[Federal Register Volume 65, Number 96 (Wednesday, May 17, 2000)]
[Rules and Regulations]
[Pages 31265-31266]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-12319]


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POSTAL SERVICE

39 CFR Part 913


Procedures for the Issuance of Administrative Subpoenas Under 39 
U.S.C. 3016

AGENCY: Postal Service.

ACTION: Final rule.

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SUMMARY: This final rule establishes procedures for the issuance of 
administrative subpoenas in investigations of false representations and 
lotteries under 39 U.S.C. 3005(a). It adopts with changes a proposed 
rule published for public comment on March 16, 2000 (65 FR 14229-30). 
For reasons stated below, this rule will become effective immediately.

EFFECTIVE DATE: May 17, 2000.

FOR FURTHER INFORMATION CONTACT: Elizabeth P. Martin, (202) 268-3022.

SUPPLEMENTARY INFORMATION: The Deceptive Mail Prevention and 
Enforcement Act, Public Law 106-168, 113 Stat. 1806 (December 12, 
1999), generally amended chapter 30 of title 39, United States Code, to 
make nonmailable certain deceptive matter relating to sweepstakes, 
skill contests, and facsimile checks. It also amended provisions 
relating to administrative procedures and orders, and added civil 
penalties relating to such matters.
    Under new 39 U.S.C. 3016, the Postmaster General has authority to 
issue administrative subpoenas requiring the production of any records 
(including books, papers, documents, and other tangible things which 
constitute or contain evidence) which the Postmaster General considers 
relevant or material in any investigation conducted under 39 U.S.C. 
3005(a), dealing with false representations and lotteries.
    On March 16, 2000, the Postal Service published in the Federal 
Register a proposed new Part 913 to title 39 of the Code of Federal 
Regulations to establish the procedures to be used for the issuance of 
the administrative subpoenas authorized under 39 U.S.C. 3016 (65 FR 
14229-30). The proposed rules set forth the conditions under which 
subpoenas may be issued, the methods of service of subpoenas, the means 
by which subpoenas may be enforced, and the restrictions on the 
disclosure of subpoenaed information. Although exempt by 39 U.S.C. 
410(a) from the notice and comment requirements of the Administrative 
Procedure Act, the Postal Service invited comments on the proposed new 
Part 913. The Postal Service received two comments, and has considered 
and incorporated several of the points raised therein.
    Publishers Clearing House (PCH) suggested that Sec. 913.1(a) should 
acknowledge that the authority to issue the subpoenas lies with the 
Postmaster General. The regulation has been changed to clarify that 
fact. Both PCH and the Postal Service Office of the Inspector General 
(OIG) expressed concern that the regulations should more closely track 
the language of the statute regarding conditions precedent to the 
issuance of a subpoena. A new Sec. 913.1(c) has been added to address 
those concerns. Current subsections (c) and (d) are relettered as (d) 
and (e). New Sec. 913.1(d)(3) similarly addresses the concern regarding 
conditions precedent.
    New section 913(d)(1) is changed to clarify that only a 
specifically authorized Inspector may submit a request. At the 
suggestion of the OIG, new 913.1(d)(4) is changed to clarify that the 
General Counsel, at his or her discretion, may issue or deny a 
subpoena, require additional information, or honor requests to amend or 
supplement a request.
    Both the OIG and PCH expressed concerns with respect to the clarity 
of Sec. 913.4. We have considered their suggestions, however, we have 
not adopted their proposed language. The language published is that 
which is contained in the statute, and thus any lack of clarity is 
statutory. We interpret that language to state that anything turned 
over pursuant to a subpoena is exempt from release under the Freedom of 
Information Act.
    Finally, the OIG suggested that certain new reporting requirements 
concerning the number of cases in which the authority under 39 U.S.C. 
3016 is used should be addressed by these regulations. We have 
determined that the reporting requirements are not relevant to the 
process by which subpoenas are requested and issued, and have declined 
to make the suggested change.
    With regard to the effective date, we have determined that there is 
good cause to make the new regulations effective upon publication. We 
believe that the public interest would not be served by providing 
persons who might

[[Page 31266]]

be subject to false representation or lottery investigations under 39 
U.S.C. 3005(a) with a further ``window of opportunity'' until their 
records become subject to administrative subpoena requirements.

List of Subjects in 39 CFR Part 913

    Administrative practice and procedure, False Representations, 
Lotteries.

    Accordingly, for the reasons discussed above, the Postal Service 
hereby adds Part 913 to title 39, of the Code of Federal Regulations as 
set forth below.

PART 913--PROCEDURES FOR THE ISSUANCE OF ADMINISTRATIVE SUBPOENAS 
UNDER 39 U.S.C. 3016

Sec.
913.1  Subpoena authority.
913.2  Service.
913.3  Enforcement.
913.4  Disclosure.

    Authority:  39 U.S.C. 204, 401, 404, 3005, 3016.


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 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.


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.

Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 00-12319 Filed 5-16-00; 8:45 am]
BILLING CODE 7710-12-U