[Federal Register Volume 78, Number 142 (Wednesday, July 24, 2013)]
[Rules and Regulations]
[Pages 44438-44439]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-17712]


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POSTAL SERVICE

39 CFR Part 501


Notice of Organization Name and Address Change

AGENCY: Postal Service\TM\.

ACTION: Final rule.

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SUMMARY: The Postal Service is revising the rules concerning 
authorization to manufacture and distribute postage evidencing systems 
to reflect that the Office of Postage Technology Management is now 
known as Payment Technology and has a new mailing address.

DATES: Effective date: July 24, 2013.

FOR FURTHER INFORMATION CONTACT: Marlo Kay Ivey, Business Programs 
Specialist, Payment Technology, United States Postal Service, at 202-
268-7613.

SUPPLEMENTARY INFORMATION: The United States Postal Service[supreg] 
(USPS[supreg]) has undergone a redesign. In that process, the Office of 
Postage Technology Management (PTM) was renamed Payment Technology (PT) 
and is now under the direction of the office of the Vice President of 
Mail Entry and Payment Technology, within the purview of the Chief 
Information Officer. In addition, since the relocation of its physical 
office, Payment Technology has a new mailing address.

List of Subjects in 39 CFR Part 501

    Administrative practice and procedure.

    Accordingly, for the reasons stated in the preamble, the Postal 
Service amends 39 CFR part 501 as follows:

PART 501--AUTHORIZATION TO MANUFACTURE AND DISTRIBUTE POSTAGE 
EVIDENCING SYSTEMS

0
1. The authority citation for 39 CFR part 501 continues to read as 
follows:

    Authority: 5 U.S.C. 552(a); 39 U.S.C. 101, 401, 403, 404, 410, 
2601, 2605, Inspector General Act of 1978, as amended (Pub. L. 95-
452, as amended); 5 U.S.C. App. 3.

0
2. In Sec.  501.2, revise paragraph (g) to read as follows:


Sec.  501.2  Postage Evidencing System provider authorization.

* * * * *
    (g) The Postal Service office responsible for administration of 
this part is the Office of Payment Technology (PT) or successor 
organization. All submissions to the Postal Service required or invited 
by this part are to be made to this office in person or via mail to 475 
L'Enfant Plaza SW., Room 3500, Washington DC 20260-0004.

0
3. In Sec.  501.6, revise paragraphs (c)(1)-(3) and (e) to read as 
follows:


Sec.  501.6  Suspension and revocation of authorization.

* * * * *
    (c) * * *
    (1) Upon determination by the Postal Service that a provider is in 
violation of provisions of this part, or that its Postal Evidencing 
System poses an unreasonable risk to postal revenue, PT, acting on 
behalf of the Postal Service, shall issue a written notice of proposed 
suspension citing the specific conditions or deficiencies for which 
suspension of authorization to manufacture and/or distribute a specific 
Postage Evidencing System or class of Postage Evidencing Systems may be 
imposed. Except in cases of willful violation, the provider shall be 
given an opportunity to correct deficiencies and achieve compliance 
with all requirements within a time limit corresponding to the 
potential risk to postal revenue.
    (2) In cases of willful violation, or if the Postal Service 
determines that the provider has failed to correct cited deficiencies 
within the specified time limit, PT shall issue a written notice of 
suspension setting forth the facts and reasons for the decision to 
suspend, and the effective date if a written defense is not presented 
as provided in paragraph (d) of this section.
    (3) The notice shall also advise the provider of its right to file 
a response under paragraph (d) of this section. If a written response 
is not presented in a timely manner the suspension may go into effect. 
The suspension shall remain in effect for ninety (90) calendar days 
unless revoked or modified by PT.
* * * * *
    (e) After receipt and consideration of the defense, PT shall advise 
the provider of its decision, and the facts

[[Page 44439]]

and reasons for it. The decision shall be effective upon receipt unless 
it provides otherwise. The decision shall also advise the provider that 
it may be appealed within thirty (30) calendar days of receipt (unless 
a shorter time frame is deemed necessary). If an appeal is not filed in 
a timely manner, the decision of PT shall become a final decision of 
the Postal Service. The appeal may be filed with the Chief Information 
Officer of the Postal Service and must include all supporting evidence 
and state with specificity the reasons the provider believes that the 
decision is erroneous. The decision of the Chief Information Officer 
shall constitute a final decision of the Postal Service.
* * * * *

0
4. In Sec.  501.7, revise paragraph (a) to read as follows:


Sec.  501.7  Postage Evidencing System requirements.

    (a) A Postage Evidencing System submitted to the Postal Service for 
approval must meet the requirements of the Intelligent Mail Indicia 
Performance Criteria published by PT. Copies of the current Performance 
Criteria may be requested via mail to the address in Sec.  501.2(g).
* * * * *

0
5. In Sec.  501.8, revise paragraph (a) to read as follows:


Sec.  501.8  Postage Evidencing System test and approval.

    (a) To receive Postal Service approval, each Postage Evidencing 
System must be submitted by the provider and evaluated by the Postal 
Service in accordance with the Postage Evidencing Product Submission 
Procedures published by PT. Copies of the current Performance Criteria 
may be requested via mail to the address in Sec.  501.2(g). These 
procedures apply to all proposed Postage Evidencing Systems regardless 
of whether the provider is currently authorized by the Postal Service 
to distribute Postage Evidencing Systems. All testing required by the 
Postal Service will be an expense of the provider.
* * * * *

0
6. Revise Sec.  501.10 to read as follows:


Sec.  501.10  Postage Evidencing System modifications.

    (a) An authorized provider must receive prior written approval from 
the manager, PT, of any and all changes made to a previously approved 
Postage Evidencing System. The notification must include a summary of 
all changes made and the provider's assessment as to the impact of 
those changes on the security of the Postage Evidencing System and 
postage funds. Upon receipt of the notification, PT will review the 
summary of changes and make a decision regarding the need for the 
following:
    (1) Additional documentation.
    (2) Level of test and evaluation required.
    (3) Necessity for evaluation by a laboratory accredited by the 
National Institutes of Standards and Technology (NIST) under the 
National Voluntary Laboratory Accreditation Program (NVLAP).
    (b) Upon receipt and review of additional documentation and/or test 
results, PT will issue a written acknowledgement and/or approval of the 
change to the provider.

0
7. In Sec.  501.12, revise paragraph (d) to read as follows:


Sec.  501.12  Administrative sanctions.

* * * * *
    (d) After receipt and consideration of the defense, the Postal 
Service shall advise the provider of the decision, and the facts and 
reasons for it; the decision shall be effective upon receipt unless it 
provides otherwise. The decision shall also advise the provider that it 
may, within thirty (30) calendar days of receiving written notice, 
appeal that determination to the Chief Information Officer of the 
Postal Service, who shall issue a written decision upon the appeal, 
which will constitute the final Postal Service decision.
* * * * *

Stanley F. Mires,
Attorney, Legal Policy & Legislative Advice.
[FR Doc. 2013-17712 Filed 7-23-13; 8:45 am]
BILLING CODE 7710-12-P