[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