[Federal Register Volume 61, Number 159 (Thursday, August 15, 1996)]
[Notices]
[Pages 42464-42476]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-20815]



[[Page 42463]]


_______________________________________________________________________

Part II





Postal Service





_______________________________________________________________________



Changes in Domestic Mail Rates and Classification; Notice

  Federal Register / Vol. 61, No. 159 / Thursday, August 15, 1996 / 
Notices  

[[Page 42464]]



POSTAL SERVICE


Changes in Domestic Mail Rates and Classifications

AGENCY: Postal Service.

ACTION: Notice of implementation of changes in certain domestic mail 
rates and classification schedules.

-----------------------------------------------------------------------

SUMMARY: This notice sets forth the changes in rates and 
classifications regarding preferred rate mail to be implemented as a 
result of the decision of the Governors of the Postal Service on phase 
two of classification reform, and the changes in preferred rates to be 
implemented as a result of moving to the next step of phasing.

EFFECTIVE DATE: October 6, 1996.

FOR FURTHER INFORMATION CONTACT: Eric Koetting, (202) 268-2992.

SUPPLEMENTARY INFORMATION: On April 4, 1996, pursuant to its authority 
under 39 U.S.C. 3621 et seq., the Postal Service filed with the Postal 
Rate Commission (PRC) a request for a recommended decision on a number 
of mail classification reform proposals regarding certain types of 
preferred rate mail (``Classification Reform II (Nonprofit Mail)'', PRC 
Docket No. MC96-2. The PRC published a notice in the Federal Register 
on April 11, 1996 (61 FR 16129-16146) describing the Postal Service's 
request and offering interested parties an opportunity to intervene.
    On July 19, 1996, the PRC issued an Opinion and Recommended 
Decision in Docket No. MC96-2. The PRC's recommendations very closely 
tracked the Postal Service's proposals, with the exception that the 
Commission deferred action on the minor changes proposed regarding the 
Classroom subclass of Periodicals mail. On August 5, 1996, the 
Governors of the Postal Service, pursuant to their authority under 39 
U.S.C. 3625, approved the permanent rate and classification changes 
recommended by the PRC in Docket No. MC96-2. A copy of the attachments 
to that Decision, presenting the permanent rate and classification 
changes approved by the Governors, is set forth below.
    Also on August 5, 1996, the Board of Governors of the Postal 
Service, pursuant to its authority under 39 U.S.C. 3625(f), determined 
to implement the permanent rate and classification changes approved by 
the Governors effective at 12:01 a.m. on October 6, 1996 (Resolution 
No. 96-4). The Board also determined in Resolution No. 96-4 to exercise 
its authority under 39 U.S.C. 3642 to establish temporary phased rates 
for FY 1997 at Step 4 of the phasing schedules for some, but not all, 
preferred rates.
    Because of the restrictions placed by 39 U.S.C. 3942(d) on the 
level of temporary phased rates that can be implemented for non-letter-
shaped mail in the nonprofit subclasses of Standard Mail, the Board did 
not implement temporary phased rates for rate cells effected by that 
subsection. Rates for those rate cells will be implemented at the full 
rate levels (Step 6) approved by the Governors as permanent rates. 
Although these Step 6 rates will be higher than the otherwise 
applicable Step 4 rates, they are still lower than the Step 4 rates in 
the Docket No. R94-1 phasing schedules. In this respect, they are 
consistent with the higher level of mailer preparation associated with 
classification reform. A copy of the attachment to Resolution No. 96-4, 
presenting the preferred rate phasing schedules, is also set forth 
below. For those rate elements in the phasing schedules for the 
nonprofit categories of Standard Mail which display ``N/A'' (for ``not 
applicable'') under Step 4, the rates to be implemented on October 6, 
1996, will be the rates shown as Step 6. For all other preferred rates, 
the rates to be implemented on October 6, 1996, will be the rates shown 
as Step 4.
    In accordance with the Decision of the Governors and Resolution No. 
96-4, the Postal Service hereby gives notice that the rate and 
classification changes set forth below will become effective at 12:01 
a.m. on October 6, 1996. Implementing regulations also become effective 
at that time, as noted elsewhere in this issue.
Stanley F. Mires,
Chief Counsel, Legislative.

Attachment A to the Decision of the Governors, Docket No. MC96-2 
Attachment B to the Decision of the Governors, Docket No. MC96-2 
Attachment One to Resolution No. 96-4

Attachment A to the Decision of the Governors

Changes in Permanent Rates

Docket No. MC96-2

Standard Mail Rate Schedule 321.4A Nonprofit Subclass

Presort Categories \1\ Full Rates

------------------------------------------------------------------------
                                                                Proposed
                                                                  rate  
                                                                (cents) 
------------------------------------------------------------------------
Letter Size:                                                            
  Piece Rate:                                                           
    Basic....................................................       13.8
    3/5-Digit................................................       12.0
  Destination Entry Discount per Piece:                                 
    BMC......................................................        1.3
    SCF......................................................        1.8
Non-Letter Size:                                                        
  Piece Rate:                                                           
    Minimum per Piece: \2\                                              
        Basic................................................       20.1
        3/5-Digit............................................       14.9
    Destination Entry Discount per Piece:                               
        BMC..................................................        1.3
        SCF..................................................        1.8
  Pound Rate \2\.............................................       48.4
    Plus per Piece Rate:                                                
        Basic................................................       10.0
        3/5-Digit............................................        4.8
    Destination Entry Discount per Pound:                               
        BMC..................................................        6.2
        SCF..................................................        8.8
------------------------------------------------------------------------

Schedule 321.4A Notes

    \1\ A fee of $85.00 must be paid once each 12-month period for 
each bulk mailing permit.
    \2\ Mailer pays either the minimum piece rate or the pound rate, 
whichever is higher.

Standard Mail Rate Schedule 321.4B Nonprofit Subclass

Automation Categories \1\ Full Rates

------------------------------------------------------------------------
                                                                Proposed
                                                                  Rate  
                                                                (cents) 
------------------------------------------------------------------------
Letter Size: \2\                                                        
  Piece Rate:                                                           
    Basic Letter \3\.........................................       10.5
    3-Digit Letter \4\.......................................       10.1
    5-Digit Letter \5\.......................................        8.8
  Destination Entry Discount per Piece:                                 
    BMC......................................................        1.3
    SCF......................................................        1.8
Flat Size: \6\                                                          
  Piece Rate:                                                           
    Minimum per Piece: \7\                                              
        Basic Flat \8\.......................................       17.7
        3/5-Digit Flat \9\...................................       12.5
    Destination Entry Discount per Piece:                               
        BMC..................................................        1.3
        SCF..................................................        1.8
  Pound Rate \7\.............................................       48.4
    Plus per Piece Rate:                                                
        Basic Flat...........................................        7.6
        3/5-Digit Flat.......................................        2.4
    Destination Entry Discount per Pound:                               
        BMC..................................................        6.2
        SCF..................................................        8.8
------------------------------------------------------------------------

Schedule 321.4B Notes

    \1\A fee of $85.00 must be paid once each 12-month period for 
each bulk mailing permit.
    \2\ For letter-size automation pieces meeting applicable Postal 
Service regulations.

[[Page 42465]]

    \3\ Rate applies to letter-size automation mail not mailed at 3-
digit, 5-digit or carrier route rates.
    \4\ Rate applies to letter-size automation mail presorted to 
single or multiple three-digit ZIP Code destinations as prescribed 
by the Postal Service.
    \5\ Rate applies to letter-size automation mail presorted to 
single or multiple five-digit ZIP Code destinations as prescribed by 
the Postal Service.
    \6\ For flat-size automation mail meeting applicable Postal 
Service regulations.
    \7\ Mailer pays minimum piece rate or pound rate, whichever is 
higher.
    \8\ Rate applies to flat-size automation mail not mailed at 3/5-
digit rate.
    \9\ Rate applies to flat-size automation mail presorted to 
single or multiple three- and five-digit ZIP Code destinations as 
specified by the Postal Service.

Standard Mail Rate Schedule 321.5 Nonprofit Enhanced Carrier Route 
Subclass \1\

Full Rates

------------------------------------------------------------------------
                                                                Proposed
                                                                  rate  
                                                                (cents) 
------------------------------------------------------------------------
Letter Size:                                                            
  Piece Rate:                                                           
        Basic................................................        9.9
        Basic Automated Letter \2\...........................        8.5
        High Density.........................................        9.3
        Saturation...........................................        8.7
Destination Entry Discount per Piece:                                   
    BMC......................................................        1.3
        SCF..................................................        1.8
        DDU \3\..............................................        2.4
Non-Letter Size:                                                        
  Piece Rate:                                                           
    Minimum per Piece: \4\                                              
        Basic................................................      10.7#
        High Density.........................................       10.0
        Saturation...........................................        9.4
    Destination Entry Discount per Piece:                               
        BMC..................................................        1.3
        SCF..................................................        1.8
        DDU \3\..............................................        2.4
  Pound Rate \4\.............................................       45.1
    Plus per Piece Rate:                                                
        Basic................................................        1.3
        High Density.........................................        0.6
        Saturation...........................................        0.0
    Destination Entry Discount per Pound:                               
        BMC..................................................        6.2
        SCF..................................................        8.8
        DDU \3\..............................................       11.4
------------------------------------------------------------------------

Schedule 321.5 Notes

    \1\ A fee of $85.00 must be paid each 12-month period for each 
bulk mailing permit.
    \2\ Rate applies to letter-size automation mail presorted to 
routes specified by the Postal Service.
    \3\ Applies only to enhanced carrier route mail.
    \4\ Mailer pays either the minimum piece rate or the pound rate, 
whichever is higher.

Periodicals Rate Schedule 423.2 Within County

Full Rates

------------------------------------------------------------------------
                                            Postage rate unit     Cents 
------------------------------------------------------------------------
Per Pound:                                                              
  General...............................  Pound................     12.6
  Delivery Office \1\...................  Pound................     11.6
Per Piece:                                                              
  Required Presort......................  Piece................      8.2
  Carrier Route Presort.................  Piece................      4.4
Per Piece Discounts:                                                    
  Delivery Office \2\...................  Piece................      0.3
  High Density \3\......................  Piece................      0.5
  Saturation............................  Piece................      0.7
  Automation Discounts for Automation                                   
   Compatible Mail \4\                                                  
    From Required:                                                      
        3-Digit Prebarcoded Letter Size.  Piece................      0.4
        5-Digit Prebarcoded Letter Size.  Piece................      1.7
        3/5 Prebarcoded Flats...........  Piece................     1.5 
------------------------------------------------------------------------
\1\ Applicable only to the pound charge of carrier route (including high
  density and saturation) presorted pieces to be delivered within the   
  delivery area of the originating post office.                         
\2\ Applicable only to carrier presorted pieces to be delivered within  
  the delivery area of the originating post office.                     
\3\ Applicable only to high density mail, deducted from carrier         
  presorted pieces.                                                     
\4\ For automation compatible pieces meeting applicable Postal Service  
  regulations.                                                          

Periodicals Rate Schedule 423.3 Publications of Authorized 
Nonprofit Organizations \10\

Full Rates \1\

------------------------------------------------------------------------
                                            Postage rate unit     Cents 
------------------------------------------------------------------------
Per Pound:                                                              
  Nonadvertising portion:...............  Pound................     14.2
  Advertising portion: \9\                                              
    Delivery Office \2\.................  Pound................     16.9
        SCF \3\.........................  Pound................     19.0
        1&2.............................  Pound................     21.4
        3...............................  Pound................     22.4
        4...............................  Pound................     25.1
        5...............................  Pound................     29.2
        6...............................  Pound................     33.6
        7...............................  Pound................     38.8
        8...............................  Pound................     43.2
Per Piece:                                                              
  Less Nonadvertising Factor of \4\.....  .....................      4.2
  Required Preparation \5\..............  Piece................     21.9
  Presorted to 3-digit city/5-digit.....  Piece................     17.4
  Presorted to Carrier Route............  Piece................     10.7
  Discounts:                                                            
    Prepared to Delivery Office \2\.....  Piece................      1.2
    Prepared to SCF \3\.................  Piece................      0.6
    High Density \6\....................  Piece................      0.7
    Saturation \7\......................  Piece................      2.1
  Automation Discounts for Automation                                   
   Compatible Mail: \8\                                                 
    From Required:                                                      
        Prebarcoded Letter Size.........  Piece................      3.0
        Prebarcoded Flats...............  Piece................      2.4
    From 3/5 Digit:                                                     
        3-Digit Prebarcoded Letter Size.  Piece................      2.3
        5-Digit Prebarcoded Letter Size.  Piece................      2.3
        Prebarcoded Flats...............  Piece................      2.4
------------------------------------------------------------------------

Schedule 423.3 Notes

    \1\ Charges are computed by adding the appropriate per-piece 
charge to the sum of the nonadvertising portion and the advertising 
portion, as applicable.
    \2\ Applies to carrier route (including high density and 
saturation) mail delivered within the delivery area of the 
originating post office.
    \3\ Applies to mail delivered within the SCF area of the 
originating SCF office.
    \4\ For postage calculation, multiply the proportion of 
nonadvertising content by this factor and subtract from the 
applicable piece rate.
    \5\ Mail presorted to 3-digit (other than 3-digit city), SCF, 
states, or mixed states.
    \6\ Applicable to high density mail, deducted from carrier route 
presort rate.
    \7\ Applicable to saturation mail, deducted from carrier route 
presort rate.
    \8\ For automation compatible mail meeting applicable Postal 
Service regulations.
    \9\ Not applicable to publications containing 10 percent or less 
advertising content.
    \10\ If qualified, nonprofit publications may use Within-County 
rates for applicable portions of a mailing.

Attachment B to the Decision of the Governors

Changes in the Domestic Mail Classification Schedule

Docket No. MC96-2
    Amend the Standard Mail Classification Schedule by Inserting the 
Italicized Text and Deleting the Text in Brackets, as Follows:
* * * * *
321.1  Single Piece Subclass
    321.11  Definition. The Single Piece subclass consists of Standard 
Mail weighing less than 16 ounces that is not mailed under sections 
321.2, 321.3, 321.4, 321.5 or 323.
* * * * *
321.2  Regular Subclass
    321.21  General. [Definition.] The Regular subclass consists of 
Standard

[[Page 42466]]

Mail weighing less than 16 ounces that is not mailed under sections 
321.1, 321.3, 321.4, 321.5 or 323. [, and that:

    a. Is prepared in a mailing of at least 200 addressed pieces or 
50 pounds of addressed pieces;
    b. Is presorted, marked, and presented as prescribed by the 
Postal Service; and
    c. Meets the machinability, addressing, and other preparation 
requirements prescribed by the Postal Service.]

    321.22  [Regular] Presort Rate Categories.
    321.221  General. The presort rate categories apply to Regular 
subclass mail that:
    a. Is prepared in a mailing of at least 200 addressed pieces or 50 
pounds of addressed pieces;
    b. Is presorted, marked, and presented as prescribed by the Postal 
Service; and
    c. Meets the machinability, addressing, and other preparation 
requirements prescribed by the Postal Service.
    321.222[1]  Basic [Sortation] Rate Categor[y]ies. The basic rate 
categories apply to presort rate category mail not mailed under section 
321.223. [Mailers must sort Regular subclass mail as prescribed by the 
Postal Service. Mail which is not presorted to three-digit or five-
digit ZIP Code areas or to carrier routes qualifies for the basic rates 
in Rate Schedule 321.2A.]

    {Ed. Note: Existing 321.222 is renumbered 321.232 with 
modifications}

    321.223  Three- and Five-Digit [Presort Level] Rate Categor[y]ies. 
The three- and five-digit [presort level] rate categor[y]ies appl[ies]y 
to presort rate category [Regular subclass] mail presorted to single or 
multiple three- and five-digit ZIP Code destinations[,] as prescribed 
by the Postal Service.

    {Ed. Note: Existing 321.23 is renumbered 321.24}
321.23  Automation Rate Categories
    321.231  General. The automation rate categories apply to Regular 
subclass mail that:
    a. Is prepared in a mailing of at least 200 addressed pieces or 50 
pounds of addressed pieces;
    b. Is presorted, marked, and presented as prescribed by the Postal 
Service;
    c. Bears a barcode representing not more than 11 digits (not 
including ``correction'' digits) as prescribed by the Postal Service;
    d. Meets the machinability, addressing, barcoding, and other 
preparation requirements prescribed by the Postal Service.
    [321.222] 321.232  Basic [Sortation, Pre-]Barcoded Rate Category. 
The basic [sortation, pre-]barcoded rate category applies to letter-
size automation rate category mail not mailed under section 321.233 or 
321.234. [mail mailed under section 321.21 which bears a barcode 
representing not more than 11 digits (not including ``correction'' 
digits) as prescribed by the Postal Service, and which meets the 
machinability, addressing, and barcoding specifications, and other 
preparation requirements prescribed by the Postal Service.]
    [321.224] 321.233  Three-Digit [Presort Level, Pre-]Barcoded Rate 
Category. The three-digit [presort level, pre-]barcoded rate category 
applies to letter-size automation rate category mail [mailed under 
section 321.21 which is] presorted to single or multiple three-digit 
ZIP Code destinations as prescribed by the Postal Service. [three 
digits, which bears a barcode representing not more than 11 digits (not 
including ``correction'' digits) as prescribed by the Postal Service, 
and which meets the machinability, addressing, and barcoding 
specifications and other preparation requirements prescribed by the 
Postal Service.]
    [321.225] 321.234  Five-Digit [Presort Level, Pre-]Barcoded Rate 
Category. The five-digit [presort level, pre-]barcoded rate category 
applies to letter-size automation rate category mail [mailed under 
section 321.21 which is] presorted to single or multiple five-digit ZIP 
Code destinations as prescribed by the Postal Service. [five digits, 
which bears a barcode representing not more than 11 digits (not 
including ``correction'' digits) as prescribed by the Postal Service, 
and which meets the machinability, addressing, and barcoding 
specifications and other preparation requirements prescribed by the 
Postal Service.]
    321.235  Basic Barcoded Flats Rate Category. The basic barcoded 
flats rate category applies to flat-size automation rate category mail 
not mailed under section 321.236.
    [321.226] 321.236  Three- and Five-Digit [Presort Level, Pre-
]Barcoded Flats Rate Category. The three- and five-digit [presort 
level, pre-]barcoded flats rate category applies to flat-size 
automation rate category mail [mailed under section 321.21 which is] 
presorted to single or multiple three- and five-digit ZIP Code 
destinations as prescribed by the Postal Service. [,which bears a 
barcode representing not more than 11 digits (not including 
``correction'' digits) as prescribed by the Postal Service, and which 
meets the machinability, addressing, and barcoding specifications and 
other preparation requirements prescribed by the Postal Service.]
    [321.23] 321.24  Destination Entry Discounts. Destination entry 
discounts apply to Regular subclass mail prepared as prescribed by the 
Postal Service and addressed for delivery within the service area of 
the BMC (or auxiliary service facility), or sectional center facility 
(SCF), at which it is entered, as defined by the Postal Service.
321.3  Enhanced Carrier Route Subclass
    321.31  Definition. The Enhanced Carrier Route subclass consists of 
Standard Mail weighing less than 16 ounces that is not mailed under 
section 321.1, 321.2, 321.4, 321.5 or 323, and that:

    a. Is prepared in a mailing of at least 200 addressed pieces or 
50 pounds of addressed pieces;
    b. Is prepared, marked, and presented as prescribed by the 
Postal Service;
    c. Is presorted to carrier routes as prescribed by the Postal 
Service;
    d. Is sequenced as prescribed by the Postal Service; and
    e. Meets the machinability, addressing, and other preparation 
requirements prescribed by the Postal Service.
* * * * *
321.4  Nonprofit Subclass
321.41  [Definition
    321.411]  General. The Nonprofit subclass consists of Standard Mail 
weighing less than 16 ounces that is not mailed under section 321.1, 
321.2, 321.3, 321.5 or 323, and that is [prepared in quantities of at 
least 50 pounds or 200 pieces, presorted and marked as prescribed by 
the Postal Service, and] mailed by authorized nonprofit organizations 
or associations of the following types:
    a. Religious, as defined in section 1009,
    b. Educational, as defined in section 1009,
    c. Scientific, as defined in section 1009,
    d. Philanthropic, as defined in section 1009,
    e. Agricultural, as defined in section 1009,
    f. Labor, as defined in section 1009,
    g. Veterans', as defined in section 1009,
    h. Fraternal, as defined in section 1009,
    i. Qualified political committees,
    j. State or local voting registration officials when making a 
mailing required or authorized by the National Voter Registration Act 
of 1993.
    321.411[2]  Qualified Political Committees. [Nonprofit 
Organizations and Associations. Nonprofit organizations or associations 
are

[[Page 42467]]

organizations or associations not organized for profit, none of the net 
income of which benefits any private stockholder or individual, and 
which meet the qualifications set forth below for each type of 
organization or association. The standard of primary purpose applies to 
each type of organization or association, except veterans' and 
fraternal. The standard of primary purpose requires that each type of 
organization or association be both organized and operated for the 
primary purpose. The following are the types of organizations or 
associations which may qualify as authorized nonprofit organizations or 
associations.
    a. Religious. A nonprofit organization whose primary purpose is one 
of the following:
    i. To conduct religious worship;
    ii. To support the religious activities of nonprofit organizations 
whose primary purpose is to conduct religious worship;
    iii. To perform instruction in, to disseminate information about, 
or otherwise to further the teaching of particular religious faiths or 
tenets.
    b. Educational. A nonprofit organization whose primary purpose is 
one of the following:
    i. The instruction or training of the individual for the purpose of 
improving or developing his capabilities;
    ii. The instruction of the public on subjects beneficial to the 
community. An organization may be educational even though it advocates 
a particular position or viewpoint so long as it presents a 
sufficiently full and fair exposition of the pertinent facts to permit 
an individual or the public to form an independent opinion or 
conclusion. On the other hand, an organization is not educational if 
its principal function is the mere presentation of unsupported opinion.
    c. Scientific. A nonprofit organization whose primary purpose is 
one of the following:
    i. To conduct research in the applied, pure or natural sciences;
    ii. To disseminate systematized technical information dealing with 
applied, pure or natural sciences.
    d. Philanthropic. A nonprofit organization primarily organized and 
operated for purposes beneficial to the public. Philanthropic 
organizations include, but are not limited to, organizations which are 
organized for:
    i. Relief of the poor and distressed or of the underprivileged;
    ii. Advancement of religion;
    iii. Advancement of education or science;
    iv. Erection or maintenance of public buildings, monuments, or 
works;
    v. Lessening of the burdens of government;
    vi. Promotion of social welfare by organizations designed to 
accomplish any of the above purposes or:
    (A) To lessen neighborhood tensions;
    (B) To eliminate prejudice and discrimination;
    (C) To defend human and civil rights secured by law; or
    (D) To combat community deterioration and juvenile delinquency.
    e. Agricultural. A nonprofit organization whose primary purpose is 
the betterment of the conditions of those engaged in agricultural 
pursuits, the improvement of the grade of their products, and the 
development of a higher degree of efficiency in agriculture. The 
organization may advance agricultural interests through educational 
activities; the holding of agricultural fairs; the collection and 
dissemination of information concerning cultivation of the soil and its 
fruits or the harvesting of marine resources; the rearing, feeding, and 
management of livestock, poultry, and bees, or other activities 
relating to agricultural interests. The term agricultural nonprofit 
organization also includes any nonprofit organization whose primary 
purpose is the collection and dissemination of information or materials 
relating to agricultural pursuits.
    f. Labor. A nonprofit organization whose primary purpose is the 
betterment of the conditions of workers. Labor organizations include, 
but are not limited to, organizations in which employees or workmen 
participate, whose primary purpose is to deal with employers concerning 
grievances, labor disputes, wages, hours of employment and working 
conditions.
    g. Veterans'. A nonprofit organization of veterans of the armed 
services of the United States, or an auxiliary unit or society of, or a 
trust or foundation for, any such post or organization.
    h. Fraternal. A nonprofit organization which meets all of the 
following criteria:
    i. Has as its primary purpose the fostering of brotherhood and 
mutual benefits among its members;
    ii. Is organized under a lodge or chapter system with a 
representative form of government;
    iii. Follows a ritualistic format; and
    iv. Is comprised of members who are elected to membership by vote 
of the members.
    i. Qualified political committees.] The term ``qualified political 
committee'' means a national or State committee of a political party, 
the Republican and Democratic Senatorial Campaign Committees, the 
Democratic National Congressional Committee, and the National 
Republican Congressional Committee:
    [i.]a. The term ``national committee'' means the organization 
which, by virtue of the bylaws of a political party, is responsible for 
the day-to-day operation of such political party at the national level; 
and
    [ii.]b. The term ``State committee'' means the organization which, 
by virtue of the bylaws of a political party, is responsible for the 
day-to-day operation of such political party at the State level.
    321.412[3] Limitation on Authorization. An organization authorized 
to mail at the nonprofit Standard rates for qualified nonprofit 
organizations may mail only its own matter at these rates. An 
organization may not delegate or lend the use of its permit to mail at 
special Standard rates to any other person, organization or 
association.
321.42  [Nonprofit] Presort Rate Categories
    321.421  General. The presort rate categories apply to Nonprofit 
subclass mail that:
    a. Is prepared in a mailing of at least 200 addressed pieces or 50 
pounds of addressed pieces;
    b. Is presorted, marked, and presented as prescribed by the Postal 
Service; and
    c. Meets the machinability, addressing, and other preparation 
requirements prescribed by the Postal Service.
    321.422[1]  Basic [Sortation] Rate Categories[y]. The basic rate 
categories apply to presort rate category mail not mailed under section 
321.423. [Mailers must sort Nonprofit subclass mail as prescribed by 
the Postal Service. Mail which is not presorted to three-digit or five-
digit ZIP Code areas or to carrier routes qualifies for the basic rates 
in Rate Schedule 321.4.]
    [321.422 Basic Sortation, ZIP + 4 Rate Category. The basic 
sortation, ZIP + 4 rate category applies to mail mailed under section 
321.421 which bears a proper ZIP + 4 code and which meets the 
machinability, address readability and other preparation requirements 
prescribed by the Postal Service.]

    [Ed. Note: Existing 321.423 is renumbered 321.432 with 
modifications]

    321.423[4]  Three- and Five-Digit [Presort Level] Rate 
Categories[y]. The three- and five-digit [presort level] rate 
categories[y] apply[ies] to presort rate category [Nonprofit subclass] 
mail [which is] presorted to single or multiple three-[digit or] and 
five-digit ZIP Code destinations [areas. The mail must be prepared in 
the manner] as prescribed by the Postal Service.

[[Page 42468]]

321.43  Automation Rate Categories
    321.431  General. The automation rate categories apply to Nonprofit 
subclass mail that:
    a. Is prepared in a mailing of at least 200 addressed pieces or 50 
pounds of addressed pieces;
    b. Is presorted, marked, and presented as prescribed by the Postal 
Service;
    c. Bears a barcode representing not more than 11 digits (not 
including ``correction'' digits) as prescribed by the Postal Service;
    d. Meets the machinability, addressing, barcoding, and other 
preparation requirements prescribed by the Postal Service.
    321.432[23]  Basic [Sortation, Pre-] Barcoded Rate Category. The 
basic [sortation, pre-]barcoded rate category applies to letter-size 
automation rate category mail not mailed under section 321.433 or 
321.434. [321.421 which bears a barcode representing not more than 11 
digits (not including ``correction'' digits) as prescribed by the 
Postal Service, and which meets the machinability, addressing, and 
barcoding specifications and other preparation requirements prescribed 
by the Postal Service.]
    [321.425  Three- and Five-Digit Presort Level, ZIP + 4 Rate 
Category. The three- and five-digit presort level, ZIP + 4 rate 
category applies to mail mailed under section 321.424 which bears a 
proper ZIP + 4 code and which meets the machinability, address 
readability and other preparation requirements prescribed by the Postal 
Service.]
    321.433[26]  Three-Digit [Presort Level, Pre-]Barcoded Rate 
Category. The three-digit [presort level, pre-]barcoded rate category 
applies to letter-size automation rate category mail [mailed under 
section 321.424 which is] presorted to single or multiple three-digit 
ZIP Code destinations [three digits, which bears a barcode representing 
not more than 11 digits (not including ``correction'' digits) as 
prescribed by the Postal Service, and which meets the machinability, 
addressing, and barcoding specifications and other preparation 
requirements] as prescribed by the Postal Service.
    321.434[27]  Five-Digit [Presort Level, Pre-]Barcoded Rate 
Category. The five-digit [presort level, pre-]barcoded rate category 
applies to letter-size automation rate category mail [mailed under 
section 321.424 which is] presorted to single or multiple five-digit 
ZIP Code destinations [five digits, which bears a barcode representing 
not more than 11 digits (not including ``correction'' digits) as 
prescribed by the Postal Service, and which meets the machinability, 
addressing, and barcoding specifications, and other preparation 
requirements] as prescribed by the Postal Service.
    [321.428  Carrier Route Presort Level Rate Category. The carrier 
route presort level rate category applies to Nonprofit subclass mail 
which is presorted to a carrier route, with at least 10 pieces to each 
carrier route. The mail must be prepared in the manner prescribed by 
the Postal Service.]
    321.435[29] Basic Barcoded [Pre-barcoded] Flats Rate Category. The 
basic barcoded flats rate category applies to flat-size automation rate 
category mail not mailed under section 321.436. [The pre-barcoded flats 
rate category applies to Nonprofit subclass flat size pieces which are 
properly prepared and presorted, bear a barcode as prescribed by the 
Postal Service, and meet the flats machinability and address 
readability specifications of the Postal Service. Such flats must be 
presented for mailing in a manner which does not require cancellation.]
    321.436 Three- and Five-Digit Barcoded Flats Rate Category. The 
three- and five-digit barcoded flats rate category applies to flat-size 
automation rate category mail presorted to single or multiple three- 
and five-digit ZIP Code destinations as prescribed by the Postal 
Service.
[321.43 Nonprofit Subclass Discounts
    321.431 Saturation Discount. The saturation discount applies to 
Nonprofit subclass mail presented in a carrier route presort mailing 
which is walk sequenced and which meets the saturation and preparation 
requirements prescribed by the Postal Service.
    321.432 125-Piece Walk-sequence Discount. The 125-piece walk-
sequence discount applies to Nonprofit subclass mail presented in a 
carrier route presort mailing which is walk sequenced and contains a 
minimum of 125 pieces per carrier route, and which meets the 
preparation requirements prescribed by the Postal Service.]
    321.44[33] Destination Entry Discounts. [The d]Destination entry 
discounts apply[ies] to Nonprofit subclass mail prepared as prescribed 
by the Postal Service and addressed [which is destined] for delivery 
within the service area of the BMC (or auxiliary service facility)[,] 
or sectional center facility (SCF)[, or destination delivery unit 
(DDU)] at which it is entered, as defined by the Postal Service.
321.5 Nonprofit Enhanced Carrier Route Subclass
    321.51 Definition. The Nonprofit Enhanced Carrier Route subclass 
consists of Standard Mail weighing less than 16 ounces that is not 
mailed under section 321.1, 321.2, 321.3, 321.4 or 323, that is mailed 
by authorized nonprofit organizations or associations (as defined in 
section 321.41) under the terms and limitations stated in section 
321.412, and that:
    a. Is prepared in a mailing of at least 200 addressed pieces or 50 
pounds of addressed pieces;
    b. Is prepared, marked, and presented as prescribed by the Postal 
Service;
    c. Is presorted to carrier routes as prescribed by the Postal 
Service;
    d. Is sequenced as prescribed by the Postal Service; and
    e. Meets the machinability, addressing, and other preparation 
requirements prescribed by the Postal Service.
    321.52 Basic Rate Category. The basic rate category applies to 
Nonprofit Enhanced Carrier Route subclass mail not mailed under section 
321.53, 321.54 or 321.55.
    321.53 Basic Pre-Barcoded Rate Category. The basic pre-barcoded 
rate category applies to letter-size Nonprofit Enhanced Carrier Route 
subclass mail which bears a barcode representing not more than 11 
digits (not including ``correction'' digits), as prescribed by the 
Postal Service, and which meets the machinability, addressing, and 
barcoding specifications and other preparation requirements prescribed 
by the Postal Service.
    321.54 High Density Rate Category. The high density rate category 
applies to Nonprofit Enhanced Carrier Route subclass mail presented in 
walk-sequence order and meeting the high density requirements 
prescribed by the Postal Service.
    321.55 Saturation Rate Category. The saturation rate category 
applies to Nonprofit Enhanced Carrier Route subclass mail presented in 
walk-sequence order and meeting the saturation requirements prescribed 
by the Postal Service.
    321.56 Destination Entry Discounts. Destination entry discounts 
apply to Nonprofit Enhanced Carrier Route subclass mail prepared as 
prescribed by the Postal Service and addressed for delivery within the 
service area of the BMC (or auxiliary service facility), sectional 
center facility (SCF), or destination delivery unit (DDU) at which it 
is entered, as defined by the Postal Service.
* * * * *

[[Page 42469]]

323.2 Library Subclass
* * * * *
    323.212 Definition of Nonprofit Organizations and Associations. 
Nonprofit organizations or associations are defined in section 1009. 
[organizations or associations not organized for profit, none of the 
net income of which benefits any private stockholder or individual, and 
which meet the qualifications set forth below for each type of 
organization or association. The standard of primary purpose applies to 
each type of organization or association, except veterans' and 
fraternal. The standard of primary purposes requires that each type of 
organization or association be both organized and operated for the 
primary purpose. The following are the types of organizations or 
associations which may qualify as authorized nonprofit organizations or 
associations:
    a. Religious. A nonprofit organization whose primary purpose is one 
of the following:
    i. To conduct religious worship;
    ii. To support the religious activities of nonprofit organizations 
whose primary purpose is to conduct religious worship;
    iii. To perform instruction in, to disseminate information about, 
or otherwise to further the teaching of particular religious faiths or 
tenets.
    b. Educational. A nonprofit organization whose primary purpose is 
one of the following:
    i. The instruction or training of the individual for the purpose of 
improving or developing his capabilities;
    ii. The instruction of the public on subjects beneficial to the 
community.
    An organization may be educational even though it advocates a 
particular position or viewpoint so long as it presents a sufficiently 
full and fair exposition of the pertinent facts to permit an individual 
or the public to form an independent opinion or conclusion. On the 
other hand, an organization is not educational if its principal 
function is the mere presentation of unsupported opinion.
    c. Scientific. A nonprofit organization whose primary purpose is 
one of the following:
    i. To conduct research in the applied, pure or natural sciences;
    ii. To disseminate systematized technical information dealing with 
applied, pure or natural sciences.
    d. Philanthropic. A nonprofit organization primarily organized and 
operated for purposes beneficial to the public. Philanthropic 
organizations include, but are not limited to, organizations which are 
organized for:
    i. Relief of the poor and distressed or of the underprivileged;
    ii. Advancement of religion;
    iii. Advancement of education or science;
    iv. Erection or maintenance of public buildings, monuments, or 
works;
    v. Lessening of the burdens of government;
    vi. Promotion of social welfare by organizations designed to 
accomplish any of the above purposes or:
    (A) To lessen neighborhood tensions;
    (B) To eliminate prejudice and discrimination;
    (C) To defend human and civil rights secured by law; or
    (D) To combat community deterioration and juvenile delinquency.
    e. Agricultural. A nonprofit organization whose primary purpose is 
the betterment of the conditions of those engaged in agricultural 
pursuits, the improvement of the grade of their products, and the 
development of a higher degree of efficiency in agriculture. The 
organization may advance agricultural interests through educational 
activities; the holding of agricultural fairs; the collection and 
dissemination of information concerning cultivation of the soil and its 
fruits or the harvesting of marine resources; the rearing, feeding, and 
management of livestock, poultry, and bees, or other activities 
relating to agricultural interests. The term agricultural nonprofit 
organization also includes any nonprofit organization whose primary 
purpose is the collection and dissemination of information or materials 
relating to agricultural pursuits.
    f. Labor. A nonprofit organization whose primary purpose is the 
betterment of the conditions of workers. Labor organizations include, 
but are not limited to, organizations in which employees or workmen 
participate, whose primary purpose is to deal with employers concerning 
grievances, labor disputes, wages, hours of employment and working 
conditions.
    g. Veterans'. A nonprofit organization of veterans of the armed 
services of the United States, or an auxiliary unit or society of, or a 
trust or foundation for, any such post or organization.
    h. Fraternal. A nonprofit organization which meets all of the 
following criteria:
    i. Has as its primary purpose the fostering of brotherhood and 
mutual benefits among its members;
    ii. Is organized under a lodge or chapter system with a 
representative form of government;
    iii. Follows a ritualistic format; and
    iv. Is comprised of members who are elected to membership by vote 
of the members.]
* * * * *
330 Physical Limitations
331 Size
    Standard Mail may not exceed 108 inches in length and girth 
combined. Additional size limitations apply to individual Standard Mail 
subclasses. The maximum size for mail presorted to carrier route in the 
Enhanced Carrier Route and Nonprofit Enhanced Carrier Route subclasses 
is 14 inches in length, 11.75 inches in width, and 0.75 inch in 
thickness. For merchandise samples mailed with detached address cards, 
the carrier route maximum dimensions apply to the detached address 
cards and not to the samples.
* * * * *
340  Postage and Preparation
341  Postage
    Postage must be paid as set forth in section 3000. When the postage 
computed at a Single Piece, Regular, Enhanced Carrier Route, [or] 
Nonprofit or Nonprofit Enhanced Carrier Route Standard rate is higher 
than the rate prescribed in any of the Standard subclasses listed in 
322 or 323 for which the piece also qualifies (or would qualify, except 
for weight), the piece is eligible for the applicable lower rate. All 
mail mailed at a bulk or presort rate must have postage paid in a 
manner not requiring cancellation.
* * * * *
344  Attachments and Enclosures
    344.1  Single Piece, Regular, Enhanced Carrier Route, [and] 
Nonprofit and Nonprofit Enhanced Carrier Route Subclasses (section 321)
* * * * *
    344.21  General. First-Class Mail or Standard Mail from any of the 
subclasses listed in section 321 (Single Piece, Regular, Enhanced 
Carrier Route, [or] Nonprofit or Nonprofit Enhanced Carrier Route) may 
be attached to or enclosed in Standard Mail mailed under sections 322 
and 323. The piece must be marked as prescribed by the Postal Service. 
Except as provided in sections 344.22 and 344.23, additional postage 
must be paid for the attachment or enclosure as if it had been mailed 
separately. Otherwise, the entire combined piece is subject to the 
First-Class or section 321 Standard rate for which it qualifies (unless 
the rate applicable to the host piece is higher), or, if a combined 
piece with a section 321 Standard Mail attachment or

[[Page 42470]]

enclosure weighs 16 ounces or more, the piece is subject to the Parcel 
Post rate for which it qualifies.
* * * * *
    353.1  Single Piece, Regular, Enhanced Carrier Route, [and] 
Nonprofit and Nonprofit Enhanced Carrier Route Subclasses (section 321)
    Undeliverable-as-addressed Standard Mail mailed under section 321 
will be returned on request of the mailer, or forwarded and returned on 
request of the mailer. Undeliverable-as-addressed combined First-Class 
and Standard pieces will be returned as prescribed by the Postal 
Service. The Single Piece Standard rate is charged for each piece 
receiving return only service. Charges for forwarding-and-return 
service are assessed only on those pieces which cannot be forwarded and 
are returned. The charge for those returned pieces is the appropriate 
Single Piece Standard rate for the piece plus that rate multiplied by a 
factor equal to the number of section 321 Standard pieces nationwide 
that are successfully forwarded for every one piece that cannot be 
forwarded and must be returned.
* * * * *
360  Ancillary Services
361  All Subclasses
    All Standard Mail will receive the following services upon payment 
of the appropriate fees:

------------------------------------------------------------------------
                   Service                             Schedule         
------------------------------------------------------------------------
a. Address correction.......................  SS-1                      
b. Certificates of mailing indicating that a  SS-4                      
 specified number of pieces has been mailed.                            
------------------------------------------------------------------------

    Certificates of mailing are not available for Regular, Enhanced 
Carrier Route, [and] Nonprofit and Nonprofit Enhanced Carrier Route 
subclass mail when postage is paid by permit imprint.
* * * * *
370  Rates and Fees
    The rates and fees for Standard Mail are set forth as follows:

------------------------------------------------------------------------
                                                       Schedule         
------------------------------------------------------------------------
a. Single Piece subclass....................  321.1                     
b. Regular subclass.........................  321.2                     
c. Enhanced Carrier Route subclass..........  321.3                     
d. Nonprofit subclass.......................  321.4                     
e. Nonprofit Enhanced Carrier Route subclass  321.5                     
f[e]. Parcel Post subclass                                              
  Basic.....................................  322.1A                    
  Destination BMC...........................  322.1B                    
g[f]. Bound Printed Matter subclass                                     
  Single Piece..............................  322.3A                    
  Bulk and Carrier Route....................  322.3B                    
h[g]. Special subclass......................  323.1                     
i[h]. Library subclass......................  323.2                     
j[i]. Fees..................................  1000                      
------------------------------------------------------------------------

380  Authorizations and Licenses
    381  Regular, Enhanced Carrier Route, [and] Nonprofit and Nonprofit 
Enhanced Carrier Route Subclasses
    A mailing fee as set forth in Rate Schedule 1000 must be paid once 
each year by mailers of Regular, Enhanced Carrier Route, [and] 
Nonprofit and Nonprofit Enhanced Carrier Route subclass mail.
* * * * *
    Amend the Periodicals Classification Schedule by Inserting the 
Italicized Text and Deleting the Text in Brackets, as Follows:
423  Preferred Rate Periodicals
* * * * *
423.3  Nonprofit Subclass
    [423.31  Definition.] Nonprofit mail is Preferred Rate Periodicals 
class mail entered by authorized nonprofit organizations or 
associations of the following types:
    a. Religious, as defined in section 1009,
    b. Educational, as defined in section 1009,
    c. Scientific, as defined in section 1009,
    d. Philanthropic, as defined in section 1009,
    e. Agricultural, as defined in section 1009,
    f. Labor, as defined in section 1009,
    g. Veterans', as defined in section 1009,
    h. Fraternal, as defined in section 1009, and
    i. Associations of rural electric cooperatives,
    j. One publication, which contains no advertising (except 
advertising of the publisher) published by the official highway or 
development agency of a state,
    k. Program announcements or guides published by an educational 
radio or television agency of a state or political subdivision thereof 
or by a nonprofit educational radio or television station,
    l. One conservation publication published by an agency of a state 
which is responsible for management and conservation of the fish or 
wildlife resources of such state.
    [423.32  Definitions of Nonprofit Organizations and Associations. 
Nonprofit organizations or associations are organizations or 
associations not organized for profit, none of the net income of which 
benefits any private stockholder or individual, and which meet the 
qualifications set forth below for each type of organization or 
association. The standard of primary purpose applies to organizations 
listed under section 423.31a through f. The standard of primary purpose 
requires that each type of organization or association be both 
organized and operated for the primary purpose.
    a. Religious. A nonprofit organization whose primary purpose is one 
of the following:
    i. To conduct religious worship;
    ii. To support the religious activities of nonprofit organizations 
whose primary purpose is to conduct religious worship;
    iii. To perform instruction in, to disseminate information about, 
or otherwise to further the teaching of particular religious faiths or 
tenets.
    b. Educational. A nonprofit organization whose primary purpose is 
one of the following:
    i. The instruction or training of the individual for the purpose of 
improving or developing his capabilities;
    ii. The instruction of the public on subjects beneficial to the 
community.
    An organization may be educational even though it advocates a 
particular position or viewpoint so long as it presents a sufficiently 
full and fair exposition of the pertinent facts to permit an individual 
or the public to form an independent opinion or conclusion. On the 
other hand, an organization is not educational if its principal 
function is the mere presentation of unsupported opinion.
    c. Scientific. A nonprofit organization whose primary purpose is 
one of the following:
    i. To conduct research in the applied, pure or natural sciences;
    ii. To disseminate systematized technical information dealing with 
applied, pure or natural sciences.
    d. Philanthropic. A nonprofit organization primarily organized and 
operated for purposes beneficial to the public. Philanthropic 
organizations include, but are not limited to, organizations which are 
organized for:
    i. Relief of the poor and distressed or of the underprivileged;
    ii. Advancement of religion;
    iii. Advancement of education or science;
    iv. Erection or maintenance of public buildings, monuments, or 
works;
    v. Lessening of the burdens of government;

[[Page 42471]]

    vi. Promotion of social welfare by organizations designed to 
accomplish any of the above purposes or;
    (a) To lessen neighborhood tensions;
    (b) To eliminate prejudice and discrimination;
    (c) To defend human and civil rights secured by law; or
    (d) To combat community deterioration and juvenile delinquency.
    e. Agricultural. A nonprofit organization whose primary purpose is 
the betterment of the conditions of those engaged in agricultural 
pursuits, the improvement of the grade of their products, and the 
development of a higher degree of efficiency in agriculture. The 
organization may advance agricultural interests through educational 
activities; the holding of agricultural fairs; the collection and 
dissemination of information concerning cultivation of the soil and its 
fruits or the harvesting of marine resources; the rearing, feeding, and 
management of livestock, poultry, and bees, or other activities 
relating to agricultural interests. The term agricultural nonprofit 
organization also includes any nonprofit organization whose primary 
purpose is the collection and dissemination of information or materials 
relating to agricultural pursuits.
    f. Labor. A nonprofit organization whose primary purpose is the 
betterment of the conditions of workers. Labor organizations include, 
but are not limited to, organizations in which employees or workmen 
participate, whose primary purpose is to deal with employers concerning 
grievances, labor disputes, wages, hours of employment and working 
conditions.
    g. Veterans'. A nonprofit organization of veterans of the armed 
services of the United States, or an auxiliary unit or society of, or a 
trust or foundation for, any such post or organization.
    h. Fraternal. A nonprofit organization which meets all of the 
following criteria:
    i. Has as its primary purpose the fostering of brotherhood and 
mutual benefits among its members;
    ii. Is organized under a lodge or chapter system with a 
representative form of government;
    iii. Follows a ritualistic format; and
    iv. Is comprised of members who are elected to membership by vote 
of the members.]
423.4  Classroom Subclass
    Classroom mail is [of] Preferred Rate Periodicals class mail 
which[,] consists of religious, educational, or scientific publications 
designed specifically for use in school classrooms or religious 
instruction classes.
* * * * *

423.6  Preferred Rate Pound Rates

    For Preferred Rate Periodicals entered under sections 423.3, 423.4 
and 423.5, an unzoned pound rate applies to the nonadvertising portion. 
A zoned pound rate applies to the advertising portion and may be 
reduced by applicable destination entry discounts. The pound rate 
postage is the sum of the nonadvertising portion charge and the 
advertising portion charge. For Preferred Rate Periodicals entered 
under section 423.2, one pound rate applies to the pieces presorted to 
carrier route to be delivered within the delivery area of the 
originating post office, and another pound rate applies to all other 
pieces.

423.7  Preferred Rate Piece Rates

    423.71  Basic Rate Category. The basic rate category applies to all 
Preferred Rate Periodicals not mailed under section 423.72 or 423.73.
    423.72  Three-Digit City and Five-Digit Rate Category. The rates 
for this category apply to Preferred Rate Periodicals entered under 
sections 423.3, 423.4. or 423.5 that are presorted to three-digit 
cities and five-digit ZIP Code destinations as prescribed by the Postal 
Service.
    423.73  Carrier Route Rate Category. The carrier route rate 
category applies to Preferred Rate Periodicals presorted to carrier 
routes as prescribed by the Postal Service.
[423.6  Preferred Rate Discounts
    423.61  Destination Entry Discounts. Copies of any Preferred Rate 
Periodicals class mail which are destined for delivery within the 
destination sectional center facility (SCF) area or the destination 
delivery unit (DDU) area in which they are entered, as defined by the 
Postal Service, qualify for the applicable discount as set forth in 
Rate Schedules 423.2, 423.3, and 423.4.
    423.62  ZIP + 4 and Pre-barcoded Letter Discounts. Copies of any 
automation compatible Preferred Rate Periodicals class mail which bear 
a proper ZIP + 4 code, or which bear a barcode representing not more 
than 11 digits (not including ``correction'' digits) as prescribed by 
the Postal Service, and which meet the machinability, addressing, and 
barcoding specifications and other preparation requirements prescribed 
by the Postal Service qualify for the applicable ZIP + 4 or pre-
barcoding discounts as set forth in Rate Schedules 423.2, 423.3, and 
423.4.
    423.63  125-piece Walk-sequence Discount. Copies of Preferred Rate 
Periodicals class mail presented in mailings which are walk sequenced 
and contain a minimum of 125 pieces per carrier route and which meet 
the preparation requirements prescribed by the Postal Service are 
eligible for the applicable discount set forth in Rate Schedules 423.2, 
423.3, and 423.4.
    423.64  Saturation Discount. Saturation Preferred Rate Periodicals 
class mail presented in mailings which are walk sequenced and which 
meet the saturation and preparation requirements prescribed by the 
Postal Service qualifies for the applicable discount set forth in Rate 
Schedules 423.2, 423.3, and 423.4.
    423.65  Pre-barcoded Flats Discounts. Pre-barcoded Preferred Rate 
Periodicals class flats which are properly prepared and presorted, 
which bear a barcode as prescribed by the Postal Service, and which 
meet the flats machinability and address readability specifications of 
the Postal Service, are eligible for the applicable discounts for pre-
barcoded flats set forth in Rate Schedules 423.2, 423.3, and 423.4.]

423.8  Preferred Rate Discounts

    423.81  Barcoded Letter Discounts. Barcoded letter discounts apply 
to letter size Preferred Rate Periodicals mailed under sections 423.71 
and 423.72 which bear a barcode representing not more than 11 digits 
(not including ``correction'' digits) as prescribed by the Postal 
Service, and which meet the machinability, addressing, and barcoding 
specifications and other preparation requirements prescribed by the 
Postal Service.
    423.82  Barcoded Flats Discounts. Barcoded flats discounts apply to 
flat size Preferred Rate Periodicals mailed under sections 423.71 and 
423.72 which bear a barcode representing not more than 11 digits (not 
including ``correction'' digits) as prescribed by the Postal Service, 
and meet the flats machinability, addressing, and barcoding 
specifications and other preparation requirements prescribed by the 
Postal Service.
    423.83  High Density Discount. The high density discount applies to 
Preferred Rate Periodicals mailed under section 423.73, presented in 
walk sequence order, and meeting the high density and preparation 
requirements prescribed by the Postal Service.
    423.84  Saturation Discount. The saturation discount applies to 
Preferred Rate Periodicals mailed under section 423.73, presented in 
walk-sequence order, and meeting the saturation and preparation 
requirements prescribed by the Postal Service.

[[Page 42472]]

    423.85  Destination Entry Discounts. Destination entry discounts 
apply to Preferred Rate Periodicals which are destined for delivery 
within the service area of the destination sectional center facility 
(SCF) or the destination delivery unit (DDU) in which they are entered, 
as defined by the Postal Service. The DDU discount only applies to 
Carrier Route rate category mail; the SCF discount is not available for 
mail entered under section 423.2.
    423.86  Nonadvertising Discount. The nonadvertising discount 
applies to Preferred Rate Periodicals entered under sections 423.3, 
423.4, and 423.5 and is determined by multiplying the proportion of 
nonadvertising content by the discount factor set forth in Rate 
Schedules 421, 423.3 or 423.4 and subtracting that amount from the 
applicable piece rate.
* * * * *
    Amend General Definitions, Terms and Conditions by Inserting the 
Following New Section 1009:

1009  Nonprofit Organizations and Associations

    Nonprofit organizations or associations are organizations or 
associations not organized for profit, none of the net income of which 
benefits any private stockholder or individual, and which meet the 
qualifications set forth below for each type of organization or 
association. The standard of primary purpose applies to each type of 
organization or association, except veterans' and fraternal. The 
standard of primary purpose requires that each type of organization or 
association be both organized and operated for the primary purpose. The 
following are the types of organizations or associations which may 
qualify as authorized nonprofit organizations or associations.
    a. Religious. A nonprofit organization whose primary purpose is one 
of the following:
    i. To conduct religious worship;
    ii. To support the religious activities of nonprofit organizations 
whose primary purpose is to conduct religious worship;
    iii. To perform instruction in, to disseminate information about, 
or otherwise to further the teaching of particular religious faiths or 
tenets.
    b. Educational. A nonprofit organization whose primary purpose is 
one of the following:
    i. The instruction or training of the individual for the purpose of 
improving or developing his capabilities;
    ii. The instruction of the public on subjects beneficial to the 
community.
    An organization may be educational even though it advocates a 
particular position or viewpoint so long as it presents a sufficiently 
full and fair exposition of the pertinent facts to permit an individual 
or the public to form an independent opinion or conclusion. On the 
other hand, an organization is not educational if its principal 
function is the mere presentation of unsupported opinion.
    c. Scientific. A nonprofit organization whose primary purpose is 
one of the following:
    i. To conduct research in the applied, pure or natural sciences;
    ii. To disseminate systematized technical information dealing with 
applied, pure or natural sciences.
    d. Philanthropic. A nonprofit organization primarily organized and 
operated for purposes beneficial to the public. Philanthropic 
organizations include, but are not limited to, organizations which are 
organized for:
    i. Relief of the poor and distressed or of the underprivileged;
    ii. Advancement of religion;
    iii. Advancement of education or science;
    iv. Erection or maintenance of public buildings, monuments, or 
works;
    v. Lessening of the burdens of government;
    vi. Promotion of social welfare by organizations designed to 
accomplish any of the above purposes or:
    (A) To lessen neighborhood tensions;
    (B) To eliminate prejudice and discrimination;
    (C) To defend human and civil rights secured by law; or
    (D) To combat community deterioration and juvenile delinquency.
    e. Agricultural. A nonprofit organization whose primary purpose is 
the betterment of the conditions of those engaged in agricultural 
pursuits, the improvement of the grade of their products, and the 
development of a higher degree of efficiency in agriculture. The 
organization may advance agricultural interests through educational 
activities; the holding of agricultural fairs; the collection and 
dissemination of information concerning cultivation of the soil and its 
fruits or the harvesting of marine resources; the rearing, feeding, and 
management of livestock, poultry, and bees, or other activities 
relating to agricultural interests. The term agricultural nonprofit 
organization also includes any nonprofit organization whose primary 
purpose is the collection and dissemination of information or materials 
relating to agricultural pursuits.
    f. Labor. A nonprofit organization whose primary purpose is the 
betterment of the conditions of workers. Labor organizations include, 
but are not limited to, organizations in which employees or workmen 
participate, whose primary purpose is to deal with employers concerning 
grievances, labor disputes, wages, hours of employment and working 
conditions.
    g. Veterans'. A nonprofit organization of veterans of the armed 
services of the United States, or an auxiliary unit or society of, or a 
trust or foundation for, any such post or organization.
    h. Fraternal. A nonprofit organization which meets all of the 
following criteria:
    i. Has as its primary purpose the fostering of brotherhood and 
mutual benefits among its members;
    ii. Is organized under a lodge or chapter system with a 
representative form of government;
    iii. Follows a ritualistic format; and
    iv. Is comprised of members who are elected to membership by vote 
of the members.

[END]

Attachment One to Resolution No. 96-4

Phasing Schedules Steps 4, 5, and 6

Phasing Schedule (Rate Schedule 321.4A)

                                     Standard Nonprofit--Presort Categories                                     
                                                     [Cents]                                                    
----------------------------------------------------------------------------------------------------------------
                                                                              Step 4       Step 5       Step 6  
----------------------------------------------------------------------------------------------------------------
Letter Size:                                                                                                    
    Piece Rate:                                                                                                 
        Basic............................................................         13.2         13.5         13.8
        3/5-Digit........................................................         11.4         11.7         12.0
    Destination Entry Discount per Piece:                                                                       
        BMC..............................................................          1.3          1.3          1.3

[[Page 42473]]

                                                                                                                
        SCF..............................................................          1.8          1.8          1.8
Non-Letter Size:                                                                                                
    Piece Rate:                                                                                                 
        Minimum per Piece:                                                                                      
            Basic........................................................         19.5         19.8         20.1
            3/5-Digit....................................................          N/A          N/A         14.9
        Destination Entry Discount per Piece:                                                                   
            BMC..........................................................          1.3          1.3          1.3
            SCF..........................................................          1.8          1.8          1.8
    Pound Rate:                                                                                                 
            Basic........................................................         45.5         47.0         48.4
            3/5-Digit....................................................          N/A          N/A         48.4
        Plus per Piece Rate:                                                                                    
            Basic........................................................         10.0         10.0         10.0
            3/5-Digit....................................................          N/A          N/A          4.8
        Destination Entry Discount per Pound:                                                                   
            BMC..........................................................          6.2          6.2          6.2
            SCF..........................................................          8.8          8.8          8.8
----------------------------------------------------------------------------------------------------------------



Phasing Schedule (Rate Schedule 321.4B)

                                    Standard Nonprofit--Automation Categories                                   
                                                     [Cents]                                                    
----------------------------------------------------------------------------------------------------------------
                                                                              Step 4       Step 5       Step 6  
----------------------------------------------------------------------------------------------------------------
Letter Size:                                                                                                    
    Piece Rate:                                                                                                 
        Basic Letter.....................................................          9.9         10.2         10.5
        3-Digit Letter...................................................          9.5          9.8         10.1
        5-Digit Letter...................................................          8.2          8.5          8.8
    Destination Entry Discount per Piece:                                                                       
        BMC..............................................................          1.3          1.3          1.3
        SCF..............................................................          1.8          1.8          1.8
Flat Size:                                                                                                      
    Piece Rate:                                                                                                 
        Minimum per Piece:                                                                                      
            Basic Flat...................................................         17.1         17.4         17.7
            3/5-Digit Flat...............................................          N/A          N/A         12.5
        Destination Entry Discount per Piece:                                                                   
            BMC..........................................................          1.3          1.3          1.3
            SCF..........................................................          1.8          1.8          1.8
    Pound Rate:                                                                                                 
            Basic Flat...................................................         45.5         47.0         48.4
            3/5-Digit Flat...............................................          N/A          N/A         48.4
        Plus per Piece Rate:                                                                                    
            Basic Flat...................................................          7.6          7.6          7.6
            3/5-Digit Flat...............................................          N/A          N/A          2.4
        Destination Entry Discount per Pound:                                                                   
            BMC..........................................................          6.2          6.2          6.2
            SCF..........................................................          8.8          8.8          8.8
----------------------------------------------------------------------------------------------------------------

Phasing Schedule (Rate Schedule 321.5)

                                    Standard Nonprofit Enhanced Carrier Route                                   
                                                     [Cents]                                                    
----------------------------------------------------------------------------------------------------------------
                                                                              Step 4       Step 5       Step 6  
----------------------------------------------------------------------------------------------------------------
Letter Size:                                                                                                    
    Piece Rate:                                                                                                 
        Basic............................................................          8.7          9.3          9.9
        Basic Automated Letter...........................................          7.9          8.2          8.5
        High-Density.....................................................          8.1          8.7          9.3
        Saturation.......................................................          7.5          8.1          8.7

[[Page 42474]]

                                                                                                                
    Destination Entry Discount per Piece:                                                                       
        BMC..............................................................          1.3          1.3          1.3
        SCF..............................................................          1.8          1.8          1.8
        DDU..............................................................          2.4          2.4          2.4
Non-Letter Size:                                                                                                
    Piece Rate:                                                                                                 
        Minimum per Piece:                                                                                      
            Basic........................................................          N/A          N/A         10.7
            High Density.................................................          N/A          N/A         10.0
            Saturation...................................................          N/A          N/A          9.4
        Destination Entry Discount per Piece:                                                                   
            BMC..........................................................          N/A          N/A          1.3
            SCF..........................................................          N/A          N/A          1.8
            DDU..........................................................          N/A          N/A          2.4
    Pound Rate:                                                                    N/A          N/A         45.1
        Plus per Piece Rate:                                                                                    
            Basic........................................................          N/A          N/A          1.3
            High Density.................................................          N/A          N/A          0.6
            Saturation...................................................          N/A          N/A          0.0
        Destination Entry Discount per Pound:                                                                   
            BMC..........................................................          N/A          N/A          6.2
            SCF..........................................................          N/A          N/A          8.8
            DDU..........................................................          N/A          N/A         11.4
----------------------------------------------------------------------------------------------------------------



Phasing Schedule (Rate Schedule 323.2)

                                           Standard Mail--Library Rate                                          
                                                     [Cents]                                                    
----------------------------------------------------------------------------------------------------------------
                                                                              Step 4       Step 5       Step 6  
----------------------------------------------------------------------------------------------------------------
First Pound..............................................................          112          112          112
Each Additional Pound through 7 pounds...................................           41           41           42
Each Additional Pound over 7 pounds......................................           22           22           22
----------------------------------------------------------------------------------------------------------------

Phasing Schedule Periodicals Rate Schedule 423.2 Within County

----------------------------------------------------------------------------------------------------------------
                                                                              Step 4       Step 5       Step 6  
                                                 Postage rate unit           (cents)      (cents)      (cents)  
----------------------------------------------------------------------------------------------------------------
Per Pound:                                                                                                      
    General.............................  Pound..........................         12.2         12.2         12.6
    Delivery Office.....................  Pound..........................         11.2         11.2         11.6
Per Piece:                                                                                                      
    Required Presort....................  Piece..........................          8.1          8.2          8.2
    Carrier Route Presort...............  Piece..........................          4.3          4.4          4.4
Per Piece Discounts:                                                                                            
    Delivery Office.....................  Piece..........................          0.3          0.3          0.3
    High Density........................  Piece..........................          0.5          0.5          0.5
    Saturation..........................  Piece..........................          0.7          0.7          0.7
    Automation Discounts for Automation                                                                         
     Compatible Mail:                                                                                           
        From Required:                                                                                          
            3-Digit Prebarcoded Letter    Piece..........................          0.4          0.4          0.4
             Size.                                                                                              
            5-Digit Prebarcoded Letter    Piece..........................          1.7          1.7          1.7
             Size.                                                                                              
            3/5 Prebarcoded Flats.......  Piece..........................          1.5          1.5          1.5
----------------------------------------------------------------------------------------------------------------

Phasing Schedule Periodicals Rate Schedule 423.3 Publications of 
Authorized Nonprofit Organizations

[[Page 42475]]



----------------------------------------------------------------------------------------------------------------
                                                                              Step 4       Step 5       Step 6  
                                                 Postage rate unit           (cents)      (cents)      (cents)  
----------------------------------------------------------------------------------------------------------------
Per Pound:                                                                                                      
    Nonadvertising portion..............  Pound..........................         13.8         14.2         14.2
    Advertising portion:                                                                                        
        Delivery Office.................  Pound..........................         16.9         16.9         16.9
            SCF.........................  Pound..........................         19.0         19.0         19.0
            1&2.........................  Pound..........................         21.4         21.4         21.4
            3...........................  Pound..........................         22.4         22.4         22.4
            4...........................  Pound..........................         25.1         25.1         25.1
            5...........................  Pound..........................         29.2         29.2         29.2
            6...........................  Pound..........................         33.6         33.6         33.6
            7...........................  Pound..........................         38.8         38.8         38.8
            8...........................  Pound..........................         43.2         43.2         43.2
Per Piece:                                                                                                      
    Less Nonadvertising Factor of.......  ...............................          4.2          4.2          4.2
    Required Preparation................  Piece..........................         21.6         21.7         21.9
    Presorted to 3-digit city/5-digit...  Piece..........................         17.1         17.2         17.4
    Presorted to Carrier Route..........  Piece..........................         10.4         10.5         10.7
    Discounts:                                                                                                  
        Prepared to Delivery Office.....  Piece..........................          1.2          1.2          1.2
        Prepared to SCF.................  Piece..........................          0.6          0.6          0.6
        High Density....................  Piece..........................          0.7          0.7          0.7
        Saturation......................  Piece..........................          2.1          2.1          2.1
    Automation Discounts for Automation                                                                         
     Compatible Mail:                                                                                           
        From Required:                                                                                          
            Prebarcoded Letter Size.....  Piece..........................          3.0          3.0          3.0
            Prebarcoded Flats...........  Piece..........................          2.4          2.4          2.4
        From 3/5 Digit:                                                                                         
            3-Digit Prebarcoded Letter    Piece..........................          2.3          2.3          2.3
             Size.                                                                                              
            5-Digit Prebarcoded Letter    Piece..........................          2.3          2.3          2.3
             Size.                                                                                              
            Prebarcoded Flats...........  Piece..........................          2.4          2.4          2.4
----------------------------------------------------------------------------------------------------------------

Phasing Schedule Periodicals Rate Schedule 423.4 Classroom Publications

----------------------------------------------------------------------------------------------------------------
                                                                              Step 4       Step 5       Step 6  
                                                 Postage rate unit           (cents)      (cents)      (cents)  
----------------------------------------------------------------------------------------------------------------
Per Pound:                                                                                                      
    Nonadvertising portion:.............  Pound..........................         11.0         11.1         11.3
    Advertising portion:                                                                                        
        Delivery Office.................  Pound..........................         18.0         18.0         18.0
            SCF.........................  Pound..........................         19.1         19.1         19.1
            1&2.........................  Pound..........................         21.2         21.2         21.2
            3...........................  Pound..........................         22.3         22.3         22.3
            4...........................  Pound..........................         25.0         25.0         25.0
            5...........................  Pound..........................         29.2         29.2         29.2
            6...........................  Pound..........................         33.5         33.5         33.5
            7...........................  Pound..........................         38.8         38.8         38.8
            8...........................  Pound..........................         43.2         43.2         43.2
Per Piece:                                                                                                      
    Less Nonadvertising Factor of.......  ...............................          3.5          3.5          3.5
    Required Preparation................  Piece..........................         16.9         17.0         17.1
    Presorted to 3-digit city/5-digit...  Piece..........................         12.6         12.7         12.8
    Presorted to Carrier Route..........  Piece..........................          8.8          8.9          9.0
    Discounts:                                                                                                  
        Prepared to Delivery Office.....  Piece..........................          0.5          0.5          0.5
        Prepared to SCF.................  Piece..........................          0.3          0.3          0.3
        High Density....................  Piece..........................          0.2          0.2          0.2
        Saturation......................  Piece..........................          0.7          0.7          0.7
                                                                                                                

[[Page 42476]]

                                                                                                                
    Automation Discounts for Automation                                                                         
     Compatible Mail:                                                                                           
        From Required:                                                                                          
            ZIP + 4 Letter Size.........  Piece..........................          0.7          0.7          0.7
            Prebarcoded Letter Size.....  Piece..........................          1.7          1.7          1.7
            Prebarcoded Flats...........  Piece..........................          2.3          2.3          2.3
        From 3/5 Digit:                                                                                         
            ZIP + 4 Letter Size.........  Piece..........................          0.4          0.4          0.4
            3-Digit Prebarcoded Letter    Piece..........................          1.0          1.0          1.0
             Size.                                                                                              
            5-Digit Prebarcoded Letter    Piece..........................          1.7          1.7          1.7
             Size.                                                                                              
            Prebarcoded Flats...........  Piece..........................          1.5          1.5          1.5
----------------------------------------------------------------------------------------------------------------



[FR Doc. 96-20815 Filed 8-12-96; 1:21 pm]
BILLING CODE 7710-12-P