Administrative False Claims Act

<RULE> POSTAL SERVICE <CFR>39 CFR Part 962</CFR> <SUBJECT>Administrative False Claims Act</SUBJECT> <HD SOURCE="HED">AGENCY:</HD> Postal Service. <HD SOURCE="HED">ACTION:</HD> Final rule. <SUM> <HD SOURCE="HED">SUMMARY:</HD> This amends the rules of practice prescribed by the Judicial Officer for ease of understanding and to reflect current practice. </SUM> <EFFDATE> <HD SOURCE="HED">DATES:</HD> Effective July 17, 2025. </EFFDATE> <HD SOURCE="HED">ADDRESSES:</HD> Postal Service Judicial Officer Department, 2101 Wilson Boulevard, Suite 600, Arlington, VA 22201-3078. <FURINF> <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD> Staff Counsel Sheena Allen at (240) 636-4158. </FURINF> <SUPLINF> <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD> <HD SOURCE="HD1">A. Background</HD> The Judicial Officer Department reviewed its rules for cases arising under the Program Fraud Civil Remedies Act, which is now codified as the Administrative False Claims Act, and found it necessary to make some revisions for the reader's ease of understanding. These revised rules of procedure have the same general intent and coverage as the existing rules. The revised rules, however, are more comprehensive than the existing rules. <HD SOURCE="HD1">B. Explanation of Changes</HD> <HD SOURCE="HD2">Amendments to 39 CFR Part 962</HD> These revised rules will completely replace the existing rules of practice and will be effective for all petitions docketed by the Judicial Officer Department on and after their effective date. <LSTSUB> <HD SOURCE="HED">List of Subjects in 39 CFR Part 962</HD> Administrative practice and procedure, Claims, Postal Service. </LSTSUB> Accordingly, for the reasons stated, the Postal Service revises 39 CFR part 962 to read as follows: <HD SOURCE="HED">PART 962—ADMINISTRATIVE FALSE CLAIMS ACT</HD> <REGTEXT TITLE="39" PART="962"> <CONTENTS> <SECHD>Sec.</SECHD> <SECTNO>962.1 </SECTNO> <SUBJECT>(Rule 1) Purpose.</SUBJECT> <SECTNO>962.2 </SECTNO> <SUBJECT>(Rule 2) Definitions.</SUBJECT> <SECTNO>962.3 </SECTNO> <SUBJECT>(Rule 3) Petition for hearing.</SUBJECT> <SECTNO>962.4 </SECTNO> <SUBJECT>(Rule 4) Referral of complaint.</SUBJECT> <SECTNO>962.5 </SECTNO> <SUBJECT>(Rule 5) Scope of hearing; evidentiary standard.</SUBJECT> <SECTNO>962.6 </SECTNO> <SUBJECT>(Rule 6) Notice of hearing.</SUBJECT> <SECTNO>962.7 </SECTNO> <SUBJECT>(Rule 7) Hearing location.</SUBJECT> <SECTNO>962.8 </SECTNO> <SUBJECT>(Rule 8) Rights of parties.</SUBJECT> <SECTNO>962.9 </SECTNO> <SUBJECT>(Rule 9) Responsibilities and authority of presiding officer.</SUBJECT> <SECTNO>962.10 </SECTNO> <SUBJECT>(Rule 10) Prehearing conferences.</SUBJECT> <SECTNO>962.11 </SECTNO> <SUBJECT>(Rule 11) Respondent access to information.</SUBJECT> <SECTNO>962.12 </SECTNO> <SUBJECT>(Rule 12) Depositions; interrogatories; admission of facts; production and inspection of documents.</SUBJECT> <SECTNO>962.13 </SECTNO> <SUBJECT>(Rule 13) Subpoenas.</SUBJECT> <SECTNO>962.14 </SECTNO> <SUBJECT>(Rule 14) Enforcement of subpoenas.</SUBJECT> <SECTNO>962.15 </SECTNO> <SUBJECT>(Rule 15) Sanctions.</SUBJECT> <SECTNO>962.16 </SECTNO> <SUBJECT>(Rule 16) Disqualification of reviewing official or presiding official.</SUBJECT> <SECTNO>962.17 </SECTNO> <SUBJECT>(Rule 17) Ex parte communications.</SUBJECT> <SECTNO>962.18 </SECTNO> <SUBJECT>(Rule 18) Posthearing briefs.</SUBJECT> <SECTNO>962.19 </SECTNO> <SUBJECT>(Rule 19) Transcript of proceedings.</SUBJECT> <SECTNO>962.20 </SECTNO> <SUBJECT>(Rule 20) Initial decision.</SUBJECT> <SECTNO>962.21 </SECTNO> <SUBJECT>(Rule 21) Appeal of initial decision to judicial officer.</SUBJECT> <SECTNO>962.22 </SECTNO> <SUBJECT>(Rule 22) Form and filing of documents.</SUBJECT> <SECTNO>962.23 </SECTNO> <SUBJECT>(Rule 23) Service.</SUBJECT> <SECTNO>962.24 </SECTNO> <SUBJECT>(Rule 24) Computation time periods.</SUBJECT> <SECTNO>962.25 </SECTNO> <SUBJECT>(Rule 25) Continuances and extensions.</SUBJECT> <SECTNO>962.26 </SECTNO> <SUBJECT>(Rule 26) Settlement.</SUBJECT> <SECTNO>962.27 </SECTNO> <SUBJECT>(Rule 27) Limitations.</SUBJECT> </CONTENTS> <HD SOURCE="HED">Authority: </HD> 31 U.S.C. 3801-12; 39 U.S.C. 401; 5 U.S.C. 554. <SECTION> <SECTNO>§ 962.1 </SECTNO> <SUBJECT>(Rule 1) Purpose.</SUBJECT> This part establishes the procedures governing the hearing and appeal rights of any person alleged to be liable for civil penalties and assessments under the Administrative False Claims Act of 2021 (codified at 31 U.S.C. 3801-12). </SECTION> <SECTION> <SECTNO>§ 962.2 </SECTNO> <SUBJECT>(Rule 2) Definitions.</SUBJECT> (a) <E T="03">Attorney</E> refers to an individual authorized to practice law in any state, commonwealth, or territory of the United States, or in the District of Columbia. (b) <E T="03">Complaint</E> refers to the administrative complaint served by the Reviewing Official on a Respondent under 39 CFR part 273. (c) <E T="03">Initial decision</E> refers to the written decision the Presiding Officer is required to issue by § 962.20 (Rule 20), and includes a revised initial decision issued following a remand. (d) <E T="03">Investigating Official</E> refers to the Inspector General of the United States Postal Service or any designee within the Office of the Inspector General. (e) <E T="03">Judicial Officer</E> refers to the Judicial Officer or Acting Judicial Officer of the United States Postal Service, or for purposes other than specified in § 962.21 (Rule 21), any designee within the Judicial Officer Department. (f) <E T="03">Party</E> refers to the Postal Service or the Respondent. (g) <E T="03">Person</E> refers to any individual, partnership, corporation, association, or private organization. (h) <E T="03">Postmaster General</E> refers to the Postmaster General of the United States or a designee. (i) <E T="03">Presiding Officer</E> refers to an Administrative Law Judge designated by the Chief Administrative Law Judge to conduct a hearing authorized by 31 U.S.C. 3803. (j) <E T="03">Recorder</E> refers to the Recorder of the United States Postal Service, 2101 Wilson Boulevard, Suite 600, Arlington, VA 22201-3078. (k) <E T="03">Representative</E> refers to an attorney or other advocate. (l) <E T="03">Respondent</E> refers to any person alleged to be liable for a civil penalty or assessment under 31 U.S.C. 3802. (m) <E T="03">Reviewing Official</E> refers to the General Counsel of the Postal Service or any designee within the Law Department who serves in a position for which the rate of basic pay is not less than the minimum rate payable under 5 U.S.C. 5376. </SECTION> <SECTION> <SECTNO>§ 962.3</SECTNO> <SUBJECT> (Rule 3) Petition for hearing.</SUBJECT> Within 30 days of receiving the Postal Service's Complaint, issued under 39 CFR part 273, alleging liability under 31 U.S.C. 3802, the Respondent may request a hearing under the Administrative False Claims Act by filing a written Hearing Petition with the Recorder in accordance with § 962.22(b) (Rule 22). The Respondent's Petition must include the following: (a) The words “Petition for Hearing Under the Administrative False Claims Act,” or other words reasonably identifying it as such. (b) The name of the Respondent as well as work and home addresses, and work and home telephone numbers; or other addresses and telephone numbers where the Respondent may be contacted about the hearing proceedings. (c) A statement of the date the Respondent received the Complaint issued by the Reviewing Official. (d) A statement indicating whether the Respondent requests an oral hearing or a decision on the record. (e) If the Respondent requests an oral hearing, a statement proposing a city for the hearing site, with justification for holding the hearing in that city, as well as recommended dates for the hearing. Alternatively, Respondent may propose a remote hearing by video. After considering the Respondent's request, the Presiding Officer will decide whether to hold a hearing and determine the time and place of the hearing. (f) A statement admitting or denying each of the allegations of liability made in the Complaint and stating any defense the Respondent intends to rely on. </SECTION> <SECTION> <SECTNO>§ 962.4 </SECTNO> <SUBJECT>(Rule 4) Referral of complaint.</SUBJECT> After the Respondent files a Hearing Petition, the Reviewing Official, upon receiving a copy of the Petition, will promptly transmit a copy of the Postal Service's Complaint to the Presiding Officer. </SECTION> <SECTION> <SECTNO>§ 962.5 </SECTNO> <SUBJECT>(Rule 5) Scope of hearing; evidentiary standard.</SUBJECT> (a) A hearing under this part will be conducted by the Presiding Officer to determine: (1) Whether the Respondent is liable under 31 U.S.C. 3802; and (2) The amount of any civil penalty or assessment to be imposed if the Respondent is found liable under 31 U.S.C. 3802. (b) The Postal Service must prove its case against a Respondent by a preponderance of the evidence. (c) The parties may offer at a hearing on the merits relevant evidence that is admissible under the Federal Rules of Evidence, subject, however, to the sound discretion of the Presiding Officer in supervising the extent and manner of presentation of the evidence. In general, admissibility will hinge on relevancy and materiality. Relevant evidence, however, may be excluded if its probative value is outweighed by the danger of unfair prejudice, or by considerations of undue delay, waste of time, or needless presentation of cumulative evidence. </SECTION> <SECTION> <SECTNO>§ 962.6</SECTNO> <SUBJECT> (Rule 6) Notice of hearing.</SUBJECT> (a) Within a reasonable time after receiving the Respondent's Hearing Petition and the Complaint, the Presiding Officer will serve on the Respondent and the Reviewing Official ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ Preview showing 10k of 36k characters. 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