction of fees. (1) Records 
responsive to a request shall be furnished without charge or at a 
reduced rate below the rate established under paragraph (c) of this 
section, where a component determines, based on all available 
information, that the requester has demonstrated that:
    (i) Disclosure of the requested information is in the public 
interest because it is likely to contribute significantly to public 
understanding of the operations or activities of the Postal Service, and
    (ii) Disclosure of the information is not primarily in the 
commercial interest of the requester.
    (2) In deciding whether disclosure of the requested information is 
in the public interest because it is likely to contribute significantly 
to public understanding of operations or activities of the Postal 
Service, components shall consider all four of the following factors:
    (i) The subject of the request must concern identifiable operations 
or activities of the Postal Service, with a connection that is direct 
and clear, not remote or attenuated.
    (ii) Disclosure of the requested records must be meaningfully 
informative about government operations or activities in order to be 
``likely to contribute'' to an increased public understanding of those 
operations or activities. The disclosure of information that already is 
in the public domain, in either the same or a substantially identical 
form, would not contribute to such understanding where nothing new would 
be added to the public's understanding.
    (iii) The disclosure must contribute to the understanding of a 
reasonably broad audience of persons interested in the subject, as 
opposed to the individual understanding of the requester. A requester's 
expertise in the subject area as well as the requester's ability and 
intention to effectively convey information to the public shall be 
considered. A representative of the news media does not automatically 
satisfy this consideration.
    (iv) The public's understanding of the subject in question must be 
enhanced by the disclosure to a significant extent.
    (3) To determine whether disclosure of the requested information is 
primarily in the commercial interest of the requester, components shall 
consider the following factors:
    (i) Whether there is a commercial interest, as defined in paragraph 
(b)(1) of this section, that would be furthered by the requested 
disclosure. If so, then the requester will be given an opportunity to 
provide explanatory information regarding this consideration.
    (ii) Whether any identified commercial interest of the requester in 
disclosure outweighs the public interest, as defined in paragraph 
(j)(1)(i) of this section, in disclosure. If so, then the disclosure is 
primarily in the commercial interest of the requester. The component 
ordinarily shall presume that if a news media requester has satisfied 
the

[[Page 127]]

public interest standard, the public interest is the primary interest 
served by the requested disclosure. Disclosure to data brokers or others 
who merely compile and market government information for direct economic 
return shall not be presumed to primarily serve the public interest.
    (4) Where only some of the records to be released satisfy the 
requirements for a waiver of fees, a waiver shall be granted for those 
records.
    (5) Requests for a waiver or reduction of fees should be made when 
the request is first submitted to the component and should address the 
criteria referenced above. A requester may submit a fee waiver request 
at a later time so long as the underlying record request is pending or 
on administrative appeal. When a requester who has committed to pay fees 
subsequently asks for a waiver of those fees and that waiver is denied, 
the requester shall be required to pay any costs incurred up to the date 
the fee waiver request was received.

[81 FR 86271, Nov. 30, 2016, as amended at 82 FR 2896, Jan. 10, 2017; 82 
FR 12921, Mar. 8, 2017; 83 FR 48235, Sept. 24, 2018; 84 FR 56385, Oct. 
22, 2019]



   Subpart B_Production or Disclosure in Federal and State Proceedings



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 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,

[[Page 128]]

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]



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 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.  265.13).
    (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.

[[Page 129]]

    (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, 265.14; 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 266.10.
    (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 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

[[Page 130]]

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.
    (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

[[Page 131]]

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.



Sec.  265.13  Compliance with subpoenas, summonses, and court orders
by postal employees within the Postal 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 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 that performs the functions specified in part 233 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.

[[Page 132]]

    (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.  265.14(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 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.

[[Page 133]]

    (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 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 20260-2101, 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

[[Page 134]]

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 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

[[Page 135]]

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 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 552.
    (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.



                    Subpart C_Availability of Records



Sec.  265.14  Rules concerning specific categories of records.

    (a) Records available to the public on request. Except as otherwise 
proscribed by law or regulations, including but not limited to 
paragraphs (b) and (c) of this section, Sec.  265.2 and Sec.  265.11-
Sec.  265.13, Postal Service records will be made available to any 
person in accordance with the procedures provided in Sec.  265.3.
    (b) Information not subject to mandatory public disclosure. Certain 
types of information are exempt from mandatory disclosure under 
exemptions contained in the Freedom of Information Act and in 39 U.S.C. 
410(c). The Postal Service will exercise its discretion, in accordance 
with the policy stated in Sec.  265.1(c), 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:
    (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. 
Information is of a commercial nature if it relates to commerce, trade, 
profit, or the Postal Service's ability to conduct itself in a 
businesslike manner.
    (i) When assessing whether information is commercial in nature, the 
Postal Service will consider whether the information:

[[Page 136]]

    (A) Relates to products or services subject to economic competition, 
including, but not limited to, ``competitive'' products or services as 
defined in 39 U.S.C. 3631, an inbound international service, or an 
outbound international service for which rates or service features are 
treated as nonpublic;
    (B) Relates to the Postal Service's activities that are analogous to 
a private business in the marketplace;
    (C) Would be of potential benefit to individuals or entities in 
economic competition with the Postal Service, its customers, suppliers, 
affiliates, or business partners or could be used to cause harm to a 
commercial interest of the Postal Service, its customers, suppliers, 
affiliates, or business partners;
    (D) Is proprietary or includes conditions or protections on 
distribution and disclosure, is subject to a nondisclosure agreement, or 
a third party has otherwise expressed an interest in protecting such 
information from disclosure;
    (E) Is the result of negotiations, agreements, contracts or business 
deals between the Postal Service and a business entity; or
    (F) Relates primarily to the Postal Service's governmental functions 
or its activities as a provider of basic public services.
    (ii) No one factor is determinative. Rather, each factor should be 
considered in conjunction with the other factors and the overall 
character of the particular information. Some examples of commercial 
information include, but are not limited to:
    (A) Information related to methods of handling valuable registered 
mail.
    (B) Records of money orders except as provided in section 509.3 of 
the Domestic Mail Manual.
    (C) Technical information concerning postage meters and prototypes 
submitted for Postal Service approval prior to leasing to mailers.
    (D) Quantitative data, whether historical or current, reflecting the 
number of postage meters or PC postage accounts.
    (E) Reports of market surveys conducted by or under contract on 
behalf of the Postal Service.
    (F) Records indicating carrier or delivery lines of travel.
    (G) Information which, if publicly disclosed, could materially 
increase procurement costs.
    (H) Information which, if publicly disclosed, could compromise 
testing or examination materials.
    (I) Service performance data on competitive services.
    (J) Facility specific volume, revenue, and cost information.
    (K) Country-specific international mail volume and revenue data.
    (L) Non-public international volume, revenue and cost data.
    (M) Pricing and negotiated terms in bilateral arrangements with 
foreign postal operators.
    (N) Information identifying USPS business customers.
    (O) Financial information in or the identities of parties to 
Negotiated Service Agreements or Package Incentive Agreements.
    (P) Negotiated terms in contracts.
    (Q) Negotiated terms in leases.
    (R) Geolocation data.
    (S) Proprietary algorithms or software created by the Postal 
Service.
    (T) Sales performance goals, standards, or requirements.
    (U) Technical information or specifications concerning mail 
processing equipment.
    (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

[[Page 137]]

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.
    (2) Whenever a request is made which involves access to records that 
could reasonably be expected to interfere with law enforcement 
proceedings, 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 specifically identified 
Postal Service 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 business or 
organization that has filed a permanent change of address order (by 
submitting PS Form 3575, a hand written order, or an electronically 
communicated order) will be furnished to any person upon request. If a 
domestic violence shelter has filed a letter on official letterhead from 
a domestic violence coalition stating:
    (i) That such domestic violence coalition meets the requirements of 
42 U.S.C. 10410; and
    (ii) That the organization filing the change of address is a 
domestic violence shelter, the new address shall not be released except 
pursuant to applicable routine uses. The new address of any individual 
or family that has filed a permanent or temporary change of address 
order 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 paragraph (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 on behalf of a holder will be furnished to 
any person upon request. For the name and address of a postage meter 
license holder, see paragraph (d)(3) of this section. (Lists of permit

[[Page 138]]

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 Sec.  
265.9(b), 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 those circumstances stated in paragraphs (d)(5)(i) through (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 (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 specifically identified 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)(A) 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,\1\ upon receipt of written information that 
specifically includes all of the following:
---------------------------------------------------------------------------

    \1\ The term pro se means that a party is not represented by an 
attorney but by himself or herself.
---------------------------------------------------------------------------

    (1) 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;
    (2) 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;
    (3) The names of all known parties to the litigation;
    (4) The court in which the case has been or will be commenced;
    (5) The docket or other identifying number, if one has been issued; 
and
    (6) The capacity in which the boxholder is to be served, e.g., 
defendant or witness.
    (B) 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), (iii), or (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.

[[Page 139]]

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.
    (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 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) 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 and addresses (past or present) of postal patrons or other persons 
in response to a request under this part except that, upon a request in 
accordance with the procedures of Sec.  265.3, the Postal Service will, 
to the extent required by law, provide a listing of postal employees 
working at a particular postal facility.
    (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 18 U.S.C. 1905, are not 
subject to disclosure pursuant to this part.

[[Page 140]]

    (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 141]]

[GRAPHIC] [TIFF OMITTED] TR06MR18.000


[[Page 142]]


[GRAPHIC] [TIFF OMITTED] TR30NO16.003


[81 FR 86271, Nov. 30, 2016, as amended at 82 FR 12921, Mar. 8, 2017; 82 
FR 32767, July 18, 2017; 83 FR 9433, Mar. 6, 2018; 83 FR 48236, Sept. 
24, 2018]



PART 266_PRIVACY OF INFORMATION--Table of Contents



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

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

    Source: 82 FR 47116, Oct. 11, 2017, unless otherwise noted.

[[Page 143]]



Sec.  266.1  Purpose and scope.

    This part contains the rules that the Postal Service follows under 
the Privacy Act of 1974, 5 U.S.C. 552a. These rules should be read 
together with the Privacy Act, which provides additional information 
about records maintained on individuals. The rules in this part apply to 
all records in systems of records maintained by the Postal Service that 
are retrieved by an individual's name or personal identifier. They 
describe the procedures by which individuals may request notification of 
or access to records about themselves, request amendment of those 
records, and request an accounting of disclosures of those records by 
the Postal Service. In addition, the Postal Service processes all 
Privacy Act requests for access to records under the Freedom of 
Information Act (FOIA), 5 U.S.C. 552, following the rules contained in 
39 CFR 265, as necessary, which provides the requester with the greatest 
access to his or her personal records.



Sec.  266.2  Responsibility.

    (a) Privacy and Records Management Office. The Privacy and Records 
Management Office will ensure Postal Service-wide compliance with this 
part.
    (b) Records Custodian. Records Custodians are responsible for 
adherence to this part within their respective units, and in particular 
for affording individuals their rights to inspect and obtain copies of 
records concerning them.
    (c) Corporate Information Security Office. This office is 
responsible for ensuring compliance with information security policies, 
including protection of information resources containing customer, 
employee, or other individuals' information; developing policy for 
safeguarding and disposing of electronic records (including emails) that 
are maintained in information systems (including those that are subject 
to legal holds); serving as the central contact for information security 
issues; preventing and engaging in some investigation of cybercrime and 
misuse of Postal Service information technology resources; and providing 
security consultation as requested.
    (d) Data Integrity Board--(1) Responsibilities. The Data Integrity 
Board oversees Postal Service computer matching activities. The Board's 
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 
advice functions relating to record 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 and Records 
Management 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) General Counsel and Executive Vice President (Chairman).
    (ii) Chief Postal Inspector.
    (iii) Inspector General.
    (iv) Chief Human Resources Officer and Executive Vice President.
    (v) Chief Privacy and Records Management Officer.



Sec.  266.3  Collection and disclosure of information about individuals.

    (a) This section governs the collection of information about 
individuals, as defined in the Privacy Act of 1974, throughout the 
United States Postal Service and across its 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 
authorized by statute or Executive Order.
    (ii) Collect information, to the greatest extent practicable, 
directly from

[[Page 144]]

the subject individual when such information may result in adverse 
determinations about an individual's rights, benefits, or privileges.
    (iii) Inform any individuals who have been asked to furnish 
information about themselves, 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 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 disfavor any individual who fails or 
refuses to provide personal information unless that information is 
required or necessary for the conduct of the system or program in which 
the individual desires to participate.
    (3) The Postal Service will maintain no record describing how an 
individual exercises rights guaranteed by the First Amendment unless 
expressly authorized by statute or by the individual about whom the 
record is maintained or unless pertinent to and within the scope of an 
authorized law enforcement activity.
    (4) The Postal Service will not require an individual to furnish a 
Social Security number or deny a right, privilege or benefit because of 
that individual's refusal to furnish the number unless required by 
Federal law.
    (b) Disclosures--(1) Limitations. The Postal Service will not 
disclose information about an individual unless reasonable efforts have 
been made to assure that the information is accurate, complete, timely 
and relevant to the extent provided by the Privacy Act and unless:
    (i) The individual to whom the record pertains has requested in 
writing, or with the prior written consent of the individual to whom the 
record pertains, that the information be disclosed, unless the 
individual would not be entitled to access to the record under the 
Postal Reorganization Act, the Privacy Act, or other law;
    (ii) The requester has obtained the prior written consent of the 
individual to whom the record pertains, unless the individual would not 
be entitled to access to the record under the Postal Reorganization Act, 
the Privacy Act, or other law; or
    (iii) The disclosure is in accordance with paragraph (b)(2) of this 
section.
    (2) Conditions of Disclosure. Disclosure of personal information 
maintained in a system of records 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 or 
employees of a Postal Service contractor who have a need for such 
information in the performance of their Postal Service duties;
    (iii) For a routine use as contained in the system of records 
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 of the U.S. Code;
    (vi) To the National Archives and Records Administration 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 Archivist 
of the United States or an authorized 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;

[[Page 145]]

    (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 that officer's authorized 
representatives in the course of the performance of the duties of the 
Government Accountability Office; or
    (xi) Pursuant to the order of a court of competent jurisdiction. A 
court of competent jurisdiction is defined in Article III of the United 
States Constitution including, but not limited to any United States 
District Court, any United States or Federal Court of Appeals, the 
United States Court of Federal Claims, and the United States Supreme 
Court. For purposes of this section, state courts are not courts of 
competent jurisdiction.
    (3) Under 39 U.S.C. 412(a), the Postal Service shall not make a 
mailing or other list of names or addresses (past or present) of postal 
patrons or other persons available to the public, unless such action is 
authorized by law. Consistent with this provision, the Postal Service 
may make such a list available as follows:
    (i) In accordance with 39 U.S.C. 412(b), to the Secretary of 
Commerce for use by the Bureau of the Census;
    (ii) As required by the terms of a legally enforceable contract 
entered into by the Postal Service under its authority contained in 39 
U.S.C. 401(3) and when subject to a valid non-disclosure agreement. The 
purpose of the contract must comply with 5 U.S.C. 552a(n), which 
prohibits the sale or rental of an individual's name and address;
    (iii) As required by the terms of a legally enforceable interagency 
agreement entered into by the Postal Service under its authority 
contained in 39 U.S.C. 411 and when subject to a valid non-disclosure 
agreement. The purpose of the interagency agreement must comply with 5 
U.S.C. 552a(n), which prohibits the sale or rental of an individual's 
name and address;
    (iv) In accordance with 5 U.S.C. 552a(b), the Postal Service may 
disclose a list of names and addresses of individuals pursuant to a 
written request by, or with the prior written consent of, each 
individual whose name and address is contained in such list, provided 
that such names and addresses are derived from records maintained by the 
Postal Service in a system of records as defined by 5 U.S.C. 552a(a); or
    (v) As otherwise expressly authorized by federal law.
    (4) Employee credit references. A credit bureau or other commercial 
firm from which a current or former postal employee is seeking credit 
may be given the following past or present information upon request: 
Grade, duty station, dates of employment, job title, and salary. If 
additional information is desired, the requester must submit the written 
consent of the employee and an accounting of the disclosure must be 
kept.
    (5) Employment status. Upon request, prospective employers of a 
current or 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 Sec.  262.5(c) and (d), but only after a determination by the 
Data Integrity Board that the procedural requirements of the Privacy 
Act, the 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 Chief Privacy and Records Management 
Officer determines the applicability of a particular routine use and the 
necessity for adoption of a new routine use.
    (ii) Computer matching agreement. The participants in a computer 
matching program must enter into a written

[[Page 146]]

agreement specifying the terms under which the matching program is to be 
conducted (see Sec.  266.9). The Privacy and Records Management Office 
may require that other matching activities be conducted in accordance 
with a written agreement.
    (iii) 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.  266.9). Other matching 
activities may, at the discretion of the Privacy and Records Management 
Office, be submitted for Board approval.
    (c) Amendment or dispute disclosure. If a personal record contains 
any amendments or notations of dispute relating to the accuracy, 
timeliness or relevance of the record, any person or other agency to 
which the record has been or is to be disclosed must be informed of the 
amendments or notations within 30 days of the modification.
    (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, to Postal Service 
employees or employees of Postal Service contractors in the performance 
of their Postal Service duties, when the record is publicly available, 
or as required by the Freedom of Information Act (5 U.S.C. 552).
    (2) The accounting will be maintained for at least 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 
paragraph (b)(2)(viii) of this section relating to law enforcement 
activities.

[82 FR 47116, Oct. 11, 2017, as amended at 83 FR 3085, Jan. 23, 2018; 83 
FR 48237, Sept. 24, 2018]



Sec.  266.4  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 that individual, unless 
exempt from notification under the Privacy Act or other law. See Sec.  
266.5 for the suggested form of a request.
    (b) Notification of disclosure. The Postal Service will 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.  266.5(c)(1) relating to 
amendment of records upon request.
    (d) Notification of new use. Any new intended use of personal 
information maintained by the Postal Service will be published in the 
Federal Register 30 days before such use becomes operational. Public 
views may then be submitted to the Privacy and Records Management 
Office.
    (e) Notification of exemptions. The Postal Service will publish in 
the Federal Register its intent to exempt any system of records and will 
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 to the 
Office of Management and Budget (OMB) 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, and published at least 30 days prior to:
    (1) The initiation of any matching activity under a new or 
substantially revised program; or
    (2) The expiration of the existing matching agreement in the case of 
a renewal of a continuing program.



Sec.  266.5  Procedures for requesting notification, inspection, 
copying, or amendment of records.

    The purpose of this section is to provide procedures by which an 
individual may request notification of, access to, or amendment of 
personal information

[[Page 147]]

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 in accordance with 
the procedures described in the applicable system of records notice, or 
to the Privacy and Records Management Office, U.S. Postal Service, 475 
L'Enfant Plaza SW., Washington, DC 20260-1101. Requests to the U.S. 
Postal Inspection Service should be submitted to the Chief Postal 
Inspector, U.S. Postal Inspection Service, 475 L'Enfant Plaza SW., 
Washington, DC 20260. Requests to the Office of Inspector General should 
be submitted to the Freedom of Information Act/Privacy Officer, U.S. 
Postal Service Office of Inspector General, 1735 North Lynn Street, 
Arlington, VA 22209-2020. Inquiries should be clearly marked, ``Privacy 
Act Request.'' Any inquiry concerning a specific system of records 
should include the information contained under ``Notification 
Procedure'' for that system as published in the Federal Register or 
within USPS Handbook AS-353, Guide to Privacy, the Freedom of 
Information Act, and Records Management, Appendix. If the information 
supplied is insufficient to locate or identify the record, if any, the 
requester will be notified promptly and, if possible, informed of 
additional information required. Amendment requests that contest the 
relevance, accuracy, timeliness or completeness of the record should 
include a statement of the amendment requested.
    (2) Period for response by custodian. Upon receipt of an inquiry, 
the custodian will respond with an acknowledgement of receipt within 10 
days.
    (b) Compliance with request for access--(1) Notification to 
requester. When a requested record has been identified and is to be made 
available to the requester for inspection and copying, the custodian 
must ensure that the record is made available promptly and must 
immediately notify the requester where and when the record will be 
available for inspection and 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 that are in the 
custodian's possession. If the requested record has been identified and 
a copy is to be provided to the requester, the copy must be promptly 
provided.
    (2) Identification of requester. The requester must present 
identification sufficient to satisfy the custodian as to the requester's 
identity prior to record review or other access. As appropriate under 
the circumstances of the access request, the requester may be required 
to comply with one of the following identification verification methods:
    (i) Provision of a completed Certification of Identity if the 
records pertain to the requester available at http://about.usps.com/ 
who-we-are/foia/ welcome.htm;
    (ii) Provision of official photo identification if the records 
pertain to the requester, examples of which are a valid driver's 
license, unexpired passport, and unexpired federal government-issued 
employee identification card; or
    (iii) Provision of a completed Privacy Waiver if the records pertain 
to another individual available at http://about.usps.com/ who-we-are/
foia/welcome.htm.
    (3) Responsibilities of requester. The requester assumes the 
following responsibilities regarding the review of official personal 
records:
    (i) The requester must agree not to leave Postal Service premises 
with official records unless specifically given a copy for that purpose 
by the custodian or the custodian's representative.
    (ii) At the conclusion of the inspection, the requester must sign a 
statement indicating the requester has reviewed specific records or 
categories of records. If the requester indicates at the beginning of 
the inspection that he or she will not sign the statement, records may 
still be reviewed, and the time and date of review will be noted in the 
file.
    (iii) The requester may be accompanied by a person of the 
requester's choice to aid in the inspection of information and, if 
applicable, the manual recording or copying of the records if

[[Page 148]]

the requester submits a signed statement authorizing the person to do 
so, and discussion of the records in the accompanying person's presence.
    (4) Special restrictions for medical and psychological records. A 
medical or psychological record must 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 
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. In such cases, an 
accounting of the disclosure must be kept.
    (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 
specifically addressed in paragraph (b)(4) of this section and Sec.  
266.8.
    (6) Response when compliance is not possible. A reply denying a 
written request to review or otherwise access a record must be in 
writing, signed by the custodian or other appropriate official and must 
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 must include a statement regarding the 
determining factors of denial, and the right to appeal the denial to the 
General Counsel.
    (c) Compliance with notification request. The custodian must 
promptly notify a requester if a record has been located in response to 
a request for notification as to whether a specific system of records 
contains a record pertaining to the requester, unless exempt from 
notification.
    (d) Compliance with request for amendment. The custodian must:
    (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 30 working days after receipt of a request to 
amend, notify the requester of a determination not to amend, the reason 
for the refusal, 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.
    (e) Availability of assistance in exercising rights. The Privacy and 
Records Management Office is available to provide an individual with 
assistance in exercising rights pursuant to this part.



Sec.  266.6  Appeal procedure.

    (a) Appeal procedure. (1) If a request for notification of or 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 may appeal to the General Counsel, U.S. Postal Service, 475 
L'Enfant Plaza SW., Washington, DC 20260-1101.
    (2) The requester must submit an appeal in writing within 90 days of 
the date of denial, or within 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 to which the requester 
sought notification, access, or amendment;
    (ii) A statement of the Postal Service action or failure to act, and 
of the relief sought; and
    (iii) A copy of the request, of the notification of denial, and of 
any other related correspondence, if any.
    (3) Any record found on appeal to be incomplete, inaccurate, not 
relevant, or not timely, must be appropriately amended within 30 working 
days of the date of such findings.
    (4) The decision of the General Counsel constitutes the final 
decision of the Postal Service on the right of the requester to be 
notified of; inspect, copy, or otherwise have access to; or change or 
update a record. The decision on the appeal must be in writing and, in 
the event of a denial, must 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 must be maintained by the 
General Counsel.

[[Page 149]]

    (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.



Sec.  266.7  Schedule of fees.

    (a) Policy. The purpose of this section is to establish fair and 
equitable fees to 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 must be furnished without charge. See paragraph (c) of this 
section for fee limitations.
    (2) The Postal Service may at its discretion make user-paid 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; a fee of $0.15 per page is charged for each copy of each 
duplicate page without regard to whether the requester is eligible for 
free copies pursuant to Sec.  266.7(b)(1).
    (c) Limitations. No fee will be charged to an individual for the 
process of retrieving, reviewing, or amending a record pertaining to 
that individual.
    (d) Reimbursement. 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 set forth at Sec.  265.9.



Sec.  266.8  Exemptions.

    (a) The Postal Reorganization Act, 39 U.S.C. 410(c), provides that 
certain categories of information are exempt from disclosure under the 
Privacy Act. In addition, the Privacy Act, 5 U.S.C. 552a(j) and (k), 
authorizes 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 summarizes the 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, 5 U.S.C. 552a(j) and (k). 
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 of 5 U.S.C. 552a for which an 
exemption is claimed in the systems discussed in this section. (i) 
Subsection (c)(3) of 5 U.S.C. 552a requires an agency to make available 
to the individual named in the records an accounting of each disclosure 
of records at the individual's request.
    (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

[[Page 150]]

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 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) Subsections (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 (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 apply the requirements of 
5 U.S.C. 552a to a contractor operating a system of records to 
accomplish an agency function.
    (2) Pursuant to 5 U.S.C. 552a(j)(2), Postal Service record systems; 
Inspection Service Investigative File System, USPS 700.000; Mail Cover 
Program Records, USPS 700.100; 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 make them 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; or
    (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 (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

[[Page 151]]

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 
Inspector General, Postal Inspection Service, and 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 (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 these systems are 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 will remain 
applicable to it (subsection (m)).
    (3) Pursuant to 5 U.S.C. 552a(k)(2), Postal Service record systems 
Labor Relations Records, USPS 200.000; Employee Inquiry, Complaint and 
Investigative Records, USPS 100.900; 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) 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 the 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.
    (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 of 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

[[Page 152]]

application of the relevance and necessity requirements of subsection 
(e)(1) 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 5 U.S.C. 552a(k)(5), Postal Service record systems 
Recruiting, Examining, and Placement Records, USPS 100.100; 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) 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 5 U.S.C. 552a(k)(6), Postal Service record systems 
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 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 these systems are 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.



Sec.  266.9  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

[[Page 153]]

non-postal records must submit its proposal to the Postal Service 
Privacy and Records Management Office. Computer matching programs as 
defined in Sec.  262.5(c) must be conducted in accordance with the 
Privacy Act, as amended by the Computer Matching and Privacy Protection 
Act of 1988. 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 Privacy and Records Management 
Office. See Sec.  266.3(b)(6).
    (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 
Privacy and Records Management Office through: Counsel, Inspection 
Service, U.S. Postal Service, 475 L'Enfant Plaza SW., Washington, DC 
20260. All other matching proposals, whether from postal organizations 
or other government agencies, must be mailed directly to: Privacy and 
Records Management Office, U.S. Postal Service, 475 L'Enfant Plaza SW., 
Washington, DC 20260-1101.
    (c) Lead time. Proposals must be submitted to the Postal Service 
Privacy and Records Management Office at least three 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 Privacy and Records 
Management 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;
    (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 unanimously approved the terms of 
the matching agreement. Agreements are executed by the Chairman of the 
Board. 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, within 30 days

[[Page 154]]

following the Board's written disapproval.
    (3) Effective dates. The agreement will become effective in 
accordance with the date in the matching agreement and as provided to 
Congress and the Office of Management and Budget and published in the 
Federal Register. 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 three 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.



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.
    (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,

[[Page 155]]

    (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;
    (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

[[Page 156]]

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.
    (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.

[[Page 157]]



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 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.

[[Page 158]]


    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:
    (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)--

[[Page 159]]

    (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. As adjusted under Public Law 
114-74, the penalty is $12,537 per claim. As adjusted under Public Law 
114-74, the penalty is $13,508 per 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 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

[[Page 160]]

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; 87 FR 1676, Jan. 12, 2022; 88 FR 1515, Jan. 
11, 2023]



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, 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

[[Page 161]]

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 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.

[[Page 162]]



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.



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

[[Page 163]]

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 164]]



        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 165]]

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 166]]

    (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 167]]

    (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 168]]

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 169]]

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 170]]

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 171]]

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 172]]

    (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 173]]

    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 174]]

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 175]]



                         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 176]]

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)(1) Except as provided in this paragraph, employees must not 
drink beer, wine, or other intoxicating beverages while on duty; begin 
work or return to duty intoxicated; or drink intoxicating beverages in a 
public place while in uniform. Employees found to be violating this 
policy may be subject to disciplinary action.
    (2) A nonbargaining employee may consume beer or wine at an Officer 
Approved Event. An Officer Approved Event means: A meeting of Postal 
Service employees convened by management, such as a working meal, an 
employee recognition event, or an employee appreciation event; or an 
event whose primary purpose is to interact with external individuals or 
entities, such as an industry conference, a sales meeting, or a supplier 
meeting; that in all cases is either attended by an Officer of the 
Postal Service who personally decides that the consumption of beer and 
wine by employees is appropriate, or with respect to which an Officer of 
the Postal Service has granted specific, written, and advance approval 
for the consumption of beer and wine by employees.
    (3) A nonbargaining employee may consume beer, wine, or other 
intoxicating beverages at a Postmaster General Approved Event. A 
Postmaster General Approved Event means any Postal Service-related event 
with respect to which the Postmaster General personally approves the 
consumption of beer, wine, or other intoxicating beverages.
    (4) No employee may become intoxicated while at an Officer Approved 
Event or a Postmaster General Approved Event. Except in connection with 
an Officer Approved Event or a Postmaster General Approved Event 
occurring at a Postal Service facility or premises, no employee shall 
have or bring any container of beer or wine into any Postal Service 
facility or premises, whether the container has been opened or not. 
Intoxicating beverages other than beer and wine may never be brought 
into any Postal Service facility or premises under any circumstances.
    (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; 82 FR 33807, July 21, 2017]



    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.

[[Page 177]]

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 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

[[Page 178]]

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]



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).

[[Page 179]]

    (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.
    (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.


[[Page 180]]


    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 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

[[Page 181]]

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 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

[[Page 182]]

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 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.



PART 492_ADMINISTRATIVE WAGE GARNISHMENT FROM NON-POSTAL SOURCES-
-Table of Contents



    Authority: 31 U.S.C. 3720D; 39 U.S.C. 204, 401, 2601; 31 CFR 285.11.

    Source: 79 FR 46183, Aug. 7, 2014, unless otherwise noted.

[[Page 183]]



Sec.  492.1  Collection of delinquent non-tax debts by administrative
wage garnishment.

    (a) This section provides procedures for the Postal Service to 
collect money from a debtor's disposable pay by means of administrative 
wage garnishment, in accordance with 31 U.S.C. 3720D and 31 CFR 285.11, 
to satisfy delinquent nontax debt owed to the United States.
    (b) The Postal Service authorizes the U. S. Department of the 
Treasury Bureau of the Fiscal Service or its successor entity to collect 
debts by administrative wage garnishment, and conduct administrative 
wage garnishment hearings, on behalf of the Postal Service in accordance 
with the requirements of 31 U.S.C. 3720D and the procedures contained in 
31 CFR 285.11.
    (c) The Postal Service adopts the provisions of 31 CFR 285.11 in 
their entirety. The provisions of 31 CFR 285.11 should therefore be read 
as though modified to effectuate the application of that regulation to 
administrative wage garnishment proceedings conducted by, or on behalf 
of, the U.S. Postal Service.

[[Page 184]]



                      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.
501.20 Discontinued Postage Evidencing Indicia.

    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 information-based indicia or intelligent 
mail indicia to indicate postage payment. They include but are not 
limited to postage meters and PC Postage systems.
    (b) A postage meter is a USPS-approved Postage Evidencing System 
that uses a postage security device (PSD) to account for postage 
purchased and generates evidence of such purchased postage in the form 
of an indicium, where the PSD is co-located with the printing of the 
indicium. The term meter as used in this part refers to a postage meter.
    (c) PC Postage products are USPS-approved Postage Evidencing Systems 
that use a computer, tablet, or similar device as a user interface. PC 
Postage products may use the internet to download postage to the 
computer, tablet or similar device. PC Postage products use a mechanism 
to account for postage that is remote from the printing of the indicium.
    (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 as an end user in accordance 
with Mailing Standards of the United States Postal Service, Domestic 
Mail Manual (DMM), including 604 Postage Payment Methods and Refunds, 
4.0 Postage Meters and PC Postage Products (Postage Evidencing Systems).
    (h) Postal Requirements include the Code of Federal Regulations, 
title 39 part 501, the Domestic Mail Manual (DMM), the International 
Mail Manual (IMM), and the Intelligent Mail Indicia Performance Criteria 
(IMIPC).

[71 FR 65733, Nov. 9, 2006, as amended at 80 FR 42392, July 17, 2015; 85 
FR 21775, Apr. 20, 2020]

[[Page 185]]



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. Persons or 
entities that perform these activities are referred to collectively as 
Postage Evidencing System (PES) Providers in this section.
    (1) Manufacturing and/or distributing any Postage Evidencing System 
that generates or produces U.S. postage.
    (2) Repairing, 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) Approval to become a Postage Evidencing System Provider:
    (1) Any person or entity seeking authorization to become a PES 
Provider must submit a request to the Postal Service in writing to the 
Office of Commercial Payment. Once the request is received, the Office 
of Commercial Payment will provide the applicant the PES Provider 
Applicant Guide and the Intelligent Mail Indicia Performance Criteria 
(IMIPC), the IMIPC setting forth PES and indicia specification and 
requirements. The contact information for Commercial Payment can be 
found in Sec.  501.2(f).
    (2) The PES Provider Applicant Guide sets forth the process for 
applicants seeking to become a PES Provider. An applicant is subject to 
the rules in both that Guide and the IMIPC, while they are attempting to 
gain approval to become a PES Provider. Although the Guide sets forth 
the methodology for a PES provider applicant to be approved as a PES 
provider, it is not a replacement for postal regulations; such 
regulations govern the process. As such, the Guide will be updated to 
reflect changes in postal regulations.
    (3) An applicant applying for approval to become a PES Provider must 
undergo three (3) primary phases which are laid out in the PES Provider 
Applicant Guide: Applicant Introduction and Letter of Intent; Applicant 
Qualification and Registration; and PES Evaluation. Each phase includes 
prerequisites to enter the phase, deliverables expected during that 
phase, and a requirement of written approval by the Office of Commercial 
Payment to allow the process to continue to the next phase. Please note 
that, to the extent that a PES provider applicant seeks to obtain access 
to the IMIPC, such access should only be granted after the applicant 
enters into a Non-disclosure agreement with the Postal Service 
permitting such access and the usage thereof.
    (4) To the extent that an applicant reaches the PES Evaluation 
phase, then the applicant is governed by Postal Requirements, the IMIPC, 
and the PES Provider Applicant Guide even though not yet an authorized 
PES Provider.
    (5) The Postal Service, in its sole discretion, may approve an 
applicant. In reaching its approval determination, the Postal Service 
may review factors and make determinations including, but not limited 
to, satisfactory evidence of the applicant's integrity and financial 
responsibility, commitment to comply with the Postal Requirements, 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).
    (6) No applicant is considered a PES Provider until the Postal 
Service

[[Page 186]]

issues a final written decision. This is accomplished by the provision 
of a final approval of the applicant's status as an authorized PES 
Provider in writing from the Vice President of Mail Entry & Payment 
Technology (or successor). The applicant is approved in writing to 
engage in the function(s) for which authorization was sought and 
approved.
    (d) To the extent that any person or entity is approved to be a PES 
Provider, such PES Provider must adhere to the Postal Requirements.
    (e) As a condition of obtaining authorization under this section, 
the PES Provider's facilities used for the manufacture, distribution, 
storage, resetting, repair, refurbishment, remanufacturing, modifying, 
or destruction of a Postage Evidencing System 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 PES 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 continental United 
States as it has in the past, provided the costs are not associated with 
particular security issues related to a PES 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 PES 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.
    (f) The Postal Service office responsible for administration of this 
part is the Office of Commercial Payment or successor organization. All 
submissions to the Postal Service required or invited by this part are 
to be made to this office in person or via mail to 475 L'Enfant Plaza 
SW, Room 3500, Washington, DC 20260-0004.

[85 FR 21775, Apr. 20, 2020]



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) Protect customer information by not causing or permitting the 
data to be released other than for the operation of a third-party 
location. The provider bears the ultimate responsibility to ensure 
customer information will not be compromised at any domestic or off 
shore locations (including third-party locations), and bears the 
responsibility to ensure its agents or contractors operating domestic or 
off shore locations do not compromise this information. The provider 
shall notify its customer that data relating to its systems is being 
housed at 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 provider shall notify the 
Postal Service immediately upon discovery of any unauthorized use or 
disclosure of data or any other breach

[[Page 187]]

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.
    (d) 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; 85 
FR 21776, Apr. 20, 2020]



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 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:

[[Page 188]]

    (1) Upon determination by the Postal Service that a provider is in 
violation of provisions of this part, or that its Postage Evidencing 
System poses an unreasonable risk to postal revenue, Commercial Payment, 
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 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, Commercial Payment 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 Commercial Payment.
    (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 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, Commercial 
Payment shall advise the provider of its decision, and the facts and 
reasons for it. The decision shall be effective upon receipt unless it 
provides 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 Commercial Payment shall become a final 
decision of the Postal Service. The appeal may be filed with the Chief 
Information 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 
Information 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.

[71 FR 65733, Nov. 9, 2006, as amended at 78 FR 44438, July 24, 2013; 85 
FR 21776, Apr. 20, 2020]



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 Intelligent Mail Indicia 
Performance Criteria (IMIPC) published by Commercial Payment. Copies of 
the current IMIPC may be requested via mail to the address in Sec.  
501.2(f).

[[Page 189]]

    (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 Intelligent 
Mail Indicia Performance Criteria (IMI-PC), 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;
    (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.

[71 FR 65733, Nov. 9, 2006, as amended at 78 FR 44439, July 24, 2013; 82 
FR 60118, Dec. 19, 2017; 85 FR 21777, Apr. 20, 2020; 85 FR 78235, Dec. 
4, 2020]



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 Intelligent Mail Indicia Performance 
Criteria (IMIPC) published by Commercial Payment. Copies of the current 
IMIPC may be requested via mail to the address in Sec.  501.2(f). 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/

[[Page 190]]

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.

[71 FR 65733, Nov. 9, 2006, as amended at 78 FR 44439, July 24, 2013; 85 
FR 21777, Apr. 20, 2020]



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 director, Commercial Payment, 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, Commercial 
Payment will review the summary of changes and make a decision regarding 
the need for the following:
    (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, Commercial Payment will issue a written acknowledgement and/or 
approval of the change to the provider.

[78 FR 44439, July 24, 2013, as amended at 85 FR 21777, Apr. 20, 2020]



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

[[Page 191]]

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 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 upon 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 Information 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

[[Page 192]]

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.

[71 FR 65733, Nov. 9, 2006, as amended at 78 FR 44439, July 24, 2013]



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 Commercial Payment.
    (1) Service procedures for all Postage Evidencing Systems--these are 
procedures to address the process to be used for new Postage Evidencing 
Systems as 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

[[Page 193]]

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 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 Commercial Payment 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 Commercial Payment 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 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, 
Commercial Payment 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.

[[Page 194]]

    (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, as amended at 85 FR 21777, Apr. 20, 2020]



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 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) Financial responsibility for returned payments. The RC is 
required to reimburse the Postal Service upon request for any returned 
checks or ACH debits for postage payments. The RC must, upon first 
becoming aware of a returned check or ACH debit, immediately lock the 
customer's CMRS account to prevent a meter reset until the RC receives 
confirmation of payment for the returned item. If a penalty or fine is 
assessed against the Postal Service for returned checks or ACH debit 
payments from an RC's customer, the Postal Service may request 
reimbursement for such penalty or fine from the RC. The RC is required 
to remit the amount of the returned item to the Postal Service plus the 
reimbursement request, to the extent applicable, within ten (10) banking 
days. Invoices will be created monthly for returns and/or applicable 
penalties or fines incurred for the previous month. The 10 banking days 
will start once the invoice is mailed. The RC has discretion to decide 
whether to charge its customer for any such reimbursement costs (of 
penalties or fines) the RC pays to the Postal Service in connection

[[Page 195]]

with the customer's returned check or ACH debit.
    (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 postage meters 
environment, the RC must submit to a periodic examination and provide a 
System and Organization Control (SOC) 1 Type II Report of its meter 
system and any other applications and technology infrastructure that may 
have a material impact on Postal Service revenues, as determined by the 
Postal Service. Additionally, RC must submit to a periodic examination 
and provide a SOC 2 Type II Report of its meter system data security, 
accuracy, processing integrity and data integrity for any applications, 
reports, and technology infrastructure that may have a material impact 
on the RC's reports, which the Postal Service relies upon. For the 
initial SOC 2 Type I report, the Postal Service will provide the control 
objectives by March 18, 2020. The due date for the initial SOC 2 Type I 
is July 1, 2020, with the SOC 2 Type II due on August 15, 2021. Both the 
SOC 1 and SOC 2 examinations shall be performed by a qualified, 
independent audit firm and shall be conducted in accordance with the 
Statements on Standards for Attestation Engagements (SSAEs) No. 18, 
Service Organizations, developed by the American Institute of Certified 
Public Accountants (AICPA), as amended or superseded. Expenses 
associated with such examination shall be incurred by the RC. The 
examination shall include testing of the operating effectiveness of 
relevant RC internal controls (SOC 1 Type II SSAE 18 & SOC 2 Type II 
SSAE 18 Reports). If the service organization uses another service 
organization (sub-service provider), the RC should consider the nature 
and materiality of the transactions and data 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 control objectives. Resetting companies are expected to submit 
any request for changes to control objectives by December 31 of each 
year, which will be taken under consideration by the Postal Service for 
review and approval. The Postal Service will provide common control 
objectives to be covered by the SOC 1 Type II SSAE 18 by January 31 each 
year. As a result of the examination, the service 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 
meter system and any other applications and technology infrastructure 
considered material to the services provided to the Postal Service by 
the RC. SOC 1 and SOC 2 examinations are to be conducted on no less than 
an annual basis, and are to be as of and for the 12 months ended June 30 
of each year (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 SOC 1 
and SOC 2 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 SOC report, the Postal Service requires 
prompt communication and remediation of such weaknesses and shall have 
the right to review working papers and engage in discussions about the 
work performed with the service auditor. The 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). 
In addition, the RC will be responsible for evaluating its internal 
control environment related to the meter system and any other 
applications and technology infrastructure considered material to the 
services provided to the Postal Service by the RC, in particular, 
disclosing changes to internal controls for the period of July 1 to 
September 30. This evaluation should be documented and submitted to the 
Postal Service by October 15 of each year. The RC will be responsible 
for all costs related to the examinations conducted by the service 
auditor and the RC.

[[Page 196]]

    (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 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 RC's meter systems and 
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; 
77 FR 56554, Sept. 13, 2012; 79 FR 10994, Feb. 27, 2014; 85 FR 12872, 
Mar. 5, 2020]



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) Financial responsibility for returned payments. The provider 
must reimburse the Postal Service upon request for any returned checks 
or ACH debits for postage payments. The provider must, upon first 
becoming aware of a returned check or ACH debit, immediately lock the 
customer account to prevent resetting the account until the provider 
receives confirmation of payment for the returned item. If a penalty or 
fine is assessed against the Postal Service for returned checks or ACH 
debit payments from a provider's customer, the Postal Service may 
request reimbursement for such penalty or fine from the provider. The 
provider is required to remit the amount of the returned item plus the 
amount of the reimbursement request, to the extent applicable, to the 
Postal Service within ten (10) banking days. Invoices will be created 
monthly for returns and/or applicable penalties or fines incurred for 
the previous month. The 10 banking days will start once the invoice is 
mailed. The provider has discretion to decide whether to charge its 
customer for any such reimbursement costs (of penalties or fines) the 
provider pays to the Postal Service in connection with the customer's 
returned check or ACH debit.
    (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 and provide a SOC 1 Type II Report 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. Additionally, provider 
must submit to a periodic examination and provide a SOC 2 Type II Report 
of its meter system data security, accuracy, processing integrity and 
data integrity for any applications, reports, and technology 
infrastructure that may have a material impact on the provider's 
reports, which the Postal Service relies upon. The examination shall be 
performed by a qualified, independent audit firm and shall be conducted 
in accordance with the Statements on Standards for Attestation 
Engagements (SSAEs) No. 18, Service Organizations, developed by the 
American Institute of Certified Public Accountants

[[Page 197]]

(AICPA), as amended or superseded. Expenses associated with such 
examination shall be incurred by the provider. The examination shall 
include testing of the operating effectiveness of relevant provider 
internal controls (SOC 1 Type II SSAE 18 Report). If the service 
organization uses another service organization (sub-service provider), 
the provider 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 control objectives. The control 
objectives to be covered by the SOC 1 Type II SSAE 18 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. Resetting companies are expected to submit any request for 
changes to control objectives by December 31 of each year, which will be 
taken under consideration by the Postal Service for review and approval. 
The Postal Service will provide common control objectives to be covered 
by the SOC 1 Type II SSAE 18 by January 31 each year. As a result of the 
examination, the service auditor shall provide the provider and the 
Postal Service with an opinion on the design and operating effectiveness 
of the provider's internal controls related to the meter system, and any 
other applications and technology infrastructure considered material to 
the services provided to the Postal Service by the RC. SOC 1 and SOC 2 
examinations are to be conducted on no less than an annual basis, and 
are to be as of and for the 12 months ended June 30 of each year (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 SOC 1 and SOC 2 
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 SOC 1 Type II SSAE 18 report, the Postal Service 
requires prompt communication and remediation of such weaknesses and 
will review working papers and engage in discussions about the work 
performed with the service auditor. The Postal Service requires that all 
remediation efforts (if applicable) are completed and reported by the 
provider to the Postal Service's fiscal year end (September 30). In 
addition, the provider will be responsible evaluating its internal 
control environment related to the meter system and any other 
applications and technology infrastructure considered material to the 
services provided to the Postal Service by the provider, in particular, 
disclosing changes to internal controls for the period of July 1 to 
September 30. This evaluation should be documented and submitted to the 
Postal Service by October 15 each year. The provider will be responsible 
for all costs related to the examinations conducted by the service 
auditor and the RC.
    (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.
    (i) Revenue assurance. (1) The PC Postage provider must support 
business practices to assure Postal Service revenue and accurate payment 
from customers. For purposes of this paragraph, PC Postage provider 
shall mean: providers who offer PC Postage products (as such terms are 
defined in Sec.  501.1); Click-N-Ship[supreg] service; and postage 
resellers when such resellers transmit postage revenue to the Postal 
Service in any manner other than through a PC Postage provider. With 
respect to the

[[Page 198]]

reseller transactions described above, the resellers, and not the PC 
Postage providers who provide the labels, are responsible for complying 
with this paragraph. For the purpose of this paragraph, a reseller is an 
entity that obtains postage through a PC Postage provider and is 
authorized to resell such postage to its customers pursuant to an 
agreement with the Postal Service. For example, an entity that sells 
postage to its customers, but uses a PC Postage provider to enable its 
customers to print postage labels, is a reseller hereunder. If that 
entity collects postage revenue from its customers and transmits it to 
the Postal Service directly (instead of through the PC Postage provider) 
that entity shall be deemed a PC Postage provider hereunder. For the 
purpose of this paragraph, a customer is the person or entity that 
deposits the mail piece into the mail system. PC Postage providers must 
comply with these revenue assurance requirements regardless of whether 
they have a direct relationship with the customer or sell postage to the 
customer through one or more resellers.
    (2)(i) For the purposes of this paragraph, a postage adjustment is 
defined as the difference between the postage or fee actually paid to 
the Postal Service for a specific service, and the actual postage due to 
the Postal Service under the published or negotiated rate for that 
service, as applicable, which shall be calculated as of the time the 
mail piece is entered into the mailstream.
    (ii) When the collection of a postage adjustment or the provision of 
a refund is appropriate because a customer has underpaid or overpaid the 
amount of postage that should have been paid, and such postage 
adjustment exceeds a threshold amount to be set by the Postal Service 
from time to time in its discretion, the PC Postage provider must, upon 
receiving notice from the Postal Service, pay, attempt to collect, or 
refund, as applicable, the postage adjustment in accordance with 
paragraph (i)(2)(iii) of this section. The Postal Service will supply 
the PC Postage provider with the details necessary to explain the 
correction and the amount of the postage adjustment to be used in the 
adjustment process. As part of this process, the PC Postage provider 
shall enable customers to submit disputes concerning the postage 
adjustment to the Postal Service, in a method approved by the Postal 
Service, including via phone call to the customer care center or API in 
the PC Postage provider's user interface of postage collections. In 
addition, the PC Postage provider must convey the Postal Service's 
dispute decision to the customer. If the Postal Service determines the 
customer's dispute was valid, and the customer had already paid the 
postage adjustment, the PC Postage provider must return the postage 
adjustment to the customer when notified by the Postal Service according 
to the rules set forth in paragraph (i)(2)(iii)(B) of this section.
    (iii)(A) In the case of an underpayment that exceeds the threshold 
amount, within 14 business days of receiving notice of the underpayment 
from the Postal Service the PC Postage provider must pay the postage 
adjustment directly to the Postal Service, or seek to collect the 
postage adjustment from the customer in accordance with this paragraph. 
If the PC Postage provider opts to pursue collection activity, it must 
notify the customer of the details of the postage adjustment (including 
the dispute process), retain evidence that such notice was actually 
received by the customer, and attempt to collect the postage adjustment 
by adjusting the funds available to the customer in the Postage 
Evidencing System, or if funds are not available, facilitating customer 
payment by invoicing the customer or by pursuing other methods available 
to collect against the customer or access funds of the customer. If the 
customer has a Postage Evidencing System account, the PC Postage 
provider must process any refunds due to the customer under paragraph 
(i)(2)(iii)(B) of this section before processing any collections due to 
the Postal Service hereunder. If the PC Postage provider opts to pursue 
collection activity, it shall continue to make affirmative efforts to 
collect the postage adjustment from the customer until the postage 
adjustment is satisfied in whole or the collection period (as defined in 
paragraph (i)(2)(iii)(C) of this section) expires. Immediately

[[Page 199]]

upon receiving or securing access to funds of the customer, the PC 
Postage provider shall remit to the Postal Service any and all available 
funds from the customer's account from the Postage Evidencing System or 
that are otherwise recovered by the PC Postage provider to the extent 
necessary to satisfy the postage adjustment. The postage adjustment must 
be paid in full; no partial payments will be accepted by the Postal 
Service, except for payments made under paragraph paragraph 
(i)(2)(iii)(C) of this section.
    (B) In the case of an overpayment that exceeds the threshold amount, 
the Postal Service shall within 14 business days of identifying the 
overpayment, provide notice of the postage adjustment to the PC Postage 
provider and instruct the PC Postage provider to give the customer a 
credit and adjust the funds available to the customer in the Postage 
Evidencing System. If the Postage Evidencing System account has been 
closed or for customers who do not have individual Postage Evidencing 
System accounts, the Postal Service shall instruct the PC Postage 
provider to issue a refund to the customer and the Postal Service shall 
either refund the postage adjustment to the PC Postage provider or 
permit the PC Postage provider to submit a reconciliation to the Postal 
Service. The PC Postage provider must immediately upon receiving notice 
of the overpayment from the Postal Service, notify the customer and, 
consistent with the Postal Service's instructions, adjust the funds 
available to the customer in the Postage Evidencing System, refund the 
postage adjustment to the customer, or provide a credit to the customer. 
If the PC Postage provider is unable to comply with the above 
requirements within 2 business days, the PC Postage provider must 
immediately notify the Postal Service.
    (C) The collection period is a time period to be set by the Postal 
Service not to exceed 60 calendar days after initial notification by the 
Postal Service, subject to any applicable notification periods and 
dispute mechanisms that may be available to customers for these 
corrections. If an underpayment has not been satisfied within this 
collection period, the PC Postage provider shall adjust any funds 
available to the customer in the Postage Evidencing System to satisfy 
the postage adjustment to the greatest extent possible, and assist the 
Postal Service in its efforts to pursue any remedies that may be 
available in law or equity, including seeking payment directly from the 
customer.
    (iv)(A) In the case of an underpayment that exceeds the threshold 
amount, immediately upon receiving notice of the underpayment from the 
Postal Service the PC Postage provider shall prohibit the customer from 
printing additional postage labels until the postage adjustment is 
satisfied in accordance with paragraph (i)(2)(iii)(A) of this section, 
or the customer disputes the adjustment and prevails. The Postal Service 
may, in its discretion, waive or delay this prohibition in specific 
instances.
    (B) Separately, without regard to any threshold, in certain cases 
(such as where a customer is suspected of having intentionally or 
repeatedly underpaid postage) the Postal Service may, in its discretion, 
instruct the PC Postage provider to shut down temporarily or permanently 
a customer's ability to print PC Postage, and the PC Postage provider 
shall promptly comply with such instruction.
    (C) In no event shall the Postal Service be liable to any PC Postage 
provider, customer or other party for any direct, indirect, exemplary, 
special, consequential, or punitive damages (including without 
limitation damages relating to loss of profit or business interruption) 
arising from or related to any customer's permanent or temporary 
inability to print postage labels in accordance with this paragraph 
(i)(2)(iv) or as a result of funds offset in accordance with this 
paragraph.
    (v) The Postal Service, in its discretion, may adopt and modify from 
time to time, and the PC Postage providers shall comply with, business 
rules setting forth processes (including time constraints) for payments, 
refunds, account suspensions, collections, notifications, dispute 
resolutions and other activities to be performed hereunder. Such 
business rules will be published in the Federal Register.

[[Page 200]]

    (3)(i) Without regard to any threshold, if the PC Postage provider 
incorrectly programmed postage rates, delayed programming postage rate 
changes, or otherwise provided systems or software which caused 
customers to pay incorrect postage amounts, then within two calendar 
weeks of the PC Postage provider being made aware of such error, the PC 
Postage provider shall:
    (A) Correct the programming error;
    (B) Provide the Postal Service with a detailed breakdown of how the 
error affected the PC Postage provider's collection of revenue; and
    (C) Pay the Postal Service for the postage deficiency caused by the 
programming error, except in instances where the error was caused by the 
Postal Service or as a direct result of incorrect specifications 
provided by the Postal Service.
    (4) The PC Postage provider is responsible for ensuring that:
    (i) All customers pay (and the Postal Service receives) the current 
published prices that are available to customers who purchase postage 
through an approved PC Postage provider, or negotiated contracted prices 
where applicable in accordance with this paragraph; and
    (ii) All payments to the Postal Service (or the log files necessary 
for the Postal Service to collect payments directly from customers) are 
complete and accurate and are initiated or transmitted, as applicable, 
to the Postal Service each day.
    (5) Each PC Postage provider shall:
    (i) Before each customer's first transaction following the 
implementation date of August 1, 2017, provide notice to such customer 
of the terms, conditions and processes described in this paragraph--
including, without limitation, that the customer may be charged for 
deficient payments and prevented from printing additional postage labels 
while a postage adjustment remains unpaid--and obtain a certification 
from each customer that the customer has read, understands and agrees to 
such terms, conditions and processes, as they may be amended or 
supplemented from time to time;
    (ii) Ensure that each customer certifies that it:
    (A) Will comply with all laws and regulations applicable to Postal 
Service services, including, without limitation, the provisions of the 
Domestic Mail Manual and the International Mail Manual,
    (B) Does not owe any money to the Postal Service and is not a 
controlling member or officer of an entity that owes money to the Postal 
Service, and
    (C) Authorizes the PC Postage provider to disclose the customer's 
personal information to the Postal Service and such other information 
retained by the PC Postage provider that may enable the Postal Service 
to collect debts owed to it;
    (iii) Maintain a complete and accurate record for each customer, 
which includes such customer's current name and a valid U.S. address 
that is sufficient for service of process under the law, as well as a 
copy of all terms agreed to by the customer and the date of such 
agreements;
    (iv) Comply with applicable laws, rules, regulations and guidelines 
and ensure that its Postage Evidencing Systems, software, interfaces, 
communications and other properties that are used to sell or market 
Postal Service products accurately describe such products;
    (v) Cover any costs or damages that the Postal Service may incur as 
a result of such PC Postage provider or its employees, contractors, or 
representatives failing to comply with the terms of this section, or any 
applicable law, regulation, rule, or government policy; and
    (vi) In performing its obligations hereunder, comply with the 
business rules that shall be published in the Federal Register from time 
to time and provide all agreed-upon interface documentation (as updated 
from time to time).
    (6) In the event that the Postal Service fails to exercise or delays 
exercising any right, remedy, or privilege under this paragraph, such 
failure or delay shall not operate as a waiver thereof or of any other 
provision hereof, nor shall any single or partial exercise of any right, 
remedy, or privilege preclude any further exercise of the same. The 
rights and remedies available to the Postal Service under this

[[Page 201]]

paragraph are cumulative and in addition to, and do not diminish, any 
rights or remedies otherwise available to the Postal Service.

[72 FR 33163, June 15, 2007, as amended at 75 FR 56472, Sept. 16, 2010; 
79 FR 10995, Feb. 27, 2014; 80 FR 42392, July 17, 2015; 82 FR 15465, 
Mar. 29, 2017; 85 FR 12873, Mar. 5, 2020]



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.
    (f) Postage Evidencing Systems that do not comply with the then 
current Intelligent Mail Indicia Performance Criteria will be 
Decertified Postage Evidencing Systems on June 30, 2024. The withdrawal 
date for those systems will be December 31, 2024.

[71 FR 65733, Nov. 9, 2006, as amended at 85 FR 78235, Dec. 4, 2020]



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, including any unresolved identified postage 
discrepancies 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 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.

[[Page 202]]

    (5) The customer is in possession of a Decertified Postage 
Evidencing System.
    (6) The customer has any unresolved postage discrepancies.
    (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.
    (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

[[Page 203]]

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.

[71 FR 65733, Nov. 9, 2006, as amended at 80 FR 42393, July 17, 2015]



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.



Sec.  501.20  Discontinued Postage Evidencing Indicia.

    (a) Decertified indicia (evidence of pre-paid postage) are indicia 
that have been withdrawn by the Postal Service as valid forms of postage 
evidence through publication by the Postal Service in the Federal 
Register, or by voluntary withdrawal undertaken by the provider.
    (b) Effective December 31, 2024 all Postage Evidencing Systems that 
do not to produce Intelligent Mail Indicia (IMI) for evidence of pre-
paid postage must be withdrawn from service. Non-IMI indicia, which are 
not compliant with the then-current version of the IMI-PC, will be 
decertified and may not be used as a valid form of postage evidence. 
These decertified indicia may not be recognized as valid postage for use 
or refunds, after June 30, 2025.

[78 FR 8407, Feb. 6, 2013, as amended at 85 FR 78235, Dec. 4, 2020; 85 
FR 79432, Dec. 10, 2020]



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.

[[Page 204]]



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

    The Postal Service has discretionary authority to select causes and 
recipient executive agencies to receive funds raised through the sale of 
semipostal stamps. These regulations apply only to such discretionary 
semipostal stamps and do not apply to semipostal stamps that are 
mandated by Act of Congress, such as the Breast Cancer Research stamp. 
The procedure for selection of causes and recipient executive agencies 
is as follows:
    (a) The Office of Stamp Services will accept proposals from 
interested persons for future semipostal stamps beginning on May 20, 
2016. The Office of Stamp Services will begin considering proposals on 
July 5, 2016. This section should not be read to reflect the intention 
of the Postal Service to issue any particular number of semipostal 
stamps during the 10-year period of this part. Proposals may be 
submitted and will be considered on a rolling basis until seven years 
after May 20, 2016. The Office of Stamp Services may publicize this 
request for proposals in the Federal Register or through other means, as 
it determines in its discretion. Proposals for semipostal stamps made 
prior to May 20, 2016 will not be given further consideration. Nothing 
in this section should be construed as barring the resubmission of 
previously submitted causes and recipient executive agencies.
    (b) Proposals will be received by the Office of Stamp Services, 
which will review each proposal under Sec.  551.4.
    (c) The Office of Stamp Services will forward those proposals that 
satisfy the requirements of Sec.  551.4 to the Citizens' Stamp Advisory 
Committee for its consideration.
    (d) Based on the proposals received from the Office of Stamp 
Services, the Citizens' Stamp Advisory Committee may make 
recommendations on causes and eligible recipient executive agencies to 
the postmaster general. The Citizens' Stamp Advisory Committee may 
recommend more than one cause and eligible recipient executive agency at 
the same time.
    (e) Meetings of the Citizens' Stamp Advisory Committee are closed, 
and deliberations of the Citizens' Stamp Advisory Committee are pre-
decisional in nature.
    (f) In making decisions concerning semipostal stamps, the postmaster 
general may take into consideration such factors, including the 
recommendations of the Citizens' Stamp Advisory Committee, as the 
postmaster general determines are appropriate. The decision of the 
postmaster general shall be the final agency decision.
    (g) The Office of Stamp Services will notify each executive agency 
in writing of a decision designating that agency as a recipient of funds 
from a semipostal stamp.
    (h) As either a separate matter, or in combination with 
recommendations on a cause and recipient executive agencies, the 
Citizens' Stamp Advisory Committee may recommend to the postmaster 
general a design (i.e., artwork) for the semipostal stamp. The 
postmaster general will make a final decision on the design to be 
featured.
    (i) The decision of the postmaster general to exercise the Postal 
Service's discretionary authority to issue a semipostal stamp is final 
and not subject to challenge or review.

[81 FR 23163, Apr. 20, 2016, as amended at 85 FR 55193, Sept. 4, 2020]



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 the proposal by U.S. Mail 
to the Office of Stamp Services, Attn: Semipostal Discretionary Program, 
475 L'Enfant Plaza SW., Room 3300, Washington, DC 20260-3501, or in a 
single Adobe Acrobat (.pdf) file sent by email to [email protected]. 
Indicate in the Subject Line: Semipostal Discretionary Program. For 
purposes of this section, interested persons include, but are not 
limited to, individuals, corporations, associations, and executive 
agencies under 5 U.S.C. 105.
    (2) The proposal must be signed by the individual or a duly 
authorized representative and must provide the mailing address, phone 
number, fax number (if available), and email address of a designated 
point of contact.

[[Page 205]]

    (3) The proposal must describe the cause and the purposes for which 
the funds would be used.
    (4) The proposal 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 proposal must include a letter from an executive agency or 
agencies on agency letterhead representing that:
    (i) It is an executive agency as defined in 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.
    (6)(i) A proposal 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 postmaster 
general will provide the recipient executive agencies with an 
opportunity to jointly decide which two agencies will receive funds. If 
the agencies are unable to reach a joint decision within 20 days, the 
postmaster general shall either decide which two agencies will receive 
funds or select another proposal.
    (ii) If more than one proposal is submitted for the same cause, and 
the proposals would have different executive agencies receiving funds, 
the funds may be evenly divided among the executive agencies, with no 
more than two agencies being designated to receive funds, as determined 
by the postmaster general.
    (b) Proposals 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 proposals are selected or not, 
for any reason.
    (c) The following persons may not submit proposals:
    (1) Employees of the United States Postal Service;
    (2) Any contractor of the Postal Service that may stand to benefit 
financially from the Semipostal Stamp Program; or
    (3) Members of the Citizens' Stamp Advisory Committee and their 
immediate families, and 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 any of 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 may not be submitted with proposals.

[81 FR 23163, Apr. 20, 2016]



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 Office of Stamp 
Services will determine the date of commencement of the 10-year period.
    (b)-(c) [Reserved]
    (d) Prior to or after the issuance of a given discretionary 
semipostal stamp, the Postal Service may withdraw the semipostal stamp 
from sale, or to reduce the sales period, if, inter alia:

[[Page 206]]

    (1) Its sales or revenue statistics are lower than expected,
    (2) The sales or revenue projections are lower than expected, or
    (3) The cause or recipient executive agency does not further, or 
does not comply with, the statutory purposes or requirements of the 
Semipostal Authorization Act.

[81 FR 23164, Apr. 20, 2016, as amended at 85 FR 55193, Sept. 4, 2020]



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[supreg] single-
piece stamped 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.

[81 FR 23164, Apr. 20, 2016]



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 (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

[[Page 207]]

(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 208]]



      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 Suspension, debarment, 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 209]]

    (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 upon, the 10-day limitation is suspended. If agreement 
cannot be

[[Page 210]]

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, email, 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: Supply 
Management, Room 1141 (Attn: SDR Official), United States Postal Service 
Headquarters, 475 L'Enfant Plaza SW., Washington, DC 20260-1141; email 
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 211]]

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, as amended at 79 FR 65343, Nov. 4, 2014]

[[Page 212]]



Sec.  601.109  Contract claims and disputes.

    (a) General. This section implements the Contract Disputes Act of 
1978, as amended (41 U.S.C. 7101-7109). 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

[[Page 213]]

the 60-day period of the time when a decision will be issued. The time 
period established must be reasonable, taking 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 
filing a notice of appeal within ninety days from the date you receive 
this decision. You may file the notice of appeal online through the USPS 
Judicial Officer Department's Electronic Filing System Web site located 
at https://uspsjoe.justware.com/ JusticeWeb, or by mailing or otherwise 
furnishing the notice of appeal to the Postal Service Board of Contract 
Appeals. You also may appeal by mailing, or otherwise furnishing written 
notice of appeal 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.

[72 FR 58252, Oct. 15, 2007, as amended at 80 FR 31844, June 4, 2015; 81 
FR 29146, May 11, 2016]



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

[[Page 214]]

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.



Sec.  601.113  Suspension, debarment, 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 
suspended, debarred, 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 suspension, debarment, or proposed debarment of a supplier 
which has the same or similar management, ownership, or principal 
employees as the supplier that was suspended, debarred, 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) Suspension, debarment, and ineligible list. (1) The Postal 
Service uses the General Services Administration's System for Award 
Management (SAM) to determine if suppliers are suspended, debarred, or 
proposed for debarment.
    (2) SAM maintains a consolidated database of all persons and 
entities suspended, debarred, proposed for debarment, or declared 
ineligible by Federal agencies or the Government Accountability Office. 
SAM is accessible by the public on GSA's Web site at https://
www.sam.gov.
    (3) Through a representative, the vice president, Supply Management 
will use the SAM Exclusions database to report Postal Service 
suspensions, debarments

[[Page 215]]

and proposed debarment decisions; including changes in the status of 
suppliers and any of their affiliates. Inquiries concerning listed 
suppliers should be directed to the agency or other authority that took 
the action.
    (d) Treatment of suppliers included in the SAM Exclusions database. 
(1) Contracting officers will review the SAM Exclusions database before 
making a contract award.
    (2) Suppliers included in the SAM Exclusions database 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.
    (3) Suppliers included in the SAM Exclusions database 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 suspended or debarred by the Postal Service from performing 
any part of a Postal Service contract.
    (4) The suspension, debarment, 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 suspended, debarred, or 
determined to be ineligible. Contracting officers may not add new work 
to any contract with a supplier that is suspended, debarred, 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 after consultation with the General Counsel.
    (e) Causes for suspension. (1) The vice president, Supply 
Management, may suspend any supplier, including any of its affiliates, 
for causes such as the following:
    (i) 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;
    (ii) For any other cause of such serious and compelling nature that 
suspension is warranted; or
    (iii) If the Postal Service has notified a supplier of its proposed 
debarment under this part.
    (f) 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 (k)(5) of this section.
    (g) 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

[[Page 216]]

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.
    (h) 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 (h)(1)(i) or (ii) of 
this section can be established by proof of a conviction in a court of 
competent jurisdiction. If an 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 
(h)(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 criminal, fraudulent, 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.
    (i) 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.

[[Page 217]]

    (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.
    (j) 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, 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.
    (k) 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, individually or 
through a representative, may submit in person or in writing 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

[[Page 218]]

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) Questions of fact to be resolved by a hearing before the 
Judicial Officer will be based on the preponderance of the evidence.
    (4) After consideration of the circumstances and any information and 
argument submitted by the supplier, 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.

[79 FR 65343, Nov. 4, 2014]



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;
    (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

[[Page 219]]

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 220]]



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 221]]

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 222]]

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 223]]

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 224]]

    (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 225]]

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 226]]

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 227]]

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 228]]



                 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 229]]

    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 230]]

    (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 231]]

    (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) Disposal of properties where the size, area, topography, and 
zoning are similar to existing surrounding properties and/or where 
current and reasonable anticipated uses are or would be similar to 
current surrounding uses (e.g., commercial store in a commercial strip, 
warehouse in an urban complex, office building in downtown area, row 
house or vacant lot in an urban area).
    (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; 
79 FR 2103, Jan. 13, 2014; 79 FR 33097, June 10, 2014]



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 
makers, and other officials responsible for actions, will, as 
appropriate:

[[Page 232]]

    (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 Sec.  775.12 for 
restrictions on the timing of this decision.

[[Page 233]]

    (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 234]]

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 235]]

    (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 236]]

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 237]]

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 238]]

    (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 239]]



                      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 240]]

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 241]]

    (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 242]]

    (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 243]]



                    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 244]]

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 245]]

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 246]]

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 247]]

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 248]]

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 249]]

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 250]]

    (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 251]]

    (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 252]]

    (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 253]]

    (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 254]]

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 255]]

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 256]]

    (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 257]]

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 258]]

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 259]]

    (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 260]]

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 261]]

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 262]]



                           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 263]]

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 264]]

    (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 265]]



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 266]]



                         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 267]]

    (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 268]]

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 269]]

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 270]]

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 271]]



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 272]]

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 273]]

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, Apr. 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 274]]

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 275]]

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 276]]

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 277]]

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; electronic filing.
952.5 Complaints.
952.6 Interim impounding.
952.7 Notice of docketing and answer.
952.8 Service.
952.9 Filing; docketing and serving documents.
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, 3001, 3005, 3012, 3016; 5 U.S.C. 554.

    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

[[Page 278]]

prior rules of practice pertaining to 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; electronic filing.

    (a) The offices of the officials identified in these rules are 
located at 2101 Wilson Boulevard, Suite 600, Arlington, VA 22201-3078. 
Normal business hours are between 8:45 a.m. and 4:45 p.m. (Eastern 
Time), Monday through Friday except holidays.
    (b) The Judicial Officer electronic filing system Web site is 
accessible 24 hours a day at https://uspsjoe.justware.com/ justiceweb.

[81 FR 40192, June 21, 2016]



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;

[[Page 279]]

    (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 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; docketing and serving documents.

    (a) Unless the presiding officer permits otherwise, all documents 
must be filed using the electronic filing system. Documents submitted 
using the electronic filing system are considered filed as of the date/
time (Eastern Time) reflected in the system. Documents mailed to the 
Recorder are considered filed on the date mailed as evidenced by a 
United States Postal Service postmark. Filings by any other means are 
considered filed upon receipt by the Recorder of a complete copy of the 
filing during normal business hours. 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.
    (b) 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 
in the electronic filing system or by the Recorder on or before such 
date. If both parties are participating in the electronic filing system, 
separate service upon the opposing party is not required. Otherwise, 
documents shall be served personally or by mail on the opposing party, 
noting on the document filed, or on the transmitting letter, that a copy 
has been so furnished.

[81 FR 40192, June 21, 2016]



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

[[Page 280]]

partners, or, in the case of a corporation or association, by an officer 
thereof.
    (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

[[Page 281]]

shall support the 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; 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

[[Page 282]]

the testimony of expert witnesses or by stipulation.
    (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 283]]

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 284]]

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 285]]

    (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 286]]

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 287]]

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 288]]

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 Filing, docketing and serving documents; 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, 3001; 5 U.S.C. 554.

    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 an appeal 
in the Judicial Officer electronic filing system at https://
uspsjoe.justware.com/ justiceweb or with the Recorder, Judicial Officer 
Department, U.S. Postal Service, 2101 Wilson Boulevard, Suite 600, 
Arlington, VA 22201-3078.

[81 FR 40192, June 21, 2016]



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

[[Page 289]]

a partnership, corporation, limited liability company, or unincorporated 
association, of the managing partner, chief executive officer, chief 
operating 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  Filing, docketing and serving documents; service of notice;
reply; motion for summary judgment.

    (a) Filing. Unless the presiding officer permits otherwise, all 
documents must be filed using the electronic filing system. Documents 
submitted using the electronic filing system are considered filed as of 
the date/time (Eastern Time) reflected in the system. Documents mailed 
to the Recorder are considered filed on the date mailed as evidenced by 
a United States Postal Service postmark. Filings by any other means are 
considered filed upon receipt by the Recorder of a complete copy of the 
filing during normal business hours. Normal business hours are between 
8:45 a.m. and 4:45 p.m. (Eastern Time), Monday through Friday except 
holidays. If both parties are participating in the electronic filing 
system, separate service upon the opposing party is not required. 
Otherwise, documents shall be served personally or by mail on the 
opposing party, noting on the document filed, or on the transmitting 
letter, that a copy has been so furnished.
    (b) 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 or his or her designee's reply shall 
be filed within 15 days of receipt of the notice.
    (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.
    (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 mail, 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.
    (c) Reply. The General Counsel, the Chief Postal Inspector, or that 
officer's designee shall file a reply within the aforementioned 15-day 
period or any period granted by the presiding officer for good cause 
shown. If the reply so filed fails to address any additional allegation 
in the appeal, that allegation shall be deemed admitted.
    (d) Motion for summary judgment. Upon motion of the General Counsel, 
the Chief Postal Inspector, that officer's 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.

[81 FR 40192, June 21, 2016]



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.

[[Page 290]]

    (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 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 or the Judicial Officer (39 
U.S.C. 204). The Chief Administrative Law Judge shall assign cases. The 
Judicial Officer may preside at the hearing if an Administrative Law 
Judge is unavailable.

[81 FR 40193, June 21, 2016]



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,

[[Page 291]]

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.



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; electronic filing.
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, 3685; 5 U.S.C. 554.

    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

[[Page 292]]

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 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; electronic filing.

    (a) The offices of the officials identified in these rules are 
located at 2101 Wilson Boulevard, Suite 600, Arlington, VA 22201-3078. 
Normal Business hours are between 8:45 a.m. and 4:45 p.m. (Eastern 
Time), Monday through Friday except holidays.
    (b) The Judicial Officer electronic filing system Web site is 
accessible 24 hours a day at https://uspsjoe.justware.com/ justiceweb.

[81 FR 40193, June 21, 2016]



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) Filing and service. All documents required under this part must 
be filed using the electronic filing system unless the presiding officer 
permits otherwise. Documents submitted using the electronic filing 
system are considered filed as of the date/time (Eastern Time) reflected 
in the system. Documents mailed to the Recorder are considered filed on 
the date mailed as evidenced by a United States Postal Service postmark. 
Filings by any other means are considered filed upon receipt by the 
Recorder of a complete copy of the filing during normal business hours. 
If both parties are participating in the electronic filing system, 
separate service upon the opposing party is not required. Otherwise, 
documents shall be served personally or by mail on the opposing party, 
noting on the document filed, or on the transmitting letter, that a copy 
has been so furnished. 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

[[Page 293]]

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 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; 81 FR 40193, June 21, 2016]



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]

[[Page 294]]



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 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.

[[Page 295]]

    (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 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]

[[Page 296]]



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 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

[[Page 297]]

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 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 Initiation 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.about.usps.com/ who-we-are/judicial/ welcome.htm. The Web site for 
electronic filing is https://uspsjoe.justware.com/ justiceweb.
    (2) The Board consists of the Judicial Officer as 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.

[[Page 298]]

    (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.
    (ii) Unless otherwise specified by the Board, orders and decisions 
shall be considered received by the parties on the date posted to the 
electronic filing system. 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) Manner of filings. Pleadings and other communications shall be 
filed using the electronic filing system unless the Board permits 
otherwise. Documents submitted using that system are considered filed 
with the Board as of the date/time (Eastern Time) reflected in the 
system. Documents mailed to the Board are considered filed with the 
Board on the date mailed as evidenced by a United States postmark. 
Filings submitted by any other means are considered filed with the Board 
upon receipt by the Recorder of a complete copy of the filing during the 
Board's working hours (8:45 a.m.-4:45 p.m. Eastern Time).
    (5) Service. If both parties to an appeal are participating via the 
electronic filing system, separate service upon the opposing party is 
not required. Otherwise, documents shall be served personally or by mail 
with 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 furnished. The filing of a 
document by fax transmission occurs upon receipt by the Board of the 
entire legible submission by fax. Copies of simultaneous briefs shall 
not be filed electronically or otherwise exchanged by the parties but 
rather shall be filed only with the Board by mail, fax, commercial 
carrier, on in-person. The Board will distribute simultaneous briefs 
electronically, or otherwise as appropriate. 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; 80 
FR 31304, June 2, 2015; 81 FR 7208, Feb. 11, 2016; 81 FR 40193, June 21, 
2016]



Sec.  955.2  Initiation of appeals.

    An appeal must be initiated by the filing of a notice of appeal (or 
equivalent). See Sec.  955.1(c)(4). The notice of appeal must be in 
writing and must be

[[Page 299]]

filed within the time specified by applicable law.

[80 FR 31304, June 2, 2015]



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.



Sec.  955.4  Forwarding of appeals.

    If a party seeking to file an appeal submits a notice of appeal to 
the contracting officer instead of filing it using the electronic filing 
system, the contracting officer shall indicate thereon the date of 
receipt and shall forward the notice of appeal, including any envelope 
or other wrapping indicating the date of mailing, within 10 days to the 
Postal Service General Counsel's Office. A designee of the General 
Counsel promptly shall enter the resulting case into the electronic 
filing system.

[80 FR 31304, June 2, 2015]



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. 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; 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.
    (c) Organization of appeal file. Documents in the appeal file or 
supplement, as applicable 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 to 
exchange or electronically file bulky, lengthy, or out-of-size 
documents, or tangible evidence in the appeal file on a showing of 
impracticality or undue burden. Documents or tangible evidence subject 
to a waiver will be available for inspection at the Board.
    (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

[[Page 300]]

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.

[74 FR 20592, May 5, 2009, as amended at 80 FR 31304, June 2, 2015]



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.
    (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. 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. This pleading shall fulfill the generally

[[Page 301]]

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; 80 
FR 31304, June 2, 2015]



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 filed with 
the Board at least 15 days prior to the date set for hearing.

[74 FR 20592, May 5, 2009, as amended at 76 FR 37660, June 28, 2011; 80 
FR 31305, June 2, 2015]



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

[[Page 302]]

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 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 file with 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

[[Page 303]]

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 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.

[74 FR 20592, May 5, 2009, as amended at 80 FR 31305, June 2, 2015]



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.
    (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.

[74 FR 20592, May 5, 2009, as amended at 80 FR 31305, June 2, 2015]



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

[[Page 304]]

for protecting the secrecy of confidential information or documents. 
Except in connection with motions to compel or for a protective order, 
discovery requests and responses should not be filed with the Board.
    (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 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.

[74 FR 20592, May 5, 2009, as amended at 80 FR 31305, June 2, 2015]



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.

[[Page 305]]

    (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]



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.

[[Page 306]]



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 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. Any appellant 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 register in the 
electronic filing system, and file a notice of appearance. The notice of 
appearance must include an email address, mailing address, telephone 
number, fax number, and a 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 register in the electronic filing system, and file a 
written notice of appearance with the Board. The notice of appearance 
must include an email address, mailing address, telephone number, fax 
number, and a 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 email 
address, mailing address, telephone number, or fax number, and must 
enter the appropriate changes promptly in the electronic filing system.

[80 FR 31305, June 2, 2015]



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, email address, mailing address, telephone 
number, and fax number of the person who will assume responsibility for 
representation of the party in question.

[80 FR 31305, June 2, 2015]



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.

[[Page 307]]

    (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 to both 
parties through the electronic filing system, or otherwise as 
appropriate. 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.

[74 FR 20592, May 5, 2009, as amended at 80 FR 31305, June 2, 2015]



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 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;

[[Page 308]]

    (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:
    (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

[[Page 309]]

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 under this part docketed on 
or after July 2, 2015.

[80 FR 31305, June 2, 2015]

                           PART 956 [RESERVED]



PART 957_RULES OF PRACTICE IN PROCEEDINGS RELATIVE TO DEBARMENT FROM
CONTRACTING--Table of Contents



Sec.
957.1 Authority for rules.
957.2 Scope of rules.
957.3 Definitions.
957.4 Authority of the Hearing Officer.
957.5 Case initiation.
957.6 Filing documents for the record.
957.7 Failure to appear at the hearing.
957.8 Hearings.
957.9 Appearances.
957.10 Conduct of the hearing.
957.11 Witness fees.
957.12 Transcript.
957.13 Proposed findings of fact.
957.14 Findings of fact.
957.15 Computation of time.
957.16 Official record.
957.17 Public information.
957.18 Ex parte communications.

    Authority: 39 U.S.C. 204, 401.

    Source: 80 FR 55767, Sept. 17, 2015, 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. 204, 401).



Sec.  957.2  Scope of rules.

    The rules in this part apply to proceedings initiated pursuant to 
paragraphs (g)(2) or (h)(2) of Sec.  601.113 of this subchapter.



Sec.  957.3  Definitions.

    (a) Vice President means the Vice President, Supply Management, or 
the Vice President's representative for the purpose of carrying out the 
provisions of Sec.  601.113 of this subchapter.
    (b) General Counsel includes the Postal Service's General Counsel 
and any designated representative within the Office of the General 
Counsel.
    (c) Judicial Officer includes the Postal Service's Judicial Officer, 
Associate Judicial Officer, and Acting Judicial Officer.
    (d) Debarment has the meaning given by paragraph (b)(2) of Sec.  
601.113 of this subchapter.
    (e) Respondent means any individual, firm or other entity which has 
been served a written notice of proposed debarment pursuant to Sec.  
601.113(h), or which previously has been debarred, as provided in Sec.  
601.113(g)(2) of this subchapter.
    (f) Hearing Officer means the judge assigned to the case by the 
Judicial Officer. The Hearing Officer may be the Judicial Officer, 
Associate Judicial Officer, Administrative Law Judge or an

[[Page 310]]

Administrative Judge who is a member of the Postal Service Board of 
Contract Appeals.
    (g) Recorder means the Recorder of the Judicial Officer Department 
of the United States Postal Service, 2101 Wilson Boulevard, Suite 600, 
Arlington, VA 22201-3078. The Recorder's telephone number is (703) 812-
1900, fax number is (703) 812-1901, and the Judicial Officer's Web site 
is http://www.about.usps.com/ who-we-are/judicial/ welcome.htm.



Sec.  957.4  Authority of the Hearing Officer.

    The Hearing Officer's authority includes, but is not limited to, the 
following:
    (a) Ruling on all motions or requests by the parties.
    (b) Issuing notices, orders, or memoranda to the parties concerning 
the hearing proceedings.
    (c) Conducting conferences with the parties. The Hearing Officer 
will prepare a Memorandum of Conference, which will be transmitted to 
both parties and which serves as the official record of that conference.
    (d) Determining whether an oral hearing will be conducted, and 
setting the place, date, and time for such a hearing.
    (e) Administering oaths or affirmations to witnesses.
    (f) Conducting the proceedings and the hearing in a manner to 
maintain discipline and decorum while ensuring that relevant, reliable 
and probative evidence is elicited, but irrelevant, immaterial or 
repetitious evidence is excluded. The Hearing Officer in his or her 
discretion may examine witnesses to ensure that a satisfactory record is 
developed.
    (g) Establishing the record. The weight to be attached to evidence 
will rest within the discretion of the Hearing Officer. Except as the 
Hearing Officer may otherwise order, no proof shall be received in 
evidence after completion of a hearing. The Hearing Officer may require 
either party, with appropriate notice to the other party, to submit 
additional evidence on any relevant matter.
    (h) Granting reasonable time extensions or other relief for good 
cause shown, in the Hearing Officer's sole discretion.
    (i) Issuing findings of fact. The Hearing Officer will issue 
findings of fact to the Vice President within 30 days from the close of 
the record, to the extent practicable.



Sec.  957.5  Case initiation.

    (a) Upon receipt of a request or referral from the Vice President, 
the Recorder will docket a case under this Part. Following docketing, 
the Judicial Officer will assign a Hearing Officer. The Hearing Officer 
will establish the schedule for the proceeding, perform all judicial 
duties under this Part and render Findings of Fact. Whenever 
practicable, a hearing should be conducted within 30 days of the date of 
docketing.
    (b) The request or referral from the Vice President shall include 
the notice of proposed debarment and the information or argument 
submitted by the Respondent pursuant to paragraphs (g) or (h) of Sec.  
601.113 of this subchapter.



Sec.  957.6  Filing documents for the record.

    The parties shall file documents, permitted by the rules in this 
part or required by the Hearing Officer, in the Judicial Officer 
Department's electronic filing system. The Web site for electronic 
filing is https://uspsjoe.justware.com/ justiceweb. Documents submitted 
using that system are considered filed as of the date and time (Eastern 
Time) reflected in the system. Orders issued by the Hearing Officer 
shall be considered received by the parties on the date posted to the 
electronic filing system.



Sec.  957.7  Failure to appear at the hearing.

    If a party fails to appear at the hearing, the Hearing Officer may 
proceed with the hearing, receive evidence and issue findings of fact 
without requirement of further notice to the absent party.



Sec.  957.8  Hearings.

    Hearings ordinarily will be conducted in the Judicial Officer 
Department courtroom at 2101 Wilson Boulevard, Suite 600, Arlington, VA 
22201-3078.

[[Page 311]]

However, the Hearing Officer, in his or her discretion, may order the 
hearing to be conducted at another location, or by another means such as 
by video.



Sec.  957.9  Appearances.

    (a) An individual Respondent may appear in his or her own behalf, a 
corporation may appear by an officer thereof, a partnership or joint 
venture may appear by a member thereof, or any of these may appear by a 
licensed attorney.
    (b) After a request for a hearing has been filed pursuant to the 
rules in this part, the General Counsel shall designate a licensed 
attorney as counsel assigned to handle the case.
    (c) All counsel, or a self-represented Respondent, shall register in 
the electronic filing system, and request to be added to the case. 
Counsel also promptly shall file notices of appearance.
    (d) An attorney for any party who has filed a notice of appearance 
and who wishes to withdraw must file a motion requesting withdrawal, 
explaining the reasons supporting the motion, and identifying the name, 
email address, mailing address, telephone number, and fax number of the 
person who will assume responsibility for representation of the party in 
question.



Sec.  957.10  Conduct of the hearing.

    The Hearing Officer may approve or disapprove witnesses in his or 
her discretion. All testimony will be taken under oath or affirmation, 
and subject to cross-examination. The Hearing Officer 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 Hearing Officer will consider the 
Federal Rules of Evidence for guidance regarding admissibility of 
evidence and other evidentiary issues, he or she is not bound by those 
rules. The weight to be attached to evidence presented in any particular 
form will be within the discretion of the Hearing Officer, 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 Hearing Officer 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.  957.11  Witness fees.

    Each party is responsible for the fees and costs for its own 
witnesses.



Sec.  957.12  Transcript.

    Testimony and argument at hearings shall be reported verbatim, 
unless the Hearing Officer otherwise orders. Transcripts of the 
proceedings will be made available or provided to the parties.



Sec.  957.13  Proposed findings of fact.

    (a) The Hearing Officer may direct the parties to submit proposed 
findings of fact and supporting explanations 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.
    (b) Proposed findings of fact 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 
supporting the proposed findings.



Sec.  957.14  Findings of fact.

    The Hearing Officer shall issue written findings of fact, and 
transmit them to the Vice President. Copies will be sent to the parties.



Sec.  957.15  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.

[[Page 312]]



Sec.  957.16  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.  957.17  Public information.

    The Postal Service shall maintain for public inspection copies of 
all findings of fact issued under this Part, and make them available 
through the Postal Service Web site. The Recorder maintains the complete 
official record of every proceeding.



Sec.  957.18  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 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.
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.
958.21 Computation of time.
958.22 Continuances and extensions.
958.23 Settlement.

    Authority: 39 U.S.C. 204, 401, 3001, 3018; 5 U.S.C. 554.

    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 Chief Administrative Law Judge to conduct a hearing, 
or to the Judicial Officer, if an Administrative Law Judge is not 
available.
    (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.

[74 FR 18631, Apr. 24, 2009, as amended at 81 FR 40193, June 21, 2016]

[[Page 313]]



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, 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.

[[Page 314]]



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;
    (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;

[[Page 315]]

    (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 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

[[Page 316]]

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 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

[[Page 317]]

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.
    (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) All pleadings and documents required under this part must be 
filed using the Judicial Officer electronic filing system unless the 
presiding officer permits otherwise. The Judicial Officer electronic 
filing system Web site is accessible 24 hours a day at https://
uspsjoe.justware.com/ justiceweb. Documents submitted using the 
electronic filing system are considered filed as of the date/time 
(Eastern Time) reflected in the system. Documents mailed to the Recorder 
are considered filed on the date mailed as evidenced by a United States 
Postal Service postmark. Filings by any other means are considered filed 
upon receipt by the

[[Page 318]]

Recorder of a complete copy of the filing during normal business hours. 
Normal business hours are between 8:45 a.m. and 4:45 p.m. (Eastern 
Time), Monday through Friday except holidays.
    (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.

[74 FR 18631, Apr. 24, 2009, as amended at 81 FR 40193, June 21, 2016]



Sec.  958.20  Service.

    If both parties are participating in the electronic filing system, 
separate service upon the opposing party is not required. Otherwise, 
documents shall be served personally or by mail on the opposing party, 
noting on the document filed, or on the transmitting letter, that a copy 
has been so furnished.

[81 FR 40194, June 21, 2016]



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 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 address and business hours; electronic filing.
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; 601-606; 18 U.S.C. 1693-1699; 5 
U.S.C. 554; 39 CFR 310, 320.

    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

[[Page 319]]

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 address and business hours; electronic filing.

    (a) The offices of the officials identified in these rules are 
located at 2101 Wilson Boulevard, Suite 600, Arlington, VA 22201-3078. 
Normal Business hours are between 8:45 a.m. and 4:45 p.m. (Eastern 
Time), Monday through Friday except holidays.
    (b) The Judicial Officer electronic filing system Web site is 
accessible 24 hours a day at https://uspsjoe.justware.com/ justiceweb.

[81 FR 40194, June 21, 2016]



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) 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

[[Page 320]]

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) All documents required under this part must be filed using the 
electronic filing system unless the presiding officer permits otherwise. 
If both parties are participating in the electronic filing system, 
separate service upon the opposing party is not required. Otherwise, 
documents shall be served personally or by mail on the opposing party, 
noting on the document filed, or on the transmitting letter, that a copy 
has been so furnished.
    (b) Documents shall be dated and state the title of the proceeding 
and, except initial petitions, the docket number. Documents submitted 
using the electronic filing system are considered filed as of the date/
time (Eastern Time) reflected in the system. Documents mailed to the 
Recorder are considered filed on the date mailed as evidenced by a 
United States Postal Service postmark. Filings by any other means are 
considered filed upon receipt by the Recorder of a complete copy of the 
filing during normal business hours.

[81 FR 40194, June 21, 2016]



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

[[Page 321]]

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. 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,

[[Page 322]]

    (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]



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

[[Page 323]]

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]



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]

[[Page 324]]



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 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:

[[Page 325]]

    (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 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

[[Page 326]]

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 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).

[[Page 327]]

    (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.
    (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

[[Page 328]]

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.
    (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]

[[Page 329]]



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 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

[[Page 330]]

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 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

[[Page 331]]

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.



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

[[Page 332]]

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 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 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.
961.5 Effect of filing a petition.
961.6 Filing, docketing, and serving documents; computation of time; 
          representation of parties.
961.7 Answer to petition.
961.8 Hearing Official authority and responsibilities.
961.9 Opportunity for oral hearing.
961.10 Effect of Hearing Official's decision; motion for 
          reconsideration.
961.11 Consequences for failure to comply with rules.
961.12 Ex parte communications.

    Authority: 39 U.S.C. 204, 401; 5 U.S.C. 5514.

[[Page 333]]


    Source: 79 FR 22026, Apr. 21, 2014, 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, challenging 
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 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. In such cases, all references to Postal Service 
within these rules shall be construed to refer to the creditor Federal 
agency involved.



Sec.  961.3  Definitions.

    As used in this part:
    (a) Employee refers to a current employee of the Postal Service who 
is alleged to be indebted to the Postal Service; or to an employee of 
another Federal agency who is alleged to be indebted to that other 
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 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.
    (d) Judicial Officer refers to the Judicial Officer, Associate 
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, including the provision of notice 
of the procedures under this Part, before involuntary collection 
deductions can be taken from an employee's salary.
    (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, located at 2101 Wilson Boulevard, Suite 600, 
Arlington, VA 22201-3078. The Recorder's telephone number is (703) 812-
1900, and the fax number is (703) 812-1901.



Sec.  961.4  Employee petition for a hearing.

    (a) If an employee desires a hearing, prescribed by section 5 of the 
Debt Collection Act, to challenge the Postal Service's determination of 
the existence or amount of a debt, or to challenge the involuntary 
repayment terms proposed by the Postal Service, the employee must file a 
written petition electronically at https://uspsjoe.justware.com/ 
justiceweb, or by mail at Recorder, Judicial Officer Department, United 
States Postal Service, 2101 Wilson Blvd., Suite 600, Arlington, VA 
22201-3078, on or before the fifteenth (15th) calendar day following the 
receipt of the Postal Service's ``Notice of Involuntary Administrative 
Salary Offsets Under the Debt Collection Act.'' The Hearing Official, in 
his or her discretion may waive this deadline upon a demonstration of 
good cause. In the event that the Postal Service initiated involuntary 
administrative salary offsets without having issued a Notice as required 
by the Debt Collection Act, the Hearing Official, in his or her 
discretion, may retain authority to resolve the debt assessment as if a 
Notice had been issued, and may

[[Page 334]]

order the Postal Service to return any improperly offset money.
    (b) A sample petition is available through the Judicial Officer 
Electronic Filing Web site (https://uspsjoe.justware.com/ justiceweb). 
The hearing petition shall 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, the employee's work address, home 
address, work telephone number, home telephone number, and email 
address, if any, or other address and telephone number at which the 
employee may be contacted during business hours;
    (3) A statement of the date on which 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 challenges:
    (i) The existence of the debt identified in the Notice of 
Involuntary Administrative Salary Offsets;
    (ii) the amount of the debt identified in the Notice; and/or
    (iii) the involuntary repayment terms identified by the Postal 
Service in the Notice. For each challenge, the employee's petition shall 
indicate the basis of the employee's disagreement. The employee should 
identify and explain the facts, evidence, and legal arguments which 
support his or her position;
    (5) Copies of all records in the employee's possession which relate 
to the debt; and
    (6) If an employee contends that the Postal Service's proposed 
offset schedule would result in a severe financial hardship on the 
employee, his or her spouse, and dependents, the employee shall identify 
an alternative offset schedule. As directed by the Hearing Official, the 
employee shall provide a statement and supporting documents indicating 
the employee's financial status. This statement should address 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 shall file with the Recorder, any additional 
information directed by the Hearing Official.

[79 FR 22026, Apr. 21, 2014, as amended at 80 FR 54722, Sept. 11, 2015]



Sec.  961.5  Effect of filing a petition.

    Upon receipt and docketing of the employee's petition for a hearing, 
further collection activity by the Postal Service must cease, as 
required by section 5 of the Debt Collection Act until the petition is 
resolved by the Hearing Official.



Sec.  961.6  Filing, docketing and serving documents; computation of time;
representation of parties.

    (a) Filing. After a petition is filed, all documents relating to the 
Debt Collection Act hearing proceedings must be filed using the 
electronic filing system unless the Hearing Official permits otherwise. 
Documents submitted using the electronic filing system are considered 
filed as of the date/time (Eastern Time) reflected in the system. 
Documents mailed to the Recorder are considered filed on the date mailed 
as evidenced by a United States Postal Service postmark. Filings by any 
other means are considered filed upon receipt by the Recorder of a 
complete copy of the filing during normal business hours (Normal 
Recorder office business hours are between 8:45 a.m. and 4:45 p.m., 
Eastern Time). If both parties are participating via the electronic 
filing system, separate service upon the opposing party is not required. 
Otherwise, documents shall be served personally or by mail on the 
opposing party, noting on the document filed, or on the transmitting 
letter, that a copy has been so furnished.
    (b) Docketing. The Recorder will maintain a record of Debt 
Collection Act proceedings and will assign a docket number to each such 
case. After notification of the docket number, the employee and the 
Postal Service's representative 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

[[Page 335]]

until the close of business on the next business day. Requests for 
extensions of time shall be made in writing prior to the date on which 
the submission is due, state the reason for the extension request, 
represent that the moving party has contacted the opposing party about 
the request, or made reasonable efforts to do so, and indicate whether 
the opposing party consents to the extension. Requests for extensions of 
time submitted after the date on which the submission was due shall 
explain why the moving party was unable to request an extension prior to 
the deadline.
    (d) Representation of parties. The representative of the Postal 
Service, as designated by the General Counsel, shall file a notice of 
appearance as soon as practicable, but no later than the date for filing 
the answer. If an employee has a representative, he or she also shall 
file a notice of appearance as soon as practicable, and further 
transmissions of documents and other communications by and with the 
employee shall be made through his or her representative.

[79 FR 22026, Apr. 21, 2014, as amended at 80 FR 54722, Sept. 11, 2015]



Sec.  961.7  Answer to petition.

    Within 15 days from the date of receiving the petition, the Postal 
Service's representative shall file an answer to the petition, and 
attach all available relevant records and documents in support of the 
Postal Service's debt claim, and/or the administrative salary offset 
schedule proposed by the Postal Service for collecting any such claim. 
The answer shall provide a clear and thorough description of the basis 
for the Postal Service's determination of the alleged debt, its 
calculation of the amount of the alleged debt, and/or its proposed 
offset schedule.



Sec.  961.8  Hearing Official authority and responsibilities.

    The Hearing Official's authority includes, but is not limited to, 
the following:
    (a) Ruling on all motions or requests by the parties.
    (b) Issuing notices, orders or memoranda to the parties concerning 
the hearing proceedings.
    (c) Conducting telephone conferences with the parties to expedite 
the proceedings. The Hearing Official will prepare a Memorandum of 
Telephone Conference, which shall be transmitted to both parties and 
which serves as the official record of that conference.
    (d) After considering the positions of the parties, determining 
whether an oral hearing (or alternatively, a hearing solely on written 
submissions) shall be conducted, and setting the place, date, and time 
for such a hearing.
    (e) Administering oaths or affirmations to witnesses.
    (f) 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. The Hearing Official in his or her 
discretion may examine witnesses to ensure that a satisfactory record is 
developed.
    (g) Establishing the record in the case. The weight to be attached 
to any evidence of record will rest within the discretion of the Hearing 
Official. Except as the Hearing Official may otherwise order, no proof 
shall be received in evidence after completion of an oral hearing or, in 
cases submitted on the written record, after notification by the Hearing 
Official that the record is closed. The Hearing Official may require 
either party, with appropriate notice to the other party, to submit 
additional evidence on any relevant matter.
    (h) Granting reasonable time extensions or other relief for good 
cause shown in the Hearing Official's sole discretion.
    (i) Issuing the final decision. The decision must include the 
determination of the amount and validity of the alleged debt and, where 
applicable, the repayment schedule. The Hearing Official will issue the 
decision as soon as practicable after the close of the record. 
Collection activity remains stayed until the decision has issued.



Sec.  961.9  Opportunity for oral hearing.

    An oral hearing shall be conducted in the sole discretion of the 
Hearing Official. An oral hearing may be conducted

[[Page 336]]

in-person, by telephone, by video conference, or other appropriate means 
as directed by the Hearing Official. When the Hearing Official 
determines that an oral hearing shall not be conducted, the decision 
shall be based solely on the written submissions. The Hearing Official 
shall arrange for the recording and transcription of an oral hearing, 
which shall serve as the official record of the hearing. In the event of 
an unexcused absence, the hearing may proceed without the participation 
of the absent party.



Sec.  961.10  Effect of Hearing Official's decision; motion for
reconsideration.

    (a) After the receipt of written submissions or after the conclusion 
of the hearing and the receipt of post-hearing briefs, if any, the 
Hearing Official shall issue a written decision, which shall include the 
findings of fact and conclusions of law, relied upon.
    (b) The Hearing Official shall send each party a copy of the 
decision. 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 within 10 days from receipt of the 
decision and shows good cause 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 a collection 
action authorized by the Hearing Official's decision.



Sec.  961.11  Consequences for failure to comply with rules.

    (a) The Hearing Official may determine that the employee has 
abandoned the right to a hearing, and that administrative offset may be 
initiated if the employee files his or her petition late without good 
cause; or files a withdrawal of the employee's petition for a hearing.
    (b) The Hearing Official may determine that the administrative 
offset may not be initiated if the Postal Service fails to file the 
answer or files the answer late without good cause; or files a 
withdrawal of the debt determination at issue.
    (c) If a party fails to comply with these Rules or the Hearing 
Official's orders, the Hearing Official may take such action as he or 
she deems reasonable and proper under the circumstances, including 
dismissing or granting the petition as appropriate.



Sec.  961.12  Ex parte communications.

    Ex parte communications are not allowed between a party and the 
Hearing Official or the Official's staff. Ex parte communication means 
an oral or written communication, not on the public record, with one 
party only with respect to which reasonable prior notice to all parties 
is not given, but it shall not include requests for status reports or 
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.
962.24 Computation of time.
962.25 Continuances and extensions.
962.26 Settlement.
962.27 Limitations.


[[Page 337]]


    Authority: 31 U.S.C. 3801-12; 39 U.S.C. 401; 5 U.S.C. 554.

    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.
    (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 Chief Administrative Law Judge 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; 81 FR 40194, June 21, 2016]



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

[[Page 338]]

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.
    (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.

[[Page 339]]

    (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 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

[[Page 340]]

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 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

[[Page 341]]

    (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) 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

[[Page 342]]

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.



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.

[[Page 343]]



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 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) All pleadings and documents required under this part must be 
filed using the Judicial Officer electronic filing system unless the 
presiding officer permits otherwise. The Judicial Officer electronic 
filing system Web site is accessible 24 hours a day at https://
uspsjoe.justware.com/ justiceweb. 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

[[Page 344]]

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) Documents submitted using the electronic filing system are 
considered filed as of the date/time (Eastern Time) reflected in the 
system. Documents mailed to the Recorder are considered filed on the 
date mailed as evidenced by a United States Postal Service postmark. 
Filings by any other means are considered filed upon receipt by the 
Recorder of a complete copy of the filing during normal business hours. 
Normal business hours are between 8:45 a.m. and 4:45 p.m. (Eastern 
Time), Monday through Friday except holidays.
    (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 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;
81 FR 40194, June 21, 2016]



Sec.  962.23  Service.

    If both parties are participating in the electronic filing system, 
separate service upon the opposing party is not required. Otherwise, 
documents shall be served personally or by mail on the opposing party, 
noting on the document filed, or on the transmitting letter, that a copy 
has been so furnished.

[81 FR 40194, June 21, 2016]



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.

[[Page 345]]

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.
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 
through the Judicial Officer Department electronic filing system at 
https://uspsjoe.justware.com/ justiceweb.
    (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. All documents required under this part must be filed 
using the electronic filing system (https://uspsjoe.justware.com/ 
justiceweb) unless the presiding officer permits otherwise. Documents 
submitted using the electronic filing system are considered filed as of 
the date/time (Eastern Time) reflected in the system. Documents mailed 
to the Recorder are considered filed on the date mailed as evidenced by 
a United States Postal Service postmark. Filings by any other means are 
considered filed upon receipt by the Recorder of a complete copy of the 
filing during normal business hours. Normal business hours are between 
8:45 a.m. and 4:45 p.m. (Eastern Time), Monday through Friday except 
holidays. If both parties are participating in the

[[Page 346]]

electronic filing system, separate service upon the opposing party is 
not required. Otherwise, documents shall be served personally or by mail 
on the opposing party, noting on the document filed, or on the 
transmitting letter, that a copy has been so furnished. The Recorder 
shall maintain a docket and the files in all proceedings.
    (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; 81 FR 40194, June 21, 2016]



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:
    (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

[[Page 347]]

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.



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

[[Page 348]]

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 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; 5 U.S.C. 554.

    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

[[Page 349]]

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 or her 
attorney, shall be filed via the Judicial Officer Electronic filing 
system at https://uspsjoe.justware.com/ justiceweb or via certified mail 
to the Recorder, Judicial Officer Department, United States Postal 
Service, 2101 Wilson Boulevard, Suite 600, Arlington, VA 22201-3078. The 
Petition must be filed 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 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.
    (e) Filing and service. All documents required under this part must 
be filed using the electronic filing system unless the presiding officer 
permits otherwise. Documents submitted using the electronic filing 
system are considered filed as of the date/time (Eastern Time) reflected 
in the system. Documents mailed to the Recorder are considered filed on 
the date mailed as evidenced by a United States Postal Service postmark. 
Filings by any other means are considered filed upon receipt by the 
Recorder of a complete copy of the filing during normal business hours. 
Normal business hours are between 8:45 a.m. and 4:45 p.m. (Eastern 
Time), Monday through Friday except holidays. If both parties are 
participating in the electronic filing system, separate service upon the 
opposing party is not required. Otherwise, documents shall be served 
personally or by mail on the opposing party, noting on the document 
filed, or on the transmitting letter, that a copy has been so furnished.

[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 ; 81 FR 40194, June 
21, 2016]



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

[[Page 350]]

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 or the Judicial Officer. The Chief 
Administrative Law Judge shall assign cases. The Judicial Officer may 
preside at the hearing if an Administrative Law Judge is unavailable.
    (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;
    (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.

[52 FR 36763, Oct. 1, 1987, as amended at 81 FR 40195, June 21, 2016]



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

[[Page 351]]

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 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.

[[Page 352]]



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 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

[[Page 353]]

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. 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,

[[Page 354]]

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 via the Judicial Officer electronic filing system (https://
uspsjoe.justware.com/ justiceweb) 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. Unless the presiding officer otherwise permits, 
all documents relative to this proceeding must be filed using the 
electronic filing system.

[81 FR 40195, June 21, 2016]



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]



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.

[[Page 355]]



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]



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: 31 U.S.C. 3716; 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.

    (a) The rules in this part apply to any petition filed by a former 
postal employee:
    (1) 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, that the Postal Service intends to 
collect by administrative offset pursuant to the authority of 31 U.S.C. 
3716 and in accordance with the regulations contained in the Employee 
and Labor Relations Manual, sections 470 and 480; and/or
    (2) To challenge the administrative offset schedule proposed by the 
Postal Service for collecting any such debt.
    (b) The regulations in this part are consistent with the provisions 
of the

[[Page 356]]

Federal Claims Collection Standards pertaining to administrative offset.

[77 FR 65104, Oct. 25, 2012]



Sec.  966.3  Definitions.

    (a) Accounting Service Center refers to the United States Postal 
Service Eagan Accounting Service Center or its successor installation.
    (b) 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.
    (c) Debt refers to any amount determined by the Postal Service to be 
owed to the Postal Service by a former employee.
    (d) Federal Claims Collection Standards or FCCS refers to 
regulations promulgated by the Department of Justice and the Department 
of the Treasury and codified at 31 CFR parts 900 through 904.
    (e) 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.
    (f) General Counsel refers to the General Counsel of the Postal 
Service, and includes a designated representative.
    (g) 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.
    (h) Judicial Officer refers to the Judicial Officer, Associate 
Judicial Officer, or Acting Judicial Officer of the Postal Service.
    (i) Reconsideration refers to the review of an alleged debt and/or 
the proposed offset schedule conducted by the Accounting Service Center 
at the request of a former employee alleged to be indebted to the Postal 
Service.
    (j) Recorder refers to the Recorder, Judicial Officer Department, 
United States Postal Service, 2101 Wilson Boulevard, Suite 600, 
Arlington, VA 22201-3078. The recorder's telephone number is (703) 812-
1900, and the Judicial Officer's Web site is http://about.usps.com/ who-
we-are/judicial/ welcome.htm. The fax number is (703) 812-1901.

[77 FR 65104, Oct. 25, 2012]



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 (ELM);
    (2) The former employee has received a Notice from the Accounting 
Service Center in compliance with section 472.1 of the ELM and the 
administrative offset provisions of the FCCS, informing the former 
employee of the debt and an offset schedule to satisfy the debt, the 
former employee's rights under 31 U.S.C. 3716(a), the right to request 
reconsideration of the debt and/or offset schedule from the Accounting 
Service Center, and the right to request review under this part; and
    (3) The former employee has requested reconsideration of the Postal 
Service's determination of the existence or amount of the alleged debt 
and/or the offset schedule proposed by the Postal Service within thirty 
(30) calendar days of receiving the notice referenced in paragraph 
(a)(2), and either has received a reconsideration determination, or 
within sixty (60) calendar days from the reconsideration request has not 
received a reconsideration determination.
    (b) Notwithstanding the provisions of this part, the Postal Service 
may omit the procedures for notice and reconsideration in this part 
under certain circumstances as set forth below:
    (1) If the Postal Service first learns of the existence of the 
amount owed by the former employee when there is insufficient time 
before payment would be made to the former employee to allow for prior 
notice and an opportunity for review under this part. When

[[Page 357]]

prior notice and an opportunity for review are omitted, the Postal 
Service will give the former employee notice and an opportunity for 
review as soon as practicable and will promptly refund any money 
ultimately found not to have been owed. In such circumstances whereby 
prior notice and an opportunity for pre-deprivation review are omitted, 
the former employee may submit a petition for review under this part.
    (2) If an agency (including the Postal Service) has already given 
the former employee any of the required notice and review opportunities 
set forth in the FCCS with respect to a particular debt. In such a 
situation, the Postal Service need not duplicate such notice and review 
opportunities before taking an administrative offset.
    (3) If a former bargaining unit employee of the Postal Service 
pursues, in accordance with the applicable provisions of his or her CBA, 
a grievance concerning the Postal Service's claim, including, but not 
limited to, the existence of a debt owed to the Postal Service, the 
amount of such debt, and/or the proposed repayment schedule, and none of 
the circumstances set forth in ELM section 483.1 apply;
    (4) If otherwise allowed by law, including, but not limited to, the 
administrative offset provisions of the FCCS.
    (c) Within thirty (30) calendar days after the date of receipt of 
the Accounting Service Center's decision upon reconsideration, after the 
expiration of sixty (60) calendar days after a request for 
reconsideration where a reconsideration determination is not made, or 
following an administrative offset taken without prior notice and 
opportunity for reconsideration pursuant to paragraph (b)(1) of this 
section, the former employee must file a written petition electronically 
at https://uspsjoe.justware.com/ justiceweb, or by mail at Recorder, 
Judicial Officer Department, United States Postal Service, 2101 Wilson 
Blvd., Suite 600, Arlington, VA 22201-3078.
    (d) A sample petition is available through the Judicial Officer 
Electronic Filing Web site (https://uspsjoe.justware.com/ justiceweb). 
The petition must include the following:
    (1) The words, ``Petition for Review Under 39 CFR Part 966'';
    (2) The former employee's name;
    (3) The former employee's home address, email address (if 
available), 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 
Accounting Service Center's decision upon reconsideration of the alleged 
debt and a copy of the decision;
    (5) 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
    (6) 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.
    (e) 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.

[77 FR 65105, Oct. 25, 2012, as amended at 80 FR 54723, Sept. 11, 2015]



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. After a petition is filed, all documents required under 
this part must be filed using the electronic filing system unless the 
Hearing Official permits otherwise. Documents submitted using the 
electronic filing system are considered filed as of the date/time

[[Page 358]]

(Eastern Time) reflected in the system. Documents mailed to the Recorder 
are considered filed on the date mailed as evidenced by a United States 
Postal Service postmark. Filings by any other means are considered filed 
upon receipt by the Recorder of a complete copy of the filing during 
normal business hours (Normal Recorder office business hours are between 
8:45 a.m. and 4:45 p.m., Eastern Time). If both parties are 
participating via the electronic filing system, separate service upon 
the opposing party is not required. Otherwise, documents shall be served 
personally or by mail on the opposing party, noting on the document 
filed, or on the transmitting letter, that a copy has been so furnished.
    (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. Requests for extensions of time 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 
efforts to do so, and shall indicate whether the opposing party consents 
to the extension.
    (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, or 
designee. The representative of the Postal Service, as designated by the 
General Counsel, shall file a notice of appearance as soon as 
practicable, and no later than the date for filing the answer. If a 
former employee has a representative, further transmissions of documents 
and other communications by and with the former employee shall be made 
through his or her representative rather than directly with the former 
employee.

[77 FR 65105, Oct. 25, 2012, as amended at 80 FR 54723, Sept. 11, 2015]



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. The answer shall provide a 
clear and detailed description of the basis for the Postal Service's 
determination of the alleged debt and its calculation of the amount of 
the alleged debt and/or its proposed offset schedule, as appropriate.

[77 FR 65106, Oct. 25, 2012]



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). The Hearing Official's Memorandum of 
Telephone Conference serves as the official record of that conference;
    (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 disputed issues, and that irrelevant, immaterial, or 
repetitious evidence is excluded. The Hearing Official in his or her 
discretion may examine

[[Page 359]]

witnesses to ensure that a satisfactory record is developed;
    (7) Establishing the record in the case. Except as the Hearing 
Official may otherwise order in his or her discretion, no proof shall be 
received in evidence after completion of an oral hearing or, in cases 
submitted on the written record, after notification by the Hearing 
Official that the case is ready for decision. The weight to be attached 
to any evidence of record will rest within the sound discretion of the 
Hearing Official. The Hearing Official may require either party, with 
appropriate notice to the other party, to submit additional evidence on 
any relevant matter;
    (8) Issuing an initial decision or one on remand; and
    (9) Granting reasonable time extensions or other relief for good 
cause shown.
    (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.

[77 FR 65106, Oct. 25, 2012]



Sec.  966.9  Opportunity for oral hearing.

    An oral hearing shall be held in the sole discretion of the Hearing 
Official. 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 shall not be conducted, the decision 
shall be based solely on written submissions. The Hearing Official shall 
arrange for the recording and transcription of an oral hearing, which 
shall serve as the official record of the hearing. The unexcused absence 
of a party at the time and place set for hearing may not be occasion for 
delay at the discretion of the Hearing Official. In the event of such 
absence, the hearing may proceed without the participation of the absent 
party.

[77 FR 65106, Oct. 25, 2012]



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 the final agency 
decision thirty (30) days after its issuance unless, before the 
expiration of that time, a party files an appeal with the Judicial 
Officer, or the Judicial Officer, in his or her sole discretion, elects 
to conduct a review of the decision on his or her own initiative. During 
such review or appeal consideration, the Judicial Officer will accept 
all findings of fact in the original decision unless clearly erroneous. 
If following appeal or review, the Judicial Officer affirms the original 
decision, that decision becomes the final agency decision with no 
further right of appeal within the agency.

[77 FR 65106, Oct. 25, 2012]



Sec.  966.12  Waiver of rights.

    (a) The Hearing Official may determine that the former employee has 
waived the right to a hearing, and that administrative offset may be 
initiated if the former employee files a petition for hearing after the 
period prescribed in these Rules and fails to demonstrate to the 
satisfaction of the Hearing Official good cause for the delay; or has 
filed a withdrawal of the former employee's previous petition for a 
hearing.
    (b) The Hearing Official may determine that the Postal Service has 
waived the alleged debt at issue, and that the administrative offset may 
not be initiated if the Postal Service fails to file the answer within 
the period prescribed by the Rules and fails to demonstrate to the 
satisfaction of the

[[Page 360]]

Hearing Official good cause for the delay; or has filed a withdrawal of 
the debt determination at issue.
    (c) In addition, whenever a record discloses the failure of either 
party to file documents required by these rules, respond to notices or 
correspondence from the Hearing Official, comply with orders of the 
Hearing Official, participate in conferences, fail to treat the 
proceedings with the proper decorum, or otherwise indicate an intention 
not to continue the prosecution or defense of a petition, the Hearing 
Official may issue an order requiring the offending party to show cause 
why the petition should not be dismissed or granted, as appropriate. If 
the offending party shall fail to show cause, the Hearing Official may 
take such action as he or she deems reasonable and proper under the 
circumstances, including dismissal or granting of the petition as 
appropriate.

[77 FR 65106, Oct. 25, 2012]



Sec.  966.13  Ex parte communications.

    Ex parte communications are not allowed between a party and the 
Hearing Official or the Official's staff. For these purposes, ex parte 
communication means an oral or written communication, not on the public 
record, with one party only with respect to which reasonable prior 
notice to all parties is not given, but it shall not include requests 
for status reports or procedural matters. A memorandum of any 
communication between the Hearing Official and a party will be 
transmitted to both parties.

[77 FR 65106, Oct. 25, 2012]

                        PARTS 967	999 [RESERVED]

[[Page 361]]



                CHAPTER III--POSTAL REGULATORY COMMISSION




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

                      SUBCHAPTER A--THE COMMISSION
Part                                                                Page
3000            The Commission and its offices..............         363
3001            Employee standards of conduct...............         367
          SUBCHAPTER B--SEEKING INFORMATION FROM THE COMMISSION
3005            Privacy Act rules...........................         370
3006            Public records and Freedom of Information 
                    Act.....................................         371
3007            Commission meetings.........................         382
   SUBCHAPTER C--GENERAL RULES OF PRACTICE FOR PROCEEDINGS BEFORE THE 
                               COMMISSION
3010            Rules of practice and procedure.............         387
3011            Non-public materials provided to the 
                    Commission..............................         423
3012            Ex parte communications.....................         435
3013            Procedures for compelling production of 
                    information by the Postal Service.......         438
  SUBCHAPTER D--SPECIAL RULES OF PRACTICE FOR SPECIFIC PROCEEDING TYPES
3020            Rules applicable to postal service requests 
                    for changes in the nature of postal 
                    services................................         446
3021            Rules for appeals of Postal Service 
                    determinations to close or consolidate 
                    post offices............................         455
3022            Rules for complaints........................         458
3023            Rules for rate or service inquiries.........         461
3024            Special rules for complaints alleging 
                    violations of 39 U.S.C. 404a............         462
3025            Procedures related to Commission views 
                    submitted to the Secretary of State.....         463
     SUBCHAPTER E--REGULATIONS GOVERNING MARKET DOMINANT PRODUCTS, 
          COMPETITIVE PRODUCTS, PRODUCT LISTS, AND MARKET TESTS
3030            Regulation of rates for market dominant 
                    products................................         465
3035            Regulation of rates for competitive products         486

[[Page 362]]

3040            Product lists and the mail classification 
                    schedule................................         488
3045            Rules for market tests of experimental 
                    products................................         507
  SUBCHAPTER F--PERIODIC REPORTING, ACCOUNTING PRACTICES, AND TAX RULES
3050            Periodic reporting..........................         513
3055            Service performance and customer 
                    satisfaction reporting..................         528
3060            Accounting practices and tax rules for the 
                    theoretical competitive products 
                    enterprise..............................         540
3065            Rules for letters carried out of the mail...         545
3066-3099

 [Reserved]

[[Page 363]]



                       SUBCHAPTER A_THE COMMISSION





PART 3000_THE COMMISSION AND ITS OFFICES--Table of Contents



Sec.
3000.101 Purpose.
3000.102 Statutory functions.
3000.103 Official seal.
3000.104-3000.109 [Reserved]
3000.110 The Commission and its offices.
3000.111 Office of Secretary and Administration.
3000.112 Office of Accountability and Compliance.
3000.113 Office of the General Counsel.
3000.114 The Public Representative.
3000.115 Office of Public Affairs and Government Relations.
3000.116 Office of Inspector General.

    Authority: 39 U.S.C. 503; 5 U.S.C. 552.

    Source: 78 FR 27045, May 9, 2013, unless otherwise noted. 
Redesignated at 85 FR 9615, Feb. 19, 2020.



Sec.  3000.101  Purpose.

    This part is published in compliance with 5 U.S.C. 552(a)(1) and 
constitutes a general description of the Postal Regulatory Commission.

[78 FR 27045, May 9, 2013. Redesignated at 85 FR 9615, Feb. 19, 2020]



Sec.  3000.102  Statutory functions.

    (a) Areas of jurisdiction. The Commission develops and maintains 
regulations for a modern system of rate regulation, including 
maintaining the market dominant and competitive product lists in the 
Mail Classification Schedule and ensuring that rates meet the 
requirements of 39 U.S.C. 3622 and 3633. The Commission consults with 
the Postal Service on delivery service standards and performance 
measures and with the Department of State on international postal 
policies. The Commission adjudicates rate and service complaints filed 
pursuant to 39 U.S.C. 3662 and offers advisory opinions on proposed 
changes to postal services pursuant to 39 U.S.C. 3661. Pursuant to 39 
U.S.C. 3651, the Commission provides an annual report to the President 
and Congress, and pursuant to 39 U.S.C. 3653, the Commission issues an 
annual compliance determination to assess whether the Postal Service's 
rates, fees, and services comport with the requirements of title 39. 
Pursuant to 39 U.S.C. 404(d)(5), the Commission acts on postal patrons' 
appeals concerning Postal Service decisions to close or consolidate post 
offices.
    (b) Public participation. Interested persons may participate in 
proceedings before the Commission as described in part 3010, subpart C 
of this chapter. Pursuant to 39 U.S.C. 3662(a) and part 3022 of this 
chapter, any interested person may lodge rate and service complaints 
with the Commission. Persons served by a post office that the Postal 
Service decides to close or consolidate may appeal such determinations 
in accordance with 39 U.S.C. 404(d) and part 3021 of this chapter.

[78 FR 27045, May 9, 2013. Redesignated and amended at 85 FR 9615, 9616, 
Feb. 19, 2020]



Sec.  3000.103  Official seal.

    (a) Authority. The Seal described in this section is hereby 
established as the official seal of the Postal Regulatory Commission.
    (b) Description. (1) On a gold color (yellow) pentagon device, the 
base-line formed as a ``V,'' edged with a black border, a black triangle 
point down and between the inscription at top ``Postal Regulatory 
Commission'' in white letters and in base at the point of the triangle 
three Celeste mullets two, two and one, the American Eagle with branch 
and arrows derived from the Great Seal of the United States charged on 
the breast with the Commission's earlier round seal inscribed ``Postal 
Regulatory Commission'' and the date ``2006'', all in gold (yellow).
    (2) The official seal of the Postal Regulatory Commission is 
modified when reproduced in black and white and when embossed, as it 
appears in this section.

[[Page 364]]

[GRAPHIC] [TIFF OMITTED] TR09MY13.003

    (c) Custody and authorization to affix. (1) The seal is the official 
emblem of the Postal Regulatory Commission and its use is 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 Regulatory 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.

[78 FR 27045, May 9, 2013. Redesignated at 85 FR 9615, Feb. 19, 2020]



Sec. Sec.  3000.104-3000.109  [Reserved]



Sec.  3000.110  The Commission and its offices.

    (a) The Commissioners. The Postal Regulatory Commission is an 
independent establishment of the executive branch of the federal 
government created by the Postal Accountability and Enhancement Act (39 
U.S.C. 501).
    (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. The Chairman 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) Commission offices. The Commission's offices are located at 901 
New York Avenue NW, Suite 200, Washington, DC 20268-0001. On these 
premises, the Commission maintains offices for Commissioners and staff; 
a docket room where documents may be filed with the Commission pursuant 
to part

[[Page 365]]

3010, subpart B of this chapter and examined by interested persons, a 
public reading room where the Commission's public records are available 
for inspection and copying; 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 http://www.prc.gov.

[78 FR 27045, May 9, 2013. Redesignated and amended at 85 FR 9615, 9616, 
Feb. 19, 2020]



Sec.  3000.111  Office of Secretary and Administration.

    (a) The incumbent head of the office utilizes the title of 
``Secretary''.
    (b) The Office of Secretary and Administration is responsible for 
the Commission's budget and accounting. In this role, the Office of 
Secretary and Administration develops, implements, and administers the 
Commission's financial management system and accounting activities 
including those relating to the budget and the payroll; is responsible 
for the Commission's strategic planning; and serves as the point of 
contact for all Commission contracts and audits.
    (c) The Office of Secretary and Administration is responsible for 
the Commission's human resources and personnel. In this role, the Office 
of Secretary and Administration is responsible for Commission employee 
hiring, training, travel, personnel policy and compliance, and human 
capital planning. In addition, the Office of Secretary and 
Administration serves as an Equal Employment Opportunity Officer for the 
Commission and manages the Commission's continuity of operations 
planning.
    (d) The Office of Secretary and Administration manages the 
Commission's records, including the Commission's seal, administrative 
policies, orders, reports, and official correspondence. In this role, 
the Office of Secretary and Administration manages the Commission's 
dockets and docket room, website, reference materials, and inter-agency 
reporting. 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.
    (e) The Office of Secretary and Administration is responsible for 
the Commission's facilities and infrastructure. In this role, the Office 
of Secretary and Administration manages facility security; provides 
information technology and other support services essential to the 
efficient and effective conduct of operations; acquires and assigns 
office space; and manages procurement and supply.

[78 FR 27045, May 9, 2013, as amended at 84 FR 53056, Oct. 4, 2019. 
Redesignated at 85 FR 9615, Feb. 19, 2020]



Sec.  3000.112  Office of Accountability and Compliance.

    (a) The Office of Accountability and Compliance is responsible for 
technical analysis and the formulation of policy recommendations for the 
Commission in both domestic and international matters, including those 
governed by the Universal Postal Union.
    (b) The Office of Accountability and Compliance provides the 
analytic support to the Commission for the review of rate changes, 
negotiated service agreements, classification of products, the Annual 
Compliance Determination, the Annual Report, changes to postal services, 
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 operational characteristics, changes in 
volume, and changes in other relevant factors.
    (c) These functional activities are combined in the evaluation of 
the Postal Service's proposed rates, proposed service changes, proposed 
changes to the Mail Classification Schedule, and product list 
designations, as well as formal complaints, the Annual Compliance 
Determination, and all other proceedings, reports, and filings before 
the Commission requiring such analysis.

[[Page 366]]

    (d) The Office of Accountability and Compliance 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.

[78 FR 27045, May 9, 2013. Redesignated and amended at 85 FR 9615, 9616, 
Feb. 19, 2020]



Sec.  3000.113  Office of the General Counsel.

    (a) The General Counsel directs and coordinates the functions of the 
Office of the General Counsel. The General Counsel does not appear as an 
attorney in any proceeding before the Commission and takes no part in 
the preparation of evidence or argument presented in such hearings.
    (b) The Office of the General Counsel provides legal assistance on 
matters involving the Commission's responsibilities; defends Commission 
decisions before the courts; and advises the Commission on the legal 
aspects of proposed legislation, rulemaking, requests made under the 
Freedom of Information Act, and policies on procurement, contracting, 
personnel matters, ethics, and other internal legal matters.

[78 FR 27045, May 9, 2013, as amended at 84 FR 53056, Oct. 4, 2019. 
Redesignated at 85 FR 9615, Feb. 19, 2020]



Sec.  3000.114  The Public Representative.

    (a) Pursuant to 39 U.S.C. 505, the Commission appoints a staff 
member, on a case-by-case basis, to serve as a representative of the 
general public's interests in public proceedings before the Commission. 
This appointee is called the Public Representative.
    (b) Individuals appointed to represent the general public are 
subject to the same ex parte prohibitions as apply to all other 
interested persons in the cases to which they are assigned to the role 
of the Public Representative.

[78 FR 27045, May 9, 2013. Redesignated at 85 FR 9615, Feb. 19, 2020]



Sec.  3000.115  Office of Public Affairs and Government Relations.

    (a) The Office of Public Affairs and Government Relations 
facilitates prompt and responsive communications for the Commission with 
the public, members of Congress, the Postal Service, state and local 
governments, and the media.
    (b) The Office of Public Affairs and Government Relations has three 
primary areas of responsibility: Government Relations, Consumer Affairs, 
and Communications.
    (1) Government Relations. The Office of Public Affairs and 
Government Relations is the principal liaison between the Commission and 
Members of Congress. It develops and maintains effective working 
relationships with Congressional staff; monitors legislative activity; 
and advises the Commission and its staff on legislative actions and 
policies related to the Commission and its mission. The Office of Public 
Affairs and Government Relations works in conjunction with all 
Commission offices to ensure that lawmakers are informed of regulatory 
decisions and policies and that the Commission is responsive to 
Congressional inquiries for technical information. The Office of Public 
Affairs and Government Relations also prepares Commissioners and 
Commission staff when called upon to provide Congressional testimony.
    (2) Consumer Affairs. As the principal source of outreach and 
education to the public, the Office of Public Affairs and Government 
Relations provides information to postal consumers and assists in the 
resolution of rate and service inquiries from members of the public 
pursuant to part 3023 of this chapter. It supports the impartial 
resolution of those inquiries through use of the Postal Service's Office 
of Consumer Advocate and reports the results to the Commission. The 
Office of Public Affairs and Government Relations also utilizes 
procedures available under the Commission's rules and applicable law to 
assist relevant stakeholders in appeals of Postal Service decisions to 
close or consolidate individual post offices; maintains a record of 
service-related inquiries; and posts calendar updates and other public 
information on the Commission's website.
    (3) Communication. The Office of Public Affairs and Government 
Relations also develops public outreach strategies for the Commission, 
responds to

[[Page 367]]

media inquiries, and disseminates information concerning Commission 
decisions and activities to the public.

[78 FR 27045, May 9, 2013. Redesignated and amended at 85 FR 9615, 9616, 
9660, Feb. 19, 2020]



Sec.  3000.116  Office of Inspector General.

    (a) The Office of Inspector General has the duty and responsibility 
to:
    (1) Provide policy direction and conduct, supervise, and coordinate 
audits and investigations relating to the programs and operations of the 
Commission;
    (2) Review existing and proposed legislation and regulations 
relating to programs and operations of the Commission;
    (3) Make recommendations in semiannual reports concerning the impact 
of such legislation or regulations on the economy and efficiency of 
programs and operations administered or financed by the Commission or on 
the prevention and detection of fraud and abuse in the Commission's 
programs and operations;
    (4) Recommend policies and conduct, supervise, or coordinate other 
activities carried out or financed by the Commission for the purpose of 
preventing and detecting fraud and abuse in its programs and operations;
    (5) Recommend policies and coordinate communications between the 
Commission and other federal agencies, state and local government 
agencies, and nongovernment entities for:
    (i) All matters relating to the promotion of economy and efficiency 
in the administration of, or the prevention and detection of fraud and 
abuse in, programs and operations administered or financed by the 
Commission; or
    (ii) The identification and prosecution of participants in such 
fraud and abuse;
    (6) Keep the Commission and Congress fully and currently informed 
through reports concerning fraud and other serious problems, abuses, and 
deficiencies relating to programs and operations administered or 
financed by the Commission; recommend corrective action concerning such 
problems, abuses, and deficiencies; and report on the progress made in 
implementing such corrective action.
    (b) [Reserved]

[78 FR 27045, May 9, 2013. Redesignated at 85 FR 9615, Feb. 19, 2020]



PART 3001_EMPLOYEE STANDARDS OF CONDUCT--Table of Contents



                      Subpart A_General Provisions

Sec.
3001.105 Post-employment restrictions.
3001.110 Additional required notification of disqualification when 
          seeking employment.
3001.115 Additional restriction on acceptance of anything of value.
3001.120 [Reserved]

                    Subpart B_Ex Parte Communications

3001.150 Ex parte communications prohibited.
3001.155 [Reserved]

Appendix A to Part 3001--Code of Ethics for Government Service

    Authority: 39 U.S.C. 503, 504, 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. 
Redesignated at 85 FR 9615, Feb. 19, 2020.



                      Subpart A_General Provisions

    Source: 82 FR 50321, Oct. 31, 2017, unless otherwise noted.



Sec.  3001.105  Post-employment restrictions.

    All former employees of the Postal Regulatory Commission 
(Commission) are subject to the following restrictions on appearance and 
practice before the Commission on behalf of any participant, including 
the United States Postal Service (Postal Service):
    (a) No former employee of the Commission may practice or act as an 
attorney, expert witness, or representative in connection with any 
proceeding or matter before the Commission that the former employee has 
handled, advised, or participated in the consideration of while in the 
service of the Commission.
    (b) No former employee of the Commission may within one year after 
the

[[Page 368]]

individual's employment has ceased, practice before or act as an 
attorney, expert witness, or representative in connection with any 
proceeding or matter before the Commission that was under the official 
responsibility of such individual, as defined in 18 U.S.C. 202(b), while 
in the service of the Commission.

[82 FR 50321, Oct. 31, 2017. Redesignated and amended at 85 FR 9615, 
9616, Feb. 19, 2020]



Sec.  3001.110  Additional required notification of disqualification
when seeking employment.

    (a) Notwithstanding 5 CFR 2635.603(a), an employee that seeks 
employment with the Postal Service must provide written notice of 
disqualification to the Designated Agency Ethics Official (DAEO) 
consistent with 5 CFR 5601.103(a). The DAEO will inform the employee and 
the employee's supervisor in writing of each matter from which the 
employee is disqualified from participating.
    (b) An employee may withdraw written notice under paragraph (a) of 
this section consistent with 5 CFR 5601.103(b).

[82 FR 50321, Oct. 31, 2017. Redesignated at 85 FR 9615, Feb. 19, 2020]



Sec.  3001.115  Additional limitation on acceptance of anything of value.

    Regardless of 5 CFR 2635.203(b)(7), a Commission employee may not 
accept a gift from the Postal Service, unless another exception or 
exclusion to 5 CFR 2635.203 applies or a waiver is granted by the DAEO.

[82 FR 50321, Oct. 31, 2017. Redesignated at 85 FR 9615, Feb. 19, 2020]



Sec.  3001.120  [Reserved]



                    Subpart B_Ex Parte Communications

    Source: 81 FR 42540, June 30, 2016, unless otherwise noted.



Sec.  3001.150  Ex parte communications prohibited.

    (a) The Commission maintains a written employee policy regarding ex 
parte communications applicable to all interactions, oral or in writing 
(including electronic), between Commission decision-making personnel, 
and the United States Postal Service or public stakeholders in matters 
before the Commission. It is the responsibility of all Commission 
personnel to comply with this policy, including the responsibility to 
inform persons not employed by the Commission of this policy when 
required. The policy is available for review on the Commission's website 
at www.prc.gov.
    (b) Additional ex parte communications requirements, applicable to 
specific docket types, are described in part 3012 of this chapter.

[81 FR 42540, June 30, 2016. Redesignated and amended at 85 FR 9615, 
9616, 9660, Feb. 19, 2020]



Sec.  3001.155  [Reserved]



   Sec. Appendix A to Part 3001--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

[[Page 369]]

governmental duties as a means for making private profit.
    9. Expose corruption wherever discovered.
    10. Uphold these principles, ever conscious that public office is a 
public trust.
    Passed July 11, 1958.

[[Page 370]]



          SUBCHAPTER B_SEEKING INFORMATION FROM THE COMMISSION





PART 3005_PRIVACY ACT RULES--Table of Contents



Sec.
3005.101 Purpose and scope.
3005.102 Definitions.
3005.103 Procedures for requesting inspection, copying, or correction.
3005.104 Response to a request.
3005.105 Appeals of denials of access or amendment.
3005.106 Fees.
3005.107 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. 
Redesignated at 85 FR 9615, Feb. 19, 2020.

    Editorial Note: Nomenclature changes to part 3005, formerly part 
3003, appear at 70 FR 48277, Aug. 17, 2005.



Sec.  3005.101  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.

[64 FR 57982, Oct. 28, 1999. Redesignated at 85 FR 9615, Feb. 19, 2020]



Sec.  3005.102  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. 
Redesignated at 85 FR 9615, Feb. 19, 2020]



Sec.  3005.103  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 the individual,
    (2) Seeks access to a Commission record about the individual that is 
maintained in a system of records (including the accounting of 
disclosures), or
    (3) Seeks to amend a record about the individual 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 
the individual's record in the presence of that individual;
    (4) Who files a request by mail must include the individual's 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.

[64 FR 57982, Oct. 28, 1999. Redesignated and amended at 85 FR 9615, 
9616, Feb. 19, 2020]



Sec.  3005.104  Response to a request.

    (a) In the case of a request for notice of the existence of a 
record, the chief

[[Page 371]]

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.

[64 FR 57982, Oct. 28, 1999. Redesignated at 85 FR 9615, Feb. 19, 2020]



Sec.  3005.105  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.

[64 FR 57982, Oct. 28, 1999. Redesignated at 85 FR 9615, Feb. 19, 2020]



Sec.  3005.106  Fees.

    The first copy of any record furnished under the Privacy Act of 1974 
will be provided without charge. Additional copies will be charged at 
the cost of reproduction.

[64 FR 57982, Oct. 28, 1999. Redesignated at 85 FR 9615, Feb. 19, 2020]



Sec.  3005.107  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. 
Redesignated at 85 FR 9615, Feb. 19, 2020]



PART 3006_PUBLIC RECORDS AND FREEDOM OF INFORMATION ACT-
-Table of Contents



Sec.
3006.1 Purpose.
3006.2 Presumption of openness.
3006.3 How to make a request.
3006.10 Public records.
3006.11 Use of exemptions.
3006.12 Reading room.
3006.13 Notice and publication of public information.
3006.20 Commission procedure when served a subpoena.
3006.30 Relationship among the Freedom of Information Act, the Privacy 
          Act, and the Commission's procedures for according appropriate 
          confidentiality.
3006.35 Consultation, referral, and coordination.
3006.40 Hard copy requests for records and for expedited processing.
3006.41 Electronic requests for records and for expedited processing.
3006.42 Tracking of requests.
3006.43 Response to requests.
3006.44 Appeals.
3006.45 Extension of response time limit.
3006.50 Fees--definitions as used in this part.
3006.51 Fees--request category.
3006.52 Fees--general provisions.
3006.53 Fee schedule.

[[Page 372]]

3006.54 Procedure for assessing and collecting fees.
3006.60 Chief Freedom of Information Act Officer.
3006.61 Freedom of Information Act Public Liaison.
3006.70 Submission of non-public materials by a person other than the 
          Postal Service.

    Authority: 5 U.S.C. 552; 39 U.S.C. 503.

    Source: 74 FR 57256, Nov. 5, 2009, unless otherwise noted. 
Redesignated at 85 FR 9615, Feb. 19, 2020.

    Effective Date Note: At 88 FR 37153, June 7, 2023, the authority 
citation for part 3006 was revised, effective July 7, 2023. For the 
convenience of the user, the revised text is set forth as follows:
    Authority: 5 U.S.C. 552; 39 U.S.C. 407, 503, 504.



Sec.  3006.1  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 part 3000 of this 
chapter, and on the Commission's website 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 website.
    (c) Section 3006.10 identifies records that the Commission has 
determined to be public.

[74 FR 57256, Nov. 5, 2009, as amended at 85 FR 9617, 9660, Feb. 19, 
2020]



Sec.  3006.2  Presumption of openness.

    (a) The Commission shall be proactive and timely in identifying and 
posting public records and other frequently requested records to its 
website.
    (b) It is the stated policy of the Commission that FOIA requests 
shall be administered with a clear presumption of openness. The 
Commission will only withhold information if it reasonably foresees that 
disclosure would harm an interest protected by a FOIA exemption, as 
enumerated in Sec.  3006.11, or disclosure is otherwise prohibited by 
law.

[82 FR 12507, Mar. 6, 2017, as amended at 85 FR 9617, 9660, Feb. 19, 
2020]



Sec.  3006.3  How to make a request.

    (a) To request Commission records, please contact the Commission via 
letter or use the online request form provided on the Commission's 
website at http://www.prc.gov/ foia/onlinerequest.
    (b) Requests must describe the records sought in sufficient detail 
to enable the Commission to locate them with a reasonable amount of 
effort. To the extent possible, the requests should provide any specific 
information that might assist the Commission in responding to the 
request.
    (c) Requesters must provide contact information to assist the 
Commission in communicating with them concerning requests and responding 
to the request.

[82 FR 12507, Mar. 6, 2017, as amended at 84 FR 53056, Oct. 4, 2019]



Sec.  3006.10  Public records.

    (a) Except as provided in Sec.  3006.11 and in Sec.  3011.200 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;

[[Page 373]]

    (4) Exhibits, attachments and appendices to, amendments and 
corrections of, supplements to, or transmittals or withdrawals of any of 
the foregoing; and
    (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.

[74 FR 57256, Nov. 5, 2009, as amended at 85 FR 9617, Feb. 19, 2020]



Sec.  3006.11  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

[[Page 374]]

    (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.
    (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 that would not 
be available by law to a party other than an agency in litigation with 
the agency. This exemption shall not apply to records created 25 years 
or more before the date on which the records were requested.
    (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.

[74 FR 57256, Nov. 5, 2009, as amended at 82 FR 12507, Mar. 6, 2017]



Sec.  3006.12  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.  3006.10 relating to any matter or 
proceeding before the Commission.
    (c) The Commission shall make available, in an electronic and 
physical reading room, records previously released under FOIA and which 
the Commission determines are or are likely to become of significant 
public interest, including agency records that have been requested three 
or more times.

[74 FR 57256, Nov. 5, 2009, as amended at 82 FR 12508, Mar. 6, 2017; 85 
FR 9617, Feb. 19, 2020]

[[Page 375]]



Sec.  3006.13  Notice and publication of public information.

    (a) Decisions, advisory opinions, orders, public reports, and agency 
records that have been requested three or more times will be made 
available to the public by posting on the Commission's website 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 website, http://
www.prc.gov.

[74 FR 57256, Nov. 5, 2009, as amended at 82 FR 12508, Mar. 6, 2017; 85 
FR 9660, Feb. 19, 2020]



Sec.  3006.20  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.  3006.30  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 the individual's 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 3005 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. 
In all instances that the Postal Service submits materials to the 
Commission that the Postal Service reasonably believes to be exempt from 
public disclosure, the Postal Service shall follow the procedures 
described in subpart B of part 3011 of this chapter.
    (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 3011 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 record submitted under seal by a person other than 
the Postal Service. The Commission maintains records of a confidential 
nature submitted by persons other than the Postal Service as non-public 
materials.
    (1) A request made pursuant to FOIA for records designated as non-
public by a person other than the Postal Service shall be considered in 
light of all applicable exemptions; and
    (2) A request made pursuant to part 3011 of this chapter for records 
designated as non-public by a person other than the Postal Service shall 
be considered under the applicable standards set forth in that part.

[74 FR 57256, Nov. 5, 2009, as amended at 83 FR 31281, July 3, 2018; 85 
FR 9617, Feb. 19, 2020]

    Effective Date Note: At 88 FR 37153, June 7, 2023, Sec.  3006.30 was 
amended by revising paragraphs (d) and (e), effective July 7, 2023.

[[Page 376]]

For the convenience of the user, the revised text is set forth as 
follows:



Sec.  3006.30  Relationship among the Freedom of Information Act, the 
          Privacy Act, and the Commission's procedures for according 
          appropriate confidentiality.

                                * * * * *

    (d) Requesting a Postal Service record. The Commission maintains 
custody of records that are both Commission and Postal Service records. 
Except when the Postal Service submits materials to the Commission in 
connection with activities under 39 U.S.C. 407(b)(2)(A), in all other 
instances that the Postal Service submits materials to the Commission 
that the Postal Service reasonably believes to be exempt from public 
disclosure, the Postal Service shall follow the procedures described in 
part 3011, subpart B of this chapter.
    (1) A request made pursuant to FOIA for Postal Service records shall 
be referred to the Postal Service; and
    (2) A request made pursuant to part 3011 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 record submitted by a person other than the Postal 
Service. The Commission maintains records of a confidential nature 
submitted by persons other than the Postal Service as non-public 
materials.
    (1) A request made pursuant to FOIA for records submitted by a 
person other than the Postal Service shall adhere to the applicable 
procedures of Sec.  3006.35. If such a FOIA request is not referred to a 
different Federal agency pursuant to Sec.  3006.35(b), the Commission 
shall consider it in light of all applicable exemptions and in 
accordance with the following procedures:
    (i) If such materials are designated as non-public, the Commission 
shall follow the procedures appearing in Sec.  3006.70(b)-(d) in 
determining the FOIA request; or
    (ii) In all other instances, the Commission shall determine the FOIA 
request after notifying the person of the FOIA request and providing the 
person with an opportunity to respond within seven days of the date of 
the notice under the following circumstances:
    (A) The records sought contain confidential commercial information 
that may be protected from disclosure under 5 U.S.C. 552(b)(4); and
    (B) The Commission determines that it may be required to disclose 
the records, provided that at least one of the following applies:
    (1) The requested information has been designated in good faith by 
the submitter as information considered protected from disclosure under 
5 U.S.C. 552(b)(4); or
    (2) The Commission has a reason to believe that the requested 
information may be protected from disclosure under 5 U.S.C. 552(b)(4), 
but has not yet determined whether the information is protected from 
disclosure; and
    (2) A request made pursuant to part 3011 of this chapter for records 
designated as non-public by a person other than the Postal Service shall 
be considered under the applicable standards set forth in that part.



Sec.  3006.35  Consultation, referral, and coordination.

    (a) Consultation. If records originated with the Commission but 
contain within them information of significance to another Federal 
agency or office, the Commission will typically consult with that other 
entity prior to making a release determination.
    (b) Referral. In addition to referring all requests made pursuant to 
FOIA for Postal Service records to the Postal Service as specified by 
Sec.  3006.30(d)(1), if the Commission believes that a different Federal 
agency is best able to determine whether to disclose the record, the 
Commission will typically refer responsibility for responding to the 
request regarding that record to that agency. Ordinarily, the agency 
that originated the record is presumed to be the best agency to make the 
disclosure determination. Whenever the Commission refers any part of the 
responsibility for responding to a request to another agency, the 
Commission will notify the requester of the referral, including the name 
of the agency and that agency's FOIA contact information.
    (c) Coordination. The standard referral procedure is not appropriate 
where disclosure of the identity of the Federal agency to which the 
referral would be made could harm an interest protected by an applicable 
exemption, such as the exemptions that protect personal privacy or 
national security interests. For example, if a non-law enforcement 
agency responding to a request for records on a living third party 
locates within its files records originating with a law enforcement 
agency, and if the existence of that law enforcement interest in the 
third party was not publicly known, then to disclose that law 
enforcement interest could cause an unwarranted invasion of

[[Page 377]]

the personal privacy of the third party. Similarly, if the Commission 
locates within its files material originating with an Intelligence 
Community agency, and the involvement of that agency in the matter is 
classified and not publicly acknowledged, then to disclose or give 
attribution to the involvement of that Intelligence Community agency 
could cause national security harms. In such instances, in order to 
avoid harm to an interest protected by an applicable exemption, the 
Commission will coordinate with the originating agency to seek its views 
on disclosure of the record. The Commission then will notify the 
requester of the release determination for the record that is the 
subject of the coordination.
    (d) Classified information. On receipt of any request involving 
classified information, the Commission will determine whether the 
information is currently and properly classified in accordance with 
applicable classification rules. Whenever a request involves a record 
containing information that has been classified or may be appropriate 
for classification by another agency under any applicable executive 
order concerning the classification of records, the Commission must 
refer the responsibility for responding to the request regarding that 
information to the agency that classified the information, or that 
should consider the information for classification. Whenever an agency's 
record contains information that has been derivatively classified (for 
example, when it contains information classified by another agency), the 
Commission must refer the responsibility for responding to that portion 
of the request to the agency that classified the underlying information.
    (e) Timing of responses to consultations and referrals. All 
consultations and referrals received by the Commission will be handled 
according to the date that the first agency received the perfected FOIA 
request.
    (f) Agreements regarding consultations and referrals. The Commission 
may establish agreements with other agencies to eliminate the need for 
consultations or referrals with respect to particular types of records.

[88 FR 37154, June 7, 2023]

    Effective Date Note: At 88 FR 37154, June 7, 2023, Sec.  3006.35 was 
added, effective July 7, 2023.



Sec.  3006.40  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.  3006.51; and
    (7) Be submitted to 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);
    (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.

[74 FR 57256, Nov. 5, 2009, as amended at 84 FR 53056, Oct. 4, 2019; 85 
FR 9617, Feb. 19, 2020]



Sec.  3006.41  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;

[[Page 378]]

    (3) Include a daytime telephone number and valid e-mail address; and
    (4) Identify the request category under Sec.  3006.51; and
    (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.

[74 FR 57256, Nov. 5, 2009, as amended at 85 FR 9617, Feb. 19, 2020]



Sec.  3006.42  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.  3006.43  Response to requests.

    (a) Determination. Within 20 days (excluding Saturdays, Sundays, and 
legal holidays) after receipt of a request for a Commission record, the 
Chief FOIA Officer or his/her designee will notify the requester of its 
determination to grant or deny the request and the right to seek 
assistance from the Commission's FOIA Public Liaison. In the case of an 
adverse determination, the Commission will notify the requester of his/
her right to appeal and right to seek dispute resolution services from 
the Commission's FOIA Public Liaison or the Office of Government 
Information Services.
    (b) Granting request. If granting the request, the Chief FOIA 
Officer or his/her designee 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 Chief FOIA Officer 
or his/her designee will notify the requester of any fees that must be 
paid.
    (d) Denying request. If denying the request, in whole or in part, 
the Chief FOIA Officer or his/her designee 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 Chief FOIA Officer or his/her designee 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
    (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.

[[Page 379]]

    (f) Where a compelling need is not shown in an expedited request as 
specified in Sec.  3006.41(b)(1), the Commission may grant requests for 
expedited processing at its discretion.

[74 FR 57256, Nov. 5, 2009, as amended at 82 FR 12508, Mar. 6, 2017; 84 
FR 53056, Oct. 4, 2019; 85 FR 9617, Feb. 19, 2020]



Sec.  3006.44  Appeals.

    (a) The Commission may review any decision of the Chief FOIA Officer 
or his/her designee on its own initiative.
    (b) A requester who seeks to appeal any adverse determination must 
file an appeal with the Commission within 1 year of the date of the 
Commission's response.
    (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 adverse determination is 
upheld, the Commission will notify the requester of the availability of 
dispute resolution services from the Office of Government Information 
Services as a voluntary, non-exclusive alternative to litigation and 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.

[74 FR 57256, Nov. 5, 2009, as amended at 82 FR 12508, Mar. 6, 2017; 84 
FR 53057, Oct. 4, 2019]



Sec.  3006.45  Extension of response time limit.

    (a) The Commission may extend the time limit for a response to a 
request or appeal for up to 10 business days due to unusual 
circumstances, as specified in 5 U.S.C. 552(a)(6)(B)(iii). In such a 
case, the Commission will notify the requester in writing of the unusual 
circumstance causing the extension and the date by which the Commission 
estimates that the request can be processed.
    (b) If an extension will exceed 10 business days, the Commission 
will:
    (1) 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; and
    (2) Make its FOIA Public Liaison available to the requester and 
apprise the requester of their right to seek dispute resolution services 
from the Office of Government Information Services.

[82 FR 12508, Mar. 6, 2017]



Sec.  3006.50  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

[[Page 380]]

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 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.  3006.51  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 the individual's own 
records in a system of records will be charged fees as provided under 
the Commission's Privacy Act regulations in part 3005 of this chapter.

[74 FR 57256, Nov. 5, 2009, as amended at 85 FR 9617, Feb. 19, 2020]



Sec.  3006.52  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

[[Page 381]]

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.  
3006.43 and 3006.44, unless:
    (1) The Commission extends the time limit for its response due to 
unusual circumstances, pursuant to Sec.  3006.45(a), and the Commission 
completes its response within the extension of time provided under that 
section; or
    (2) The Commission extends the time limit for its response due to 
unusual circumstances and more than 5,000 pages are necessary to respond 
to the request and the Commission has discussed with the requester how 
they could effectively limit the scope of the request or made at least 
three good faith attempts to do so; or
    (3) A court has determined that exceptional circumstances exist and 
excused the Commission from responding by court order.
    (f) The Commission may, however, charge fees for review, and in some 
cases duplication, for a partial grant of a request while it reviews 
records that may be exempt and may be responsive to the request, so long 
as the partial grant is made within the applicable time limits.

[74 FR 57256, Nov. 5, 2009, as amended at 82 FR 12508, Mar. 6, 2017; 85 
FR 9617, Feb. 19, 2020]



Sec.  3006.53  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.  3006.52(d), 
fees may be waived at the discretion of the Commission.

[74 FR 57256, Nov. 5, 2009, as amended at 85 FR 9618, Feb. 19, 2020]



Sec.  3006.54  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.  3006.43) 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.

[74 FR 57256, Nov. 5, 2009, as amended at 85 FR 9618, Feb. 19, 2020]

[[Page 382]]



Sec.  3006.60  Chief Freedom of Information Act Officer.

    The Commission designates the General Counsel 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.

[84 FR 53057, Oct. 4, 2019]



Sec.  3006.61  Freedom of Information Act Public Liaison.

    The Commission designates the Director of the Office of Public 
Affairs and Government Relations or the individual's 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 email at [email protected] or telephone at 202-789-6800.

[85 FR 9618, Feb. 19, 2020]



Sec.  3006.70  Submission of non-public materials by a person other 
than the Postal Service.

    (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 shall follow the 
procedures described in subpart B of part 3011 of this chapter.
    (b) Notice of request. Except as provided in Sec.  3006.30(d), if a 
FOIA request seeks materials designated as non-public materials, the 
Commission will provide the submitter with notice of the request. The 
Commission may also provide notice when it has reason to believe that 
materials submitted by a person other than the Postal Service are 
possibly exempt from disclosure and 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 seven 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 non-public treatment pursuant to Sec.  3011.201 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.

[74 FR 57256, Nov. 5, 2009, as amended at 83 FR 31281, July 3, 2018; 85 
FR 9618, Feb. 19, 2020]

    Effective Date Note: At 88 FR 37154, June 7, 2023, Sec.  3006.70 was 
amended by revising paragraph (a), effective July 7, 2023. For the 
convenience of the user, the revised text is set forth as follows:



Sec.  3006.70  Submission of non-public materials by a person other than 
          the Postal Service.

    (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 shall follow the 
procedures described in part 3011, subpart B of this chapter, except 
when the submitter submits materials to the Commission in connection 
with activities under 39 U.S.C. 407(b)(2)(A).

                                * * * * *



PART 3007_COMMISSION MEETINGS--Table of Contents



    Authority: 39 U.S.C. 404(d); 503; 504; 3661.

    Source: 85 FR 9618, Feb. 19, 2020, unless otherwise noted.



Sec.  3007.100  Public access to Commission meetings.

    (a) Definition. 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.
    (b) 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 (d) of this section, every 
portion of every meeting of the Commission shall be open to public 
observation.

[[Page 383]]

    (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.
    (c) 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.
    (d) Closed Commission meetings. Except in a case where the 
Commission finds that the public interest requires otherwise, the second 
sentence of paragraph (b)(1) of this section shall not apply to any 
portion of a Commission meeting, and the requirements of paragraphs (f) 
and (g) of this section 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:
    (i) Are specifically authorized under criteria established by an 
Executive order to be kept secret in the interests of national defense 
or foreign policy; and
    (ii) Are 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 5 U.S.C. 552), provided that such statute:
    (i) Requires the matter to 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 this paragraph (d)(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

[[Page 384]]

action or appellate 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 5 U.S.C. 554 or otherwise 
involving a determination on the record after opportunity for a hearing.
    (e) Procedures for closing meetings. (1) Action under paragraph (d) 
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 (d) of this 
section, or with respect to any information which is proposed to be 
withheld under paragraph (d) 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 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 (d)(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 one day of any vote taken pursuant to paragraph (e)(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 one day of the vote taken pursuant to paragraph 
(e)(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 (e)(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 (d)(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 (d)(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 (e)(1) through (3) and (f) of this 
section shall not apply to any portion of a meeting to which paragraph 
(e)(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 (d) 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.
    (f) Scheduling and public announcement. (1) In the case of each 
meeting, the Commission shall make public announcement, at least one 
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

[[Page 385]]

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 (f)(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 (f)(1) of this section 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 this 
paragraph (f), 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 reception area of 
the Postal Regulatory Commission located 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.
    (g) Certification of closed meetings; transcripts, electronic 
recordings, and minutes. (1) Before any meeting to be closed pursuant to 
paragraphs (d)(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 the 
individual's 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 (d)(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 (g)(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 contains information which may be 
withheld under paragraph (d) of this section, and is not required by the 
public interest to be made available.

[[Page 386]]

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 two years after such meeting, or until one year after the 
conclusion of any Commission proceeding with respect to which the 
meeting or portion was held, whichever occurs later.
    (h) 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 
Secretary and Administration no later than three working days after the 
issuance of the notice of meeting to which the request pertains. 
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 Secretary and 
Administration ten 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 (e)(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 
Secretary and Administration 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 Secretary and Administration 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 (e) and (f) 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.

[[Page 387]]



   SUBCHAPTER C_GENERAL RULES OF PRACTICE FOR PROCEEDINGS BEFORE THE 
                               COMMISSION





PART 3010_RULES OF PRACTICE AND PROCEDURE--Table of Contents



                      Subpart A_General Provisions

Sec.
3010.100 Applicability and scope.
3010.101 Definitions.
3010.102 Commission dockets.
3010.103 Procedural schedules in docketed proceedings.
3010.104 Consolidation and severance of proceedings.
3010.105 Consideration of matters before the Commission.
3010.106 Presiding officers.
3010.107 Appeals from interlocutory rulings by presiding officers.
3010.108 Computation of time.
3010.109 Automatic closure of inactive dockets.

                      Subpart B_Filing Requirements

3010.120 Filing material with the Commission.
3010.121 Filing Online system.
3010.122 Material filed using method other than the Filing Online 
          system.
3010.123 Rejected filings.
3010.124 Form and content of text-based documents filed with the 
          Commission.
3010.125 Library references.
3010.126 Subscription.
3010.127 Service.

            Subpart C_Participation in Commission Proceedings

3010.140 Opportunity for comment.
3010.141 Appeals of Postal Service determinations to close or 
          consolidate post offices.
3010.142 Parties to hearings on the record.
3010.143 Representation of persons.
3010.144 Limitation of participation by investigative or prosecuting 
          officers.

          Subpart D_Notices, Motions, and Information Requests

3010.150 Notices.
3010.151 Notices and orders initiating proceeding.
3010.152 Notices initiating dockets for consideration of negotiated 
          service agreements.
3010.160 Motions.
3010.161 Motions for waiver.
3010.162 Motions for continuances and extensions of time.
3010.163 Motions for late acceptance.
3010.164 Motions to strike.
3010.165 Motions for reconsideration.
3010.170 Information requests.

        Subpart E_Proceedings Using Notice and Comment Procedures

3010.200 Applicability.
3010.201 Initiation of a proceeding.
3010.202 Participation in notice and comment proceedings.
3010.203 Commission action.

  Subpart F_Proceedings With an Opportunity for a Hearing on the Record

3010.300 Applicability.
3010.301 Notice of proceeding.
3010.302 Prehearing conferences.
3010.303 Hearing format.
3010.304 Scheduling order.
3010.310 Discovery--general policy.
3010.311 Interrogatories for purpose of discovery.
3010.312 Requests for production of documents or things for purpose of 
          discovery.
3010.313 Requests for admissions for purpose of discovery.
3010.320 Settlement conferences.
3010.321 Hearings.
3010.322 Evidence--general.
3010.323 Evidence--introduction and reliance upon studies and analyses.
3010.324 In camera orders.
3010.325 Depositions.
3010.330 Briefs.
3010.331 Proposed findings and conclusions.
3010.332 Oral argument before the presiding officer.
3010.333 Oral argument before the Commission.
3010.334 Commission decisions.
3010.335 Intermediate decisions.
3010.336 Exceptions to intermediate decisions.

    Authority: 39 U.S.C. 404(d); 503; 504; 3661.

    Source: 85 FR 9620, Feb. 19, 2020, unless otherwise noted.



                      Subpart A_General Provisions



Sec.  3010.100  Applicability and scope.

    (a) The rules in this part apply to practice before the Postal 
Regulatory Commission.
    (b) When a general rule conflicts with a rule governing a specific 
practice

[[Page 388]]

area, the rule governing the specific practice area shall take 
precedence.
    (c) The rules in this part shall be liberally construed to secure a 
just and speedy determination of issues. They permit the informal 
disposition of any matter for which formal procedures are not 
specifically required by statute.
    (d) Except when specifically required by statute, the rules in this 
part may be waived for good cause and appropriate alternative procedures 
may be prescribed.
    (e) The rules in this part shall be referred to as the ``rules of 
practice.'' Rules are to be cited using only the numbers and letters to 
the right of the decimal point. For example, paragraph (a) of ``Sec.  
3010.120 Filing material with the Commission'' shall be referred to as 
``section 120(a) of the rules of practice (39 CFR 3-1-.120(a))'' or as 
``rule 120(a)'' (39 CFR 3010.120(a)).



Sec.  3010.101  Definitions.

    (a) Act means title 39 of the United States Code, as amended.
    (b) Commission or Commissioner means, respectively, the Postal 
Regulatory Commission established by the Act or a member thereof. The 
Commission is located at 901 New York Avenue NW, Suite 200, Washington, 
DC 20268-0001. The Commission's regular business hours are from 8 a.m. 
to 4:30 p.m. Eastern Time, except for Saturdays, Sundays, and Federal 
holidays.
    (c) Complainant means a person who files a complaint with the 
Commission pursuant to section 3662 of the Act in the form and manner 
hereinafter prescribed.
    (d) Effective date, when used with respect to a notice, order, 
ruling, or other document issued by the Commission or an officer thereof 
(excluding documents issued for publication in the Federal Register), 
means the date the filing is posted on the Daily Listing page of the 
Commission's website unless otherwise specifically provided.
    (e) Hearing on the record means a hearing conducted under sections 
556 and 557 of title 5, U.S.C. (80 Stat. 386), as provided by section 
3661 of the Act or in any other proceeding noticed by the Commission for 
a hearing on the record.
    (f) Negotiated service agreement means a written contract, to be in 
effect for a defined period of time, between the Postal Service and a 
mailer, which 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.
    (g) Participant means any person who participates, or seeks to 
participate, in a proceeding before the Commission.
    (h) Party means the Postal Service, the Public Representative, a 
complainant, or a person who has intervened in a proceeding docketed for 
a hearing on the record before the Commission.
    (i) Person means an individual, a partnership, corporation, limited 
liability company, trust, unincorporated association, public or private 
organization, or governmental entity.
    (j) Petitioner means a person who is permitted by section 404(d)(5) 
of the Act to appeal to the Commission a determination of the Postal 
Service to close or consolidate a post office.
    (k) Postal Service means the United States Postal Service 
established by the Act.
    (l) Postal service refers to the delivery of letters, printed 
matter, or mailable packages, including acceptance, collection, sorting, 
transportation, or other functions ancillary thereto.
    (m) Presiding officer means a person designated by the Chairman of 
the Commission or the Commission to preside over a Commission proceeding 
or over a hearing held on the record before the Commission.
    (n) Proceeding means a Commission process initiated by the issuance 
of a notice or order that establishes a docket for the consideration of 
a matter before the Commission.
    (o) Product means a postal service with a distinct cost or market 
characteristic for which a rate or rates are, or may reasonably be, 
applied.
    (p) Public Representative or PR means an officer of the Commission 
designated to represent the interests of the general public in a 
Commission proceeding.
    (q) Rate or class of general applicability means a rate or class 
that is available

[[Page 389]]

to all mailers equally on the same terms and conditions.
    (r) Record means all documents and other material in a docket, 
including pleadings, testimony, exhibits, library references, 
transcripts of oral testimony or statements given or made during a 
hearing, comments, briefs, and in camera material, whether or not relied 
upon by the Commission or presiding officer in reaching a decision.
    (s) Secretary means the Secretary of the Commission, the Acting 
Secretary, or the Secretary's designee.
    (t) Small business concern means a for-profit business entity that:
    (1) Is independently owned and operated;
    (2) Is not dominant in its field of operation;
    (3) Has a place of business located in the United States;
    (4) Operates primarily within the United States or makes a 
significant contribution to the United States economy by paying taxes or 
using American products, materials, or labor; and
    (5) Together with its affiliates, qualifies as small in its primary 
industry under the criteria and size standards established by the Small 
Business Administration in 13 CFR 121.201 based on annual receipts or 
number of employees.
    (u) Website means the Commission's website located at https://
www.prc.gov.



Sec.  3010.102  Commission dockets.

    (a) The Commission may initiate a proceeding by issuing a notice or 
order that establishes a docket in which a proceeding is to be 
conducted.
    (b) When permitted by statute or regulation, any person may seek the 
initiation of a proceeding by filing a request with the Commission that 
complies with the rules governing the type of proceeding being 
requested.
    (c) The Secretary shall maintain a docket for all matters that come 
before the Commission.
    (d)(1) The Secretary shall assign docket designations to each matter 
that comes before the Commission that reflect the nature of the matter, 
set forth the fiscal year in which the matter came before the 
Commission, and where applicable, the sequential number of the docket 
type within the fiscal year. Available docket types are:
    (i) Appeal of a Post Office Closing (A);
    (ii) Annual Compliance Report (ACR);
    (iii) Complaint (C);
    (iv) Competitive Product Rates (CP);
    (v) General (G);
    (vi) International Mail (IM);
    (vii) Mail Classification (MC);
    (viii) Market Test (MT);
    (ix) Change in the Nature of Postal Services (N);
    (x) Public Inquiry (PI);
    (xi) Market Dominant Rates (R);
    (xii) Rulemaking (RM);
    (xiii) Special Studies (SS); and
    (xiv) Annual Review of Tax Calculation (T).
    (2) The Commission may modify the list of docket types and document 
formats without prior notice.
    (e) The Secretary's assignment of a docket designation does not, by 
itself, establish a docket or initiate a proceeding. A docket is 
formally established and proceedings initiated only by the issuance of a 
Commission notice or order except for certain negotiated service 
agreements for which the authority to establish a docket and initiate a 
proceeding by issuance of a Secretary's notice has been delegated to the 
Secretary.
    (f) The substance of the matter presented to the Commission, not the 
assigned docket type, shall govern the procedural requirements for the 
docket.
    (g) Material filed with the Commission following the Secretary's 
assignment of a docket designation shall include the assigned docket 
designation.
    (h) Public material filed within a docket may be viewed at the 
Commission's Docket Section during regular business hours. Public 
documents filed in a docket that appear in electronic format may also be 
accessed remotely via the Commission's website. Confidential material 
filed under seal in a docket may only be accessed with prior 
authorization. Part 3011 of this chapter sets forth the procedures for 
obtaining such authorization. Persons who wish to access confidential 
material should

[[Page 390]]

contact the Commission's Docket Section for the appropriate mode for 
transmitting material filed under seal.
    (i) Active dockets may only be closed by the Commission.



Sec.  3010.103  Procedural schedules in docketed proceedings.

    Procedural schedules shall be established and may be periodically 
modified for each matter that is assigned a docket designation.



Sec.  3010.104  Consolidation and severance of proceedings.

    The Commission may order proceedings involving related issues or 
facts to be consolidated for consideration of any or all matters at 
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.  3010.105  Consideration of matters before the Commission.

    (a) Unless it orders otherwise, the Commission shall sit en banc in 
all matters that come before it. In those proceedings in which a 
presiding officer is appointed, the Commission will continue to sit en 
banc, unless modified by Commission notice or order, with the presiding 
officer responsible for those matters within the scope of the presiding 
officer's authority.
    (b) A decision to establish a docket (other than certain negotiated 
service agreement dockets), close an active docket, or reach a final 
decision in any docket shall be by majority vote of the Commissioners 
then in office.



Sec.  3010.106  Presiding officers.

    (a) Designation of presiding officers. The Chairman, in consultation 
with all other Commissioners then in office, may designate any 
Commissioner, including the Chairman, to act as presiding officer over 
any matter before the Commission. Subject to approval by majority vote 
of all Commissioners then in office, the Chairman may also designate any 
member of the Commission's staff, an Administrative Law Judge employed 
by the Commission for a specific proceeding, or any person under 
contract with the Commission to serve as presiding officer over any 
matter before the Commission. Contracts between the Commission and any 
person who is to serve as a presiding officer must include provisions 
that incorporate the ethical requirements and standards applicable to 
Commission employees who serve as presiding officers.
    (b) Notice of designation. The Secretary shall issue a notice of any 
decision to designate a presiding officer. The notice shall identify the 
presiding officer and the date of appointment. Any expansion or 
limitation on the presiding officer's authority, or specific direction 
to a presiding officer (such as specific direction to issue an 
intermediate decision for the Commission's consideration) not specified 
in this section shall be included in the notice.
    (c) Authority delegated. Presiding officers shall have the 
authority, within the Commission's powers and subject to its published 
rules to:
    (1) Regulate the course of a proceeding before the Commission, 
including ruling on all matters not specifically reserved for the 
Commission, either orally during a hearing or by issuing written 
presiding officer rulings;
    (2) Regulate the course of a public hearing, including the 
recessing, reconvening, and adjournment thereof;
    (3) Issue presiding officer information requests;
    (4) Administer oaths and affirmations;
    (5) Issue subpoenas authorized by law (limited to Commissioners and 
Administrative Law Judges designated as presiding officers);
    (6) Rule upon offers of proof and receive relevant evidence;
    (7) Take or authorize that depositions be taken as provided in Sec.  
3010.324;
    (8) Hold appropriate conferences before or during hearings and to 
rule on matters raised at such conferences, including prehearing 
conferences held pursuant to Sec.  3010.302;
    (9) Dispose of procedural requests or similar matters except for 
motions to dismiss or to otherwise make a final determination of a 
proceeding prior to

[[Page 391]]

the issuance of an intermediate decision as provided in paragraph 
(c)(11) of this section;
    (10) Certify, within their discretion, or upon direction of the 
Commission, any question to the Commission for its consideration and 
disposition including, without limitation, motions to dismiss or to 
otherwise make a final determination of a proceeding prior to the 
issuance of an intermediate decision as provided in paragraph (c)(11) of 
this section;
    (11) Submit an intermediate decision in accordance with Sec.  
3010.335, when directed; and
    (12) 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.
    (d) Conduct of hearings. It is the duty of the presiding officer to 
conduct fair and impartial hearings and to maintain order. Any disregard 
by participants or counsel of presiding officer rulings on matters of 
order or procedure shall be noted on the record, and where the presiding 
officer 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 may immediately submit to the Commission a report thereon, 
together with recommendations, and in the presiding officer's 
discretion, suspend the hearing.
    (e) Disqualification. A presiding officer may withdraw from a 
proceeding when necessary due to disqualification, or may be removed by 
the Commission for good cause.



Sec.  3010.107  Appeals from interlocutory rulings by presiding officers.

    (a) General policy. The Commission will not review interlocutory 
rulings of a presiding officer except in extraordinary circumstances.
    (b) Appeals certified by the presiding officer. (1) Rulings of the 
presiding officer may be appealed to the Commission 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 by motion within five 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 
to the Commission.
    (c) Appeals not certified by the presiding officer. A participant 
may request Commission review of a presiding officer's decision denying 
certification of an appeal by motion within five days of the decision. 
If the presiding officer fails to act on a request for certification 
within 15 days of the issuance of the ruling in question, the 
participant seeking certification may apply for review by the Commission 
within 20 days of the ruling in question. Unless the Commission directs 
otherwise, its review of the application for review 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:

[[Page 392]]

    (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) When the presiding officer declines to certify an appeal, the 
Commission will not permit an interlocutory appeal 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) If the Commission fails to issue an order permitting an 
interlocutory appeal within 15 days after the presiding officer 
certifies the appeal or a participant files an application for review, 
the appeal shall be deemed denied. If the Commission issues an order 
permitting 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 the Commission does not 
entertain an interlocutory appeal of a presiding officer's ruling, 
objection to the ruling may be raised:
    (1) In briefs to the presiding officer or the Commission at the 
conclusion of hearings on the record; or
    (2) By the deadline for submission of comments or reply comments, 
whichever is later, in all other proceedings in which a hearing on the 
record is not held.



Sec.  3010.108  Computation of time.

    (a) In computing time periods, the term ``day'' shall mean calendar 
day.
    (b) Except as otherwise provided by law, in computing any period of 
time prescribed or allowed by this part, or by any notice, order, rule, 
presiding officer ruling, or regulation of the Commission or a presiding 
officer, the day of the act, event, or default after which a designated 
period of time begins to run is not to be included.
    (c) The last day of the period so computed is to be included unless 
it is a Saturday, Sunday, Federal holiday, or a day on which the 
Commission is not continuously open from 8 a.m. to 4:30 p.m. or on which 
the Commission's docketing system is not accessible continuously during 
that time. In any such case, the applicable time period shall run until 
the end of the next full business day that the Commission is open and 
its docketing system is accessible.
    (d) Except in proceedings to consider changes in the nature of 
postal services conducted under part 3020 of this chapter, in computing 
a period of time which is five days or less, all Saturdays, Sundays, 
Federal holidays, or days on which the Commission is not continuously 
open from 8 a.m. to 4:30 p.m. or on which the Commission's docketing 
system is not accessible continuously during that time are to be 
excluded.



Sec.  3010.109  Automatic closure of inactive dockets.

    (a) Automatic closure. The Commission shall automatically close a 
docket in which there has been no activity of record by any person for 
12 consecutive months, except dockets in which further action by the 
Commission is required by statute or regulation, or dockets for which 
the Commission finds good cause to remain open.
    (b) Notice of closure. Each month, the Commission shall post on its 
website a list of dockets that will be subject to automatic closure 
during the following calendar month and will include the date on which 
the docket will automatically close.
    (c) Motions to stay automatic closure. (1) Persons, including the 
Postal Service or a Public Representative, may file a motion to stay 
automatic closure of a docket and request that the docket remain open 
for a specified term not to exceed 12 months. Motions to stay automatic 
closure must be filed at least 15 days prior to the automatic closure 
date.
    (2) The Commission may order a docket remain open for a specified 
term not to exceed 12 months and must

[[Page 393]]

file such order at least 15 days prior to the automatic closure date.
    (d) Motions to reopen automatically closed dockets. (1) If, at any 
time after a docket has been automatically closed, persons, including 
the Postal Service or a Public Representative, may file a motion to 
reopen the docket and must set forth with particularity good cause for 
reopening the docket.
    (2) The Commission may order a closed docket to be reopened, and 
must set forth the basis for reopening the docket.



                      Subpart B_Filing Requirements



Sec.  3010.120  Filing material with the Commission.

    (a) All material filed with the Commission shall be transmitted to 
the Commission in electronic format using the Filing Online system 
available over the internet through the Commission's website at http://
www.prc.gov. The material must satisfy the Filing Online system 
compatibility requirements specified by the Secretary in the Filing 
Online User Guide, which shall also be accessible on the Commission's 
website. The exceptions to this rule are:
    (1) Material that cannot reasonably be converted to electronic 
format;
    (2) Confidential material filed under seal pursuant to part 3011 of 
this chapter shall not be transmitted electronically using the Filing 
Online system or any other electronic filing system unless authorized in 
advance by the Secretary;
    (3) Hardcopy material filed by persons who do not have the ability 
to submit material using the Filing Online system and who files not more 
than ten pages of material with the Commission in any one calendar year;
    (4) Hardcopy material filed by persons participating in proceedings 
that consider the appeal of a Postal Service determination to close or 
consolidate a post office, other than the Postal Service, that do not 
have the ability to submit material using the internet; and
    (5) Hardcopy material filed in docketed proceedings with the 
approval of the Secretary for good cause shown.
    (b) Material subject to the exceptions specified in paragraph (a) of 
this section may be filed either by mailing or by hand delivery during 
regular business hours to the Office of Secretary and Administration, 
Postal Regulatory Commission, 901 New York Avenue NW, Suite 200, 
Washington, DC 20268-0001. The Secretary has authority to approve the 
use of secure alternative electronic filing systems pursuant to Sec.  
3011.203(c)(2) of this chapter for confidential material filed under 
seal. The Secretary also has authority to approve the use of alternative 
electronic filing systems for non-confidential material on a case-by-
case basis when necessary to facilitate efficient docketing operations.



Sec.  3010.121  Filing Online system.

    (a) Only registered users of the Filing Online system may file 
material using the Filing Online system. Both temporary and permanent 
account registrations are available. Information for establishing a 
Filing Online account may be obtained on the Commission's website at 
http://www.prc.gov.
    (b) A temporary account allows a user to file materials immediately, 
but expires after 35 days. The purpose of a temporary account is to 
permit persons to file comments solicited by the Commission on a one-
time or infrequent basis, or to file notices of intervention where there 
is limited time in which to establish a permanent account. A temporary 
account also may be used on an extraordinary basis for good cause shown.
    (c) A permanent account requires the authorization of the Secretary 
prior to use, but remains active until cancelled. Registration can be in 
the form of a principal account holder or as an agent of the principal 
account holder. When a principal account holder is representing the 
interests of another person, the authority of the principal account 
holder to represent the person on whose behalf the document is filed 
must be valid and current, in conformance with Sec.  3010.143. 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 the principal 
account holder's authority to represent participants in a proceeding

[[Page 394]]

or any change in the authority delegated to an agent account holder to 
submit documents on the principal account holder's behalf.
    (d) Only such material that conforms to the requirements of this 
part and any other applicable Commission rule or order shall be accepted 
for filing. In order for material to be accepted using the Filing Online 
system, it must be submitted to the Commission by a temporary or 
permanent account holder. Material submitted through the Filing Online 
system is considered to have been filed on the date indicated on the 
receipt issued by the Secretary. A filing is accepted when the 
Secretary, after review, posts the filing on the Daily Listing page of 
the Commission's website. Material received after the close of regular 
business hours or on a Saturday, Sunday, Federal holiday or other day on 
which the Commission is closed shall be deemed to be filed on the next 
regular business day.



Sec.  3010.122  Material filed using method other than the Filing
Online system.

    (a) Hardcopy and other forms of material. A hardcopy document is 
filed on the date stamped by the Secretary. It is accepted when the 
Secretary, after review, posts the document on the Daily Listing page of 
the Commission's website. Any other form of material filed with the 
Commission must be accompanied by a hardcopy notice of filing, which 
describes the material being filed, identifies the person filing the 
material, and specifies the docket caption and docket number under which 
the material is being filed. This material is accepted when the 
Secretary, after review, posts the notice of filing on the Daily Listing 
page of the Commission's website. Material received after the close of 
regular business hours or on a Saturday, Sunday, or Federal holiday 
shall be deemed to be filed on the next regular business day.
    (b) Computer media. With the prior approval of the Secretary, a 
participant may submit a document on a compact disk or other media or 
method approved in advance by the Secretary, simultaneously with the 
filing of one printed original hardcopy, provided that the stored 
document is a file generated in either Acrobat (pdf), Word, WordPerfect, 
or Rich Text Format (rtf).



Sec.  3010.123  Rejected filings.

    Any filing that does not comply with an applicable Commission rule 
or order 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 will attempt to 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. Any 
controversies concerning the acceptability of a filing shall be resolved 
after review by the Office of General Counsel.



Sec.  3010.124  Form and content of text-based documents filed with 
the Commission.

    (a) Equivalent paper size. Each document filed in paper form shall 
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 0.75 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. For a multiple page document, the preference is for the 
document to be not stapled, hole-punched, or bound, but may be fastened 
together by paper or binder clip, or equivalent. If the document is 
bound, it shall be bound on the left side. Each document filed in 
electronic form must be capable of meeting the above requirements when-
printed from a text-based pdf formatted file version of the document. 
Consideration may be given to alternative file formats where necessary.
    (b) Line spacing and font. The text of documents filed with the 
Commission shall be formatted in not less than one and one-half spaced 
lines except that tables of content, captions, tables, footnotes and 
quotations may be single-spaced. Documents shall be submitted in a san-
serif font such as Arial (or substantially equivalent). Body

[[Page 395]]

text shall be 12 point, except that footnotes and quotations may appear 
as small as 10 point. Where necessary, special text such as in tables or 
charts, may appear as small as 9 point. These requirements may be waived 
on a case-by-case basis, based on both substantial compliance and the 
readability of the document.
    (c) Caption, title, page numbering, and table of contents. 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). Each page, after the first page, of 
a document shall be consecutively numbered. Unique page numbers are 
permissible for introductory material such as cover pages and table of 
contents, and for appendixes. Each document filed with the Commission 
consisting of 20 or more pages shall include a table of contents with 
page references. For briefs also see Sec.  3010.330.
    (d) Improper matter. Defamatory, scurrilous, or unethical matter 
shall not be included in any document filed with the Commission.
    (e) Exception for appeals of post office closings and 
consolidations. The requirements of paragraphs (a) through (c) of this 
section are encouraged, but optional, for participants other than the 
Postal Service in proceedings to consider the appeal of a Postal Service 
determination to close or consolidate a post office conducted pursuant 
to part 3021 of this chapter.



Sec.  3010.125  Library references.

    (a) In general. A library reference is a special type of filing, 
which is accepted by the Commission for the convenience of the person 
filing material that is not conducive to typical text based filings. The 
filing of a document as a library reference is appropriate when interest 
in the material is limited, when the material constitutes a secondary 
source that provides background or support for a position or matter, or 
when references to, or identification of, the material filed as a 
library reference would be facilitated. Examples of materials that are 
appropriate for filing as library references include electronic 
spreadsheets, workpapers in support of primary documents, pre-existing 
materials, secondary sources such as books or materials that are not 
readily available elsewhere, or other foundational materials filed in 
support of a primary document. Whenever possible, library references are 
to be filed in electronic format. The Commission reserves the right to 
refuse acceptance of any library reference material in its docket room 
and its right to take other action to ensure all persons' ability to 
obtain access to the material.
    (b) Categorization of library references. To the extent possible, 
material filed as a library reference shall be identified and referred 
to by participants in terms of the following categories:
    (1) Category 1--Reporting Systems Material (consisting of library 
references relating to the Postal Service's statistical cost and revenue 
reporting systems, and their primary outputs);
    (2) Category 2--Witness Foundational Material (consisting of 
material relating to the testimony of specific witnesses, primarily that 
which is essential to the establishment of a proper foundation for 
receiving into evidence the results of studies and analyses);
    (3) 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);
    (4) Category 4--Material Provided in Response to Discovery 
(consisting of material provided in response to discovery requests);
    (5) 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);
    (6) Category 6--All Other Material (consisting of library references 
not fitting any of the other categories).
    (c) Labeling. Material filed as a library reference shall be labeled 
in a

[[Page 396]]

manner consistent with standard Commission notation and any other 
conditions the Commission or presiding officer establishes. Each library 
reference shall be identified by a unique identification number. The 
standard format for an identification number shall be ``[abbreviated 
name of person filing]-LR-[docket identification]-[optional: 
NP][sequential number by person filing].'' For example, ``PRC-LR-CP2010-
1-NP8'' read right to left would be the eighth (8) non-public (NP) item 
filed in Docket No. (CP2010-1) as a library reference (LR) by the Postal 
Regulatory Commission (PRC). Alternative formats may be used when 
required for clear identification of the material being filed.
    (d) Filing procedure. Participants filing material as a library 
reference shall file contemporaneous written notice of this action. The 
notice shall:
    (1) Set forth the reason(s) why the material is being designated as 
a library reference;
    (2) 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;
    (3) Explain in detail how the material relates to the participant's 
case or to issues in the proceeding;
    (4) Identify authors or others materially contributing to 
substantive aspects of the preparation or development of the library 
reference;
    (5) Identify the documents (such as testimony, exhibits, and an 
interrogatory) or request to which the library reference relates, to the 
extent practicable;
    (6) Identify other library references or testimony relied upon or 
referred to in the designated material, to the extent practicable;
    (7) Indicate whether the library reference is an update or revision 
to another library reference and, if it is, clearly identify the 
predecessor material; and
    (8) To the extent feasible, for proceedings scheduled for a hearing 
on the record, 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). To the extent 
feasible, in all other proceeding types, identify portions relevant to 
the proceeding.
    (e) Optional preface or summary. Inclusion of a preface or summary 
in a library reference addressing the matters set out in paragraphs 
(d)(1) through (8) of this section is encouraged, but optional.



Sec.  3010.126  Subscription.

    (a) Each document filed with the Commission shall be subscribed. 
Subscription constitutes a certification that the person filing the 
document has read the document being filed; that the person filing the 
document knows the contents thereof; that if executed in any 
representative capacity, the document has been subscribed in the 
capacity specified in the document with full power and authority so to 
do; that to the best of the person's 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. This requirement extends to notices of filing for library 
references or other material, including the underlying library 
references or other material to the extent referenced in the notice of 
filing.
    (b) For a document or notice of filing filed via the Filing Online 
system, the subscription requirement is met when the document or notice 
of filing is filed with the Commission.
    (c) For a hardcopy document or hardcopy notice of filing, the 
subscription requirement is met by signing in ink, by affixing an 
electronic signature, or by including the typed name of the individual, 
authorized office, employee, attorney, or other representative who files 
the document or notice.



Sec.  3010.127  Service.

    (a) Material filed by a person participating in a docket shall be 
deemed served on all other persons (except those served by the Secretary 
pursuant to paragraph (b) of this section) who are participating in the 
docket as of the date the material, or notice of the material's filing 
is posted by the Secretary on the Commission's website.

[[Page 397]]

    (b) The Secretary shall provide service by First-Class Mail, which 
is deemed complete upon mailing, to the following persons upon a 
demonstration of the inability to effectively utilize the Filing Online 
system (until alternative arrangements are established):
    (1) Petitioners in dockets appealing Postal Service determinations 
to close or consolidate post offices conducted pursuant to part 3021 of 
this chapter;
    (2) Parties that have intervened in proceedings docketed for a 
hearing on the record; and
    (3) Where necessary for fairness and protection of due process, an 
active participant in a proceeding affecting the substantial rights of 
that participant.
    (c) The Secretary shall maintain a current service list in each 
proceeding docketed for a hearing on the record which shall include the 
parties that have intervened in that proceeding and up to two 
individuals designated for physical service of documents, if necessary, 
by each party. The service list for each current proceeding will be 
available on the Commission's website at http://www.prc.gov. Each party 
who has internet access shall be responsible for ensuring that its 
listing on the Commission's website is accurate and should promptly 
notify the Secretary of any errors. The Secretary or the Secretary's 
designee shall be responsible for ensuring the accuracy of listings of 
any parties who lack internet access.



            Subpart C_Participation in Commission Proceedings



Sec.  3010.140  Opportunity for comment.

    Except for proceedings involving an appeal of a Postal Service 
determination to close or consolidate a post office, any person may 
submit comments in proceedings before the Commission. An opportunity to 
provide a reply to comments shall be at the discretion of the 
Commission, or the presiding officer if one is appointed. The scope and 
timing of comments and reply comments may be specified by notice, order, 
or presiding officer's ruling. There is no requirement to intervene in a 
proceeding as a party in order to submit comments.



Sec.  3010.141  Appeals of Postal Service determinations to close or
consolidate post offices.

    (a) Only a person served by the post office in which the Postal 
Service has issued a decision to close or consolidate a post office may 
file an appeal of the decision with the Commission.
    (b) Any other person served by the same post office under review who 
desires to participate in the proceeding, or any Postmaster, counsel, 
agent, or other person authorized or recognized by the Postal Service as 
such person's representative, may participate in an appeal by submitting 
comments.
    (c) Except for persons identified in paragraph (a) or (b) of this 
section, the designated Public Representative, and the Postal Service, 
no other person may participate in a proceeding to consider the appeal 
of a Postal Service determination to close or consolidate a post office.
    (d) Opposition to a person asserting eligibility for participation 
shall be made within three days of that person's first filing in the 
proceeding.



Sec.  3010.142  Parties to hearings on the record.

    (a) Parties to a proceeding. Any interested person may become a 
party to proceedings docketed for a hearing on the record by filing a 
notice of intervention. The Postal Service, and the Public 
Representative are automatically deemed parties in such proceedings 
without the need to file a notice of intervention. Persons who file a 
complaint are also automatically deemed a party to a complaint 
proceeding without the need to file a notice of intervention. Parties 
may be provided an opportunity to participate in discovery, file 
testimony, participate in the written or oral examination of witnesses, 
file briefs, or present oral argument before the Commission or the 
presiding officer. Persons that have not intervened may participate in a 
proceeding docketed for a hearing on the record, but such participation 
shall be limited to providing comments pursuant to Sec.  3010.140 unless 
otherwise directed.

[[Page 398]]

    (b) Notices of intervention. 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 postal services 
utilized by the intervenor giving rise to the intervenor's 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, when necessary, 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 by the Commission or its 
Secretary, unless for good cause shown, the Commission authorizes a late 
filing. Without a showing for good cause, late intervenors shall be 
subject to and may not challenge decisions by the Commission or 
presiding officer made prior to acceptance of the request for late 
intervention.
    (d) Oppositions. (1) Except as otherwise provided in paragraph 
(d)(2) of this section, oppositions to notices of intervention may be 
filed by any party in the proceeding no later than ten days after the 
notice of intervention is filed.
    (2) Oppositions to notices of interventions in proceedings 
considering the change in the nature of a postal service pursuant to 
part 3020 of this chapter may be filed by any party in the proceeding no 
later than three days after the notice of intervention is filed.
    (3) Pending Commission action, an opposition to intervention shall, 
in all proceedings except those considering the change in the nature of 
a postal service pursuant to part 3020 of this chapter, 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.  3010.104 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, propounding discovery, cross-examining witnesses, filing 
briefs, and presenting oral arguments to the Commission or presiding 
officer. No intervention shall be deemed to constitute a decision by the 
Commission that the intervenor is aggrieved for purposes of perfecting 
an appeal of any final order of the Commission.



Sec.  3010.143  Representation of persons.

    (a) By whom. An individual may participate on the individual's own 
behalf; a member of a partnership may represent the partnership; and an 
officer may represent a corporation, limited liability company, trust, 
unincorporated association, or governmental entity. 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 or an attorney acting in a 
representative capacity appears in person, submits a document to the 
Commission using the Filing Online system as a principal account holder, 
or signs a paper filed with the Commission, the personal appearance, 
online submission, or signature, shall constitute a representation to 
the Commission that that individual is authorized to represent the 
particular person on whose behalf the individual acts. Any individual 
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 the individual's authority to act 
in such capacity.

[[Page 399]]

    (c) Notice of appearance and withdrawal of appearance. An individual 
intending to appear before the Commission or its presiding officer in a 
representative capacity in a proceeding before the Commission 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 
person whom the individual represents as the individual to whom 
communications from the Commission in regard to the filing are to be 
addressed. An individual whose authority to represent a person 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 by the District of Columbia Rules of Professional Conduct.
    (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 grounds 
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.



Sec.  3010.144  Limitation of participation by investigative or 
prosecuting officers.

    No officer, employee, or agent of the Commission who participates 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.



          Subpart D_Notices, Motions, and Information Requests



Sec.  3010.150  Notices.

    (a) Purpose. A notice is a document that announces a past, present, 
or future, event or occurrence. A notice shall not be combined with a 
request for any order or ruling that otherwise should be presented by 
motion. The Commission or presiding officer shall not combine a notice 
with a Commission order or a presiding officer's ruling, unless the 
title of the document clearly states the intent of document being 
issued.
    (b) Filing requirements. The title of any document filed as a notice 
shall contain the word ``notice.'' Additional requirements for the 
content of specific forms of notices are provided throughout chapter III 
of this title, where appropriate.



Sec.  3010.151  Notices and orders initiating proceeding.

    (a) Upon a finding that a matter is properly before the Commission, 
the Commission shall issue a notice and order initiating the proceeding 
to consider that matter. The rules in this section apply to all 
proceedings except for:
    (1) Proceedings to consider certain negotiated service agreements, 
which are noticed pursuant to Sec.  3010.152; and
    (2) Proceedings to consider the appeal of a Postal Service 
determination to close or consolidate post office, pursuant to part 3021 
of this chapter.
    (b) The notice and order shall:
    (1) Describe the general nature of the proceeding, i.e., a 
complaint, a rulemaking, a change in rates, a change in the product 
lists, a change in the nature of postal services, etc.;
    (2) Identify the person(s) requesting the initiation of the docket, 
if applicable;
    (3) Refer to the legal authority under which the proceeding is to be 
conducted;
    (4) Provide a sufficient description of the matter being considered 
such that the reader is informed of the substance of the proceeding, and 
provide direction as to where further information may be obtained;

[[Page 400]]

    (5) Establish the docket under which the proceeding will be 
conducted;
    (6) Assign a Public Representative to represent the interests of the 
public, when required;
    (7) Describe how interested persons may participate in the 
proceeding;
    (8) Establish procedural deadlines, if known; and
    (9) Include such other information as the Commission deems 
appropriate.
    (c) For proceedings docketed for a hearing on the record pursuant to 
subpart F of this part, the notice and order shall also:
    (1) Specify the date by which notices of intervention and requests 
for hearing must be filed;
    (2) Specify the date, time, and place of a prehearing conference or 
first public hearing, if known; and
    (3) Include the procedural schedule provided for under Sec.  
3020.110 of this chapter in proceedings to consider changes in the 
nature of postal services pursuant to part 3020 of this chapter.
    (d) The document shall be published in the Federal Register.



Sec.  3010.152  Notices initiating dockets for consideration of 
negotiated service agreements.

    (a) The Secretary shall issue a notice to initiate a docket for each 
Postal Service request which proposes the addition or removal of a 
negotiated service agreement from the market dominant or the competitive 
product list, or the modification of an existing product currently 
appearing on the market dominant or the competitive product list. 
Multiple requests may be combined into a single notice.
    (b) The document shall specify:
    (1) The docket number associated with each Postal Service request;
    (2) The title of each Postal Service request;
    (3) The request's acceptance date;
    (4) The legal authority cited by the Postal Service for each 
request;
    (5) The appointment of an officer of the Commission to represent the 
interests of the general public in the proceeding; and
    (6) The comment deadline pertaining to each request.
    (c) The document shall be published in the Federal Register.



Sec.  3010.160  Motions.

    (a) Motions. A motion is an application for a Commission order or 
ruling by a presiding officer. Motions may be presented by any person 
who participates in, or who seeks to participate in, a proceeding before 
the Commission. Motions may be supported by declarations, exhibits, 
library references, attachments, and other submissions. Motions shall 
set forth with particularity the ruling or relief sought, the grounds 
therefore and the statutory and other authorities relied upon. Motions 
shall be in writing, except that after a hearing has convened, motions 
may be made orally to the Commission or to the presiding officer if one 
has been appointed.
    (b) Responses to motions. A response to a motion may be presented by 
any person who participates in, or who seeks to participate in, a 
proceeding before the Commission. Responses shall state with 
particularity the position of the person submitting the response with 
regard to the relief or ruling requested in the motion and the grounds 
therefore and the statutory and other authorities relied upon. Responses 
to written motions must be filed within seven days after the motion is 
filed and posted on the Commission's website, or such other deadline as 
the rules of practice provide or as the Commission or presiding officer 
may establish. Responses to oral motions made during a hearing may be 
made orally to the Commission or to the presiding officer if one has 
been appointed, unless directed to reduce the response to writing for 
subsequent consideration.
    (c) Replies. Unless the Commission or presiding officer otherwise 
provides, no reply to a response or any further responsive document may 
be filed.
    (d) Rulings. The Commission or the presiding office may rule on a 
motion in writing, or orally during a hearing. A ruling may be issued 
immediately, without waiting for a response, whenever the person 
propounding the motion asserts that all affected persons have been 
contacted and agree not to oppose the motion or when the Commission in 
its discretion determines that immediate action is appropriate.

[[Page 401]]



Sec.  3010.161  Motions for waiver.

    (a) Any person may file a motion requesting that any requirement 
imposed by regulation, order, ruling, or Commission, Chairman, or 
presiding officer request be waived.
    (b) Motions for waiver will not be entertained unless timely filed 
so as to permit disposition of the motion prior to the date specified 
for the requirement for which waiver is requested. The pendency of a 
motion for waiver does not excuse any person from timely meeting the 
requirement for which the waiver is requested.
    (c) Motions for waiver may be granted in whole or in part to the 
extent permitted by law upon a showing of good cause and that such 
waiver will be consistent with the public interest and will not unduly 
prejudice the interests of other participants.



Sec.  3010.162  Motions for continuances and extensions of time.

    (a) Any person may file a motion requesting the continuance of a 
hearing or the extension of time for any deadline.
    (b) The motion should be filed before the expiration of the 
specified time for the deadline for preforming the act for which the 
continuance or extension is requested.
    (c) The motion shall only be granted upon consideration of the 
potential adverse impact, if any, on other participants and the overall 
impact on the procedural schedule.



Sec.  3010.163  Motions for late acceptance.

    (a) Any person may file a motion requesting that the Commission or 
the presiding officer accept any material filed by that person after an 
established filing deadline.
    (b) The motion should be filed prior to or concurrent with the 
filing of any material filed after the established deadline.
    (c) The Commission or the presiding officer are under no obligation 
to further consider any material filed after an established deadline, 
unless late acceptance is approved by the Commission or presiding 
officer. Posting late filed material to the Commission's website alone 
is not an indication that the material will be considered.



Sec.  3010.164  Motions to strike.

    (a) Any person may, by motion, request that any material be stricken 
from consideration in any proceeding.
    (b) Motions to strike are requests for extraordinary relief that 
must be supported with justification for why the material should be 
stricken from consideration. Motions to strike shall not be used as a 
substitute for rebuttal testimony, briefs, comments, or any other form 
of pleading.



Sec.  3010.165  Motions for reconsideration.

    (a) Any person may file a motion requesting reconsideration of a 
final order by the Commission.
    (b) The motion shall be filed within 15 days of the issuance of the 
final order that is the subject of the motion and must:
    (1) Briefly and specifically allege material errors of fact or law 
and the relief sought; and
    (2) Be confined to new questions raised by the determination or 
action ordered and upon which the moving party had no prior opportunity 
to submit arguments.
    (c) Upon filing a motion for reconsideration, the underlying 
Commission order is not deemed to be final for purposes of 39 U.S.C. 
3663 until final disposition of the motion.

[87 FR 43214, July 20, 2022]



Sec.  3010.170  Information requests.

    (a) An information request is an informal discovery mechanism used 
at the discretion of the Commission, the Chairman of the Commission, or 
a presiding officer to obtain information that is likely to materially 
assist the Commission in the conduct of its proceedings, in the 
preparation of its reports, or in the performance of its functions under 
title 39 of the United States Code.
    (b) Information requests may be used to:
    (1) Require the Postal Service in any proceeding, or any party to a 
Commission hearing on the record, to provide any information, and 
associated documents or things in its possession or control, or any 
information, and any associated documents or things that it

[[Page 402]]

can obtain through reasonable effort and expense; or
    (2) Request that any person other than the Postal Service or a party 
to a Commission hearing on the record provide any information, and any 
associated documents or things that it can obtain through reasonable 
effort and expense.
    (c) Information that can be sought by information request includes, 
but is not limited to, explanations, confirmations, factual 
descriptions, data, documents, and other materials. Documents refer to 
hard copy or electronic conveyance of information and may be stored in 
any medium from which information can be obtained either directly or, if 
necessary, after translation into a reasonably usable form. Documents 
include, but are not limited to, writings, notes, graphs, charts, data 
files, emails, drawings, photographs, and images. Materials include all 
matter, other than documents, that convey information.
    (d) Information requests shall describe the information, documents, 
or things sought; shall briefly explain the reason for the request; and 
shall specify a date by which the response(s) shall be due.
    (e) Any person may request the issuance of an information request by 
motion. The motion shall list the information, documents, or things 
sought; shall explain the reasons the information request should be 
issued; and shall demonstrate why the information sought is relevant and 
material to the Commission's duties under title 39 of the United States 
Code. Upon consideration of the motion and any responses, the 
Commission, the Chairman of the Commission, or presiding officer may 
issue an information request that includes some or all of the proposed 
questions or modified versions of some or all of the proposed questions. 
Motions that do not result in the issuance of an information request 
prior to the Commission's final decision in the docket shall be deemed 
denied.



        Subpart E_Proceedings Using Notice and Comment Procedures



Sec.  3010.200  Applicability.

    (a) Except as otherwise provided in this section, the Commission 
shall conduct proceedings in conformance with the notice and comment 
procedures of this subpart whenever:
    (1) The Commission is considering the issuance, amendment, or repeal 
of any Commission rule or regulation;
    (2) The Commission is seeking information to inform potential future 
Commission action with or without the issuance of a final decision; or
    (3) The Commission in the exercise of its discretion determines it 
is appropriate.
    (b) Unless the Commission orders otherwise, the rules in this 
subpart shall not apply to proceedings governed by subpart F of this 
part (Proceedings with an Opportunity for a Hearing on the Record). The 
rules in this subpart also shall not apply to the following parts of 
subchapter D of chapter III (Special Rules of Practice for Specific 
Proceeding Types) of this title: part 3020 (Rules Applicable to Requests 
for Changes in the Nature of Postal Services) of this chapter, part 3021 
(Rules for Appeals of Postal Service Determinations to Close or 
Consolidate Post Offices) of this chapter, part 3022 (Rules for 
Complaints) of this chapter, part 3023 (Rules for Rate or Service 
Inquiries) of this chapter, and part 3024 (Special Rules for Complaints 
Alleging Violations of 39 U.S.C. 404a) of this chapter.



Sec.  3010.201  Initiation of a proceeding.

    (a) The Commission may on its own motion initiate a proceeding under 
this subpart by issuing a notice and order initiating proceeding 
pursuant to Sec.  3010.151.
    (b)(1) Any person may request the initiation of a proceeding under 
this subpart by filing a petition with the Commission pursuant to the 
filing requirements of subpart B of this part. The petition shall:
    (i) Provide the name, address, phone number and other pertinent 
contact information of the requesting person;
    (ii) Identify the subject matter of the petition;

[[Page 403]]

    (iii) Provide specific proposals, including specific language, in 
regard to the subject matter of the petition;
    (iv) Provide all facts, views, arguments, and data deemed to support 
the action requested; and
    (v) Describe the impact of the proposal on the person filing the 
petition, the Postal Service, the mailing community, and the Commission, 
as applicable.
    (2) Upon consideration of the petition, the Commission in its 
discretion may initiate a proceeding under this subpart by issuing a 
notice and order initiating proceeding pursuant to Sec.  3010.151, 
reject the petition, or defer a decision whether to grant or reject the 
petition. The Commission shall provide an explanation for the rejection 
or delay in consideration of any petition.
    (c) Subparts A, B, C, and D of this part apply to the initiation and 
conduct of proceedings under this subpart E.



Sec.  3010.202  Participation in notice and comment proceedings.

    (a) Comments. The primary method for participating in notice and 
comment proceedings is through the filing of comments in accordance with 
Sec.  3010.140. The notice and order initiating proceeding filed 
pursuant to Sec.  3010.151 shall provide the deadline for filing 
comments, and if provided for, reply comments.
    (b) Information requests. The Commission, Chairman, or presiding 
officer may in its or their own discretion or, if requested by an 
interested person by motion, issue information requests pursuant to 
Sec.  3010.170.
    (c) Technical conferences. The Commission, Chairman, or presiding 
officer may in its or their own discretion or, if requested by an 
interested person by motion, convene one or more off the record 
technical conferences to consider the matters being considered.
    (d) Oral presentations. The Commission, Chairman, or presiding 
officer may in its or their own discretion or, if requested by an 
interested person by motion, permit oral presentations regarding the 
matters being considered.
    (e) Other procedures. The Commission, the Chairman, or presiding 
officer may order additional procedures as appropriate.



Sec.  3010.203  Commission action.

    (a) The Commission shall consider all relevant comments and material 
of record before taking any final action. Any final decision which 
includes the issuance, amendment, or repeal of a rule or regulation, 
shall, at a minimum, publish the final rule or regulation in the Federal 
Register.
    (b) Any issuance, amendment, or repeal of a rule or regulation will 
be made effective not less than 30 days from the time it is published in 
the Federal Register except as otherwise specified in paragraph (c) of 
this section. If the order issuing, amending, or repealing a rule does 
not specify an effective date, the effective date shall be 30 days after 
the date on which the Commission's order is published in the Federal 
Register, unless a later date is required by statute or is otherwise 
specified by the Commission.
    (c) For good cause shown by publication with the rule, any issuance, 
amendment, or repeal of a rule may be made effective in less than 30 
days from the time the Commission's order is published in the Federal 
Register.
    (d) Rules involving any military, naval or foreign affairs function 
of the United States; matters relating to agency management or 
personnel, public property, loans, grants, benefits or contracts; rules 
granting or recognizing exemption or relieving restriction; rules of 
organization, procedure or practice; or interpretative rules; and 
statements of policy may be made effective without regard to the 30-day 
requirement.



 Subpart F_Proceedings With an Opportunity for a Hearing on the Record.



Sec.  3010.300  Applicability.

    The Commission shall conduct proceedings on the record with the 
opportunity for a hearing subject to this subpart whenever:
    (a) The Commission determines that a complaint filed under part 3022 
of this chapter raises one or more material issues of fact or law in 
accordance with

[[Page 404]]

Sec.  3022.30 of this chapter and a proceeding on the record with the 
opportunity for a hearing is necessary;
    (b) The Commission determines that the streamlined procedures in 
part 3020 of this chapter applicable to a Postal Service request to 
change the nature of postal services which will generally affect service 
on a nationwide or substantially nationwide basis are not appropriate; 
or
    (c) The Commission in the exercise of its discretion determines it 
is appropriate.



Sec.  3010.301  Notice of proceeding.

    Whenever the Commission determines that a proceeding will be held on 
the record with an opportunity for a hearing under this part, it shall 
publish notice of the proceeding in the Federal Register pursuant to 
Sec.  3010.151.



Sec.  3010.302  Prehearing conferences.

    (a) Initiation and purposes. The Commission or the presiding 
officer, if one has been appointed, may direct the parties 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 (e) of this section. Prehearing conference procedures 
shall be rigorously pursued by all parties.
    (b) Who presides. The presiding officer, if one has been designated, 
shall preside over prehearing conferences. If a presiding officer has 
not been designated or is otherwise unavailable for a prehearing 
conference, then the ranking Commissioner in attendance shall be 
considered the presiding officer for that conference. The presiding 
officer shall open and close each prehearing conference session and 
shall be responsible for controlling the conduct of the conference.
    (c) Informal off-the-record procedures. In order to make the 
prehearing conference as effective as possible, the presiding officer 
may direct that conferences be held off the record, without the 
presiding officer present. Informal off-the-record conferences shall be 
presided over by the Public Representative or such other person as the 
parties may select. At off-the-record conferences, parties 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 (e) of this 
section. A report on the results of off-the-record conferences shall be 
made to the presiding officer on the record at a time specified by the 
presiding officer. The presiding officer shall then determine the 
further prehearing procedures, if any, to be followed.
    (d) Required preparation and cooperation of all parties. All parties 
in any proceeding before the Commission are required and expected to 
come to prehearing conferences fully prepared to discuss in detail and 
resolve all matters, such as those specified in paragraph (e) of this 
section, in the notice of the prehearing conference, and in such other 
notice or agenda as may have been issued by the Commission or the 
presiding officer. All parties are required and expected to cooperate 
fully at all stages of the proceeding to achieve these objectives 
through thorough advance preparation for the prehearing conference, 
including informal communications between the parties, 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 party 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 party with regard thereto, including all objections to the 
agreements reached, actions taken, or rulings issued by the presiding 
officer with regard thereto.
    (e) Matters to be pursued. At the prehearing conference, the 
presiding officer and the parties shall consider and resolve such 
matters as:
    (1) The definition and simplification of the issues, including any 
appropriate explanation, clarification, or amendment of any proposal, 
filing, evidence,

[[Page 405]]

complaint or other pleading filed by any party;
    (2) Arrangements for timely completion of discovery from the Postal 
Service or any other party of information regarding any issues in the 
proceeding, prior filings, evidence or pleadings of any party;
    (3) Procedures for timely discovery with regard to any future 
evidentiary filings of any party;
    (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) The possible grouping of 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;
    (7) Limitation of the scope of the evidence and the number of 
witnesses in order 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 and, if advisable, simultaneous hearings;
    (10) Establishment of dates for the submission and service of such 
written testimony and exhibits as may be appropriate in advance of the 
hearing;
    (11) The 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 parties to the conduct of 
the entire proceedings off the record.
    (f) Rulings by presiding officer. (1) The presiding officer at a 
prehearing conference, shall, irrespective of the consent of the 
parties, dispose of by ruling:
    (i) Any of the procedural matters itemized in paragraph (e) of this 
section; and
    (ii) Such other procedural matters on which the presiding officer is 
authorized to rule during the course of the hearing if ruling at this 
stage would expedite the proceeding.
    (2) 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 parties, the actions taken, 
and the rulings made by the presiding officer. Such rulings shall 
control the subsequent course of the proceedings unless modified during 
the hearing to prevent manifest injustice.



Sec.  3010.303  Hearing format.

    (a) In any case noticed for a proceeding to be determined on the 
record, the Commission or the presiding officer, if one has been 
appointed, may determine whether to hold a public hearing, or to hold a 
hearing by written submission of material only. A public hearing may be 
held if a hearing is requested by any party to the proceeding or if the 
Commission determines that a hearing is in the public interest. 
Generally, public hearings provide an opportunity for oral cross-
examination of witnesses whereas hearings held by written submission of 
material only do not.
    (b) Once established, requests to change the hearing format may be 
proposed by motion, or by the Commission's or presiding officer's own 
motion.
    (c) Only representatives of the Commission, parties that have 
intervened in a proceeding, or persons intending to intervene prior to 
the deadline for notices of intervention may participate in a public 
hearing. However, public hearings are generally open to the public for 
observation. Public hearings may be closed to the public for good cause, 
or when confidential material is being presented.

[[Page 406]]



Sec.  3010.304  Scheduling order.

    (a) When issued. Upon consideration of the outcome of the prehearing 
conference, if held, and a determination of the need for a public 
hearing, the Commission, or the presiding officer if one has been 
appointed, shall issue a scheduling order. The scheduling order may be 
combined with any other order or ruling that the Commission or the 
presiding officer may issue. The scheduling order may be periodically 
modified as warranted.
    (b) Content of scheduling order. The content of the scheduling order 
shall be tailored to the specifics of the matter before the Commission, 
including any requirement for a public hearing. The Commission or the 
presiding officer shall consider scheduling the following:
    (1) A deadline for conclusion of discovery on proponent's direct 
case;
    (2) A deadline to request oral cross-examination of proponent's 
witnesses;
    (3) A deadline for designation of written cross-examination on 
proponent's direct case;
    (4) The time and date for a public hearing on proponent's direct 
case, or the date and procedures for entering a proponent's direct case 
into evidence in a hearing by written submission of material only;
    (5) A deadline for parties other than the proponent to file 
testimony in support of, or in rebuttal to, the proponent's direct case;
    (6) A deadline for conclusion of discovery on testimony supporting 
or rebutting the proponent's direct case;
    (7) A deadline to request oral cross-examination of other parties' 
witnesses;
    (8) A deadline for designation of written cross-examination on other 
parties' testimony;
    (9) The time and date for a public hearing on other parties' 
testimony, or the date and procedures for entering other parties' 
testimony in a hearing by written submission of material only;
    (10) A deadline for the proponent to file surrebuttal testimony to 
other parties' direct cases;
    (11) A deadline for conclusion of discovery on any proponent's 
surrebuttal rebuttal testimony;
    (12) A deadline to request oral cross-examination of proponent's 
surrebuttal witnesses;
    (13) A deadline for designation of written cross-examination on 
proponent's surrebuttal testimony;
    (14) The time and date for a public hearing on a proponent's 
surrebuttal testimony, or the date and procedures for entering a 
proponent's surrebuttal testimony in a hearing by written submission of 
material only;
    (15) A deadline for filing briefs;
    (16) A deadline for filing reply briefs; and
    (17) A deadline for requesting oral argument.
    (c) Witness availability. Parties shall promptly file notice of 
potential witness unavailability to appear at any public hearing as soon 
as known. Witness unavailability will be considered when establishing 
the initial, or any subsequent, procedural schedules. Once the initial 
scheduling order is issued, but no later than ten calendar days prior to 
a scheduled hearing, parties may file notice of preferences for dates 
and times of witness appearance at any public hearing.
    (d) Subsequent scheduling of public hearings. At the adjournment of 
any public hearing (including prehearing conferences), the Commission, 
or the presiding officer if appointed, shall announce when the hearing 
will reconvene. If an announcement is not made, the Commission or the 
presiding officer shall announce the time, date, and location of the 
subsequent hearing, or prehearing conference in writing by notice, 
order, or presiding officer ruling.



Sec.  3010.310  Discovery--general policy.

    (a) Sections 3010.311 through 3010.313 allow discovery reasonably 
calculated to lead to admissible evidence during a proceeding noticed 
for hearing on the record. In general, discovery against a party will be 
scheduled to end prior to the receipt into evidence of that party's 
direct case. An exception to this procedure shall operate in all 
proceedings set for hearing when a party needs to obtain information 
(such as operating procedures or data) available only from the Postal 
Service. Such discovery requests are permissible only for the purpose of 
the development of

[[Page 407]]

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 Sec. Sec.  3010.311 
through 3010.313 are not exclusive. Parties 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 party or an officer or agent of a party fails to obey an 
order of the Commission or the presiding officer to provide or permit 
discovery pursuant to Sec. Sec.  3010.311 through 3010.313, 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 parties obtaining the order, or 
prohibit the disobedient party from introducing designated matters in 
evidence, or strike the evidence, complaint or pleadings or parts 
thereof.



Sec.  3010.311  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 party may propound to any other 
party in a proceeding written, sequentially numbered interrogatories, by 
witness, requesting non-privileged information relevant to the subject 
matter and reasonably calculated to lead to the discovery of admissible 
evidence in such proceeding, to be answered by the party served, who 
shall furnish such information as is available to the requesting party. 
A party through interrogatories may require any other party to identify 
each person whom the other party expects to call as a witness at the 
hearing and to state the subject matter on which the witness is expected 
to testify. The party propounding the interrogatories shall file them 
with the Commission and serve them on the answering party. 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 party 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 party responding to the 
interrogatories shall file the answers with the Commission and serve 
them on the requesting party 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 grounds for every 
objection shall be clearly and fully stated. If an objection is made to 
part of an interrogatory, the part shall be specified. A party claiming 
privilege shall identify the specific evidentiary privilege asserted and 
state the reasons for its applicability. A party 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

[[Page 408]]

answered until a prehearing conference or other later time. Objections 
shall be filed with the Commission and served on the requesting party 
within ten days of the filing of the interrogatories. Any ground not 
stated in a timely objection is waived unless excused by the Commission 
or presiding officer for good cause shown.
    (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. Parties 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 party 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 overruled, or may compel an additional answer 
if the initial answer is found to be inadequate. Such compelled answers 
shall be filed with the Commission and served on the compelling party 
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 party who has answered 
interrogatories is under the duty to seasonably amend a prior answer if 
the individual or party obtains information upon the basis of which the 
individual or party knows that the answer was incorrect when made or is 
no longer true. Parties 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. Parties 
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 party 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 party or person from undue annoyance, embarrassment, 
oppression, or expense.



Sec.  3010.312  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 party may serve on any other party 
to the proceeding a request to produce and permit the party making the 
request, or someone acting on behalf of the requesting party or the 
requesting party's agent 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 or reasonably 
calculated to lead to the discovery of admissible evidence and that are 
in the custody or control of the party 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 party requesting the production of 
documents or things shall file its request with the Commission and serve 
the request on the responding party.
    (b) Answers. The party responding to the request shall file an 
answer with the Commission and serve the answer on the requesting party 
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. The responding party may produce copies 
of

[[Page 409]]

documents or of electronically stored information in lieu of permitting 
inspection. Production must be completed no later than the time for 
inspection specified in the request unless good cause is shown.
    (c) Objections. In the interest of expedition, the grounds for 
objection shall be clearly and fully stated. If an objection is made to 
part of an item or category, the part shall be specified. Any objection 
must state whether any responsive materials are being withheld on the 
basis of that objection. A party claiming privilege shall identify the 
specific evidentiary privilege asserted and state with particularity the 
reasons for its applicability. A party 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 and 
served on the requesting party within ten days of the request for 
production. The responding party may state an objection to a request to 
produce electronically stored information. If it objects to the form of 
the documents or things requested (or if no form was specified in the 
request), the responding party must state the form or forms it intends 
to use to produce the requested information.
    (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. Parties 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 party 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 overruled. Such 
compelled documents or things shall be made available to the party 
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.
    (f) Orders and rulings. The Commission or the presiding officer may 
direct any party or person to respond to a request for inspection on 
such terms and conditions as are just and may for good cause impose any 
protective conditions, including limitations or preconditions for 
inspections, as justice requires to protect a party or person from undue 
annoyance, embarrassment, oppression, or expense.



Sec.  3010.313  Requests for admissions for purpose of discovery.

    (a) Service and content. In the interest of expedition, any party 
may serve upon any other party 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. Each requested admission shall be set forth 
separately and shall be deemed admitted unless within 14 days after the 
request is filed (or such other period as may be fixed by the Commission 
or presiding officer) the party to whom the request is directed files a 
written answer denying the requested admission pursuant to paragraph (c) 
of this section or objecting pursuant to paragraph (d) of this section. 
The party requesting an admission shall file its request with the 
Commission and serve the request on the responding party.
    (b) Answers. Answers that fail to admit a matter as requested shall 
specifically deny the matter or set forth in detail the reasons why the 
answering party cannot truthfully admit or deny the matter. A denial 
shall fairly meet the substance of the requested admission. When a party 
qualifies an answer or denies only a part of the admission requested, 
the party shall specify so much of the requested admission as is true 
and qualify or deny the remainder. A failure to admit or deny for lack 
of information or knowledge shall not be made unless the responding 
party

[[Page 410]]

states that it has made a reasonable inquiry and that information known 
or readily obtainable by the party is insufficient to enable the party 
to admit or deny. A party who answers a request for admission shall file 
its answer with the Commission and serve the answer on the requesting 
party.
    (c) Objections. If an objection is made, the grounds for such 
objection shall be clearly and fully stated. If an objection is made to 
part of an item, the part to which an objection is made shall be 
specified. A party claiming privilege shall identify the specific 
evidentiary privilege asserted and state the reasons for its 
applicability. A party 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 and served on 
the requesting party, within ten days of the request for admissions.
    (d) Motions to compel responses to requests for admissions. The 
party who has requested an admission may move to determine the 
sufficiency of the answers or objections. 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. Parties who have objected to requests for admissions which 
are the subject of a motion to compel shall have seven days to file a 
response. Responses will be considered supplements to the arguments 
presented in the initial objection.
    (e) Compelled answers. 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 overruled. Such compelled answers shall 
be filed with the Commission and served on the requesting party 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.



Sec.  3010.320  Settlement conferences.

    Any party to a proceeding may submit offers of settlement or 
proposals of adjustment at any time and may request a conference between 
the parties to consider such offers or proposals. The Commission or the 
presiding officer shall afford the parties 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 party claiming such privilege.



Sec.  3010.321  Hearings.

    (a) How convened. (1) Hearings shall be convened by the issuance of 
a notice, order, or presiding officer's ruling that is published in the 
Federal Register. Only the first session of a public hearing need be 
noticed and published in the Federal Register. All subsequent sessions 
within a docket are to be considered part of the same hearing. If there 
is a prehearing conference, the prehearing conference is to be 
considered the first hearing session in that docket.
    (2) At the adjournment of each hearing session, the presiding 
officer responsible for the conduct of that hearing session shall 
announce if and when the hearing will reconvene. If an announcement is 
not made at the adjournment of the hearing session, the Commission or 
presiding officer shall announce the time, date, and location of any 
subsequent hearing, or prehearing conference, in writing by notice, 
order, or presiding officer ruling.
    (b) Who presides. The presiding officer, if designated, shall 
preside over a public hearing. If a presiding officer has not been 
designated or is otherwise unavailable for a hearing, then the ranking 
Commissioner in attendance shall be considered the presiding officer for 
that hearing. The presiding officer shall open and close each session of

[[Page 411]]

the hearing, and shall be responsible for controlling the conduct of the 
hearing.
    (c) Entering of appearances. The presiding officer before whom the 
hearing is held will cause to be entered on the record all appearances 
together with a notation showing on whose behalf each such appearance 
has been made.
    (d) Witnesses. All witnesses are expected to be available for public 
hearings. Unless otherwise ordered by the presiding officer, a witness 
need only attend a hearing on those days scheduled for entering that 
witness's testimony. Subject to the discretion and prior approval of the 
presiding officer, a witness may be excused from appearing at a hearing 
and may have the witness's written testimony and cross-examination 
entered into evidence by counsel.
    (e) Order of presentations. (1) The proponent of a matter before the 
Commission shall present the proponent's direct case first. In matters 
initiated by the Postal Service, the Postal Service shall be considered 
the proponent. In complaint proceedings under section 3662 of the Act, 
the complainant shall be considered the proponent. The proponent also 
shall be provided an opportunity to respond to any rebuttal to the 
proponent's direct case. In all other instances, the Commission or the 
presiding officer shall determine the order of presentation.
    (2) The order of presentations by parties other than the proponent 
shall be determined by the Commission or the presiding officer.
    (3) The Commission or presiding officer shall announce the order of 
presentation of parties and individual witnesses prior to hearing 
sessions and shall issue such other procedural orders as may be 
necessary to assure the orderly and expeditious conclusion of the 
hearing. Parties may present their preferences for order of appearance 
to the Commission or the presiding officer orally at a hearing or by 
filing a notice prior to the scheduled hearing date. Parties who 
disagree with a proposed order of appearances may move for a revised 
order of appearances either orally at a hearing or by filing a written 
motion pursuant to Sec.  3010.160.
    (f) Swearing in of witnesses. (1) Witnesses attending a hearing 
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. The witness shall be sworn by means of the 
following (or an equivalent): ``Please raise your right hand. Do you 
solemnly swear (or affirm), that the testimony that you are about to 
give is the truth, the whole truth, and nothing but the truth? Please 
state your full name.''
    (2) The oath shall be given upon the first appearance of the witness 
providing testimony. Upon subsequent appearances, the witness is to be 
reminded by the presiding officer that the witness remains under oath 
for the duration of the proceeding.
    (3) Witnesses not attending a hearing whose testimony is entered by 
counsel during a hearing shall attach a signed declaration that the 
testimony being submitted is that of the witness. A declaration shall be 
included with each piece of written testimony, and each set of written 
cross-examination. The declaration shall state the following (or an 
equivalent): ``Declaration of [witness name]. I, [witness name], hereby 
declare under penalty of perjury that: The [testimony, designated 
responses to written cross-examination] filed under my name were 
prepared by me or under my direction; and were I to [provide oral 
testimony, respond orally to the questions appearing in the 
interrogatories], my answers would be the same.''
    (4) Hearings that are conducted by the written submission of 
testimony only shall also attach written declarations to testimony and 
cross-examination as described above.
    (g) Presentation of the evidence--(1) Presentations by parties. Each 
party shall have the right to present evidence, cross-examine witnesses 
(limited to testimony adverse to the party conducting the cross-
examination), and to present objections, motions, and arguments. The 
case-in-chief of parties other than the proponent shall be in writing 
and shall include the party's direct case and rebuttal, if any, to the 
initial proponent's case-in-chief. A party's presentation may be 
accompanied

[[Page 412]]

by a trial brief or legal memoranda. Legal memoranda on matters at issue 
are generally welcome at any stage of the proceeding. Parties will be 
given an opportunity to rebut presentations of other parties, including 
an opportunity for the initial proponent to present surrebuttal 
evidence. New affirmative matter (not in reply to another party's direct 
case) should not be included in rebuttal testimony 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 testimony. (i) Written testimony shall be offered in 
evidence by motion. The motion shall be made orally during a hearing, or 
in writing when the hearing is conducted by the written submission of 
testimony only. When a party moves to enter testimony into the record, 
three hard copies of the document shall simultaneously be submitted to 
the Commission for the record. The copies are to be printed single-
sided, and not stapled, hole-punched, or bound, but may be fastened 
together by paper or binder clip, or equivalent.
    (ii) Witnesses shall be provided an opportunity to verify that the 
written testimony they are sponsoring is their testimony and that it 
would be the same if given orally. The witness, or counsel, shall state 
the original filing date of the testimony and identify all subsequent 
filings that amended the original testimony. If there are any final 
corrections to the testimony, the corrections may be noted on the hard 
copies submitted to the Commission. However, the witness shall be 
required to file errata to the testimony within seven days of the 
hearing, making corrections only to the extent as identified during the 
hearing. Any other changes shall be requested separately by motion to 
amend the record.
    (iii) Parties shall be provided an opportunity to object to all or 
part of a witness's written testimony prior to entering that testimony 
into the record. Objections that have not previously been made in 
writing at least 14 days prior to the hearing date shall be granted only 
under extraordinary circumstances.
    (iv) After resolution of all objections, the presiding officer shall 
order the testimony entered into the record as evidence. Unless 
otherwise ordered by the presiding officer, the written testimony shall 
not be copied into the hearing transcript.
    (3) Library references. (i) Library references sponsored by a 
witness and associated with the witness's written testimony or written 
cross-examination may be offered in evidence by motion. The motion shall 
be made orally during a public hearing, or in writing for a hearing that 
is conducted by the written submission of testimony only.
    (ii) Witnesses shall be provided an opportunity to verify that the 
library reference is their library reference and to affirm that they are 
in fact sponsoring the library reference. If a witness inadvertently 
fails to verify and affirm that the witness is sponsoring a library 
reference that is cited in written testimony or in response to written 
cross-examination, it will be presumed that the library reference is to 
be included in the record to the extent specified in the notice of the 
filing of the library reference.
    (iii) Parties shall be provided an opportunity to object to all or 
any part of the library reference being entered into the record. 
Objections that have not been made in writing at least 14 days prior to 
the hearing date shall be granted only under extraordinary 
circumstances.
    (iv) After resolution of all objections, the presiding officer shall 
order the library reference be entered into the record as evidence. 
Unless ordered by the presiding officer, library references shall not be 
copied into the hearing transcript.
    (4) Written cross-examination. (i) Written cross-examination will be 
utilized as a substitute for oral cross-examination whenever possible, 
particularly to introduce factual or statistical evidence. Written 
cross-examination may be offered in evidence by motion. The motion shall 
be made orally during a public hearing, or in writing for a hearing that 
is conducted by the written submission of testimony only. Written cross-
examination proposed by parties

[[Page 413]]

other than the party associated with the witness shall be considered 
first, followed by that of the party of the witness.
    (ii) Designations of written cross-examination should be filed with 
the Commission and served on the answering party 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 party 
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, ``PR-T1-17 to USPS witness Jones, answered by USPS witness 
Smith (March 1, 1997) as updated (March 21, 1997)).'' When a party 
designates written cross-examination, three hard copies of the documents 
to be included shall simultaneously be submitted to the Secretary. The 
documents are to be printed single-sided, and not stapled, hole-punched, 
or bound, but may be fastened together by paper or binder clip, or 
equivalent. The Secretary 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.
    (iii) A witness shall be provided an opportunity to verify that the 
written cross-examination is that of the witness and to assert that if 
the written cross-examination were being provided orally at the hearing 
it would be that of the witness. If there are any final corrections to 
the written cross-examination, the corrections may be noted on the hard 
copies before submission to the Commission.
    (iv) Parties shall be provided an opportunity to object to all or 
any part of the written cross-examination prior to entering the 
testimony into the record.
    (v) After resolution of all objections, the presiding officer shall 
order the written cross-examination entered into the record as evidence. 
The presiding office shall direct that the written cross-examination be 
copied into the hearing transcript.
    (5) Oral cross-examination. (i) Oral cross-examination will be 
permitted for clarifying written cross-examination and for testing 
assumptions, conclusions, or other opinion evidence.
    (ii) 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. If no notices are filed, and the Commission or presiding 
officer has no other reason for the witness to appear, the Commission or 
the presiding officer, in their discretion, may excuse the witness from 
appearing at the hearing and direct that the witness's testimony be 
entered by counsel.
    (iii) A party 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 full business days 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 party. When presented, examination exhibits are not to be 
considered record evidence. They are to be transcribed into the record 
for reference only. If adopted by the witness, the examination exhibit 
may be offered in evidence by motion.
    (iv) At the conclusion of oral cross-examination, the witness shall 
be given an opportunity to consult with counsel. Counsel shall then be 
provided an opportunity to examine the witness for the purpose of 
clarifying statements previously made during oral cross-examination.
    (h) Institutional testimony. (1) This paragraph (h) is applicable to 
testimony offered in evidence that is not sponsored by an individual 
witness. This typically occurs when discovery questions are answered by 
the institution, and not by an individual witness.
    (2) When institutional responses are offered in evidence by any 
party, the responding party shall make available at the hearing an 
officer of the institution that has the authority to attest to

[[Page 414]]

the authenticity and truthfulness of the responses, and that has the 
knowledge to be subject to oral cross-examination in regard to the 
responses. Section 3010.321 applies as if the officer of the institution 
were an individual witness.
    (i) 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 the number of witnesses to be heard upon any issue, the 
examination by any party to specific issues, and 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.
    (j) Motions during hearing. After a hearing has commenced, a request 
may be made by motion to the presiding officer for any procedural ruling 
or relief desired. Such motions shall specify 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 party shall have the 
opportunity to answer or object to such motions at the time and in the 
manner directed by the presiding officer.
    (k) 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 a presiding officer's 
intermediate decision. This section shall not preclude a presiding 
officer, within the presiding officer's discretion, from referring any 
motion made in hearing to the Commission for ultimate determination.
    (l) 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. Any request to correct a 
transcript shall be by motion filed no later than seven days after the 
transcript, or notice of the availability of a confidential transcript, 
is posted to the Commission's website. Corrections or changes to actual 
testimony shall not be allowed.



Sec.  3010.322  Evidence--general.

    (a) Form and admissibility. In all hearings, 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

[[Page 415]]

material or relevant or not intended to be put in evidence, the party 
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 party offering the same to the other 
parties 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) 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 Sec.  3010.321(g)(3).
    (c) Commission's files. Except as otherwise provided in paragraph 
(e) of this section, any matter contained in a report or other document 
on file with the Commission may be offered in evidence by specifying the 
report, document, or other file containing the matter so offered and the 
report or other document need not be produced or marked for 
identification.
    (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. (1) 
Parties 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.
    (2) In proceedings to consider the appeal of a Postal Service 
determination to close or consolidate a post office conducted pursuant 
to part 3021 of this chapter, these requests must be made at least six 
days before the date for filing the party's direct case. Oppositions to 
motions for designations and/or requests for counter-designations shall 
be filed within three days. Oppositions to requests for counter-
designations are due within two days.
    (3) In all other proceedings subject to this section, these requests 
must, in the absence of extraordinary circumstances, be made at least 28 
days before the date for filing the party's direct case. Oppositions to 
motions for designations and/or requests for counter-designations shall 
be filed within 14 days. Oppositions to requests for counter-
designations are due within seven days.
    (4) In all proceedings subject to this section, the moving party 
must submit two copies of the identified material to the Secretary at 
the time requests for designations and counter-designations are made.
    (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.  3010.124(a) and 
(b).
    (g) Copies to parties. Except as otherwise provided in these rules, 
copies of exhibits shall be furnished to the presiding officer and to 
the parties or counsel during a hearing, unless the presiding officer 
otherwise directs.

[[Page 416]]

    (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 knowledge of the 
Commission as an expert body. Any party shall, on timely request, be 
afforded an opportunity to show the contrary.



Sec.  3010.323  Evidence--introduction and reliance upon studies
and analyses.

    (a) 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, the procedures undertaken, and references from the 
academic literature supporting the procedures undertaken. Machine-
readable data files, program files, workbooks, and all other necessary 
materials to enable independent replication of the results or program 
output if requested by the Commission or parties shall be provided in 
the form of a compact disk or other media or method approved in advance 
by the Secretary. Where a computer analysis is employed to obtain the 
result of a statistical study, all of the submissions required by 
paragraph (b) of this section shall be furnished, upon request. In 
addition, for each of the following types of statistical studies, the 
following information should be provided:
    (1) Market research. The following information shall be provided:
    (i) A clear and detailed description of the sample, observational, 
and data preparation designs, including definitions of the target 
population, sampling frame, units of analysis, questionnaires or data 
collection instruments, survey variables, and the possible values;
    (ii) An explanation of methodology for the production and analysis 
of the major survey estimates and associated sampling errors;
    (iii) A presentation of response, coverage and editing rates, and 
any other potential sources of error associated with the survey's 
quality assurance procedures;
    (iv) A discussion of data comparability over time and with other 
data sources;
    (v) A complete description and assessment of the effects of all 
editing and imputation employed;
    (vi) Identification of all applicable statistical models considered 
and the reasons the model based procedures and/or models were selected 
over other models or procedures, when model-based procedures are 
employed; and
    (vii) An explanation of all statistical tests performed and an 
appropriate set of summary statistics summarizing the results of each 
test.
    (2) Other sample surveys. The following information shall be 
provided:
    (i) 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 that can be placed on major 
estimates; and
    (ii) An explanation of the method of selecting the sample and the 
characteristics measured or counted.
    (3) Experimental analyses. The following information shall be 
provided:
    (i) A complete description of the experimental design, including a 
specification of the controlled conditions and how the controls were 
realized; and
    (ii) A complete description of the methods of making observations 
and the adjustments, if any, to observed data.
    (4) Econometric studies. The following information shall be 
provided:
    (i) A presentation of the economic theory and assumptions underlying 
the study;

[[Page 417]]

    (ii) A complete description of the econometric model(s) and the 
reasons for each major assumption and specification;
    (iii) The definition of the variables selected and the justification 
for their selection;
    (iv) 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;
    (v) 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;
    (vi) Summary descriptions and source citations for all input data 
and, upon request, a complete listing of the data. Complete descriptions 
of any alterations, adjustments, or transformations made to the data as 
received from the original sources, and the reasons for making the 
alterations, adjustments, or transformations;
    (vii) A complete report of the econometric results including, where 
applicable coefficient estimates, standard errors and t-values, 
goodness-of-fit statistics, other appropriate test statistics, the 
variance/covariance matrix of the estimates, and computed residuals for 
results computed from samples composed of fewer than 250 observations, 
and, upon request, other computed residuals; and
    (viii) Descriptions of all statistical tests of hypotheses and the 
results of such tests.
    (5) All other studies involving statistical methodology. The 
following information shall be provided:
    (i) The formula used for statistical estimates;
    (ii) The standard errors of each component estimated;
    (iii) Test statistics and the description of statistical tests and 
all related computations, and final results; and
    (iv) Summary descriptions of input data, and upon request the actual 
input data shall be made available at the offices of the Commission.
    (b) Computer analyses. (1) 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 (b)(3) 
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 
party, the Commission, or the presiding officer, unless the presumption 
is overcome by an affirmative showing. The following information shall 
be provided:
    (i) 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;
    (ii) Definitions of all input and output variables or sets of 
variables;
    (iii) A description of input and output data file organization;
    (iv) 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;
    (v) All pertinent operating system and programming language manuals;
    (vi) If the requested program is user interactive, a representative 
sample run, together with any explanation necessary to illustrate the 
response sequence;
    (vii) 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

[[Page 418]]

concerning information that is reasonably necessary to enable 
independent replication of the program output; and
    (viii) Computer simulation models offered in evidence or relied upon 
as support for other evidence, shall be bound by all applicable 
provisions of this paragraph (b) and the separate requirements of 
paragraph (a) 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.
    (2) Upon timely and otherwise proper request of a party, or sua 
sponte, the Commission or the presiding officer may rule that matters 
other than those listed in paragraphs (b)(1)(i) through (viii) of this 
section are necessary to establish the foundation for reception of the 
evidence concerned and must be furnished.
    (3) When the requestor is other than the Commission or the presiding 
officer, the cost of producing the material required in paragraphs 
(b)(1)(iv), (vi), and (vii) 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 requester.
    (4) If the recipient of a request for materials pursuant to this 
paragraph (b) 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 
(b). 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 (b)(3) of this section 
prescribes for bearing the costs referenced there. If such right cannot 
be accommodated by reasonable compensation, or by protective orders or 
other procedures, and, as a result, materials required by this paragraph 
(b) cannot be provided, the presiding officer shall determine, in the 
presiding officer's discretion, whether evidence that relies upon the 
materials not provided shall be admissible or afforded limited weight.
    (c) Other studies and analyses. 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 
(a) and (b) 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 and the steps taken to ensure the validity, accuracy, 
and reliability of the evidence. Tabulations of input data, workbooks, 
and all other materials necessary to replicate results shall be made 
available upon request at the offices of the Commission.
    (d) Expedition. The party who offers studies or analyses in evidence 
shall expedite responses to requests made pursuant to this section for 
data or other information. Responses shall be served on the requesting 
party, and notice thereof filed with the Secretary in

[[Page 419]]

accordance with the provisions of Sec.  3010.127 no later than 3 days 
after a request is made under Sec.  3010.322(e)(2) or no later than 14 
days after a request is made under Sec.  3010.322(e)(3).



Sec.  3010.324  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. (1) 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:
    (i) A description of the documents and testimony;
    (ii) A full statement of the reasons for granting in camera 
treatment; and
    (iii) A full statement of the reasons for the date on which in 
camera treatment expires.
    (2) 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.  3010.323,'' 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. 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.



Sec.  3010.325  Depositions.

    (a) When permissible. The testimony of a witness may be taken by 
deposition when authorized by the Commission or the presiding officer on 
application of any party 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;
    (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 party and will not result in undue delay or an 
undue burden to other parties.

[[Page 420]]

    (b) Application. An application for authorization to take testimony 
by deposition shall be filed 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 
parties 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, 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 
party 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 someone acting under the officer's direction 
and in the officer's presence, record the examination of the witness. 
The examination shall be transcribed in the form specified in Sec.  
3010.124(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 party 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. Parties 
shall have the right for cross-examination and objection. In lieu of 
participation in the oral examination, parties 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 party, any other party may require the party 
to introduce all of it which is relevant to the part introduced, and any 
party 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 as are paid for like 
services in the District Courts of the United States to be paid directly 
by the party or parties on whose application the deposition was taken.



Sec.  3010.330  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 the decision. In addition, subject to such consideration, 
due regard shall be given to the nature of the proceeding, the 
complexity and

[[Page 421]]

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 may direct each party to file its brief 
simultaneously with the filing of briefs by other parties. In cases 
where, because of the nature of the issues and the record or the limited 
number of parties 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 parties may be directed to file more 
than one brief and at different times rather than a single brief filed 
simultaneously with briefs filed by other parties. The Commission or 
presiding officer 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 
party;
    (3) A clear, concise, and definitive statement of the position of 
the filing party as to the matter before the Commission and the decision 
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 with the Commission 
and served on all parties as required pursuant to subpart B of this 
part.



Sec.  3010.331  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.



Sec.  3010.332  Oral argument before the presiding officer.

    In any case in which the presiding officer is to issue an 
intermediate decision, such officer may permit the presentation of oral 
argument when, in the presiding officer's 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. The presiding officer shall determine the time and place for 
oral argument, and may specify the issue or issues on which oral 
argument is to be presented, the order in which the presentations shall 
be made, and the amount of time allowed each party. A request for oral 
argument before the issuance of an intermediate decision shall be made 
during the course of the hearing on the record.



Sec.  3010.333  Oral argument before the Commission.

    (a) When ordered. In any proceeding before the Commission for 
decision, the Commission, upon the request of any party 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 party in a proceeding before the Commission 
for decision may request oral argument before the Commission by filing a 
timely motion. 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.
    (c) Notice of oral argument. The Commission shall rule on requests 
for oral

[[Page 422]]

argument, and if argument is allowed, the Commission shall notify the 
parties of the time and place set for argument, the amount of time 
allowed each party, 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 seven 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.  3010.334  Commission decisions.

    (a) At the conclusion of a proceeding on the record with the 
opportunity for a hearing, the Commission shall issue a final decision 
which either:
    (1) Adopts an intermediate decision prepared by a presiding officer; 
or
    (2) Rules upon the matters that are before the Commission, or 
provides explanation for why such rulings are not being provided.
    (b) Commission decisions shall be based on the evidence entered into 
the record, and consider the arguments filed on brief. Argument provided 
in comments may further inform the Commission's decision, but have no 
evidentiary standing and are not required to be addressed in the final 
decision.
    (c) An intermediate decision may be adopted by the Commission in 
whole or in part. When an intermediate decision is adopted in part, the 
Commission shall explain its decisions regarding both what is and is not 
adopted.
    (d) When exceptions, or objections to exceptions, to an intermediate 
decision are filed pursuant to Sec.  3010.336 by any party to the 
proceeding, the Commission shall consider and rule upon such exceptions, 
or objections to exceptions in its final decision.
    (e) Commission decisions shall be filed in the docket and served on 
all parties. Commission decisions shall be part of the record of the 
proceeding.



Sec.  3010.335  Intermediate decisions.

    (a) An intermediate decision shall be issued by the presiding 
officer which rules upon the matters that are before the Commission, or 
provides explanation for why such rulings are not being provided, in a 
proceeding on the record with the opportunity for a hearing when:
    (1) The Commission is not sitting en banc; or
    (2) The presiding office has been directed to issue an intermediate 
decision by Commission notice or order.
    (b) Intermediate decisions shall be based on the evidence entered 
into the record, and shall consider the arguments filed on brief. 
Arguments provided in comments may further inform the presiding 
officer's decision, but are not required to be addressed in the 
intermediate decision.
    (c) Intermediate decisions shall be filed in the docket and served 
on all parties. Intermediate decisions shall be part of the record of 
the proceeding.
    (d) Intermediate decisions are subject to review by the Commission 
and subject to challenge by parties to the proceeding through the filing 
of exceptions pursuant to Sec.  3010.336. After review and consideration 
of the exceptions filed, intermediate decisions may be adopted by the 
Commission, in whole or in part, as part of the final decision in the 
proceeding.
    (e)(1) The Commission may, at any time, direct the omission of an 
intermediate decision and the certification of the record for the 
Commission's consideration sitting en banc. Parties to a proceeding may, 
by motion, request the omission of an intermediate decision and the 
certification of the record for the Commission's consideration sitting 
en banc. Motions shall specify:
    (i) The concurrence of other parties; and
    (ii) Whether opportunity for filing briefs or presenting oral 
argument to the Commission is desired or waived.
    (2) Failure of any party to object to such request shall constitute 
a waiver of any objections. Motions shall be filed no later than the 
deadline for the filing of briefs. In either instance, the

[[Page 423]]

decision to omit an intermediate decision shall be based upon the 
consideration of the novelty of the matters before the Commission, and 
the timely and efficient operation of the docket.



Sec.  3010.336  Exceptions to intermediate decisions.

    (a) Briefs on exceptions and opposing exceptions. Any party in a 
proceeding may file exceptions to any intermediate decision by first 
filing a notice of intent to file a brief on exceptions with the 
Commission within seven days after the date of issuance of the 
intermediate decision or such other time as may be fixed by the 
Commission. The brief on exceptions shall be filed 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 party 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.  3010.330. 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 party to which reference is made.
    (c) Failure to except results in waiver. Any party 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 objections which 
shall be deemed to have been waived.



PART 3011_NON	PUBLIC MATERIALS PROVIDED TO THE COMMISSION-
-Table of Contents



                      Subpart A_General Provisions

Sec.
3011.100 Applicability and Scope.
3011.101 Definitions.
3011.102 Treatment of non-public materials.
3011.103 Commission action to determine non-public treatment.
3011.104 Standard for public disclosure of materials claimed to contain 
          non-public information.

    Subpart B_Submitting Non-public Materials and Seeking Non-public 
                                Treatment

3011.200 General requirements for submitting non-public materials and 
          seeking non-public treatment.
3011.201 Application for non-public treatment.
3011.202 Redacted version of the non-public materials.
3011.203 Unredacted version of the non-public materials.
3011.204 Protections for any person other than the submitter with a 
          proprietary interest.
3011.205 Non-public materials inadvertently submitted publicly.

            Subpart C_Seeking Access to Non-public Materials

3011.300 Eligibility for access to non-public materials.
3011.301 Motion for access to non-public materials.
3011.302 Non-dissemination, use, and care of non-public materials.
3011.303 Sanctions for violating protective conditions.
3011.304 Termination and amendment of access to non-public materials.
3011.305 Producing non-public materials in non-Commission proceedings.

Appendix A to Subpart C of Part 3011--Template Forms Protective 
          Conditions Statement

       Subpart D_Seeking Public Disclosure of Non-public Materials

3011.400 Motion for disclosure of non-public materials.
3011.401 Materials for which non-public treatment has expired.

Appendix A to subpart D of part 3011--Template Form

    Authority: 39 U.S.C. 503, 504.

[[Page 424]]


    Source: 83 FR 31281, July 3, 2018, unless otherwise noted. 
Redesignated at 85 FR 9615, Feb. 19, 2020.

    Effective Date Note: At 88 FR 37154, June 7, 2023, the authority 
citation for part 3011 was revised, effective July 7, 2023. For the 
convenience of the user, the revised text is set forth as follows:
    Authority: 39 U.S.C. 407, 503, 504.



                      Subpart A_General Provisions



Sec.  3011.100  Applicability and Scope.

    (a) Applicability. The rules in this part apply whenever:
    (1) The Postal Service claims that any materials it provides to the 
Commission in connection with any proceeding or other purpose under 
title 39 of the U.S. Code, contain non-public information;
    (2) Any person other than the Postal Service claims that any 
materials it provides to the Commission contain non-public information;
    (3) The Commission is in the process of determining the appropriate 
degree of confidentiality to be accorded materials identified by any 
person to contain non-public information in accordance with these rules; 
or
    (4) The Commission is in the process of determining how to ensure 
appropriate confidentiality for materials identified to contain non-
public information that is furnished to any person in accordance with 
these rules.
    (b) Scope. Information includes, but is not limited to, 
explanations, confirmations, factual descriptions, and data. Document 
refers to a hard copy or electronic conveyance of information and may be 
stored in any medium from which information can be obtained either 
directly or, if necessary, after translation into a reasonably usable 
form. Documents include, but are not limited to, writings, notes, 
graphs, charts, data files, emails, drawings, photographs, and images. 
Things include all matter, other than documents, that convey 
information. Documents and things shall collectively be referred to as 
materials.

    Effective Date Note: At 88 FR 37154, June 7, 2023, Sec.  3011.100 
was amended by adding paragraph (c), effective July 7, 2023. For the 
convenience of the user, the revised text is set forth as follows:



Sec.  3011.100  Applicability and scope.

                                * * * * *

    (c) Exemption. Except for the circumstances described in paragraphs 
(c)(1) through (3) of this section, the rules in this part do not apply 
to any non-public materials (and the non-public information contained 
therein) provided to the Commission by any person in connection with 
activities under 39 U.S.C. 407(b)(2)(A).
    (1) The following persons shall adhere to the requirements of Sec.  
3011.302 regarding the non-dissemination, use, and care of the non-
public materials (and the non-public information contained therein) 
provided to the Commission in connection with activities under 39 U.S.C. 
407(b)(2)(A).
    (i) Members of the Commission;
    (ii) Commission employees; and
    (iii) Non-employees who have executed appropriate non-disclosure 
agreements (such as contractors, attorneys, or subject matter experts) 
assisting the Commission in carrying out its duties.
    (2) Any person that discovers that non-public materials provided to 
the Commission in connection with activities under 39 U.S.C. 
407(b)(2)(A) have been inadvertently included within materials that are 
accessible to the public shall follow the procedures of Sec.  3011.205.
    (3) Non-public materials provided to the Commission in connection 
with activities under 39 U.S.C. 407(b)(2)(A) are construed to exclude 
each of the following:
    (i) Non-public materials provided by the Postal Service to the 
Commission pursuant to a subpoena issued in accordance with part 3013 of 
this chapter;
    (ii) Non-public materials filed in response to an information 
request issued in accordance with Sec.  3010.170 of this chapter;
    (iii) Non-public materials filed in compliance with any applicable 
Postal Service reporting required under part 3050 or part 3055 of this 
chapter; and
    (iv) Non-public materials filed in a Commission docket.



Sec.  3011.101  Definitions.

    (a) Non-public materials means any documents or things that are 
provided to the Commission and identified as containing non-public 
information. The Postal Service may claim that information that would be 
exempt from disclosure pursuant to 39 U.S.C. 410(c), 504(g), 3652(f), or 
3654(f) is non-public information. Any person other than the Postal 
Service with a proprietary interest in the materials may claim that 
information that would be protectable under Federal Rule of Civil 
Procedure

[[Page 425]]

26(c) is non-public information. Any person may claim that information 
that is exempt from public disclosure under 5 U.S.C. 552(b) is non-
public information. Non-public materials cease to be non-public if the 
status has expired or has been terminated by the Commission pursuant to 
this part. Except as provided by Sec.  3011.205, non-public materials 
cease to be non-public if the submitter publicly discloses the materials 
with the consent of each affected person with a propriety interest in 
the materials (if applicable). The cessation of non-public status 
applies to the particular document or thing and the particular 
information contained therein (in whole or in part, as applicable).
    (b) Submitter means any natural or legal person, including the 
Postal Service, that provides non-public materials to the Commission and 
seeks non-public treatment in accordance with the rules of this part.

[83 FR 31281, July 3, 2018, as amended at 85 FR 9641, Feb. 19, 2020]



Sec.  3011.102  Treatment of non-public materials.

    (a) Except as described in part 3011 or part 3006 of this chapter, 
the Commission will neither disclose nor grant access to any non-public 
materials (and the non-public information contained therein).
    (b) To accord appropriate confidentiality to non-public information 
and 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):
    (1) Prohibit the public disclosure of the non-public information and 
non-public materials;
    (2) Specify terms for public disclosure of the non-public 
information and non-public materials;
    (3) Order a specific method for disclosing the non-public 
information and non-public materials;
    (4) Restrict the scope of the disclosure of the non-public 
information and non-public materials as they relate to certain matters;
    (5) Restrict who may access the non-public information and non-
public materials;
    (6) Require that a trade secret be revealed only in a specific and 
limited manner or to limited or specified persons; and
    (7) Order other relief as appropriate including sealing a deposition 
or part of a proceeding.

[83 FR 31281, July 3, 2018, as amended at 85 FR 9641, Feb. 19, 2020]



Sec.  3011.103  Commission action to determine non-public treatment.

    (a) Information requests as described in Sec.  3010.170 of this 
chapter, preliminary notices, or interim orders may be issued to help 
the Commission determine the non-public treatment, if any, to be 
accorded to the materials claimed by any person to be non-public.
    (b) Upon motion by any person, the Commission may issue an order 
containing a description of and timeframe for the non-public treatment, 
if any, to be accorded to materials claimed by any person to be non-
public.
    (c) Upon its own motion, the Commission may issue notice of its 
preliminary determination concerning the appropriate degree of 
protection, if any, to be accorded to materials claimed by any person to 
be non-public. A response is due within seven calendar days of issuance 
of the preliminary determination, unless the Commission otherwise 
provides. No reply to a response shall be filed, unless the Commission 
otherwise provides. Pending the Commission's resolution of the 
preliminary determination, information designated as non-public will be 
accorded non-public treatment. The Commission will enter an order 
determining what non-public treatment, if any, will be accorded to the 
materials after the response period described in this paragraph has 
expired. The determination of the Commission shall follow the applicable 
standard described in Sec.  3011.104.

[83 FR 31281, July 3, 2018, as amended at 85 FR 9641, Feb. 19, 2020]

    Effective Date Note: At 88 FR 37154, June 7, 2023, Sec.  3011.103 
was amended by revising paragraph (a), effective July 7, 2023. For the 
convenience of the user, the revised text is set forth as follows:

[[Page 426]]



Sec.  3011.103  Commission action to determine non-public treatment.

    (a) The inadvertent failure of a submitter to concomitantly provide 
all documents required by Sec.  3011.200(a) does not prevent the 
Commission from according appropriate confidentiality to non-public 
information contained with any materials provided to the Commission. 
Information requests as described in Sec.  3010.170 of this chapter, 
preliminary notices, or interim orders may be issued to help the 
Commission determine the non-public treatment, if any, to be accorded to 
the materials claimed by any person to be non-public.

                                * * * * *



Sec.  3011.104  Standard for public disclosure of materials claimed to
contain non-public information.

    (a) In determining whether to publicly disclose materials claimed by 
the Postal Service to contain non-public information, the Commission 
shall balance the nature and extent of the likely commercial injury 
identified 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 materials in which 
the Commission determines any person other than the Postal Service has a 
proprietary interest, the Commission shall balance the interests of the 
parties consistent with the analysis undertaken by a federal court when 
applying the protective conditions appearing in Federal Rule of Civil 
Procedure 26(c).



    Subpart B_Submitting Non-Public Materials and Seeking Non-Public 
                                Treatment



Sec.  3011.200  General requirements for submitting non-public materials
and seeking non-public treatment.

    (a) Whenever providing non-public materials to the Commission, the 
submitter shall concomitantly provide the following: 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 in accordance with Sec.  3011.201, a redacted (public) 
version of the non-public materials in accordance with Sec.  3011.202, 
and an unredacted (sealed) version of the non-public materials in 
accordance with Sec.  3011.203.
    (b) Before submitting non-public materials to the Commission, if the 
submitter has reason to believe that any person other than the submitter 
has a proprietary interest in the information contained within the non-
public materials, the submitter shall inform each affected person of the 
nature and scope of the submission to the Commission, including the 
pertinent docket designation(s) (to the extent practicable) and that the 
affected person may address any confidentiality concerns directly with 
the Commission.

[83 FR 31281, July 3, 2018, as amended at 85 FR 9641, Feb. 19, 2020]



Sec.  3011.201  Application for non-public treatment.

    (a) Burden of persuasion. An application for non-public treatment 
shall fulfill the burden of persuasion that the materials designated as 
non-public should be withheld from the public.
    (b) Contents of application. An application for non-public treatment 
shall include a specific and detailed statement setting forth the 
information specified in paragraphs (b)(1) through (8) of this section:
    (1) The rationale for claiming that the materials are non-public, 
including the specific statutory provision(s) supporting the claim, and 
an explanation justifying application of the provision(s) to the 
materials.
    (2) A statement of whether the submitter, any person other than the 
submitter, or both have a proprietary interest in the information 
contained within the non-public materials, and the identification(s) 
specified in paragraphs (b)(2)(i) through (iii) of this section 
(whichever is applicable). For purposes of this paragraph, 
identification means the name, phone number, and email address of an 
individual.
    (i) If the submitter has a proprietary interest in the information 
contained within the materials, identification of an individual 
designated by the submitter to accept actual notice of a motion related 
to the non-public materials or notice of the pendency of a subpoena or 
order requiring production of the materials.

[[Page 427]]

    (ii) If any person other than the submitter has a proprietary 
interest in the information contained within the materials, 
identification of each person who is known to have a proprietary 
interest in the information. If such an identification is sensitive or 
impracticable, an explanation shall be provided along with the 
identification of an individual designated by the submitter to provide 
notice to each affected person.
    (iii) If both the submitter and any person other than the submitter 
have a proprietary interest in the information contained within the non-
public materials, identification in accordance with both paragraphs 
(b)(2)(i) and (ii) of this section shall be provided. The submitter may 
designate the same individual to fulfill the requirements of paragraphs 
(b)(2)(i) and (ii) of this section.
    (3) A description of the information contained within the materials 
claimed to be non-public in a manner that, without revealing the 
information at issue, would allow the Commission to thoroughly evaluate 
the basis for the claim that the information contained within the 
materials are non-public.
    (4) Particular identification of the nature and extent of the harm 
alleged and the likelihood of each harm alleged to result from 
disclosure.
    (5) At least one specific hypothetical, illustrative example of each 
alleged harm.
    (6) The extent of the protection from public disclosure alleged to 
be necessary.
    (7) The length of time for which non-public treatment is alleged to 
be necessary with justification thereof.
    (8) Any other relevant factors or reasons to support the 
application.
    (c) Incorporation by reference. If the material designated as non-
public has been previously claimed to be non-public material by a prior 
application for non-public treatment, the submitter may incorporate by 
reference the prior application. Any application that incorporates by 
reference a prior application that is accessible through the 
Commission's website (http://www.prc.gov) shall state the date, docket 
number, and the name of the filer of the prior application. In all other 
circumstances, the application that incorporates by reference a prior 
application shall attach the prior application.



Sec.  3011.202  Redacted version of the non-public materials.

    (a) Except as allowed under paragraph (b) of this section, the 
submitter shall use the graphical redaction (blackout) method to redact 
non-public information from the materials. The submitter shall blackout 
only the information that is claimed to be non-public.
    (b) The submitter shall justify using any other redaction method. 
The application for non-public treatment shall state with particularity 
the competitive harm or practical difficulty alleged to result from 
using the blackout method. The submitter shall specifically identify any 
alterations made to the unredacted version, including the location and 
number of lines or pages removed.
    (c) If electronic, the redacted version shall be filed in a 
searchable format, unless the submitter certifies that doing so would be 
impracticable.



Sec.  3011.203  Unredacted version of the non-public materials.

    (a) Each page or portion of the unredacted version of the materials 
for which non-public treatment is sought shall be marked in a manner 
reasonably calculated to alert custodians to the confidential nature of 
the materials.
    (b) The Filing Online method that results in posting a document that 
is available to the public, which is accessible through the Commission's 
website (http://www.prc.gov) described under part 3010, subpart B of 
this chapter may not be used to submit the unredacted version of non-
public materials.
    (c) The filing of the unredacted version of the non-public materials 
shall be made in accordance with the following requirements.
    (1) Except if using an alternative system approved by the Commission 
under paragraph (c)(2) of this section, the unredacted version of the 
non-public materials shall be filed in a sealed envelope clearly marked 
``Confidential. Do Not Post on Web'' to the Office of Secretary and 
Administration, Postal

[[Page 428]]

Regulatory Commission, 901 New York Avenue NW, Suite 200, Washington, DC 
20268-0001. The unredacted version of the non-public materials may not 
be password protected. Two copies of the unredacted version of a non-
public document shall be filed using an electronic format such as 
compact discs (CDs), or digital video discs or digital versatile discs 
(DVDs) that shall be clearly marked ``Confidential. Do Not Post on 
Web.'' If making an electronic unredacted version of a non-public 
document is impracticable, two hard copies (paper) versions of the non-
public document may be filed.
    (2) The Secretary of the Commission has authority to approve the use 
of a secure alternative system to file non-public materials. The 
Secretary may set forth any minimum requirements associated with using 
an alternative system. If a filer using the alternative system fails to 
comply with any of the Secretary's requirements, the Secretary has 
discretion to revoke the filer's eligibility to use the alternative 
system or impose requirements specific to the filer as necessary to 
ensure secure transmission of non-public materials.
    (d) The unredacted version of a spreadsheet shall display the 
formulas used and their links to related spreadsheets. The unredacted 
version of 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.

[83 FR 31281, July 3, 2018, as amended at 85 FR 9641, Feb. 19, 2020]



Sec.  3011.204  Protections for any person other than the submitter
with a proprietary interest.

    Any person other than the submitter with a proprietary interest in 
materials that have been or will be submitted to the Commission may 
address any confidentiality concerns directly with the Commission by 
seeking non-public treatment in accordance with the requirements of this 
subpart, responding to a motion for access to non-public materials in 
accordance with the requirements of subpart C of this part, or 
responding to a motion for disclosure of non-public materials in 
accordance with the requirements of subpart D of this part.



Sec.  3011.205  Non-public materials inadvertently submitted publicly.

    (a) Any filer or person with a proprietary interest that discovers 
the inclusion of materials that could have been subject to a claim for 
non-public treatment are contained within a public filing made in 
accordance with subpart B to part 3010 of this chapter shall telephone 
Dockets personnel immediately to request that the non-public materials 
be removed from the publicly available materials. Upon receipt of that 
telephone request, Dockets personnel will remove from the publicly 
available materials those materials for which non-public treatment are 
being requested until the end of the next business day in order to 
provide the filer or person with a proprietary interest an opportunity 
to file an application for non-public treatment and the non-public 
materials in accordance with the requirements of this subpart. If any 
filer makes repeated use of this rule, the Secretary has discretion to 
impose additional requirements on this filer as necessary to ensure 
secure filing of non-public materials.
    (b) Any submitter or person with a proprietary interest that 
discovers the inclusion of materials that could have been subject to a 
claim for non-public treatment are contained within a publicly available 
submission made to the Commission in circumstances other than through a 
public filing made in accordance with subpart B to part 3010 of this 
chapter shall telephone the Commission personnel to whom the submission 
was directed immediately to request that the non-public materials be 
removed from the publicly available materials. Upon receipt of that 
telephone request, the Commission personnel will remove from the 
publicly available materials those materials for which non-public 
treatment are being requested until the end of the next business day in 
order to provide the submitter or person with a proprietary interest an 
opportunity to submit an application for non-public treatment and the 
non-public materials in accordance with the requirements of this 
subpart. If any submitter

[[Page 429]]

makes repeated use of this rule, the Secretary has discretion to impose 
additional requirements on this submitter as necessary to ensure secure 
submission of non-public materials.
    (c) An application for non-public treatment made under paragraph (a) 
or (b) of this section shall also clearly indicate if any special relief 
is sought. Examples of special relief include a request that any person 
not granted access to the materials under Sec.  3011.300 or Sec.  
3011.301 perform any or all of the following actions:
    (1) Immediately destroy or return all versions of the materials that 
are claimed to have been inadvertently submitted publicly;
    (2) Refrain from disclosing or using the materials, and the 
information contained therein, that are claimed to be non-public; and
    (3) Take reasonable steps to retrieve any materials, and the 
information contained therein, that are claimed to be non-public and 
were disclosed to any person not granted access to the materials under 
Sec.  3011.300 or Sec.  3011.301 prior to the submission of application 
for non-public treatment.

[83 FR 31281, July 3, 2018, as amended at 85 FR 9641, Feb. 19, 2020]



            Subpart C_Seeking Access to Non-Public Materials



Sec.  3011.300  Eligibility for access to non-public materials.

    (a) The following persons may access non-public materials without an 
order issued pursuant to Sec.  3011.301(e):
    (1) Members of the Commission;
    (2) Commission employees, including Public Representatives, carrying 
out their official responsibilities;
    (3) Non-employees who have executed appropriate non-disclosure 
agreements (such as contractors, attorneys, or subject matter experts), 
assisting the Commission in carrying out its duties;
    (4) Reviewing courts and their staffs; and
    (5) Court reporters, stenographers, or persons operating audio or 
video recording equipment for such court reporters or stenographers at 
hearings or depositions.
    (b) No person involved in competitive decision-making for any 
individual or entity that might gain competitive advantage from using 
non-public materials shall be granted access to non-public materials. 
Involved in competitive decision-making includes consulting on marketing 
or advertising strategies, pricing, product research and development, 
product design, or the competitive structuring and composition of bids, 
offers or proposals. It does not include rendering legal advice or 
performing other services that are not directly in furtherance of 
activities in competition with an individual or entity having a 
proprietary interest in the protected material.
    (c) Any person not described in paragraph (a) or (b) of this section 
may request access to non-public materials as described in Sec.  
3011.301, for the purpose of aiding participation in a pending 
Commission proceeding (including compliance proceedings) or aiding the 
initiation of a proceeding before the Commission.

[83 FR 31281, July 3, 2018, as amended at 85 FR 9642, Feb. 19, 2020; 86 
FR 48503, Aug. 31, 2021]



Sec.  3011.301  Motion for access to non-public materials.

    (a) Filing requirements. A request for access to non-public 
materials shall be made by filing a motion with the Commission. Any part 
of the motion revealing non- public information shall be filed in 
accordance with subpart B of this part. The motion shall be filed in the 
docket in which the materials were filed or in the docket in which the 
materials will be used; in all other circumstances, the motion shall be 
filed in the G docket for the applicable fiscal year.
    (b) Content requirements. The motion shall:
    (1) Identify the particular non-public materials to which the movant 
seeks access;
    (2) Include a detailed statement justifying the request for access:
    (i) If access is sought to aid participation in any pending 
Commission proceeding, the motion shall identify all proceedings 
(including compliance proceedings) in which the movant proposes to use 
the materials and how those materials are relevant to those proceedings, 
or

[[Page 430]]

    (ii) If access is sought to aid initiation of a proceeding before 
the Commission, the motion shall describe the subject of the proposed 
proceeding, how the materials sought are relevant to that proposed 
proceeding, and when the movant anticipates initiating the proposed 
proceeding;
    (3) List all relevant affiliations, including employment or other 
relationship (including agent, consultant or contractor) with the 
movant, and whether the movant is affiliated with the delivery services, 
communications or mailing industries;
    (4) Specify if actual notice of the motion has been provided to each 
person identified in the application pursuant to Sec.  3011.201(b)(2). 
If the motion states that actual notice has been provided, the motion 
shall identify the individual(s) to whom actual notice was provided, the 
date(s) and approximate time(s) of actual notice, the method(s) of 
actual notice (by telephone conversation, face-to-face conversation, or 
an exchange of telephone or email messages), and whether the movant is 
authorized to represent that the motion (in whole or in part) has been 
resolved or is contested by the submitter or any other affected person;
    (5) Attach a description of protective conditions completed and 
signed by the movant's attorney or non-attorney representative, who may 
use and modify the template Protective Conditions Statement in Appendix 
A to this subpart; and
    (6) Attach a certification to comply with protective conditions 
executed by each person (and any individual working on behalf of that 
person) seeking access, who may use and modify the template 
Certification to Comply with Protective Conditions in Appendix A to this 
subpart.
    (c) Response. If actual notice of the motion was provided in advance 
of the filing to each person identified pursuant to Sec.  3011.201(b)(2) 
by telephone conversation, face-to-face conversation, or an exchange of 
telephone or email messages, a response to the motion is due within 
three business days of the filing of the motion, unless the Commission 
otherwise provides. In all other circumstances, a response to the motion 
is due within seven calendar days of filing the motion, unless the 
Commission otherwise provides.
    (d) Reply. No reply to a response shall be filed, unless the 
Commission otherwise provides.
    (e) Commission ruling. The Commission may enter an order at any time 
after receiving a motion if the movant states that actual notice has 
been given to each person identified pursuant to Sec.  3011.201(b)(2) 
and that the movant is authorized to represent that the motion is 
uncontested. In all other circumstances, the Commission will enter an 
order determining if access will be granted after the response period 
described in paragraph (c) of this section has expired. If no opposition 
to the motion has been filed by the submitter or any person other than 
the submitter with a proprietary interest before the expiration of the 
response period described in paragraph (c) of this section, the 
Commission may issue an order granting access, subject to the agreed 
protective conditions. In determining whether to grant access to non-
public materials, the Commission shall balance the interests of the 
parties consistent with the analysis undertaken by a Federal court when 
applying the protective conditions appearing in Federal Rule of Civil 
Procedure 26(c). If access is granted, access shall commence following 
the issuance of the appropriate order setting forth all protective 
conditions.

[83 FR 31281, July 3, 2018, as amended at 85 FR 9642, Feb. 19, 2020]



Sec.  3011.302  Non-dissemination, use, and care of non-public materials.

    (a) No person who has been granted access to non-public materials in 
accordance with Sec.  3011.300 or Sec.  3011.301 may disseminate the 
materials or the information contained therein, in whole or in part, to 
any person not allowed access pursuant to Sec.  3011.300 or Sec.  
3011.301.
    (b) Persons with access to non-public materials under Sec.  3011.300 
or Sec.  3011.301 shall use non-public materials only for the purposes 
for which the non-public materials are supplied.
    (c) Persons with access to non-public materials under Sec.  3011.300 
or Sec.  3011.301 shall protect the non-public materials from any person 
not granted access

[[Page 431]]

under Sec.  3011.300 or Sec.  3011.301 by using the same degree of care, 
but no less than a reasonable degree of care, to prevent the 
unauthorized disclosure of these materials as those persons, in the 
ordinary course of business, would be expected to use to protect their 
own proprietary material or trade secrets and other internal, 
confidential, commercially sensitive, and privileged information.

[85 FR 9642, Feb. 19, 2020]



Sec.  3011.303  Sanctions for violating protective conditions.

    (a) If a person who has been granted access to non-public materials 
under Sec.  3011.301 violates the terms of the order granting access, 
the Commission may impose sanctions on the person who violated the 
order, the persons or entities on whose behalf the person was acting, or 
both. The sanctions may include any or all of the following:
    (1) Dismissing the proceeding in whole or in part;
    (2) Ruling by default against the person who violated the order or 
the persons or entities on whose behalf the person was acting;
    (3) Revoking access to non-public materials;
    (4) Restricting access to non-public materials in the future; or
    (5) Such other sanctions, as deemed appropriate by the Commission.
    (b) This rule does not prevent any person, including the Postal 
Service, whose interests are damaged by the violation of an order 
granting access subject to protective conditions, from pursuing any 
remedies available under the law against the person who violated the 
order, the persons or entities on whose behalf the person was acting, or 
both.

[83 FR 31281, July 3, 2018, as amended at 85 FR 9642, Feb. 19, 2020]



Sec.  3011.304  Termination and amendment of access to non-public
materials.

    (a) Termination of access. (1) Except as provided in paragraph (b) 
of this section, access to non-public materials granted under Sec.  
3011.301 terminates either when the Commission issues the final order or 
report concluding the proceeding(s) in which the participant who filed 
the motion seeking access represented that the non-public materials 
would be used, or when the person granted access withdraws or is 
otherwise no longer involved in the proceeding(s), whichever occurs 
first. For purposes of this paragraph, an order or report is not 
considered final until after the possibility of judicial review expires 
(including the completion of any Commission response to judicial review, 
if applicable).
    (2) Upon termination of access, all non-public materials, and any 
duplicates, in the possession of each person (and any individual working 
on behalf of that person) granted access shall be destroyed or returned 
to the Commission. The participant who filed the motion seeking access 
shall file with the Commission a notice of termination of access and 
attach a certification of compliance with protective conditions executed 
by each person (and any individual working on behalf of that person) 
granted access to the non-public materials. The template Certification 
of Compliance with Protective Conditions and Termination of Access in 
Appendix A to this subpart may be used and modified to comply with this 
requirement.
    (b) Amendment of access. Any person may file a motion seeking to 
amend any protective conditions related to access of non-public 
materials, including extending the timeframe for which access is granted 
or expanding the persons to whom access is to be granted, in accordance 
with Sec.  3011.301.

[83 FR 31281, July 3, 2018, as amended at 85 FR 9643, Feb. 19, 2020]



Sec.  3011.305  Producing non-public materials in non-Commission 
proceedings.

    (a) If a court or other administrative agency issues a subpoena or 
orders production of non-public materials that a person obtained under 
protective conditions ordered by the Commission, the target of the 
subpoena or order shall, within two days of receipt of the subpoena or 
order, notify each person identified pursuant to Sec.  3011.201(b)(2) of 
the pendency of the subpoena or order to allow time to object to that 
production or to seek a protective order or other relief.

[[Page 432]]

    (b) Any person that has obtained non-public materials under 
protective conditions ordered by the Commission and seeks to disclose 
the non-public materials in a court or other administrative proceeding 
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) Unless overridden by the reviewing court or other administrative 
agency, protective conditions ordered by the Commission will remain in 
effect.

[83 FR 31281, July 3, 2018, as amended at 85 FR 9643, Feb. 19, 2020]



  Sec. Appendix A to Subpart C of Part 3011--Template Forms Protective 
                          Conditions Statement

____________ (name of submitter of non-public materials) requests 
confidential treatment of non-public materials identified as ________ 
(non-confidential description of non-public materials) (hereinafter 
``these materials'') in Commission Docket No(s).________ (designation of 
docket(s) in which these materials were filed).

____________ (name of participant filing motion) (hereinafter ``the 
movant'') requests access to these materials related to ________ 
(designation of docket(s) or description of proposed proceeding(s) in 
which these materials are to be used) (hereinafter ``this matter'').
    The movant has provided to each person seeking access to these 
materials:
    [cir] This Protective Conditions Statement;
    [cir] the Certification to Comply with Protective Conditions;
    [cir] the Certification of Compliance with Protective Conditions and 
Termination of Access; and
    [cir] the Commission's rules applicable to access to non-public 
materials filed in Commission proceedings (subpart C of part 3011 of the 
U.S. Code of Federal Regulations).
    Each person (and any individual working on behalf of that person) 
seeking access to these materials has executed a Certification to Comply 
with Protective Conditions by signing in ink or by typing/s/before his 
or her name in the signature block. The movant attaches the Protective 
Conditions Statement and the executed Certification(s) to Comply with 
Protective Conditions to the motion for access filed with the 
Commission.
    The movant and each person seeking access to these materials agree 
to comply with the following protective conditions:
    In accordance with 39 CFR 3011.303, the Commission may impose 
sanctions on any person who violates these protective conditions, the 
persons or entities on whose behalf the person was acting, or both.
    2. In accordance with 39 CFR 3011.300(b), no person involved in 
competitive decision-making for any individual or entity that might gain 
competitive advantage from using these materials shall be granted access 
to these materials. Involved in competitive decision-making includes 
consulting on marketing or advertising strategies, pricing, product 
research and development, product design, or the competitive structuring 
and composition of bids, offers or proposals. It does not include 
rendering legal advice or performing other services that are not 
directly in furtherance of activities in competition with an individual 
or entity having a proprietary interest in the protected material.
    3. In accordance with 39 CFR 3011.302(a), a person granted access to 
these materials may not disseminate these materials in whole or in part 
to any person not allowed access pursuant to 39 CFR 3011.300(a) 
(Commission and court personnel) or 3011.301 (other persons granted 
access by Commission order) except in compliance with:
    a. Specific Commission order,
    b. Subpart B of 39 CFR 3011 (procedure for filing these materials in 
Commission proceedings), or
    c. 39 CFR 3011.305 (production of these materials in a court or 
other administrative proceeding).
    4. In accordance with 39 CFR 3011.302(b) and (c), all persons 
granted access to these materials:
    a. Must use these materials only related to this matter; and
    b. must protect these materials from any person not authorized to 
obtain access under 39 CFR 3011.300 or 3011.301 by using the same degree 
of care, but no less than a reasonable degree of care, to prevent the 
unauthorized disclosure of these materials as those persons, in the 
ordinary course of business, would be expected to use to protect their 
own proprietary material or trade secrets and other internal, 
confidential, commercially sensitive, and privileged information.
    5. The duties of each person granted access to these materials apply 
to all:
    a. Disclosures or duplications of these materials in writing, 
orally, electronically, or otherwise, by any means, format, or medium;
    b. Excerpts from, parts of, or the entirety of these materials;
    c. Written materials that quote or contain these materials; and
    d. Revised, amended, or supplemental versions of these materials.
    6. All copies of these materials will be clearly marked as 
``Confidential'' and bear the name of the person granted access.
    7. Immediately after access has terminated pursuant to 39 CFR 
3011.304(a)(1), each person

[[Page 433]]

(and any individual working on behalf of that person) who has obtained a 
copy of these materials must execute the Certification of Compliance 
with Protective Conditions and Termination of Access. In compliance with 
39 CFR 3011.304(a)(2), the movant will attach the executed 
Certification(s) of Compliance with Protective Conditions and 
Termination of Access to the notice of termination of access filed with 
the Commission.
    8. Each person granted access to these materials consents to these 
or such other conditions as the Commission may approve.
Respectfully submitted,

(signature of representative)

/s/_____________________________________________________________________

(print name of representative)

(address line 1 of representative)

(address line 2 of representative)

(telephone number of representative)

(e-mail address of representative)

(choose the appropriate response)

Attorney/Non-Attorney Representative for

(name of the movant)

You may delete the instructional text to complete this form. This form 
may be filed as an attachment to the motion for access to non-public 
materials under 39 CFR 3011.301(b)(5).

           Certification To Comply With Protective Conditions

____________ (name of submitter of non-public materials) requests 
confidential treatment of non-public materials identified as ________ 
(non-confidential description of non-public materials) (hereinafter 
``these materials'') filed in Commission Docket No(s). ________ 
(designation of docket(s) in which these materials were filed).

____________ (name of participant filing motion) requests that the 
Commission grant me access to these materials to use related to ________ 
(designation of docket(s) or description of proposed proceeding(s) in 
which these materials are to be used) (hereinafter ``this matter'').
    I certify that:
    [cir] I have read and understand the Protective Conditions Statement 
and this Certification to Comply with Protective Conditions;
    [cir] I am eligible to receive access to these materials because I 
am not involved in competitive decision-making for any individual or 
entity that might gain competitive advantage from using these materials; 
and
    [cir] I will comply with all protective conditions established by 
the Commission.

(signature of individual receiving access)

/s/_____________________________________________________________________

(print name of individual receiving access)

(title of individual receiving access)

(employer of individual receiving access)

(name of the participant filing the motion)

(date)

You may delete the instructional text to complete this form. This form 
may be filed as an attachment to the motion for access to non-public 
materials under 39 CFR 3011.301(b)(6).

 Certification of Compliance with Protective Conditions and Termination 
                                of Access

____________ (name of submitter of non-public materials) requests 
confidential treatment of non-public materials identified as ________ 
(non-confidential description of non-public materials) (hereinafter 
``these materials'') filed in Commission Docket No(s). ________ 
(designation of docket(s) in which these materials were filed).
    The Commission granted the request by________ (name of participant 
filing notice) to grant me access to these materials to use related to 
________ (designation of docket(s) or description of proposed 
proceeding(s) in which these materials are to be used) (hereinafter 
``this matter'').
    I certify that:
    [cir] I accessed, maintained, and used these materials in accordance 
with the protective conditions established by the Commission;
    [cir] Effective ________ (date), my access to these materials was 
terminated; and
    [cir] Effective ________ (date), I no longer have any of these 
materials or any duplicates.

(signature of individual granted access)

/s/_____________________________________________________________________

(print name of individual granted access)

(title of individual granted access)

(employer of individual granted access)

(name of participant filing notice)

(date)

You may delete the instructional text to complete this form. This form 
should be filed as an attachment to the notice of termination of access 
to non-public materials under 39 CFR 3011.304(a)(2).

[85 FR 9643, Feb. 19, 2020]



       Subpart D_Seeking Public Disclosure of Non-Public Materials



Sec.  3011.400  Motion for disclosure of non-public materials.

    (a) Application of this section. This section applies to non-public 
materials during the initial duration of non-public status, up to ten 
years, and any non-public materials for which the Commission enters an 
order extending

[[Page 434]]

the duration of that status under Sec.  3011.401(a).
    (b) Motion for disclosure of non-public materials. Any person may 
file a motion with the Commission requesting that non-public materials 
be publicly disclosed. Any part of the motion revealing non-public 
information shall be filed in accordance with subpart B of this part. 
The motion shall justify why the non-public materials should be made 
public and specifically address any pertinent rationale(s) provided in 
the application for non-public treatment. The motion shall specify 
whether actual notice of the motion has been provided to each person 
identified in the application pursuant to Sec.  3011.201(b)(2). If the 
motion states that actual notice has been provided, the motion shall 
identify the individual(s) to whom actual notice was provided, the 
date(s) and approximate time(s) of actual notice, the method(s) of 
actual notice (by telephone conversation, face-to-face conversation, or 
an exchange of telephone or email messages), and whether the movant is 
authorized to represent that the motion (in whole or in part) has been 
resolved or is contested by the submitter or any other affected person. 
The motion shall be filed in the docket in which the materials were 
filed or in the docket in which the materials will be used; in all other 
circumstances, the motion shall be filed in the G docket for the 
applicable fiscal year.
    (c) Response. If actual notice of the motion was provided in advance 
of the filing to each person identified pursuant to Sec.  3011.201(b)(2) 
by telephone conversation, face-to-face conversation, or an exchange of 
telephone or email messages, a response to the motion is due within 
three business days of the filing of the motion, unless the Commission 
otherwise provides. In all other circumstances, a response to the motion 
is due within seven calendar days of filing the motion, unless the 
Commission otherwise provides.
    (d) Reply. No reply to a response shall be filed, unless the 
Commission otherwise provides.
    (e) Non-public treatment pending resolution. Pending the 
Commission's resolution of the motion, information designated as non-
public will be accorded non-public treatment.
    (f) Commission ruling. The Commission may enter an order at any time 
after receiving a motion if the movant states that actual notice has 
been given to each person identified pursuant to Sec.  3011.201(b)(2) 
and that the movant is authorized to represent that the motion is 
uncontested. In all other circumstances, the Commission will enter an 
order determining what non-public treatment, if any, will be accorded to 
the materials after the response period described in paragraph (c) of 
this section has expired. The determination of the Commission shall 
follow the applicable standard described in Sec.  3011.104.

[83 FR 31281, July 3, 2018, as amended at 85 FR 9644, Feb. 19, 2020]



Sec.  3011.401  Materials for which non-public treatment has expired.

    (a) Expiration of non-public treatment. Ten years after the date of 
submission to the Commission, non-public materials shall lose non-public 
status unless otherwise provided by the Commission.
    (b) Request for Disclosure of Materials for Which Non-Public 
Treatment has Expired. Any person may request that materials for which 
non-public treatment has expired under paragraph (a) of this section be 
publicly disclosed. Any part of the request revealing non-public 
information shall be filed in accordance with subpart B of this part. 
The request shall identify the materials requested and date(s) that 
materials were originally submitted under seal. The template Request for 
Materials for Which Non-public Treatment Has Expired in appendix A to 
this subpart may be used and modified to comply with this requirement. 
The request shall be filed in the docket in which the materials were 
filed or in the docket in which the materials will be used; in all other 
circumstances, the request shall be filed in the G docket for the 
applicable fiscal year. All documents are treated in accordance with the 
Commission's record retention schedule, which may reduce the 
availability of some non-public information.
    (c) Response. A response to the request is due within seven calendar 
days of the filing of the request, unless the Commission otherwise 
provides. Any

[[Page 435]]

response opposing the request shall seek an extension of non-public 
status by including an application for non-public treatment compliant 
with Sec.  3011.201. This extension application shall also include 
specific facts in support of any assertion that commercial injury is 
likely to occur if the information contained in the materials is 
publicly disclosed despite the passage of ten years or the timeframe 
established by Commission order.
    (d) Reply. Within 7 calendar days of the filing of a response, any 
person (including the requestor) may file a reply, unless the Commission 
otherwise provides.
    (e) Non-public treatment pending resolution. Pending the resolution 
of the request by the Commission, information designated as non-public 
will be accorded non-public treatment.
    (f) Ruling. The Commission may grant the request at any time after 
the response period described in paragraph (c) of this section has 
expired. The Commission may deny the request and enter an order 
extending the duration of non-public status at any time after the reply 
period described in paragraph (d) of this section has expired. The 
determination of the Commission shall follow the applicable standard 
described in Sec.  3011.104.

[83 FR 31281, July 3, 2018, as amended at 85 FR 9644, Feb. 19, 2020; 88 
FR 37474, June 8, 2023]



        Sec. Appendix A to Subpart D of Part 3011--Template Forms

    Before the POSTAL REGULATORY COMMISSION WASHINGTON, DC 20268-0001

(Caption)_______________________________________________________________
Docket No.______________________________________________________________

________________________________________________________________________

    REQUEST FOR MATERIALS FOR WHICH NON-PUBLIC TREATMENT HAS EXPIRED

________ , 20____ (date)
    On ________ (date non-public materials were initially submitted), 
non-public treatment was requested for the materials identified as 
________ (non-confidential description of non-public materials) 
(hereinafter ``these materials''). Because the non-public treatment of 
these materials has expired, I request that these materials be disclosed 
to the public.

Respectfully submitted,

(signature of representative)

/s/_____________________________________________________________________

(print name of representative)

(address line 1 of representative)

(address line 2 of representative)

(telephone number of representative)

(e-mail address of representative)

(choose the appropriate response)
Attorney/Non-Attorney Representative for

(name of the requestor)

    You may delete the instructional text to complete this form and file 
a request under 39 CFR 3011.401(b).

[85 FR 9644, Feb. 19, 2020]



PART 3012_EX PARTE COMMUNICATIONS--Table of Contents



Sec.
3012.1 Applicability.
3012.2 Definition of ex parte communications.
3012.3 Definition of a matter before the Commission.
3012.4 Definitions of persons subject to ex parte communication rules.
3012.5 Prohibitions.
3012.6 Required action upon ex parte communication.
3012.7 Penalty for violation of ex parte communication rules.

    Authority: 39 U.S.C. 404(d)(5); 503; 504; 3661(c); 3662.

    Source: 81 FR 42541, June 30, 2016, unless otherwise noted. 
Redesignated at 85 FR 9615, Feb. 19, 2020.



Sec.  3012.1  Applicability.

    (a) The rules in this section are applicable to all Commission 
proceedings except for the instances identified in paragraphs (b) 
through (d) of this section.
    (b) The rules in this section are not applicable to public inquiry 
(PI) proceedings, undertaken to gather information and which are not 
intended to result in a binding Commission decision.
    (c) The rules in this section are not applicable to international 
mail (IM) proceedings undertaken pursuant to part 3025 of this chapter.
    (d) The rules in this section are not applicable to specifically 
identified proceedings upon written directive from the Commission.

[81 FR 42541, June 30, 2016, as amended at 85 FR 9645, Feb. 19, 2020]

[[Page 436]]



Sec.  3012.2  Definition of ex parte communications.

    (a) Subject to the exceptions specified in paragraph (b) of this 
section, ex parte communications include all communications, oral or 
written (including electronic), between Commission decision-making 
personnel, and the Postal Service or public stakeholders regarding 
matters before the Commission.
    (b) Ex parte communications do not include:
    (1) Documents filed using the Commission's docketing system;
    (2) Communications during the course of Commission meetings or 
hearings, or other widely publicized events where the Commission 
provides advance public notice of the event indicating the matter to be 
discussed, the event is open to all persons participating in the matter 
before the Commission, and a summary of the event is provided for the 
record;
    (3) Communications during the course of off-the-record technical 
conferences associated with a matter before the Commission, or the pre-
filing conference for nature of service cases required by Sec.  3020.111 
of this chapter, where advance public notice of the event is provided 
indicating the matter to be discussed, and the event is open to all 
persons participating in the matter before the Commission;
    (4) Questions concerning Commission procedures, the status of a 
matter before the Commission, or the procedural schedule of a pending 
matter, where these issues are not contested matters before the 
Commission; and
    (5) Communications not material to the matter before the Commission.

[81 FR 42541, June 30, 2016, as amended at 85 FR 9645, Feb. 19, 2020]



Sec.  3012.3  Definition of a matter before the Commission.

    (a) A matter is before the Commission at such time as the Commission 
may designate, but in no event later than the earlier of the filing of a 
request to initiate a proceeding or the Commission noticing a 
proceeding.
    (b) A matter is also before the Commission at such time as the 
person responsible for the communication has knowledge that a request to 
initiate a proceeding is expected to be filed.
    (c) Paragraph (b) of this section does not apply to periodic reviews 
or reports issued by the Commission, or the 10-year review pursuant to 
39 U.S.C. 3622(d)(3).
    (d) The following explanations apply:
    (1) A matter is no longer before the Commission upon the issuance of 
the final order or decision in the docketed matter;
    (2) A matter is again before the Commission upon the filing of a 
request for reconsideration. The matter remains before the Commission 
until resolution of the matter under reconsideration;
    (3) A matter is again before the Commission upon the remand of a 
Commission's final decision or order by an appellate court. The matter 
remains before the Commission until resolution of the matter under 
remand; and
    (4) The mere potential that a request may be filed does not place a 
matter before the Commission. An affirmative action announcing, or 
actively preparing, an actual request with the intent to file within a 
reasonable period of time must be present.



Sec.  3012.4  Definitions of persons subject to ex parte communication
rules.

    (a) Commission decision-making personnel include:
    (1) The Commissioners and their staffs;
    (2) The General Counsel and staff;
    (3) The Director of the Office of Accountability and Compliance and 
staff;
    (4) Contractors, consultants, and others hired by the Commission to 
assist with the Commission's analysis and decision; and
    (5) Any other employee who may reasonably be expected to be involved 
in the decisional process.
    (b) The Postal Service includes all Postal Service employees, 
contractors, consultants, and others with an interest in a matter before 
the Commission. Any interaction between the Postal Service and 
Commission decision-making personnel concerning a matter before the 
Commission expresses an interest in the matter before the Commission.
    (c) Public stakeholders include all other persons not previously 
described, with an interest in a matter before the

[[Page 437]]

Commission. This includes the Commission non-decision-making personnel 
identified in paragraph (d) of this section. Any interaction between a 
public stakeholder and Commission decision-making personnel concerning a 
matter before the Commission expresses an interest in the matter before 
the Commission.
    (d) Commission non-decision-making personnel include:
    (1) All Commission personnel other than decision-making personnel;
    (2) Commission personnel not participating in the decisional process 
owing to the prohibitions of Sec.  3010.144 of this chapter regarding no 
participation by investigative or prosecuting officers;
    (3) The Public Representative and other Commission personnel 
assigned to represent the interests of the general public pursuant to 39 
U.S.C. 505 in the specific case or controversy at issue (regardless of 
normally assigned duties); and
    (4) Contractors, consultants, and others hired by the Commission to 
provide an independent analysis of issues before the Commission (and 
Commission employees assigned thereto).

[81 FR 42541, June 30, 2016, as amended at 85 FR 9645, Feb. 19, 2020]



Sec.  3012.5  Prohibitions.

    (a) Ex parte communications between Commission decision-making 
personnel, and the Postal Service or public stakeholders is prohibited.
    (b) Commission decision-making personnel shall not rely upon any 
information obtained through ex parte communications unless the 
communications are made part of the record of the proceeding, where an 
opportunity for rebuttal has been provided, and reliance on the 
information will not cause undue delay or prejudice to any party.
    (c) Paragraph (a) of this section does not constitute authority to 
withhold information from Congress.



Sec.  3012.6  Required action upon ex parte communications.

    (a) 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 
the communication will not be considered, 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.
    (b) Commission decision-making personnel who receive, or who make or 
knowingly cause to be made, ex parte communications prohibited by this 
part shall promptly place, or cause to be placed, on the public record 
of the proceeding:
    (1) All such written communications;
    (2) Memoranda stating the substance of all such oral communications; 
and
    (3) All written responses, and memoranda stating the substance of 
all oral responses, to the materials described in paragraphs (b)(1) and 
(2) of this section.
    (c) 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) 
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. In lieu of actually receiving rebuttal 
material, the Commission may in its discretion direct that the alleged 
factual assertion and the proposed rebuttal be disregarded in arriving 
at a decision.



Sec.  3012.7  Penalty for violation of ex parte communication rules.

    (a) The penalties for violation of ex parte communication rules 
specified in this section are applicable only to:
    (1) Nature of postal service proceedings conducted pursuant to 39 
U.S.C. 3661(c);
    (2) Appeal of Postal Service decisions to close or consolidate any 
post office conducted pursuant to 39 U.S.C. 404(d)(5); and
    (3) Rate or service complaints conducted pursuant to 39 U.S.C. 3662.
    (b) Upon notice of a communication knowingly made or knowingly 
caused to be made by a participant in violation of Sec.  3012.5(a), the 
Commission or presiding officer may, to the extent

[[Page 438]]

consistent with the interests of justice and the policy of the 
underlying statutes, require the participant to show cause why the 
participant's claim or interest in the proceeding should not be 
dismissed, denied, disregarded, or otherwise adversely affected on 
account of such violation.
    (c) 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 Sec.  3012.5(a) sufficient grounds 
for a decision adverse to a party who has knowingly committed such 
violation or knowingly caused such violation to occur.

[81 FR 42541, June 30, 2016, as amended at 85 FR 9645, Feb. 19, 2020]



PART 3013_PROCEDURES FOR COMPELLING PRODUCTION OF INFORMATION BY
THE POSTAL SERVICE--Table of Contents



                            Subpart A_General

Sec.
3013.1 Scope and applicability of other parts of this title.
3013.2 Terms defined for purposes of this part.

                           Subpart B_Subpoenas

3013.11 General rule--subpoenas.
3013.12 Subpoenas issued without receipt of a third-party request.
3013.13 Subpoenas issued in response to a third-party request.
3013.14 Service of subpoenas.
3013.15 Duties in responding to a subpoena.
3013.16 Enforcement of subpoenas.

            Subpart C_Depositions and Written Interrogatories

3013.21 Authority to order depositions and responses to written 
          interrogatories.

Appendix A to Part 3013--Subpoena Form

    Authority: 39 U.S.C. 503; 504; 3651(c); 3652(d).

    Source: 75 FR 22107, Apr. 27, 2010, unless otherwise noted. 
Redesignated at 85 FR 9615, Feb. 19, 2020.



                            Subpart A_General



Sec.  3013.1  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) Subparts A, B, and D to part 3010 of this chapter apply unless 
otherwise stated in this part or otherwise ordered by the Commission.

[75 FR 22107, Apr. 27, 2010, as amended at 85 FR 9645, Feb. 19, 2020]



Sec.  3013.2  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.  3013.11  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

[[Page 439]]

as may be necessary or appropriate to 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 3011 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.  
3013.14.

[75 FR 22107, Apr. 27, 2010, as amended at 85 FR 9645, Feb. 19, 2020]



Sec.  3013.12  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.  3013.11 without 
a request having been made by a third party under Sec.  3013.13.
    (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.  3010.160(a) of this chapter to quash the 
subpoena, to limit the scope of the subpoena, or to condition the 
subpoena as provided in Sec.  3013.11(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.  3010.160(b) of this chapter. Pending the resolution of 
any such motion, the covered person shall secure and maintain the 
requested information.

[75 FR 22107, Apr. 27, 2010, as amended at 85 FR 9645, Feb. 19, 2020]



Sec.  3013.13  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.  3013.11.
    (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.  3010.160 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.  3010.160(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

[[Page 440]]

presiding officer's recommendation shall be served in accordance with 
Sec.  3010.127 of this chapter.
    (5) Following receipt of the materials forwarded by the presiding 
officer, 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 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.  3013.11 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.  3010.160 of this chapter. A copy of the request 
shall be served upon the Postal Service as provided by Sec.  3010.127 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.  3010.160(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

[[Page 441]]

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 with a 
previously issued Commission order or information request.

[75 FR 22107, Apr. 27, 2010, as amended at 85 FR 9645, Feb. 19, 2020]



Sec.  3013.14  Service of subpoenas.

    (a) Manner of service--(1) Existing Postal Service officers and 
employees. In addition to electronic service as provided by Sec.  
3010.127(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.  3010.127(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 paragraph (a)(1) of this section or upon former Postal 
Service officers, employees, agents, or contractors under paragraph 
(a)(3) of this section 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 paragraph (a) of this section must be 
filed with the Secretary within two 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 two 
business days of transmission of a subpoena by the Postal Service to an 
existing Postal Service officer, employee, agent, or contractor pursuant 
to paragraph (a)(1) or (2) of this section, 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 website which specifies the return date of the 
subpoena.

[75 FR 22107, Apr. 27, 2010, as amended at 85 FR 9646, 9660, Feb. 19, 
2020]

[[Page 442]]



Sec.  3013.15  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 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 3011 of this chapter.

[75 FR 22107, Apr. 27, 2010, as amended at 85 FR 9646, Feb. 19, 2020]



Sec.  3013.16  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.  3013.21  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 443]]

                 Appendix A to Part 3013--Subpoena Form
[GRAPHIC] [TIFF OMITTED] TR19FE20.000


[[Page 444]]


[GRAPHIC] [TIFF OMITTED] TR19FE20.001


[[Page 445]]


[GRAPHIC] [TIFF OMITTED] TR19FE20.002


[85 FR 9646, Feb. 19, 2020]

[[Page 446]]



  SUBCHAPTER D_SPECIAL RULES OF PRACTICE FOR SPECIFIC PROCEEDING TYPES





PART 3020_RULES APPLICABLE TO POSTAL SERVICE REQUESTS FOR CHANGES IN 
THE NATURE OF POSTAL SERVICES--Table of Contents



Sec.
3020.101 Applicability.
3020.102 Advisory opinion and special studies.
3020.103 Computation of time.
3020.104 Service by the Postal Service.
3020.105 Motions.
3020.106-3020.109 [Reserved]
3020.110 Procedural schedule.
3020.111 Pre-filing requirements.
3020.112 Filing of formal requests.
3020.113 Contents of formal requests.
3020.114 Filing of prepared direct evidence.
3020.115 Mandatory technical conference.
3020.116 Discovery--in general.
3020.117 Interrogatories.
3020.118 Production of documents.
3020.119 Admissions.
3020.120 Rebuttal testimony.
3020.121 Surrebuttal testimony.
3020.122 Hearings.
3020.123 Initial and reply briefs.

Appendix A to Part 3020--Pro Forma N-Case Procedural Schedule

    Authority: 39 U.S.C. 404(d); 503; 504; 3661.

    Source: 85 FR 9649, Feb. 19, 2020, unless otherwise noted.



Sec.  3020.101  Applicability.

    The rules in this part govern the procedure with regard to proposals 
of the Postal Service pursuant to 39 U.S.C. 3661 requesting from the 
Commission an advisory opinion on changes in the nature of postal 
services that will generally affect service on a nationwide or 
substantially nationwide basis. The Rules of General Applicability in 
part 3010 of this chapter are also applicable to proceedings conducted 
pursuant to this subpart except that Sec. Sec.  3010.160 through 
3010.164 (Motions); Sec.  3010.310 (Discovery--general policy); Sec.  
3010.311 (Interrogatories for purposes of discovery); Sec.  3010.312 
(Requests for production of documents or things for the purpose of 
discovery); Sec.  3010.321 (Hearings); Sec.  3010.325 (Depositions); and 
Sec.  3010.330 (Briefs) of this chapter do not apply in proceedings 
conducted under this part.



Sec.  3020.102  Advisory opinion and special studies.

    (a) Issuance of opinion. In the absence of a determination of good 
cause for extension, the Commission shall issue an advisory opinion in 
proceedings conducted under this subpart not later than 90 days 
following the filing of the Postal Service's request for an advisory 
opinion.
    (b) Special studies. Advisory opinions shall address the specific 
changes proposed by the Postal Service in the nature of postal services. 
If, in any proceeding, alternatives or related issues of significant 
importance arise, the Commission may, in its discretion, undertake an 
evaluation of such alternative or issues by means of special studies, 
public inquiry proceedings, or other appropriate means.



Sec.  3020.103  Computation of time.

    In computing any period of time prescribed or allowed by this 
subpart, the term day means a calendar day unless explicitly specified 
otherwise. The last day of the period so computed is to be included 
unless it is a Saturday, Sunday, or Federal holiday for the Commission, 
in which event the period runs until the end of the next day which is 
neither a Saturday, Sunday, nor Federal holiday.



Sec.  3020.104  Service by the Postal Service.

    By filing its request electronically with the Commission, the Postal 
Service is deemed to have effectively served copies of its formal 
request and its prepared direct evidence upon those persons, including 
the officer of the Commission, who participated in the pre-filing 
conference held under Sec.  3020.111. The Postal Service shall be 
required to serve hard copies of its formal request and prepared direct 
evidence only upon those persons who have notified the Postal Service, 
in writing, during the pre-filing conference(s), that they do not have 
access to the Commission's website.

[[Page 447]]



Sec.  3020.105  Motions.

    (a) In general. (1) An application for an order or ruling not 
otherwise specifically provided for in this subpart shall be made by 
motion. A motion 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 subpart B to part 3010 of this chapter. A 
motion to dismiss proceedings or any other motion that involves a final 
determination of the proceeding, any motion under Sec.  3020.121, and a 
motion that seeks to extend the deadline for issuance of an advisory 
opinion shall be addressed to the Commission. After a presiding officer 
is designated in a proceeding, all other motions in that proceeding, 
except those filed under part 3011 of this chapter, shall be addressed 
to the presiding officer.
    (2) Within five days after a motion is filed, or such other period 
as the Commission or presiding officer in any proceeding under this 
subpart may establish, any participant to the proceeding may file and 
serve an answer in support of or in opposition to the motion pursuant to 
subpart B to part 3010 of this chapter. Such an answer shall state with 
specificity 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.
    (b) Motions to be excused from answering discovery requests. (1) A 
motion to be excused from answering discovery requests shall be filed 
with the Commission within three days of the filing of the 
interrogatory, request for production, or request for admission to which 
the motion is directed. If a motion to be excused from answering is made 
part of an interrogatory, request for production, or request for 
admission, the part to which objection is made shall be clearly 
identified. Claims of privilege shall identify the specific evidentiary 
privilege asserted and state the reasons for its applicability. Claims 
of undue burden shall state with particularity the effort that would be 
required to answer or respond to the request, providing estimates of 
costs and workhours required, to the extent possible.
    (2) An answer to a motion to be excused from answering a discovery 
request shall be filed within two days of the filing of the motion. The 
text of the discovery request and any answer previously provided by the 
Postal Service shall be included as an attachment to the answer.
    (3) Unless the Commission or presiding officer grants the motion to 
be excused from answering, the Postal Service shall answer the 
interrogatory, production request, or request for admission. Answers 
shall be filed in conformance with subpart B to part 3010 of this 
chapter within three days of the date on which a motion to be excused 
from answering is denied.
    (4) The Commission or presiding officer may impose such terms and 
conditions as are just and may, for good cause, issue a protective 
order, including an order limiting or conditioning interrogatories, 
requests for production, and requests for admission as justice requires 
to protect the Postal Service from undue annoyance, embarrassment, 
oppression, or expense.
    (c) Motions to strike. Motions to strike are requests for 
extraordinary relief and are not substitutes for briefs or rebuttal 
evidence in a proceeding. A motion to strike testimony or exhibit 
materials must be submitted in writing at least three days before the 
scheduled appearance of a witness, unless good cause is shown. Responses 
to motions to strike are due within two days.
    (d) Motions for leave to file surrebuttal testimony. Motions for 
leave to file surrebuttal testimony submitted pursuant to Sec.  3020.121 
and any answers thereto must be filed on or before the dates provided in 
the procedural schedule established by the Commission.



Sec.  Sec.  3020.106-3020.109  [Reserved]



Sec.  3020.110  Procedural schedule.

    (a) Notice. Subject to paragraph (b) of this section, the Commission 
shall include in the notice of proceeding issued under Sec.  3010.151 of 
this chapter a procedural schedule based upon the pro

[[Page 448]]

forma schedule set forth in appendix A of this part. The procedural 
schedule shall include:
    (1) A deadline for notices of interventions;
    (2) The date(s) for the mandatory technical conference between the 
Postal Service, Commission staff, and interested parties;
    (3) The deadline for discovery on the Postal Service's direct case;
    (4) The deadline for responses to participant in discovery on the 
Postal Service's case;
    (5) The deadline for participants to confirm their intent to file a 
rebuttal case;
    (6) The date for filing participant rebuttal testimony, if any;
    (7) The dates for filing motions for leave to file surrebuttal 
testimony and answers thereto;
    (8) The date for filing surrebuttal, if any;
    (9) The date(s) for hearings on the Postal Service's direct case, 
rebuttal testimony, and surrebuttal testimony, if any;
    (10) The date for filing initial briefs;
    (11) The date for filing reply briefs; and
    (12) A deadline for issuance of an advisory opinion which is 90 days 
from the date of filing.
    (b) Changes for good cause. These dates are subject to change for 
good cause only.
    (c) Incomplete request. If at any time the Commission determines 
that the Postal Service's request is incomplete or that changes made 
subsequent to its filing significantly modify the request, the 
Commission may extend the deadlines established or take any other action 
as justice may require.



Sec.  3020.111  Pre-filing requirements.

    (a) Pre-filing conference required. Prior to the Postal Service 
filing a request that the Commission issue an advisory opinion on a 
proposed change in the nature of postal services subject to the 
procedures established in this subpart, the Postal Service shall conduct 
one or more pre-filing conference(s) with interested persons in the 
proceeding and shall make a good faith effort to address the concerns of 
such persons.
    (b) Purpose. The purpose of a pre-filing conference is to expedite 
consideration of the Postal Service's request for the issuance of 
advisory opinions by informing interested persons of the Postal 
Service's proposal; by providing an opportunity for interested persons 
to give feedback to the Postal Service that can be used by the Postal 
Service to modify or refine its proposal before it is filed at the 
Commission; and by identifying relevant issues and information needed to 
address those issues during proceedings at the Commission.
    (c) Rationale for the proposal. The Postal Service shall make 
available at the pre-filing conference a representative capable of 
discussing the policy rationale behind the Postal Service's proposal 
with interested persons.
    (d) Notice. The Postal Service shall file with the Commission a 
notice of its intent to conduct any pre-filing conference(s) at least 
ten days before the first scheduled conference. The notice filed by the 
Postal Service shall include a schedule of proposed date(s) and 
location(s) for the conference(s). Upon receipt of such notice, the 
Commission shall issue a notice of pre-filing conference(s), which shall 
be published in the Federal Register, and appoint a Public 
Representative.
    (e) Nature of conferences. Discussions during the pre-filing 
conference(s) shall be informal and off the record. No formal record 
will be created during a pre-filing conference.
    (f) Noncompliance. If the Postal Service's noncompliance with the 
requirements of the pre-filing conference under Sec.  3020.113(b)(4) is 
established by a participant, the Commission may, in its discretion, 
consider an extension of, or modification to, the procedural schedule.
    (g) Informal meetings. Interested persons may meet outside the 
context of a pre-filing conference, among themselves or with the Postal 
Service, individually or in groups, to discuss the proposed changes in 
the nature of postal services.



Sec.  3020.112  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

[[Page 449]]

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 subpart B to part 3010 of this chapter and Sec.  
3020.113. The request shall be filed not less than 90 days before the 
proposed effective date of the change in the nature of postal services 
involved. Within five days after the Postal Service has filed a formal 
request for an advisory opinion in accordance with this section, the 
Secretary shall lodge a notice thereof with the director of the Office 
of the Federal Register for publication in the Federal Register.



Sec.  3020.113  Contents of formal requests.

    (a) General requirements. A 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 interested persons of the nature, scope, significance, 
and impact of the proposed change in the nature of postal services and 
to show that the change in the nature of postal services is in 
accordance with and conforms to the policies established under title 39, 
United States Code.
    (b) Specific information. A formal request shall include:
    (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 
title 39, United States Code;
    (4) A statement that the Postal Service has completed the pre-filing 
conference(s) required by Sec.  3020.111, including the time and place 
of each conference and a certification that the Postal Service has made 
a good faith effort to address concerns of interested persons about the 
Postal Service's proposal raised at the pre-filing conference(s);
    (5) The prepared direct evidence required by Sec.  3020.114;
    (6) The name of an institutional witness capable of providing 
information relevant to the Postal Service's proposal that is not 
provided by other Postal Service witnesses; and
    (7) Confirmation that Postal Service witnesses, including its 
institutional witness, will be available for the mandatory technical 
conference provided for in Sec.  3020.115.
    (c) Additional information. The Commission may request additional 
information from the Postal Service concerning a formal request.
    (d) Reliance on prepared direct evidence. The Postal Service may 
incorporate detailed data, information, and statements of reason or 
basis contained in prepared direct evidence submitted under paragraph 
(b)(5) of this section into its formal request by reference to specific 
portions of the prepared direct evidence.



Sec.  3020.114  Filing of prepared direct evidence.

    As part 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 title 39, United States Code. Such prepared direct evidence 
shall be in the form of prepared written testimony and documentary 
exhibits which shall be filed in accordance with Sec. Sec.  3010.322 and 
3010.323 of this chapter.



Sec.  3020.115  Mandatory technical conference.

    (a) Date. A date for a mandatory technical conference shall be 
included in the procedural schedule required by Sec.  3020.110. The date 
for this technical conference shall be set based upon the pro forma 
schedule set forth in appendix A to this part. The conference shall be 
held at the offices of the Commission.
    (b) Witnesses. The Postal Service shall make available at the 
technical

[[Page 450]]

conference each witness whose prepared direct testimony was filed 
pursuant to Sec.  3020.114. If the Postal Service seeks for any witness 
to be excused on the basis that the witness's testimony neither presents 
nor is based upon technical information, it shall make such a motion 
concurrent with its request.
    (c) Purpose. The purpose of the technical conference is to provide 
an informal, off-the-record opportunity for participants, the officer of 
the Commission representing the interests of the general public, and 
Commission staff to clarify technical issues and to identify and request 
information relevant to an evaluation of the nature of changes to postal 
services proposed by the Postal Service. The technical conference is not 
part of the formal record in the proceeding.
    (d) Relation to discovery process. Information obtained during the 
mandatory technical conference may be used to discover additional 
relevant information by means of the formal discovery mechanisms 
provided for in Sec. Sec.  3020.116 through 3020.119.
    (e) Record. Information obtained during, or as a result of, the 
mandatory technical conference is not part of the decisional record 
unless admitted under the standards of Sec.  3010.322(a) of this 
chapter.



Sec.  3020.116  Discovery--in general.

    (a) Purpose. The rules in this subpart allow discovery that is 
reasonably calculated to lead to admissible evidence during a 
proceeding. The notice and scheduling order issued pursuant to Sec.  
3020.110 shall provide that discovery will be scheduled to end at least 
three days prior to the commencement of hearings.
    (b) Informal discovery. The discovery procedures in this section and 
Sec. Sec.  3020.117 through 3020.119 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, or by other appropriate means. In the 
interest of reducing motion practice, participants also are expected to 
use informal means to clarify questions and to identify portions of 
discovery requests considered overbroad or burdensome.
    (c) Failure to obey orders or rulings. If a participant fails to 
obey an order of the Commission or ruling of presiding officer to 
provide or permit discovery pursuant to this section or Sec. Sec.  
3020.117 through 3020.119, the Commission or the presiding officer may 
issue orders or rulings in regard to the failure as are just. These 
orders or rulings may, among other things:
    (1) Direct that certain designated facts are established for the 
purposes of the proceeding;
    (2) Prohibit a participant from introducing certain designated 
matters in evidence;
    (3) Strike certain evidence, requests, pleadings, or parts thereof; 
or
    (4) Such other relief as the Commission deems appropriate.



Sec.  3020.117  Interrogatories.

    (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 in a proceeding may 
propound to any other participant no more than a total of 25 written, 
sequentially numbered interrogatories, by witness, requesting non-
privileged information relevant to the subject matter of the proceeding. 
An interrogatory with subparts that are logically or factually subsumed 
within and necessarily related to the primary question will be counted 
as one interrogatory. The respondent shall answer each interrogatory and 
furnish such information as is available. The participant propounding 
the interrogatories shall file them with the Commission in conformance 
with part 3010, subpart B, of this chapter. Follow-up interrogatories 
that clarify or elaborate on the answer to an earlier discovery request 
may be filed after the period for intervenor discovery on the Postal 
Service case ends, if the interrogatories are filed within seven days of 
receipt of the answer to the previous interrogatory. In extraordinary 
circumstances, follow-up interrogatories may be filed not less than six 
days prior to the filing date for the participant's rebuttal or 
surrebuttal testimony.

[[Page 451]]

    (b) Answers. (1) Answers to interrogatories shall be prepared so 
that they can be incorporated into the record 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 propounded the interrogatory, and the number and text of 
the question.
    (2) Each interrogatory shall be answered separately and fully in 
writing by the individual responsible for the answer, unless it is 
objected to, in which event the reasons for objection shall be stated in 
a motion to be excused from answering in the manner prescribed by 
paragraph (c) of this section.
    (3) 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.
    (4) Answers filed by a respondent shall be filed in conformance with 
subpart B to part 3010 of this chapter within seven days of the filing 
of the interrogatories or within such other period as may be fixed by 
the Commission or presiding officer. Any other period fixed by the 
Commission or presiding officer shall end before the conclusion of the 
hearing.
    (c) Motion to be excused from answering. A respondent may, in lieu 
of answering an interrogatory, file a motion pursuant to Sec.  
3020.105(b) to be excused from answering.
    (d) Supplemental answers. A respondent has a duty to timely amend a 
prior answer if it obtains information upon the basis of which it knows 
that the answer was incorrect when made or is no longer true. A 
respondent 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. A respondent 
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.



Sec.  3020.118  Production of documents.

    (a) Service and contents. (1) 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 a request to produce and permit the participant making 
the request, or someone acting on behalf of the participant, 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 
respondent.
    (2) 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 items shall file its request with the 
Commission in conformance with part 3010, subpart B, of this chapter.
    (b) Answers. (1) The respondent shall file an answer to a request 
under paragraph (a) of this section with the Commission in conformance 
with subpart B to part 3010 of this chapter within seven 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, whether inspection will be permitted as 
requested.
    (2) If the respondent objects to an item or category, it shall state 
the reasons for objection in a motion to be excused from answering as 
prescribed by paragraph (c) of this section.
    (c) Motions to be excused from answering. A respondent may, in lieu 
of answering a request for production, file a motion pursuant to Sec.  
3020.105(b) to be excused from answering.



Sec.  3020.119  Admissions.

    (a) Service and content. In the interest of expedition, any 
participant may serve upon any other participant a written request for 
the admission of any relevant, unprivileged facts, including the 
genuineness of any documents or exhibits to be presented in the hearing. 
The admission shall be for purposes of the pending proceeding only. The 
participant requesting the

[[Page 452]]

admission shall file its request with the Commission in conformance with 
subpart B to part 3010 of this chapter.
    (b) Answers. (1) A matter for which admission is requested shall be 
separately set forth in the request and is deemed admitted unless, 
within seven days after the request is filed, or within such other 
period as may be established by the Commission or presiding officer, the 
respondent files a written answer or motion to be excused from answering 
pursuant to paragraph (c) of this section. Answers to requests for 
admission shall be filed with the Commission in conformance with subpart 
B to part 3010 of this chapter.
    (2) If the answer filed by the respondent does not admit a matter 
asserted in the participant's request, it must either specifically deny 
the matter or explain in detail why it cannot truthfully admit or deny 
the asserted matter. When good faith requires, the respondent must admit 
a portion of the asserted matter and either deny or qualify the 
remaining portion of such asserted matter. Lack of knowledge for failing 
to admit or deny can be invoked only after reasonable inquiry if the 
information already possessed or reasonably obtainable is insufficient 
to enable an admission or denial.
    (3) Grounds for objection to requests for admission must be stated. 
Objections cannot be based solely upon the ground that the request 
presents a genuine issue for trial.
    (c) Motion to be excused from answering. A respondent may, in lieu 
of answering a request for admission, file a motion pursuant to Sec.  
3020.105(b) to be excused from answering.



Sec.  3020.120  Rebuttal testimony.

    (a) Timing. Any participant may file rebuttal testimony on or before 
the date established for that purpose by the procedural schedule issued 
by the Commission pursuant to Sec.  3020.110. Hearing on rebuttal 
testimony shall proceed as set forth in the procedural schedule.
    (b) Limitations. The scope of rebuttal testimony shall be limited to 
material issues relevant to the specific proposal made by the Postal 
Service. Rebuttal testimony shall not propose, or seek to address, 
alternatives to the Postal Service's proposal.
    (c) Intent to file rebuttal testimony. If a participant wishes to 
file rebuttal testimony, it must file a document confirming its intent 
to file rebuttal testimony with the Commission by the date provided in 
the procedural schedule.
    (d) Adjustment of dates. If no participant files a confirmation of 
intent to file rebuttal testimony on or before the date established by 
the procedural schedule issued by the Commission pursuant to Sec.  
3020.110, the Commission may adjust other dates in the procedural 
schedule as it deems to be necessary and appropriate.



Sec.  3020.121  Surrebuttal testimony.

    (a) Scope. Surrebuttal testimony shall be limited to material issues 
relevant to the Postal Service's proposal and to the rebuttal testimony 
which the surrebuttal testimony seeks to address. Testimony that exceeds 
the scope of the Postal Service's proposal or rebuttal testimony shall 
not be permitted.
    (b) Motion for leave to file surrebuttal. A participant who wishes 
to file surrebuttal testimony must obtain prior approval by filing with 
the Commission a motion for leave to file surrebuttal pursuant to Sec.  
3020.105(d) on or before the date provided in the procedural schedule 
established by the Commission. The motion must summarize the surrebuttal 
testimony the participant wishes to file and must identify and explain 
exceptional circumstances that require the filing of such testimony. The 
moving participant bears the burden of demonstrating exceptional 
circumstances that warrant a grant of the motion. Answers to such 
motions may be filed as provided in Sec.  3020.105(d).
    (c) Deadline for filing surrebuttal authorized by the Commission. In 
the event the Commission grants the motion for leave to file surrebuttal 
testimony, the moving participant must file its proposed surrebuttal 
testimony by the date provided in the procedural schedule established 
pursuant to Sec.  3020.110.
    (d) Adjustment of procedural dates. If no participant files a motion 
for leave to file surrebuttal testimony, or if the Commission denies all 
such motions as

[[Page 453]]

may be filed, the remaining dates in the procedural schedule may be 
adjusted by the Commission as it deems to be necessary and appropriate.



Sec.  3020.122  Hearings.

    (a) Initiation. Hearings for the purpose of taking evidence shall be 
initiated by the issuance of a notice and scheduling order pursuant to 
Sec.  3020.110.
    (b) Presiding officer. All hearings shall be held before the 
Commission sitting en banc with 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 on whose behalf each 
such appearance has been made.
    (d) Order of procedure. In requests for advisory opinions before the 
Commission, the Postal Service shall be the first participant to present 
its case. Unless otherwise ordered by the Commission, the presiding 
officer shall direct the order of presentation of all other participants 
and issue such other procedural orders as may be necessary to assure the 
orderly and expeditious conclusion of the hearing.
    (e) Presentation of the evidence--(1) Presentations by participants. 
Each participant shall have the right in public hearings to present 
evidence relevant to the Postal Service's proposal, cross-examine 
(limited to testimony adverse to the participant conducting the cross-
examination), object, move, and argue. The participant's presentation 
shall be in writing and 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.) 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 shall be served in accordance with part 
3010, subpart B, of this chapter no later than three 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, ``PR-
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 (unfastened, 
single-spaced, not hole-punched) are to be included and 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 not be admitted into 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 shall be filed three or more days before the announced 
appearance of the witness and shall 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 shall be filed at 
least two 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

[[Page 454]]

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 shall be delivered to counsel for that 
participant and served three or more working days before the announced 
appearance of the witness. Cross-examination exhibits shall be delivered 
to counsel for the witness at least two 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 exploration of the Postal 
Service's proposal, disposition of the proceeding, and the avoidance of 
irrelevant, immaterial, or unduly repetitious testimony.
    (g) Motions during hearing. Except as provided in Sec.  3020.105(a), 
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 therefore 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 
manner directed by the presiding officer.
    (h) Rulings on motions. The presiding officer is authorized to rule 
upon any motion not reserved for decision by the Commission in Sec.  
3020.105(a). This section shall not preclude a presiding officer from 
referring any motion made in hearing to the Commission for ultimate 
determination.
    (i) Transcript corrections. Corrections to the transcript of a 
hearing shall not be requested except to correct a material substantive 
error in the transcription made at the hearing.
    (j) Field hearings. Field hearings will not be held except upon a 
showing by any participant and determination by the Commission that 
there is exceptional need or utility for such a hearing which cannot be 
accomplished by alternative means.



Sec.  3020.123  Initial and reply briefs.

    (a) When filed. At the close of the taking of testimony in any 
proceeding, participants may file initial and reply briefs. The dates 
for filing initial and reply briefs shall be established in the 
procedural schedule issued pursuant to Sec.  3020.110. Such dates may be 
modified by subsequent order issued by the Commission or the presiding 
officer.
    (b) Contents. Each brief filed with the Commission shall be as 
concise as possible 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 Postal Service request;
    (4) A discussion of the evidence, reasons, and authorities relied 
upon with precise 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) Length. Initial briefs filed by all participants other than the 
Postal Service shall not exceed 14,000 words. Initial briefs filed by 
the Postal Service shall not exceed 21,000 words. Reply briefs filed by 
all participants other than the Postal Service shall not exceed 7,000 
words. Reply briefs filed by the Postal Service shall not exceed 10,500 
words. All participants shall attest to the number of words contained in 
their brief. Tables of cases, tables of

[[Page 455]]

citations, and appendices shall not be considered as part of the word 
count.
    (d) Include by reference. 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.
    (e) Excerpts from the record. Testimony and exhibits shall not be 
quoted or included in briefs except for short excerpts pertinent to the 
argument presented.
    (f) Filing and service. Briefs shall be filed in the form and manner 
and served as required by subpart B to part 3010 of this chapter.
    (g) Statements of Position. As an alternative to filing a formal 
brief, a participant may file a Statement of Position. To the extent 
practicable, the contents of each Statement of Position should include a 
clear, concise, and definitive statement of the position of the filing 
participant as to the Postal Service request, as well as any points or 
factors in the existing record that support the participant's position. 
Statements of Position shall be limited to the existing record and shall 
not include any new evidentiary material.



   Sec. Appendix A to Part 3020--Pro Forma N-Case Procedural Schedule

------------------------------------------------------------------------
       Line                     Action                   Day number
------------------------------------------------------------------------
1.................  Pre-Filing Consultations \1\..  n/a.
2.................  Commission Order \2\..........  n/a.
3.................  Filing of Postal Service        0.
                     Request.
4.................  Commission Notice and Order     1-3.
                     \3\.
5.................  Technical Conference..........  10.
6.................  Participant Discovery on        28.
                     Postal Service Case Ends.
7.................  Responses to Participant        35.
                     Discovery on Postal Service
                     Case.
8.................  Participants Confirm Intent to  37.\4\
                     File a Rebuttal Case.
9.................  Filing of Rebuttal Cases (if    42.
                     submitted).
10................  Deadline for Motions to Leave   44.\5\
                     to File Surrebuttal.
11................  Deadline for Answers to         46.
                     Motions for Surrebuttal.
12................  Filing of Surrebuttal Cases     49.\6\
                     (if authorized).
13................  Hearings:
                       Hearings (with no Rebuttal   42-44.
                        Cases).
                       Hearings (with Rebuttal      49-51.
                        Cases, but no requests for
                        leave to file Surrebuttal
                        Cases).
                       Hearings (with Rebuttal      54-56.
                        Cases and requests for
                        leave to file Surrebuttal
                        Cases).
14................  Initial Briefs................  (7 days after
                                                     conclusion of
                                                     hearings).
15................  Reply Briefs..................  (7 days after filing
                                                     of Initial Briefs).
 16...............  Target Issuance Date of         90.
                     Advisory Opinion.
------------------------------------------------------------------------
\1\ The Postal Service would initiate pre-filing consultations and would
  file a notice with the Commission of such consultations prior to their
  commencement.
\2\ This order would appoint a Public Representative.
\3\ This notice and order would announce the Postal Service request, set
  a deadline for interventions, set a date for a technical conference,
  and establish a procedural schedule.
\4\ If no participant elects to file a rebuttal case, hearings begin on
  Day 42.
\5\ If no surrebuttal cases are requested, hearings begin on Day 49.
\6\ If one or more surrebuttal cases are requested (whether or not
  authorized by the Commission), hearings begin on Day 54.



PART 3021_RULES FOR APPEALS OF POSTAL SERVICE DETERMINATIONS TO CLOSE
OR CONSOLIDATE POST OFFICES--Table of Contents



Sec.
3021.1 Definitions.
3021.2 Applicability.
3021.3 Notice by the Postal Service.
3021.10 Starting an appeal.
3021.11 Submitting an appeal and other documents.
3021.12 Duplicate appeals.
3021.13 Deadlines for appeals.
3021.14 Participation by others.
3021.20 The record on review.
3021.21 Filing of the administrative record.
3021.22 Making documents available for inspection by the public.
3021.30 Suspension pending review.
3021.40 Participant statement.
3021.41 Due date for participant statement.
3021.42 Due date for Postal Service response.
3021.43 Due date for replies to the Postal Service.

    Authority: 39 U.S.C. 404(d).

[[Page 456]]


    Source: 77 FR 6679, Feb. 9, 2012, unless otherwise noted. 
Redesignated at 85 FR 9615, Feb. 19, 2020.



Sec.  3021.1  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.
    (c) Petition for Review means a written document that the Commission 
accepts as an appeal of a post office closing or consolidation.



Sec.  3021.2  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) Subparts A through D to part 3010 of this chapter apply to 
appeals of post office closings or consolidations.
    (c) Answers to motions filed by the Postal Service are due within 10 
days.

[77 FR 6679, Feb. 9, 2012, as amended at 85 FR 9655, Feb. 19, 2020]



Sec.  3021.3  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.  3021.10  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.  3021.11  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 website, http://
www.prc.gov, or by delivery to the Commission's offices at 901 New York 
Avenue NW., Suite 200, Washington, DC 20268-0001.

[77 FR 6679, Feb. 9, 2012, as amended at 85 FR 9660, Feb. 19, 2020]



Sec.  3021.12  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.  3021.13  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.  3021.3(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

[[Page 457]]

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.

[77 FR 6679, Feb. 9, 2012, as amended at 85 FR 9655, Feb. 19, 2020]



Sec.  3021.14  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 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.  
3021.11.
    (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.  3021.41 through 3021.43. Commenters may use 
PRC Form 61, which is available on the Commission's website, http://
www.prc.gov.

[85 FR 9655, Feb. 19, 2020]



Sec.  3021.20  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.  3021.21  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 
website. 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.

[77 FR 6679, Feb. 9, 2012, as amended at 85 FR 9660, Feb. 19, 2020]



Sec.  3021.22  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.  3021.30  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.  3021.40  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 the petitioner's arguments in 
support of the petition.

[[Page 458]]

    (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.

[77 FR 6679, Feb. 9, 2012, as amended at 85 FR 9655, Feb. 19, 2020]



Sec.  3021.41  Due date for participant statement.

    The statement or brief of petitioner and of any other participant 
seeking to have the Commission return the entire matter to the Postal 
Service for further consideration, shall be filed not more than 20 days 
after the filing of the administrative record.



Sec.  3021.42  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.  3021.43  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 3022_RULES FOR COMPLAINTS--Table of Contents



                            Subpart A_General

Sec.
3022.1 Applicability.
3022.2 Scope and nature of complaints.

       Subpart B_Form and Manner Requirements of Initial Pleadings

3022.10 Complaint contents.
3022.11 Service.
3022.12 Pleadings filed in response to a complaint.
3022.13 Conditions for applying rate or service inquiry procedures to 
          complaints.
3022.14 Answer contents.

                   Subpart C_Supplemental Information

3022.20 Sufficiency of information.
3022.21 Investigator.

                          Subpart D_Proceedings

3022.30 Beginning proceedings on complaints.

                          Subpart E_Settlement

3022.40 Policy on settlement.
3022.41 Satisfaction.

             Subpart F_Commission Determinations and Relief

3022.50 Remedies.

    Authority: 39 U.S.C. 503; 3662.

    Source: 74 FR 16744, Apr. 10, 2009, unless otherwise noted. 
Redesignated at 85 FR 9615, Feb. 19, 2020.



                            Subpart A_General



Sec.  3022.1  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 3010 of this chapter applies unless 
otherwise stated in this part or otherwise ordered by the Commission.
    (b) Subpart E to part 3010 of this chapter does not apply to this 
part unless and until the Commission makes a finding under Sec.  
3022.30(a)(1) that the complaint raises material issues of fact or law 
and that the issues shall be considered through a hearing on the record.

[85 FR 9655, Feb. 19, 2020]



Sec.  3022.2  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:

[[Page 459]]

    (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.  3022.10  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;
    (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.  3022.11.
    (b) The Commission may waive any of the requirements listed in 
paragraph (a) of this section to serve the interests of justice.

[74 FR 16744, Apr. 10, 2009, as amended at 85 FR 9655, Feb. 19, 2020]



Sec.  3022.11  Service.

    Any person filing a complaint must simultaneously serve a copy of 
the complaint on the Postal Service at this address: 
[email protected]. A person without internet access may contact the 
Secretary to obtain approval for alternative methods of service.

[85 FR 9655, Feb. 19, 2020]



Sec.  3022.12  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.  3022.13 to the complaint, the answer is due 
contemporaneously with the Postal Service's report under Sec.  3023.11 
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.

[74 FR 16744, Apr. 10, 2009, as amended at 85 FR 9656, Feb. 19, 2020]

[[Page 460]]



Sec.  3022.13  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.  3023.11 of this chapter if the Commission finds that there is a 
reasonable likelihood that such procedures may result in resolution of 
the complaint. The Commission will issue an order to apply the 
procedures of Sec.  3023.11 of this chapter prior to the due date for 
the Postal Service answer set forth in Sec.  3022.12.
    (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.  3022.12(b)(2).

[74 FR 16744, Apr. 10, 2009, as amended at 85 FR 9656, Feb. 19, 2020]



Sec.  3022.14  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.  3022.20  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.  3022.21, or do both.

[85 FR 9656, Feb. 19, 2020]



Sec.  3022.21  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.

[[Page 461]]



                          Subpart D_Proceedings



Sec.  3022.30  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.  3010.151 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.

[74 FR 16744, Apr. 10, 2009, as amended at 85 FR 9656, Feb. 19, 2020]



                          Subpart E_Settlement



Sec.  3022.40  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.  3022.41  Satisfaction.

    (a) If a complaint is resolved informally, in whole or in part, 
subsequent to Commission action under Sec.  3022.30(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.

[74 FR 16744, Apr. 10, 2009, as amended at 85 FR 9656, Feb. 19, 2020]



             Subpart F_Commission Determinations and Relief



Sec.  3022.50  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 3023_RULES FOR RATE OR SERVICE INQUIRIES--Table of Contents



         Subpart A_Rate or Service Inquiry Forms and Procedures

Sec.
3023.10 Rate or service inquiry contents.
3023.11 Rate or service inquiry procedures.
3023.12 Treatment as a complaint.

Subpart B [Reserved]

    Authority: 39 U.S.C. 503, 3662.

    Source: 74 FR 16746, Apr. 10, 2009, unless otherwise noted. 
Redesignated at 85 FR 9615, Feb. 19, 2020.

[[Page 462]]



         Subpart A_Rate or Service Inquiry Forms and Procedures



Sec.  3023.10  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.  3023.11  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.  3023.12 is appropriate.
    (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.

[74 FR 16746, Apr. 10, 2009, as amended at 85 FR 9656, Feb. 19, 2020]



Sec.  3023.12  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.  3022.21 of this chapter or appoint a Public 
Representative representing the interests of the general public to 
pursue the matter.

[85 FR 9656, Feb. 19, 2020]

Subpart B [Reserved]



PART 3024_SPECIAL RULES FOR COMPLAINTS ALLEGING VIOLATIONS OF
39 U.S.C. 404a--Table of Contents



                            Subpart A_General

Sec.
3024.1 Applicability.
3024.2-3024.4 [Reserved]

                   Subpart B_Requirements and Defenses

3024.5 Postal Service rules that create an unfair competitive advantage.
3024.6 Disclosure, transfer, and licensing of intellectual property.
3024.7 Unlawfully obtaining information.
3024.8 Statutorily authorized affirmative defense.

    Authority: 39 U.S.C. 404a; 3662.

    Source: 79 FR 62294, Oct. 16, 2014, unless otherwise noted. 
Redesignated at 85 FR 9615, Feb. 19, 2020.



                            Subpart A_General



Sec.  3024.1  Applicability.

    The rules in this part govern proceedings filed under 39 U.S.C. 3662 
alleging violations of 39 U.S.C. 404a that meet the requirements of 
Sec. Sec.  3022.2 and 3022.10 of this chapter.

[85 FR 9656, Feb. 19, 2020]



Sec. Sec.  3024.2-3024.4  [Reserved]



                   Subpart B_Requirements and Defenses



Sec.  3024.5  Postal Service rules that create an unfair competitive
advantage.

    (a) A complaint alleging a violation of 39 U.S.C. 404a(a)(1) must 
show that a Postal Service rule, regulation, or standard has the effect 
of:
    (1) Precluding competition; or
    (2) Establishing the terms of competition.
    (b) As an affirmative defense to a complaint under 39 U.S.C. 
404a(a)(1), the Postal Service may demonstrate that the rule, 
regulation, or standard at issue does not create an unfair competitive 
advantage for itself or any entity funded, in whole or in part, by the 
Postal Service.

[[Page 463]]

    (c) As used in this section, the term rule, regulation, or standard 
includes, among other things, documents or policies issued by the Postal 
Service to exercise its regulatory authority or otherwise act as a 
governmental entity.

[79 FR 62294, Oct. 16, 2014, as amended at 85 FR 9656, Feb. 19, 2020]



Sec.  3024.6  Disclosure, transfer, and licensing of intellectual
property.

    (a) A complaint alleging a violation of 39 U.S.C. 404a(a)(2) must 
show that the Postal Service has compelled or attempted to compel the 
disclosure, transfer, or licensing of the intellectual property of the 
person filing the complaint to a third party.
    (b) As used in this section, the term intellectual property 
includes, among other things, patents, copyrights, trademarks, trade 
secrets, and proprietary information.
    (c) As used in this section, the term disclosure, transfer, or 
licensing of intellectual property includes, among other things, an 
action that has an adverse effect on the value of intellectual property.



Sec.  3024.7  Unlawfully obtaining information.

    (a) A complaint alleging a violation of 39 U.S.C. 404a(a)(3) must 
show that:
    (1) The person filing the complaint has provided or sought to 
provide a product;
    (2) The Postal Service obtained information about such product from 
the person filing the complaint; and
    (3) The Postal Service offers or offered a postal service that uses 
or is based, in whole or in part, on the information obtained from the 
person filing the complaint.
    (b) As an affirmative defense to a complaint under 39 U.S.C. 
404a(a)(3), the Postal Service may demonstrate that substantially the 
same information was obtained (or was obtainable) from an independent 
source or is otherwise obtained (or obtainable) through lawful means.
    (c) As an affirmative defense to a complaint under 39 U.S.C. 
404a(a)(3), the Postal Service may show that the information obtained 
was provided by written consent.



Sec.  3024.8  Statutorily authorized affirmative defense.

    (a) As an affirmative defense to an allegation of a violation of 39 
U.S.C. 404a(a), the Postal Service may demonstrate that it is 
specifically authorized by law to take the action or inaction alleged to 
be a violation of that section.
    (b) Authority under 39 U.S.C. 401 or 39 U.S.C. 404 may not form the 
basis of an affirmative defense under paragraph (a) of this section.
    (c) Paragraph (b) of this section does not preclude the Postal 
Service from arguing that a particular Postal Service regulation or 
other action (or inaction) does not have the requisite effect to violate 
39 U.S.C. 404a(a).



PART 3025_PROCEDURES RELATED TO COMMISSION VIEWS SUBMITTED TO
THE SECRETARY OF STATE--Table of Contents



Sec.
3025.101 Definitions in this part.
3025.102 Purpose.
3025.103 Establishment and scope of docket.
3025.104 Comment deadline(s).
3025.105 Issuance of Commission views.

    Authority: 39 U.S.C. 407; 503.

    Source: 85 FR 13054, Mar. 6, 2020, unless otherwise noted.



Sec.  3025.101  Definitions in this part.

    (a) Commission views refers to the opinion the Commission provides 
to the Secretary of State pursuant to 39 U.S.C. 407(c)(1) on the 
consistency of a relevant proposal with modern rate regulation.
    (b) Modern rate regulation refers to the standards and criteria the 
Commission has established pursuant to 39 U.S.C. 3622.
    (c) Relevant proposal means a proposed change to a treaty, 
convention, or amendment that establishes a market dominant rate or 
classification.



Sec.  3025.102  Purpose.

    The rules in this part are intended to facilitate public 
participation in, and promote the transparency of, the development of 
Commission views.

[[Page 464]]



Sec.  3025.103  Establishment and scope of docket.

    (a) On or about 150 days before a Universal Postal Union Congress 
convenes or such advance time as the Commission determines for any other 
39 U.S.C. 407(c)(1) matter, the Commission shall establish a docket in 
order to solicit public comments as part of the development of 
Commission views.
    (b) The Commission shall post relevant proposals in the applicable 
docket established pursuant to paragraph (a) of this section and may 
also include other materials related to the development of Commission 
views, such as other documents or related actions.
    (c) Public comments should focus on the specific relevant proposals 
posted by the Commission and the general principles that should guide 
the development of Commission views as well as any other materials 
posted in the applicable docket pursuant to paragraph (b) of this 
section.
    (d) The Commission shall arrange for publication in the Federal 
Register of the notice establishing each docket authorized under this 
part.



Sec.  3025.104  Comment deadline(s).

    (a) The Commission shall establish a deadline for comments upon 
establishment of the docket that is consistent with timely submission of 
Commission views to the Secretary of State. The Commission may establish 
other deadlines for comments as appropriate.
    (b) The Commission may suspend or forego solicitation of comments if 
it determines that such solicitation is not consistent with timely 
submission of Commission views to the Secretary of State.



Sec.  3025.105  Issuance of Commission views.

    (a) The Commission will review timely filed comments responding to a 
Commission solicitation pursuant to Sec.  3025.103(a) prior to 
submitting its views to the Secretary of State.
    (b) After Commission views are developed, the Commission shall post 
Commission views in the applicable docket established pursuant to Sec.  
3025.103(a) and submit Commission views to the Secretary of State 
pursuant to 39 U.S.C. 407(c)(1).

[[Page 465]]



SUBCHAPTER E_REGULATIONS GOVERNING MARKET DOMINANT PRODUCTS, COMPETITIVE 
                PRODUCTS, PRODUCT LISTS, AND MARKET TESTS





PART 3030_REGULATION OF RATES FOR MARKET DOMINANT PRODUCTS-
-Table of Contents



                      Subpart A_General Provisions

Sec.
3030.100 Applicability.
3030.101 Definitions.
3030.102 Schedule for regular and predictable rate adjustments.

                       Subpart B_Rate Adjustments

3030.120 General.
3030.121 Postal Service rate adjustment filing.
3030.122 Contents of a rate adjustment filing.
3030.123 Supporting technical documentation.
3030.124 Docket and notice.
3030.125 Opportunity for comments.
3030.126 Proceedings.
3030.127 Maximum rate adjustment authority.
3030.128 Calculation of percentage change in rates.
3030.129 Exceptions for de minimis rate increases.

              Subpart C_Consumer Price Index Rate Authority

3030.140 Applicability.
3030.141 CPI-U data source.
3030.142 CPI-U rate authority when rate adjustment filings are 12 or 
          more months apart.
3030.143 CPI-U rate authority when rate adjustment filings are less than 
          12 months apart.

                    Subpart D_Density Rate Authority

3030.160 Applicability.
3030.161 Density calculation data sources.
3030.162 Calculation of density rate authority.

             Subpart E_Retirement Obligation Rate Authority

3030.180 Definitions.
3030.181 Applicability.
3030.182 Retirement obligation data sources.
3030.183 Calculation of retirement obligation rate authority.
3030.184 Required minimum remittances.
3030.185 Forfeiture.

Subpart F--[Reserved]

             Subpart G_Non-Compensatory Classes or Products

3030.220 Applicability.
3030.221 Individual product requirement.
3030.222 Class requirement and additional class rate authority.

    Subpart H_Accumulation of Unused and Disbursement of Banked Rate 
                          Adjustment Authority

3030.240 General.
3030.241 Schedule of banked rate adjustment authority.
3030.242 Calculation of unused rate adjustment authority for rate 
          adjustments that involve a rate increase which are filed 12 
          months apart or less.
3030.243 Calculation of unused rate adjustment authority for rate 
          adjustments that involve a rate increase which are filed more 
          than 12 months apart.
3030.244 Calculation of unused rate adjustment authority for rate 
          adjustments that only include rate decreases.
3030.245 Application of banked rate authority.

    Subpart I_Rate Adjustments Due to Extraordinary and Exceptional 
                              Circumstances

3030.260 General.
3030.261 Contents of a rate adjustment filing.
3030.262 Supplemental information.
3030.263 Docket and notice.
3030.264 Public hearing.
3030.265 Opportunity for comments.
3030.266 Deadline for Commission decision.
3030.267 Treatment of banked rate adjustment authority.

                      Subpart J_Workshare Discounts

3030.280 Applicability.
3030.281 Calculation of passthroughs for workshare discounts.
3030.282 Increased pricing efficiency.
3030.283 Limitations on excessive discounts.
3030.284 Limitations on discounts below avoided cost.
3030.285 Proposal to adjust a rate associated with a workshare discount.
3030.286 Application for waiver.

    Authority: 39 U.S.C. 503; 3622.

[[Page 466]]


    Source: 85 FR 81126, Dec. 15, 2020, unless otherwise noted.



                      Subpart A_General Provisions



Sec.  3030.100  Applicability.

    (a) The rules in this part implement provisions in 39 U.S.C. chapter 
36, subchapter I, establishing the modern system of ratemaking for 
regulating rates and classes for market dominant products. The rules in 
this part are applicable whenever the Postal Service proposes to adjust 
a rate of general applicability for any market dominant product, which 
includes the addition of a new rate, the removal of an existing rate, or 
a change to an existing rate. Current rates may be found in the Mail 
Classification Schedule appearing on the Commission's website at 
www.prc.gov.
    (b) Rates may be adjusted either subject to the rules appearing in 
subpart B of this part, which includes a limitation on rate increases, 
or subject to the rules appearing in subpart I of this part, which does 
not include a limitation on rate increases but requires either 
extraordinary or exceptional circumstances. The rules applicable to the 
calculation of the limitations on rate increases appear in subparts C 
through H of this part. The rules for workshare discounts, which are 
applicable whenever market dominant rates are adjusted, appear in 
subpart J of this part.



Sec.  3030.101  Definitions.

    (a) The definitions in paragraphs (b) through (l) of this section 
apply to this part.
    (b) Annual limitation means the annual limitation on the percentage 
change in rates equal to the change in the Consumer Price Index for all 
Urban Consumers (CPI-U) unadjusted for seasonal variation over the most 
recently available 12-month period preceding the date the Postal Service 
files a request to review its notice of rate adjustment, as determined 
by the Commission.
    (c) Banked rate authority means unused rate adjustment authority 
accumulated for future use pursuant to the rules in this part.
    (d) A class of mail means the First-Class Mail, USPS Marketing Mail, 
Periodicals, Package Services, or Special Services groupings of market 
dominant Postal Service products or services. Generally, the regulations 
in this part are applicable to individual classes of mail.
    (e) Density rate authority means rate authority that is available to 
all classes to address the effects of decreases in density of mail.
    (f) Maximum rate adjustment authority means the maximum percentage 
change in rates available to a class for any planned increase in rates. 
It is the sum of: The consumer price index rate authority, and any 
available density rate authority, retirement obligation rate authority, 
banked rate authority, and rate authority applicable to non-compensatory 
classes.
    (g) Rate authority applicable to non-compensatory classes means rate 
authority available to classes where revenue for each product within the 
class was insufficient to cover that product's attributable costs as 
determined by the Commission.
    (h) Rate cell means each and every separate rate identified as a 
rate of general applicability.
    (i) Rate incentive means a discount that is not a workshare discount 
and that is designed to increase or retain volume, improve the value of 
mail for mailers, or improve the operations of the Postal Service.
    (j) Rate of general applicability means a rate applicable to all 
mail meeting standards established by the Mail Classification Schedule, 
the Domestic Mail Manual, and the International Mail Manual. A rate is 
not a rate of general applicability if eligibility for the rate is 
dependent on factors other than the characteristics of the mail to which 
the rate applies, including the volume of mail sent by a mailer in a 
past year or years. A rate is not a rate of general applicability if it 
benefits a single mailer. A rate that is only available upon the written 
agreement of both the Postal Service and a mailer, a group of mailers, 
or a foreign postal operator is not a rate of general applicability.
    (k) Retirement obligation rate authority means rate authority that 
is available

[[Page 467]]

to all classes to provide revenue for remittance towards the statutorily 
mandated amortization payments for unfunded liabilities.
    (l) A seasonal or temporary rate is a rate that is in effect for a 
limited and defined period of time.



Sec.  3030.102  Schedule for regular and predictable rate adjustments.

    (a) The Postal Service shall develop a Schedule for Regular and 
Predictable Rate Adjustments applicable to rate adjustments subject to 
this part. The Schedule for Regular and Predictable Rate Adjustments 
shall:
    (1) Schedule rate adjustments at specific regular intervals of time;
    (2) Provide estimated filing and implementation dates (month and 
year) for future rate adjustments for each class of mail expected over a 
minimum of the next 3 years; and
    (3) Provide an explanation that will allow mailers to predict with 
reasonable accuracy, by class, the amounts of future scheduled rate 
adjustments.
    (b) The Postal Service shall file a current Schedule for Regular and 
Predictable Rate Adjustments annually with the Commission at the time of 
filing the Postal Service's section 3652 report (see Sec.  3050.1(g) of 
this chapter). The Commission shall post the current schedule on the 
Commission's website at www.prc.gov.
    (c) Whenever the Postal Service deems it appropriate to change the 
Schedule for Regular and Predictable Rate Adjustments, it shall file a 
revised schedule.
    (d) The Postal Service may vary the magnitude of rate adjustments 
from those estimated by the Schedule for Regular and Predictable Rate 
Adjustments. In such case, the Postal Service shall provide an 
explanation for such variation with its rate adjustment filing.



                       Subpart B_Rate Adjustments



Sec.  3030.120  General.

    This subpart describes the process for the periodic adjustment of 
rates subject to the percentage limitations specified in Sec.  3030.127 
that are applicable to each class of mail.



Sec.  3030.121  Postal Service rate adjustment filing.

    (a) In every instance in which the Postal Service determines to 
exercise its statutory authority to adjust rates for a class of mail, 
the Postal Service shall comply with the requirements specified in 
paragraphs (b) through (d) of this section.
    (b) The Postal Service shall take into consideration how the planned 
rate adjustments are in accordance with the provisions of 39 U.S.C. 
chapter 36.
    (c) The Postal Service shall provide public notice of its planned 
rate adjustments in a manner reasonably designed to inform the mailing 
community and the general public that it intends to adjust rates no 
later than 90 days prior to the planned implementation date of the rate 
adjustments.
    (d) The Postal Service shall file a request to review its notice of 
rate adjustment with the Commission no later than 90 days prior to the 
planned implementation date of the rate adjustment.



Sec.  3030.122  Contents of a rate adjustment filing.

    (a) A rate adjustment filing under Sec.  3030.121 shall include the 
items specified in paragraphs (b) through (j) of this section.
    (b) A representation or evidence that public notice of the planned 
changes has been issued or will be issued at least 90 days before the 
effective date(s) for the planned rate adjustments.
    (c) The intended effective date(s) of the planned rate adjustments.
    (d) A schedule of the planned rate adjustments, including a schedule 
identifying every change to the Mail Classification Schedule that will 
be necessary to implement the planned rate adjustments.
    (e) The identity of a responsible Postal Service official who will 
be available to provide prompt responses to requests for clarification 
from the Commission.
    (f) The supporting technical documentation as described in Sec.  
3030.123.
    (g) A demonstration that the planned rate adjustments are consistent 
with 39 U.S.C. 3626, 3627, and 3629.

[[Page 468]]

    (h) A certification that all cost, avoided cost, volume, and revenue 
figures submitted with the rate adjustment filing are developed from the 
most recent applicable Commission accepted analytical principles.
    (i) For a rate adjustment that only includes a decrease in rates, a 
statement of whether the Postal Service elects to generate unused rate 
adjustment authority.
    (j) Such other information as the Postal Service believes will 
assist the Commission in issuing a timely determination of whether the 
planned rate adjustments are consistent with applicable statutory 
policies.



Sec.  3030.123  Supporting technical documentation.

    (a) Supporting technical documentation shall include the items 
specified in paragraphs (b) through (k) of this section, as applicable 
to the specific rate adjustment filing. This information must be 
supported by workpapers in which all calculations are shown and all 
relevant values (e.g., rates, CPI-U values, billing determinants) are 
identified with citations to original sources. The information must be 
submitted in machine-readable, electronic format. Spreadsheet cells must 
be linked to underlying data sources or calculations (not hard-coded), 
as appropriate.
    (b) The maximum rate adjustment authority, by class, as summarized 
by Sec.  3030.127 and calculated separately for each of subparts C 
through H of this part, as appropriate.
    (c) A schedule showing the banked rate adjustment authority 
available, by class, and the available amount for each of the preceding 
5 years calculated as required by subpart H of this part.
    (d) The calculation of the percentage change in rates, by class, 
calculated as required by Sec.  3030.128.
    (e) The planned usage of rate adjustment authority, by class, and 
calculated separately for each of subparts C through H of this part, as 
appropriate.
    (f) The amount of new unused rate adjustment authority, by class, if 
any, that will be generated by the rate adjustment calculated as 
required by subpart H of this part, as applicable.
    (g) A schedule of the workshare discounts included with the planned 
rate adjustments, and a companion schedule listing the avoided costs 
that underlie each such discount.
    (h) 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 
workshare discount;
    (2) All data, economic analyses, and other information relied on to 
justify the workshare 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 
workshare discount.
    (i) Whenever the Postal Service establishes a new discount or 
surcharge rate it does not view as creating a workshare discount, it 
must include with its filing:
    (1) An explanation of the basis for its view that the discount or 
surcharge rate is not a workshare discount; and
    (2) A certification that the Postal Service applied accepted 
analytical principles to the discount or surcharge rate.
    (j) Whenever the Postal Service includes a rate incentive with its 
planned rate adjustment, it must include with its filing:
    (1) Whether the rate incentive is being treated under Sec.  
3030.128(f)(2) or under Sec.  3030.128(f)(1) and (g);
    (2) If the Postal Service seeks to include the rate incentive in the 
calculation of the percentage change in rates under Sec.  
3030.128(f)(2), whether the rate incentive is available to all mailers 
equally on the same terms and conditions; and
    (3) If the Postal Service seeks to include the rate incentive in the 
calculation of the percentage change in rates under Sec.  
3030.128(f)(2), sufficient information to demonstrate that the rate 
incentive is a rate of general applicability, which at a minimum 
includes: The terms and conditions of the rate incentive; the factors 
that determine eligibility for the rate incentive; a

[[Page 469]]

statement that affirms that the rate incentive will not benefit a single 
mailer; and a statement that affirms that the rate incentive is not only 
available upon the written agreement of both the Postal Service and a 
mailer, or group of mailers, or a foreign postal operator.
    (k) For each class or product where the attributable cost for that 
class or product exceeded the revenue from that class or product as 
determined by the Commission, a demonstration that the planned rate 
adjustments comply with the requirements in subpart G of this part.



Sec.  3030.124  Docket and notice.

    (a) The Commission will establish a docket for each rate adjustment 
filed by the Postal Service under Sec.  3030.121, promptly publish 
notice of the filing in the Federal Register, and post the filing on its 
website. The notice shall include the items specified in paragraphs (b) 
through (g) of this section.
    (b) The general nature of the proceeding.
    (c) A reference to legal authority under which the proceeding is to 
be conducted.
    (d) A concise description of the planned changes in rates, fees, and 
the Mail Classification Schedule.
    (e) The identification of an officer of the Commission to represent 
the interests of the general public in the docket.
    (f) A period of 30 days from the date of the filing for public 
comment.
    (g) Such other information as the Commission deems appropriate.



Sec.  3030.125  Opportunity for comments.

    Public comments should focus on whether planned rate adjustments 
comport with applicable statutory and regulatory requirements.



Sec.  3030.126  Proceedings.

    (a) If the Commission determines that the rate adjustment filing 
does not substantially comply with the requirements of Sec. Sec.  
3030.122 and 3030.123, the Commission may:
    (1) Inform the Postal Service of the deficiencies and provide an 
opportunity for the Postal Service to take corrective action;
    (2) Toll or otherwise modify the procedural schedule until such time 
the Postal Service takes corrective action;
    (3) Dismiss the rate adjustment filing without prejudice; or
    (4) Take other action as deemed appropriate by the Commission.
    (b) Within 21 days of the conclusion of the public comment period 
the Commission will determine whether the planned rate adjustments are 
consistent with applicable law and issue an order announcing its 
findings. Applicable law means only the applicable requirements of this 
part, Commission directives and orders, and 39 U.S.C. 3626, 3627, and 
3629.
    (c) If the planned rate adjustments are found consistent with 
applicable law, they may take effect.
    (d) If the planned rate adjustments are found inconsistent with 
applicable law, the Commission will notify and require the Postal 
Service to respond to any issues of noncompliance.
    (e) Following the Commission's notice of noncompliance, the Postal 
Service may submit an amended rate adjustment filing that describes the 
modifications to its planned rate adjustments that will bring its rate 
adjustments into compliance. An amended rate adjustment filing shall be 
accompanied by sufficient explanatory information to show that all 
deficiencies identified by the Commission have been corrected.
    (f) The Commission will allow a period of 10 days from the date of 
the amended rate adjustment filing for public comment.
    (g) The Commission will review the amended rate adjustment filing 
together with any comments filed for compliance and issue an order 
announcing its findings within 21 days after the comment period ends.
    (h) If the planned rate adjustments as amended are found to be 
consistent with applicable law, they may take effect. However, no 
amended rate shall take effect until 45 days after the Postal Service 
transmits its rate adjustment filing specifying that rate.
    (i) If the planned rate adjustments in an amended rate adjustment 
filing are found to be inconsistent with applicable law, the Commission 
shall explain

[[Page 470]]

the basis for its determination and suggest an appropriate remedy. 
Noncompliant rates may not go into effect.
    (j) A Commission finding that a planned rate adjustment is in 
compliance with the applicable requirements of this part, Commission 
directives and orders, and 39 U.S.C. 3626, 3627, and 3629 is decided on 
the merits. A Commission finding that a planned rate adjustment does not 
contravene other policies of 39 U.S.C. chapter 36, subchapter I, is 
provisional and subject to subsequent review.



Sec.  3030.127  Maximum rate adjustment authority.

    (a) The maximum rate adjustment authority available to the Postal 
Service for each class of market dominant mail is limited to the sum of 
the percentage points developed in subparts C through E and G through H 
of this part.
    (b) For any product where the attributable cost for that product 
exceeded the revenue from that product as determined by the Commission, 
rates may not be reduced.



Sec.  3030.128  Calculation of percentage change in rates.

    (a) For the purpose of calculating the percentage change in rates, 
the current rate is the rate in effect at the time of the rate 
adjustment filing under Sec.  3030.121 with the following exceptions:
    (1) A seasonal or temporary rate shall be identified and treated as 
a rate cell separate and distinct from the corresponding non-seasonal or 
permanent rate. When used with respect to a seasonal or temporary rate, 
the current rate is the most recent rate in effect for the rate cell, 
regardless of whether the seasonal or temporary rate is available at the 
time of the rate adjustment filing.
    (2) When used with respect to a rate cell that corresponds to a rate 
incentive that was previously excluded from the calculation of the 
percentage change in rates, the current rate is the full undiscounted 
rate in effect for the rate cell at the time of the rate adjustment 
filing, not the discounted rate in effect for the rate cell at such 
time.
    (b) For the purpose of calculating the percentage change in rates, 
the volume for each rate cell shall be obtained from the most recently 
available 12 months of Postal Service billing determinants with the 
following permissible adjustments:
    (1) 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. 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.
    (2) Whenever possible, adjustments shall be based on known mail 
characteristics or historical volume data, as opposed to forecasts of 
mailer behavior.
    (3) For an adjustment accounting for the effects of the deletion of 
a rate cell when an alternate rate cell is not available, the Postal 
Service should adjust the billing determinants associated with the rate 
cell to 0. If the Postal Service does not adjust the billing 
determinants for the rate cell to 0, the Postal Service shall include a 
rationale for its treatment of the rate cell with the information 
required under paragraph (b)(1) of this section.
    (c) For a rate adjustment that involves a rate increase, for each 
class of mail and product within the class, 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. Second, the same set of rate cell 
volumes is multiplied by the corresponding current rate for each cell 
and the resulting products are summed. Third, the percentage change in 
rates is calculated by dividing the results of the first step by the 
results of the second step and subtracting 1 from the quotient. The 
result is expressed as a percentage.
    (d) For rate adjustments that only involve a rate decrease, for each 
class of mail and product within the class, the percentage change in 
rates is calculated by amending the workpapers

[[Page 471]]

attached to the Commission's order relating to the most recent rate 
adjustment filing that involved a rate increase to replace the planned 
rates under the most recent rate adjustment filing that involves a rate 
increase with the corresponding planned rates applicable to the class 
from the rate adjustment filing involving only a rate decrease.
    (e) The formula for calculating the percentage change in rates for a 
class, described in paragraphs (c) and (d) of this section, is as 
follows:
[GRAPHIC] [TIFF OMITTED] TR15DE20.000

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 (for rate adjustment involving a rate 
          increase) or rate from most recent rate adjustment involving a 
          rate increase for rate cell i (for a rate adjustment only 
          involving a rate decrease).
Vi = volume of rate cell i.

    (f)(1) Rate incentives may be excluded from a percentage change in 
rates calculation. If the Postal Service elects to exclude a rate 
incentive from a percentage change in rates calculation, the rate 
incentive shall be treated in the same manner as a rate under a 
negotiated service agreement (as described in paragraph (g) of this 
section).
    (2) A rate incentive may be included in a percentage change in rates 
calculation if it meets the following criteria:
    (i) The rate incentive is in the form of a discount or can be easily 
translated into a discount;
    (ii) Sufficient billing determinants are available for the rate 
incentive to be included in the percentage change in rate calculation 
for the class, which may be adjusted based on known mail characteristics 
or historical volume data (as opposed to forecasts of mailer behavior);
    (iii) The rate incentive is a rate of general applicability; and
    (iv) The rate incentive is made available to all mailers equally on 
the same terms and conditions.
    (g)(1) Mail volumes sent at rates under a negotiated service 
agreement or a rate incentive that is not a rate of general 
applicability are to be included in the calculation of the percentage 
change in rates under this section 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 or the rate incentive that 
is not a rate of general applicability shall be excluded from the 
calculation of the percentage change in rates.
    (2) The Postal Service shall identify and explain all assumptions it 
makes with respect to the treatment of negotiated service agreements and 
rate incentives that are not rates of general applicability in the 
calculation of the percentage change in rates and provide the rationale 
for its assumptions.



Sec.  3030.129  Exceptions for de minimis rate increases.

    (a) The Postal Service may request that the Commission review a de 
minimis rate increase without immediately calculating the maximum rate 
adjustment authority or banking unused rate adjustment authority. For 
the exception in this paragraph (a) to apply, requests to review de 
minimis rate adjustments must be filed separately from any other request 
to review a rate adjustment filing.
    (b) Rate adjustments resulting in rate increases are de minimis if:
    (1) For each affected class, the rate increases do not result in the 
percentage change in rates for the class equaling or exceeding 0.001 
percent; and

[[Page 472]]

    (2) For each affected class, the sum of all rate increases included 
in de minimis rate increases since the most recent rate adjustment 
resulting in a rate increase, or the most recent rate adjustment due to 
extraordinary and exceptional circumstances, that was not a de minimis 
rate increase does not result in the percentage change in rates for the 
class equaling or exceeding 0.001 percent.
    (c) If the rate adjustments are de minimis, no unused rate 
adjustment authority will be added to the schedule of banked rate 
adjustment authority maintained under subpart G of this part as a result 
of the de minimis rate increase.
    (d) If the rate adjustments are de minimis, no rate decreases may be 
taken into account when determining whether rate increases comply with 
paragraphs (b)(1) and (2) of this section.
    (e) In the next rate adjustment filing proposing to increase rates 
for a class that is not a de minimis rate increase:
    (1) The maximum rate adjustment authority shall be calculated as if 
the de minimis rate increase had not been filed; and
    (2) For purposes of calculating the percentage change in rates, the 
current rate shall be the current rate from the de minimis rate 
increase.
    (f) The Postal Service shall file supporting workpapers with each 
request to review a de minimis rate increase that demonstrate that the 
sum of all rate increases included in de minimis rate increases since 
the most recent rate adjustment resulting in a rate increase that was 
not de minimis, or the most recent rate adjustment due to extraordinary 
and exceptional circumstances, does not result in a percentage change in 
rates for the class equaling or exceeding 0.001 percent.
    (g) For any product where the attributable cost for that product 
exceeded the revenue from that product as determined by the Commission, 
rates may not be reduced.



              Subpart C_Consumer Price Index Rate Authority



Sec.  3030.140  Applicability.

    The Postal Service may adjust rates based upon changes in the 
Consumer Price Index for all Urban Consumers (CPI-U) identified in Sec.  
3030.141. If rate adjustment filings involving rate increases are filed 
12 or more months apart, rate adjustments are subject to a full year 
limitation calculated pursuant to Sec.  3030.142. If rate adjustment 
filings involving rate increases are filed less than 12 months apart, 
rate adjustments are subject to a partial year limitation calculated 
pursuant to Sec.  3030.143.



Sec.  3030.141  CPI-U data source.

    The monthly CPI-U values needed for the calculation of rate 
adjustment limitations under this subpart 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.  3030.142  CPI-U rate authority when rate adjustment filings
are 12 or more months apart.

    (a) If a rate adjustment filing involving a rate increase is filed 
12 or more months after the most recent rate adjustment filing involving 
a rate increase, then the calculation of an annual limitation for the 
class (full year 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 of the rate adjustment filing and 
dividing the sum by 12 (Recent Average). Second, 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). Third, the full year 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 a full year limitation for a rate 
adjustment filing filed 12 or more months after the last rate adjustment 
filing is as follows: Full Year Limitation = (Recent Average/Base 
Average)-1.

[[Page 473]]



Sec.  3030.143  CPI-U rate authority when rate adjustment filings
are less than 12 months apart.

    (a) If a rate adjustment filing involving a rate increase is filed 
less than 12 months after the most recent rate adjustment filing 
involving a rate increase, then the annual limitation for the class 
(partial year 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 of the 
rate adjustment filing and dividing the sum by 12 (Recent Average). 
Second, the partial year limitation is then calculated by dividing the 
Recent Average by the Recent Average from the most recent previous rate 
adjustment filing (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 
rate adjustment filing filed less than 12 months after the last rate 
adjustment filing is as follows: Partial Year Limitation = (Recent 
Average/Previous Recent Average)-1.



                    Subpart D_Density Rate Authority



Sec.  3030.160  Applicability.

    (a) This subpart allocates rate authority to address the effects of 
decreases in the density of mail as measured by the sources identified 
in Sec.  3030.161. The calculation of the additional rate authority 
corresponding to the change in density is described in Sec.  3030.162.
    (b) The Postal Service shall file a notice with the Commission by 
December 31 of each year that calculates the amount of density rate 
authority that is eligible to be authorized under this subpart.
    (c) The Commission shall review the Postal Service's notice and 
determine how much, if any, rate authority will be authorized under this 
subpart. Any rate authority allocated under this subpart:
    (1) Shall be made available to the Postal Service as of the date of 
the Commission's determination;
    (2) Must be included in the calculation of the maximum rate 
adjustment authority in the first generally applicable rate adjustment 
filed after the Commission's determination; and
    (3) May be used to generate unused rate authority, if unused, within 
12 months of the Commission's announcement.



Sec.  3030.161  Density calculation data sources.

    (a) The data needed for the calculation of the density rate 
authority in Sec.  3030.162 shall be obtained from the values reported 
by the Postal Service as specified in paragraphs (b) through (d) of this 
section. When both originally filed and annually revised data are 
available, the originally filed data shall be used. When the originally 
filed data are corrected through a refiling or in the Commission's 
Annual Compliance Determination report, the corrected version of the 
originally filed data shall be used.
    (b) Market dominant volume and total volume from the Revenue, 
Pieces, and Weight report, filed by the Postal Service under Sec.  
3050.25 of this chapter;
    (c) Institutional costs and total costs from the Cost and Revenue 
Analysis report, filed with the Postal Service's section 3652 report 
(see Sec.  3050.1(g) of this chapter); and
    (d) The number of delivery points, from the input data used to 
produce the Total Factor Productivity estimates, filed with the Postal 
Service's section 3652 report.



Sec.  3030.162  Calculation of density rate authority.

    (a) Formulas. (1) The formula for calculating the amount of density 
rate authority, in conformance with paragraph (b)(1) of this section, is 
as follows:

[[Page 474]]

[GRAPHIC] [TIFF OMITTED] TR15DE20.001

Where:

T = most recently completed fiscal year.
T-1 = fiscal year prior to fiscal year T.
ICT = institutional cost in fiscal year T.
TCT = total cost in fiscal year T.
%[Delta]D[T-1,T] = Percentage change in density from fiscal 
          year T-1 to fiscal year T.

    (2) The formula for calculating the percentage change in density, in 
conformance with paragraph (b)(2) of this section, is as follows:
[GRAPHIC] [TIFF OMITTED] TR15DE20.002

Where:

T = most recently completed fiscal year.
T-1 = fiscal year prior to fiscal year T.
VT = volume in fiscal year T (either market dominant volume 
          or total volume as discussed in paragraph (b)(2) of this 
          section).
DPT = delivery points in fiscal year T.

    (b) Calculation. (1) The amount of density rate authority available 
under this section shall be calculated in three steps. First, the 
percentage change in density during the most recently completed fiscal 
year shall be calculated using the formula in paragraph (a)(2) of this 
section as described in paragraph (b)(2) of this section. Second, this 
percentage change shall be multiplied by the institutional cost ratio, 
which is calculated as institutional costs for the most recently 
completed fiscal year divided by total costs for that fiscal year. 
Finally, this product shall be multiplied by negative 1 so that declines 
in density correspond to a positive increase in rates. If the result of 
this calculation is less than 0, the amount of additional rate authority 
shall be 0.
    (2) The percentage change in density from the prior fiscal year 
shall be calculated as the ratio of volume to delivery points for the 
most recently completed fiscal year, divided by the same ratio for the 
prior fiscal year, and subtracting 1 from the quotient. The result is 
expressed as a percentage, rounded to three decimal places. To ensure 
that decreases in competitive product volume will not result in the 
Postal Service receiving greater additional rate adjustment authority 
under this subpart, the percentage change in density shall be calculated 
two ways: Using market dominant volume and using total volume. The 
greater of the two results (not using absolute value) shall be used as 
the percentage change in density from the prior fiscal year.



             Subpart E_Retirement Obligation Rate Authority



Sec.  3030.180  Definitions.

    (a) The definitions in paragraphs (b) through (e) of this section 
apply to this subpart.
    (b) Amortization payments mean the amounts that the Postal Service 
is invoiced by the U.S. Office of Personnel Management to provide for 
the liquidation of the specific and supplemental unfunded liabilities by 
statutorily predetermined dates, as described in Sec.  3030.182(a).
    (c) Phase-in period means the period of time spanning the fiscal 
years of issuance of the first five determinations following January 14, 
2021, as specified by the timing provisions in Sec.  3030.181.
    (d) Required minimum remittance means the minimum amount the Postal 
Service is required to remit during a

[[Page 475]]

particular fiscal year, as calculated under Sec.  3030.184.
    (e) Revenue collected under this subpart means the amount of revenue 
collected during a fiscal year as a result of all previous rate 
increases authorized under this subpart, as calculated under Sec.  
3030.184.



Sec.  3030.181  Applicability.

    (a) This subpart allocates additional rate authority to provide the 
Postal Service with revenue for remittance towards the statutorily 
mandated amortization payments for supplemental and unfunded liabilities 
identified in Sec.  3030.182. As described in Sec.  3030.184, for 
retirement obligation rate authority to be made available, the Postal 
Service must annually remit towards these amortization payments all 
revenue collected under this subpart previously. The full retirement 
obligation rate authority, calculated as described in Sec.  3030.183, 
shall be phased in over 5 fiscal years, taking into account changes in 
volume during the phase-in period. If combined with an equal rate 
increase on Competitive products, the compounded rate increase resulting 
from retirement obligation rate authority is calculated to generate 
sufficient additional revenue at the end of the phase-in period to 
permit the Postal Service to remit the entire invoiced amount of its 
amortization payments.
    (b) Until the conclusion of the phase-in period, the Postal Service 
shall file a notice with the Commission by December 31 of each year that 
calculates the amount of retirement obligation rate authority that is 
eligible to be authorized under this subpart.
    (c) The Commission shall review the Postal Service's notice and 
determine how much, if any, rate authority will be authorized under this 
subpart. Any rate authority allocated under this subpart:
    (1) Shall be made available to the Postal Service as of the date of 
the Commission's determination;
    (2) Must be included in the calculation of the maximum rate 
adjustment authority in the first generally applicable rate adjustment 
filed after the Commission's determination;
    (3) Shall lapse if not used in the first generally applicable rate 
adjustment filed after the Commission's determination;
    (4) Shall lapse if unused, within 12 months of the Commission's 
determination, however this paragraph (c)(4) shall not prohibit the 
Postal Service from making a stand-alone adjustment to one or two 
generally applicable rate cells, if such a case were to be followed by a 
broader rate adjustment in the class later in the same fiscal year; and
    (5) May not be used to generate unused rate authority, nor shall it 
affect existing banked rate authority.



Sec.  3030.182  Retirement obligation data sources.

    (a) The amounts of the amortization payments needed for the 
calculation of retirement obligation rate adjustment authority in Sec.  
3030.183 shall be obtained from notifications to the Postal Service by 
the Office of Personnel Management of annual determinations of the 
funding amounts specific to payments at the end of each fiscal year for 
Retiree Health Benefits as computed under 5 U.S.C. 8909a(d)(2)(B) and 
(d)(3)(B)(ii); the Civil Service Retirement System as computed under 5 
U.S.C. 8348(h)(2)(B); and the Federal Employees Retirement System as 
computed under 5 U.S.C. 8423(b)(1)(B), (b)(2), and (b)(3)(B), filed with 
the Postal Service's section 3652 report.
    (b) The values for market dominant revenue, total revenue and market 
dominant volumes needed for the calculation of retirement obligation 
rate authority in Sec.  3030.183 shall be obtained from values reported 
in the Revenue, Pieces, and Weight report, filed by the Postal Service 
under Sec.  3050.25 of this chapter.
    (c) The values for additional rate authority previously provided 
under this subpart, if any, needed for the calculation of retirement 
obligation rate authority in Sec.  3030.183 and the calculation of 
required minimum remittances under Sec.  3030.184 shall be obtained from 
the Commission's prior determinations.



Sec.  3030.183  Calculation of retirement obligation rate authority.

    (a) Formulas. (1) The formula for calculating the amount of 
retirement obligation rate authority available under

[[Page 476]]

this subpart, described in paragraph (b)(1) of this section, is as 
follows:
[GRAPHIC] [TIFF OMITTED] TR15DE20.003

Where:

T = most recently completed fiscal year.
APT = total amortization payment for fiscal year T.
TRT = total revenue in fiscal year T.
PARAT = previously authorized retirement obligation rate 
          authority, compounded through fiscal year T, expressed as a 
          proportion of the market dominant rate base and calculated 
          using the formula in paragraph (a)(2) of this section as 
          described in paragraph (b)(2) of this section.
N = number of previously issued determinations in which retirement 
          obligation rate authority was made available under this 
          subpart.

    (2) The formula for calculating the amount of previously authorized 
retirement obligation rate authority through fiscal year T, described in 
paragraph (b)(2) of this section, is as follows:
[GRAPHIC] [TIFF OMITTED] TR15DE20.004

Where:

T = most recently completed fiscal year.
rt = retirement obligation rate authority authorized in 
          fiscal year T.
N = number of previously issued determinations in which retirement 
          obligation rate authority was made available under this 
          subpart.

    (b) Calculations. (1) The amount of retirement obligation rate 
authority available for a fiscal year shall be calculated in four steps. 
First, the ratio of the total amortization payment for the fiscal year 
under review to the total revenue in the fiscal year under review shall 
be added to 1. This sum represents the factor by which an equal increase 
in market dominant and competitive rates in the fiscal year under review 
would generate sufficient additional revenue to make the full 
amortization payment. It does not account, however, for any previous 
rate authority authorized under this subpart. The second step is 
therefore to subtract the proportion of the market dominant rate base 
resulting from previously authorized retirement obligation rate 
authority. That proportion is calculated using the formula in paragraph 
(a)(2) of this section as described in paragraph (b)(2) of this section. 
Third, to amortize the resulting amount of retirement obligation rate 
authority over the remainder of the phase-in period, the difference 
shall be raised to the power of the inverse of the number of 
determinations remaining in the phase-in period, including the current 
determination. Finally, 1 shall be subtracted from the result to convert 
from a proportional change in rates to a percentage of rate adjustment 
authority.
    (2) The amount of previously authorized retirement obligation rate 
authority shall be calculated in two steps. First, the sums of 1 and the 
amount of retirement obligation rate authority authorized in each of the 
previous fiscal years shall be multiplied together. This product 
represents the compounded amount of such rate authority, expressed as a 
net rate increase. To

[[Page 477]]

express this product as a proportion of the market dominant rate base, 
the second step is to subtract the inverse of this product from 1.



Sec.  3030.184  Required minimum remittances.

    (a) Minimum remittances. During each fiscal year subsequent to 
January 14, 2021, the Postal Service shall remit towards the liabilities 
identified in Sec.  3030.182 an amount equal to or greater than the 
amount of revenue collected as a result of all previous rate increases 
under this subpart during the previous fiscal year, as calculated using 
the formulas in paragraph (b) of this section, as described in paragraph 
(c) of this section.
    (b) Formulas. (1) The formula for calculating the amount of revenue 
collected under this subpart during a fiscal year, described in 
paragraph (c)(1) of this section, is as follows:
[GRAPHIC] [TIFF OMITTED] TR15DE20.005

Where:

T = most recently completed fiscal year.
MDRT = market dominant revenue in fiscal year T.
N = number of previously issued determinations in which retirement 
          obligation rate authority was made available under this 
          subpart.
rt = retirement obligation rate authority authorized in 
          fiscal year t.
pt = prorated fraction of rt that was in effect 
          during fiscal year T, calculated using the formula in 
          paragraph (b)(2) of this section, as described in paragraph 
          (c)(2) of this section.

    (2) The formula for calculating the prorated fraction of retirement 
obligation rate authority authorized in a particular fiscal year t that 
was in effect during the most recently completed fiscal year, described 
in paragraph (c)(2) of this section, is as follows:
[GRAPHIC] [TIFF OMITTED] TR15DE20.006

Where:
T = most recently completed fiscal year.
rt = retirement obligation rate authority authorized under 
          this subpart in fiscal year t.
Q = the number of the quarter during the fiscal year of the effective 
          date of the price increase including retirement obligation 
          rate authority made available under this subpart.
EQ = number of days in quarter Q subsequent to and including 
          the effective date of the price increase.
DQ = total number of days in quarter Q.
QMDVQ = market dominant volume in quarter Q.
MDVT = market dominant volume in fiscal year T.

    (c) Calculations. (1) The amount of revenue collected under this 
subpart during a fiscal year, as calculated by the formula in paragraph 
(b)(1) of this section, shall be calculated in three steps. First, the 
sums of 1 and the amount of retirement obligation rate authority made 
available under this

[[Page 478]]

subpart during each previous fiscal year--prorated to account for mid-
year price increases as described in paragraph (b)(2) of this section--
shall be multiplied together. This product represents the proportion by 
which prices were higher during the most recently completed fiscal year 
as a result of retirement obligation rate authority. Second, to express 
this net price increase as a proportion of market dominant revenue, the 
inverse of this product shall be subtracted from 1. Finally, the result 
shall be multiplied by market dominant revenue for the fiscal year to 
change the proportion into a dollar amount.
    (2)(i) The prorated fraction of retirement obligation rate authority 
authorized in a particular fiscal year that was in effect during the 
most recently completed fiscal year, as calculated by the formula in 
paragraph (b)(2) of this section, shall be a piecewise function of three 
parts. First, if the retirement obligation rate authority authorized in 
a particular year was not in effect during the most recently completed 
fiscal year, the prorated fraction shall be 0. Second, if the retirement 
obligation rate authority authorized in a particular year was in effect 
during the entirety of the most recently completed fiscal year, the 
prorated fraction shall be 1. Finally, if the retirement obligation rate 
authority authorized in a particular fiscal year was used to raise 
prices during the most recently completed fiscal year, the prorated 
fraction shall be the proportion of volume sent during the fiscal year 
after that rate increase went into effect.
    (ii) The proportion in paragraph (c)(2)(i) of this section shall be 
calculated in four steps. First, the number of days of the fiscal 
quarter after and including the effective date of the price adjustment 
including the retirement obligation rate authority shall be divided by 
the total number of days in that fiscal quarter. This quotient 
determines the proportion of days in that quarter in which the higher 
rates were in effect. Second, that quotient shall be multiplied by the 
market dominant volume from that fiscal quarter to determine the amount 
of volume during the quarter receiving the higher rates. Third, that 
product shall be added to the market dominant volume from any subsequent 
quarters of the fiscal year because the volume in those quarters was 
also sent under the higher rates. Finally, this sum shall be divided by 
the total market dominant volume from the fiscal year to determine the 
proportion of annual volume sent after the rate increase went into 
effect.



Sec.  3030.185  Forfeiture.

    (a) If any of the circumstances described in paragraphs (b) through 
(d) of this section occur, the Postal Service shall not be eligible for 
future retirement obligation rate authority under this subpart, and the 
Commission may commence additional proceedings as appropriate.
    (b) If, subsequent to March 1, 2021, and prior to the end of the 
phase-in period, the Postal Service fails to timely file the notice 
required under Sec.  3030.181(b);
    (c) In any fiscal year in which retirement obligation rate authority 
was determined to be available under this subpart, the Postal Service 
fails to timely file under Sec.  3030.122 for a rate increase including 
the full amount of retirement obligation rate authority authorized under 
this subpart during that fiscal year, to take effect prior to the end of 
that fiscal year; or
    (d) In any fiscal year including or subsequent to the first fiscal 
year in which rate authority under this subpart was used to adjust 
market dominant rates, the Postal Service's total payments towards the 
supplemental and unfunded liabilities identified in Sec.  3030.182 are 
not equal to or greater than the minimum remittance required for that 
fiscal year under Sec.  3030.184(a).

Subpart F--[Reserved]



             Subpart G_Non-compensatory Classes or Products



Sec.  3030.220  Applicability.

    This subpart is applicable to a class or product where the 
attributable cost for that class or product exceeded the revenue from 
that class or product as determined by the Commission. Section 3030.221 
is applicable where the attributable cost for a product within a

[[Page 479]]

class exceeded the revenue from that particular product where the 
product is classified within a class where the overall class revenue 
exceeded the attributable cost for that class. Section 3030.222 is 
applicable where the attributable cost for an entire class exceeded the 
revenue from that class.



Sec.  3030.221  Individual product requirement.

    Whenever the Postal Service files a rate adjustment filing affecting 
a class of mail which includes a product where the attributable cost for 
that product exceeded the revenue from that product, as determined by 
the Commission, the Postal Service shall increase the rates for each 
non-compensatory product by a minimum of 2 percentage points above the 
percentage increase for that class. This section does not create 
additional rate authority applicable to any class of mail. This section 
only applies to products classified within classes for which the overall 
class revenue exceeded the attributable cost for that class. This 
section does not apply to a non-compensatory product for which the 
Commission has determined that the Postal Service lacks independent 
authority to set rates (such as rates set by treaty obligation).



Sec.  3030.222  Class requirement and additional class rate authority.

    (a) This section provides 2 percentage points of additional rate 
authority for any class of mail where the attributable cost for that 
class exceeded the revenue from that class as determined by the 
Commission. This additional rate authority is optional and may be used 
at the Postal Service's discretion.
    (b) The Commission shall announce how much, if any, rate authority 
will be authorized under this subpart. Any rate authority allocated 
under this subpart:
    (1) Shall be made available to the Postal Service as of the date of 
the Commission's announcement;
    (2) Must be included in the calculation of the maximum rate 
adjustment authority change in rates in the first generally applicable 
rate adjustment filed after the Commission's announcement; and
    (3) May be used to generate unused rate authority, if unused, within 
12 months of the Commission's announcement.



    Subpart H_Accumulation of Unused and Disbursement of Banked Rate 
                          Adjustment Authority



Sec.  3030.240  General.

    Unless a specific exception applies, unused rate adjustment 
authority, on a class-by-class basis, shall be calculated for each rate 
adjustment filing. Unused rate adjustment authority shall be added to 
the schedule of banked rate authority in each instance, and be available 
for application to rate adjustments pursuant to the requirements of this 
subpart.



Sec.  3030.241  Schedule of banked rate adjustment authority.

    Upon the establishment of unused rate adjustment authority, the 
Postal Service shall devise and maintain a schedule that tracks the 
establishment and subsequent use of banked rate authority on a class-by-
class basis. At a minimum, the schedule must track the amount of banked 
rate authority available immediately prior to the rate adjustment filing 
and the amount of banked rate authority available upon acceptance of the 
rates included in the rate adjustment filing. It shall also track all 
changes to the schedule, including the docket numbers of Commission 
decisions affecting the schedule, the dates and amounts that any rate 
authority was generated or subsequently expended, and the expiration 
dates of all rate adjustment authority. The schedule shall be included 
with any rate adjustment filing purporting to modify the amount of 
banked rate adjustment authority.



Sec.  3030.242  Calculation of unused rate adjustment authority for
rate adjustments that involve a rate increase which are filed
12 months apart or less.

    (a) When rate adjustment filings that involve a rate increase are 
filed 12 months apart or less, unused rate adjustment authority for a 
class is equal

[[Page 480]]

to the difference between the maximum rate adjustment authority as 
summarized by Sec.  3030.127 and calculated pursuant to subparts C 
through G of this part and this subpart, as appropriate, and the 
percentage change in rates for the class calculated pursuant to Sec.  
3030.128, subject to the limitations described in paragraph (b) of this 
section.
    (b) For rate adjustment filings that involve a rate increase, unused 
rate adjustment authority cannot exceed the unused portion of rate 
authority calculated pursuant to subparts C and D of this part and Sec.  
3030.222.



Sec.  3030.243  Calculation of unused rate adjustment authority for
rate adjustments that involve a rate increase which are filed more 
than 12 months apart.

    (a) When rate adjustment filings that involve a rate increase are 
filed more than 12 months apart, any interim rate adjustment authority 
must first be added to the schedule of banked rate authority before the 
unused rate adjustment authority is calculated.
    (b) Interim rate adjustment authority for a class is equal to the 
Base Average applicable to the second rate adjustment filing (as 
developed pursuant to Sec.  3030.142) divided by the Recent Average 
utilized in the first rate adjustment filing (as developed pursuant to 
Sec.  3030.142) and subtracting 1 from the quotient. The result is 
expressed as a percentage and immediately added to the schedule of 
banked rate authority as of the date the rate adjustment filing is 
filed. If the Commission announces that rate authority calculated 
pursuant to subpart D of this part or Sec.  3030.222 are available and 
no rate adjustment is filed before the Commission subsequently announces 
that further rate authority calculated pursuant to subpart D of this 
part or Sec.  3030.222 are available, then the amount of rate authority 
calculated pursuant to subpart D of this part and Sec.  3030.222 in the 
first Commission announcement shall be added to the interim rate 
adjustment authority.
    (c) Unused rate adjustment authority for a class is equal to the 
difference between the maximum rate adjustment authority as summarized 
by Sec.  3030.127 and calculated pursuant to subparts C through G of 
this part and this subpart, as appropriate, and the percentage change in 
rates for the class calculated pursuant to Sec.  3030.128, subject to 
the limitations described in paragraph (d) of this section.
    (d) For rate adjustment filings that involve a rate increase, unused 
rate adjustment authority cannot exceed the unused portion of rate 
authority calculated pursuant to subparts C and D of this part and Sec.  
3030.222.



Sec.  3030.244  Calculation of unused rate adjustment authority for
rate adjustments that only include rate decreases.

    (a) For rate adjustment filings that only include rate decreases, 
unused rate adjustment authority for a class is calculated in two steps. 
First, the difference between the maximum rate adjustment authority as 
summarized by Sec.  3030.127 and calculated pursuant to subparts C 
through G of this part and this subpart, as appropriate, for the most 
recent rate adjustment that involves a rate increase and the percentage 
change in rates for the class calculated pursuant to Sec.  3030.128(d) 
is calculated. Second, the unused rate adjustment authority generated in 
the most recent rate adjustment that involves a rate increase is 
subtracted from that result.
    (b) Unused rate adjustment authority generated under paragraph (a) 
of this section for a class shall be added to the unused rate adjustment 
authority generated in the most recent rate adjustment that involves a 
rate increase on the schedule maintained under Sec.  3030.241. For 
purposes of this section, the unused rate adjustment authority generated 
under paragraph (a) of this section for a class shall be deemed to have 
been added to the schedule maintained under Sec.  3030.241 on the same 
date as the most recent rate adjustment filing that involves a rate 
increase.
    (c) For rate adjustment filings that only include rate decreases, 
the sum of unused rate adjustment authority generated under paragraph 
(a) of this section and the unused rate adjustment authority generated 
in the most recent rate adjustment that involves a rate

[[Page 481]]

increase cannot exceed the unused portion of rate adjustment authority 
calculated pursuant to subparts C and D of this part and Sec.  3030.222 
in the most recent rate adjustment that involves a rate increase.
    (d) Unused rate adjustment authority generated under paragraph (a) 
of this section shall be subject to the limitation under Sec.  3030.245, 
regardless of whether it is used alone or in combination with other 
existing unused rate adjustment authority.
    (e) For rate adjustment filings that only include rate decreases, 
unused rate adjustment authority generated under this section lapses 5 
years from the date of filing of the most recent rate adjustment filing 
that involves a rate increase.
    (f) A rate adjustment filing that only includes rate decreases that 
is filed immediately after a rate adjustment due to extraordinary or 
exceptional circumstances (i.e., without an intervening rate adjustment 
involving a rate increase) may not generate unused rate adjustment 
authority.



Sec.  3030.245  Application of banked rate authority.

    (a) Banked rate authority may be applied to any planned rate 
adjustment subject to the limitations appearing in paragraphs (b) 
through (f) of this section.
    (b) Banked rate authority may only be applied to a proposal to 
adjust rates after applying rate authority as described in subparts C 
through F of this part and in Sec.  3030.222.
    (c) A maximum of 2 percentage points of banked rate authority may be 
applied to a rate adjustment for any class in any 12-month period. If 
banked rate authority is used, it shall be subtracted from the schedule 
of banked rate adjustment authority as of the date of the final order 
accepting the rates.
    (d) Subject to paragraphs (b) and (c) of this section, interim rate 
adjustment authority may be used to make a rate adjustment pursuant to 
the rate adjustment filing that led to its calculation. If interim rate 
adjustment authority is used to make such a rate adjustment, the interim 
rate adjustment authority generated pursuant to the rate adjustment 
filing shall first be added to the schedule of banked rate adjustment 
authority pursuant to Sec.  3030.241 as the most recent entry. Then, any 
interim rate adjustment authority used in accordance with this paragraph 
(d) shall be subtracted from the existing banked rate adjustment 
authority using a first-in, first-out (FIFO) method, beginning 5 years 
before the instant rate adjustment filing.
    (e) Banked rate authority for a class must be applied, using a 
first-in, first-out (FIFO) method, beginning 5 years before the instant 
rate adjustment filing.
    (f) Banked rate adjustment authority calculated under this section 
shall lapse 5 years from the date of the rate adjustment filing leading 
to its calculation.



    Subpart I_Rate Adjustments Due to Extraordinary and Exceptional 
                              Circumstances



Sec.  3030.260  General.

    The Postal Service may request to adjust rates for market dominant 
products due to extraordinary or exceptional circumstances pursuant to 
39 U.S.C. 3622(d)(1)(E). The rate adjustments are not subject to rate 
adjustment limitations or the restrictions on the use of unused rate 
adjustment authority. The rate adjustment request may not include 
material classification changes. The request is subject to public 
participation and Commission review within 90 days.



Sec.  3030.261  Contents of a rate adjustment filing.

    (a) Each exigent request shall include the items specified in 
paragraphs (b) through (i) of this section.
    (b) A schedule of the planned rates.
    (c) Calculations quantifying the increase for each affected product 
and class.
    (d) A full discussion of the extraordinary or exceptional 
circumstances giving rise to the request, and a complete explanation of 
how both the requested overall increase and the specific rate 
adjustments requested relate to those circumstances.
    (e) A full discussion of why the requested rate adjustments are 
necessary

[[Page 482]]

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.
    (f) A full discussion of why the requested rate adjustments are 
reasonable and equitable as among types of users of market dominant 
products.
    (g) An explanation of when, or under what circumstances, the Postal 
Service expects to be able to rescind the exigent rate adjustments in 
whole or in part.
    (h) An analysis of the circumstances giving rise to the exigent 
request, which should, if applicable, include a discussion of whether 
the circumstances were foreseeable or could have been avoided by 
reasonable prior action.
    (i) Such other information as the Postal Service believes will 
assist the Commission in issuing a timely determination of whether the 
requested rate adjustments are consistent with applicable statutory 
policies.



Sec.  3030.262  Supplemental information.

    The Commission may require the Postal Service to provide 
clarification of its request or to provide additional information in 
order to gain a better understanding of the circumstances leading to the 
request or the justification for the specific rate adjustments 
requested. The Postal Service shall include within its request the 
identification of one or more knowledgeable Postal Service official(s) 
who will be available to provide prompt responses to Commission requests 
for clarification or additional information.



Sec.  3030.263  Docket and notice.

    (a) The Commission will establish a docket for each request to 
adjust rates due to extraordinary or exceptional circumstances, publish 
notice of the request in the Federal Register, and post the filing on 
its website. The notice shall include the items specified in paragraphs 
(b) through (g) of this section.
    (b) The general nature of the proceeding.
    (c) A reference to legal authority under which the proceeding is to 
be conducted.
    (d) A concise description of the proposals for changes in rates, 
fees, and the Mail Classification Schedule.
    (e) The identification of an officer of the Commission to represent 
the interests of the general public in the docket.
    (f) A specified period for public comment.
    (g) Such other information as the Commission deems appropriate.



Sec.  3030.264  Public hearing.

    (a) The Commission will hold a public hearing on the Postal 
Service's 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 supporting information.
    (b) 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.  3010.120 of this chapter, and will become part of the 
administrative record of the proceeding.
    (c) 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.
    (d) If the Postal Service is unable to provide adequate explanations 
during the public hearing, supplementary written or oral responses may 
be required.



Sec.  3030.265  Opportunity for comments.

    (a) 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 
adjustment;
    (2) The adequacy of the justification for adjustments in the amounts 
requested by the Postal Service; and

[[Page 483]]

    (3) Whether the specific rate adjustments requested are reasonable 
and equitable.
    (b) An opportunity to submit written reply comments will be given to 
the Postal Service and other interested persons.



Sec.  3030.266  Deadline for Commission decision.

    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. The Commission will act 
expeditiously on the Postal Service's request, taking into account all 
written comments. In every instance, a Commission decision will be 
issued within 90 days of the filing of an exigent request.



Sec.  3030.267  Treatment of banked rate adjustment authority.

    (a) Each request will identify the banked rate adjustment authority 
available as of the date of the request for each class of mail and the 
available amount for each of the preceding 5 years.
    (b) Rate adjustments may use existing banked rate adjustment 
authority in amounts greater than the limitations described in Sec.  
3030.245.
    (c) Increases will exhaust all banked rate adjustment authority for 
each class of mail before imposing additional rate adjustments in excess 
of the maximum rate adjustment for any class of mail.



                      Subpart J_Workshare Discounts



Sec.  3030.280  Applicability.

    This subpart is applicable whenever the Postal Service proposes to 
adjust a rate associated with a workshare discount. For the purpose of 
this subpart, the cost avoided by the Postal Service for not providing 
the applicable service refers to the amount identified in the most 
recently applicable Annual Compliance Determination, unless the 
Commission otherwise provides.



Sec.  3030.281  Calculation of passthroughs for workshare discounts.

    For the purpose of this subpart, the percentage passthrough for any 
workshare discount shall be calculated by dividing the workshare 
discount by the cost avoided by the Postal Service for not providing the 
applicable service and expressing the result as a percentage.



Sec.  3030.282  Increased pricing efficiency.

    (a) For a workshare discount that is equal to the cost avoided by 
the Postal Service for not providing the applicable service, no proposal 
to adjust a rate associated with that workshare discount may change the 
size of the discount.
    (b) For a workshare discount that exceeds the cost avoided by the 
Postal Service for not providing the applicable service, no proposal to 
adjust a rate associated with that workshare discount may increase the 
size of the discount.
    (c) For a workshare discount that is less than the cost avoided by 
the Postal Service for not providing the applicable service, no proposal 
to adjust a rate associated with that workshare discount may decrease 
the size of the discount.



Sec.  3030.283  Limitations on excessive discounts.

    (a) No proposal to adjust a rate may set a workshare discount that 
would exceed the cost avoided by the Postal Service for not providing 
the applicable service, unless at least one of the following reasons 
provided in paragraphs (b) through (e) of this section applies.
    (b) The proposed workshare discount is associated with a new postal 
service, a change to an existing postal service, or a new workshare 
initiative.
    (c) The proposed workshare discount is a minimum of 20 percent less 
than the existing workshare discount.
    (d) The proposed workshare discount is set in accordance with a 
Commission order issued pursuant to Sec.  3030.286.
    (e) The proposed workshare discount is provided in connection with a 
subclass of mail, consisting exclusively of mail matter of educational, 
cultural, scientific, or informational value (39

[[Page 484]]

U.S.C. 3622(e)(2)(C)) and is in compliance with Sec.  3030.285(c).



Sec.  3030.284  Limitations on discounts below avoided cost.

    (a) No proposal to adjust a rate may set a workshare discount that 
would be below the cost avoided by the Postal Service for not providing 
the applicable service, unless at least one of the following reasons 
provided in paragraphs (b) through (e) of this section applies.
    (b) The proposed workshare discount is associated with a new postal 
service, a change to an existing postal service, or a new workshare 
initiative.
    (c) The proposed workshare discount is a minimum of 20 percent more 
than the existing workshare discount.
    (d) The proposed workshare discount is set in accordance with a 
Commission order issued pursuant to Sec.  3030.286.
    (e) The percentage passthrough for the proposed workshare discount 
is at least 85 percent.



Sec.  3030.285  Proposal to adjust a rate associated with a workshare
discount.

    (a) Each proposal to adjust a rate associated with a workshare 
discount shall be supported by substantial evidence and demonstrate that 
each proposed workshare discount has been set in compliance with 39 
U.S.C. 3622(e) and this subpart. Substantial evidence means such 
relevant evidence as a reasonable mind might accept as adequate to 
support a conclusion.
    (b) For each proposed workshare discount that would exceed the cost 
avoided by the Postal Service for not providing the applicable service, 
the rate adjustment filing shall indicate the applicable paragraph of 
Sec.  3030.283 under which the Postal Service is justifying the 
excessive discount and include any relevant analysis supporting the 
claim.
    (c) For each proposed workshare discount that is provided in 
connection with a subclass of mail, consisting exclusively of mail 
matter of educational, cultural, scientific, or informational value (39 
U.S.C. 3622(e)(2)(C)), would exceed the cost avoided by the Postal 
Service for not providing the applicable service, and would not be set 
in accordance with at least one specific provision appearing in Sec.  
3030.283(b) through (d), the rate adjustment filing shall provide the 
information specified in paragraphs (c)(1) through (3) of this section:
    (1) The number of mail owners receiving the workshare discount 
during the most recent full fiscal year and for the current fiscal year 
to date;
    (2) The number of mail owners for the applicable product or products 
in the most recent full fiscal year and for the current fiscal year to 
date; and
    (3) An explanation of how the proposed workshare discount would 
promote the public interest, even though the proposed workshare discount 
would substantially exceed the cost avoided by the Postal Service.
    (d) For each proposed workshare discount that would be below the 
cost avoided by the Postal Service for not providing the applicable 
service, the rate adjustment filing shall indicate the applicable 
paragraph of Sec.  3030.284 under which the Postal Service is justifying 
the discount that is below the cost avoided and include any relevant 
analysis supporting the claim.



Sec.  3030.286  Application for waiver.

    (a) In every instance in which the Postal Service determines to 
adjust a rate associated with a workshare discount in a manner that does 
not comply with the limitations imposed by Sec. Sec.  3030.283 through 
3030.284, the Postal Service shall file an application for waiver. The 
Postal Service must file any application for waiver at least 60 days 
prior to filing the proposal to adjust a rate associated with the 
applicable workshare discount. In its application for waiver, the Postal 
Service shall indicate the approximate filing date for its next rate 
adjustment filing.
    (b) The application for waiver shall be supported by a preponderance 
of the evidence and demonstrate that a waiver from the limitations 
imposed by Sec. Sec.  3030.283 through 3030.284 should be granted. 
Preponderance of the evidence means proof by information that, compared 
with that opposing it, leads to the conclusion that the fact at issue is 
more probably true than not.

[[Page 485]]

    (c) The application for waiver shall include a specific and detailed 
statement signed by one or more knowledgeable Postal Service official(s) 
who sponsors the application and attests to the accuracy of the 
information contained within the statement. The statement shall set 
forth the information specified in paragraphs (c)(1) through (8) of this 
section, as applicable to the specific workshare discount for which a 
waiver is sought:
    (1) The reason(s) why a waiver is alleged to be necessary (with 
justification thereof), including all relevant supporting analysis and 
all assumptions relied upon.
    (2) The length of time for which a waiver is alleged to be necessary 
(with justification thereof).
    (3) For each subsequent rate adjustment filing planned to occur 
during the length of time for which a waiver is sought, a representation 
of the proposed minimum amount of the change to the workshare discount.
    (4) For a claim that the amount of the workshare discount exceeding 
the cost avoided by the Postal Service for not providing the applicable 
service is necessary in order to mitigate rate shock (39 U.S.C. 
3622(e)(2)(B)), the Postal Service shall provide an explanation 
addressing all of the items specified in paragraphs (c)(4)(i) through 
(iii) of this section:
    (i) A description of the customers that the Postal Service claims 
would be adversely affected.
    (ii) Prices and volumes for the workshare discount at issue (the 
benchmark and workshared mail category) for the last 10 years.
    (iii) Quantitative analysis or, if not available, qualitative 
analysis indicating the nature and extent of the likely harm to the 
customers that would result from setting the workshare discount in 
compliance with Sec.  3030.283(c).
    (5) For a claim that setting an excessive or low workshare discount 
closer or equal to the cost avoided by the Postal Service for not 
providing the applicable service would impede the efficient operation of 
the Postal Service, the Postal Service shall provide an explanation 
addressing all of the items specified in paragraphs (c)(5)(i) through 
(iii) of this section:
    (i) A description of the operational strategy at issue.
    (ii) Quantitative analysis or, if not available, qualitative 
analysis indicating how the workshare discount at issue is related to 
that operational strategy.
    (iii) How setting the workshare discount in compliance with Sec.  
3030.283(c) or Sec.  3030.284(c), whichever is applicable, would impede 
that operational strategy.
    (6) For a claim that reducing or eliminating the excessive workshare 
discount would lead to a loss of volume in the affected category of mail 
and reduce the aggregate contribution to the Postal Service's 
institutional costs from the mail that is subject to the discount (39 
U.S.C. 3622(e)(3)(A)), the Postal Service shall provide an explanation 
addressing all of the items specified in paragraphs (c)(6)(i) through 
(iii) of this section:
    (i) A description of the affected category of mail.
    (ii) Quantitative analysis or, if not available, qualitative 
analysis indicating the expected loss of volume and reduced contribution 
that is claimed would result from reducing or eliminating the excessive 
workshare discount.
    (iii) How setting the excessive workshare discount in compliance 
with Sec.  3030.283(c) would lead to the expected loss of volume and 
reduced contribution.
    (7) For a claim that reducing or eliminating the excessive workshare 
discount would result in a further increase in the rates paid by mailers 
not able to take advantage of the workshare discount (39 U.S.C. 
3622(e)(3)(B)), or a claim that increasing or eliminating a low 
workshare discount for a non-compensatory product would result in a 
further increase in the rates paid by mailers not able to take advantage 
of the workshare discount, the Postal Service shall provide an 
explanation addressing all of the items specified in paragraphs 
(c)(7)(i) through (iii) of this section:
    (i) A description of the mailers not able to take advantage of the 
discount.

[[Page 486]]

    (ii) Quantitative analysis or, if not available, qualitative 
analysis indicating the expected size of the rate increase that is 
claimed would result in the rates paid by mailers not able to take 
advantage of the discount.
    (iii) How setting the excessive workshare discount in compliance 
with Sec.  3030.283(c) or the low workshare discount for a non-
compensatory product in compliance with Sec.  3030.284(c) or (e), 
whichever is applicable, would result in a further increase in the rates 
paid by mailers not able to take advantage of the discount.
    (8) Any other relevant factors or reasons to support the application 
for waiver.
    (d) Unless the Commission otherwise provides, commenters will be 
given at least 7 calendar days to respond to the application for waiver 
after it has been filed by the Postal Service.
    (e) To better evaluate the waiver application, the Commission may, 
on its own behalf or by request of any interested person, order the 
Postal Service to provide experts on the subject matter of the waiver 
application to participate in technical conferences, prepare statements 
clarifying or supplementing their views, or answer questions posed by 
the Commission or its representatives.
    (f) For a proposed workshare discount that would exceed the cost 
avoided by the Postal Service for not providing the applicable service, 
the application for waiver shall be granted only if at least one 
provision appearing in 39 U.S.C. 3622(e)(2)(A) through (e)(2)(D) or 39 
U.S.C. 3622(e)(3)(A) through (e)(3)(B) is determined to apply.
    (g) For a proposed workshare discount that would be set below the 
cost avoided by the Postal Service for not providing the applicable 
service, the application for waiver shall be granted only if setting the 
workshare discount closer or equal to the cost avoided by the Postal 
Service for not providing the applicable service would impede the 
efficient operation of the Postal Service or if increasing or 
eliminating a low workshare discount for a non-compensatory product 
would result in a further increase in the rates paid by mailers not able 
to take advantage of the workshare discount.
    (h) The Commission will issue an order announcing, at a minimum, 
whether the requested waiver will be granted or denied no later than 21 
days following the close of any comment period(s). An order granting the 
application for waiver shall specify all conditions upon which the 
waiver is granted, including the date upon which the waiver shall 
expire.



PART 3035_REGULATION OF RATES FOR COMPETITIVE PRODUCTS--Table of Contents



Sec.
3035.101 Scope.
3035.102 Changes in rates of general applicability.
3035.103 Decrease in rates of general applicability.
3035.104 Change in class of general applicability.
3035.105 Rate or class not of general applicability.
3035.106 Sufficiency of information.
3035.107 Standards for compliance.

    Authority: 39 U.S.C. 503; 3633.

    Source: 72 FR 63697, Nov. 9, 2007, unless otherwise noted. 
Redesignated at 85 FR 9615, Feb. 19, 2020.



Sec.  3035.101  Scope.

    Rules in this part are applicable to competitive products.

[72 FR 63697, Nov. 9, 2007. Redesignated at 85 FR 9615, Feb. 19, 2020]



Sec.  3035.102  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.

[72 FR 63697, Nov. 9, 2007. Redesignated at 85 FR 9615, Feb. 19, 2020]

[[Page 487]]



Sec.  3035.103  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).

[72 FR 63697, Nov. 9, 2007. Redesignated at 85 FR 9615, Feb. 19, 2020]



Sec.  3035.104  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.

[72 FR 63697, Nov. 9, 2007. Redesignated at 85 FR 9615, Feb. 19, 2020]



Sec.  3035.105  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).

[72 FR 63697, Nov. 9, 2007. Redesignated at 85 FR 9615, Feb. 19, 2020]



Sec.  3035.106  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.

[72 FR 63697, Nov. 9, 2007. Redesignated at 85 FR 9615, Feb. 19, 2020]



Sec.  3035.107  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

[[Page 488]]

will use the sum of competitive products' volume-variable costs and 
product-specific 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). Pursuant to 39 U.S.C. 3631(b), the 
Commission will calculate a competitive product's attributable costs as 
the sum of its volume-variable costs, product-specific costs, and those 
inframarginal costs calculated as part of a competitive product's 
incremental costs.
    (c)(1) Annually, on a fiscal year basis, the appropriate share of 
institutional costs to be recovered from competitive products 
collectively, at a minimum, will be calculated using the following 
formula:

ASt+1 = ASt * (1 + %[Delta]CCMt-1 + 
CGDt-1)

Where,

AS = Appropriate Share, expressed as a percentage and rounded to one 
          decimal place
CCM = Competitive Contribution Margin
CGD = Competitive Growth Differential
t = Fiscal Year

If t = 0 = FY 2007, AS = 5.5 percent

    (2) The Commission shall, as part of each Annual Compliance 
Determination, calculate and report competitive products' appropriate 
share for the upcoming fiscal year using the formula set forth in 
paragraph (c)(1) of this section.

[72 FR 63697, Nov. 9, 2007, as amended at 81 FR 88123, Dec. 7, 2016; 84 
FR 539, Jan. 31, 2019. Redesignated at 85 FR 9615, Feb. 19, 2020; 88 FR 
3315, Jan. 19, 2023]



PART 3040_PRODUCT LISTS AND THE MAIL CLASSIFICATION SCHEDULE-
-Table of Contents



      Subpart A_Product Lists and the Mail Classification Schedule

Sec.
3040.101 Applicability.
3040.102 Product lists.
3040.103 Notice of product list change.
3040.104 Mail Classification Schedule.
3040.105 Modifications to the Mail Classification Schedule.

Appendix A to Subpart A of Part 3040--Market Dominant Product List
Appendix B to Subpart A of Part 3040--Competitive Product List

Subpart B_Requests Initiated by the Postal Service To Modify the Product 
                                  Lists

3040.130 General.
3040.131 Contents of a request.
3040.132 Supporting justification.
3040.133 Docket and notice.
3040.134 Review.
3040.135 Further proceedings.

Subpart C_Requests Initiated by Users of the Mail to Modify the Product 
                                  Lists

3040.150 General.
3040.151 Contents of a request.
3040.152 Supporting justification.
3040.153 Docket and notice.
3040.154 Postal Service notice and reply.
3040.155 Review.
3040.156 Further proceedings.

    Subpart D_Proposal of the Commission to Modify the Product Lists

3040.170 General.
3040.171 Contents of a proposal.
3040.172 Supporting justification.
3040.173 Docket and notice.
3040.174 Postal Service notice and reply.
3040.175 Review.
3040.176 Further proceedings.

  Subpart E_Requests Initiated by the Postal Service To Make Material 
    Changes or Minor Corrections to the Mail Classification Schedule

3040.180 Material changes to product descriptions.
3040.181 Supporting justification for material changes to product 
          descriptions.
3040.182 Docket and notice of material changes to product descriptions.
3040.183 Commission review of material changes to product descriptions.
3040.184-3040.189 [Reserved]
3040.190 Minor corrections to product descriptions.
3040.191 Docket and notice of minor corrections to product descriptions.
3040.192 Commission review of minor corrections to product descriptions.

          Subpart F_Size and Weight Limitations for Mail Matter

3040.210 General.
3040.211 Limitations applicable to market dominant mail matter.
3040.212 Limitations applicable to competitive mail matter.

[[Page 489]]

  Subpart G_Requests for Market Dominant Negotiated Service Agreements

3040.220 General.
3040.221 Additional supporting justification for negotiated service 
          agreements.
3040.222 Data collection plan and report for negotiated service 
          agreements.

    Authority: 39 U.S.C. 503; 3622; 3631; 3642; 3682.

    Source: 72 FR 63698, Nov. 9, 2007, unless otherwise noted. 
Redesignated at 85 FR 9615, Feb. 19, 2020.



      Subpart A_Product Lists and the Mail Classification Schedule

    Source: 81 FR 38954, June 15, 2016, unless otherwise noted.



Sec.  3040.101  Applicability.

    (a) The rules in this part require the Postal Regulatory Commission 
to establish and maintain lists of Postal Service products and a Mail 
Classification Schedule.
    (b) The product lists shall categorize postal products as either 
market dominant or competitive. As established, the market dominant and 
competitive product lists 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). The market dominant and competitive 
product lists shall also include products identified as market tests 
pursuant to 39 U.S.C. 3641 and nonpostal pursuant to 39 U.S.C. 404(e).
    (c) The Mail Classification Schedule shall provide current price and 
classification information applicable to the products appearing on the 
market dominant and competitive product lists.
    (d) Once established, the product lists and the Mail Classification 
Schedule may be modified subject to the procedures specified in this 
part.

[81 FR 38954, June 15, 2016. Redesignated at 85 FR 9615, Feb. 19, 2020]



Sec.  3040.102  Product lists.

    (a) Market dominant product list. The market dominant product list 
shall be published in the Federal Register at appendix A to subpart A of 
part 3040--Market Dominant Product List.
    (b) Competitive product list. The competitive product list shall be 
published in the Federal Register at appendix B to subpart A of part 
3040--Competitive Product List.

[85 FR 9658, Feb. 19, 2020]



Sec.  3040.103  Notice of product list change.

    (a) Whenever the Postal Regulatory Commission issues a final order 
that 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.
    (b) Notice shall be submitted to the Federal Register for 
publication within 6 months of the issue date of the applicable final 
order that affects the change.
    (c) Modifications pending publication in the Federal Register are 
effective immediately upon written direction from the Postal Regulatory 
Commission.
    (d) The Federal Register document shall:
    (1) Identify modifications to the current list of market dominant 
products and the current list of competitive products; and
    (2) Indicate how and when the previous product lists have been 
modified.

[81 FR 38954, June 15, 2016. Redesignated at 85 FR 9615, Feb. 19, 2020]



Sec.  3040.104  Mail Classification Schedule.

    (a) The Postal Regulatory Commission shall publish a Mail 
Classification Schedule (including both current and previous versions) 
on its website at http://www.prc.gov. Copies of the Mail Classification 
Schedule also shall be available during regular business hours for 
reference and public inspection at the Postal Regulatory Commission 
located at 901 New York Avenue NW., Suite 200, Washington, DC 20268-
0001.
    (b) The Mail Classification Schedule shall include, but shall not be 
limited to:
    (1) Front matter, including:
    (i) A cover page identifying the title of the document as the Mail 
Classification Schedule, the source of the document as the Postal 
Regulatory Commission (including Commission seal), and the publication 
date;
    (ii) A table of contents;

[[Page 490]]

    (iii) A table specifying the revision history of the Mail 
Classification Schedule; and
    (iv) A table identifying Postal Service trademarks; and
    (2) Information concerning market dominant products, including:
    (i) A copy of the Market Dominant Product List;
    (ii) Descriptions of each market dominant product organized by the 
class of product, including:
    (A) Where applicable, the general characteristics, size and weight 
limitations, minimum volume requirements, price categories, and 
available optional features of each market dominant product;
    (B) A schedule listing the rates and fees for each market dominant 
product;
    (C) 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;
    (D) Where applicable, the identification of a product as an 
experimental product undergoing a market test; and
    (E) Where applicable, the identification of a product as a nonpostal 
product; and
    (3) Information concerning competitive products, including:
    (i) A copy of the competitive product list; and
    (ii) Descriptions of each competitive product, including:
    (A) Where applicable, the general characteristics, size and weight 
limitations, minimum volume requirements, price categories, and 
available optional features of each competitive product;
    (B) A schedule listing the current rates and fees for each 
competitive product of general applicability;
    (C) The identification of each product not of general applicability 
within the meaning of 39 U.S.C. 3632(b)(3) for competitive products;
    (D) Where applicable, the identification of a product as an 
experimental product undergoing a market test; and
    (E) Where applicable, the identification of a product as a nonpostal 
product; and
    (4) A glossary of terms and conditions; and
    (5) A list of country codes for international mail prices.

[81 FR 38954, June 15, 2016. Redesignated and amended at 85 FR 9615, 
9660, Feb. 19, 2020]



Sec.  3040.105  Modifications to the Mail Classification Schedule.

    (a) Whenever the Postal Regulatory Commission issues a final order 
that modifies the Mail Classification Schedule, it shall update the Mail 
Classification Schedule appearing on its website at http://www.prc.gov 
in accordance with paragraph (b) of this section.
    (b) Modification to the Mail Classification Schedule shall be 
incorporated within 3 months of the issue date of the final order.
    (c) Modifications pending incorporation into the Mail Classification 
Schedule are effective immediately upon written direction from the 
Postal Regulatory Commission.

[81 FR 38954, June 15, 2016. Redesignated and amended at 85 FR 9615, 
9660, Feb. 19, 2020]



 Sec. Appendix A to Subpart A of Part 3040--Market Dominant Product List

    (An asterisk (*) indicates an organizational class or group, not a 
Postal Service product.)

                           First-Class Mail *

Single-Piece Letters/Postcards
Presorted Letters/Postcards
Flats
Outbound Single-Piece First-Class Mail International
Inbound Letter Post

            USPS Marketing Mail (Commercial and Nonprofit) *

High Density and Saturation Letters
High Density and Saturation Flats/Parcels
Carrier Route
Letters
Flats
Parcels
Every Door Direct Mail--Retail

                              Periodicals *

In-County Periodicals
Outside County Periodicals

                           Package Services *

Alaska Bypass Service
Bound Printed Matter Flats
Bound Printed Matter Parcels
Media Mail/Library Mail

                           Special Services *

Ancillary Services

[[Page 491]]

International Ancillary Services
Address Management Services
Caller Service
Credit Card Authentication
International Reply Coupon Service
International Business Reply Mail Service
Money Orders
Post Office Box Service
Stamp Fulfillment Services

                     Negotiated Service Agreements *

Domestic *
International *
Inbound Market Dominant Multi-Service Agreements with Foreign Postal 
          Operators

                          Nonpostal Services *

Alliances with the Private Sector to Defray Cost of Key Postal Functions
Philatelic Sales

                             Market Tests *

USPS Connect Local Mail

[88 FR 21918, Apr. 12, 2023]



   Sec. Appendix B to Subpart A of Part 3040--Competitive Product List

    (An asterisk (*) indicates an organizational class or group, not a 
Postal Service product.)

                           Domestic Products *

Priority Mail Express
Priority Mail
Parcel Select
Parcel Return Service
First-Class Package Service

                        International Products *

Outbound International Expedited Services
Inbound Parcel Post (at UPU rates)
Outbound Priority Mail International
International Priority Airmail (IPA)
International Surface Air Lift (ISAL)
International Direct Sacks-M-Bags
Outbound Single-Piece First-Class Package International Service
Inbound Letter Post Small Packets and Bulky Letters

                     Negotiated Service Agreements *

Domestic *
Priority Mail Express Contract 81
Priority Mail Express Contract 83
Priority Mail Express Contract 87
Priority Mail Express Contract 88
Priority Mail Express Contract 92
Priority Mail Express Contract 94
Priority Mail Express Contract 95
Priority Mail Express Contract 96
Priority Mail Express Contract 97
Priority Mail Express Contract 98
Priority Mail Express Contract 99
Parcel Return Service Contract 17
Parcel Return Service Contract 18
Priority Mail Contract 80
Priority Mail Contract 153
Priority Mail Contract 360
Priority Mail Contract 530
Priority Mail Contract 543
Priority Mail Contract 544
Priority Mail Contract 547
Priority Mail Contract 551
Priority Mail Contract 559
Priority Mail Contract 573
Priority Mail Contract 589
Priority Mail Contract 590
Priority Mail Contract 595
Priority Mail Contract 596
Priority Mail Contract 601
Priority Mail Contract 604
Priority Mail Contract 605
Priority Mail Contract 607
Priority Mail Contract 609
Priority Mail Contract 611
Priority Mail Contract 614
Priority Mail Contract 615
Priority Mail Contract 618
Priority Mail Contract 628
Priority Mail Contract 631
Priority Mail Contract 640
Priority Mail Contract 642
Priority Mail Contract 645
Priority Mail Contract 647
Priority Mail Contract 655
Priority Mail Contract 657
Priority Mail Contract 658
Priority Mail Contract 660
Priority Mail Contract 663
Priority Mail Contract 665
Priority Mail Contract 666
Priority Mail Contract 669
Priority Mail Contract 671
Priority Mail Contract 672
Priority Mail Contract 682
Priority Mail Contract 685
Priority Mail Contract 686
Priority Mail Contract 687
Priority Mail Contract 690
Priority Mail Contract 692
Priority Mail Contract 693
Priority Mail Contract 694
Priority Mail Contract 695
Priority Mail Contract 699
Priority Mail Contract 700
Priority Mail Contract 701
Priority Mail Contract 704
Priority Mail Contract 705
Priority Mail Contract 707
Priority Mail Contract 708
Priority Mail Contract 709
Priority Mail Contract 711
Priority Mail Contract 712
Priority Mail Contract 714
Priority Mail Contract 715
Priority Mail Contract 720
Priority Mail Contract 721
Priority Mail Contract 722
Priority Mail Contract 724
Priority Mail Contract 725
Priority Mail Contract 727

[[Page 492]]

Priority Mail Contract 728
Priority Mail Contract 730
Priority Mail Contract 733
Priority Mail Contract 734
Priority Mail Contract 735
Priority Mail Contract 736
Priority Mail Contract 737
Priority Mail Contract 738
Priority Mail Contract 739
Priority Mail Contract 740
Priority Mail Contract 741
Priority Mail Contract 742
Priority Mail Contract 743
Priority Mail Contract 744
Priority Mail Contract 745
Priority Mail Contract 746
Priority Mail Contract 747
Priority Mail Contract 748
Priority Mail Contract 749
Priority Mail Contract 750
Priority Mail Contract 751
Priority Mail Contract 752
Priority Mail Contract 753
Priority Mail Contract 754
Priority Mail Contract 755
Priority Mail Contract 756
Priority Mail Contract 757
Priority Mail Contract 758
Priority Mail Contract 759
Priority Mail Contract 760
Priority Mail Contract 761
Priority Mail Contract 762
Priority Mail Contract 763
Priority Mail Contract 764
Priority Mail Contract 765
Priority Mail Contract 766
Priority Mail Contract 767
Priority Mail Contract 768
Priority Mail Contract 769
Priority Mail Contract 770
Priority Mail Contract 771
Priority Mail Contract 772
Priority Mail Contract 773
Priority Mail Express & Priority Mail Contract 99
Priority Mail Express & Priority Mail Contract 102
Priority Mail Express & Priority Mail Contract 114
Priority Mail Express & Priority Mail Contract 116
Priority Mail Express & Priority Mail Contract 118
Priority Mail Express & Priority Mail Contract 120
Priority Mail Express & Priority Mail Contract 122
Priority Mail Express & Priority Mail Contract 123
Priority Mail Express & Priority Mail Contract 130
Priority Mail Express & Priority Mail Contract 131
Priority Mail Express & Priority Mail Contract 133
Priority Mail Express & Priority Mail Contract 134
Parcel Select & Parcel Return Service Contract 7
Parcel Select & Parcel Return Service Contract 9
Parcel Select & Parcel Return Service Contract 10
Parcel Select & Parcel Return Service Contract 11
Parcel Select & Parcel Return Service Contract 14
Parcel Select Contract 34
Parcel Select Contract 35
Parcel Select Contract 37
Parcel Select Contract 38
Parcel Select Contract 39
Parcel Select Contract 40
Parcel Select Contract 41
Parcel Select Contract 42
Parcel Select Contract 43
Parcel Select Contract 44
Parcel Select Contract 45
Parcel Select Contract 48
Parcel Select Contract 49
Parcel Select Contract 50
Parcel Select Contract 51
Parcel Select Contract 52
Parcel Select Contract 53
Parcel Select Contract 54
Parcel Select Contract 55
Priority Mail--Non-Published Rates 1
Priority Mail--Non-Published Rates 2
First-Class Package Service Contract 87
First-Class Package Service Contract 106
First-Class Package Service Contract 108
First-Class Package Service Contract 109
First-Class Package Service Contract 110
First-Class Package Service Contract 112
First-Class Package Service Contract 114
First-Class Package Service Contract 115
First-Class Package Service Contract 116
First-Class Package Service Contract 117
First-Class Package Service Contract 118
First-Class Package Service Contract 119
First-Class Package Service Contract 120
First-Class Package Service Contract 121
Priority Mail Express, Priority Mail & First-Class Package Service 
          Contract 62
Priority Mail Express, Priority Mail & First-Class Package Service 
          Contract 66
Priority Mail Express, Priority Mail & First-Class Package Service 
          Contract 67
Priority Mail Express, Priority Mail & First-Class Package Service 
          Contract 71
Priority Mail Express, Priority Mail & First-Class Package Service 
          Contract 73
Priority Mail Express, Priority Mail & First-Class Package Service 
          Contract 74
Priority Mail Express, Priority Mail & First-Class Package Service 
          Contract 75
Priority Mail Express, Priority Mail & First-Class Package Service 
          Contract 77
Priority Mail Express, Priority Mail & First-Class Package Service 
          Contract 78
Priority Mail Express, Priority Mail & First-Class Package Service 
          Contract 79
Priority Mail & First-Class Package Service Contract 26

[[Page 493]]

Priority Mail & First-Class Package Service Contract 79
Priority Mail & First-Class Package Service Contract 102
Priority Mail & First-Class Package Service Contract 121
Priority Mail & First-Class Package Service Contract 126
Priority Mail & First-Class Package Service Contract 128
Priority Mail & First-Class Package Service Contract 129
Priority Mail & First-Class Package Service Contract 132
Priority Mail & First-Class Package Service Contract 137
Priority Mail & First-Class Package Service Contract 139
Priority Mail & First-Class Package Service Contract 141
Priority Mail & First-Class Package Service Contract 143
Priority Mail & First-Class Package Service Contract 144
Priority Mail & First-Class Package Service Contract 146
Priority Mail & First-Class Package Service Contract 148
Priority Mail & First-Class Package Service Contract 153
Priority Mail & First-Class Package Service Contract 154
Priority Mail & First-Class Package Service Contract 155
Priority Mail & First-Class Package Service Contract 163
Priority Mail & First-Class Package Service Contract 166
Priority Mail & First-Class Package Service Contract 169
Priority Mail & First-Class Package Service Contract 172
Priority Mail & First-Class Package Service Contract 175
Priority Mail & First-Class Package Service Contract 177
Priority Mail & First-Class Package Service Contract 183
Priority Mail & First-Class Package Service Contract 184
Priority Mail & First-Class Package Service Contract 186
Priority Mail & First-Class Package Service Contract 188
Priority Mail & First-Class Package Service Contract 189
Priority Mail & First-Class Package Service Contract 190
Priority Mail & First-Class Package Service Contract 191
Priority Mail & First-Class Package Service Contract 192
Priority Mail & First-Class Package Service Contract 193
Priority Mail & First-Class Package Service Contract 195
Priority Mail & First-Class Package Service Contract 197
Priority Mail & First-Class Package Service Contract 198
Priority Mail & First-Class Package Service Contract 199
Priority Mail & First-Class Package Service Contract 200
Priority Mail & First-Class Package Service Contract 202
Priority Mail & First-Class Package Service Contract 203
Priority Mail & First-Class Package Service Contract 204
Priority Mail & First-Class Package Service Contract 205
Priority Mail & First-Class Package Service Contract 206
Priority Mail & First-Class Package Service Contract 208
Priority Mail & First-Class Package Service Contract 209
Priority Mail & First-Class Package Service Contract 210
Priority Mail & First-Class Package Service Contract 213
Priority Mail & First-Class Package Service Contract 214
Priority Mail & First-Class Package Service Contract 215
Priority Mail & First-Class Package Service Contract 216
Priority Mail & First-Class Package Service Contract 217
Priority Mail & First-Class Package Service Contract 218
Priority Mail & First-Class Package Service Contract 219
Priority Mail & First-Class Package Service Contract 220
Priority Mail & First-Class Package Service Contract 221
Priority Mail & First-Class Package Service Contract 222
Priority Mail & First-Class Package Service Contract 223
Priority Mail & First-Class Package Service Contract 224
Priority Mail & First-Class Package Service Contract 225
Priority Mail & First-Class Package Service Contract 226
Priority Mail & First-Class Package Service Contract 227
Priority Mail & First-Class Package Service Contract 228
Priority Mail & First-Class Package Service Contract 229
Priority Mail & Parcel Select Contract 4
Priority Mail & Parcel Select Contract 5
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 6
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 8

[[Page 494]]

Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 9
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 11
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 12
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 13
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 14
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 15
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 16
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 17
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 18
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 19
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 20
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 21
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 22
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 23
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 24
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 25
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 26
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 27
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 28
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 29
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 30
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 31
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 32
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 33
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 34
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 35
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 36
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 37
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 38
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 39
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 40
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 41
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 42
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 43
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 44
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 45
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 46
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 47
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 48
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 49
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 50
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 51
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 52
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 53

[[Page 495]]

Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 54
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 55
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 56
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 57
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 58
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 59
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 60
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 61
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 62
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 63
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 64
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 66
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 67
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 68
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 69
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 70
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 71
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 72
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 73
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 74
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 75
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 76
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 77
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 78
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 79
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 80
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 81
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 82
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 83
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 84
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 85
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 86
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 87
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 88
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 89
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 90
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 91
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 92
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 93
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 94
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 95
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 96
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 97
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 98

[[Page 496]]

Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 99
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 100
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 101
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 102
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 103
Priority Mail Express, Priority Mail, First-Class Package Service & 
          Parcel Select Contract 104
Priority Mail, First-Class Package Service & Parcel Select Contract 3
Priority Mail, First-Class Package Service & Parcel Select Contract 4
Priority Mail Express, Priority Mail & Parcel Select Contract 1

                        Outbound International *

Global Expedited Package Services (GEPS) Contracts
GEPS 3
GEPS 5
GEPS 6
GEPS 7
GEPS 8
GEPS 9
GEPS 10
Global Bulk Economy (GBE) Contracts
Global Plus Contracts
Global Plus 1C
Global Plus 1D
Global Plus 1E
Global Plus 2C
Global Plus 3
Global Plus 4
Global Plus 5
Global Plus 6
Global Reseller Expedited Package Contracts
Global Reseller Expedited Package Services 1
Global Reseller Expedited Package Services 2
Global Reseller Expedited Package Services 3
Global Reseller Expedited Package Services 4
Global Expedited Package Services (GEPS)--Non-Published Rates
Global Expedited Package Services (GEPS)--Non-Published Rates 2
Global Expedited Package Services (GEPS)--Non-Published Rates 3
Global Expedited Package Services (GEPS)--Non-Published Rates 4
Global Expedited Package Services (GEPS)--Non-Published Rates 5
Global Expedited Package Services (GEPS)--Non-Published Rates 6
Global Expedited Package Services (GEPS)--Non-Published Rates 7
Global Expedited Package Services (GEPS)--Non-Published Rates 8
Global Expedited Package Services (GEPS)--Non-Published Rates 9
Global Expedited Package Services (GEPS)--Non-Published Rates 10
Global Expedited Package Services (GEPS)--Non-Published Rates 11
Global Expedited Package Services (GEPS)--Non-Published Rates 12
Global Expedited Package Services (GEPS)--Non-Published Rates 13
Global Expedited Package Services (GEPS)--Non-Published Rates 14
Global Expedited Package Services (GEPS)--Non-Published Rates 15
Outbound Competitive International Merchandise Return Service Agreement 
          with Royal Mail Group, Ltd.
Competitive International Merchandise Return Service Agreements with 
          Foreign Postal Operators
Competitive International Merchandise Return Service Agreements with 
          Foreign Postal Operators 1
Competitive International Merchandise Return Service Agreements with 
          Foreign Postal Operators 2
Alternative Delivery Provider (ADP) Contracts
ADP 1
Alternative Delivery Provider Reseller (ADPR) Contracts
ADPR 1
Priority Mail Express International, Priority Mail International & 
          First-Class Package International Service Contracts
Priority Mail Express International, Priority Mail International & 
          First-Class Package International Service Contract 4
Priority Mail Express International, Priority Mail International & 
          First-Class Package International Service Contract 5
Priority Mail Express International, Priority Mail International & 
          First-Class Package International Service Contract 6
Priority Mail Express International, Priority Mail International & 
          First-Class Package International Service Contract 7
Priority Mail Express International, Priority Mail International & 
          First-Class Package International Service Contract 8
Priority Mail Express International, Priority Mail International & 
          First-Class Package International Service Contract 9
Priority Mail Express International, Priority Mail International & 
          First-Class Package International Service Contract 10
Priority Mail Express International, Priority Mail International & 
          First-Class Package International Service Contract 11
Priority Mail Express International, Priority Mail International & 
          First-Class Package International Service Contract 12

[[Page 497]]

Priority Mail Express International, Priority Mail International, First-
          Class Package International Service & Commercial ePacket 
          Contracts
Priority Mail Express International, Priority Mail International, First-
          Class Package International Service & Commercial ePacket 
          Contract 2
Priority Mail Express International, Priority Mail International, First-
          Class Package International Service & Commercial ePacket 
          Contract 8
Priority Mail Express International, Priority Mail International, First-
          Class Package International Service & Commercial ePacket 
          Contract 12
Priority Mail Express International, Priority Mail International & 
          Commercial ePacket Contracts
International Priority Airmail, Commercial ePacket, Priority Mail 
          Express International, Priority Mail International & First-
          Class Package International Service Contracts
International Priority Airmail, Commercial ePacket, Priority Mail 
          Express International, Priority Mail International & First-
          Class Package International Service Contract 1
International Priority Airmail, Commercial ePacket, Priority Mail 
          Express International, Priority Mail International & First-
          Class Package International Service Contract 2
International Priority Airmail, Commercial ePacket, Priority Mail 
          Express International, Priority Mail International & First-
          Class Package International Service Contract 4
International Priority Airmail, Commercial ePacket, Priority Mail 
          Express International, Priority Mail International & First-
          Class Package International Service Contract 5
International Priority Airmail, Commercial ePacket, Priority Mail 
          Express International, Priority Mail International & First-
          Class Package International Service Contract 6
International Priority Airmail, Commercial ePacket, Priority Mail 
          Express International, Priority Mail International & First-
          Class Package International Service Contract 9
International Priority Airmail, Commercial ePacket, Priority Mail 
          Express International, Priority Mail International & First-
          Class Package International Service Contract 11
International Priority Airmail, Commercial ePacket, Priority Mail 
          Express International, Priority Mail International & First-
          Class Package International Service Contract 12
International Priority Airmail, Commercial ePacket, Priority Mail 
          Express International, Priority Mail International & First-
          Class Package International Service Contract 13
International Priority Airmail, Commercial ePacket, Priority Mail 
          Express International, Priority Mail International & First-
          Class Package International Service Contract 14
International Priority Airmail, Commercial ePacket, Priority Mail 
          Express International, Priority Mail International & First-
          Class Package International Service with Reseller Contracts
International Priority Airmail, Commercial ePacket, Priority Mail 
          Express International, Priority Mail International & First-
          Class Package International Service with Reseller Contract 1
International Priority Airmail, Commercial ePacket, Priority Mail 
          Express International, Priority Mail International & First-
          Class Package International Service with Reseller Contract 2
International Priority Airmail, Commercial ePacket, Priority Mail 
          Express International, Priority Mail International & First-
          Class Package International Service with Reseller Contract 3
International Priority Airmail, Commercial ePacket, Priority Mail 
          Express International, Priority Mail International & First-
          Class Package International Service with Reseller Contract 4
International Priority Airmail, Commercial ePacket, Priority Mail 
          Express International, Priority Mail International & First-
          Class Package International Service with Reseller Contract 5
International Priority Airmail, Commercial ePacket, Priority Mail 
          Express International, Priority Mail International & First-
          Class Package International Service with Reseller Contract 6
International Priority Airmail, Commercial ePacket, Priority Mail 
          Express International, Priority Mail International & First-
          Class Package International Service with Reseller Contract 7
International Priority Airmail, Commercial ePacket, Priority Mail 
          Express International, Priority Mail International & First-
          Class Package International Service with Reseller Contract 8
International Priority Airmail Contracts
International Priority Airmail, International Surface Air Lift, 
          Commercial ePacket, Priority Mail Express International, 
          Priority Mail International & First-Class Package 
          International Service Contracts
International Priority Airmail, International Surface Air Lift, 
          Commercial ePacket, Priority Mail Express International, 
          Priority Mail International & First-Class Package 
          International Service Contract 1
International Priority Airmail, International Surface Air Lift, 
          Commercial

[[Page 498]]

          ePacket, Priority Mail Express International, Priority Mail 
          International & First-Class Package International Service 
          Contract 2
International Priority Airmail, International Surface Air Lift, 
          Commercial ePacket, Priority Mail Express International, 
          Priority Mail International & First-Class Package 
          International Service with Reseller Contracts
International Priority Airmail, International Surface Air Lift, 
          Commercial ePacket, Priority Mail Express International, 
          Priority Mail International & First-Class Package 
          International Service with Reseller Contract 1
International Priority Airmail, International Surface Air Lift, 
          Commercial ePacket, Priority Mail Express International, 
          Priority Mail International & First-Class Package 
          International Service with Reseller Contract 2

                         Inbound International *

International Business Reply Service (IBRS) Competitive Contracts
International Business Reply Service Competitive Contract 1
International Business Reply Service Competitive Contract 3
Inbound Direct Entry Contracts with Customers
Inbound Direct Entry Contracts with Foreign Postal Administrations
Inbound Direct Entry Contracts with Foreign Postal Administrations
Inbound Direct Entry Contracts with Foreign Postal Administrations 1
Inbound EMS
Inbound EMS 2
Inbound Air Parcel Post (at non-UPU rates)
Inbound Competitive Multi-Service Agreements with Foreign Postal 
          Operators
Inbound Competitive Multi-Service Agreements with Foreign Postal 
          Operators 1

                           Special Services *

Address Enhancement Services
Greeting Cards, Gift Cards, and Stationery
International Ancillary Services
International Money Transfer Service--Outbound
International Money Transfer Service--Inbound
Premium Forwarding Service
Shipping and Mailing Supplies
Post Office Box Service
Competitive Ancillary Services

                          Nonpostal Services *

Advertising
Licensing of Intellectual Property other than Officially Licensed Retail 
          Products (OLRP)
Mail Service Promotion
Officially Licensed Retail Products (OLRP)
Passport Photo Service
Photocopying Service
Rental, Leasing, Licensing or other Non-Sale Disposition of Tangible 
          Property
Training Facilities and Related Services
USPS Electronic Postmark (EPM) Program

                             Market Tests *

[88 FR 21918, Apr. 12, 2023]



Subpart B_Requests Initiated by the Postal Service To Modify the Product 
                                  Lists



Sec.  3040.130  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. 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.

[81 FR 38957, June 15, 2016. Redesignated at 85 FR 9615, Feb. 19, 2020]



Sec.  3040.131  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

[[Page 499]]

Schedule and the proposed changes therein in legislative format.

[72 FR 63698, Nov. 9, 2007. Redesignated at 85 FR 9615, Feb. 19, 2020]



Sec.  3040.132  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) Explain the reason for initiating the docket and explain why the 
change is not inconsistent with the applicable requirements of this part 
and any applicable Commission directives and orders;
    (b) Explain why, as to market dominant products, the change is not 
inconsistent with the policies and the applicable criteria of chapter 36 
of title 39 of the United States Code;
    (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.

[72 FR 63698, Nov. 9, 2007. Redesignated at 85 FR 9615, Feb. 19, 2020, 
as amended at 85 FR 81138, Dec. 15, 2020]



Sec.  3040.133  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 website. 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.

[72 FR 63698, Nov. 9, 2007. Redesignated and amended at 85 FR 9615, 
9660, Feb. 19, 2020]



Sec.  3040.134  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.

[72 FR 63698, Nov. 9, 2007. Redesignated at 85 FR 9615, Feb. 19, 2020]

[[Page 500]]



Sec.  3040.135  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.

[72 FR 63698, Nov. 9, 2007. Redesignated at 85 FR 9615, Feb. 19, 2020]



Subpart C_Requests Initiated by Users of the Mail to Modify the Product 
                                  Lists



Sec.  3040.150  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. 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.

[81 FR 38957, June 15, 2016. Redesignated at 85 FR 9615, Feb. 19, 2020]



Sec.  3040.151  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.
    (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.

[72 FR 63698, Nov. 9, 2007. Redesignated at 85 FR 9615, Feb. 19, 2020]



Sec.  3040.152  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) Explain the reason for initiating the docket and explain why the 
change is not inconsistent with the applicable requirements of this part 
and any applicable Commission directives and orders;
    (b) Explain why, as to market dominant products, the change is not 
inconsistent with the policies and the applicable criteria of chapter 36 
of title 39 of the United States Code;
    (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

[[Page 501]]

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.

[72 FR 63698, Nov. 9, 2007. Redesignated at 85 FR 9615, Feb. 19, 2020, 
as amended at 85 FR 81138, Dec. 15, 2020]



Sec.  3040.153  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 website. 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.

[72 FR 63698, Nov. 9, 2007. Redesignated and amended at 85 FR 9615, 
9660, Feb. 19, 2020]



Sec.  3040.154  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.

[72 FR 63698, Nov. 9, 2007. Redesignated at 85 FR 9615, Feb. 19, 2020]



Sec.  3040.155  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:
    (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.

[72 FR 63698, Nov. 9, 2007. Redesignated at 85 FR 9615, Feb. 19, 2020]



Sec.  3040.156  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.

[72 FR 63698, Nov. 9, 2007. Redesignated at 85 FR 9615, Feb. 19, 2020]

[[Page 502]]



    Subpart D_Proposal of the Commission to Modify the Product Lists



Sec.  3040.170  General.

    The Commission, of its own initiative, may propose a modification to 
the market dominant product list or the competitive product list. 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.

[81 FR 38957, June 15, 2016. Redesignated at 85 FR 9615, Feb. 19, 2020]



Sec.  3040.171  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.

[72 FR 63698, Nov. 9, 2007. Redesignated at 85 FR 9615, Feb. 19, 2020]



Sec.  3040.172  Supporting justification.

    Supporting justification shall:
    (a) Explain the reason for initiating the docket and explain why the 
change is not inconsistent with the applicable requirements of this part 
and any applicable Commission directives and orders;
    (b) Explain why, as to market dominant products, the change is not 
inconsistent with the policies and the applicable criteria of chapter 36 
of title 39 of the United States Code;
    (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 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.

[72 FR 63698, Nov. 9, 2007. Redesignated at 85 FR 9615, Feb. 19, 2020, 
as amended at 85 FR 81138, Dec. 15, 2020]



Sec.  3040.173  Docket and notice.

    The Commission will establish a docket for each request to modify 
the

[[Page 503]]

market dominant list or the competitive product list, promptly publish 
notice of the request in the Federal Register, and post the filing on 
its website. 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.

[72 FR 63698, Nov. 9, 2007. Redesignated and amended at 85 FR 9615, 
9660, Feb. 19, 2020]



Sec.  3040.174  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.

[72 FR 63698, Nov. 9, 2007. Redesignated at 85 FR 9615, Feb. 19, 2020]



Sec.  3040.175  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.

[72 FR 63698, Nov. 9, 2007. Redesignated at 85 FR 9615, Feb. 19, 2020]



Sec.  3040.176  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.

[72 FR 63698, Nov. 9, 2007. Redesignated at 85 FR 9615, Feb. 19, 2020]



  Subpart E_Requests Initiated by the Postal Service To Make Material 
    Changes or Minor Corrections to the Mail Classification Schedule

    Source: 80 FR 35575, June 22, 2015, unless otherwise noted.



Sec.  3040.180  Material changes to product descriptions.

    (a) Whenever the Postal Service proposes material changes to a 
product description in the Mail Classification Schedule, no later than 
30 days prior to implementing the proposed changes, it shall submit to 
the Commission a request to change the product description in the Mail 
Classification Schedule.
    (b) The request shall:
    (1) Include a copy of the applicable sections of the Mail 
Classification Schedule and the proposed changes therein in legislative 
format; and
    (2) Provide all supporting justification for the changes upon which 
the Postal Service proposes to rely.

[80 FR 35575, June 22, 2015. Redesignated at 85 FR 9615, Feb. 19, 2020]



Sec.  3040.181  Supporting justification for material changes to
product descriptions.

    (a) Supporting justification for changes to a product description in 
the

[[Page 504]]

Mail Classification Schedule shall include a description of, and 
rationale for, the proposed changes to the product description; and the 
additional material in paragraphs (b) and (c) of this section.
    (b)(1) As to market dominant products, explain why the changes are 
not inconsistent with the policies and the applicable criteria of 
chapter 36 of title 39 of the United States Code, the applicable 
requirements of this part, and any applicable Commission directives and 
orders; or
    (2) As to competitive products, explain why the changes will not 
result in the violation of any of the standards of 39 U.S.C. 3633 and 
part 3035 of this chapter.
    (c) Describe the likely impact that the changes will have on users 
of the product and on competitors.

[80 FR 35575, June 22, 2015. Redesignated and amended at 85 FR 9615, 
9658, Feb. 19, 2020; 85 FR 81138, Dec. 15, 2020]



Sec.  3040.182  Docket and notice of material changes to product
descriptions.

    (a) The Commission shall take the actions identified in paragraphs 
(b) through (e) of this section.
    (b) Establish a docket for each request to change a product 
description in the Mail Classification Schedule;
    (c) Publish notice of the request on its website;
    (d) Designate an officer of the Commission to represent the 
interests of the general public in the docket; and
    (e) Provide interested persons with an opportunity to comment on 
whether the proposed changes are consistent with the policies and the 
applicable criteria of chapter 36 of title 39 of the United States Code, 
the applicable requirements of this part, and any applicable Commission 
directives and orders.

[80 FR 35575, June 22, 2015. Redesignated and amended at 85 FR 9615, 
9660, Feb. 19, 2020; 85 FR 81138, Dec. 15, 2020]



Sec.  3040.183  Commission review of material changes to product
descriptions.

    (a) The Commission shall review the request and any comments filed. 
The Commission shall take one of the actions identified in paragraphs 
(b) through (g) of this section.
    (b) Approve the proposed changes, subject to editorial corrections, 
and change the Mail Classification Schedule to coincide with the 
effective date of the proposed change;
    (c) Reject the proposed changes;
    (d) Provide the Postal Service with an opportunity to amend the 
proposed changes;
    (e) Direct the Postal Service to make an appropriate filing under a 
different section;
    (f) Institute further proceedings; or
    (g) Direct other action that the Commission considers appropriate.

[80 FR 35575, June 22, 2015. Redesignated at 85 FR 9615, Feb. 19, 2020]



Sec. Sec.  3040.184-3040.189  [Reserved]



Sec.  3040.190  Minor corrections to product descriptions.

    (a) The Postal Service shall ensure that product descriptions in the 
Mail Classification Schedule accurately represent the current offerings 
of the Postal Service.
    (b) The Postal Service shall submit minor corrections to product 
descriptions in the Mail Classification Schedule by filing notice with 
the Commission no later than 15 days prior to the effective date of the 
proposed corrections.
    (c) The notice shall:
    (1) Explain why the proposed corrections do not constitute material 
changes to the product description for purposes of Sec.  3040.180;
    (2) Explain why the proposed corrections are consistent with the 
policies and the applicable criteria of chapter 36 of title 39 of the 
United States Code, the applicable requirements of this part, and any 
applicable Commission directives and orders; and
    (3) Include a copy of the applicable sections of the Mail 
Classification Schedule and the proposed corrections therein in 
legislative format.

[80 FR 35575, June 22, 2015. Redesignated and amended at 85 FR 9615, 
9659, Feb. 19, 2020; 85 FR 81138, Dec. 15, 2020]

[[Page 505]]



Sec.  3040.191  Docket and notice of minor corrections to product
descriptions.

    (a) The Commission shall take the actions identified in paragraphs 
(b) through (e) of this section.
    (b) Establish a docket for each proposal to correct a product 
description in the Mail Classification Schedule;
    (c) Publish notice of the proposal on its website;
    (d) Designate an officer of the Commission to represent the 
interests of the general public in the docket; and
    (e) Provide interested persons with an opportunity to comment on 
whether the proposed corrections are consistent with the policies and 
the applicable criteria of chapter 36 of title 39 of the United States 
Code, the applicable requirements of this part, and any applicable 
Commission directives and orders.

[80 FR 35575, June 22, 2015. Redesignated and amended at 85 FR 9615, 
9660, Feb. 19, 2020; 85 FR 81138, Dec. 15, 2020]



Sec.  3040.192  Commission review of minor corrections to product
descriptions.

    (a) The Commission shall review the notice and any comments filed. 
The Commission shall take one of the actions identified in paragraphs 
(b) through (g) of this section.
    (b) Approve the proposed corrections, subject to editorial 
corrections, and change the Mail Classification Schedule to coincide 
with the effective date of the proposed change;
    (c) Reject the proposed corrections;
    (d) Provide the Postal Service with an opportunity to amend the 
proposed corrections;
    (e) Direct the Postal Service to make an appropriate filing under a 
different section;
    (f) Institute further proceedings; or
    (g) Direct other action that the Commission considers appropriate.

[80 FR 35575, June 22, 2015. Redesignated at 85 FR 9615, Feb. 19, 2020]



          Subpart F_Size and Weight Limitations for Mail Matter



Sec.  3040.210  General.

    Applicable size and weight limitations for mail matter shall appear 
in the Mail Classification Schedule as part of the description of each 
product.

[72 FR 63698, Nov. 9, 2007. Redesignated at 85 FR 9615, Feb. 19, 2020]



Sec.  3040.211  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:
    (1) Include a copy of the applicable sections of the Mail 
Classification Schedule and the proposed updates therein in legislative 
format;
    (2) Describe the likely impact that the proposed update will have on 
users of the product(s) and on competitors; and
    (3) Describe how the proposed update is in accordance with the 
policies and the applicable criteria of chapter 36 of title 39 of the 
United States Code.
    (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.

[72 FR 63698, Nov. 9, 2007, as amended at 84 FR 32317, July 8, 2019. 
Redesignated at 85 FR 9615, Feb. 19, 2020]

[[Page 506]]



Sec.  3040.212  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.

[72 FR 63698, Nov. 9, 2007. Redesignated at 85 FR 9615, Feb. 19, 2020]



  Subpart G_Requests for Market Dominant Negotiated Service Agreements

    Source: 85 FR 81138, Dec. 15, 2020, unless otherwise noted.



Sec.  3040.220  General.

    This subpart imposes additional requirements whenever there is a 
request to add a negotiated service agreement to the market dominant 
product list. The additional supporting justification appearing in Sec.  
3040.221 also should be provided whenever the Postal Service proposes to 
modify the terms of an existing market dominant negotiated service 
agreement. Commission findings that the addition of a special 
classification is not inconsistent with 39 U.S.C. 3622 are provisional 
and subject to subsequent review. No rate(s) shall take effect until 45 
days after the Postal Service files a request for review of a notice of 
a new rate or rate(s) adjustment specifying the rate(s) and the 
effective date.



Sec.  3040.221  Additional supporting justification for negotiated
service agreements.

    (a) Each request shall also include the items specified in 
paragraphs (b) through (j) of this section.
    (b) A copy of the negotiated service agreement.
    (c) The planned effective date(s) of the planned rates.
    (d) The identity of a responsible Postal Service official who will 
be available to provide prompt responses to requests for clarification 
from the Commission.
    (e) A statement identifying all parties to the agreement and a 
description clearly explaining the operative components of the 
agreement.
    (f) Details regarding the expected improvements in the net financial 
position or operations of the Postal Service (39 U.S.C. 
3622(c)(10)(A)(i) and (ii)). The projection of the change in net 
financial position as a result of the agreement shall be based on 
accepted analytical principles. The projection of the 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;
    (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; and
    (5) If the Postal Service believes the Commission's accepted 
analytical principles are not the most accurate and reliable methodology 
available:
    (i) An explanation of the basis for that belief; and
    (ii) A projection of the change in net financial position resulting 
from the agreement made using the Postal Service's alternative 
methodology.
    (g) 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.
    (h) 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 (39 U.S.C. 3622(c)(10)(B)).
    (i) A discussion in regard to how functionally similar negotiated 
service agreements will be made available on

[[Page 507]]

public and reasonable terms to similarly situated mailers.
    (j) Such other information as the Postal Service believes will 
assist the Commission in issuing a timely determination of whether the 
requested changes are consistent with applicable statutory policies.



Sec.  3040.222  Data collection plan and report for negotiated service 
agreements.

    (a) The Postal Service shall include with any request concerning a 
negotiated service 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).
    (b) A data report under the plan 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:
    (1) The change in net financial position of the Postal Service as a 
result of the agreement. This calculation shall include for each year of 
the agreement:
    (i) The actual mailer-specific costs, volumes, and revenues of the 
Postal Service;
    (ii) An analysis of the effects of the negotiated service agreement 
on the net overall contribution to the institutional costs of the Postal 
Service; and
    (iii) 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.
    (2) 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.
    (3) 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.



PART 3045_RULES FOR MARKET TESTS OF EXPERIMENTAL PRODUCTS-
-Table of Contents



Sec.
3045.1 Applicability.
3045.2 Advance notice.
3045.3 Contents of notice.
3045.4 Review.
3045.5 Commission action.
3045.6 Changes in market test.
3045.7-3045.9 [Reserved]
3045.10 Duration.
3045.11 Extension of market test.
3045.12 Cancellation of market test.
3045.13-3045.14 [Reserved]
3045.15 Dollar amount limitation.
3045.16 Exemption from dollar amount limitation.
3045.17 Prevention of market disruption.
3045.18 Request to add a non-experimental product or price category 
          based on an experimental product to the product list.
3045.19 [Reserved]
3045.20 Data collection and reporting requirements.

    Authority: 39 U.S.C. 503; 3641.

    Source: 79 FR 54563, Sept. 11, 2014, unless otherwise noted. 
Redesignated at 85 FR 9615, Feb. 19, 2020.



Sec.  3045.1  Applicability.

    The rules in this part apply to market tests of experimental 
products undertaken pursuant to 39 U.S.C. 3641.



Sec.  3045.2  Advance notice.

    The Postal Service shall file notice with the Commission of its 
determination to initiate a market test at least 30 days before 
initiating the market test.



Sec.  3045.3  Contents of notice.

    (a) Notices of proposed market tests shall include:
    (1) The basis for the Postal Service's determination that the market 
test is governed by 39 U.S.C. 3641, which shall:
    (i) Describe, from the viewpoint of mail users, how the experimental 
product is significantly different from all products offered by the 
Postal Service within the 2 fiscal years preceding the start of the 
market test;

[[Page 508]]

    (ii) Establish that the introduction or continued offering of the 
experimental product will not create an unfair or otherwise 
inappropriate competitive advantage for the Postal Service or any 
mailer, particularly in regard to small business concerns, as defined in 
Sec.  3010.101(t) of this chapter; and
    (iii) Identify the experimental product as either market dominant or 
competitive for purposes of the market test, and explain the reasoning 
for the categorization in accordance with the criteria set forth in 39 
U.S.C. 3642(b)(1).
    (2) A description of the nature and the scope of the market test 
that:
    (i) Describes the market test and experimental product;
    (ii) Demonstrates why the market test is not inconsistent with the 
requirements of 39 U.S.C. 3641;
    (iii) Identifies the beginning and ending dates of the market test;
    (iv) Describes the geographic market(s) where the market test may be 
conducted;
    (v) Estimates the total revenue that is anticipated by the Postal 
Service for each fiscal year of the market test, including available 
supporting documentation; and
    (vi) Includes a data collection plan for the market test, including 
a description of the specific data items to be collected. The minimum 
data collection plan requirements are described in Sec.  3045.20.
    (b) [Reserved]

[79 FR 54563, Sept. 11, 2014, as amended at 85 FR 9659, Feb. 19, 2020]



Sec.  3045.4  Review.

    (a) The Commission will establish a docket for each market test 
initiated under this part, promptly publish a notice in the Federal 
Register, and post the filing on its website. The notice shall:
    (1) Describe the general nature of the proceeding;
    (2) Refer to the legal authority under which the proceeding is to be 
conducted;
    (3) Identify an officer of the Commission to represent the interests 
of the general public in the docket;
    (4) Specify a period for public comment; and
    (5) Include such other information as the Commission deems 
appropriate.
    (b) [Reserved]

[79 FR 54563, Sept. 11, 2014, as amended at 85 FR 9660, Feb. 19, 2020]



Sec.  3045.5  Commission action.

    (a) The Commission shall review the Postal Service notice together 
with any comments for initial compliance with the statutory requirements 
of 39 U.S.C. 3641, and:
    (1) Find that the market test is consistent with the requirements of 
39 U.S.C. 3641;
    (2) Find that the market test is inconsistent with the requirements 
of 39 U.S.C. 3641 and provide an opportunity to correct the identified 
deficiencies;
    (3) Find that the market test is inconsistent with the requirements 
of 39 U.S.C. 3641 and order that the market test not go into effect; or
    (4) Direct other action as the Commission may consider appropriate.
    (b) [Reserved]



Sec.  3045.6  Changes in market test.

    (a) The Postal Service shall file a notice with the Commission 
describing each material change made to the market test or services 
offered under the market test at least 10 days before implementing such 
changes. Material changes are changes that may affect compliance with 39 
U.S.C. 3641 and include, without limitation, adjustments to prices, 
geographic scope, eligibility for service, and termination date.
    (b) The Commission may, in its discretion, notice the filing and 
provide an opportunity for comment.



Sec. Sec.  3045.7-3045.9  [Reserved]



Sec.  3045.10  Duration.

    A market test may not exceed 24 months in duration unless the 
Commission authorizes an extension pursuant to a request filed by the 
Postal Service under Sec.  3045.11.

[85 FR 9659, Feb. 19, 2020]



Sec.  3045.11  Extension of market test.

    (a) The Postal Service may request an extension of the duration of a 
market test, not to exceed an additional 12

[[Page 509]]

months, if such an extension is necessary to determine the feasibility 
or desirability of a product being tested. The Postal Service must file 
a written request for extension with the Commission at least 60 days 
before the market test is scheduled to terminate.
    (b) The request for extension shall:
    (1) Explain why an extension is necessary to determine the 
feasibility or desirability of the experimental product;
    (2) List the new end date for the market test;
    (3) Calculate the total revenue received by the Postal Service from 
the market test for each fiscal year the market test has been in 
operation and provide supporting documentation for the calculations;
    (4) Estimate the additional revenue that is anticipated by the 
Postal Service for each fiscal year remaining on the market test, 
including the requested extension period, and provide available 
supporting documentation; and
    (5) Provide any additional information necessary for the Commission 
to evaluate the continued consistency with the requirements of 39 U.S.C. 
3641.
    (c) The Commission shall review the Postal Service request for 
extension to ensure that an extension is necessary in order to determine 
the feasibility or desirability of the experimental product and:
    (1) Find that the extension is consistent with the requirements of 
39 U.S.C. 3641;
    (2) Find that the extension is inconsistent with the requirements of 
39 U.S.C. 3641 and provide an opportunity to correct the identified 
deficiencies;
    (3) Find that the extension is inconsistent with the requirements of 
39 U.S.C. 3641 and deny the extension; or
    (4) Direct other action as the Commission considers appropriate.



Sec.  3045.12  Cancellation of market test.

    (a) The Postal Service may cancel a market test at any time. It 
shall file notice of cancellation with the Commission within 10 days of 
cancelling the market test.
    (b) Pursuant to 39 U.S.C. 3641(f), the Commission may direct the 
Postal Service to demonstrate that the market test continues to meet the 
requirements of 39 U.S.C. 3641 and the Commission's rules. The 
Commission, in its discretion, may provide an opportunity for comments.
    (c) Based upon its review, the Commission may:
    (1) Find that the market test is consistent with the requirements of 
39 U.S.C. 3641;
    (2) Find that the market test is inconsistent with the requirements 
of 39 U.S.C. 3641 and provide an opportunity to correct the identified 
deficiencies;
    (3) Find that the market test is inconsistent with the requirements 
of 39 U.S.C. 3641 and cancel the market test; or
    (4) Direct other action as the Commission may consider appropriate.



Sec. Sec.  3045.13-3045.14  [Reserved]



Sec.  3045.15  Dollar amount limitation.

    (a) The Consumer Price Index used for calculations under this part 
is the CPI-U index, as specified in Sec.  3030.141(a) of this chapter.
    (b) An experimental product may only be tested if total revenues 
that are anticipated or received by the Postal Service do not exceed $10 
Million in any fiscal year, as adjusted for the change in the CPI-U 
index, as specified in paragraph (d) of this section ($10 Million 
Adjusted Limitation). Total revenues anticipated or received may exceed 
the $10 Million Adjusted Limitation in any fiscal year if an exemption 
is granted pursuant to Sec.  3045.16.
    (c) For each fiscal year, the $10 Million Adjusted Limitation shall 
reflect the average CPI result during the previous fiscal year 
calculated as described in paragraph (d) of this section. The Commission 
shall publish this figure annually, after the close of the fiscal year, 
on its website at http://www.prc.gov.
    (d) The calculation of the $10 Million Adjusted Limitation involves 
the following steps. First, a simple average CPI-U index was calculated 
for fiscal year 2008 by summing the monthly CPI-U values from October 
2007 through September 2008 and dividing the sum by 12 (Base Average). 
The resulting Base Average is 214.463. Then, a second simple average 
CPI-U index is

[[Page 510]]

similarly calculated for each subsequent fiscal year by summing the 12 
monthly CPI-U values for the previous fiscal year and dividing the sum 
by 12 (Recent Average). Finally, the annual limitation for the current 
fiscal year is calculated by multiplying $10,000,000 by the Recent 
Average divided by 214.463. The result is expressed as a number, rounded 
to the nearest dollar.
    (e) The formula for calculating the $10 Million Adjusted Limitation 
is as follows: $10 Million Adjusted Limitation = $10,000,000 * (Recent 
Average/214.463).

[79 FR 54563, Sept. 11, 2014, as amended at 84 FR 975, Feb. 1, 2019; 85 
FR 9659, 9660, Feb. 19, 2020; 85 FR 81139, Dec. 15, 2020]



Sec.  3045.16  Exemption from dollar amount limitation.

    (a) The Postal Service may request an exemption from the $10 Million 
Adjusted Limitation by filing a written request with the Commission. In 
no instance shall the request for exemption exceed the market test 
dollar amount limitation of $50,000,000 in any fiscal year, as adjusted 
for the change in the CPI-U index, as specified in paragraph (c) of this 
section ($50 Million Adjusted Limitation).
    (b) For each fiscal year, the $50 Million Adjusted Limitation shall 
reflect the average CPI result during the previous fiscal year 
calculated as described in paragraph (c) of this section. The Commission 
shall publish this figure annually, after the close of the fiscal year, 
on its website at http://www.prc.gov.
    (c) The calculation of the $50 Million Adjusted Limitation involves 
the following steps. First, a simple average CPI-U index was calculated 
for fiscal year 2008 by summing the monthly CPI-U values from October 
2007 through September 2008 and dividing the sum by 12 (Base Average). 
The resulting Base Average is 214.463. Then, a second simple average 
CPI-U index is similarly calculated for each subsequent fiscal year by 
summing the 12 monthly CPI-U values for the previous fiscal year and 
dividing the sum by 12 (Recent Average). Finally, the annual limitation 
for the current fiscal year is calculated by multiplying $50,000,000 by 
the Recent Average divided by 214.463. The result is expressed as a 
number, rounded to the nearest dollar.
    (d) The formula for calculating the $50 Million Adjusted Limitation 
is as follows: $50 Million Adjusted Limitation = $50,000,000 * (Recent 
Average/214.463).
    (e) The Postal Service shall file its request for exemption at least 
45 days before it expects to exceed the $10 Million Adjusted Limitation.
    (f) The request for exemption shall:
    (1) Explain how the experimental product will:
    (i) Benefit the public and meet an expected demand;
    (ii) Contribute to the financial stability of the Postal Service; 
and
    (iii) Not result in unfair or otherwise inappropriate competition;
    (2) Calculate the total revenue received by the Postal Service from 
the market test for each fiscal year the market test has been in 
operation, and provide supporting documentation;
    (3) Estimate the additional revenue that is anticipated by the 
Postal Service for each fiscal year remaining on the market test, 
including any extension period granted by the Commission in accordance 
with Sec.  3045.11(c), and provide available supporting documentation; 
and
    (4) Quantify the product specific costs associated with the 
development of the market test; that is, costs incurred before the 
market test is implemented.
    (g) The Commission shall review the request for exemption for 
consistency with the statutory requirements of 39 U.S.C. 3641 and:
    (1) Find that the exemption is consistent with the requirements of 
39 U.S.C. 3641;
    (2) Find that the exemption is inconsistent with the requirements of 
39 U.S.C. 3641 and provide an opportunity to correct the identified 
deficiencies;
    (3) Find that the exemption is inconsistent with the requirements of 
39 U.S.C. 3641 and deny the exemption; or
    (4) Direct other action as the Commission may consider appropriate.

[79 FR 54563, Sept. 11, 2014, as amended at 84 FR 975, Feb. 1, 2019; 85 
FR 9659, 9660, Feb. 19, 2020]

[[Page 511]]



Sec.  3045.17  Prevention of market disruption.

    Notwithstanding the $10 Million Adjusted Limitation or any 
adjustment granted pursuant to Sec.  3045.16, the Commission may limit 
the amount of revenues the Postal Service may obtain from any particular 
geographic market as necessary to prevent the creation of an unfair or 
otherwise inappropriate competitive advantage for the Postal Service or 
any mailer, particularly in regard to small business concerns, as 
defined in Sec.  3010.101(t) of this chapter.

[85 FR 9659, Feb. 19, 2020]



Sec.  3045.18  Request to add a non-experimental product or price 
category based on an experimental product to the product list.

    (a) If the Postal Service seeks to add a non-experimental product or 
price category based on a former or current experimental product to the 
market dominant or competitive product list, the Postal Service shall 
file a request, pursuant to 39 U.S.C. 3642 and part 3040, subpart B of 
this chapter, to add a non-experimental product or price category to the 
applicable product list.
    (b) The Postal Service shall comply with the requirements specified 
in paragraphs (c) through (e) of this section of this section if the 
proposed non-experimental product or price category:
    (1) Offers the same (or similar) service as a former or current 
experimental product;
    (2) Has the same distinct cost or market characteristic as a former 
or current experimental product; or
    (3) Uses (or is based on) data or assumptions from a former or 
current market test proceeding.
    (c) A request filed under this section shall:
    (1) Identify the market test and docket number that the proposed 
non-experimental product or price category is based on;
    (2) Explain the relationship between the proposed non-experimental 
product or price category and market test or experimental product;
    (3) Identify any assumptions from the market test that the request 
uses or is based on;
    (4) Include all data from data collection reports filed during the 
market test in the financial model supporting the request, or separately 
identify and explain any differences between the data collection reports 
filed during the market test and the data used in the financial model 
supporting the request; and
    (5) Quantify the product specific costs associated with the 
development of the market test; that is, costs incurred before the 
market test was implemented.
    (d) The Postal Service must provide advance notice of a request 
filed under this section.
    (1)(i) The requirements in this paragraph (d)(1) apply if the Postal 
Service seeks to add a non-experimental product or price category based 
on an experimental product to the competitive product list as an NSA. If 
the Postal Service seeks to continue the services provided under a 
market test immediately when the market test ends with no interruption 
in service, the Postal Service must file a request under this section at 
least 45 days before:
    (A) The market test expires (including any extension period 
granted); or
    (B) The market test is expected to exceed any authorized limitation 
specified in Sec. Sec.  3045.15 and 3045.16 during any fiscal year, 
whichever is earlier.
    (ii) In all other instances, the Postal Service must file a request 
under this section at least 45 days before the requested date for the 
Commission's decision.
    (2)(i) The requirements in this paragraph (d)(2) apply if the Postal 
Service seeks to add a non-experimental product or price category based 
on an experimental product to the market dominant or competitive product 
list as a product other than a competitive NSA. If the Postal Service 
seeks to continue the services provided under a market test immediately 
when the market test ends with no interruption in service, the Postal 
Service must file a request under this section at least 60 days before:
    (A) The market test expires (including any extension period 
granted); or

[[Page 512]]

    (B) The market test is expected to exceed any authorized limitation 
specified in Sec. Sec.  3045.15 and 3045.16 during any fiscal year, 
whichever is earlier.
    (ii) In all other instances, the Postal Service must file a request 
under this section at least 60 days before the requested date for the 
Commission's decision.
    (e) The Postal Service shall also file a notice of a request filed 
under this section in the market test proceeding's docket if the market 
test proceeding's docket is an active case before the Commission. This 
notice shall include the applicable docket number(s) for the proceeding 
evaluating the request.

[84 FR 975, Feb. 1, 2019, as amended at 85 FR 9659, Feb. 19, 2020; 85 FR 
29325, May 15, 2020]



Sec.  3045.19  [Reserved]



Sec.  3045.20  Data collection and reporting requirements.

    (a) A notice of a market test shall include a data collection plan 
for the market test as required by Sec.  3045.3(a)(2)(vi). Data 
collection plans shall include, at a minimum:
    (1) The revenue by fiscal quarter received to date by the Postal 
Service from the market test;
    (2) Attributable costs incurred in conducting the market test, 
including product specific costs related to the administration of the 
market test; and
    (3) Volumes of the experimental product by fiscal quarter.
    (b) The Commission may request additional information or data as it 
deems appropriate.
    (c) To assess the potential impact of a market test in a particular 
geographic market, the Commission may require the Postal Service to 
report the revenues from the market test for specified geographic 
markets.
    (d) The Postal Service shall file the information required by the 
data collection plan in data collection reports. Data collection reports 
must be filed within 40 days after the close of each fiscal quarter 
during which the market test is offered, or such other period as the 
Commission may prescribe.
    (e) The Postal Service shall file in its Annual Compliance Report 
information on each market test conducted during the fiscal year 
pursuant to Sec.  3050.21(h) of this chapter.

[79 FR 54563, Sept. 11, 2014, as amended at 85 FR 9659, Feb. 19, 2020]

[[Page 513]]



  SUBCHAPTER F_PERIODIC REPORTING, ACCOUNTING PRACTICES, AND TAX RULES





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.
3050.50 Information pertaining to cost and service for flat-shaped mail.
3050.55 Information pertaining to cost reduction initiatives.
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.
    (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

[[Page 514]]

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 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

[[Page 515]]

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 website.

[74 FR 20850, May 5, 2009, as amended at 85 FR 9660, Feb. 19, 2020]



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.

[79 FR 24336, Apr. 30, 2014]



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 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.

[74 FR 20850, May 5, 2009, as amended at 85 FR 81139, Dec. 15, 2020]



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

[[Page 516]]

shall provide the items in paragraphs (b) through (o) 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;
    (4) The factual and analytical bases for any claim that one or more 
of the exception provisions of 39 U.S.C. 3622(e)(2)(A) through (e)(2)(D) 
or 39 U.S.C. 3622(e)(3)(A) through (e)(3)(B) apply; and
    (5) For each workshare discount that is provided in connection with 
a subclass of mail, consisting exclusively of mail matter of 
educational, cultural, scientific, or informational value (39 U.S.C. 
3622(e)(2)(C)), exceeded the cost avoided by the Postal Service for not 
providing the applicable service, and was not set in accordance with at 
least one specific provision appearing in Sec.  3030.262(b) through (d) 
of this chapter, the information specified in paragraphs (e)(5)(i) 
through (iii) of this section:
    (i) The number of mail owners receiving the workshare discount;
    (ii) The number of mail owners for the applicable product or 
products; and
    (iii) An explanation of how the workshare discount promotes the 
public interest, even though the workshare discount substantially 
exceeds the cost avoided by the Postal Service;
    (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;
    (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; and
    (6) Provide financial or other supporting documentation that 
demonstrates that non-compensatory market dominant negotiated service 
agreements improve the net financial position of the Postal Service over 
default rates or enhance the performance of mail preparation, 
processing, transportation, or other functions.
    (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) For all market dominant and competitive products:

[[Page 517]]

    (1) Provide a distribution breakdown of fee revenues, including all 
underlying calculations and source workpapers; and
    (2) Provide any third-party service performance results upon which 
any financial penalty or bonus is determined, and identify the amount of 
any forfeited revenue;
    (k) Provide all total workhour data and data sources showing 
workhour measurements by Labor Distribution Code;
    (l) For the Inbound Letter Post product, provide revenue, volume, 
attributable cost, and contribution data by Universal Postal Union 
country group and by shape for the fiscal year subject to review and 
each of the preceding 4 fiscal years;
    (m) Input data and calculations used to produce the annual Total 
Factor Productivity estimates;
    (n) Copies of notifications to the Postal Service by the Office of 
Personnel Management (OPM) of annual determinations of the funding 
amounts specific to payments at the end of each fiscal year computed 
under 5 U.S.C. 8909a(d)(2)(B) and 5 U.S.C. 8909a(d)(3)(B)(ii); 5 U.S.C. 
8348(h)(2)(B) and 5 U.S.C. 8423(b)(3)(B); 5 U.S.C. 8423(b)(1)(B) and 5 
U.S.C. 8423(b)(2); and
    (o) 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.

[74 FR 20850, May 5, 2009, as amended at 83 FR 49293, Oct. 1, 2018; 85 
FR 81139, Dec. 15, 2020]



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;
    (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,

[[Page 518]]

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;
    (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 40 days of the close of Quarters 1, 2, and 3 of the 
fiscal year and 60 days after Quarter 4, but no later than the filing of 
reports filed pursuant to section 3050.40(a) or 3050.40(b);
    (d) Quarterly Statistics Report, including estimates by shape, 
weight, and indicia, within 40 days of the close

[[Page 519]]

of Quarters 1, 2, and 3 of the fiscal year and 60 days after Quarter 4 
but no later than the filing of reports filed pursuant to section 
3050.40(a) or 3050.40(b); and
    (e) Billing determinants within 60 days of the close of Quarters 1, 
2, and 3 of the fiscal year and 90 days after Quarter 4.

[74 FR 20850, May 5, 2009, as amended at 83 FR 49293, Oct. 1, 2018]



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 reports for the last months of Quarters 
1, 2, and 3 of the fiscal year shall be provided at the time that the 
Form 10-Q report is provided and the report for the last month of 
Quarter 4 of the fiscal year shall be provided at the time that the Form 
10-K report is provided;
    (1) The report shall follow the formats as shown below.

                                    Table 1--USPS Monthly Financial Statement
                                               Month, Fiscal Year
                                                  [$ millions]
----------------------------------------------------------------------------------------------------------------
                                              Current Period                           Year-to-Date
                                 -------------------------------------------------------------------------------
                                                          % Plan  % SPLY                          % Plan  % SPLY
                                  Actual   Plan    SPLY     Var     Var   Actual   Plan    SPLY     Var     Var
----------------------------------------------------------------------------------------------------------------
Revenue:
    Operating Revenue
    Other Revenue
Total Revenue
Operating Expenses
    Personnel Compensation and
     Benefits
    Transportation
    Supplies and Services
    Other Services
Total Operating Expenses
Net Operating Income
Interest Income
Interest Expense
Total Net Income
Other Operating Statistics
    Mail Volume (Millions)
        Total Market Dominant
         Volumes
        Total Competitive
         Product Volumes
Total Mail Volumes
Total Workhours (Millions)
Total Career Employees
Total Non-Career Employees
----------------------------------------------------------------------------------------------------------------


[[Page 520]]


                                                          Table 2--Mail Volume and Mail Revenue
                                                                   Month, Fiscal Year
                                                                       [Thousands]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                      Current Period                                      Year-to-Date
                                                   -----------------------------------------------------------------------------------------------------
                                                         Actual            SPLY          % SPLY Var         Actual            SPLY          % SPLY Var
--------------------------------------------------------------------------------------------------------------------------------------------------------
Market Dominant Products:
    First Class:
        Volume
        Revenue
    Periodicals:
        Volume
        Revenue
USPS Marketing Mail:
        Volume
        Revenue
    Package Services:
        Volume
        Revenue
    All Other Market Dominant Mail:
        Volume
        Revenue
Total Market Dominant Products:
        Volume
        Revenue
Total Competitive Products
        Volume
        Revenue
Total Operating Revenue:
--------------------------------------------------------------------------------------------------------------------------------------------------------
    Total Volume
--------------------------------------------------------------------------------------------------------------------------------------------------------


[[Page 521]]

[GRAPHIC] [TIFF OMITTED] TR05MY09.005

[GRAPHIC] [TIFF OMITTED] TR05MY09.006

    (2) [Reserved]
    (c) National Consolidated Trial Balances and the Revenue and Expense 
Summary on the 24th day of the following month, except that the reports 
for the last month of Quarters 1, 2, and

[[Page 522]]

3 of the fiscal year shall be provided at the time that the Form 10-Q 
report is provided and the report for the last month of Quarter 4 of the 
fiscal year shall be provided at the time that the Form 10-K report is 
provided;
    (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).

[74 FR 20850, May 5, 2009, as amended at 83 FR 49294, Oct. 1, 2018]



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)

[[Page 523]]

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.



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.  3050.50  Information pertaining to cost and service for
flat-shaped mail.

    (a) The reports in paragraphs (b) through (f) of this section shall 
be filed with the Commission at the times indicated.
    (b) Within 95 days after the end of each fiscal year, the Postal 
Service shall file a financial report that analyzes data from the fiscal 
year for all mail products that consist of more than 80 percent flat-
shaped mail. At a minimum, the report shall include:
    (1) Volume and shape workpapers that identify products that contain 
more than 80 percent flat-shaped mail (flat-shaped products).
    (2) Unit attributable cost workpapers for each flat-shaped product 
that is disaggregated into the following cost categories: Mail 
processing unit cost, delivery unit cost, vehicle service driver unit 
cost, purchased transportation unit cost, window service unit cost, and 
other unit cost.
    (3) A narrative that explains the methodology used to calculate the 
unit attributable cost categories described in paragraph (b)(2) of this 
section.
    (4) A narrative supported by workpapers that identifies flat-shaped 
products for which the percentage change in average unit attributable 
cost was greater than the percentage change in total market dominant 
average unit attributable cost for the same fiscal year. The narrative 
must include identification of cost categories that are driving above 
average change in unit attributable cost for flat-shaped product and a 
specific plan to reduce unit attributable cost for the identified flat-
shaped product.
    (5) An analysis of volume trends, and mail mix changes for flat-
shaped products from FY 2013 to present, which includes, at a minimum, a 
comparison of:
    (i) The aggregate unit attributable costs for combined flat-shaped 
products for each fiscal year,
    (ii) The calculated estimate of aggregate unit attributable costs 
for combined flat-shaped products for each fiscal year, using FY 2013 
fiscal year's volume distribution,
    (iii) A narrative that identifies drivers of changes in volume 
trends and mail mix, and

[[Page 524]]

    (iv) A narrative that explains the methodology used to calculate the 
estimated unit attributable cost described in paragraph (b)(5)(ii) of 
this section.
    (6) An analysis of the Flat Sequencing System (FSS), which includes, 
at a minimum, the percent of flat-shaped mail destinating in a FSS zone 
that were not finalized on FSS equipment, the cost of processing flat-
shaped mail on the FSS, and the delivery point sequence (DPS) percentage 
of FSS mail. In addition, a narrative that identifies drivers of changes 
in the results of the analysis between fiscal years.
    (7) A manual processing analysis, which includes, at a minimum, the 
cost of manually processing flat-shaped mail, the percent of flat-shaped 
mail that was manually processed, and the percent of flat-shaped mail 
that was entered at automation prices. In addition, a narrative that 
identifies drivers of changes in the results of the analysis between 
fiscal years.
    (8) An estimate, with supporting workpapers, of the cost impact of 
bundle processing on flat-shaped products for the fiscal year. If no 
estimate is available, provide a timeline to estimate the cost impact of 
bundle processing on flat-shaped products.
    (9) An estimate, with supporting workpapers, of the cost impact of 
low productivity on automated equipment on flat-shaped products for the 
fiscal year. If no estimate is available, provide a timeline to estimate 
the cost impact of low productivity on automated equipment on flat-
shaped products.
    (10) An estimate, with supporting workpapers, of the cost impact of 
manual processing on flat-shaped products for the fiscal year. If no 
estimate is available, provide a timeline to estimate the cost impact of 
manual processing on flat-shaped products.
    (11) An estimate, with supporting workpapers, of the cost impact of 
allied operations on flat-shaped products for the fiscal year. If no 
estimate is available, provide a timeline to estimate the cost impact of 
allied operations on flat-shaped products.
    (12) An estimate, with supporting workpapers, of the cost impact of 
transportation on flat-shaped products for the fiscal year. If no 
estimate is available, provide a timeline to estimate the cost impact of 
transportation on flat-shaped products.
    (13) An estimate, with supporting workpapers, of the cost impact of 
last mile/delivery on flat-shaped products for the fiscal year. If no 
estimate is available, provide a timeline to estimate the cost impact of 
last mile/delivery on flat-shaped products.
    (c) Within 95 days after the end of each fiscal year, the Postal 
Service shall file a service report that analyzes data from the fiscal 
year for all mail products that consist of more than 80 percent flat-
shaped mail. At a minimum, the analysis must include:
    (1) Service performance scores for all flat-shaped products.
    (2) An estimate, with supporting workpapers, of the service impact 
of bundle processing on flat-shaped products for the fiscal year. If no 
estimate is available, provide a timeline to estimate the service impact 
of bundle processing on flat-shaped products.
    (3) An estimate, with supporting workpapers, of the service impact 
of low productivity on automated equipment on flat-shaped products for 
the fiscal year. If no estimate is available, provide a timeline to 
estimate the service impact of low productivity on automated equipment 
on flat-shaped products.
    (4) An estimate, with supporting workpapers, of the service impact 
of manual processing on flat-shaped products for the fiscal year. If no 
estimate is available, provide a timeline to estimate the service impact 
of manual processing on flat-shaped products.
    (5) An estimate, with supporting workpapers, of the service impact 
of allied operations on flat-shaped products for the fiscal year. If no 
estimate is available, provide a timeline to estimate the service impact 
of allied operations on flat-shaped products.
    (6) An estimate, with supporting workpapers, of the service impact 
of transportation on flat-shaped products for the fiscal year. If no 
estimate is available, provide a timeline to estimate the service impact 
of transportation on flat-shaped products.
    (7) An estimate, with supporting workpapers, of the service impact 
of

[[Page 525]]

last mile/delivery on flat-shaped products for the fiscal year. If no 
estimate is available, provide a timeline to estimate the service impact 
of last mile/delivery on flat-shaped products.
    (d) Within 95 days after the end of each fiscal year, the Postal 
Service shall file an analysis of costs by operationally relevant 
grouping from FY 2013 to present.
    (1) The report shall utilize fiscal year data filed in accordance 
with Sec.  3050.22, and Sec.  3050.28(c) and (d) and any other data 
necessary to complete the analysis.
    (2) The report shall also include a narrative that explains the 
methodology used to calculate costs by operationally relevant grouping.
    (e) Within 95 days after the end of each fiscal year, the Postal 
Service shall file the following reports that include data by both 
quarter and fiscal year, as well as at the national level and at the 
facility level unless otherwise specified. The reports shall include, at 
a minimum, five years of quarterly historical fiscal year data covering 
the reporting year and the previous four fiscal years.
    (1) Bundle Breakage Visibility Reports which include, at a minimum, 
number of bundles processed, number of bundles processed by class, 
product, facility, and machine type, number of broken bundles; and 
number of broken bundles by class, product, facility, and machine type.
    (2) Mail Processing Variance Reports, which include, at a minimum, 
for each machine type that process flat-shaped mail: Category, plant/
facility, volume, actual workhours, earned workhours (target hours), 
productivity, variance, and percent achieved, and target productivities, 
including narrative that explains methodology used to develop target.
    (3) eFlash Report, which includes, at a minimum manual letter and 
flats volume, manual letter and flats workhours, manual letter and flats 
cost analysis, manual letter and flats handling time, and manual letter 
and flats handling cost per piece.
    (4) Work in Process metrics, which include, at a minimum, 
measurement of: unload scan to bundle sorter scan, unload scan to tray 
mechanization scan, bundle sorter scan to mail processing equipment 
piece scan, tray mechanization scan to next automation scan, and unload 
scan to first automation scan.
    (5) First-Class Mail Root Cause Point Impact Report, which includes, 
at a minimum, root cause, shape, service standard, point impact, rank, 
results attributed to air transit Automated Area Distribution Center 
(AADC)/Area Distribution Center (ADC) processing delays, and results 
attributed to surface transit AADC/ADC processing delays.
    (6) SVWeb Report, which includes, at a minimum, on-time departure 
percentage, on-time arrival percentage, space utilization type by 
container type, average load percentage, total number of late 
containers, misrouted containers based on unload scans at unexpected 
site, National Performance Assessment (NPA) goals, goal achievement, the 
total score for six required scans, trips on time, space utilization 
targets, and comparison of fiscal year space utilization to targets.
    (7) Last Mile Impact Report, which includes, at a minimum, overall 
on-time score, on-time score at last processing, and last mile impact 
for all flat-shaped products at each service standard.
    (8) For each report listed in paragraphs (e)(1) through (7) of this 
section, the Postal Service shall provide a narrative that describes any 
changes made to underlying data systems during the fiscal year that 
impact the methodology used to produce the report.
    (9) For each report listed in paragraphs (e)(1) through (7) of this 
section, the Postal Service shall provide a narrative that discusses 
trends, changes, and reasons for any changes in data within the report.
    (10) If any of the reports listed in paragraphs (e)(1) through (7) 
of this section no longer exist by that name in any year, the Postal 
Service must provide the closest successor to that report to provide the 
required information. The Postal Service must identify all differences 
between the original report and the successor report, and provide a 
narrative that explains the impact of using the successor report opposed 
to the original report.

[[Page 526]]

    (f) Within 95 days after the end of each fiscal year, the Postal 
Service shall file a report that identifies all national operational 
changes and/or initiatives that occurred during the fiscal year related 
to flat-shaped mail and all planned national operational changes and/or 
initiatives for the next fiscal year related to flat-shaped mail. The 
operational changes and/or initiatives should impact operations related 
to flat-shaped mail, impact the cost of flat-shaped mail, and/or impact 
the service of flat-shaped mail.
    (1) The report shall identify data from paragraphs (b), (c), (d), 
and/or (e) of this section that will be impacted by each operational 
change/initiative.
    (2) The report shall also include an estimate, with supporting 
workpapers, of the impact of each operational change/initiative on the 
data selected in paragraph (f)(1) of this section.
    (g) Within 95 days after the end of each fiscal year, the Postal 
Service shall file a report that identifies all data enhancements that 
occurred during the fiscal year related to data systems that affect 
flat-shaped mail. The data enhancements identified should have an impact 
on measuring, tracking, and/or reporting on flat-shaped mail cost, 
operations, and/or service.

[84 FR 20806, May 13, 2019]



Sec.  3050.55  Information pertaining to cost reduction initiatives.

    (a) The reports in paragraphs (b) through (f) of this section shall 
be filed with the Commission at the times indicated in paragraphs (b) 
through (f).
    (b) Within 95 days after the end of each fiscal year, the Postal 
Service shall file a financial report that analyzes cost data from the 
fiscal year. For purposes of this paragraph (b), the percentage change 
shall compare the fiscal year under review to the previous fiscal year. 
At a minimum, the report shall include:
    (1) For all market dominant mail, the percentage change in total 
unit attributable cost;
    (2) For each market dominant mail product, the percentage change in 
unit attributable cost;
    (3) For the system as a whole, total average cost per piece, which 
includes all Postal Service competitive and market dominant attributable 
costs and institutional costs;
    (4) The percentage change in total average cost per piece;
    (5) Market dominant unit attributable cost by product;
    (6) If the percentage change in unit attributable cost for a market 
dominant mail product is more than 0.0 percent and exceeds the 
percentage change in total market dominant mail unit attributable cost, 
then the following information shall be provided:
    (i) Unit attributable cost workpapers for the product disaggregated 
into the following cost categories: mail processing unit cost, delivery 
unit cost, vehicle service driver unit cost, purchased transportation 
unit cost, window service unit cost, and other unit cost;
    (ii) A narrative that identifies cost categories that are driving 
above average increases in unit attributable cost for the product and 
explains the reason for the above-average increase; and
    (iii) A specific plan to reduce unit attributable cost for the 
product; and
    (7) An analysis of volume trends and mail mix changes for each 
market dominant mail product from fiscal year 2017 through the end of 
the fiscal year under review, which shall include at a minimum:
    (i) A comparison of actual unit attributable costs and estimated 
unit attributable costs for each market dominant mail product, using the 
volume distribution from fiscal year 2017;
    (ii) A narrative that identifies the drivers of change in volume 
trends and the mail mix; and
    (iii) A narrative that explains the methodology used to calculate 
the estimated unit attributable costs as required by paragraph (b)(7)(i) 
of this section.
    (c) Within 95 days after the end of each fiscal year, the Postal 
Service shall file a report with analysis of each planned cost reduction 
initiative that is expected to require Postal Service total expenditures 
of $5 million or more over the duration of the initiative. At a minimum, 
the report shall include:
    (1) A narrative that describes each cost reduction initiative 
planned for

[[Page 527]]

future fiscal years, including the status, the expected total 
expenditure, start date, end date, and any intermediate deadlines;
    (2) Identification of a metric to measure the impact of each planned 
cost reduction initiative identified in paragraph (c)(1) of this 
section, a narrative describing the selected metric, a narrative 
explaining the reason for selecting that metric, and a schedule 
approximating the months and fiscal years in which the cost reduction 
impact is expected to be measureable; and
    (3) Estimates of the expected impact of each planned cost reduction 
initiative, with supporting workpapers, using the metric identified in 
paragraph (c)(2) of this section, total market dominant mail 
attributable unit cost, and total unit cost as calculated pursuant to 
paragraph (b)(3) of this section.
    (d) Within 95 days after the end of each fiscal year, the Postal 
Service shall file a report that describes each active cost reduction 
initiative during the fiscal year which incurred or is expected to incur 
Postal Service expenditures of $5 million or more over the duration of 
the initiative. At a minimum, the report shall include:
    (1) The information described in paragraphs (c)(1) through (3) of 
this section, based on actual data for the fiscal year, and a specific 
statement as to whether the initiative actually achieved the expected 
impact as measured by the selected metric;
    (2) An explanation of the trends, changes, or other reasons that 
caused any variance between the actual information provided under 
paragraph (d)(1) of this section and the estimated information 
previously provided under paragraphs (c)(1) through (3) of this section, 
if applicable;
    (3) A description of any mid-implementation adjustments the Postal 
Service has taken or will take to align the impacts with the schedule; 
and
    (4) Any revisions to the schedule of cost reduction impacts for 
future fiscal years.
    (e) Within 95 days after the end of each fiscal year, the Postal 
Service shall file a report that summarizes all projects associated with 
a Decision Analysis Report for the fiscal year. At a minimum, the report 
shall include:
    (1) A description of each project;
    (2) The status of each project;
    (3) An estimate of cost savings or additional revenues from each 
project; and
    (4) The return on investment expected from each project.
    (f) Within 95 days after the end of each fiscal year, the Postal 
Service shall file a report that summarizes all planned projects that 
have an approved Decision Analysis Report for the next fiscal year. At a 
minimum, the report shall include:
    (1) A description of each planned project;
    (2) The status of each project;
    (3) An estimate of the cost savings or additional revenues expected 
from each project; and
    (4) The return on investment expected from each project.

[85 FR 81140, Dec. 15, 2020]



Sec.  3050.60  Miscellaneous reports and documents.

    (a) The reports in paragraphs (b) through (f) of this section shall 
be provided at the times indicated in paragraphs (b) through (f).
    (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 electronic 
form;
    (d) Household Diary Study (when completed);
    (e) 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
    (f) 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

[[Page 528]]

Docket No. R2006-1 (by July 1 of each year).

[74 FR 20850, May 5, 2009, as amended at 83 FR 49295, Oct. 1, 2018; 85 
FR 81141, Dec. 15, 2020]



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 [Reserved]
3055.20 First-Class Mail.
3055.21 USPS Marketing Mail.
3055.22 Periodicals.
3055.23 Package Services.
3055.24 Special Services.
3055.25 Nonpostal Products.

    Subpart B_Periodic Reporting of Service Performance Achievements

3055.30 Periodic reporting of service performance achievements.
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 USPS Marketing 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.

                 Subpart D_Public Performance Dashboard

3055.100 Definitions applicable to this subpart.
3055.101 Public Performance Dashboard.
3055.102 Contents of the Public Performance Dashboard.
3055.103 Format for data provided in the Public Performance Dashboard.

    Authority: 39 U.S.C. 503; 3652; 3653; 3692(b) and (c); 3705.

    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 3040, appendix A to subpart A of part 
3040 of this chapter (and for each competitive nonpostal service product 
specified in the Mail Classification Schedule in part 3040, appendix B 
to subpart A of part 3040 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.

[88 FR 10038, Feb. 16, 2023]



Sec.  3055.2  Contents of the annual report of service performance
achievements.

    (a) The items in paragraphs (b) through (n) 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. If there 
has been a change to a service standard(s) since the previous report, a 
description of and reason for the change shall be provided. If there 
have been no changes to service standard(s) since the previous report, a 
certification stating this fact shall be provided.
    (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;

[[Page 529]]

    (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. Any graphical representation of 
data provided shall also be accompanied by the underlying data presented 
in spreadsheet form.
    (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.
    (l) For each Market Dominant product, the average time in which the 
product was delivered, measured by actual delivery days, during the 
previous fiscal year, provided at the District, Postal Administrative 
Area, and National levels. ``Actual delivery days'' shall include all 
days in which Market Dominant products are eligible for delivery, 
excluding Sundays and holidays. The report shall include the following 
information on dispersion around the average:
    (1) The percent of mailpieces delivered within +1 day of the 
applicable service standard;
    (2) The percent of mailpieces delivered within +2 days of the 
applicable service standard; and
    (3) The percent of mailpieces delivered within +3 days of the 
applicable service standard.
    (m) A description of each Site-Specific Operating Plan, including 
operation completion time performance (as a percentage rounded to one 
decimal place) for each Site-Specific Operating Plan measurement 
category during the previous fiscal year. Such information shall be at 
the National level and disaggregated by Division and Region.
    (n) A description of the total mail volumes measured and excluded 
from measurement. Such description shall include:
    (1) For each class of Market Dominant products (except Special 
Services), a report of the reasons that mailpieces were excluded from 
measurement during the previous fiscal year. The report shall include:
    (i) The exclusion reason;
    (ii) The exclusion description;
    (iii) The number of mailpieces excluded from measurement, which is 
the sum of all mailpieces excluded from measurement for the individual 
exclusion reason; and
    (iv) The exclusion reason as a percent of total mailpieces excluded 
from measurement, which is the number of mailpieces excluded from 
measurement (i.e., provided in paragraph (n)(1)(iii) of this section) 
divided by the sum of all mailpieces excluded from measurement across 
all exclusion reason categories (i.e., the sum of all values provided in 
paragraph (n)(1)(iii) of this section).
    (2) The report described in paragraph (n)(1) of this section shall 
follow the format as shown below:

[[Page 530]]



                      Table 1 to Paragraph (n)(2)--Exclusion Reasons Report for Fiscal Year
----------------------------------------------------------------------------------------------------------------
                                                                                Number of
                                                                Exclusion       mailpieces     Exclusion reason
                      Exclusion reason                         description    excluded from     as a percent of
                                                                               measurement     total exclusions
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------

    (3) For each class of Market Dominant products and for each Market 
Dominant product (except Special Services), a description of the mail 
volumes measured and un-measured during the previous fiscal year. The 
description shall explain in detail any notations regarding the Postal 
Service's inability to collect any data. Corresponding data shall also 
be provided for the same period last year (SPLY).
    (4) The report described in paragraph (n)(3) of this section shall 
follow the format as shown below:

           Table 2 to Paragraph (n)(4)--Total Mail Measured/Unmeasured Volumes Report for Fiscal Year
----------------------------------------------------------------------------------------------------------------
                                              [caret][caret]          [caret][caret]          [caret][caret]
              Class/product              -----------------------------------------------------------------------
                                           Prior FY      SPLY      Prior FY      SPLY      Prior FY      SPLY
----------------------------------------------------------------------------------------------------------------
Total Number of Pieces (RPW-ODIS).......
----------------------------------------------------------------------------------------------------------------
Total Number of Pieces in Measurement...
----------------------------------------------------------------------------------------------------------------
Total Number of Pieces Eligible for Full-
 Service IMb............................
----------------------------------------------------------------------------------------------------------------
Total Number of Full-Service IMb Pieces
 Included in Measurement................
----------------------------------------------------------------------------------------------------------------
Total Number of Full-Service IMb Pieces
 Excluded from Measurement..............
----------------------------------------------------------------------------------------------------------------
Total Number of Pieces Not in
 Measurement............................
----------------------------------------------------------------------------------------------------------------
% of Pieces in Measurement Compared to
 Total Pieces...........................
----------------------------------------------------------------------------------------------------------------
% of Pieces Not in Measurement Compared
 to Total Pieces........................
----------------------------------------------------------------------------------------------------------------
% of Full-Service IMb Pieces in
 Measurement Compared to Total IMb Full-
 Service Pieces.........................
----------------------------------------------------------------------------------------------------------------
% of Full-Service IMb Pieces Not in
 Measurement Compared to Total IMb Full-
 Service Pieces.........................
----------------------------------------------------------------------------------------------------------------

    (5) Descriptions of the current methodologies used to verify the 
accuracy, reliability, and representativeness of service performance 
data for each service performance measurement system.

[75 FR 38742, July 6, 2010, as amended at 85 FR 81141, Dec. 15, 2020; 88 
FR 10038, Feb. 16, 2023]



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

[[Page 531]]

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
    (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  [Reserved]



Sec.  3055.20  First-Class Mail.

    (a) For each of the Single-Piece Letters/Postcards, Presorted 
Letters/Postcards, and Flats 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, 
3-day, 4-day, and 5-day service standards, as well as in the aggregate 
for the 3-to-5-day service standards.
    (b) For each of the Outbound Single-Piece First-Class Mail 
International and Inbound Letter Post 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 2-
day, 3-day, 4-day, and 5-day service standards, as well as in the 
aggregate for the 3-to-5-day service standards and in the aggregate for 
all service standards combined.
    (c) For each product that does not meet its service goal during the 
reporting period, report the point impact data for the top ten root 
causes of on-time service performance failures, at the Postal 
Administrative Area and National levels, during the previous fiscal 
year. ``Point impact data'' means the number of percentage points by 
which on-time performance decreased due to a specific root cause of 
failure. Identification and a description of all potential root causes 
of failure assigned during the previous fiscal year and any changes to 
the Postal Service's methodology for calculating point impact data shall 
be included.

[88 FR 10039, Feb. 16, 2023]



Sec.  3055.21  USPS Marketing Mail.

    (a) For each product within the USPS Marketing Mail class, report 
the on-time service performance (as a percentage rounded to one decimal 
place).
    (b) For each product within the USPS Marketing Mail class that does

[[Page 532]]

not meet its service goal during the reporting period, report the point 
impact data for the top ten root causes of on-time service performance 
failures, at the National level, during the previous fiscal year. 
``Point impact data'' means the number of percentage points by which on-
time performance decreased due to a specific root cause of failure. 
Identification and a description of all potential root causes of failure 
assigned during the previous fiscal year and any changes to the Postal 
Service's methodology for calculating point impact data shall be 
included. This requirement shall not apply to USPS Marketing Mail Every 
Door Direct Mail or USPS Marketing Mail Destination Delivery Unit Entry 
Saturation Flats.

[88 FR 10039, Feb. 16, 2023]



Sec.  3055.22  Periodicals.

    (a) For each product within the Periodicals class, report the on-
time service performance (as a percentage rounded to one decimal place).
    (b) For each product within the Periodicals class that does not meet 
its service goal during the reporting period, report the point impact 
data for the top ten root causes of on-time service performance 
failures, at the National level, during the previous fiscal year. 
``Point impact data'' means the number of percentage points by which on-
time performance decreased due to a specific root cause of failure. 
Identification and a description of all potential root causes of failure 
assigned during the previous fiscal year and any changes to the Postal 
Service's methodology for calculating point impact data shall be 
included.

[88 FR 10040, Feb. 16, 2023]



Sec.  3055.23  Package Services.

    (a) For each product within the Package Services class, report the 
on-time service performance (as a percentage rounded to one decimal 
place).
    (b) For each product within the Package Services class that does not 
meet its service goal during the reporting period, report the point 
impact data for the top ten root causes of on-time service performance 
failures, at the National level, during the previous fiscal year. 
``Point impact data'' means the number of percentage points by which on-
time performance decreased due to a specific root cause of failure. 
Identification and a description of all potential root causes of failure 
assigned during the previous fiscal year and any changes to the Postal 
Service's methodology for calculating point impact data shall be 
included.

[88 FR 10040, Feb. 16, 2023]



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.



Sec.  3055.25  Nonpostal Products.

    (a) For each product that is a nonpostal service authorized pursuant 
to 39 U.S.C. chapter 37, the Postal Service shall report the measure of 
the quality of service.
    (b) If practicable, quantitative measurement (such as on-time 
service performance) along with identification of the underling 
metric(s) shall be provided. If quantitative measurement is not 
practicable, the Postal Service shall so state, explain why it is not 
practicable, and provide qualitative analysis.
    (c) For the Postal Service's program to provide property and 
nonpostal service to other Government agencies under 39 U.S.C. 3704, the 
Postal Service shall report the quality of service for the program as a 
whole.
    (d) The effective date of this section is October 1, 2023.

[88 FR 10040, Feb. 16, 2023]



    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 3040, appendix A to subpart A of part 
3040 of this chapter, the Postal Service shall file a Quarterly Report 
with the Commission addressing service performance achievements for the 
preceding fiscal quarter

[[Page 533]]

(within 40 days of the close of each fiscal quarter, except where 
otherwise specified by the Commission), except where otherwise specified 
by the Commission.

[88 FR 10040, Feb. 16, 2023]



Sec.  3055.31  Contents of the Quarterly Report of service performance
achievements.

    (a) The items in paragraphs (b) through (h) 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. Any graphical representation of 
data provided shall also be accompanied by the underlying data presented 
in spreadsheet form.
    (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.
    (f) For each Market Dominant product, the average time in which the 
product was delivered, measured by actual delivery days, during the 
previous fiscal quarter, provided at the District, Postal Administrative 
Area, and National levels. ``Actual delivery days'' shall include all 
days in which Market Dominant products are eligible for delivery, 
excluding Sundays and holidays. The report shall include the following 
information on dispersion around the average:
    (1) The percent of mailpieces delivered within +1 day of the 
applicable service standard;
    (2) The percent of mailpieces delivered within +2 days of the 
applicable service standard; and
    (3) The percent of mailpieces delivered within +3 days of the 
applicable service standard.
    (g) A description of each Site-Specific Operating Plan, including 
operation completion time performance (as a percentage rounded to one 
decimal place) for each Site-Specific Operating Plan measurement 
category during the previous fiscal quarter. Such information shall be 
at the National level and disaggregated by Division and Region.
    (h) A description of the total mail volumes measured and excluded 
from measurement. Such description shall include:
    (1) For each class of Market Dominant products (except Special 
Services), a report of the reasons that mailpieces were excluded during 
the previous fiscal quarter. The report shall include:
    (i) The exclusion reason;
    (ii) The exclusion reason description;
    (iii) The number of mailpieces excluded from measurement, which is 
the sum of all mailpieces excluded from measurement for the individual 
exclusion reason; and
    (iv) The exclusion reason as a percent of total mailpieces excluded 
from measurement, which is the number of mailpieces excluded from 
measurement (i.e., provided in paragraph (h)(1)(iii) of this section) 
divided by the sum of all mailpieces excluded from measurement across 
all exclusion reason categories (i.e., the sum of all values provided in 
paragraph (h)(1)(iii) of this section).
    (v) The report shall include information for each quarter in the 
applicable fiscal year.
    (2) The report described in paragraph (h)(1) of this section shall 
follow the format as shown below:

[[Page 534]]



                                        Table 1 to Paragraph (h)(2)--Exclusion Reasons Report for Fiscal Quarter
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                  Number of mailpieces excluded from   Exclusion reason as a percent of
                                                                     Exclusion                measurement                      total exclusions
                        Exclusion reason                            description  -----------------------------------------------------------------------
                                                                                     Q1       Q2       Q3       Q4       Q1       Q2       Q3       Q4
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
 
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
 
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
 
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
 
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
 
--------------------------------------------------------------------------------------------------------------------------------------------------------

    (3) For each class of Market Dominant products and for each Market 
Dominant product (except Special Services), a description of the mail 
volumes measured and unmeasured during the previous fiscal quarter. The 
description shall explain in detail any notations regarding the Postal 
Service's inability to collect any data. Corresponding data shall also 
be provided for the same period last year (SPLY). Each report is due 
within 60 days of the close of each fiscal quarter.
    (4) The report described in paragraph (h)(3) of this section shall 
follow the format as shown below:

          Table 2 to Paragraph (h)(4)--Total Mail Measured/Unmeasured Volumes Report for Fiscal Quarter
----------------------------------------------------------------------------------------------------------------
                                              [caret][caret]          [caret][caret]          [caret][caret]
              Class/product              -----------------------------------------------------------------------
                                           Prior FQ      SPLY      Prior FQ      SPLY      Prior FQ      SPLY
----------------------------------------------------------------------------------------------------------------
Total Number of Pieces (RPW-ODIS).......
----------------------------------------------------------------------------------------------------------------
Total Number of Pieces in Measurements..
----------------------------------------------------------------------------------------------------------------
Total Number of Pieces Eligible for Full-
 Service IMb............................
----------------------------------------------------------------------------------------------------------------
Total Number of Full-Service IMb Pieces
 Included in Measurement................
----------------------------------------------------------------------------------------------------------------
Total Number of Full-Service IMb Pieces
 Excluded from Measurement..............
----------------------------------------------------------------------------------------------------------------
Total Number of Pieces Not in
 Measurement............................
----------------------------------------------------------------------------------------------------------------
% of Pieces in Measurement Compared to
 Total Pieces...........................
----------------------------------------------------------------------------------------------------------------
% of Pieces Not in Measurement Compared
 to Total Pieces........................
----------------------------------------------------------------------------------------------------------------
% of Full-Service IMb Pieces in
 Measurement Compared to Total IMb Full-
 Service Pieces.........................
----------------------------------------------------------------------------------------------------------------
% of Full-Service IMb Pieces Not in
 Measurement Compared to Total IMb Full-
 Service Pieces.........................
----------------------------------------------------------------------------------------------------------------

    (i) A report of quarterly third-party audit results of its internal 
service performance measurement system for Market Dominant products. 
This report shall include a description of the audit measures used and 
the audit results specific to inbound and outbound single-piece First-
Class Mail International and the Green Card option of the Return Receipt 
service. For any measure deemed by the auditor to be not achieved or 
only partially achieved, the Postal Service shall include in its report 
an explanation of its

[[Page 535]]

plan to achieve said measure in the future. Each report is due within 60 
days of the close of each fiscal quarter.

[75 FR 38742, July 6, 2010, as amended at 88 FR 10040, Feb. 16, 2023]



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, Presorted Letters/Postcards, and 
Flats. For each of the Single-Piece Letters/Postcards, Presorted 
Letters/Postcards, and Flats 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, 
3-day, 4-day, and 5-day service standards, as well as in the aggregate 
for the 3-to-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, 
3-day, 4-day, and 5-day service standards, as well as in the aggregate 
for the 3-to-5-day service standards, provided at the District, Postal 
Administrative Area, and National levels.
    (b) Outbound Single-Piece First-Class Mail International and Inbound 
Letter Post. For each of the Outbound Single-Piece First-Class Mail 
International and Inbound Letter Post 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 2-day, 3-day, 4-
day, and 5-day service standards, as well as in the aggregate for the 3-
to-5-day service standards and in the aggregate for all service 
standards combined, 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 mail subject to the overnight, 2-day, 
3-day, 4-day, and 5-day service standards, as well as in the aggregate 
for the 3-to-5-day service standards and in the aggregate for all 
service standards combined, provided at the Postal Administrative Area 
and National levels.

[88 FR 10041, Feb. 16, 2023]



Sec.  3055.50  USPS Marketing Mail.

    (a) For each product within the USPS Marketing 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, Postal Administrative Area, and National 
levels.
    (b) For each product within the USPS Marketing 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.

[88 FR 10042, Feb. 16, 2023]



Sec.  3055.55  Periodicals.

    (a) In-County Periodicals. For the In-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,

[[Page 536]]

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.

[75 FR 38742, July 6, 2010, as amended at 88 FR 10042, Feb. 16, 2023]



Sec.  3055.60  Package Services.

    (a) For each product within the Package Services class, report the-
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.
    (b) For each product within the Package Services 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 and End-to-End entry 
mail, provided at the District, Postal Administrative Area, and National 
levels.

[88 FR 10042, Feb. 16, 2023]



Sec.  3055.65  Special Services.

    (a) 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, 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 percentage of green cards properly completed and returned;
    (2) The percentage of green cards not properly completed, but 
returned;
    (3) The percentage of mailpieces returned without a green card 
signature; and
    (4) 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; 88 
FR 10042, Feb. 16, 2023]



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 3040, appendix A to subpart A of part 
3040 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

[[Page 537]]

a minimum, the specific reporting requirements presented in Sec. Sec.  
3055.91 through 3055.92.

[85 FR 9659, Feb. 19, 2020]



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;
    (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.



                 Subpart D_Public Performance Dashboard

    Source: 88 FR 10042, Feb. 16, 2023, unless otherwise noted.



Sec.  3055.100  Definitions applicable to this subpart.

    (a) Actual delivery days refers to all days in which Market Dominant 
products are eligible for delivery, excluding Sundays and holidays.
    (b) Election mail refers to items such as ballots, voter 
registration cards, and absentee applications that an authorized 
election official creates for voters.
    (c) Nonprofit mail refers to USPS Marketing Mail mailpieces that 
qualify for reduced rates pursuant to 39 U.S.C. 3626(a)(6) and the 
regulations promulgated thereunder and Periodicals

[[Page 538]]

mailpieces that qualify for reduced rates pursuant to 39 U.S.C. 
3626(a)(4) and the regulations promulgated thereunder.
    (d) Political mail refers to any mailpiece sent for political 
campaign purposes by a registered candidate, a campaign committee, or a 
committee of a political party to promote candidates, referendums, or 
campaigns.



Sec.  3055.101  Public Performance Dashboard.

    The Postal Service shall develop and maintain a publicly available 
website with an interactive web-tool that provides performance 
information for Market Dominant products. This website shall be updated 
on a weekly basis, no later than one month from the date of data 
collection. The website shall include, at a minimum, the reporting 
requirements specified in Sec.  3055.102 and adhere to the formatting 
requirements specified in Sec.  3055.103.



Sec.  3055.102  Contents of the Public Performance Dashboard.

    (a) The items in paragraphs (b) through (p) of this section shall be 
included in the Public Performance Dashboard.
    (b) Within each class of Market Dominant products, for each Market 
Dominant product and each service standard applicable to each Market 
Dominant product:
    (1) The on-time service performance (as a percentage rounded to one 
decimal place) for the Nation;
    (2) The on-time service performance (as a percentage rounded to one 
decimal place) for each Postal Administrative Area; and
    (3) The on-time service performance (as a percentage rounded to one 
decimal place) for each District.
    (c) Within each class of Market Dominant products, for each Market 
Dominant product and each applicable service standard:
    (1) The average time in which the product was delivered, measured by 
actual delivery days, for the Nation;
    (2) The average time in which the product was delivered, measured by 
actual delivery days, for each Postal Administrative Area; and
    (3) The average time in which the product was delivered, measured by 
actual delivery days, for each District.
    (d) Within each class of Market Dominant products, for each Market 
Dominant product and each applicable service standard:
    (1) the on-time service performance (as a percentage rounded to one 
decimal place) for any given time period that can be selected by a 
Dashboard user within the previous two fiscal years (but no earlier than 
FY 2021 for National data and FY 2022 for Area- and District data); and
    (2) the average time in which the product was delivered, measured by 
actual delivery days, for any given time period that can selected by the 
Dashboard user within the previous two fiscal years (but no earlier than 
FY 2021 for National data and FY 2022 for Area- and District data).
    (e) Within each class of Market Dominant products, for each Market 
Dominant product and each applicable service standard:
    (1) The on-time service performance (as a percentage rounded to one 
decimal place) for any given pair of origin/destination Districts that 
can be selected by a Dashboard user; and
    (2) The average time in which the product was delivered, measured by 
actual delivery days, for any given pair of origin/destination Districts 
to be selected by the Dashboard user.
    (f) For identifiable Political mail:
    (1) The processing scores for service performance (as a percentage 
rounded to one decimal place) for the Nation;
    (2) The processing scores for service performance (as a percentage 
rounded to one decimal place) for each Postal Administrative Area; and
    (3) The processing scores for service performance (as a percentage 
rounded to one decimal place) for each District.
    (g) For identifiable Election mail:
    (1) The processing scores for service performance (as a percentage 
rounded to one decimal place) for the Nation;
    (2) The processing scores for service performance (as a percentage 
rounded to one decimal place) for each Postal Administrative Area; and
    (3) The processing scores for service performance (as a percentage 
rounded to one decimal place) for each District.

[[Page 539]]

    (h) For the First-Class Mail that the Postal Service identifies as 
Single-Piece Reply Mail:
    (1) The on-time service performance (as a percentage rounded to one 
decimal place) for the Nation;
    (2) The on-time service performance (as a percentage rounded to one 
decimal place) for each Postal Administrative Area;
    (3) The on-time service performance (as a percentage rounded to one 
decimal place) for each District;
    (4) The average time in which the mailpieces were delivered, 
measured by actual delivery days, for the Nation;
    (5) The average time in which the mailpieces were delivered, 
measured by actual delivery days, for each Postal Administrative Area; 
and
    (6) The average time in which the mailpieces were delivered, 
measured by actual delivery days, for each District.
    (i) For identifiable Nonprofit mail (within Periodicals and USPS 
Marketing Mail classes of mail):
    (1) The processing scores for service performance (as a percentage 
rounded to one decimal place) for the Nation;
    (2) The processing scores for service performance (as a percentage 
rounded to one decimal place) for each Postal Administrative Area; and
    (3) The processing scores for service performance (as a percentage 
rounded to one decimal place) for each District.
    (j) For identifiable Nonprofit mail (within the Periodicals and USPS 
Marketing Mail classes of mail) that does not also qualify as Political 
Mail or Election Mail:
    (1) The processing scores for service performance (as a percentage 
rounded to one decimal place) for the Nation;
    (2) The processing scores for service performance (as a percentage 
rounded to one decimal place) for each Postal Administrative Area; and
    (3) The processing scores for service performance (as a percentage 
rounded to one decimal place) for each District
    (k) The point impact data for the top ten root causes of on-time 
service performance failures, at the Postal Administrative Area and 
National levels. ``Point impact data'' means the number of percentage 
points by which on-time performance decreased due to a specific root 
cause of failure. Identification and a description of all potential root 
causes of failure assigned during the previous fiscal year and any 
changes to the Postal Service's methodology for calculating point impact 
data shall be included.
    (l) For each Market Dominant product and applicable service 
standard, the on-time service performance target currently in effect, as 
well as the on-time service performance target for the previous fiscal 
year.
    (m) A summary of the methodology used to group 5-Digit ZIP Codes 
into the Postal Administrative Areas and Districts with links to more 
detailed explanations if applicable.
    (n) An application that would allow a Dashboard user to initiate a 
query in order to access, for each Market Dominant product and 
applicable service standard, the on-time service performance (as a 
percentage rounded to one decimal place) and average time in which a 
mailpiece is delivered for a District by inputting the user's street 
address, 5-Digit ZIP Code, or post office box.
    (o) Supporting documentation underlying the results presented in the 
Dashboard, including:
    (1) Data sources for each service performance parameter presented in 
the Dashboard, as well as links to each such source;
    (2) Explanations of how the information in the data sources are 
transformed and summarized for presentation on the Dashboard; and
    (3) Exceptions and detailed explanations for each exception, such as 
missing service performance data for a specific product or geographic 
division.
    (p) The items in paragraphs (b) through (o) shall be included within 
the following periods of time.
    (1) Within 60 days after the effective date of this section, the 
Dashboard shall include the required data for each Market Dominant 
product;
    (2) Within 150 days after the effective date of this section, the 
Dashboard shall include the required data for each Market Dominant 
class;
    (3) Within 210 days after the effective date of this section, the 
Dashboard shall include the required data for each service standard, for 
identifiable Nonprofit Mail, and for the First-Class

[[Page 540]]

Mail that the Postal Service identifies as Single-Piece Reply Mail; and
    (4) Within 300 days after the effective date of this section, the 
Dashboard shall include all other data required by this section.



Sec.  3055.103  Format for data provided in the Public Performance Dashboard.

    (a) The results of a user-initiated query and the data underlying 
the query results should be exportable via a machine-readable format. 
Such data should be made accessible to any person or entity utilizing 
tools and methods designed to facilitate access to and extraction of 
data in bulk, such as an Application Programming Interface (API).
    (b) When there is a negative deviation from service performance 
standards, the Dashboard should clearly indicate such deviation from 
expected performance and present the service performance from the prior 
week and the same period last year.



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 costs, product-
specific costs, and those inframarginal costs calculated as part of a 
competitive product's incremental 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).

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



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 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

[[Page 541]]

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 
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

[[Page 542]]

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 to Sec.  3060.21.

                Table 1 to Sec.   3060.21--Competitive Products Income Statement--PRC Form CP-01
                                                   [$ in 000s]
----------------------------------------------------------------------------------------------------------------
                                                                                    Change from   Percent change
                                                      FY 20xx        FY 20xx-1         SPLY          from SPLY
----------------------------------------------------------------------------------------------------------------
Revenue:                                                  $x,xxx          $x,xxx            $xxx            xx.x
    (1) Mail and Services Revenues..............             xxx             xxx              xx            xx.x
    (2) Investment Income.......................            x,xx           x,xxx             xxx            xx.x
    (3) Total Competitive Products Revenue......  ..............  ..............
Expenses:                                                  x,xxx  ..............
    (4) Volume-Variable Costs...................           x,xxx           x,xxx             xxx            xx.x
    (5) Product Specific Costs..................           x,xxx           x,xxx             xxx            xx.x
    (6) Incremental Inframarginal Costs.........           x,xxx           x,xxx             xxx            xx.x
    (7) Total Competitive Products Attributable            x,xxx           x,xxx             xxx            xx.x
     Costs......................................
    (8) Net Contribution Competitive Products              x,xxx           x,xxx             xxx            xx.x
     Market Tests...............................
    (9) Net Income Before Institutional Cost               x,xxx           x,xxx             xxx
     Contribution...............................
    (10) Required Institutional Cost                       x,xxx           x,xxx             xxx           x.x.x
     Contribution...............................
    (11) Net Income (Loss) Before Tax...........           x,xxx           x,xxx             xxx            xx.x
    (12) Assumed Federal Income Tax.............           x,xxx           x,xxx             xxx            xx.x
    (13) Net Income (Loss) After Tax............           x,xxx           x,xxx             xxx            xx.x
----------------------------------------------------------------------------------------------------------------
Line (1): Total revenues from Competitive Products volumes and Ancillary Services.
Line (2): Income provided from investment of surplus Competitive Products revenues.
Line (3): Sum total of revenues from Competitive Products volumes, services, and investments.
Line (4): Total Competitive Products volume-variable costs as shown in the Cost and Revenue Analysis (CRA)
 report.
Line (5): Total Competitive Products product-specific costs as shown in the CRA report.
Line (6): Inframarginal costs calculated as part of total Competitive Products incremental costs as shown in ACR
 Library Reference ``Competitive Product Incremental and Group Specific Costs'' (Currently NP10).
Line (7): Sum total of Competitive Products costs (sum of lines 4, 5, and 6).
Line (8): Net Contribution Competitive Products Market Tests as shown in the Annual Compliance Report.
Line (9): Difference between Competitive Products total revenues and attributable costs and Market Tests
 Contributions (line 3 less line 7 plus line 8).
Line (10): Minimum amount of Institutional cost contribution required under 39 CFR 3035.7 of this chapter.
Line (11): Line 9 less line 10.
Line (12): Total assumed Federal income tax as calculated under 39 CFR 3060.40..................................
Line (13): Line 11 less line 12.
----------------------------------------------------------------------------------------------------------------


[85 FR 9660, Feb. 19, 2020]



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.

[[Page 543]]

 
Ending Value: Sum of Beginning Value and the Change from Prior Year.
Line 3: Beginning Value: Sum total of Financial Investments as of October 1 of Reportable Fiscal Year.
Change from Prior Year: Amount of Net Financial Investments of Reportable Fiscal Year.
Ending Value: Sum of Beginning Value and the Change from Prior Year.
----------------------------------------------------------------------------------------------------------------



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

[[Page 544]]

 
    Current Liabilities:
        Compensation and Benefits...............           x,xxx           x,xxx           x,xxx
        Payables and Accrued Expenses...........           x,xxx           x,xxx           x,xxx
        Customer Deposit Accounts...............           x,xxx           x,xxx           x,xxx
        Deferred Revenue-Prepaid Postage........           x,xxx           x,xxx           x,xxx
        Outstanding Postal Money Orders.........           x,xxx           x,xxx           x,xxx
        Prepaid Box Rent and Other Deferred                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 
applicable corporate tax rate.
    (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.
    (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.

[73 FR 79261, Dec. 24, 2008, as amended at 84 FR 31738, July 3, 2019]



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 545]]

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) 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.

[73 FR 79261, Dec. 24, 2008, as amended at 84 FR 31738, July 3, 2019]



PART 3065_RULES FOR LETTERS CARRIED OUT OF THE MAIL--Table of Contents



Sec.
3065.1 Applicability and scope.
3065.2 Prohibition on new regulations.
3065.3 Procedure for seeking clarification or interpretation.

    Authority: 39 U.S.C. 503, 601.

    Source: 87 FR 42074, July 14, 2022, unless otherwise noted.



Sec.  3065.1  Applicability and scope.

    (a) The rules in this part implement 39 U.S.C. 601, which describes 
certain circumstances in which letters may be carried out of the mail.
    (b) Notwithstanding placement in Postal Service chapter I of this 
title, the following provisions in parts 310 and 320 of this title are 
within the scope of this part and the Commission has the authority to 
interpret them:
    (1) Section 310.1 of this title;
    (2) Sections 310.2(b)(1) and (2) of this title; and
    (3) Sections 320.1 through 320.8 of this title.
    (c) In the event of a conflict between 39 U.S.C. 601 and applicable 
regulations under parts 310 and 320 of this title, 39 U.S.C. 601 shall 
supersede any other generally applicable requirements.



Sec.  3065.2  Prohibition on new regulations.

    (a) The Postal Service may not promulgate any new regulations or 
enter into agreements purporting to suspend or otherwise define the 
scope of the letter monopoly.
    (b) The Postal Service may not promulgate any new regulations 
purporting to interpret 39 U.S.C. 601.
    (c) The Commission has the sole authority to promulgate new 
regulations necessary to carry out 39 U.S.C. 601.

[[Page 546]]



Sec.  3065.3  Procedure for seeking clarification or interpretation.

    (a) The Commission may, on its own motion, initiate a proceeding 
under this subpart pursuant to Sec.  3010.201(a) of this chapter.
    (b) The Commission may provide interpretation of these regulations 
or 39 U.S.C. 601 upon:
    (1) A party's request to initiate a rulemaking proceeding with the 
Commission pursuant to the requirements of Sec.  3010.201(b) of this 
chapter; or
    (2) A party's request for an advisory opinion from the General 
Counsel.

                       PARTS 3066	3099 [RESERVED]

[[Page 547]]



                              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 549]]



                    Table of CFR Titles and Chapters




                      (Revised as of July 1, 2023)

                      Title 1--General Provisions

         I  Administrative Committee of the Federal Register 
                (Parts 1--49)
        II  Office of the Federal Register (Parts 50--299)
       III  Administrative Conference of the United States (Parts 
                300--399)
        IV  Miscellaneous Agencies (Parts 400--599)
        VI  National Capital Planning Commission (Parts 600--699)

                    Title 2--Grants and Agreements

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

[[Page 550]]

     XXVII  Small Business Administration (Parts 2700--2799)
    XXVIII  Department of Justice (Parts 2800--2899)
      XXIX  Department of Labor (Parts 2900--2999)
       XXX  Department of Homeland Security (Parts 3000--3099)
      XXXI  Institute of Museum and Library Services (Parts 3100--
                3199)
     XXXII  National Endowment for the Arts (Parts 3200--3299)
    XXXIII  National Endowment for the Humanities (Parts 3300--
                3399)
     XXXIV  Department of Education (Parts 3400--3499)
      XXXV  Export-Import Bank of the United States (Parts 3500--
                3599)
     XXXVI  Office of National Drug Control Policy, Executive 
                Office of the President (Parts 3600--3699)
    XXXVII  Peace Corps (Parts 3700--3799)
     LVIII  Election Assistance Commission (Parts 5800--5899)
       LIX  Gulf Coast Ecosystem Restoration Council (Parts 5900--
                5999)
        LX  Federal Communications Commission (Parts 6000--6099)

                        Title 3--The President

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

                           Title 4--Accounts

         I  Government Accountability Office (Parts 1--199)

                   Title 5--Administrative Personnel

         I  Office of Personnel Management (Parts 1--1199)
        II  Merit Systems Protection Board (Parts 1200--1299)
       III  Office of Management and Budget (Parts 1300--1399)
        IV  Office of Personnel Management and Office of the 
                Director of National Intelligence (Parts 1400--
                1499)
         V  The International Organizations Employees Loyalty 
                Board (Parts 1500--1599)
        VI  Federal Retirement Thrift Investment Board (Parts 
                1600--1699)
      VIII  Office of Special Counsel (Parts 1800--1899)
        IX  Appalachian Regional Commission (Parts 1900--1999)
        XI  Armed Forces Retirement Home (Parts 2100--2199)
       XIV  Federal Labor Relations Authority, General Counsel of 
                the Federal Labor Relations Authority and Federal 
                Service Impasses Panel (Parts 2400--2499)
       XVI  Office of Government Ethics (Parts 2600--2699)
       XXI  Department of the Treasury (Parts 3100--3199)
      XXII  Federal Deposit Insurance Corporation (Parts 3200--
                3299)
     XXIII  Department of Energy (Parts 3300--3399)
      XXIV  Federal Energy Regulatory Commission (Parts 3400--
                3499)
       XXV  Department of the Interior (Parts 3500--3599)

[[Page 551]]

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

[[Page 552]]

    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)
   LXXXIII  Special Inspector General for Afghanistan 
                Reconstruction (Parts 9300--9399)
    LXXXIV  Bureau of Consumer Financial Protection (Parts 9400--
                9499)
    LXXXVI  National Credit Union Administration (Parts 9600--
                9699)
     XCVII  Department of Homeland Security Human Resources 
                Management System (Department of Homeland 
                Security--Office of Personnel Management) (Parts 
                9700--9799)
    XCVIII  Council of the Inspectors General on Integrity and 
                Efficiency (Parts 9800--9899)
      XCIX  Military Compensation and Retirement Modernization 
                Commission (Parts 9900--9999)
         C  National Council on Disability (Parts 10000--10049)
        CI  National Mediation Board (Parts 10100--10199)
       CII  U.S. Office of Special Counsel (Parts 10200--10299)
       CIV  Office of the Intellectual Property Enforcement 
                Coordinator (Part 10400--10499)

                      Title 6--Domestic Security

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

                         Title 7--Agriculture

            Subtitle A--Office of the Secretary of Agriculture 
                (Parts 0--26)
            Subtitle B--Regulations of the Department of 
                Agriculture
         I  Agricultural Marketing Service (Standards, 
                Inspections, 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)

[[Page 553]]

      VIII  Agricultural Marketing Service (Federal Grain 
                Inspection Service, Fair Trade Practices Program), 
                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  [Reserved]
      XVII  Rural Utilities Service, Department of Agriculture 
                (Parts 1700--1799)
     XVIII  Rural Housing Service, Rural Business-Cooperative 
                Service, Rural Utilities Service, and Farm Service 
                Agency, Department of Agriculture (Parts 1800--
                2099)
        XX  [Reserved]
       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]

[[Page 554]]

      XLII  Rural Business-Cooperative Service and Rural Utilities 
                Service, Department of Agriculture (Parts 4200--
                4299)
         L  Rural Business-Cooperative Service, and Rural 
                Utilities Service, Department of Agriculture 
                (Parts 5000--5099)

                    Title 8--Aliens and Nationality

         I  Department of Homeland Security (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  Agricultural Marketing Service (Fair Trade Practices 
                Program), Department of Agriculture (Parts 200--
                299)
       III  Food Safety and Inspection Service, Department of 
                Agriculture (Parts 300--599)

                           Title 10--Energy

         I  Nuclear Regulatory Commission (Parts 0--199)
        II  Department of Energy (Parts 200--699)
       III  Department of Energy (Parts 700--999)
         X  Department of Energy (General Provisions) (Parts 
                1000--1099)
      XIII  Nuclear Waste Technical Review Board (Parts 1300--
                1399)
      XVII  Defense Nuclear Facilities Safety Board (Parts 1700--
                1799)
     XVIII  Northeast Interstate Low-Level Radioactive Waste 
                Commission (Parts 1800--1899)

                      Title 11--Federal Elections

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

                      Title 12--Banks and Banking

         I  Comptroller of the Currency, Department of the 
                Treasury (Parts 1--199)
        II  Federal Reserve System (Parts 200--299)
       III  Federal Deposit Insurance Corporation (Parts 300--399)
        IV  Export-Import Bank of the United States (Parts 400--
                499)
         V  [Reserved]
        VI  Farm Credit Administration (Parts 600--699)
       VII  National Credit Union Administration (Parts 700--799)
      VIII  Federal Financing Bank (Parts 800--899)
        IX  (Parts 900--999)[Reserved]

[[Page 555]]

         X  Consumer Financial Protection Bureau (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, Department of the 
                Treasury (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)

               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)

[[Page 556]]

      VIII  Bureau of Economic Analysis, Department of Commerce 
                (Parts 800--899)
        IX  National Oceanic and Atmospheric Administration, 
                Department of Commerce (Parts 900--999)
        XI  National Technical Information Service, Department of 
                Commerce (Parts 1100--1199)
      XIII  East-West Foreign Trade Board (Parts 1300--1399)
       XIV  Minority Business Development Agency (Parts 1400--
                1499)
        XV  Office of the Under-Secretary for Economic Affairs, 
                Department of Commerce (Parts 1500--1599)
            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) [Reserved]

                    Title 16--Commercial Practices

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

             Title 17--Commodity and Securities Exchanges

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

          Title 18--Conservation of Power and Water Resources

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

                       Title 19--Customs Duties

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

[[Page 557]]

                     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)

                       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  United States Agency for Global Media (Parts 500--599)
       VII  U.S. International Development Finance 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)

[[Page 558]]

                          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)
        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) 
                [Reserved]
       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) [Reserved]

[[Page 559]]

        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) [Reserved]
       XXV  Neighborhood Reinvestment Corporation (Parts 4100--
                4199)

                           Title 25--Indians

         I  Bureau of Indian Affairs, Department of the Interior 
                (Parts 1--299)
        II  Indian Arts and Crafts Board, Department of the 
                Interior (Parts 300--399)
       III  National Indian Gaming Commission, Department of the 
                Interior (Parts 500--599)
        IV  Office of Navajo and Hopi Indian Relocation (Parts 
                700--899)
         V  Bureau of Indian Affairs, Department of the Interior, 
                and Indian Health Service, Department of Health 
                and Human Services (Part 900--999)
        VI  Office of the Assistant Secretary, Indian Affairs, 
                Department of the Interior (Parts 1000--1199)
       VII  Office of the Special Trustee for American Indians, 
                Department of the Interior (Parts 1200--1299)

                      Title 26--Internal Revenue

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

           Title 27--Alcohol, Tobacco Products and Firearms

         I  Alcohol and Tobacco Tax and Trade Bureau, Department 
                of the Treasury (Parts 1--399)
        II  Bureau of Alcohol, Tobacco, Firearms, and Explosives, 
                Department of Justice (Parts 400--799)

                   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)

[[Page 560]]

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

                            Title 29--Labor

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

                      Title 30--Mineral Resources

         I  Mine Safety and Health Administration, Department of 
                Labor (Parts 1--199)
        II  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

[[Page 561]]

         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 Investment Security, 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)
         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  Department of Defense, Defense Logistics Agency (Parts 
                1200--1299)
       XVI  Selective Service System (Parts 1600--1699)
      XVII  Office of the Director of National Intelligence (Parts 
                1700--1799)
     XVIII  National Counterintelligence Center (Parts 1800--1899)
       XIX  Central Intelligence Agency (Parts 1900--1999)
        XX  Information Security Oversight Office, National 
                Archives and Records Administration (Parts 2000--
                2099)
       XXI  National Security Council (Parts 2100--2199)
      XXIV  Office of Science and Technology Policy (Parts 2400--
                2499)
     XXVII  Office for Micronesian Status Negotiations (Parts 
                2700--2799)
    XXVIII  Office of the Vice President of the United States 
                (Parts 2800--2899)

               Title 33--Navigation and Navigable Waters

         I  Coast Guard, Department of Homeland Security (Parts 
                1--199)
        II  Corps of Engineers, Department of the Army, Department 
                of Defense (Parts 200--399)
        IV  Great Lakes St. Lawrence Seaway Development 
                Corporation, Department of Transportation (Parts 
                400--499)

[[Page 562]]

                          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 Career, Technical, and Adult Education, 
                Department of Education (Parts 400--499)
         V  Office of Bilingual Education and Minority Languages 
                Affairs, Department of Education (Parts 500--599) 
                [Reserved]
        VI  Office of Postsecondary Education, Department of 
                Education (Parts 600--699)
       VII  Office of Educational Research and Improvement, 
                Department of Education (Parts 700--799) 
                [Reserved]
            Subtitle C--Regulations Relating to Education
        XI  [Reserved]
       XII  National Council on Disability (Parts 1200--1299)

                          Title 35 [Reserved]

             Title 36--Parks, Forests, and Public Property

         I  National Park Service, Department of the Interior 
                (Parts 1--199)
        II  Forest Service, Department of Agriculture (Parts 200--
                299)
       III  Corps of Engineers, Department of the Army (Parts 
                300--399)
        IV  American Battle Monuments Commission (Parts 400--499)
         V  Smithsonian Institution (Parts 500--599)
        VI  [Reserved]
       VII  Library of Congress (Parts 700--799)
      VIII  Advisory Council on Historic Preservation (Parts 800--
                899)
        IX  Pennsylvania Avenue Development Corporation (Parts 
                900--999)
         X  Presidio Trust (Parts 1000--1099)
        XI  Architectural and Transportation Barriers Compliance 
                Board (Parts 1100--1199)
       XII  National Archives and Records Administration (Parts 
                1200--1299)
        XV  Oklahoma City National Memorial Trust (Parts 1500--
                1599)
       XVI  Morris K. Udall Scholarship and Excellence in National 
                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  U.S. Copyright Office, Library of Congress (Parts 
                200--299)

[[Page 563]]

       III  Copyright Royalty Board, Library of Congress (Parts 
                300--399)
        IV  National Institute of Standards and Technology, 
                Department of Commerce (Parts 400--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)
        VI  Chemical Safety and Hazard Investigation Board (Parts 
                1600--1699)
       VII  Environmental Protection Agency and Department of 
                Defense; Uniform National Discharge Standards for 
                Vessels of the Armed Forces (Parts 1700--1799)
      VIII  Gulf Coast Ecosystem Restoration Council (Parts 1800--
                1899)
        IX  Federal Permitting Improvement Steering Council (Part 
                1900)

          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  (Parts 103-001--104-099) [Reserved]
       105  General Services Administration (Parts 105-1--105-999)

[[Page 564]]

       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--Federal Acquisition Supply Chain Security
       201  Federal Acquisition Security Council (Parts 201-1--
                201-99).
            Subtitle E [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)
   II--III  [Reserved]
        IV  Centers for Medicare & Medicaid Services, Department 
                of Health and Human Services (Parts 400--699)
         V  Office of Inspector General-Health Care, Department of 
                Health and Human Services (Parts 1000--1099)

                   Title 43--Public Lands: Interior

            Subtitle A--Office of the Secretary of the Interior 
                (Parts 1--199)
            Subtitle B--Regulations Relating to Public Lands
         I  Bureau of Reclamation, Department of the Interior 
                (Parts 400--999)
        II  Bureau of Land Management, Department of the Interior 
                (Parts 1000--9999)
       III  Utah Reclamation Mitigation and Conservation 
                Commission (Parts 10000--10099)

             Title 44--Emergency Management and Assistance

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

[[Page 565]]

                       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)
        IX  Denali Commission (Parts 900--999)
         X  Office of Community Services, Administration for 
                Children and Families, Department of Health and 
                Human Services (Parts 1000--1099)
        XI  National Foundation on the Arts and the Humanities 
                (Parts 1100--1199)
       XII  Corporation for National and Community Service (Parts 
                1200--1299)
      XIII  Administration for Children and Families, Department 
                of Health and Human Services (Parts 1300--1399)
       XVI  Legal Services Corporation (Parts 1600--1699)
      XVII  National Commission on Libraries and Information 
                Science (Parts 1700--1799)
     XVIII  Harry S. Truman Scholarship Foundation (Parts 1800--
                1899)
       XXI  Commission of Fine Arts (Parts 2100--2199)
     XXIII  Arctic Research Commission (Parts 2300--2399)
      XXIV  James Madison Memorial Fellowship Foundation (Parts 
                2400--2499)
       XXV  Corporation for National and Community Service (Parts 
                2500--2599)

                          Title 46--Shipping

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

[[Page 566]]

                      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)
         V  The First Responder Network Authority (Parts 500--599)

           Title 48--Federal Acquisition Regulations System

         1  Federal Acquisition Regulation (Parts 1--99)
         2  Defense Acquisition Regulations System, Department of 
                Defense (Parts 200--299)
         3  Department of Health and Human Services (Parts 300--
                399)
         4  Department of Agriculture (Parts 400--499)
         5  General Services Administration (Parts 500--599)
         6  Department of State (Parts 600--699)
         7  Agency for International Development (Parts 700--799)
         8  Department of Veterans Affairs (Parts 800--899)
         9  Department of Energy (Parts 900--999)
        10  Department of the Treasury (Parts 1000--1099)
        12  Department of Transportation (Parts 1200--1299)
        13  Department of Commerce (Parts 1300--1399)
        14  Department of the Interior (Parts 1400--1499)
        15  Environmental Protection Agency (Parts 1500--1599)
        16  Office of Personnel Management, Federal Employees 
                Health Benefits Acquisition Regulation (Parts 
                1600--1699)
        17  Office of Personnel Management (Parts 1700--1799)
        18  National Aeronautics and Space Administration (Parts 
                1800--1899)
        19  Broadcasting Board of Governors (Parts 1900--1999)
        20  Nuclear Regulatory Commission (Parts 2000--2099)
        21  Office of Personnel Management, Federal Employees 
                Group Life Insurance Federal Acquisition 
                Regulation (Parts 2100--2199)
        23  Social Security Administration (Parts 2300--2399)
        24  Department of Housing and Urban Development (Parts 
                2400--2499)
        25  National Science Foundation (Parts 2500--2599)
        28  Department of Justice (Parts 2800--2899)
        29  Department of Labor (Parts 2900--2999)
        30  Department of Homeland Security, Homeland Security 
                Acquisition Regulation (HSAR) (Parts 3000--3099)
        34  Department of Education Acquisition Regulation (Parts 
                3400--3499)

[[Page 567]]

        51  Department of the Army Acquisition Regulations (Parts 
                5100--5199) [Reserved]
        52  Department of the Navy Acquisition Regulations (Parts 
                5200--5299)
        53  Department of the Air Force Federal Acquisition 
                Regulation Supplement (Parts 5300--5399) 
                [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)
        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)
       III  Federal Motor Carrier Safety Administration, 
                Department of Transportation (Parts 300--399)
        IV  Coast Guard, Department of Homeland Security (Parts 
                400--499)
         V  National Highway Traffic Safety Administration, 
                Department of Transportation (Parts 500--599)
        VI  Federal Transit Administration, Department of 
                Transportation (Parts 600--699)
       VII  National Railroad Passenger Corporation (AMTRAK) 
                (Parts 700--799)
      VIII  National Transportation Safety Board (Parts 800--999)
         X  Surface Transportation Board (Parts 1000--1399)
        XI  Research and Innovative Technology Administration, 
                Department of Transportation (Parts 1400--1499) 
                [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)

[[Page 568]]

        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)

[[Page 569]]





           Alphabetical List of Agencies Appearing in the CFR




                      (Revised as of July 1, 2023)

                                                  CFR Title, Subtitle or 
                     Agency                               Chapter

Administrative Conference of the United States    1, III
Advisory Council on Historic Preservation         36, VIII
Advocacy and Outreach, Office of                  7, XXV
Afghanistan Reconstruction, Special Inspector     5, LXXXIII
     General for
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, VIII, IX, X, XI; 9, 
                                                  II
Agricultural Research Service                     7, V
Agriculture, Department of                        2, IV; 5, LXXIII
  Advocacy and Outreach, Office of                7, XXV
  Agricultural Marketing Service                  7, I, VIII, IX, X, XI; 9, 
                                                  II
  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
  Information Resources Management, Office of     7, XXVII
  Inspector General, Office of                    7, XXVI
  National Agricultural Library                   7, XLI
  National Agricultural Statistics Service        7, XXXVI
  National Institute of Food and Agriculture      7, XXXIV
  Natural Resources Conservation Service          7, VI
  Operations, Office of                           7, XXVIII
  Procurement and Property Management, Office of  7, XXXII
  Rural Business-Cooperative Service              7, XVIII, XLII
  Rural Development Administration                7, XLII
  Rural Housing Service                           7, XVIII, XXXV
  Rural Utilities Service                         7, XVII, XVIII, XLII
  Secretary of Agriculture, Office of             7, Subtitle A
  Transportation, Office of                       7, XXXIII
  World Agricultural Outlook Board                7, XXXVIII
Air Force, Department of                          32, VII
  Federal Acquisition Regulation Supplement       48, 53
Air Transportation Stabilization Board            14, VI
Alcohol and Tobacco Tax and Trade Bureau          27, I
Alcohol, Tobacco, Firearms, and Explosives,       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
Appalachian Regional Commission                   5, IX
Architectural and Transportation Barriers         36, XI
   Compliance Board
[[Page 570]]

Arctic Research Commission                        45, XXIII
Armed Forces Retirement Home                      5, XI; 38, II
Army, Department of                               32, V
  Engineers, Corps of                             33, II; 36, III
  Federal Acquisition Regulation                  48, 51
Benefits Review Board                             20, VII
Bilingual Education and Minority Languages        34, V
     Affairs, Office of
Blind or Severely Disabled, Committee for         41, 51
     Purchase from People Who Are
  Federal Acquisition Regulation                  48, 19
Career, Technical, and Adult Education, Office    34, IV
     of
Census Bureau                                     15, I
Centers for Medicare & Medicaid Services          42, IV
Central Intelligence Agency                       32, XIX
Chemical Safety and Hazard Investigation Board    40, VI
Chief Financial Officer, Office of                7, XXX
Child Support Enforcement, Office of              45, III
Children and Families, Administration for         45, II, III, IV, X, XIII
Civil Rights, Commission on                       5, LXVIII; 45, VII
Civil Rights, Office for                          34, I
Coast Guard                                       33, I; 46, I; 49, IV
Coast Guard (Great Lakes Pilotage)                46, III
Commerce, Department of                           2, XIII; 44, IV; 50, VI
  Census Bureau                                   15, I
  Economic Affairs, Office of the Under-          15, XV
       Secretary for
  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; 37, IV
  National Marine Fisheries Service               50, II, IV
  National Oceanic and Atmospheric                15, IX; 50, II, III, IV, 
       Administration                             VI
  National Technical Information Service          15, XI
  National Telecommunications and Information     15, XXIII; 47, III, IV
       Administration
  National Weather Service                        15, IX
  Patent and Trademark Office, United States      37, I
  Secretary of Commerce, Office of                15, Subtitle A
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              5, LXXXIV; 12, X
Consumer Product Safety Commission                5, LXXI; 16, 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
Council of the Inspectors General on Integrity    5, XCVIII
     and Efficiency
Court Services and Offender Supervision Agency    5, LXX; 28, VIII
     for the District of Columbia
Customs and Border Protection                     19, I
Defense, Department of                            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

[[Page 571]]

  Defense Logistics Agency                        32, I, XII; 48, 54
  Engineers, Corps of                             33, II; 36, III
  National Imagery and Mapping Agency             32, I
  Navy, Department of                             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
Denali Commission                                 45, IX
Disability, National Council on                   5, C; 34, XII
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, Office of the Under-Secretary   15, XV
     for
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
  Career, Technical, and Adult Education, Office  34, IV
       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
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 Policy, National Commission for        1, IV
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
  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         2, XXXVI; 21, III
  National Security Council                       32, XXI; 47, II
  Presidential Documents                          3
  Science and Technology Policy, Office of        32, XXIV; 47, II
  Trade Representative, Office of the United      15, XX
     States
[[Page 572]]

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 Acquisition Security Council              41, 201
Federal Aviation Administration                   14, I
  Commercial Space Transportation                 14, III
Federal Claims Collection Standards               31, IX
Federal Communications Commission                 2, LX; 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 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 Permitting Improvement Steering Council   40, IX
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 of                          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
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

[[Page 573]]

  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
Great Lakes St. Lawrence Seaway Development       33, IV
     Corporation
Gulf Coast Ecosystem Restoration Council          2, LIX; 40, VIII
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, XIII
  Community Services, Office of                   45, X
  Family Assistance, Office of                    45, II
  Federal Acquisition Regulation                  48, 3
  Food and Drug Administration                    21, I
  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; 5, XXXVI; 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
Immigration and Customs Enforcement Bureau        19, IV
Immigration Review, Executive Office for          8, V
Independent Counsel, Office of                    28, VII
Independent Counsel, Offices of                   28, VI
Indian Affairs, Bureau of                         25, I, V
Indian Affairs, Office of the Assistant           25, VI
     Secretary
Indian Arts and Crafts Board                      25, II

[[Page 574]]

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
Intellectual Property Enforcement Coordinator,    5, CIV
     Office of
Inter-American Foundation                         5, LXIII; 22, X
Interior, Department of                           2, XIV
  American Indians, Office of the Special         25, VII
       Trustee
  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
  Safety and Environmental Enforcement, Bureau    30, II
       of
  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 Development Finance Corporation,    5, XXXIII; 22, VII
     U.S.
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
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 of                            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
  Independent Counsel, Offices of                 28, VI
  Prisons, Bureau of                              28, V
  Property Management Regulations                 41, 128
Labor, Department of                              2, XXIX; 5, XLII
  Benefits Review Board                           20, VII
  Employee Benefits Security Administration       29, XXV
  Employees' Compensation Appeals Board           20, IV
  Employment and Training Administration          20, V
  Federal Acquisition Regulation                  48, 29

[[Page 575]]

  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
  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, VI
Labor-Management Standards, Office of             29, II, IV
Land Management, Bureau of                        43, II
Legal Services Corporation                        45, XVI
Libraries and Information Science, National       45, XVII
     Commission on
Library of Congress                               36, VII
  Copyright Royalty Board                         37, III
  U.S. Copyright Office                           37, II
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
Military Compensation and Retirement              5, XCIX
     Modernization Commission
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, VI
National Counterintelligence Center               32, XVIII
National Credit Union Administration              5, LXXXVI; 12, VII
National Crime Prevention and Privacy Compact     28, IX
     Council
National Drug Control Policy, Office of           2, XXXVI; 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 Geospatial-Intelligence Agency           32, I
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 of Food and Agriculture        7, XXXIV
National Institute of Standards and Technology    15, II; 37, IV
National Intelligence, Office of Director of      5, IV; 32, XVII
National Labor Relations Board                    5, LXI; 29, I
National Marine Fisheries Service                 50, II, IV
National Mediation Board                          5, CI; 29, X
National Oceanic and Atmospheric Administration   15, IX; 50, II, III, IV, 
                                                  VI
National Park Service                             36, I
National Railroad Adjustment Board                29, III
National Railroad Passenger Corporation (AMTRAK)  49, VII
National Science Foundation                       2, XXV; 5, XLIII; 45, VI
  Federal Acquisition Regulation                  48, 25
National Security Council                         32, XXI; 47, II

[[Page 576]]

National Technical Information Service            15, XI
National Telecommunications and Information       15, XXIII; 47, III, IV, V
     Administration
National Transportation Safety Board              49, VIII
Natural Resource Revenue, Office of               30, XII
Natural Resources Conservation Service            7, VI
Navajo and Hopi Indian Relocation, Office of      25, IV
Navy, Department of                               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
Oklahoma City National Memorial Trust             36, XV
Operations Office                                 7, XXVIII
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, IV, XXXV; 45, VIII
  Federal Acquisition Regulation                  48, 17
  Federal Employees Group Life Insurance Federal  48, 21
       Acquisition Regulation
  Federal Employees Health Benefits Acquisition   48, 16
       Regulation
  Human Resources Management and Labor Relations  5, XCVII
       Systems, Department of Homeland Security
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
Privacy and Civil Liberties Oversight Board       6, X
Procurement and Property Management, Office of    7, XXXII
Public and Indian Housing, Office of Assistant    24, IX
     Secretary for
Public Contracts, Department of Labor             41, 50
Public Health Service                             42, I
Railroad Retirement Board                         20, II
Reclamation, Bureau of                            43, I
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
Rural Utilities Service                           7, XVII, XVIII, XLII, L
Safety and Environmental Enforcement, Bureau of   30, II
Science and Technology Policy, Office of          32, XXIV; 47, II
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 of                              2, VI; 22, I; 28, XI

[[Page 577]]

  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
Tennessee Valley Authority                        5, LXIX; 18, XIII
Trade Representative, United States, Office of    15, XX
Transportation, Department of                     2, XII; 5, L
  Commercial Space Transportation                 14, III
  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
  Great Lakes St. Lawrence Seaway Development     33, IV
       Corporation
  Maritime Administration                         46, II
  National Highway Traffic Safety Administration  23, II, III; 47, IV; 49, V
  Pipeline and Hazardous Materials Safety         49, I
       Administration
  Secretary of Transportation, Office of          14, II; 49, Subtitle A
  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 of the                       2, X; 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
Truman, Harry S. Scholarship Foundation           45, XVIII
United States Agency for Global Media             22, V
United States and Canada, International Joint     22, IV
     Commission
United States and Mexico, International Boundary  22, XI
     and Water Commission, United States Section
U.S. Copyright Office                             37, II
U.S. Office of Special Counsel                    5, CII
Utah Reclamation Mitigation and Conservation      43, III
     Commission
Veterans Affairs, Department of                   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
Wage and Hour Division                            29, V
Water Resources Council                           18, VI
Workers' Compensation Programs, Office of         20, I, VII
World Agricultural Outlook Board                  7, XXXVIII

[[Page 579]]



List of CFR Sections Affected



All changes in this volume of the Code of Federal Regulations (CFR) that 
were made by documents published in the Federal Register since January 
1, 2018 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, parts and 
subparts as well as sections for revisions.
For changes to this volume of the CFR prior to this listing, consult the 
annual edition of the monthly List of CFR Sections Affected (LSA). The 
LSA is available at www.govinfo.gov. For changes to this volume of the 
CFR prior to 2001, see the ``List of CFR Sections Affected, 1949-1963, 
1964-1972, 1973-1985, and 1986-2000'' published in 11 separate volumes. 
The ``List of CFR Sections Affected 1986-2000'' is available at 
www.govinfo.gov.

                                  2018

39 CFR
                                                                   83 FR
                                                                    Page
Chapter I
20 IMM amended; incorporation by reference.........................52325
20.1 (a) revised; (b) table 1 amended..............................17922
20.2 Revised.......................................................17922
111 DMM amended; incorporation by reference....981, 10624, 14373, 43986, 
                                       47841, 51359, 52327, 63579, 65087
111.3 (f) table amended............................................17922
111.4 Amended......................................................17923
113 Added...........................................................1190
265.1 (a)(1) revised...............................................48235
265.3 (d) and (e) revised..........................................48235
265.6 (e)(2) added.................................................48235
265.9 (c)(3) revised...............................................48235
265.14 Amended......................................................9433
265.14 (b), (d)(1), and (2) revised................................48236
266.3 (b)(3) revised................................................3085
266.3 (a) introductory text, (3), (b)(1) introductory text, (i), 
        (iii), (2) introductory text, (iii), (xi), and (5) heading 
        revised....................................................48237
Chapter III
3001.100-3001.101 (Subpart E) Added................................31280
3004.30 (d) introductory text and (e) revised......................31281
3004.70 Heading, (a), (b), and (c) revised.........................31281
3007 Revised.......................................................31281
3010.23 (d)(5) added................................................4591
3010.23 (d)(5) revised.............................................52156
3020.1-3020.5 (Subpart A) Appendix B revised.........10373, 18425, 65530
3020.1-3020.5 (Subpart A) Appendix A and Appendix B revised........36743
3050.21 (a), (f)(4), (5), and (j) revised; (f)(6), (k), (l), and 
        (m) added..................................................49293
3050.25 (c), (d), and (e) revised..................................49293
3050.28 (b) introductory text, (1) table 1 and table 2, and (c) 
        revised....................................................49294
3050.60 (c) revised................................................49295

                                  2019

39 CFR
                                                                   84 FR
                                                                    Page
Chapter I
20 IMM amended; incorporation by reference.....3108, 26346, 56384, 66072
20.1 (a) and (b) table amended.....................................24392
20.2 Revised.......................................................24392
111 Authority citation revised.....................................24392
111 DMM amended; incorporated by reference....9718, 18732, 21239, 22710, 
                                                            51982, 55506
111.3 (f) table amended............................................24392
111.4 Amended......................................................24393
233 Authority citation revised.....................................20805

[[Page 580]]

233.12 (a), (b), (c)(4), (d), (e), and (f) amended.................20805
265.9 (j)(3)(i) and (ii) revised...................................56385
Chapter III
3002.11 (d) revised................................................53056
3002.13 (b) revised................................................53056
3004.3 (a) revised.................................................53056
3004.40 (a)(7) revised.............................................53056
3004.43 (a), (b), (c), (d) introductory text, and (e) introductory 
        text revised...............................................53056
3004.44 (a) revised................................................53057
3004.60 Revised....................................................53057
3015.7 (c) revised...................................................539
3020.1-3020.5 (Subpart A) Appendix B revised...7817, 18984, 40262, 61555
3020.1--3020.5 (Subpart A) Appendix A revised......................61555
3020.111 (a) revised...............................................32317
3035 Authority citation revised......................................975
3035.15 (d) and (e) revised..........................................975
3035.16 (c) and (d) revised..........................................975
3035.18 Revised......................................................975
3050.50 Added......................................................20806
3060.40 (a) and (c) revised........................................31738
3060.43 (c) removed; (d) redesignated as new (c)...................31738

                                  2020

39 CFR
                                                                   85 FR
                                                                    Page
Chapter I
20 IMM amended; incorporation by reference..............462, 1104, 65227
20 Notification....................................................83450
20.1 Revised.......................................................61608
20.2 Revised.......................................................61608
20.3 Removed.......................................................61608
20.4 Revised.......................................................61608
111 DMM amended; incorporation by reference...1750, 10606, 27301, 74609, 
                                                                   83451
111.1 Revised......................................................61609
111.2 Removed......................................................61609
111.3 (a) revised; (f) table amended...............................61609
111.4 Removed......................................................61610
113.1 Amended (temporary)..........................................23745
113.3 Added (temporary)............................................23745
233 Authority citation revised......................................2037
233.12 (a), (b), (c)(4), (d), (e), and (f) amended; interim.........2037
501.1 (a), (b), and (c) revised; (h) added.........................21775
501.2 Revised......................................................21775
501.3 (c) removed; (d) and (e) redesignated as new (c) and (d); 
        new (c) revised............................................21776
501.6 (c)(1), (2), (3), and (e) revised............................21776
501.7 (a) revised..................................................21777
501.7 (c) introductory text revised................................78235
501.8 (a) revised..................................................21777
501.10 (a) introductory text and (b) revised.......................21777
501.14 (c) introductory text, (8), and (d) introductory text 
        revised....................................................21777
501.15 (g), (i), and (j) revised...................................12872
501.16 (d) and (f) revised.........................................12873
501.17 (f) added...................................................78235
501.20 (b) revised..........................................78235, 79432
501.21 Removed.....................................................41395
551.3 (a) revised..................................................55193
551.5 (b) and (c) removed..........................................55193
Chapter III
Chapter III Amended.................................................9660
3000--3001 Designated as Subchapter A...............................9615
3000 Redesignated as 3001; redesignated from 3002...................9615
3000 Heading revised................................................9616
3000.5--3000.55 Redesignated as 3001.105 through 3001.155...........9615
3000.102 (b) revised................................................9616
3000.110 (b) and (c) revised........................................9616
3000.112 (b) introductory text revised..............................9616
3000.115 (b)(2) revised.............................................9616
3001 Redesignated as 3010; redesignated from 3000...................9615
3001 Heading revised................................................9616
3001.105 (b) revised................................................9616
3001.150 (b) revised................................................9616
3002 Redesignated as 3000...........................................9615
3002.1--3002.16 Redesignated as 3000.101 through 3000.116...........9615
3003 Redesignated as 3005...........................................9615
3003.1--3003.7 Redesignated as 3005.101 through 3005.107............9615
3004 Redesignated as 3006...........................................9615
3005--3006 Designated as Subchapter B...............................9615
3005 Redesignated as 3013; redesignated from 3003...................9615
3005.103 (a)(1), (2), (3), (c)(3), and (4) revised..................9616
3006 Redesignated from 3004.........................................9615
3006.1 (b) and (c) revised..........................................9617

[[Page 581]]

3006.2 (b) revised..................................................9617
3006.10 (a) introductory text revised...............................9617
3006.12 (b) revised.................................................9617
3006.30 (b), (d) introductory text, (2), and (e)(2) revised.........9617
3006.40 (a)(6) revised..............................................9617
3006.41 (a)(4) revised..............................................9617
3006.43 (f) revised.................................................9617
3006.51 (b) revised.................................................9617
3006.52 (e) introductory text and (1) revised.......................9617
3006.53 (b) revised.................................................9618
3006.54 (a)(2) revised..............................................9618
3006.61 Revised.....................................................9618
3006.70 (a), (b), and (c) revised...................................9618
3007 Redesignated as 3011...........................................9615
3007.100 (new part 3007) added......................................9618
3008 Redesignated as 3012...........................................9615
3010--3013 Designated as Subchapter C...............................9615
3010 Redesignated as 3030...........................................9615
3010 Redesignated from 3001.........................................9615
3010 Revised........................................................9620
3010.1--3010.66 Redesignated as 3030.501 through 3030.566...........9615
3011 Redesignated from 3007.........................................9615
3011.101 (a) revised................................................9641
3011.102 (a) revised................................................9641
3011.103 (a) and (c) revised........................................9641
3011.200 (a) revised................................................9641
3011.203 (b) revised................................................9641
3011.205 (a), (b), (c) introductory text, and (3) revised...........9641
3011.300 (a) and (c) revised........................................9642
3011.301 (b)(4), (c), and (e) revised...............................9642
3011.302 Revised....................................................9642
3011.303 (a) introductory text revised..............................9642
3011.304 (a)(1) and (b) revised.....................................9643
3011.305 (a) revised................................................9643
3011.300--3011.305 (Subpart C) Appendix A revised...................9643
3011.400 (a), (b), (c), and (f) revised.............................9644
3011.401 (c) and (f) revised........................................9644
3011.400--3011.401 (Subpart D) Appendix A revised...................9644
3012 Redesignated from 3008.........................................9615
3012.1 (c) revised..................................................9645
3012.2 (b)(3) revised...............................................9645
3012.4 (d)(2) revised...............................................9645
3012.7 (b) and (c) revised..........................................9645
3013 Redesignated from 3005.........................................9615
3013.1 (b) revised..................................................9645
3013.11 (d)(4) and (e) revised......................................9645
3013.12 (a) and (d) revised.........................................9645
3013.13 (a) introductory text, (2), (3), (4), (b) introductory 
        text, (1), and (2) revised..................................9645
3013.14 (a)(1), (2), (4), (b)(1) introductory text, and (2) 
        introductory text revised...................................9646
3013.15 (f) revised.................................................9646
3013 Appendix A revised.............................................9646
3015 Redesignated as 3035...........................................9615
3015.1--3015.7 Redesignated as 3035.101 through 3035.107............9615
3017 Redesignated as 3025...........................................9615
3017.1--3017.5 Redesignated as 3025.101 through 3025.105............9615
3020--3025 Designated as Subchapter D...............................9615
3020 Redesignated as 3040...........................................9615
3020 Added..........................................................9649
3020.1--3020.5 (Subpart A) Appendix B amended......................10288
3020.1--3020.112 Redesignated as 3040.101 through 3040.212..........9615
3021 Redesignated from 3025.........................................9615
3021.2 (b) revised..................................................9655
3021.13 (a) revised.................................................9655
3021.14 Revised.....................................................9655
3021.40 (a) revised.................................................9655
3022 Redesignated from 3030.........................................9615
3022.1 Revised......................................................9655
3022.10 (a)(10) revised.............................................9655
3022.11 Revised.....................................................9655
3022.12 (b)(2) revised..............................................9656
3022.13 (b) and (c) revised.........................................9656
3022.20 Revised.....................................................9656
3022.30 (a)(1) revised..............................................9656
3022.41 (a) introductory text revised...............................9656
3023 Redesignated from 3031.........................................9615
3023.11 (b) revised.................................................9656
3023.12 Revised.....................................................9656
3024 Redesignated from 3032.........................................9615
3024.1 Revised......................................................9656
3024.5 (a) introductory text revised................................9656
3025 Redesignated as 3021; redesignated from 3017; 3017.1--3017.5 
        Redesignated as 3025.101 through 3025.105...................9615
3025 Heading revised................................................9656
3025 Revised.......................................................13054
3030--3045 Designated as Subchapter E...............................9615

[[Page 582]]

3030 Redesignated as 3022; redesignated from 3010; 3010.1 through 
        3010.66 redesignated as 3030.501 through 3030.566...........9615
3030 Revised.......................................................81126
3030.501 (b)(1), (2), (3), (d), (e), (h) through (l), (m)(1), and 
        (2) revised.................................................9656
3030.501 (g) revised; eff. 7-13-20.................................35809
3030.504 (c) revised................................................9657
3030.506 (b)(1) revised.............................................9657
3030.511 (b)(1), (2), (d), and (k) revised..........................9657
3030.512 (b)(1), (3), (4), (9)(ii), and (e) revised.................9657
3030.512 (b)(9) revised; eff. 7-13-20..............................35809
3030.520 (b) and (d)(2) revised.....................................9657
3030.523 (e)(1) revised.............................................9657
3030.523 (e)(2) revised; eff. 7-13-20..............................35809
3030.524 (a) revised................................................9657
3030.525 Revised....................................................9658
3030.526 (b) and (c)(2) revised.....................................9658
3030.527 (a), (c), and (d) revised..................................9658
3030.530 (b) revised................................................9658
3030.562 Revised....................................................9658
3030.563 (b) revised................................................9658
3030.565 (b) and (c) revised........................................9658
3031 Redesignated as 3023...........................................9615
3032 Redesignated as 3024...........................................9615
3035 Redesignated as 3045; redesignated from 3015...................9615
3040 Redesignated from 3020; 3020.1 through 3020.112 redesignated 
        as 3040.101 through 3040.212................................9615
3040 Heading revised................................................9658
3040.102 Revised....................................................9658
3040.101--3040.105 (Subpart A) Appendix A and Appendix B revised 
                                                     27304, 45316, 70479
3040.132 (a) and (b) revised.......................................81138
3040.152 (a) and (b) revised.......................................81138
3040.172 (a) and (b) revised.......................................81138
3040.181 (b) revised................................................9658
3040.181 (b)(1) revised............................................81138
3040.182 (e) revised...............................................81138
3040.190 (c)(1) revised.............................................9659
3040.190 (c)(2) revised............................................81138
3040.191 (e) revised...............................................81138
3040.220--3040.222 (Subpart G) Added...............................81138
3045 Redesignated from 3035.........................................9615
3045.3 (a)(1)(ii) and (2)(vi) revised; (b) added....................9659
3045.10 Revised.....................................................9659
3045.15 (a) and (b) revised.........................................9659
3045.15 (a) revised................................................81139
3045.16 (f)(3) revised..............................................9659
3045.17 Revised.....................................................9659
3045.18 (a), (d)(1)(i)(B), and (2)(i)(B) revised....................9659
3045.18 Correction: (d)(2)(i)(B) revised...........................29325
3045.20 (a) introductory text revised...............................9659
3050--3099 Designated as Subchapter F...............................9615
3050.20 (c) revised................................................81139
3050.21 (a), (e), (l), and (m) revised; (n) and (o) added..........81140
3050.55 Added......................................................81140
3050.60 (a) revised; (e) removed; (f) and (g) redesignated as new 
        (e) and (f)................................................81141
3055.1 Revised......................................................9659
3055.2 (c) revised.................................................81141
3055.30 Revised.....................................................9659
3055.90 Revised.....................................................9659
3060.21 Revised.....................................................9660

                                  2021

39 CFR
                                                                   86 FR
                                                                    Page
Chapter I
2.1 Revised........................................................10012
2.6 Revised........................................................10012
3.2 Revised........................................................10012
3.3 (b) and (d) through (n) revised................................10012
3.3 (b)(3) and (o) through (r) removed.............................24713
3.4 (e), (k), and (m) revised......................................10012
3.6 (a) introductory text, (4), and (5) revised; (c) added.........10013
3.6 (a)(5) amended; (a)(6) removed.................................24713
3.7 (a)(1), (2), (3), (b), and (d) revised; (e) and (f) added......10013
3.7 (b) revised....................................................24713
3.8 (h) added......................................................10013
4.1 (a)(1) revised; (d) removed....................................10013
4.2 Revised........................................................10013
4.5 Revised........................................................10013
4.6 Revised........................................................10013
6.1 Revised........................................................10014
6.4 Revised........................................................10014
6.6 Introductory text revised......................................10014
6.7 (a) revised....................................................10014
6.8 Added..........................................................10014
7.6 (a) revised....................................................10014

[[Page 583]]

10.1 Revised.......................................................10014
10.2 Revised.......................................................10014
10.4 Revised.......................................................24713
20 Notification....................................................40153
20 IMM amended; incorporation by reference.........................67864
20 Technical correction............................................70977
111 Authority citation revised.....................................53221
111 DMM amended; incorporation by reference.........11124, 16671, 35607, 
                                       43416, 53221, 58427, 64378, 70385
113 Guidance.......................................................20287
113 Removed........................................................53221
121.1 Revised......................................................43952
121.2 (a)(1), (2), and (b)(2)(ii) revised..........................43952
121.3 Revised......................................................43952
121 Appendix A revised.............................................43953
211 Authority citation revised.....................................53221
211 Publication 52 amended; incorporation by reference.............58427
211.2 (a) introductory text, (2), and (3) revised..................53221
230.10 (Subpart B) Revised.........................................14539
233.11 Revised..............................................38414, 53222
233.12 (a), (b), (c)(4), (d) through (f) amended; interim...........2987
Chapter III
3011.300 Correction: (a)(1) through (5) added......................48503
3040.101--3040.105 (Subpart A) Appendix A revised.....9465, 18452, 62488
3040.101--3040.105 (Subpart A) Appendix B revised.....9465, 18453, 62489

                                  2022

39 CFR
                                                                   87 FR
                                                                    Page
Chapter I
3 Authority citation revised.......................................68908
3.4 (i) revised; (o) and (p) added.................................68908
6 Authority citation revised.......................................68908
6.6 Introductory text and (g) revised; (a) through (d) amended; 
        (h) through (j) added......................................68908
20 Notification....................................................29830
20 IMM amended; incorporation by reference; eff. 7-10-22...........36061
20 IMM amended; incorporation by reference..................71522, 76942
20.1 Revised.......................................................63424
20.2 Revised.......................................................63425
20.4 (b) and Table 1 amended.......................................63425
111 DMM amended; incorporation by reference...1673, 32087, 33047, 34197, 
                                       40453, 63697, 69173, 73459, 76577
111 DMM amended; incorporated by reference; eff. 7-10-22...11588, 30102, 
                                                            35659, 38664
111.1 (a)(3) and (b) revised; (2) amended..........................63425
111.3 Table 1 amended..............................................63425
121 Authority citation revised.....................................73469
121.1 (a) through (g) redesignated as (b) through (h); new (a) 
        added......................................................73469
121 Appendix A revised.............................................73469
233.12 (a), (b), (c)(4), (d), (e), and (f) amended..................1675
241.3 (b)(2) and (d)(3) introductory text revised..................29673
241.3 Correction: (b)(2) introductory text and (d)(3) introductory 
        text revised...............................................30821
273.3 (a)(1)(iv) amended............................................1676
Chapter III
3010.165 Added.....................................................43214
3040.101--3040.105 (Subpart A) Appendix A and Appendix B revised 
                                                      6430, 40455, 45650
3065 Added.........................................................42074

                                  2023

   (Regulations published from January 1, 2023, through July 1, 2023)

39 CFR
                                                                   88 FR
                                                                    Page
Chapter I
20 IMM amended; incorporation by reference...................9399, 38753
20 Policy statement................................................32681
111 DMM amended; incorporation by reference.....759, 4728, 14269, 21480, 
                                                                   32115
111 DMM amended; incorporation by reference; eff. 7-9-23....7876, 24488, 
                                                            32825, 36959
111 DMM amended; incorporation by reference; eff. 8-1-23...........42248
111 DMM amended; incorporation by reference; eff. 1-28-24..........24913
233.12 (a), (b), (c)(4), and (d) through (f) amended; interim.......1514

[[Page 584]]

241.4 (a)(1), (2) introductory text, (i), (b), (c)(2), (3) 
        introductory text, (ii)(A)(2), (3), (B), (4) heading, and 
        (5) revised; (a)(2)(iv) and (v) added; (a)(3) and (c)(4) 
        amended; (c)(3)(ii)(A)(4) removed..........................36961
273.3 (a)(1)(iv) amended; interim...................................1515
Chapter III
3006 Authority citation revised; eff. 7-7-23.......................37153
3006.30 (d) and (e) revised; eff. 7-7-23...........................37153
3006.35 Added; eff. 7-7-23.........................................37154
3006.70 (a) revised; eff. 7-7-23...................................37154
3011 Authority citation revised; eff. 7-7-23.......................37154
3011.100 (c) added; eff. 7-7-23....................................37154
3011.103 (a) revised; eff. 7-7-23..................................37154
3011.401 Correction: (c) revised...................................37474
3035.107 (c) revised................................................3315
3040.101--3040.105 (Subpart A) Appendix A and Appendix B revised 
                                                                   21918
3055 Authority citation revised....................................10038
3055.1 Revised.....................................................10038
3055.2 (a) and (j) revised; (l) through (n) added..................10038
3055.7 Removed.....................................................10039
3055.20 Revised....................................................10039
3055.21 Revised....................................................10039
3055.22 Revised....................................................10040
3055.23 Revised....................................................10040
3055.25 Revised....................................................10040
3055.30 Revised....................................................10040
3055.31 (a) and (d) revised; (f) through (i) added.................10040
3055.45 Revised....................................................10041
3055.50 Revised....................................................10042
3055.55 (a) introductory text revised..............................10042
3055.60 Revised....................................................10042
3055.65 (b)(1) removed; (b)(2) through (5) redesignated as new 
        (b)(1) through (4).........................................10042
3055.100--3055.103 (Subpart D) Added...............................10042


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