§ 916.4 Notice of hearing.

(a) The regional counsel, upon receipt of the respondent's request for a hearing, shall serve upon the respondent, by registered or certified mail, a notice of hearing setting forth the date, time, and place of hearing, and the name of the hearing officer who will preside. A copy of the rules will accompany the notice of hearing.

(b) Whenever practicable, the hearing date will be within 30 days from date of the notice of hearing served on the mailer.

(c) Requests for continuances and extensions of the scheduled hearing date shall be filed with the hearing officer and such requests, within the discretion of the hearing officer, shall not be granted except for good and substantial reasons shown.

U.S. Postal Service under the supervision of the hearing officer. Copies of the transcript shall be supplied to the parties to the proceeding by Postal Service personnel at the rates provided by § 262.7 of this chapter, or if by the reporter, at rates not to exceed the maximum rates fixed by the contract between the U.S. Postal Service and the reporter.

(c) A party may object to admissions of evidence and shall make a brief statement of the grounds for the objections. Formal exceptions to the rulings of the presiding officer are unnecessary.

(d) All relevant and material evidence is admissible, including hearsay evidence of a trustworthy nature.

(e) The U.S. Postal Service is not au

tiated under 39 U.S.C. 3008 shall be the mailer, referred to as "Respondent", and the postmaster, referred to as "Complainant".

§ 916.5 Hearing officers.

The presiding officer at the hearing held under this part shall be the appropriate regional counsel of the U.S. Postal Service, or an alternate hearing officer designated by the regional counsel or by the General Counsel of the U.S. Postal Service, to preside as hearing officer and to exercise the same authority as the regional counsel in the proceeding under this part.

[33 FR 15026, Oct. 8, 1968]

§ 916.6 Change of place of hearing.

Requests for change of place of hearing based on good and substantial reasons therefor, may be filed with the hearing officer. Such requests may be granted or denied, within the discretion of the hearing officer, who shall consider the convenience and necessity of all parties concerned and the jurisdictional requirements.

§ 916.7 Conduct of the hearings.

(a) Testimony shall be under oath and witnesses shall be subject to cross examination.

(b) Hearings shall be stenographically reported by postal personnel, or if necessary, a contract reporter of the

quiring the attendance or testimony of witnesses or the production of documents.

(f) The U.S. Postal Service is not authorized to pay fees and expenses for the respondent's witnesses or for depositions requested by the respondent pursuant to § 916.8.

§ 916.8 Depositions.

(a) Not later than 5 days after receipt of a notice of hearing by respondent under § 916.4, either party may file with the hearing officer a request for the taking of testimony by deposition. A copy of the request shall be served on complainant. Requests shall contain a statement under oath, signed by the respondent, setting out the reasons for the request, the time and place for the taking of depositions, the name and address of the person before whom the deposition will be taken, and the name and address of the witness or witnesses whose deposition or depositions are sought. The statement shall also show the relevancy of the testimony to be abduced. The granting or denying of the request shall lie within the discretion of the presiding officer.

(b) Parties shall have the right to examine witnesses at the taking of depositions and to interpose objections to questions. Testimony shall be under oath. The deposition officer shall file

the testimony taken, as directed by order of the hearing officer.

(c) The party requesting the deposition shall pay all fees required to be paid to witnesses and the deposition officer.

(d) All or any part of the deposition may be offered in evidence at the hearing by any party and shall become part of the record in the proceeding. If the deposition is not offered and received in evidence, it shall not be considered part of the record.

§ 916.9 Submission in lieu of testimony.

(a) In lieu of presenting testimony at a hearing, the parties may, with the approval of the hearing officer, enter into a stipulation for the submission of verified documentary evidence to the hearing officer. The hearing officer will render a decision on the issue of alleged violation of 39 U.S.C. 3008 based solely on the evidence submitted.

(b) Submissions by the parties may be accompanied by a memorandum in support of respective positions on the issue or issues involved.

(c) A party against whom an adverse decision has been rendered by the hearing officer, may file an appeal from such decision, in accordance with § 916.12.

of the hearing and render a written decision within a reasonable time thereafter. Parties may be requested to submit briefs in support of recommended findings, at the discretion of the hearing officer.

§ 916.12 Appeals.

(a) A party may file an appeal from an adverse decision of the hearing officer. Appeals must be filed no later than 15 days from date of issuance of the hearing officer's decision. An appeal shall be initiated by the filing of a notice of appeal and supporting briefs, with the Assistant General Counsel, Consumer Protection Office, U.S. Postal Service, Washington, D.C. 20260.

(b) The decision of the Assistant General Counsel, Consumer Protection Office, shall be the final Departmental decision, from which no further appeal will lie.

§ 916.13 Waiver of right to appeal.

In the event the respondent files a response pursuant to paragraph (d) of 39 U.S.C. 3008 and does not request a hearing on the issues, he shall be deemed to have waived the provisions of § 916.11, in which event the determination by the complainant as to violation of 39 U.S.C. 3008 shall become the final Postal Service decision from which no appeal shall lie.

§ 916.14 Settlement agreements.

(a) These rules do not preclude the disposition of any matter by agreement between the parties at any stage of the proceeding and in accordance with paragraphs (b) and (c) of this section.

(b) Settlement agreements undertaken between the parties after filing of a demand for a hearing shall be subject to the approval of the hearing officer.

(c) Settlement agreements between the parties subsequent to the filing of an appeal shall be subject to approval of the appellate officer-the Assistant General Counsel, Consumer Protection Office.

Rules of Procedure Before the
Logistics Department

PART 927-RULES OF PROCEDURE
RELATING TO FINES, DEDUCTIONS,
AND DAMAGES

Sec.

927.1 Noncontractual carriage of mail by

vessel.

927.2 Noncontractual air service. 927.3 Other remedies.

AUTHORITY: 39 U.S.C. 401, 2601, Chap. 54, Sec. 5604; 49 U.S.C. 1357, 1471.

SOURCE: 45 FR 12418, Feb. 26, 1980, unless otherwise noted.

§ 927.1 Noncontractual carriage of 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 section 19-504, Postal Contracting Manual, has unreasonably or unnecessarily delayed the mails, has 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 the General Manager, Logistics Division, of the postal region in which the mail was dispatched or was received.

(b) Review, investigation, recommendation. The General Manager, Logistics Division, will investigate the matter. The Manager will record findings of fact and make a recommendation concerning the need for imposition of fine or penalty with the reasons for the recommendation. The Manager will then forward the file to the Director, Office of Transportation Services, and will advise the carrier of the recommendation.

(c) Penalty action. The Director, Office of Transportation Service, 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 the Director, Office of Transportation Services, to take penalty action will set forth in detail the facts and reasons upon which the determination is based. The Director 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 30 days after receipt of the tentative decision. The Director, after review of the record, will advise the carrier of the final decision.

(d) Appeal. If the final decision includes a penalty, the Director will advise the carrier that it may, within 30 days, appeal the action in writing to the Assistant Postmaster General, Mail Processing Department, U.S. Postal Service, 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, the Director will close the record. When an appeal is taken, the Assistant Postmaster General, Mail Processing Department, will review the complete record and decide the appeal. He will advise the carrier of the decision in writing and will take action consistent with that decision. The Assistant Postmaster General, Mail Processing Department, may sustain, rescind, or compromise a fine or penalty. The decision of the Assistant Postmaster General, Mail Processing Department, on appeal shall be the final decision of the Postal Service. The Postal Service may, in its discretion, deduct from pay 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 section 19-504, Postal Contracting Manual (Publication 41).

§ 927.2 Noncontractual air service.

(a) Report of infraction. Each mail handling irregularity will be reported on a prescribed form 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 on the form. A copy of the form will be provided to the local station manager of the carrier concerned at the close of each tour

and not less frequently than each 24 hours.

(b) Carrier conferences. At least once per month, postal officials will schedule a meeting 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 to the form. The form on which penalty action is recommended will then be forwarded to the General Manager, Logistics Division, of the appropriate postal region.

(c) Review, investigation, recommendation. The General Manager, Logistics Division, will review the matter. In those instances in which a monetary fine or penalty appears warranted but the carrier has disputed the facts alleged by the reporting authority, the General Manager, Logistics Division, will investigate the matter to resolve the differences. The Manager will record findings of fact and make a recommendation concerning the need for imposition of a fine or penalty, with the reasons for the recommendation. The Manager will then forward the file to the Director, Office of Transportation Services, U.S. Postal Service, and will advise the carrier of the recommendation.

(d) Penalty action. The Director, Office of Transportation Services, 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. A tentative decision of the Director, Office of Transportation Services, to take penalty action will set forth in detail the facts and reasons upon which the determination is based. The Director will send the tentative decision, including notice of the irregularities alleged and the amount of fine or penalty proposed, to the carrier. The carrier may present a written defense to the proposed action within 30 days after the receipt of the tentative decision. The Director, after review of the record,

will advise the carrier of the final decision.

(e) Appeal. If the final decision includes a penalty, the Director will advise the carrier that it may, within 30 days, appeal the action in writing to the Assistant Postmaster General, Mail Processing Department, U.S. Postal Service, 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, the Director will close the file. When an appeal is taken, the Assistant Postmaster General, Mail Processing Department, will review the complete record and decide the appeal. He will advise the carrier of the decision in writing and will take action consistent with that decision. The Assistant Postmaster General, Mail Processing Department, may sustain, rescind, or compromise a fine or penalty. The decision of the Assistant Postmaster General, Mail Processing Department, 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 the section.

(f) Details of administration. For further administrative details, forms, and other implementing materials adapted to the respective modes of transportation, see Transportation Handbook M-31, Air Service Instructions, Part 320, for interstate air transportation; Transportation Handbook T-1, International Airmail, Exchange Office Procedures. Part 4, for foreign air transportation; and Transportation Handbook T-7, Handling, Dispatch, and Transportation of Military Mail, Part 10, for overseas air transportation.

§ 927.3 Other remedies.

The procedures and other requirements of this part apply only where the 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 the mail to protect the public interest in

the event of major irregularities such as theft, deliberate loss, damage, or abandonment of the mail.

PART 931-RULES OF PROCEDURE GOVERNING THE COMPROMISE OF OBLIGATIONS

§ 931.1 Compromise of obligations.

Any proposition of compromise shall be submitted in writing, and the amount offered in compromise shall be deposited with the Manager, Accounting Division or the appropriate postal data center. If the offer in compromise is rejected the amount deposited will be returned. The amount of a compromise offer must be tendered unconditionally for deposit pending the consideration of acceptance. Checks and drafts cannot be accepted as offers in compromise when they bear endorsements or instructions to the effect that the acceptance of such checks or drafts constitutes settlement in full of the claim, fine, penalty, or liability in connection with which the offer is made, except that such checks or drafts may be accepted when they are accompanied with a written waiver of the endorsements or instructions printed thereon. Offers in compromise should be transmitted or delivered to the office or officer of the Postal Service from whom demand is received for payment of the amount due.

(39 U.S.C. 401)

[26 FR 11662, Dec. 6, 1961. Redesignated at 33 FR 6291, April 25, 1968]

Rules of Procedure Before the Postal Inspection Service

PART 946-RULES OF PROCEDURE RELATING TO THE DISPOSITION OF MONEY OR OTHER PROPERTY RECOVERED BY POSTAL INSPECTORS

§ 946.1 Disposition of money or other property recovered by Postal Inspectors.

(a) The Assistant Postmaster General and Chief Postal Inspector is authorized by the Postmaster General to determine upon satisfactory evidence the ownership of money or other property lost or stolen from the mails and recovered by Postal Inspectors, and to

dispose of it to the U.S. Government, or to the senders or owners of the mail as their interests shall appear, as indicated below.

(b) When investigation by Postal Inspectors established individual responsibility for mistreatment of mail matter, they give attention to collecting the amount of the loss. Such collections are forwarded by Inspectors to the Director, New York Postal Data Center, U.S. Postal Service, for deposit. The Assistant Postmaster General and Chief Postal Inspector then reviews the facts and disposes of the money.

(c) When Postal Inspectors recover identical money and identified articles stolen from the mails they restore it to the owners, if it is not needed as evidence or when no longer needed as such, unless otherwise directed by the United States Attorney or the Court or the Postal Service, or unless the owners have received an indemnity payment or other settlement is in order.

(d) When Postal Inspectors recover property other than money which is believed to be the contents of mail but not so identified, they forward it to the designated post offices for treatment as dead mail matter if it is not needed as evidence or when no longer needed as such, unless otherwise directed by the United States Attorney or the Court or the Postal Service.

(e) When an inspector believes that the disposition of money or other property by him is inadvisable because of insufficiency of identification, conflicting claims, or other reasons, the disposition of the money or other property is determined by the Assistant Postmaster General and Chief Postal Inspector.

(f) If money collected by inspectors represents a compromise offer, it is forwarded to the Director, New York Postal Data Center for deposit. The Assistant Postmaster General and Chief Postal Inspector will consider its disposal.

(g) Subject to the foregoing, inspectors generally disburse collections made by them direct to those entitled to the money if the collections apply to a raised, stolen, double paid, or wrongly paid postal money order; cus