Post Office Organization and Administration: Establishment, Classification, and Discontinuance, 17794-17801 [2011-7555]

Agencies

• Postal Service

[Federal Register Volume 76, Number 62 (Thursday, March 31, 2011)]
[Proposed Rules]
[Pages 17794-17801]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-7555]


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Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

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Federal Register / Vol. 76, No. 62 / Thursday, March 31, 2011 / 
Proposed Rules

[[Page 17794]]



POSTAL SERVICE

39 CFR Part 241


Post Office Organization and Administration: Establishment, 
Classification, and Discontinuance

AGENCY: Postal Service.

ACTION: Proposed rule.

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SUMMARY: This proposed rule would amend postal regulations to improve 
the administration of the Post Office closing and consolidation 
process. In addition, certain procedures employed for the 
discontinuance of Post Offices would be applied to the discontinuance 
of other types of retail facilities operated by Postal Service 
employees.

DATES: Comments must be received on or before May 2, 2011.

ADDRESSES: Written comments should be mailed or delivered to the 
Manager, Customer Service Standardization, ATTN: Retail Discontinuance, 
475 L'Enfant Plaza SW., Room 6816, Washington, DC 20260-6816. Copies of 
all written comments will be available for inspection and photocopying 
between 9 a.m. and 4 p.m., Monday through Friday, in the Postal Service 
Library, at the above address. Arrangements should be made in advance 
for inspection by contacting (202) 268-2900.

FOR FURTHER INFORMATION CONTACT: Annette Raney, (202) 268-4307.

SUPPLEMENTARY INFORMATION: The Postal Reorganization Act of 1970 
directs the Postal Service to establish and maintain postal facilities 
``of such character and in such locations that postal patrons 
throughout the nation will, consistent with reasonable economies of 
postal operations, have ready access to essential postal services.'' 39 
U.S.C. 403(b)(3). The 1976 amendments to the Postal Reorganization Act 
(PRA), codified in former section 404(b) of title 39 of the U.S. Code, 
require that the Postal Service provide adequate notice to customers of 
its intention to close or consolidate a Post OfficeTM. (The 
codified statute was re-designated as 39 U.S.C. 404(d) under the Postal 
Accountability and Enhancement Act of 2006 (PAEA), Public Law 109-435, 
section 1010(e), 120 Stat. 3261.) Notice must be given at least 60 days 
in advance to enable customers to present their views. Section 404(d) 
further requires that the Postal Service consider specific criteria in 
making determinations to close or consolidate a post office, including 
the effects on community and employees, the ability to provide a 
maximum degree of effective and regular postal services to the affected 
community, and economic savings. A determination to close or 
consolidate any Post Office may be appealed to the Postal Regulatory 
Commission (Commission) within 30 days after such determination is made 
available to customers. The Commission has up to 120 days to issue a 
decision if an appeal is filed. Even if no appeal is filed, the Postal 
Service is prevented from taking action to close or consolidate a post 
office until 60 days have elapsed since its final determination has 
been made available to customers.
    As part of ongoing efforts to rationalize its retail network, the 
Postal Service has undertaken a review of its regulations in 39 CFR 
part 241 to determine how the administration of the closing process can 
be improved. The Postal Service has identified various amendments to 
section 241.3 that would further the Plan's objective of improving the 
closing process. In addition, the Postal Service has determined, as a 
matter of policy, to apply the same discontinuance procedures to all 
retail facilities operated by Postal Service employees. These proposed 
measures are described below.

I. Application of Post Office Discontinuance Procedures to Other Retail 
Facilities

    Section 404(d) of title 39, U.S. Code, applies only to the 
``closing or consolidation'' of ``post offices.'' A Post Office is an 
organizational unit headed by a postmaster that provides retail and 
delivery services, and mail processing, to residents and businesses in 
the ZIP Code areas that comprise that office's exclusive delivery 
service area. In using the term ``Post Office'' in its technical sense 
for well over a century, Congress has recognized the need for postal 
officials to establish facilities, including Post Offices, stations, 
and branches, and also to discontinue them. The authority of Congress 
``to establish post offices,'' U.S. Const. art. I, section 8, cl. 7, 
has been consistently delegated to the Postmaster General since the 
establishment of the Nation's postal system. See the discussion in Ware 
v. United States, 71 U.S. 617, 630-633 (1866).
    Numerous other postal statutes, not directly concerned with the 
establishment of postal facilities, have also illustrated the 
distinction between a station or branch and a Post Office. For example, 
former 39 U.S.C. 3524-3530, which set compensation levels for 
postmasters and other management employees, clearly show the 
administrative distinction between a Post Office, supervised by a 
postmaster, and its subordinate stations and branches, generally under 
the direction of an officer in charge. Similarly, in extending the 
protection of criminal statutes to postal facilities and operations, 
Congress was careful to apply those statutes not only to Post Offices, 
but to their subordinate service units. See, e.g., 18 U.S.C. 1703, 
1708, 1709, 1712, 1721.
    Furthermore, Congress was well aware of the longstanding 
distinction between Post Offices and other types of postal facilities 
when it enacted 39 U.S.C. 404(d). In proposing the legislation which 
provided the foundation for current section 404(d), Senator Jennings 
Randolph expressed his opposition to the ``indiscriminate closing of 
our rural and small town post offices'' as well as to the decision ``to 
create branches out of many post offices close to large cities.'' To 
curtail such actions, he offered legislation requiring the Postal 
Service to ``substantiate any proposal to change or eliminate 
independent post offices.'' See 122 Cong. Rec. 6314 (March 11, 1976). 
In its analysis of the subsequently enacted ``Randolph Amendment,'' the 
conference report on H.R. 8603 explicitly limited its application to 
Post Offices: ``[T]he managers intend that this provision apply to post 
offices only and not to other postal facilities.'' H.R. Rep. No. 94-
1444, 94th Cong., 2d Sess. 17 (1976). Thus, as a legal matter, former 
39 U.S.C. 404(b) and its modern analogue, 39 U.S.C. 404(d), apply only 
to Post Offices. See Wilson v. United States

[[Page 17795]]

Postal Service, 441 F. Supp. 803, 806 (C.D. Cal. 1977); Knapp v. United 
States Postal Service, 449 F. Supp. 158, 161-62 (E.D. Mich. 1978).
    As a matter of policy, the Postal Service recognizes that the 
functional differences among respective types of retail facilities 
staffed by postal employees may not be readily apparent to its retail 
customers. The Postal Service is mindful of comments that the 
Commission has provided to this effect in multiple contexts. 
Accordingly, many customers expect the same discontinuance procedures 
to apply for their local station as to the nearest independent Post 
Office. In the interest of transparency and responsiveness to customer 
needs, the Postal Service has concluded that it makes sense, as a 
policy matter, to propose the application of a single set of 
discontinuance procedures to postal employee-operated retail 
facilities. Although customers of contractor-operated retail facilities 
may also experience and expect comparable levels of service to those of 
postal employee-operated retail facilities, exigencies of contracting 
relationships make it generally impractical to harmonize their 
discontinuance procedures with the deliberative timeframe and 
procedures required for discontinuance of Postal Service-operated 
facilities.
    The Postal Service recognizes that its proposed rule represents a 
policy change that significantly enhances transparency for its 
customers. The proposed rule does not, however, change the text or 
legislative history of 39 U.S.C. 404(d), which indicate Congress's 
intent that the statute should apply only to independent Post Offices 
and not to subordinate retail facilities. By proposing the application 
of uniform procedures to all Postal Service-operated retail facilities, 
the Postal Service would exceed the procedural requirements of its 
operating statute in the interests of public transparency and 
participation.
    One consequence of this procedural harmonization is that the 
distinguishing factor would become the identity of the facility as 
operated by the Postal Service or a contractor, and not the 
administrative classification of affected facilities as Post Offices, 
stations, or branches. The conversion of an independent Post Office to 
a subordinate Postal Service-operated retail facility would no longer 
constitute a ``consolidation'' that triggers discontinuance 
proceedings, as it does today. The governing statute does not define 
``close'' and ``consolidate,'' nor does it offer any guidance as to the 
distinction between the two terms. Postal Service facilities generally 
offer the same retail services to customers regardless of the 
facilities' administrative designation. Moreover, by applying the same 
discontinuance procedures to all Postal Service-operated retail 
facilities, the proposed rule would erase the effect of administrative 
designations on applicable discontinuance procedures. Therefore, the 
Postal Service does not consider it reasonable to continue applying 
discontinuance procedures to facility re-designations that do not 
entail any practical effect for customers. These changes would also 
harmonize with changes regarding administrative oversight of particular 
offices.
    The proposed rule would not be retroactive. Therefore, until such 
time as any proposed changes are issued in a final rule and take 
effect, the proposed change in policy is not effective and would not 
affect the procedures currently in use for discontinuance of Postal 
Service retail facilities.

II. Procedural Changes

    After an extensive review, the Postal Service is in the process of 
revising and updating its discontinuance procedures. This process 
significantly improves the internal timeframes, level of coordination, 
and approvals; it will maintain compliance with the statute and 
enhances public notice and involvement. The internal procedures for 
discontinuance actions are detailed in Handbook PO-101, Post Office 
Discontinuance Guide, which is undergoing revision. Certain changes are 
also required to 39 CFR 241.3 to reflect the new processes. For 
example, retail facility discontinuances may be prompted not only by 
local evaluations, but also by nationwide directives from the 
responsible Headquarters office.
    In addition, current regulations require at least a 90-day waiting 
period after posting of a final determination (if not appealed to the 
Commission) or after a Commission order upholding the final 
determination. The statute, however, only requires a 60-day period 
after posting of the final determination. Accordingly, the proposed 
rule would make the mandatory waiting period consistent with statutory 
requirements, although the Postal Service could, at its discretion, 
defer implementation.
    Finally, the proposed rule would give explicit guidance to District 
Managers as to the circumstances that may justify commencement of a 
discontinuance study.

III. Analysis of Proposed Changes

    Section 241.1(a) and (b) would be updated to state the 
establishment requirements and classification system for Post Offices 
in accordance with Postal Operations Manual (POM) 123.11. The change in 
the classification system does not entail any change in how respective 
retail facilities are rated by revenue units within accounting groups. 
Subsection 241.1(a) would also clarify that Post Offices may be managed 
by postmasters, as is commonly the case, or by other designated 
personnel. The designation of a retail facility as a Post Office, 
classified station, or classified branch would not depend on whether 
any responsible personnel is a postmaster.
    In keeping with the policy change concerning the scope of 
discontinuance procedures, the proposed rule would replace all 
references to ``post office'' in 39 CFR 241.3 with ``USPS-operated 
retail facility'' (or a similar term). A new subparagraph (a)(1)(ii) 
would be added to define ``USPS-operated retail facility'' as any Post 
Office, station, or branch that is operated by Postal Service 
employees, rather than by contractor personnel. Subparagraph (a)(1)(ii) 
would also define ``contractor-operated retail facility'' as any 
community post office, station, branch, or other facility offering 
retail postal services that is operated by a contractor, rather than by 
Postal Service employees.
    Paragraph (a)(1) would be renumbered as subparagraph (a)(1)(i), and 
the scope of 39 CFR 241.3 would be defined in that subparagraph as 
applying to the closure or combination of any Postal Service-operated 
retail facility or facilities, or the replacement of such a facility 
with a contractor-operated retail facility. Corresponding changes would 
be made to paragraph (c)(2) with respect to the scope of a 
``consolidation'' for purposes of 39 CFR 241.3. Subparagraph 
(a)(1)(iii) would be added to clarify that the reclassification of a 
Post Office as a Postal Service-operated station or branch, or the 
replacement of the former with the latter, is not a closing or 
consolidation subject to 39 CFR 241.3. Subparagraph (a)(1)(iii) would 
also clarify that discontinuance actions subject to 39 CFR 241.3 do not 
include staffing changes in the management of a post office such that 
it is staffed by a postmaster part-time or not at all and by another 
type of USPS employee during the remaining office hours.
    Because the discontinuance procedures in 39 CFR 241.3 would apply 
beyond the extent legally required by 39 U.S.C. 404(d), paragraph 
(a)(2) would be renamed simply

[[Page 17796]]

``Requirements,'' and the reference to 39 U.S.C. 404(d) as the 
statutory source of such requirements would be deleted.
    Paragraph (a)(2), subparagraph (a)(3)(ii), and paragraph (c)(1) 
would be amended to allow for the possibility that discontinuance 
actions may result from initiatives or instructions by the responsible 
Vice President or from District Managers. Although many discontinuance 
actions will continue to be prompted by local personnel's assessment of 
prevailing conditions, this change would reflect the fact that 
discontinuance actions could also flow from nationwide requirements for 
retail facilities established by relevant Headquarters offices.
    Subparagraph (a)(2)(iv) currently refers to the statutory right of 
persons served by an affected Post Office to appeal a discontinuance 
determination to the Commission. Although the Postal Service is 
proposing to extend the applicability of its post office discontinuance 
procedures to other types of Postal Service-operated retail facilities, 
the Postal Service does not have the power to alter the scope of the 
Commission's statutory jurisdiction. Therefore, the Postal Service 
proposes to add a sentence to subparagraph (a)(2)(iv) to clarify that, 
in cases where customers of an affected Postal Service-operated retail 
facility other than a post office file an appeal with the Commission, 
the Postal Service's Office of General Counsel will determine whether 
to raise jurisdictional defenses on a case-by-case basis, without 
waiving any objections as to the Commission's general lack of 
jurisdiction over such attempted appeals. In addition, subparagraph 
(a)(2)(iv) would be amended to incorporate the ``mailbox rule'' for 
receipt of appeals by the Commission, in accordance with 39 U.S.C. 
404(d)(6).
    A new paragraph (a)(4) would be added to clarify the circumstances 
that may prompt a District Manager, Vice President, or a designee of 
either to initiate a discontinuance study. Permissible factors include 
postmaster vacancies, emergency suspensions, workload changes, drops in 
customer demand, availability of reasonable alternate access to postal 
services, and other special circumstances. Absent one or more such 
permissible circumstances, a deciding official of either may not 
initiate a discontinuance study because restroom facilities or building 
modifications for the handicapped are required, for reasons of 
compliance with the Occupational Health and Safety Act of 1970 (29 
U.S.C. 651 et seq.), or because the retail facility is a small Post 
Office operating at a deficit.
    The scope of paragraph (b)(4) would be extended to the replacement 
of any Postal Service-operated retail facility with another type of 
Postal Service-operated or contractor-operated retail facility.
    Paragraph (b)(5) would be deleted, because the Publication that 
lists discontinued Post Offices referenced in that paragraph is 
obsolete.
    Subparagraph (c)(4)(vii) would be reorganized to more accurately 
indicate the contents of the proposal notice. Clause (c)(4)(vii)(B) and 
subparagraph (f)(2)(ii) would be amended to require notice of appeal 
rights only for proposed discontinuances of post offices, in accordance 
with the scope of the Commission's statutory jurisdiction, as described 
in the analysis of subparagraph (a)(2)(iv) above.
    Paragraph (d)(2) and the sample form included therein would be 
deleted. This form will be available to customers in accordance with 
these regulations. Current paragraphs (d)(3) and (4) would be 
renumbered (d)(2) and (3), respectively.
    Paragraph (d)(3) (re-designated as (d)(2)) would be amended to 
clarify that a community meeting should be held unless the responsible 
Vice President or Area Manager of Delivery Programs Support instructs 
otherwise.
    Subparagraph (d)(4)(v) (re-designated as (d)(3)(v)) would advise 
that certain personally identifiable information may be redacted from 
publicly accessible copies of the discontinuance record, in the 
interest of protecting personal privacy.
    Subsection (e)(2)(ii)(A) and (B) would be amended to reflect the 
fact that discontinuance records are typically transmitted 
electronically, as well as forwarded in paper form. Therefore, it is 
more appropriate for the District Manager to certify accuracy of the 
record being transmitted, rather than to attach a separate 
certification as to the accuracy of copies.
    Subparagraph (g)(1)(i) would be amended to remove the District 
Manager's obligation to notify the responsible Vice President of the 
date of posting.
    The timeframe for implementation in the event that a final 
determination is not appealed, set forth in paragraph (g)(2), would be 
amended such that implementation can occur anytime after the 
statutorily required 60-day waiting period that commences the first day 
after posting of the final determination. Similarly, when the 
Commission upholds the Postal Service's final determination under 
subparagraph (g)(4)(i), the proposed rule would allow implementation 
anytime after issuance of the Commission's Order, so long as the 60-day 
waiting period after posting of the final determination is also 
satisfied. The current rule for both instances, that a discontinuance 
be effective on the first Saturday 90 days after the Commission's 
order, is not required by statute. Although the Postal Service may 
continue to apply a longer time period in some cases, the proposed rule 
would allow the Postal Service to do otherwise within the statutory 
framework.
    Clause (g)(3)(ii)(B) would be amended to clarify that the 
Commission's final order and opinion need only be displayed at the 
Postal Service-operated retail facility subject to discontinuance for 
30 days or until the effective date of the discontinuance, whichever is 
earlier.
    The proposed rule would also make several minor changes to update 
terms. References to the former ``Postal Rate Commission'' would be 
replaced with ``Postal Regulatory Commission,'' in accordance with the 
renaming of that entity under Section 604 of the PAEA, Public Law 109-
435, 120 Stat. 3241-3242. References to Administrative Support Manual 
(ASM) 352.6 would be updated to refer to chapter 4 of Handbook AS-353, 
Guide to Privacy, the Freedom of Information Act, and Records 
Management, to which the ASM's records request regulations have been 
transferred. References to former 39 U.S.C. 404(b) would be updated to 
39 U.S.C. 404(d). Subparagraph (g)(3)(ii) would assign responsibility 
to the Postal Service's Office of the General Counsel, rather than 
specifically to the former section for Legal Policy and Ratemaking Law. 
Finally, the position titles of District Manager, Customer Service and 
Sales, and Vice President, Delivery and Retail, throughout the section 
would be updated to District Manager and responsible Vice President, 
respectively.
    Although exempt from the notice and comment requirements of the 
Administrative Procedure Act (5 U.S.C. 553(b), (c)) regarding proposed 
rulemaking by 39 U.S.C. 410(a), the Postal Service invites comments on 
the following proposed amendments to the Code of Federal Regulations.
    An appropriate amendment to 39 CFR part 241 to reflect these 
changes will be published if the proposal is adopted.

List of Subjects in 39 CFR Part 241

    Organization and functions (government agencies), Postal Service.

    For the reasons set out in this document, the Postal Service 
proposes to amend 39 CFR part 241 as follows:

[[Page 17797]]

PART 241--RETAIL ORGANIZATION AND ADMINISTRATION: ESTABLISHMENT, 
CLASSIFICATION, AND DISCONTINUANCE

    1. The authority citation for 39 CFR part 241 is revised to read as 
follows:

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

    2. Revise Sec.  241.1 to read as follows:


Sec.  241.1  Post offices.

    (a) Establishment. 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 managed by a postmaster or 
by another type of postal employee.
    (b) Classification. As of October 1 of each year, Post Offices are 
categorized through a cost ascertainment grouping (CAG) process based 
on allowable postal revenue units for the second proceeding fiscal year 
as follows:
    (1) CAG A-G. Post offices having 950 or more revenue units.
    (2) CAG H-J. Post offices having 190 but less than 950 revenue 
units.
    (3) CAG K. Post offices having 36 but less 190 revenue units.
    (4) CAG L. Post offices having less than 36 revenue units.
    3. Revise Sec.  241.3 to read as follows:


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) As used in this section, ``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. 
``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) 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 
management 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.
    (2) Requirements. A District Manager or the responsible Vice 
President may initiate a 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) no later than 120 days after receiving the 
appeal.
    (vii) The following table summarizes the notice and appeal periods 
defined by statute.
BILLING CODE 7710-12-P

[[Page 17798]]

[GRAPHIC] [TIFF OMITTED] TP31MR11.065

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 to discontinuance of a particular USPS-
operated retail facility are fully articulated and disclosed at a stage 
that enables customer participation to make a helpful contribution 
toward the final decision.
    (4) Circumstances prompting decision to study --(i) Permissible 
circumstances. A District Manager, the responsible Vice President, or a 
designee of either may initiate a study of a USPS-operated retail 
facility's potential discontinuance 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 other 
natural disaster, severe health or safety hazards, challenge to the 
sanctity of the mail, or similar reasons;
    (C) Earned workload below the minimum established level for the 
lowest non-bargaining (EAS) employee grade;
    (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

[[Page 17799]]

    (F) The incorporation of two communities into one or other special 
circumstances.
    (ii) Impermissible circumstances. In the absence of any 
circumstances identified in paragraph (a)(4)(i) of this section, the 
following do not constitute circumstances that justify initiation of a 
discontinuance 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) The operation of a small Post Office at a deficit.
    (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, Area 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 replaced by a contractor-operated facility, 
the replacement unit is usually given the same name of the facility 
that is replaced.
    (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, or if the 
responsible Vice President believes that the discontinuance of any 
USPS-operated retail facility 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 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 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 in the USPS-operated retail 
facility under study and in any other affected

[[Page 17800]]

USPS-operated retail facility. 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.
    (2) 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 should be held unless otherwise instructed 
by the responsible Vice President or the Area Manager of Delivery 
Programs Support.
    (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.
    (3) 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 
facility proposed for discontinuance or at the USPS-operated retail 
facility 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. 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 facility considered for discontinuance, 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 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 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 record developed by the 
District Manager. The responsible 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 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: ``This Final Determination to (close) 
(consolidate) the (Facility Name) may be appealed by any person served 
by that office to the Postal Regulatory 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 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 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 a notice in each affected USPS-operated 
retail facility that the proposed closing or consolidation has been 
determined to be unwarranted.
    (4) Return for further action. The responsible 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 Vice President must be 
placed on file in the Postal Service Headquarters library.

[[Page 17801]]

    (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 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 the responsible 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 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 facility to be discontinued. 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 the USPS-operated 
retail facilities likely to be serving the affected customers.
    (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 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 Vice President may provide.

Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 2011-7555 Filed 3-28-11; 4:15 pm]
BILLING CODE 7710-12-P