[Code of Federal Regulations]
[Title 39, Volume 1]
[Revised as of July 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 39CFR501.14]

[Page 180]
 
                        TITLE 39--POSTAL SERVICE
 
                 CHAPTER I--UNITED STATES POSTAL SERVICE
 
PART 501--AUTHORIZATION TO MANUFACTURE AND DISTRIBUTE POSTAGE METERS--Table 
of Contents
 
Sec. 501.14  Administrative sanction on reporting.

    (a) Notwithstanding any act, admission, or omission by the Postal 
Service before June 30, 1995, an authorized postage meter manufacturer 
may be subject to an administrative sanction for failing to comply with 
Sec. 501.13.
    (b) The Postal Service shall determine all costs and revenue losses 
measured from the date that the manufacturer knew, or should have known, 
of a potential security weakness, including, but not limited to, 
administrative and investigative costs and documented revenue losses 
that result from any meter for which the manufacturer failed to comply 
with any provision in Sec. 501.13. The Postal Service shall recover any 
and all such costs and losses (net of any amount collected by the Postal 
Service from the licensees or meter users) with interest by issuing a 
written notice to the manufacturer setting forth the facts and reasons 
on which the determination to impose the sanction is based. The notice 
shall advise the manufacturer of the date that the action takes effect 
if a written defense is not presented within 30 calendar days of receipt 
of the notice.
    (c) The manufacturer may present the Postal Service with a written 
defense to the proposed action within 30 calendar days of receipt. The 
defense must include all supporting evidence and state with specificity 
the reasons for which the sanction should not be imposed.
    (d) After receipt and consideration of the defense, the Postal 
Service shall advise the manufacturer of the decision and the facts and 
reasons for it; the decision shall be effective on receipt unless it 
provides otherwise. The decision shall also advise the manufacturer that 
it may, within 30 calendar days of receiving written notice, appeal that 
determination as specified therein.
    (e) The manufacturer may submit a written appeal to the Postal 
Service within 30 calendar days of receipt of the decision. The appeal 
must include all supporting evidence and state with specificity the 
reasons that the manufacturer believes that the administrative sanction 
was erroneously imposed. The submission of an appeal stays the 
effectiveness of the sanction.
    (f) The imposition of an administrative sanction under this section 
does not preclude any other criminal or civil statutory, common law, or 
administrative remedy that is available by law to the Postal Service, 
the United States, or any other person or concern.