[Federal Register Volume 62, Number 229 (Friday, November 28, 1997)]
[Rules and Regulations]
[Pages 63278-63281]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-30010]


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POSTAL SERVICE

39 CFR Part 966


Rules of Practice in Proceedings Relative to Administrative 
Offsets Initiated Against Former Employees of the Postal Service

AGENCY: Postal Service.

ACTION: Final rule.

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SUMMARY: The Judicial Officer of the Postal Service hereby revises the 
rules of procedure governing the conduct of hearings relative to 
administrative offsets initiated by the Postal Service. This revision 
transfers the authority to pursue a claim from the Postal Inspection 
Service to other Postal Service officials, and expands the types of 
debt that can be considered in these proceedings. Part 966 is renamed 
to reflect these changes.

EFFECTIVE DATE: November 28, 1997.

FOR FURTHER INFORMATION CONTACT: Administrative Judge Norman D. 
Menegat, (202) 268-2138.

SUPPLEMENTARY INFORMATION: Acting in accordance with authority 
delegated under 39 CFR 226.2(e)(1)(iv), the Judicial Officer revises as 
set forth below 39 CFR Part 966, the rules of practice governing 
proceedings relative to administrative offsets initiated by the Postal 
Service. The rules in this part apply to any hearing on the Postal 
Service's determination of the existence or amount of a debt owed the 
Postal

[[Page 63279]]

Service by a former postal employee or on the terms of the Postal 
Service's proposed debt repayment schedule.
    The purpose of the revision is to transfer the authority to pursue 
a claim against a former employee from the Postal Inspection Service to 
other Postal Service officials. Under the previous rules, the 
Inspection Service initially asserted a claim against the former 
employee, received and acted upon the former employee's request for 
reconsideration and represented the Postal Service in any hearing 
requested by the former employee under Part 966. Under the revised 
rules, the claim will be initially asserted by the Postal Service's 
Minneapolis Accounting Service Center. Reconsideration of the claim, if 
sought by the former employee, is to be requested from the former 
employee's Postmaster/Installation Head, and the General Counsel or 
that officer's designee will represent the Postal Service in any 
hearing under Part 966.
    The types of debt that could be considered in these proceedings 
were previously limited to those ``based on a loss from the mails or 
from Postal Service revenues.'' That limitation has been removed, and 
these procedures apply to debts the Postal Service determines the 
former employee owes, regardless of the basis of the debt. 
Additionally, the new rules provide that a former employee whose 
liability or offset schedule was finally determined while he or she was 
employed by the Postal Service may not obtain a hearing on the same 
debt or offset schedule under these procedures after separating from 
the Postal Service. The revised regulation includes other minor, 
clarifying changes, including that an oral hearing may be held by 
telephone or video conference as well as in person.
    These revisions are changes in agency rules of procedure that do 
not substantially affect any rights or obligations of private parties. 
Therefore, it is appropriate for their adoption by the Postal Service 
to become effective immediately.

List of Subjects in 39 CFR Part 966

    Administrative practice and procedure, Claims, Debt Collection Act, 
rules of practice, Postal Service.

    Accordingly, the Postal Service revises 39 CFR Part 966 to read as 
set forth below:

PART 966--RULES OF PRACTICE IN PROCEEDINGS RELATIVE TO 
ADMINISTRATIVE OFFSETS INITIATED AGAINST FORMER EMPLOYEES OF THE 
POSTAL SERVICE

Sec.
Sec. 966.1  Authority for rules.
Sec. 966.2  Scope of rules.
Sec. 966.3  Definitions.
Sec. 966.4  Petition for a hearing and supplement to petition.
Sec. 966.5  Effect of petition filing.
Sec. 966.6  Filing, docketing and serving documents; computation of 
time; representation of parties.
Sec. 966.7  Answer to petition.
Sec. 966.8  Authority and responsibilities of Hearing Official or 
Judicial Officer.
Sec. 966.9  Opportunity for oral hearing.
Sec. 966.10  Initial decision.
Sec. 966.11  Appeal.
Sec. 966.12  Waiver of rights.
Sec. 966.13  Ex parte communications.

    Authority: 39 U.S.C. 204, 401, 2601.


Sec. 966.1  Authority for rules.

    These rules of practice are issued by the Judicial Officer pursuant 
to authority delegated by the Postmaster General.


Sec. 966.2  Scope of rules.

    The rules in this part apply to any petition filed by a former 
postal employee:
    (a) To challenge the Postal Service's determination that he or she 
is liable to the Postal Service for a debt incurred in connection with 
his or her Postal Service employment; and/or
    (b) To challenge the administrative offset schedule proposed by the 
Postal Service for collecting any such debt.


Sec. 966.3  Definitions.

    (a) Administrative offset refers to the withholding of money 
payable by the Postal Service or the United States to, or held by the 
Postal Service or the United States for, a former employee in order to 
satisfy a debt determined to be owed by the former employee to the 
Postal Service.
    (b) Debt refers to any amount determined by the Postal Service to 
be owed to the Postal Service by a former employee.
    (c) Former employee refers to an individual whose employment with 
the Postal Service has ceased. An employee is considered formally 
separated from the Postal Service rolls as of close of business on the 
effective date of his or her separation. Postal Service Form 50.
    (d) General Counsel refers to the General Counsel of the Postal 
Service, and includes a designated representative.
    (e) Hearing Official refers to an Administrative Law Judge 
qualified to hear cases under the Administrative Procedure Act, an 
Administrative Judge appointed under the Contract Disputes Act of 1978, 
or any other qualified person licensed to practice law designated by 
the Judicial Officer to preside over a hearing conducted pursuant to 
this part.
    (f) Judicial Officer refers to the Judicial Officer, Associate 
Judicial Officer, or Acting Judicial Officer of the Postal Service.
    (g) Postmaster/Installation Head refers to the top management 
official at a particular post office or installation when an alleged 
debt owed by a former employee was incurred, or to that official's 
successor, or to the department head who had general supervisory 
responsibility for a former employee at Area Offices or National 
Headquarters when an alleged debt owed by that former employee was 
incurred, or to that official's successor. Where the former employee 
was a Postmaster/Installation Head, the term refers to the official to 
whom the Postmaster/Installation Head reported when an alleged debt 
owed by that former employee was incurred, or to that official's 
successor. Where the former employee was in the Inspection Service, the 
term refers to the former employee's immediate supervisor when an 
alleged debt owed by that former employee was incurred, or to that 
official's successor. Where the former employee was in the Office of 
Inspector General, the term refers to the Inspector General, or to the 
Inspector General's delegate.
    (h) Reconsideration refers to the review of an alleged debt and/or 
the proposed offset schedule conducted by the Postmaster/Installation 
Head at the request of a former employee alleged to be indebted to the 
Postal Service.
    (i) Recorder refers to the Recorder, Judicial Officer Department, 
United States Postal Service, 475 L'Enfant Plaza, SW., Washington, DC 
20260-6100.


Sec. 966.4  Petition for a hearing and supplement to petition.

    (a) A former employee who is alleged to be responsible for a debt 
to the Postal Service may petition for a hearing under this part, 
provided:
    (1) Liability for the debt and/or the proposed offset schedule has 
not been established under Part 452.3 or Part 462.3 of the Employee & 
Labor Relations Manual;
    (2) He or she has received a Notice from the Minneapolis Accounting 
Service Center (or its successor installation) informing him or her of 
the debt and an offset schedule to satisfy the debt and of the right to 
request

[[Page 63280]]

reconsideration by the Postmaster/Installation Head; and
    (3) He or she has requested and received reconsideration of the 
existence or amount of the alleged debt and/or the offset schedule 
proposed by the Postal Service.
    (b) Within thirty (30) calendar days after the date of receipt of 
the Postmaster/Installation Head's written decision upon 
reconsideration, the former employee must file a written, signed 
petition, requesting a written or oral hearing, with the Recorder, 
Judicial Officer Department, United States Postal Service, 475 L'Enfant 
Plaza, SW., Washington, DC 20260-6100.
    (c) The petition must include the following:
    (1) The words, ``Petition for Review Under 39 CFR Part 966'';
    (2) The former employee's name and social security number;
    (3) The former employee's home address and telephone number, and 
any other address and telephone number at which the former employee may 
be contacted about these proceedings;
    (4) A statement of the date the former employee received the 
Postmaster/Installation Head's written decision upon reconsideration of 
the alleged debt, and a copy of the decision;
    (5) A statement indicating whether the former employee requests an 
oral hearing or a decision based solely on written submissions;
    (6) If the former employee requests an oral hearing, a statement 
describing the evidence he or she will produce which makes an oral 
hearing necessary, including a list of witnesses, with their addresses, 
whom the former employee expects to call; a summary of the testimony 
the witnesses are expected to present; the city requested for the 
hearing site, with justification for holding the hearing in that city; 
and at least three proposed dates for the hearing at least forty-five 
(45) days after the filing of the petition;
    (7) A statement of the grounds upon which the former employee 
objects to the Postal Service's determination of the debt or to the 
administrative offset schedule proposed by the Postal Service for 
collecting any such debt. This statement should identify with 
reasonable specificity and brevity the facts, evidence, and legal 
arguments, if any, which support the former employee's position; and
    (8) Copies of all records in the former employee's possession which 
relate to the debt and which the former employee may enter into the 
record of the hearing.
    (d) The former employee may, if necessary, file with the Recorder 
additional information as a supplement to the petition at any time 
prior to the filing of the answer to the petition under Sec. 966.7, or 
at such later time as permitted by the Hearing Official upon a showing 
of good cause.


Sec. 966.5  Effect of petition filing.

    Upon receipt and docketing of the former employee's petition, the 
Recorder will notify the General Counsel that the petition has been 
filed and that a timely filed petition stays further collection action.


Sec. 966.6  Filing, docketing and serving documents; computation of 
time; representation of parties.

    (a) Filing. All documents required under this part must be filed by 
the former employee or the General Counsel in triplicate with the 
Recorder. (Normal Recorder office business hours are between 8:15 a.m. 
and 4:45 p.m., eastern standard or daylight saving time as appropriate 
during the year.) The Recorder will transmit a copy of each document 
filed to the other party, and the original to the Hearing Official.
    (b) Docketing. The Recorder will maintain a docket record of 
proceedings under this part and will assign each petition a docket 
number. After notification of the docket number, the former employee 
and General Counsel should refer to it on any further filings regarding 
the petition.
    (c) Time computation. A filing period under the rules in this part 
excludes the day the period begins, and includes the last day of the 
period unless the last day is a Saturday, Sunday, or legal holiday, in 
which event the period runs until the close of business on the next 
business day.
    (d) Representation of parties. After the filing of the petition, 
further document transmittals for, or communications with, the Postal 
Service shall be through its representative, the General Counsel. If a 
former employee is represented by an attorney authorized to practice 
law in any of the United States or the District of Columbia or a 
territory of the United States, further transmissions of documents and 
other communications with the former employee shall be made through his 
or her attorney rather than directly with the former employee.


Sec. 966.7  Answer to petition.

    Within thirty (30) days after the date of receipt of the petition, 
the General Counsel shall file an answer to the petition, and attach 
all available relevant records and documents in support of the Postal 
Service's claim, or the administrative offset schedule proposed by the 
Postal Service for collecting any such claim; a statement of whether 
the Postal Service concurs in, or objects to, an oral hearing, if the 
former employee requests one, with the reason(s) for the Postal 
Service's objection; a list of witnesses the Postal Service intends to 
call if an oral hearing is requested and the request is granted; a 
synopsis of the testimony of each witness; a statement of concurrence 
or objection to the proposed location and dates for the oral hearing; 
and a statement of the basis for the determination of debt or offset 
schedule if not contained in the relevant records or documents. If the 
former employee files a supplement to the petition, the General Counsel 
may file any supplemental answer and records to support the position of 
the Postal Service within twenty (20) calendar days from the date of 
receipt of the supplement filed with the Recorder.


Sec. 966.8  Authority and responsibilities of Hearing Official or 
Judicial Officer.

    (a) In processing a case under this part, the Hearing Official's 
authority includes, but is not limited to, the following:
    (1) Ruling on all offers, motions, or requests by the parties;
    (2) Issuing any notices, orders, or memoranda to the parties 
concerning the hearing procedures;
    (3) Conducting telephone conferences with the parties to expedite 
the proceedings (a memorandum of a telephone conference will be 
transmitted to both parties);
    (4) Determining if an oral hearing is necessary, the type of oral 
hearing that would be appropriate, and setting the place, date, and 
time for such hearing;
    (5) Administering oaths or affirmations to witnesses;
    (6) Conducting the hearing in a manner to maintain discipline and 
decorum while assuring that relevant, reliable, and probative evidence 
is elicited on the issues in dispute, and that irrelevant, immaterial, 
or repetitious evidence is excluded;
    (7) Establishing the record in the case;
    (8) Issuing an initial decision or one on remand; and
    (9) Granting, at the request of either party, reasonable time 
extensions.
    (b) The Judicial Officer, in addition to possessing such authority 
as is described elsewhere in this part, shall possess all of the 
authority and responsibilities of a Hearing Official.


Sec. 966.9  Opportunity for oral hearing.

    An oral hearing generally will be held only in those cases which, 
in the opinion of the Hearing Official, cannot be resolved by a review 
of the documentary evidence, such as when

[[Page 63281]]

the existence, or amount, of a debt turns on issues of credibility or 
veracity. An oral hearing includes an in-person hearing, a telephonic 
hearing, or a hearing by video conference. When the Hearing Official 
determines that an oral hearing is not necessary, the decision shall be 
based solely on written submissions.


Sec. 966.10  Initial decision.

    (a) After the receipt of written submissions or after the 
conclusion of the hearing and the receipt of any post-hearing briefs, 
the Hearing Official shall issue a written initial decision, including 
findings of fact and conclusions of law, which the Hearing Official 
relied upon in determining whether the former employee is indebted to 
the Postal Service, or in upholding or revising the administrative 
offset schedule proposed by the Postal Service for collecting a former 
employee's debt. When the Judicial Officer presides at a hearing he or 
she shall issue a final or a tentative decision.
    (b) The Hearing Official shall promptly send to each party a copy 
of the initial or tentative decision, and a statement describing the 
right of appeal to the Judicial Officer in accordance with Sec. 966.11.


Sec. 966.11  Appeal.

    The initial or tentative decision will become final and an order to 
that effect will be issued by the Judicial Officer thirty (30) days 
after issuance and receipt by the parties of the initial or tentative 
decision unless the Judicial Officer, in his discretion, grants review 
upon appeal by either party, or on his own motion. If an appeal is 
denied, the initial or tentative decision becomes the final agency 
decision upon the issuance of such denial. The Judicial Officer's 
decision on appeal is the final agency decision with no further right 
of appeal within the agency.


Sec. 966.12  Waiver of rights.

    The Hearing Official may determine the former employee has waived 
his or her right to a hearing and administrative offset may be 
initiated if the former employee:
    (a) Files a petition for hearing after the end of the prescribed 
thirty (30) day period, and fails to demonstrate to the satisfaction of 
the Hearing Official good cause for the delay;
    (b) Has received notice to appear at an oral hearing but fails to 
do so without showing circumstances beyond the former employee's 
control;
    (c) Fails to file required submissions or to comply with orders of 
the Hearing Official; or
    (d) Files a withdrawal of his or her petition for a hearing with 
the Recorder.


Sec. 966.13  Ex parte communications.

    Ex parte communications between a Hearing Official or his or her 
staff and a party shall not be made. This prohibition does not apply to 
procedural matters. A memorandum of any communication between the 
Hearing Official and a party will be transmitted to both parties.
Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 97-30010 Filed 11-26-97; 8:45 am]
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