[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]


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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.

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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:]

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               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.
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[[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