[Federal Register Volume 67, Number 24 (Tuesday, February 5, 2002)]
[Rules and Regulations]
[Pages 5215-5216]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-2741]


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POSTAL SERVICE

39 CFR Part 551


Semipostal Stamp Program

AGENCY: Postal Service.

ACTION: Final rule.

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SUMMARY: This final rule implements legislative changes to the 
semipostal stamp program. The amendments to Postal Service regulations 
involve the duration of the program, pricing, and responsibility for 
tracking costs.

EFFECTIVE DATE: February 5, 2002.

FOR FURTHER INFORMATION CONTACT: Cindy Tackett, (202) 268-6555.

SUPPLEMENTARY INFORMATION:
    The Semipostal Authorization Act, Public Law No. 106-253, 114 Stat. 
634 (2000), authorizes the Postal Service to establish a 10-year 
program to sell semipostal stamps. The differential between the price 
of a semipostal stamp and the First-Class Mail service rate, 
less an offset for the reasonable costs of the Postal Service, consists 
of an amount to fund causes that the ``Postal Service determines to be 
in the national public interest and appropriate.'' By law, revenue from 
sales (net of postage and the reasonable costs of the Postal Service) 
is to be transferred to selected executive agencies within the meaning 
of 5 U.S.C. Sec. 105.
    After soliciting public comment on proposed rules, on June 12, 
2001, the Postal Service published a final rule establishing the 
regulations for the Semipostal Stamp Program. On November 12, 2001, 
Public Law No. 107-67, 115 Stat. 514 (2001), was enacted. Public Law 
No. 107-67 extends the sales period of the Breast Cancer Research stamp 
until December 31, 2003, and provides that the Postal Service must 
issue two additional semipostal stamps, to which selected provisions of 
39 U.S.C. 416 apply. The first is a semipostal stamp to provide 
assistance to the families of the emergency relief personnel killed or 
permanently disabled in connection with the terrorist attacks of 
September 11, 2001. The Heroes semipostal stamp is to be issued as soon 
as practicable and may remain on sale through December 31, 2004. Funds 
raised in connection with this semipostal stamp are to be transferred 
to the Federal Emergency Management Agency.
    The second is a semipostal stamp to fund domestic violence 
programs. The Domestic Violence semipostal stamp is to be issued as 
soon as practicable, but no later than the beginning of 2004, and may 
remain on sale through December 31, 2006. Funds raised in connection 
with this stamp are to be transferred to the U.S. Department of Health 
and Human Services.
    To implement Public Law No. 107-67, the Postal Service is revising 
its regulations governing the Semipostal Stamp Program. In particular, 
39 CFR 551.6 is revised to incorporate the new pricing formula for 
semipostal stamps issued under authority of 39 U.S.C. 416. This 
includes not only semipostal stamps issued by the Postal Service under 
its discretionary authority, but also the Heroes and Domestic Violence 
semipostal stamps. The new pricing formula provides that the 
differential, i.e., the difference between the purchase price and the 
postage value, must be at least 15 percent of the postage value of the 
semipostal stamp, and the price must be divisible by five. Section 
551.6 is accordingly revised to reflect the change in the pricing 
formula.
    Public Law No. 107-67 provides that both the Heroes and Domestic 
Violence semipostal stamps are not subject to any limitation prescribed 
by the Postal Service ``relating to whether more than one semipostal 
may be offered for sale at the same time.'' The Postal Service notes 
that 39 CFR 551.5(a) establishes a limit of one semipostal stamp issued 
at one time. In light of the specific exceptions listed in Public Law 
No. 107-67, the Postal Service interprets this limitation to extend 
only to semipostal stamps issued under the Postal Service's 
discretionary program. Hence, the Postal Service submits that it is 
unnecessary to promulgate a substantive change to 39 CFR 551.5, 
although the section is revised to refer to the enactment of Public Law 
No. 107-67.
    Finally, several nonsubstantive changes are made to Part 551 to 
incorporate the enactment of Public Law No. 107-67 and to reflect 
organizational changes within the Postal Service. Specifically, in 39 
CFR 551.1 reference is made to Public Law No. 107-67. Sections 551.1 
and 551.8 are revised to reflect a new organizational unit name for the 
Office of Finance, with responsibilities related to semipostal stamps. 
In addition, Sec. 551.8(b) is amended to include the sharing of 
responsibility for selecting comparable stamps between the Offices of 
Accounting, Finance, Controller and the Office of Stamp Services.
    The Postal Service hereby adopts the following revisions to the 
Code of Federal Regulations.

List of Subjects in 39 CFR Part 551

    Administrative practice and procedure, Postal Service.

    For the reasons set out in this document, the Postal Service hereby 
amends 39 CFR Part 551 as follows:

PART 551--[AMENDED]

    1. The authority citation for 39 CFR part 551 is revised to read as 
follows:

    Authority: 39 U.S.C. 101, 201, 203, 401, 403, 404, 410, 416, and 
the Semipostal Authorization Act, Pub. L. 106-253, 114 Stat. 634 
(2000), as amended by Pub. L. 107-67, section 652, 115 Stat. 514 
(2001).


    2. Revise Sec. 551.1 to read as follows:


Sec. 551.1  Semipostal Stamp Program.

    The Semipostal Stamp Program is established under the Semipostal 
Authorization Act, Public Law 106-253, 114 Stat. 634 (2000), as amended 
by Public Law 107-67, section 652, 115 Stat. 514 (2001). The Office of 
Stamp Services has primary responsibility for administering the 
Semipostal Stamp Program. The Office of Accounting, Finance, Controller 
has primary responsibility for the financial aspects of the Semipostal 
Stamp Program.

    3. Amend Sec. 551.5 by revising paragraph (a) to read as follows:


Sec. 551.5  Frequency and other limitations.

    (a) The Postal Service is authorized to issue semipostal stamps for 
a 10-year period beginning on the date on which semipostal stamps are 
first sold to the public under 39 U.S.C. 416. The 10-year period will 
commence after the sales period of the Breast Cancer Research stamp is 
concluded in accordance with the Stamp Out Breast Cancer Act, and as 
amended by the Semipostal Authorization Act, the Breast Cancer Research 
Stamp Act of 2001, and Public Law 107-67, section 650, 115 Stat. 514.

[[Page 5216]]

The Office of Stamp Services will determine the date of commencement of 
the 10-year period.
* * * * *

    4. Amend Sec. 551.6 by revising paragraph (a) to read as follows:


Sec. 551.6  Pricing.

    (a) The Semipostal Authorization Act, as amended by Public Law 107-
67, section 652, 115 Stat. 514 (2001), prescribes that the price of a 
semipostal stamp is the rate of postage that would otherwise regularly 
apply, plus a differential of not less than 15 percent. The price of a 
semipostal stamp shall be an amount that is evenly divisible by five. 
For purposes of this provision, the First-Class Mail single-
piece first-ounce rate of postage will be considered the rate of 
postage that would otherwise regularly apply.
* * * * *

    5. Amend Sec. 551.8 by revising paragraphs (b), (c), and (d) 
introductory text to read as follows:


Sec. 551.8  Cost offset policy.

* * * * *
    (b) Overall responsibility for tracking costs associated with 
semipostal stamps will rest with the Office of Accounting, Finance, 
Controller. Individual organizational units incurring costs will 
provide supporting documentation to the Office of Accounting, Finance, 
Controller.
    (c) For each semipostal stamp, the Office of Stamp Services, in 
coordination with the Office of Accounting, Finance, Controller, shall, 
based on judgment and available information, identify the comparable 
commemorative stamp(s) and create a profile of the typical cost 
characteristics of the comparable stamp(s) (i.e., manufacturing 
process, gum type), thereby establishing a baseline for cost comparison 
purposes. The determination of comparable commemorative stamps may 
change during or after the sales period, if the projections of stamp 
sales differ from actual experience.
    (d) Except as specified, all costs associated with semipostal 
stamps will be tracked by the Office of Accounting, Finance, 
Controller. Costs that will not be tracked include:
* * * * *

Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 02-2741 Filed 2-4-02; 8:45 am]
BILLING CODE 7710-12-P