Rule2025-13415

Administrative False Claims Act

Primary source

Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.

Published
July 17, 2025
Effective
July 17, 2025

Issuing agencies

Postal Service

Abstract

This amends the rules of practice prescribed by the Judicial Officer for ease of understanding and to reflect current practice.

Full Text

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<title>Federal Register, Volume 90 Issue 135 (Thursday, July 17, 2025)</title>
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[Federal Register Volume 90, Number 135 (Thursday, July 17, 2025)]
[Rules and Regulations]
[Pages 33272-33277]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-13415]


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POSTAL SERVICE

39 CFR Part 962


Administrative False Claims Act

AGENCY: Postal Service.

ACTION: Final rule.

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SUMMARY: This amends the rules of practice prescribed by the Judicial 
Officer for ease of understanding and to reflect current practice.

DATES: Effective July 17, 2025.

ADDRESSES: Postal Service Judicial Officer Department, 2101 Wilson 
Boulevard, Suite 600, Arlington, VA 22201-3078.

FOR FURTHER INFORMATION CONTACT: Staff Counsel Sheena Allen at (240) 
636-4158.

SUPPLEMENTARY INFORMATION: 

A. Background

    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.

B. Explanation of Changes

Amendments to 39 CFR Part 962

    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.

List of Subjects in 39 CFR Part 962

    Administrative practice and procedure, Claims, Postal Service.


0
Accordingly, for the reasons stated, the Postal Service revises 39 CFR 
part 962 to read as follows:

PART 962--ADMINISTRATIVE FALSE CLAIMS ACT

Sec.
962.1 (Rule 1) Purpose.
962.2 (Rule 2) Definitions.
962.3 (Rule 3) Petition for hearing.
962.4 (Rule 4) Referral of complaint.
962.5 (Rule 5) Scope of hearing; evidentiary standard.
962.6 (Rule 6) Notice of hearing.
962.7 (Rule 7) Hearing location.
962.8 (Rule 8) Rights of parties.
962.9 (Rule 9) Responsibilities and authority of presiding officer.
962.10 (Rule 10) Prehearing conferences.
962.11 (Rule 11) Respondent access to information.
962.12 (Rule 12) Depositions; interrogatories; admission of facts; 
production and inspection of documents.
962.13 (Rule 13) Subpoenas.
962.14 (Rule 14) Enforcement of subpoenas.
962.15 (Rule 15) Sanctions.
962.16 (Rule 16) Disqualification of reviewing official or presiding 
official.
962.17 (Rule 17) Ex parte communications.
962.18 (Rule 18) Posthearing briefs.
962.19 (Rule 19) Transcript of proceedings.
962.20 (Rule 20) Initial decision.
962.21 (Rule 21) Appeal of initial decision to judicial officer.
962.22 (Rule 22) Form and filing of documents.
962.23 (Rule 23) Service.
962.24 (Rule 24) Computation time periods.
962.25 (Rule 25) Continuances and extensions.
962.26 (Rule 26) Settlement.
962.27 (Rule 27) Limitations.

    Authority: 31 U.S.C. 3801-12; 39 U.S.C. 401; 5 U.S.C. 554.


Sec.  962.1  (Rule 1) Purpose.

    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).


Sec.  962.2  (Rule 2) Definitions.

    (a) Attorney 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) Complaint refers to the administrative complaint served by the 
Reviewing Official on a Respondent under 39 CFR part 273.
    (c) Initial decision refers to the written decision the Presiding 
Officer is required to issue by Sec.  962.20 (Rule 20), and includes a 
revised initial decision issued following a remand.
    (d) Investigating Official refers to the Inspector General of the 
United States Postal Service or any designee within the Office of the 
Inspector General.

[[Page 33273]]

    (e) Judicial Officer refers to the Judicial Officer or Acting 
Judicial Officer of the United States Postal Service, or for purposes 
other than specified in Sec.  962.21 (Rule 21), any designee within the 
Judicial Officer Department.
    (f) Party refers to the Postal Service or the Respondent.
    (g) Person refers to any individual, partnership, corporation, 
association, or private organization.
    (h) Postmaster General refers to the Postmaster General of the 
United States or a designee.
    (i) Presiding Officer 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) Recorder refers to the Recorder of the United States Postal 
Service, 2101 Wilson Boulevard, Suite 600, Arlington, VA 22201-3078.
    (k) Representative refers to an attorney or other advocate.
    (l) Respondent refers to any person alleged to be liable for a 
civil penalty or assessment under 31 U.S.C. 3802.
    (m) Reviewing Official 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.


Sec.  962.3   (Rule 3) Petition for hearing.

    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 Sec.  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.


Sec.  962.4  (Rule 4) Referral of complaint.

    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.


Sec.  962.5  (Rule 5) Scope of hearing; evidentiary standard.

    (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.


Sec.  962.6   (Rule 6) Notice of hearing.

    (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 a Notice of Docketing 
containing the information set forth in paragraph (b) of this section 
in accordance with Sec.  962.23 (Rule 23).
    (b) The Notice of Docketing required by paragraph (a) of this 
section must include:
    (1) The tentative hearing site, date, and time;
    (2) The legal authority and jurisdiction under which the hearing 
will be held;
    (3) The nature of the hearing;
    (4) The matters of fact and law to be decided;
    (5) A description of the procedures governing the conduct of the 
hearing; and
    (6) Such other information as the Presiding Officer deems 
appropriate.


Sec.  962.7   (Rule 7) Hearing location.

    An oral hearing under this part will be held:
    (a) In the judicial district of the United States in which the 
Respondent resides or transacts business;
    (b) In the judicial district of the United States in which the 
claim or statement on which the allegation of liability under 31 U.S.C. 
3802 was made, presented, or submitted; or
    (c) In such other place as may be agreed on by the Respondent and 
the Presiding Officer, including by telephone or video.
    (d) The Presiding Officer has exclusive authority in fixing the 
time and place for hearings but will give due regard for the 
convenience and necessity of the parties or their representatives.


Sec.  962.8  (Rule 8) Rights of parties.

    Any party to a hearing under this part will have the right:
    (a) To be accompanied, represented, and advised, by a 
representative;
    (b) To participate in any prehearing or posthearing conference held 
by the Presiding Officer;
    (c) To stipulate to facts or law;
    (d) To make opening and closing statements;
    (e) To present oral and documentary evidence relevant to the 
issues;
    (f) To submit rebuttal evidence;
    (g) To conduct cross-examination as may be required for a full and 
true disclosure of the facts; and
    (h) To submit written briefs, proposed findings of fact, and 
proposed conclusions of law.


Sec.  962.9  (Rule 9) Responsibilities and authority of presiding 
officer.

    (a) The Presiding Officer will conduct a fair and impartial 
hearing, avoid delay, maintain order, and ensure that a record of the 
proceeding is made.
    (b) The Presiding Officer's authority includes, but is not limited 
to, the following:
    (1) Establishing, upon adequate notice to all parties, the date and 
time of the hearing, as well as, in accordance with Sec.  962.7 (Rule 
7), selecting the hearing site;
    (2) Holding conferences, by telephone, video, or in person, to 
identify or simplify the issues, or to

[[Page 33274]]

consider other matters that may aid in the expeditious disposition of 
the proceeding;
    (3) Continuing or recessing the hearing in whole or in part for a 
reasonable period of time;
    (4) Administering oaths and affirmations to witnesses;
    (5) Issuing subpoenas, requiring the attendance and testimony of 
witnesses and the production of all information, documents, reports, 
answers, records, accounts, papers, and other data and documentary 
evidence that the Presiding Officer considers relevant and material to 
the hearing;
    (6) Ruling on all offers, motions, requests by the parties, and 
other procedural matters;
    (7) Issuing any notices, orders, or memoranda to the parties 
concerning the proceedings;
    (8) Regulating the scope and timing of discovery;
    (9) Regulating the course of the hearing and the conduct of the 
parties and their representatives;
    (10) Examining witnesses;
    (11) Receiving, ruling on, excluding, or limiting evidence to 
ensure that relevant, reliable, and probative evidence is elicited on 
the issues in dispute, but irrelevant, immaterial, or repetitious 
evidence is excluded;
    (12) Deciding cases, upon motion of a party, in whole or in part by 
summary judgment where there is no disputed issue of material fact;
    (13) Establishing the record in the case; and
    (14) Issuing a written initial decision containing findings of 
fact, conclusions of law, and determinations, with respect to liability 
under 31 U.S.C. 3802, whether a penalty or assessment should be 
imposed, and if so, the amount of the penalty or assessment.


Sec.  962.10  (Rule 10) Prehearing conferences.

    (a) At a reasonable time before the hearing, and with adequate 
notice to all parties, the Presiding Officer may conduct one or more 
prehearing conferences to discuss the following:
    (1) Simplifying the issues;
    (2) As necessary or desirable, amending the pleadings, including 
the need for a more definite statement;
    (3) Stipulating or admitting to facts or the contents and 
authenticity of documents;
    (4) Limiting the number of witnesses;
    (5) Exchanging witness lists, copies of prior witness statements, 
and copies of hearing exhibits;
    (6) Scheduling dates for the exchange of witness lists and proposed 
exhibits;
    (7) Conducting discovery;
    (8) Changing the hearing schedule; and
    (9) Any other matters related to the proceeding.
    (b) Within a reasonable time after the prehearing conference, the 
Presiding Officer will issue an order detailing all matters agreed to 
by the parties, or ordered by the Presiding Officer, at such 
conference.


Sec.  962.11   (Rule 11) Respondent access to information.

    (a) Except as provided in paragraph (b) of this section, the 
Respondent, at any time after receiving the Notice of Docketing, may 
review, and upon payment of a duplication fee established under 39 CFR 
part 265, obtain a copy of all relevant and material documents, 
transcripts, records, and other materials that relate to the 
allegations of liability, and on which the findings and conclusions of 
the Investigating Official under 39 CFR part 273 are based.
    (b) At any time after receiving the Notice of Docketing, the 
Respondent will be entitled to obtain all exculpatory information in 
the possession of the Investigating Official or the Reviewing Official 
relating to the allegations of liability under 31 U.S.C. 3802.
    (c) The Respondent is not entitled to review or obtain a copy of 
any document, transcript, record, or other material privileged under 
Federal law. This paragraph (c) does not apply to any document, 
transcript, record, or other material in which exculpatory information 
is contained.
    (d) Requests to review or copy material under this section must be 
directed to the Reviewing Official, who must respond within a 
reasonable time.


Sec.  962.12  (Rule 12) Depositions; interrogatories; admission of 
facts; production and inspection of documents.

    (a) General Policy and protective orders. The parties are 
encouraged to engage in voluntary discovery procedures. In connection 
with any discovery procedure permitted under this part, the Presiding 
Officer may issue any order required to protect a party or person from 
annoyance, embarrassment, oppression, or undue burden or expense. Such 
orders may include limits on the scope, method, time, and place for 
discovery and provide for protecting the secrecy of confidential 
information or documents. Each party will bear its own discovery 
expenses.
    (b) Depositions. (1) After the Notice of Docketing has been issued, 
the parties may agree to, or the Presiding Officer may, upon 
application of either party and for good cause shown, order the taking 
of testimony of any person by deposition upon oral examination or 
written interrogatories before any officer authorized to administer 
oaths at the place of examination, for use as evidence or for discovery 
purposes. The application for order must specify whether the purpose of 
the deposition is for discovery or for use as evidence.
    (2) The time, place, and manner of taking depositions should be 
mutually agreed to by the parties, or failing agreement, governed by 
order of the Presiding Officer.
    (3) No testimony taken by depositions will be considered as part of 
the evidence in the hearing until it is offered and received in 
evidence at a hearing. Depositions will not ordinarily be received in 
evidence if the deponent is present and can testify personally at the 
hearing. A deposition may, however, be used to contradict or impeach 
the testimony of the witness given at the hearing. In cases decided on 
the written record, the Presiding Officer may receive depositions as 
evidence to supplement the record.
    (c) Interrogatories to parties. After the issuance of a Notice of 
Docketing, a party may serve on the other party written interrogatories 
to be answered separately in writing, signed under oath, and returned 
within 30 days. Upon timely objection by a party, the Presiding Officer 
will determine the extent to which the interrogatories will be 
permitted.
    (d) Admission of facts. After the issuance of a Notice of 
Docketing, a party may serve on the other party a request for the 
admission of specified facts. Within 30 days after service, the party 
served must answer each requested fact or object to it. The factual 
propositions set out in the request will be deemed admitted if a party 
fails to respond to the request for admission.
    (e) Production and inspection of documents, electronically stored 
information, and tangible things. Upon motion of any party showing good 
cause, the Presiding Officer may order the other party to produce and 
permit the inspection, copying or photographing of any documents, 
electronically stored information, or tangible things that are not 
privileged. The moving party must specifically identify the requested 
information or items and explain their relevance and materiality to the 
appeal and explain how they are reasonably calculated to lead to the 
discovery of admissible evidence. If the parties cannot agree, the 
Presiding Officer will specify the terms and conditions for the 
inspection and copying of documents.
    (f) Limitations. Under no circumstances may a discovery procedure 
be used to obtain:

[[Page 33275]]

    (1) Documents, transcripts, records, or other material that a 
person is not entitled to review under Sec.  962.11 (Rule 11);
    (2) The notice sent to the Attorney General from the Reviewing 
Official under 39 CFR part 273; or
    (3) Other documents privileged under Federal law.


Sec.  962.13  (Rule 13) Subpoenas.

    (a) General. A subpoena may be issued either on the written request 
of either party or on the Presiding Officer's own initiative. A 
subpoena may require:
    (1) The deposition of a witness in the city or county where the 
witness resides, is employed, transacts business in person, or at 
another location convenient for the witness that is specifically 
determined by the Presiding Officer;
    (2) The testimony of a witness at a hearing; or,
    (3) The production of documents, electronically stored information, 
and tangible things, and as appropriate, the appearance of a witness or 
custodian of such items designated in the subpoena at a deposition or 
hearing.
    (b) Voluntary cooperation. Each party is expected to:
    (1) Cooperate and make available witnesses and evidence under its 
control as requested by the other party, without issuance of a 
subpoena; and
    (2) Secure voluntary attendance of desired third-party witnesses, 
documents, electronically stored information, and tangible things 
whenever possible.
    (c) Requests for subpoenas. (1) A request for a subpoena must 
normally be filed at least:
    (i) 15 days before a scheduled deposition of a witness or 
production by a witness or custodian of documents, electronically 
stored information, and tangible things; and
    (ii) 30 days before a scheduled hearing.
    (2) A request for a subpoena must state the reasonable scope and 
general relevance to the case of the testimony and of any documents, 
electronically stored information, and tangible things sought.
    (3) The Presiding Officer may honor requests for subpoenas not made 
within the time limitations specified in this paragraph (c) for good 
cause shown.
    (d) Requests to quash or modify. Upon written request by the person 
subpoenaed or by a party, made within 10 days after service but, in any 
event not later than the time specified in the subpoena for compliance, 
the Presiding Officer may:
    (1) Quash or modify the subpoena if it is unreasonable or 
oppressive. The Presiding Officer may also quash or modify for other 
good cause shown.
    (2) Require the person in whose behalf the subpoena was issued to 
advance the reasonable cost of complying with the subpoena. Where 
circumstances require, the Presiding Officer may act on such a request 
at any time after a copy has been served on the opposing party.
    (e) Form and issuance. (1) Every subpoena for the appearance of a 
witness must:
    (i) State the title of the proceeding;
    (ii) Cite 31 U.S.C. 3804(b) as the authority under which it is 
issued;
    (iii) List the time and place of the deposition or hearing; and
    (iv) Command each person to whom it is directed to attend and give 
testimony, and if appropriate, to produce specified documents, 
electronically stored information, and tangible things at a time and 
place specified.
    (2) The Presiding Officer issuing the subpoena may enter the name 
of the witness and otherwise leave the subpoena blank. The requesting 
party must then fill in the remaining information before serving the 
subpoena.
    (3) If the witness is located in a foreign country, a letters 
rogatory, letter of request, or subpoena may be issued and served as 
provided in 28 U.S.C. 1781-84.
    (f) Service. (1) The requesting party must arrange for service.
    (2) A subpoena requiring the attendance of a witness at a 
deposition or hearing may be served at any place. A subpoena may be 
served by a United States marshal or deputy marshal, or by any other 
person who is not a party and not less than 18 years of age. Service of 
a subpoena on a person must be made by personally delivering a copy to 
that person and tendering the fees for one day's attendance and the 
mileage provided by 28 U.S.C. 1821 or other applicable law.
    (3) The requesting party is responsible for the payment of fees and 
mileage of the witness and of the serving officer. The failure to pay 
such charges on demand may be deemed by the Presiding Officer as a 
sufficient ground to strike the testimony of the witness and any 
evidence the witness has produced.


Sec.  962.14  (Rule 14) Enforcement of subpoenas.

    In the case of contumacy or refusal to obey a subpoena issued under 
Sec. Sec.  962.9(b)(5) and 962.13 (Rules 9 and 13), the United States 
district courts have jurisdiction to issue an appropriate order 
enforcing a subpoena. Any failure to obey a district court may be 
punishable as contempt. If the Postal Service seeks to enforce a 
subpoena under this section, the Postal Service will request the 
Attorney General to petition the district court for the district in 
which a hearing under this part is being conducted or in which the 
person receiving the subpoena resides or conducts business to issue 
such an order.


Sec.  962.15   (Rule 15) Sanctions.

    (a) The Presiding Officer may sanction a person, including any 
party or representative, for:
    (1) Failing to comply with a lawful order or prescribed procedure;
    (2) Failing to prosecute or defend an action; or
    (3) Engaging in other misconduct that interferes with the speedy, 
orderly, or fair conduct of the hearing.
    (b) Any sanction, including but not limited to those listed in 
paragraphs (c) through (e) of this section, must reasonably relate to 
the severity and nature of the failure or misconduct.
    (c) When a party fails to comply with an order, including an order 
for taking a deposition, the production of evidence within the party's 
control, or a request for admission, the Presiding Officer may:
    (1) Draw an inference about the information sought in favor of the 
requesting party;
    (2) Prohibit a party from introducing evidence concerning, or 
otherwise relying on, testimony relating to the information sought;
    (3) Permit the requesting party to introduce secondary evidence 
concerning the information sought; and
    (4) Strike any part of the pleadings or other submissions of the 
party failing to comply with such request.
    (d) If a party fails to prosecute or defend an action commenced by 
service of a Complaint, the Presiding Officer may dismiss the action or 
enter an order of default.
    (e) The Presiding Officer may refuse to consider any motion or 
other pleading, report, or response that is not filed in a timely 
fashion.


Sec.  962.16  (Rule 16) Disqualification of reviewing official or 
presiding official.

    (a) If a Respondent believes, in good faith, that the Reviewing 
Official should be disqualified because of personal bias, or other 
reason, the Respondent may file a timely and sufficient affidavit with 
supporting evidence. If the Presiding Officer finds that the 
allegations concerning the Reviewing Official are meritorious, the 
Presiding Officer may

[[Page 33276]]

disqualify the Reviewing Official and request the appointment of a new 
Reviewing Official.
    (b) If a Respondent believes, in good faith, that the Presiding 
Official should be disqualified because of personal bias, or other 
reason, the Respondent may file a timely and sufficient affidavit with 
supporting evidence. Where a Respondent seeks to disqualify a Presiding 
Officer, the Presiding Officer may do so at any time during the 
proceeding.
    (c) If a Reviewing Official or Presiding Officer withdraws from a 
hearing, the proceeding will be stayed until the assignment of a new 
Reviewing Official or Presiding Officer.


Sec.  962.17  (Rule 17) Ex parte communications.

    Communications between a Presiding Officer and a party may not be 
made on any matter in issue unless on notice and opportunity for all 
parties to participate. This prohibition does not apply to procedural 
matters. A memorandum of any communication between the Presiding 
Officer and a party will be transmitted by the Presiding Officer to all 
parties.


Sec.  962.18   (Rule 18) Posthearing briefs.

    Posthearing and reply briefs may be submitted as directed by the 
Presiding Officer after the hearing.


Sec.  962.19  (Rule 19) Transcript of proceedings.

    The Presiding Officer will arrange for a transcript of the hearing 
to be made, unless ordered otherwise. The transcript provided by the 
Presiding Officer is the official record of the hearing, and the 
Presiding Officer will provide the parties with a copy after the 
hearing.


Sec.  962.20   (Rule 20) Initial decision.

    (a) After the hearing and the receipt of briefs, if any, the 
Presiding Officer will issue a written initial decision, including 
findings and determinations. The decision will include the findings of 
fact and conclusions of law the Presiding Officer relied on in 
determining whether the Respondent is liable under 31 U.S.C. 3802, and, 
if liability is found, will set forth the amount of any penalties and 
assessments.
    (b) The Presiding Officer will promptly send each party a copy of 
the initial decision, and a statement describing the right of any 
person determined to be liable under 31 U.S.C. 3802 to appeal the 
decision of the Presiding Officer to the Judicial Officer in accordance 
with Sec.  962.21 (Rule 21).
    (c) Unless the Respondent appeals the Presiding Officer's initial 
decision, that decision, including the findings and determinations, is 
final.


Sec.  962.21  (Rule 21) Appeal of initial decision to Judicial Officer.

    (a) Notice of appeal and supporting brief. (1) A Respondent may 
appeal an adverse initial decision within 30 days after the Presiding 
Officer issues an initial decision by filing a Notice of Appeal with 
the Recorder. The Judicial Officer may extend the filing period if the 
Respondent files a request for an extension within the initial 30-day 
period and demonstrates good cause for an extension.
    (2) The Respondent's Notice of Appeal must be accompanied by a 
written brief specifying the Respondent's exceptions, and any reasons 
for such exceptions, to the Presiding Officer's initial decision.
    (3) Within 30 days of receiving the Respondent's brief, the 
Reviewing Official may file a response to the Respondent's specified 
exceptions to the Presiding Officer's initial decision.
    (b) Form of review. (1) Review by the Judicial Officer will be 
based solely on the record and written submissions.
    (2) The Judicial Officer may affirm, reduce, reverse, or remand any 
penalty or assessment made by the Presiding Officer.
    (3) The Judicial Officer may not consider an objection that was not 
raised during the hearing unless the interested party demonstrates that 
the failure to raise the objection before the Presiding Officer was 
caused by extraordinary circumstances.
    (4) If any party demonstrates that additional evidence not 
presented at the hearing is material and that there were reasonable 
grounds for the failure to present the evidence, the Judicial Officer 
will remand the matter to the Presiding Officer for consideration of 
the additional evidence.
    (c) Decision of Judicial Officer. (1) The Judicial Officer will 
promptly serve each party a copy of the decision and a statement 
describing the right to judicial review under 31 U.S.C. 3805 for a 
Respondent determined to be liable under 31 U.S.C. 3802.
    (2) The decision of the Judicial Officer constitutes final agency 
action and becomes final and binding on the parties 60 days after it is 
issued, unless a petition for judicial review is filed.


Sec.  962.22  (Rule 22) Form and filing of documents.

    (a) All pleadings and documents required under this part must be 
filed using the Judicial Officer electronic filing system, unless the 
Presiding Officer permits otherwise. The Judicial Officer electronic 
filing system website is accessible 24 hours a day at <a href="https://usps-judicialoffice.journaltech.com">https://usps-judicialoffice.journaltech.com</a>.
    (b) Documents submitted using the electronic filing system are 
considered filed as of the date and time (Eastern Time) reflected in 
the system. Documents mailed to the Recorder are considered filed on 
the date mailed as evidenced by a United States Postal Service 
postmark. Filings by any other means are considered filed upon receipt 
by the Recorder of a complete copy of the filing during normal business 
hours. Normal business hours are between 8:30 a.m. and 4:30 p.m. 
(Eastern Time), Monday through Friday except Federal holidays.


Sec.  962.23   (Rule 23) Service.

    If both parties are participating in the electronic filing system, 
separate service on the opposing party is not required. Otherwise, 
documents must be served personally or by mail on the opposing party, 
noting on the document filed, or on the transmitting letter, that a 
copy has been so furnished.


Sec.  962.24  (Rule 24) Computation time periods.

    (a) In computing any time period provided for by this part, or any 
order issued under this part, the time begins with the day following 
the act, event, or default, and includes the last day of the period, 
unless that day is a Saturday, Sunday, or Federal holiday, in which 
case it includes the next business day.
    (b) When the applicable time period is less than seven days, 
intermediate Saturdays, Sundays, and Federal holidays will be excluded 
from the computation.


Sec.  962.25  (Rule 25) Continuances and extensions.

    Continuances and extensions may be granted for good cause shown.


Sec.  962.26  (Rule 26) Settlement.

    (a) Either party may offer to settle or propose an adjustment at 
any time.
    (b) The Reviewing Official has the exclusive authority to 
compromise or settle any allegations or determinations of liability 
under 31 U.S.C. 3802 without the consent of the Presiding Officer, 
except during the pendency of an appeal to the appropriate United 
States district court under 31 U.S.C. 3805 or during the pendency of an 
action to collect any penalties or assessments under 31 U.S.C. 3806.
    (c) The Attorney General has the exclusive authority to compromise 
or settle any penalty or assessment that is the subject of a pending 
petition for judicial review, or a pending action to recover a penalty 
or assessment.

[[Page 33277]]

    (d) The Reviewing Official may recommend settlement terms to the 
Attorney General, as appropriate.


Sec.  962.27  (Rule 27) Limitations.

    A hearing under this part concerning a claim or statement allegedly 
made, presented, or submitted in violation of 31 U.S.C. 3802 must be 
commenced within six years after the date on which such claim or 
statement is made, presented, or submitted.

Colleen Hibbert-Kapler,
Attorney, Ethics and Legal Compliance.
[FR Doc. 2025-13415 Filed 7-16-25; 8:45 am]
BILLING CODE 7710-12-P


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Indexed from Federal Register on July 17, 2025.

This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.