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April26,2011Mr.MarkStrongPresidentNationalLeagueofPostmastersOneBeltwayCenter5904RichmondHighway,Suite500Alexandria,VA22303-1864Mr.RobertRapozaPresidentNationalAssociationofPostmastersoftheUnitedStatesEightHerbertStreetAlexandria,VA22305-2600

Re:PostalServiceProposedRule:"PostOfficeOrganizationandAdministration:Establishment,ClassificationandDiscontinuance,"39CFRPart241

DearMr.RapozaandMr.Strong:YouhaverequestedalegalopinionastowhethertheUnitedStatesPostalService'sProposedRules"toimprovetheadministrationofthePostOfficeclosingandconsolidationprocess,"appearingat79Fed.Reg.17794-801(March31,2011),areconsistentwiththestatutesgoverningthesamesubjects.

myopinion,basedonmyfamiliaritywiththeapplicablelaw,andoncourtdecisionsandthelegislativehistory,thePostalService'sProposedRulesareinsignificantconflictwithapplicablelaw.Ihaveprofessionalexperiencewiththeapplicablestatutoryframework,havingpreviouslyservedastheGeneralCounseloftheUnitedStatesPostalService,andasanofficerofitsLawDepartmentservingbydirectappointmenttosixPostmastersGeneral.IbeganmypostalexperienceasatemporarymailhandlerintheformerPostOfficeDepartment.FollowingmygraduationfromStanfordUniversityandtheStanfordLawSchool,IworkedasalawclerkintheLegislativeDivisionofthePostalServiceimmediatelyfollowingcreationoftheServicein1971.IlaterservedasAssociateGeneralCounseloverRateandClassificationLaw,DeputyGeneralCounsel,andasanActingSectionalCenterManager,managingtheSanJose,California,SectionalCenter.

April26,2011Re:PostalServiceProposedRulePage2of10ThePostalService'sstateddesireto"improve"andto"harmonize"itsproceduresfordiscontinuing(i&.,closing)postofficesandotherfacilities,andtopromote"transparency"forcustomersiscertainlyunderstandable.Theproposedrule,however,effectivelyremovesoneofthetwogroundsavailabletocommunitiestoseekreviewofsuchactionsatthePostalRegulatoryCommission;similarly,itremovesanessentialelementfromthecoredefinitionof"postoffice;"anditcounterstheCongressionalintentincreatinganappealprocessandinmandatingservice"toallcommunities"anda"maximumdegree"ofservice"toruralareas,communities,andsmalltownswherepostofficesarenotselfsustaining."39U.S.C.

101(a),(b).

I."CONSOLIDATION"ERASED

Recognizingtheimportanceofpostalservicestolocalcommunities,Congressprovidedtwodistinctcircumstances--closingorconsolidatingpostoffices-wherecommunitiescouldpresenttheirfirst-handknowledgeoftheimpactofthosedecisionsupontheirlocal"commercial,cultural,andsociallife,"

andifnecessary,appealthePostalService'sdecisiontothePostalRegulatoryCommission.DespitethePostalService'sclaimthat"consolidation"isill-defined,Congress,courtsandeventhePostalServicehaveprovidedconsistentdefinitionsofthisterm.ByimplementingtheProposedRule,thePostalServicewoulderasecommunityinvolvementinconsolidationdecisions,withpotentiallyfar-reachingconsequences;theProposedRulewouldalsoerasestatutoryandproceduralprotectionsCongressintendedtoprovidetothepublic.

A.CONGRESSADDS"CONSOLIDATION"TOTHESTATUTES

In1976Congressaddedasubsectionto39U.S.C.

404creatingaprocedurefornotice,communityinput,andarightofappealtothePostalRegulatoryCommissionwheneverthePostalServicedetermined"tocloseorconsolidateapostoffice."Thatprocedure,originallycodifiedasSection404(b),subsequentlybecameSection404(d).Thatsinglesubsectionrefersto"closingorconsolidation"ofanypostofficeeleventimes.Congress,thecourts,andthePostalServicehaveallevincedaclearunderstandingofthemeaninganddistinctionbetweenthe"closing"andthe"consolidation"ofapostoffice.InKnappv.UnitedStatesPostalService,449F.Supp.158(E.D.Mich.,1978),theCourtpointedtothelegislativehistoryindefining"consolidation:""SenatorRandolph,whenheproposedthelegislationdestinedtobecome39U.S.C.

404(b)[now(d)]ontheflooroftheSenate,madeitclearthathisinterestwastodealwiththeproblemofthephysicalclosureofapostofficeorthephysicalconsolidationofpostoffices,particularlyasthisrelatestopostalservicesinrural

H.R.Rep.No.94-391,94thCong.,1stSess.3(1975).

April26,2011Re:PostalServiceProposedRulePage3of10areas....TheSenatorspecificallyobjectedtothe'indiscriminateclosingofourruralandsmalltownpostoffices'aswellasthedecisionbythePostalServiceto'createbranchesoutofmanypostofficesclosetolargecities'andthus'transferacommunityorientedpostofficeintooneadministeredthroughtheinstructionsanddirectivesoflargecitypostmasterswithlittleornocommunityinvolvement.'Hearings[onS.2844BeforetheSenateComm.onPostOfficeandCivilService,Part4,94

Cong.,2dSess.142-143(1976)],supra,at142."Knappat161-162.ClearlyCongressmeanttodistinguishapostofficeclosingfromtheconsolidationofacommunity-orientedpostofficeintoanotheroffice.B.

THECOURTSDEFINE"CONSOLIDATION"

BasedontheintentionsofCongress,asilluminatedinthelegislativehistory,theKnappCourtexplainedthedistinctionbetweena"closing"anda"consolidation,"eitherofwhichcreatesarightofappealtothePostalRegulatoryCommission:"'Consolidation',whilemoredifficulttodescribecertainlyhasthecharacteristicofsubordinatingthedaytodayoverallmanagementofoneofficehavingapostmastertotheadministrativepersonnelofanotheroffice."Knappat162.Thisdefinitionhasbeenfollowedbyothercourts.InCitizensfortheHopkinsPostOfficev.UnitedStatesPostalService,830F.Supp.296(Dist.SC,1993),theCourt,relyingonKnappandonthePostalService'sowndefinitionof"consolidation"stated:"Thiscourtfindsthedefinitionof'consolidation'advancedbythePostalServicetobetheonewhichisreasonableandinkeepingwiththeintentofCongressinthisstatute.

clearlydefines'consolidation'asanactioninwhichapostofficewouldloseitsindependenceandindividualidentity.

istheopinionofthiscourtthatsuchanaction,asdefinedbythePostalService,isclearlythetypeofactionCongressintendedtotriggertheoperationof

404(b)[now(d)]."Hopkins,at299.

THEPOSTALSERVICEDEFINES"CONSOLIDATION"

ThePostalServiceitselfclearlyunderstandsthemeaningandimport"oftheword'consolidate'insection404(d)."JustthemonthbeforeitpublisheditsProposedRules,itexplainedtoafederaldistrictcourt:"APostOfficeisanorganizationalunitheadedbyapostmasterthatprovidesretailanddeliveryservices,andmailprocessingtoresidentsandbusinessesintheZIPCodeareasthatcomprisetheoffice'sexclusiveservicearea.Useoftheword'consolidate'insection404(d)illustratesthisnuance,becauseitinvolvesconsolidationofwhatwasonceanindependentPostOfficeintoasubordinatestationorbranchreportingtoanotherPostOffice."