[Federal Register Volume 63, Number 35 (Monday, February 23, 1998)]
[Proposed Rules]
[Pages 8893-8894]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-4382]


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POSTAL SERVICE

39 CFR Part 501


Manufacture, Distribution, and Use of Postage Meters

AGENCY: Postal Service.

ACTION: Proposed rule.

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SUMMARY: This proposal would clarify and expand the sources of and uses 
of applicant information derived from PS Form 3601-A and PS Form 3601-
C, both printed and electronic versions.

DATES: Comments must be received on or before March 25, 1998.

ADDRESSES: Written comments should be mailed or delivered to the 
Manager, Metering Technology Management, U.S. Postal Service, Room 
8430, 475 L'Enfant Plaza SW Washington DC 20260-2444. Copies of all 
written comments will be available at the above address for inspection 
and photocopying between 9 a.m. and 4 p.m., Monday through Friday.

FOR FURTHER INFORMATION CONTACT: Nicholas S. Stankosky, (202) 268-5311.

SUPPLEMENTARY INFORMATION: To provide greater specificity regarding 
uses of the information derived from the meter license applications 
received by the United States Postal Service (``Postal Service'') from 
meter users and authorized meter manufacturers. Such information is 
hereafter referred to as ``Applicant Information.'' Applicant 
information is derived from postal forms, both printed and electronic 
versions.

Notice of Proposed Changes in Regulations

    Appropriate amendments to 39 CFR part 501 to reflect these changes 
will be published if the proposal is adopted.
    Although exempt from the notice and comment requirements of the 
Administrative Procedure Act (5 U.S.C. 553(b, c,)) regarding proposed

[[Page 8894]]

rulemaking by 39 U.S.C. 410(a), the Postal Service invites public 
comments on the following proposed amendments to the Code of the 
Federal Regulations.

List of Subjects in 39 CFR Part 501

    Administrative practice and procedure.
    For the reasons set forth above, the Postal Service proposes to 
amend 39 CFR part 501 as follows:

PART 501--AUTHORIZATION TO MANUFACTURER AND DISTRIBUTE POSTAGE 
METERS

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

    Authority: 5 U.S.C. 552(a): 39 U.S.C. 101, 401, 410, 2610, 2605; 
Inspector General Act of 1978, as amended (pub L. 95-452, as 
amended), 5 U.S.C. App 3.

    2. Section 501.22 is amended by revising paragraph (b) to read as 
follows:


Sec. 501.22  Distribution controls.

* * * * *
    (b) On behalf of applicants, transmit electronically copies of 
completed PS Forms 3601-A, Application for a License to Lease and Use 
Postage meters, to the designated Postal Service central data 
processing facility. The Postal Service may use Applicant Information 
for the following purposes in the administration of postage meter and 
related activities:
    (1) Issuance (including re-licensing, renewal, transfer, revocation 
or denial, as applicable) of a meter license to a postal patron that 
uses a postage meter, and communications with respect to the status of 
such license.
    (2) Disclosure to a meter manufacturer of the identity of any meter 
required to be removed from service by that meter manufacturer, and any 
related licensee data, as the result of revocation of a meter license, 
questioned accurate registration of that meter, or de-certification by 
the Postal Service of any particular class or model of postage meter.
    (3) Use for the purpose of tracking the movement of meters between 
a meter manufacturer and its customers and communications to a meter 
manufacturer (but not to any third party other than the applicant/
licensee) concerning such movement. The term ``meter manufacturer'' 
includes a meter manufacturer's dealers and agents.
    (4) To transmit general information to all meter customers 
concerning rate and rate category changes implemented or proposed for 
implementation by the United States Postal Service.
    (5) To advertise Postal Service services relating to the 
acceptance, processing, delivery, or postage payment of mail matter to 
all meter customers.
    (6) Any internal use by Postal Service personnel, including 
identification and monitoring activities relating to postage meters, 
provided that such use does not result in the disclosure of Applicant 
Information to any third party or will not enable any third party to 
use Applicant Information for its own purposes; except that the 
Applicant Information may be disclosed to other governmental agencies 
for law enforcement purposes as provided by law.
    (7) Identification of authorized meter manufacturers or 
announcements of de-authorization of an authorized meter manufacturer, 
or provision of currently available public information, where an 
authorized meter manufacturer is identified, all authorized meter 
manufacturers will be identified, and the same information will be 
provided to all meter customers.
    (8) To promote and encourage the use of postage meters, including 
remotely set postage meters, as a form of postage payment, provided 
that the same information is provided to all meter customers, and no 
particular meter manufacturer will be recommended by the Postal 
Service.
    (9) To contact meter customers in cases of revenue fraud or revenue 
security except that any meter customer suspected of fraud shall not be 
identified to other meter customers.
    (10) Disclosure to a meter manufacturer of Applicant Information 
pertaining to that meter manufacturer's customers that the Postal 
Service views as necessary to enable the Postal Service to carry out 
its duties and purposes.
    (11) To a meter manufacturer of all applicant and postage meter 
information pertaining to that manufacturer's customers and postage 
meters that may be necessary to synchronize the computer files of the 
manufacturer with the computer files of the Postal Service including 
but not limited to computerized data that reside in Postal Service 
meter management databases.
    (12) Subject to the conditions stated herein, to communicate in 
oral or written form with any or all applicants any information that 
the Postal Service views as necessary to enable the Postal Service to 
carry out its duties and purposes.
* * * * *
Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 98-4382 Filed 2-20-98; 8:45 am]
BILLING CODE 7710-12-P