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Mar 12 09 10: 03a San 9uin C 209952" 9 p. 3 <br /> Memorandum to Ron Baldwin <br /> May 8, 2000 <br /> Page Two <br /> These two definitions comprise the entire definition of a "business" for purposes of <br /> the Act: Section 25501.4 was added in 1988. It broadened the definition of a "business" to <br /> include the federal government as well as state governmental entities. By enacting this <br /> section, the Legislature found it necessary to provide specific language whereby certain <br /> public entities would be included within the definition of"business." Since the USPS is <br /> considered to be a federal agency, but excluded from the EPCRA as an independent <br /> establishment, it is my opinion they are then considered a federal agency subject to local <br /> requirements. The independent nature and intent of Congress in such designation is <br /> illustrated in Beneficial Finance Co. of New Your, Inc. v. Dallas, C.A.N.Y. 1978, 571 F.2d <br /> 125 which stated that, "Congressional purposes in establishing USPS was to permit Service <br /> to operate in "business-like" fashion; to such end, Congress removed Service from political <br /> sphere and authorized it to act as an independent establishment with powers equivalent to <br /> private business enterprise, such as power to make contracts, keep accounts and to acquire <br /> and lease property. In several instances,the USPS is subject to State law. In Powers v.U.S. <br /> Postal Service C.A. 7 (Ind.) 1982, 671 F.2d 104, the Court found, "State law, rather than <br /> federal common law, was applicable in deciding dispute between United States Postal <br /> Service,as tenant,and a private landlord concerning the landlord's right to terminate the lease <br /> for ncnpay rent of rent." <br /> Interestingly, the USPS admits in its letter that Congress has not specifically waived <br /> the federal government's sovereign immunity from local regulation in regard to hazardous <br /> material releases and reporting requirements in the emergency planing and community right- <br /> to-know area. Several cases illustrate that the broad sovereign immunity granted the postal <br /> service's predecessor was not given to the current USPS in other areas as well. It appears that <br /> as an independent establishment which is part of the executive branch, the USPS has been <br /> given the authority to act as a local private employer. Just by the mere fact that they are <br /> excluded from the EPCRA is indicative of this point. <br /> It is my opinion that if they hold themselves out as an independent establishment of <br /> the executive branch,a federal agency not subject to EPCRA,then they are subject to the fees <br /> imposed by Chapter 6.95 as the federal government. If they're independent establishment <br /> status and waiver from EPCRA is because they have been given "private business-like" <br /> independence, they are subject to State law as a business and employer. <br /> Based on the above analysis, it is my opinion that the USPS is subject to the fees <br /> established by the administering agency pursuant to Chapter 6.95 of the California Health <br /> and Safety Code either as an employer, pursuant to section 25501(d) or as the federal <br /> government pursuant to section 25501.4(a). <br />