[Federal Register Volume 59, Number 110 (Thursday, June 9, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-14057]


[[Page Unknown]]

[Federal Register: June 9, 1994]


=======================================================================
-----------------------------------------------------------------------

POSTAL SERVICE

39 CFR Part 241

 

Discontinuance of Post Offices

AGENCY: Postal Service.

ACTION: Final rule.

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

SUMMARY: The regulations that govern the discontinuance of post 
offices, which are set forth in the Postal Operations Manual (POM), are 
hereby also included in the Code of Federal Regulations (CFR), in order 
to make them more accessible to the public.

EFFECTIVE DATE: June 9, 1994.

FOR FURTHER INFORMATION CONTACT: Kimberly Matalik, (202) 268-3500, or 
Kevin Coleman, (202) 268-2851.

SUPPLEMENTARY INFORMATION: Formerly the regulations governing the 
discontinuance of post offices were set forth in part 113 of the 
Domestic Mail Manual (DMM), a publication incorporated by reference in 
the Code of Federal Regulations (CFR) under 39 CFR 111.1. The DMM was 
restructured and revised effective July 1, 1993 (58 FR 34887, June 30, 
1993), at which time the discontinuance regulations were published in 
the Domestic Mail Manual Transition Book (DMMT). On September 20, 1993, 
these DMMT regulations were revised, reorganized, and moved to the POM. 
The POM contains official regulations, 39 CFR 221.2(a)(2), but is 
chiefly designed for use within the Postal Service and is not 
incorporated by reference in the CFR. In order to ensure the broadest 
availability of these provisions to the public, the Postal Service has 
determined also to publish them in the CFR.
    The Postal Service therefore amends part 241 of title 39 of the CFR 
to set forth, without substantive amendment, its post office 
discontinuance regulations.

List of Subjects in 39 CFR Part 241

    Organization and functions (Government agencies), Postal Service.

    1. The authority citation for part 241 continues to read as 
follows:

    Authority: 39 U.S.C. 401.

PART 241--ESTABLISHMENT CLASSIFICATION, AND DISCONTINUANCE

    2. The part heading for part 241 is revised as set forth above.
    3. Part 241 is amended by adding new Sec. 241.3 to read as follows:


Sec. 241.3  Discontinuance of post offices.

    (a) Introduction--(1) Coverage. This section establishes the rules 
governing the Postal Service's consideration of whether an existing 
post office should be discontinued. The rules cover any proposal to 
replace a post office with a community post office, station or branch, 
consolidation with another post office, and any proposal to discontinue 
a post office without providing a replacement facility.
    (2) Legal requirements. Under 39 U.S.C. 404(b), any decision to 
close or consolidate a post office must be based on certain criteria. 
These include the effect on the community served; the effect on 
employees of the post office; 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 post office 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 post office 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 post office 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 the affected post office 
may appeal the decision to the Postal Rate Commission.
    (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 by 39 U.S.C. 404(b)(5) to make a 
determination on the appeal no later than 120 days after receiving the 
appeal.
    (vii) The following is a summary table of the notice and appeal 
periods under the statute for these regulations.

BILLING CODE 7710-12-P

TR09JN94.001


BILLING CODE 7710-12-C
    (3) 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 a district manager, Customer Service and 
Sales, to propose the discontinuance of a particular post office are 
fully articulated and disclosed at a stage that enables customer 
participation to make a helpful contribution toward the final decision.
    (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 post office should be the ZIP Code of the 
facility providing replacement service to that address. In some cases, 
the ZIP Code originally assigned to the discontinued post office may be 
kept, if the responsible district manager, Customer Service and Sales, 
submits a request with justification to Address Management, Postal 
Service Headquarters, before the proposal to discontinue the post 
office is posted.
    (i) In a consolidation, the ZIP Code for the replacement community 
post office, station, or branch is either (A) the ZIP Code originally 
assigned to the discontinued post office, or (B) the ZIP Code of the 
replacement facility's parent post office, whichever provides the most 
expeditious distribution and delivery of mail addressed to the 
customers of the replacement facility.
    (ii) If the ZIP Code is changed and the parent post office covers 
several ZIP Codes, the ZIP Code must be that of the delivery area 
within which the facility is located.
    (3) Post office name in address. If all the delivery addresses 
using the name of the post office to be discontinued are assigned the 
same ZIP Code, customers may continue to use the discontinued post 
office name in their addresses, instead of the new delivering post 
office name.
    (4) Name of facility established by consolidation. If a post office 
to be discontinued is consolidated with one or more other post offices 
by establishing in its place a community post office, classified or 
contract station, or branch affiliated with another post office 
involved in the consolidation, the replacement unit is given the same 
name of the discontinued post office.
    (5) List of discontinued post offices. Publication 65, National 
Five-Digit ZIP Code and Post Office Directory, lists all post offices 
discontinued after March 14, 1977, for mailing address purposes only if 
they are used in addresses. The ZIP Codes listed for discontinued 
offices are those assigned under this subsection.
    (c) Initial proposal--(1) In general. If a district manager, 
Customer Service and Sales, believes that the discontinuance of a post 
office within his or her responsibility may be warranted, the manager:
    (i) Must use the standards and procedures in Sec. 241.3 (c) and 
(d).
    (ii) Must investigate the situation.
    (iii) May propose the post office be discontinued.
    (2) Consolidation. The proposed action may include a consolidation 
of post offices to substitute a community post office or a classified 
or contract station or branch for the discontinued post office if:
    (i) The communities served by two or more post offices are being 
merged into a single incorporated village, town, or city; or
    (ii) A replacement facility is necessary for regular and effective 
service to the area served by the post office considered for 
discontinuance.
    (3) Views of postmasters. Whether the discontinuance under 
consideration involves a consolidation or not, the district manager, 
Customer Service and Sales, must discuss the matter with the postmaster 
(or the officer in charge) of the post office considered for 
discontinuance, and with the postmaster of any other post office 
affected by the change. The manager should make sure that these 
officials submit written comments and suggestions as part of the record 
when the proposal is reviewed.
    (4) Preparation of written proposal. The district manager, Customer 
Service and Sales, must gather and preserve for the record all 
documentation used to assess the proposed change. If the manager thinks 
the proposed action is warranted, he or she must prepare a document 
titled ``Proposal to (Close) (Consolidate) the (Name) Post Office.'' 
This document must describe, analyze, and justify in sufficient detail 
to Postal Service management and affected customers the proposed 
service change. The written proposal must address each of the following 
matters in separate sections:
    (i) Responsiveness to community postal needs. It is the policy of 
the Government, as established by law, that the Postal Service will 
provide a maximum degree of effective and regular postal services to 
rural areas, communities, and small towns where post offices are not 
self-sustaining. The proposal should (A) contrast the services 
available before and after the proposed change; (B) describe how the 
changes respond to the postal needs of the affected customers; and (C) 
highlight particular aspects of customer service that might be less 
advantageous as well as more advantageous.
    (ii) Effect on community. The proposal must include an analysis of 
the effect the proposed discontinuance might have on the community 
served, and discuss the application of the requirements in 
Sec. 241.3(b).
    (iii) Effect on employees. The written proposal must summarize the 
possible effects of the change on the postmaster, supervisors, and 
other employees of the post office considered for discontinuance. (The 
district manager, Customer Service and Sales, must suggest measures to 
comply with personnel regulations related to post office discontinuance 
and consolidation.)
    (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, Customer Service and Sales, 
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 notice: 
``This Is A Proposal. It Is Not A Final Determination To (Close) 
(Consolidate) This Post Office.''
    (A) If a final determination is made to close or consolidate this 
post office, after public comments on this proposal are received and 
taken into account, a notice of that final determination must be posted 
in this post office.
    (B) The final determination must contain instructions on how 
affected customers may appeal that decision to the Postal Rate 
Commission. Any such appeal must be received by the Commission within 
30 days of the posting of the final determination.
    (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 in each affected post office. 
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 post offices.
    (iii) Provide a name and telephone number to call for information.
    (2) Proposal and comment notice. The following is a sample format 
that may be used for the proposal and comment notice.

BILLING CODE 7710-12-P

TR09JN94.002


BILLING CODE 7710-12-C
    (3) Other steps. In addition to providing notice and inviting 
comment, the district manager, Customer Service and Sales, must take 
any other steps necessary to ensure that the persons served by the 
affected post office understand the nature and implications of the 
proposed action (e.g., meeting with community groups and following up 
on comments received that seem to be based on incorrect assumptions or 
information).
    (i) If oral contacts develop views or information not previously 
documented, whether favorable or unfavorable to the proposal, the 
district manager, Customer Service and Sales, 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, Customer Service and Sales, may not rely on communications 
received from anyone unless submitted in writing for the record.
    (4) Record. The district manager, Customer Service and Sales, must 
keep as part of the record for his or her consideration and for review 
by the senior vice president of Customer Service and Sales all the 
documentation gathered about the proposed change.
    (i) The record must include all information that the district 
manager, Customer Service and Sales, considered, and the decision must 
stand on the record. No 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 post office proposed for 
discontinuance or at the post office providing alternative service, if 
the office to be discontinued was temporarily suspended, beginning no 
later than the date on which notice is posted and extending through the 
comment period.
    (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 the Administrative Support Manual (ASM) Sec. 352.6.
    (e) Consideration of public comments and final local 
recommendation.--(1) Analysis of comments. After waiting not less than 
60 days after notice is posted under Sec. 241.3(d)(1) the district 
manager, Customer Service and Sales, 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, Customer Service and Sales, 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, Customer 
Service and Sales, decides against the proposed discontinuance, he or 
she must post, in the post office considered for discontinuance, a 
notice stating that the proposed closing or consolidation is not 
warranted.
    (ii) Discontinuance warranted. If the district manager, Customer 
Service and Sales, 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 manager must:
    (A) Forward the revised proposal and the entire record to the 
senior vice president of Customer Service and Sales for final review.
    (B) Attach a certificate that all documents in the record are 
originals or true and correct copies.
    (f) Postal Service decision.--(1) In general. The senior vice 
president of Customer Service and Sales or a designee must review the 
proposal of the district manager, Customer Service and Sales. This 
review and the decision on the proposal must be based on and supported 
by the record developed by the district manager, Customer Service and 
Sales. The senior vice president can instruct the district manager to 
provide more information to supplement the record. Each such 
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 below.
    (2) Approval. The senior vice president of Customer Service and 
Sales or a designee may approve the proposal of the district manager, 
Customer Service and Sales, with or without further revisions. If 
approved, 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(b). 
The Final Determination must include the following notices:
    (i) Supporting materials. ``Copies of all materials on which this 
Final Determination is based are available for public inspection at the 
(Name) Post Office during normal office hours.''
    (ii) Appeal rights. ``This Final Determination to (close) 
(consolidate) the (name) Post Office may be appealed by any person 
served by that office to the Postal Rate Commission. Any appeal must be 
received by the Commission within 30 days of the date this Final 
Determination was posted. If an appeal is filed, copies of appeal 
documents prepared by the Postal Rate Commission, or the parties to the 
appeal, must be made available for public inspection at the (name) Post 
Office during normal office hours.''
    (3) Disapproval. The senior vice president of Customer Service and 
Sales or a designee may disapprove the proposal of the district 
manager, Customer Service and Sales, and return it and the record to 
the manager with written reasons for disapproval. The manager must post 
a notice in each affected post office that the proposed closing or 
consolidation has been determined to be unwarranted.
    (4) Return for further action. The senior vice president of 
Customer Service and Sales or a designee may return the proposal of the 
district manager, Customer Service and Sales, 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 senior vice president of Customer 
Service and Sales, must be placed on file in the Postal Service 
Headquarters Library.
    (g) Implementation of final determination--(1) Notice of final 
determination to discontinue post office. The district manager, 
Customer Service and Sales, must:
    (i) Provide notice of the Final Determination by posting a copy 
prominently in the affected post office or offices. The date of posting 
must be noted on the first page of the posted copy as follows:

``Date of posting:''
    The district manager, Customer Service and Sales, must notify 
the senior vice president of Customer Service and Sales in writing 
of the date of posting.

    (ii) Ensure that a copy of the completed record is available for 
public inspection during normal business hours at each post office 
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 the ASM 352.6.
    (2) Implementation of determinations not appealed. If no appeal is 
filed pursuant to 39 U.S.C. 404(b)(5), the official closing date of the 
office must be published in the Postal Bulletin, effective the first 
Saturday 90 days after the Final Determination was posted. A district 
manager, Customer Service and Sales, may request a different date for 
official discontinuance in the Post Office Change Announcement document 
submitted to the senior vice president of Customer Service and Sales. 
However, the post office may not be discontinued sooner than 60 days 
after the posting of the notice required by Sec. 241.3(g)(1).
    (3) Actions during appeal--(i) Implementation of discontinuance. If 
an appeal is filed, only the senior vice president of Customer Service 
and Sales may direct a discontinuance before disposition of the appeal. 
However, the post office may not be discontinued sooner than 60 days 
after the posting of notice required by Sec. 241.3(g)(1).
    (ii) Display of appeal documents. Classification and Customer 
Service, Postal Service General Counsel, must provide the district 
manager, Customer Service and Sales, 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 post office to be discontinued. If the operation of that post 
office has been suspended, the manager must display copies in the 
affected post offices.
    (B) All documents except the Postal Rate 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 for 30 days.
    (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 the first Saturday 90 days 
after the Commission renders its opinion, if not previously implemented 
under Sec. 241.3(g)(3)(i). However, the post office may not be 
discontinued sooner than 60 days after 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 senior 
vice president of Customer Service and Sales must direct that either 
(A) notice be provided under Sec. 241.3(f)(3) that the proposed 
discontinuance is determined not to be warranted or (B) the matter be 
returned to an appropriate stage under these regulations for further 
consideration following such instructions as the senior vice president 
may provide.
Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 94-14057 Filed 6-8-94; 8:45 am]
BILLING CODE 7710-12-P