[Federal Register Volume 60, Number 13 (Friday, January 20, 1995)]
[Notices]
[Pages 4207-4208]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-1424]



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POSTAL SERVICE


Verification Procedures for Second-Class Publications

AGENCY: Postal Service.

ACTION: Proposed procedure.

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SUMMARY: The Postal Service proposes to revise its procedures for 
determining whether authorized second-class publications continue to 
meet the applicable eligibility requirements and whether the proper 
amount of postage is paid on the mailings of these publications. Under 
the revised procedures, the Postal Service will conduct a postage 
payment review of all publications at least once a year at the time of 
mailing of one of the issues of the publications to be reviewed. A 
separate eligibility review will be scheduled only in certain 
instances. To facilitate the eligibility review, the publisher of an 
authorized second-class publication will be required to provide 
circulation data to the Postal Service before the review is undertaken.

DATES: Comments must be received on or before February 21, 1995.

ADDRESSES: Written comments should be mailed or delivered to the 
Manager, Business Mail Acceptance, U.S. Postal Service, 475 L'Enfant 
Plaza SW, Washington, DC 20260-6808. Copies of all written comments 
will be available for inspection and photocopying between 9 a.m. and 4 
p.m., Monday through Friday, in room 8530 at the above address.

FOR FURTHER INFORMATION CONTACT: Edward Mayhew, (212) 613-8747.

SUPPLEMENTARY INFORMATION: In accordance with its statutory 
responsibilities, the Postal Service must ensure that authorized 
second-class publications continue to meet the second-class eligibility 
requirements and that these publications pay the proper amount of 
postage on mailings. See 39 U.S.C. 404, 3685.
    Verifications of publications are one of the means used to achieve 
these goals. Currently, the Postal Service schedules a second-class 
publication for review every 1 to 3 years, depending on the number of 
original entries authorized at the post office conducting the review. 
The review procedure includes verification of the accuracy of 
[[Page 4208]] the mailing statement (postage payment) and the 
eligibility of the publication to qualify for second-class privileges, 
particularly, compliance with the circulation requirements.
    After examining these procedures, the Postal Service believes that 
the procedures do not promote the most efficient use of postal 
resources. On one hand, the Postal Service believes that eligibility 
reviews need not be conducted for all publications. That is, where 
other evidence provides assurance that a publication remains eligible 
for second-class privileges, an on-site verification need not 
invariably be conducted. On the other hand, the Postal Service believes 
that postage payment verification for all publications should be 
conducted at least once a year. Accordingly, the following procedures 
are proposed.
    The Postal Service proposes to separate the postage payment part of 
the review from the eligibility part. Each second-class publication 
will receive a postage payment review of one of the issues at least 
once each calendar year. This review will be conducted at the time of 
mailing at each post office where second-class postage is paid. 
Publishers claiming automation and presort rates will be required, at 
the review, to submit the documentation required by the Postal Service 
to substantiate the publication's eligibility for automation and 
presort rate levels.
    For those publications subject to circulation standards, the Postal 
Service proposes using the annual Statement of Ownership, Management, 
and Circulation (PS Form 3526) as the basis for evaluating whether a 
second-class publication continues to meet the applicable eligibility 
requirements of being distributed to 50 percent or more persons who 
have paid for or requested the publication.
    A review will be scheduled based on the percentage of paid or 
requested circulation shown by the publisher on PS Form 3526. The 
Postal Service still reserves its right to audit if there is a question 
about the eligibility of a publication.
    When a second-class publication is selected for an eligibility 
review, the publisher will be notified by the post office serving the 
known office of publication. The publisher will be advised of the issue 
to be verified.
    In order that the review may be conducted as quickly and 
efficiently as possible, the publisher will be asked to provide 
circulation information prior to the review. The Postal Service will 
revise PS Form 3548, Review and Verification of Circulation, for this 
purpose.
    Accordingly, the original entry post office will mail the publisher 
a blank Form 3548, with a cover letter asking the publisher to complete 
the unshaded parts of the form for the issue specified. The publisher 
will be given 15 days from the receipt of the cover letter to return 
the completed form to the post office of the original entry office.
    The unshaded parts of the Form 3548 will contain information 
relating to the total distribution of the issue being reviewed. The 
Postal Service will then send a representative to the known office of 
publication to examine the circulation records.
    Publications that are audited by Postal Service-approved 
independent audit bureaus will continue to have their eligibility and 
postage payment reviews conducted by the independent audit bureaus. 
Publications mailing under the Centralized Postage Payment system will 
continue to have their postage payment reviews conducted annually by 
the New York Rates and Classification Service Center.
    Appropriate procedures to reflect these changes will be implemented 
if the proposal is adopted.
Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 95-1424 Filed 1-19-95; 8:45 am]
BILLING CODE 7710-12-P