[Federal Register Volume 64, Number 44 (Monday, March 8, 1999)]
[Rules and Regulations]
[Pages 10950-10952]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-5319]
=======================================================================
-----------------------------------------------------------------------
POSTAL SERVICE
39 CFR Part 111
Use and Determination of Postage Value of Breast Cancer Research
Semi-postal Stamp
AGENCY: Postal Service.
ACTION: Final rule; response to Comments.
-----------------------------------------------------------------------
SUMMARY: This rule responds to comments on the final rule published in
the Federal Register on July 16, 1998 (63 FR 38309), on which the
Postal Service had sought comments concerning the use and determination
of postage value of the Breast Cancer Research Semi-postal Stamp. The
Postal Service has made minor changes to the Domestic Mail Manual
standards pertaining to the exchange value.
EFFECTIVE DATE: In accordance with the final rule published on July 16,
1998, the effective date for the final rule was July 29, 1998.
Amendments to Domestic Mail Manual language published here as a
response to comments were effective January 10, 1999.
FOR FURTHER INFORMATION CONTACT: Anne Emmerth, (202) 268-2363.
SUPPLEMENTARY INFORMATION: On July 16, 1998, the Postal Service
published in the Federal Register a final rule (61 FR 38309) that
established the standards in the Domestic Mail Manual (DMM) governing
the use and determination of postage value of the Breast Cancer
Research Semi-postal Stamp. The final rule took effect on July 29,
1998, the first date on which the Breast Cancer Research Semi-postal
Stamp was made available for sale to the public in accordance with the
Stamp Out Breast Cancer Act, Pub. L. 105-41, 111 Stat. 1119 (1997). The
Stamp Out Breast Cancer Act provides that the Postal Service make a
Breast Cancer Research Semi-postal Stamp available for sale to the
public no later than August 13, 1998.
Although the Postal Service published the DMM standards pertaining
to the Breast Cancer Research Semi-postal Stamp as a final rule, the
Postal Service solicited public comment on the DMM standards
implementing the Stamp Out Breast Cancer Act. The Postal Service
received three comments, which are addressed below. The Postal Service
has made minor changes to DMM standards pertaining to the exchange
value of Breast Cancer Research Semi-postal Stamps. These revisions
were effective January 10, 1999.
One concern raised by two commenters relates to the stamp's postage
value. In particular, the commenters noted that the postage value of
the stamp will be determined by the First-Class Mail single-piece
first-ounce rate in effect at the time of purchase, in lieu of the
First-Class Mail single-piece first-ounce rate effective at the time of
usage. The commenters expressed concern that this measure may be
confusing for customers, given that the Breast Cancer Research Semi-
postal Stamp does not bear a numerical denomination.
The Postal Service is sensitive to the commenters' concerns;
however, these standards are necessary to protect postal revenues. The
Postal Service determines the amount of money available for breast
cancer research based upon the First-Class Mail single-piece rate in
effect at the time of purchase.
One commenter suggested that the Postal Service should issue semi-
postal stamps bearing a numerical value equivalent to the First-Class
Mail single-piece rate in effect at the time of purchase. The Postal
Service appreciates this suggestion. In this case, however, the
interests of administrative and operational simplicity are served by
the absence of a numerical value on the stamp. It would have been
difficult to adopt the commenter's suggestion in this case, because the
Postal Service could not predict the quantity of stamps that should be
printed at each rate, given that, at the time the stamps had to be
produced, no final decisions on rate changes, or their effective date,
had been made.
Two commenters asked why customers will be required to present a
dated receipt in order to receive exchanges for 33 cents postage. In
response to these comments, the Postal Service will not require
customers to present a receipt in order to receive exchanges for Breast
Cancer Research Semi-postal Stamps. Breast Cancer Research Semi-postal
Stamps will be exchanged at the postage value in effect at the time of
exchange. The Postal Service does not expect to exchange many Breast
Cancer Research Semi-postal Stamps, as self-adhesive stamps may only be
exchanged under limited circumstances (see Domestic Mail Manual
P014.1.8).
One commenter questions why the conversion and exchange value of
the Breast Cancer Research Semi-postal Stamp is limited to its postage
value. This standard is required because, by operation of the Stamp Out
Breast Cancer Act, the revenue that the Postal Service receives from
the differential (net of the stamp selling price and the postage value)
must be transferred to the Department of Defense and the National
Institutes of Health for the purpose of breast cancer research.
Consequently, once the differential revenue is transferred, the Postal
Service will not have access to the differential revenue paid for the
purpose of funding postage exchanges and conversions.
One commenter questions whether the amount of the differential
applies toward the $100 exchange limit in DMM P014.1.2. The exchange
limit per transaction of $100 in P014.1.2 is not affected by the amount
of the differential.
One commenter believes that the Stamp Out Breast Cancer Act should
be interpreted so that the differential amount varies depending upon
the First-Class Mail postage rate applicable to pieces weighing more
than one ounce. This interpretation has no support in the legislative
history, and would, moreover, require the adoption of sales and usage
practices that would be completely unworkable. Under this
interpretation, the Postal Service could not set a uniform price for
the stamp; rather, the amount of differential would have to be
separately determined whenever customers intended to use Breast Cancer
Research Semi-postal Stamps to pay for postage above the first-ounce
rate. This would also have the adverse effect of limiting the stamp's
marketability and utility, since the stamp's price would have to be
separately determined for each mailing transaction.
One commenter asked what postage value Breast Cancer Research Semi-
postal Stamps would have when such stamps are used in multiples. Each
Breast Cancer Research Semi-postal Stamp purchased before January 10,
1999, will have a postage value of $0.32, regardless of whether such
stamps are used in multiples.
One commenter questioned whether the Breast Cancer Research Semi-
postal Stamp could be used to pay postage for classes of mail other
than First-Class Mail, or for international mail. Breast Cancer
Research Semi-postal Stamps are considered nondenominated stamps and
may be used on domestic classes other than First-Class Mail to the
extent
[[Page 10951]]
postage may be paid by stamps in accordance with the payment standards
for the appropriate class of mail. Recently adopted amendments to DMM
P022.2.1 and International Mail Manual (IMM) section 152.2 make clear
that the Breast Cancer Research Semi-postal Stamp may be used on
international mail. See Postal Bulletin 21978 (August 13, 1998).
Finally, one commenter was disappointed that funds raised through
the sale of the stamp would be given to the Department of Defense. This
comment exceeds the scope of the final rule. The Postal Service is not
authorized to select the organizations that receive contributions to
breast cancer research made by purchasers of the Breast Cancer Research
Semi-postal Stamp. Rather, the Stamp Out Breast Cancer Act directs the
Postal Service to pay prescribed percentages of the revenue from the
differential to the National Institutes of Health and the Department of
Defense.
Although exempt from the notice and comment requirements of the
Administrative Procedure Act (5 U.S.C. 553(b), (c)) regarding
rulemaking by 39 U.S.C. 410(a), the Postal Service hereby amends the
following standards of the Domestic Mail Manual (DMM), incorporated by
reference in the Code of Federal Regulations. See 39 CFR part 111.
List of Subjects in 39 CFR Part 111
Postal Service.
PART 111--[AMENDED]
1. The authority citation for 39 CFR part 111 continues to read as
follows:
Authority: 5 U.S.C. 552(a); 39 U.S.C. 101, 401, 403, 414, 3001-
3011, 3201-3219, 3403-3406, 3621, 3626, 5001.
2. Revise the following sections of the Domestic Mail Manual as set
forth below:
P Postage and Payment Methods
* * * * *
P014 Refunds and Exchanges
1.0 STAMP EXCHANGES
1.1 USPS Fault
[Revise to read:]
The post office may correct mistakes in selling damaged, defective,
or otherwise unserviceable stamps by exchanging stamps at full postage
value.
1.2 Damaged in Customer's Possession
[Revise the last sentence to read as follows:]
* * * Each such transaction is limited to $100 worth of postage
from each customer.
* * * * *
1.5 Purchase Error
[Revise the first sentence to read as follows:]
If a customer bought the wrong denomination stamps (or the wrong
kind, size, or denomination envelope), they may be exchanged at full
postage value. * * *
* * * * *
2.0 POSTAGE AND FEES REFUNDS
* * * * *
[Revise new 2.10 to read as follows:]
2.10 Breast Cancer Research Semi-postal Stamps
Customers may exchange or convert Breast Cancer Research Semi-
postal Stamps for their postage value, i.e., the price of the stamps
less the contribution amount, to the extent exchange or conversion of
postage stamps is permitted under P014. The postage exchanged or
converted is equivalent to the First-Class Mail single-piece rate in
effect at the time of exchange. The contribution amount is not included
in the exchange or conversion value.
* * * * *
P020 Postage Stamps and Stationery
P022 Adhesive Stamps
1.0 PURCHASE AND USE
* * * * *
[Revise 1.6 to read as follows:]
1.6 Breast Cancer Research Semi-postal Stamps
Breast Cancer Research Semi-postal Stamps are subject to special
limitations and conditions:
a. Breast Cancer Research Semi-postal Stamps provide a means for
customers to make contributions toward breast cancer research. Breast
Cancer Research Semi-postal Stamps are offered for sale for a limited
time as provided under 39 U.S.C. 414.
b. The price of the Breast Cancer Research Semi-postal Stamp is 40
cents. The postage value of the Breast Cancer Research Semi-postal
Stamp is the First-Class Mail Nonautomation Single-Piece first-ounce
letter rate in R100.1.2 that is in effect at the time of purchase. The
difference between the purchase price and the First-Class Mail
Nonautomation Single-Piece first-ounce letter rate in effect at the
time of purchase constitutes a contribution to breast cancer research,
and cannot be used to pay postage. Additional postage must be affixed
to pieces weighing in excess of one ounce, pieces subject to the
nonstandard surcharge, or pieces for which special services have been
elected. The postage value of Breast Cancer Research Semi-postal Stamps
is fixed according to the First-Class Mail Nonautomation Single-Piece
first-ounce letter rate in effect at the time of purchase; the postage
value of Breast Cancer Research Semi-postal Stamps purchased before any
subsequent change in the First-Class Mail Nonautomation Single-Piece
first-ounce letter rate is unaffected by any subsequent change in that
rate.
c. Contributions to breast cancer research made through purchase of
Breast Cancer Research stamps are not refundable. The postage value of
Breast Cancer Research stamps for purposes of exchange or conversion
under P014 is determined by the First-Class Mail Nonautomation Single-
Piece rate in effect at the time of purchase, or as otherwise provided
in P014.2.10.
* * * * *
R Rates and Fees
R000 Stamps and Stationery
* * * * *
[Amend the table in R000.4.0 to revise the following line item:]
----------------------------------------------------------------------------------------------------------------
Purpose Form Denomination
----------------------------------------------------------------------------------------------------------------
* * * * * *
*
Breast Cancer Research............... Panes of up to 20...... Purchase Price of $0.40; Postage Value
Equivalent to First-Class Mail Nonautomation
Single-Piece Rate (currently $0.32); remainder
is contribution to fund Breast Cancer Research.
----------------------------------------------------------------------------------------------------------------
[[Page 10952]]
* * * * *
An appropriate amendment to 39 CFR 111.3 will be published to
reflect these changes.
Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 99-5319 Filed 3-5-99; 8:45 am]
BILLING CODE 7710-12-P
