[Federal Register Volume 67, Number 223 (Tuesday, November 19, 2002)]
[Proposed Rules]
[Pages 69698-69702]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-29340]


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POSTAL SERVICE

39 CFR Part 111


Bound Printed Matter: Flat-Size Mail Co-Packaging, Co-Sacking, 
and Higher DDU Rate Minimum Weight

AGENCY: Postal Service.

ACTION: Proposed rule.

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SUMMARY: The Postal Service is proposing revisions to the Domestic Mail 
Manual (DMM) that would provide new mail preparation standards for co-
packaging and co-sacking flat-size Bound Printed Matter. The standards 
for co-packaging would be optional, while the standards for co-sacking 
would be mandatory beginning on June 1, 2003. Prior to that date, the 
use of the co-sacking standards would be optional.
    Also proposed is a change in the minimum weight for Presorted Bound 
Printed Matter flats claimed at the destination delivery unit (DDU) 
rate. The minimum weight for such pieces is proposed to change from 
``more than 1 pound'' to ``more than 20 ounces.''

DATES: Submit comments on or before December 19, 2002.

ADDRESSES: Mail or deliver written comments to the Manager, Mail 
Preparation and Standards, U.S. Postal Service, 1735 N. Lynn Street, 
Room 3025, Arlington, VA 22209-6038. Written comments may also be 
submitted via fax to 703-292-4058. Copies of all written comments will 
be available for inspection and photocopying between 9 a.m. and 4 p.m., 
Monday through Friday, at the Postal Service Headquarters Library, 475 
L'Enfant Plaza SW, 11th Floor North, Washington, DC.

FOR FURTHER INFORMATION CONTACT: Jane Stefaniak at (703) 292-3548, Mail 
Preparation and Standards, United States Postal Service.

SUPPLEMENTARY INFORMATION: Through several past rulemakings (65 FR 
52480, 66 FR 28659, and 66 FR 58944) the Postal Service has established 
mail preparation standards in Domestic Mail Manual (DMM) M900 for co-
packaging and co-traying flat-size First-Class Mail, and for co-
packaging and co-sacking flat-size Periodicals and Standard Mail. At 
this time, the Postal Service is proposing to further extend these 
standards to allow the co-packaging and co-sacking of flat-size Bound 
Printed Matter pieces that are compatible with processing on the 
automated flat sorting machine (AFSM) 100.
    Bound Printed Matter Presorted rate flats (no barcode required) and 
Presorted rate flats that bear a ZIP+4 or delivery point barcode and 
claim the barcoded discount are usually processed by the Postal Service 
within the same operation. For this reason, allowing packages of flat-
size barcoded and nonbarcoded pieces to be combined within the same 
container (i.e., co-sacking) can provide operational efficiencies that 
could reduce costs. Additionally, the need for the Postal Service to 
segregate flat-size barcoded and nonbarcoded pieces within a package no 
longer exists due to advances, such as the optical character reader 
(OCR) and image lift capabilities of the AFSM 100. Therefore, it would 
not be operationally beneficial to continue to require the separate 
preparation of Bound Printed Matter Presorted rate flats that qualify 
for the barcoded discount and Presorted rate flats that do not qualify 
for the barcoded discount. Continuing to segregate barcoded and 
nonbarcoded flats would result in more packages and sacks, reduce the 
average depth of sort, and cause additional workhours for the Postal 
Service associated with sorting, opening, and prepping flats for 
processing.
    Under the proposed co-sacking standards for flat-size Bound Printed 
Matter, mailers would be required, beginning June 1, 2003, to co-sack 
(i.e., sort into the same sack) packages of Presorted rate pieces 
qualifying for the barcoded discount with packages of Presorted rate 
pieces not claiming the barcoded discount. Additionally, mailers would 
have the option to co-package (i.e., sort into the same package) flat-
size Bound Printed Matter Presorted rate pieces qualifying for the 
barcoded discount and Presorted rate pieces not qualifying for the 
barcoded discount within the same package. Co-packaged pieces would be 
required to be co-sacked under DMM M910. The containerization methods 
permitted for First-Class Mail, Periodicals, and Standard Mail in 
existing DMM M920, M930, and M940 would not be available for Bound 
Printed Matter.
    The proposed standards for the optional co-packaging of Bound 
Printed Matter flats would include the following:
    [sbull] All pieces would be required to weigh 20 ounces or less and 
meet the AFSM 100 criteria for automation-compatible flat-size mail in 
DMM M820.
    [sbull] Presorted rate pieces qualifying for the barcoded discount 
would be required to be part of a Presorted rate mailing of at least 
300 flat-size pieces and be prepared under DMM M820. Presorted rate 
pieces not claiming the barcoded discount would be required to be part 
of a mailing of at least 300 pieces prepared under DMM M722.
    [sbull] Each piece in the Presorted rate mailing qualifying for the 
barcoded discount would be required to bear a correct and readable 
ZIP+4 or delivery point barcode (DPBC) under DMM C840. Each piece in 
the Presorted rate mailing would be required to bear a correct and 
readable 5-digit barcode under DMM C840.
    [sbull] Presorted rate pieces qualifying for the barcoded discount 
would be required to be sorted together with the Presorted rate pieces, 
but only one physical package for each logical presort destination 
would be permitted to include pieces for both rate categories, unless 
presented using an approved manifest mailing system under DMM P910.
    [sbull] Mailing that are co-packaged pieces would be required to be 
co-sacked under DMM M910.
    The proposed standards for the co-sacking of Bound Printed Matter 
flats would include the following:
    [sbull] Packages prepared as part of the Presorted rate mailing 
qualifying for the barcoded discount and packages prepared as part of 
the Presorted rate mailing not qualifying for the barcoded discount 
would be required to be co-sacked, effective June 1, 2003.
    [sbull] Packages of flats qualifying for the barcoded discount that 
are co-sacked with packages of Presorted rate flats would be required 
to be part of the same mailing job.
    [sbull] Both the Presorted rate mailing qualifying for the barcoded 
discount and the Presorted rate mailing not qualifying for the barcoded 
discount would be required to separately meet the applicable rate 
eligibility and volume requirements.

[[Page 69699]]

    [sbull] Packages that are co-sacked under DMM M910 would not be 
required to be co-packaged.
    Standardized documentation under DMM P012 would be required for 
mailings prepared under the proposed standards for co-packaging and co-
sacking as follows:
    [sbull] Documentation for a co-packaged mailing would be required 
to indicate by zone (when applicable) the number of Presorted rate 
pieces qualifying for the barcoded discount and the number of Presorted 
rate pieces not claiming the barcoded discount that are contained in 
each package.
    [sbull] Documentation for a co-sacked mailing would be required to 
indicate by zone (when applicable) for each sack sortation level, the 
number of Presorted rate pieces qualifying for the barcode discount, 
and the number of Presorted rate pieces not claiming the barcoded 
discount that are contained in each sack.
    If this proposal is adopted, mailers could begin using the co-
packaging and co-sacking standards for Bound Printed Matter flats 
immediately. The standards for co-packaging would be optional. The 
Postal Service is proposing the mandatory use of the co-sacking 
preparation standards beginning on June 1, 2003. The delayed 
implementation date would ensure that mailers could meet all 
operational requirements for the co-sacking standards.
    As part of this notice, an additional DMM revision is proposed that 
would change the minimum weight in DMM E752.4.2 for Presorted rate 
Bound Printed Matter flats claimed at the destination delivery unit 
(DDU) rates from ``more than 1 pound'' to ``more than 20 ounces.'' The 
corresponding text in DMM R700.2.5 would also be revised. Based on 
operational conditions and requirements, this proposed change would 
position the minimum weight for DDU rate Presorted Bound Printed Matter 
flats to begin after the point where the maximum weight of 20 ounces 
for AFSM 100 Bound Printed Matter flats ends. The maximum weight for 
AFSM 100 Bound Printed Matter flats was published in a previous Federal 
Register final rule (67 FR 40164). That final rule established a 
maximum weight of 20 ounces for AFSM 100 Bound Printed Matter flats 
which became effective on June 30, 2002. This change to the minimum 
weight for DDU rate Bound Printed Matter flats would allow the Postal 
Service to maximize the use of its automated processing equipment.
    Although exempt from the notice and comment requirements of the 
Administrative Procedure Act [5 U.S.C. of 553(b), (c)] regarding 
proposed rulemaking by 39 U.S.C. 410(a), the Postal Service invites 
public comment on the following proposed revisions to the Domestic Mail 
Manual, incorporated in the Code of Federal Regulations. See 39 CFR 
111.1.

List of Subject in 39 CFR Part 111

    Administrative Practice and Procedure, Postal Service.

PART 111--[AMENDED]

    1. The authority citation for 39 CFR part 111 continues to read as 
follows:

    Authority: 5 U.S.C. 552(a); 39 U.S.C. 101, 401, 403, 404, 414, 
416, 3001-3011, 3201-3219, 3403-3406, 3621, 3626, 5001.

    2. Amend the following sections of the Domestic Mail Manual (DMM) 
as set forth below:

E ELIGIBILITY

* * * * *

E700 Package Services

* * * * *

E752 Bound Printed Matter

* * * * *
4.0 DESTINATION DELIVERY UNIT (DDU) RATES
* * * * *

4.2 Presorted Flats

[Revise 4.2 by changing ``1 pound'' to ``20 ounces'' in order to align 
the weight with the previously implemented AFSM 100 requirements, to 
read as follows:]
Presorted flats that weigh more than 20 ounces in 5-digit sacks, on 5-
digit scheme or 5-digit pallets, or prepared as bedloaded 5-digit 
packages may claim DDU rates. Mail must be entered at the appropriate 
facility under 4.1. Presorted flats weighing 20 ounces or less are not 
eligible for the DDU rate.
* * * * *

M MAIL PREPARATION AND SORTATION

M000 General Preparation Standards

M010 Mailpieces

M011 Basic Standards

1.0 TERMS AND CONDITIONS
* * * * *

1.3 Preparation Instructions

    For purposes of preparing mail:
* * * * *
[Revise 1.3ad to read as follows:]
    ad. Co-packaging is an alternate preparation method available under 
M950 for First-Class Mail, Periodicals, and Standard Mail that allows 
the combining of flat-size automation rate and Presorted rate pieces 
within the same package under the single minimum package size 
requirement. Co-packaging is also available for combining flat-size 
Bound Printed Matter Presorted pieces qualifying for the barcoded 
discount and Presorted rate pieces not qualifying for the barcoded 
discount within the same package. Pieces may not be combined in more 
than one physical package for each logical presort destination unless 
presented using an approved manifest mailing system under P910.

1.4 Mailing

    Mailings are defined as:
* * * * *
[Revise item e by adding references to the advanced preparation options 
for flat-sized Bound Printed Matter in M900, to read as follows (the 
remainder of 1.4 is unchanged):]
    e. Package Services. Except for single-piece rate pieces not 
otherwise subject to a minimum mailing requirement that are presented 
under an approved manifest mailing system under P910, the types of 
Package Services listed below may not be part of the same mailing even 
if in the same processing category. See M910 and M950 for the advanced 
preparation options available for flat-size Bound Printed Matter.* * *
* * * * *

M030 Containers

* * * * *

M032 Barcoded Labels

1.0 BASIC STANDARDS--TRAY AND SACK LABELS
* * * * *

Exhibit 1.3a 3-Digit Content Identifier Numbers

[Revise Exhibit 1.3a by adding new categories and Content Identifier 
Numbers for co-sacked Bound Printed Matter, to read as follows:]

[[Page 69700]]



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                                                PACKAGE SERVICES
                                                  * * * * * * *
BPM Flats--Co-Sacked Barcoded and
 Presorted:
    5-digit sacks....................  648  PSVC FLTS 5D BC/NBC.
    3-digit sacks....................  661  PSVC FLTS 3D BC/NBC.
    SCF sacks........................  667  PSVC FLTS SCF BC/NBC.
    ADC sacks........................  668  PSVC FLTS ADC BC/NBC.
    Mixed ADC sacks..................  669  PSVC FLTS BC/NBC WKG.
----------------------------------------------------------------------------------------------------------------

* * * * *

M700 Package Services

* * * * *

M720 Bound Printed Matter

* * * * *

M722 Presorted Bound Printed Matter

1.0 BASIC STANDARDS
* * * * *
[Add new 1.5 to read as follows:]

1.5 Co-Sacking Flats With Barcoded Mail

    The following standards apply:
    a. If the mailing job contains a carrier route mailing, a Presorted 
mailing qualifying for the barcoded discount, and a Presorted rate 
mailing, then it must be prepared using one of the following options:
    (1) All three mailings in the mailing job must be prepared using 
the appropriate standards in M722, M723, and M820.
    (2) The carrier route mailing must be prepared under E712 and M723, 
and the Presorted mailing qualifying for the barcoded discount and the 
Presorted rate mailing must be prepared under the co-sacking standards 
in M910.
    b. If the mailing job contains a Presorted mailing qualifying for 
the barcoded discount and a Presorted rate mailing, then it must be 
prepared using one of the following options:
    (1) Both mailings must be prepared using the appropriate 
preparation in M722 and M820.
    (2) Both mailings must be prepared under the co-sacking standards 
in M910.
    c. If the mailing job contains a carrier route mailing and a 
Presorted rate mailing, then it must be separately sacked under M722 
and M723.
    d. At the mailer's option, Presorted pieces qualifying for the 
barcoded discount may be co-packaged with Presorted rate pieces under 
M950.
* * * * *

M800 All Automation Mail

* * * * *

M820 Flat-Size Mail

1.0 BASIC STANDARDS
* * * * *

1.9 Co-Traying, Co-Sacking, and Co-Packaging With Presorted Rate Mail

    The following standards apply:
* * * * *
[Add new item d for Bound Printed Matter to read as follows:]
    d. Bound Printed Matter:
    (1) If the mailing job contains a carrier route mailing, a 
Presorted mailing qualifying for the barcoded discount, and a Presorted 
rate mailing, then it must be prepared using one of the following 
options:
    (a) All three mailings in the mailing job must be prepared using 
the appropriate preparation in M722, M723, and M820.
    (b) The carrier route mailing must be prepared under E712 and M723, 
and the Presorted mailing qualifying for the barcoded discount and the 
Presorted rate mailing must be prepared under the co-sacking standards 
in M910.
    (2) If the mailing job contains only a Presorted rate mailing 
qualifying for the barcoded discount and a Presorted rate mailing, then 
it must be prepared using one of the following options:
    (a) Both mailings must be prepared using the appropriate 
preparation in M722 and M820.
    (b) Both mailings must be prepared under the co-sacking standards 
in M910.
    (3) If the mailing job contains only a carrier route mailing and a 
Presorted mailing qualifying for the barcoded discount, then it must be 
separately prepared under M723 and M820.
    (4) At the mailer's option, Presorted pieces qualifying for the 
barcoded discount may be co-packaged with Presorted rate pieces under 
M950.
* * * * *
6.0 BOUND PRINTED MATTER
* * * * *

6.2 Sack Preparation and Labeling

[Revise 6.2 to read as follows:]
    Preparation sequence, sack size, and labeling:
    a. 5-digit (required); minimum 20 addressed pieces; labeling:
    (1) Line 1: city, state, and 5-digit ZIP Code destination of 
packages, preceded for military mail by correct prefix under M031.
    (2) Line 2: ``PSVC FLTS 5D BC.''
    b. 3-digit (required); minimum 20 addressed; labeling:
    (1) Line 1: L002, Column A.
    (2) Line 2: ``PSVC FLTS 3D BC.''
    c. SCF (required for each 3-digit ZIP Code served by the SCF of the 
origin (verification) office; optional for each 3-digit ZIP Code served 
by the SCF of an entry office other than the origin office); minimum 20 
addressed pieces; labeling:
    (1) Line 1: L005.
    (2) Line 2: ``PSVC FLTS SCF BC.''
    d. ADC (required); minimum 20 addressed pieces (use L004 to 
determine ZIP Codes served by each ADC); labeling:
    (1) Line 1: L004.
    (2) Line 2: ``PSVC FLTS ADC BC.''
    e. Mixed ADC (required); no minimum; labeling:
    (1) Line 1: L803. If entered by mailer at an ASF or BMC, L802.
    (2) Line 2: ``PSVC FLTS BC/NBC WKG.''
* * * * *

M900 Advanced Preparation Options for Flats

M910 Co-Traying and Co-Sacking Packages of Automation and Presorted 
Mailings

[Revise the Summary to include the new option for preparing flat-size 
Bound Printed Matter, to read as follows:]
Summary
    M910 describes the eligibility and preparation requirements for co-
traying flat-size packages of automation rate and Presorted rate First-
Class Mail. It also describes the eligibility and preparation 
requirements for co-sacking flat-size packages of nonletter-size 
automation rate and Presorted rate Periodicals, flat-size packages of 
automation rate and Presorted rate Standard Mail, and flat-size 
packages of Bound Printed Matter Presorted rate qualifying for the 
barcoded discount and Presorted rate (not qualifying for the barcoded 
discount).
* * * * *
[Add new 4.0, Bound Printed Matter, to provide preparation requirements 
for co-sacking flat-size BPM, to read as follows:]

[[Page 69701]]

4.0 BOUND PRINTED MATTER

4.1 Basic Standards

    Effective June 1, 2003, mailers must co-sack packages of flat-size 
pieces from a Presorted mailing qualifying for the barcoded discount 
with packages of flat-size pieces from a Presorted rate mailing under 
the following conditions:
    a. The Presorted pieces qualifying for the barcoded discount and 
the Presorted rate pieces are part of the same mailing job and are 
reported on the same postage statement.
    b. The Presorted pieces qualifying for the barcoded discount must 
meet the criteria for flat-size mail under C050 and C820. Pieces in the 
Presorted rate mailing must meet the criteria for flat-size mail under 
C050.
    c. The Presorted mailing qualifying for the barcoded discount must 
meet the eligibility criteria in E712, except that the sacking and 
documentation criteria in 4.1 and 4.4 must be met rather than the 
sacking and documentation criteria in M820.
    d. The Presorted rate mailing must meet the eligibility criteria in 
E712, except that the sacking and documentation criteria in 4.1 and 4.4 
must be met rather than the sacking and documentation criteria in M722.
    e. The rates for pieces in the Presorted mailing qualifying for the 
barcoded discount are applied based on the number of pieces in the 
package, the level of package to which they are sorted under M722, and 
when applicable, the zone. The rates for pieces in the Presorted rate 
mailing are based on the number of pieces in the package, the level of 
sack in which they are placed under E712, and when applicable, the 
zone.
    f. The pieces must be marked according to M012.
    g. The packages prepared from the Presorted mailing qualifying for 
the barcoded discount and the packages prepared from the Presorted rate 
mailing must be sorted into the same sacks as described in 4.4.
    h. A complete, signed postage statement(s), using the correct 
Postal Service form or an approved facsimile, must accompany each 
mailing job prepared under these procedures. Standardized documentation 
under P012 must also be submitted with each co-sacked mailing job and 
must describe for each sack sortation level, the number of pieces 
qualifying for the barcode discount, and the number of pieces that 
qualify for each applicable Presorted rate. i. Barcoded sack labels 
under M032 must be used to label the sacks.

4.2 Package Preparation

    Except for mail prepared under the co-packaging option in 4.3, the 
Presorted mailing qualifying for the barcoded discount must be packaged 
and labeled under M820 and the Presorted rate mailing must be packaged 
and labeled under M722.

4.3 Optional Co-Packaging Preparation

    As an option to the basic packaging requirements in 4.2, a mailer 
may co-package flat-size Presorted pieces qualifying for the barcoded 
discount and flat-size Presorted rate pieces, subject to M950.

4.4 Sack Preparation and Labeling

    Packages of Presorted pieces qualifying for the barcoded discount 
and Presorted rate pieces prepared under 4.2 and 4.3 must be presorted 
together into sacks (co-sacked) using the following preparation 
sequence, sack size, and labeling:
    a. 5-digit (required); minimum 20 addressed pieces; labeling:
    (1) Line 1: city, state, and 5-digit ZIP Code destination of 
packages, preceded for military mail by correct prefix under M031.
    (2) Line 2: ``PSVC FLTS 5D BC/NBC.''
    b. 3-digit (required); minimum 20 addressed pieces; labeling:
    (1) Line 1: L002, Column A.
    (2) Line 2: ``PSVC FLTS 3D BC/NBC.''
    c. SCF (required for each 3-digit ZIP Code served by the SCF of the 
origin (verification) office; optional for each 3-digit ZIP Code served 
by the SCF of an entry office other than the origin office); minimum 20 
addressed; labeling:
    (1) Line 1: L005.
    (2) Line 2: ``PSVC FLTS SCF BC/NBC.''
    d. ADC (required); minimum 20 addressed (use L004 to determine ZIP 
Codes served by each ADC); labeling:
    (1) Line 1: L004.
    (2) Line 2: ``PSVC FLTS ADC BC/NBC.''
    e. Mixed ADC (required); no minimum; labeling:
    (1) Line 1: L803. If entered by mailer at an ASF or BMC, L802.
    (2) Line 2: ``PSVC FLTS BC/NBC WKG.''
* * * * *

M950 Co-Packaging Automation Rate and Presorted Rate Pieces Summary

[Revise the Summary to include the new option for preparing flat-size 
Bound Printed Matter, to read as follows:]
    M950 describes the eligibility and preparation requirements for co-
packaging flat-size automation rate and Presorted rate First-Class 
Mail, nonletter-size automation rate and Presorted rate Periodicals, 
flat-size automation rate and Presorted rate Standard Mail, and flat-
size Presorted rate qualifying for the barcoded discount and Presorted 
rate (not qualifying for the barcoded discount) Bound Printed Matter.
* * * * *
[Add new 4.0, Bound Printed Matter, to provide co-packaging preparation 
requirements for flat-size BPM under M950, to read as follows:]
4.0 BOUND PRINTED MATTER

4.1 Basic Standards

    Mailers may choose to co-package flat-size Presorted pieces 
qualifying for the barcoded discount and Presorted rate pieces as an 
option to the basic packaging requirements in M722 and M820, subject to 
the following conditions:
    a. The pieces in the Presorted mailing qualifying for the barcoded 
discount and the pieces in the Presorted rate mailing must be part of 
the same mailing job and must be reported on the same postage 
statement.
    b. The pieces in the mailing job must be flat-size and meet any 
other size and mailpiece design requirements applicable to the rate 
category for which they are prepared.
    c. Mailings prepared in sacks must meet the basic standards in 
M910.
    d. A minimum of 300 Presorted pieces qualifying for the barcoded 
discount and a minimum of 300 Presorted rate pieces are required. The 
total number of pieces qualifying for the barcoded discount and the 
total number of pieces qualifying for the Presorted rate must be used 
to meet the minimum volume requirements for packages and containers.
    e. Presorted rate pieces must contain a 5-digit barcode and be co-
packaged with Presorted pieces qualifying for the barcoded discount for 
the same presort destination. If this optional preparation method is 
used, all barcoded discount pieces and Presorted rate pieces in the 
same mailing job and reported on the same postage statement must be co-
packaged.
    f. All pieces must meet the AFSM 100 requirements described in 
C820.
    g. Unless presented using an approved manifest mailing system under 
P910, mailers must sort Presorted pieces qualifying for the barcoded 
discount and Presorted rate pieces for each presort destination so that 
only one physical package for each logical presort destination includes 
both Presorted pieces qualifying for the barcoded

[[Page 69702]]

discount (containing a ZIP+4 or delivery point barcode) and Presorted 
rate pieces (containing a 5-digit barcode).

4.2 Package Preparation

    Package size, preparation sequence, and labeling:
    a. 5-digit (required); minimum 10 addressed pieces or 10 pounds, 
maximum package weight 20 pounds; red Label D or optional endorsement 
line (OEL).
    b. 3-digit (required); minimum 10 addressed pieces or 10 pounds, 
maximum package weight 20 pounds; green Label 3 or OEL.
    c. ADC (required); minimum 10 addressed pieces or 10 pounds, 
maximum package weight 20 pounds; pink Label A or OEL.
    d. Mixed ADC (required); no minimum, maximum package weight 20 
pounds; tan Label MXD or OEL.

R RATES AND FEES

* * * * *

R700 Package Services

* * * * *
2.0 BOUND PRINTED MATTER
* * * * *

2.5 Destination Entry Rates--Flats

[Remove the last sentence and replace it with the following sentence:]
    * * * Presorted flats weighing 20 ounces or less are not eligible 
for the DDU rate.
* * * * *
    An appropriate amendment to 39 CFR 111 to reflect the changes will 
be published if the proposal is adopted.

Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 02-29340 Filed 11-18-02; 8:45 am]
BILLING CODE 7710-12-P