[Federal Register Volume 81, Number 42 (Thursday, March 3, 2016)]
[Proposed Rules]
[Pages 11164-11166]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-04646]


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POSTAL SERVICE

39 CFR Part 551


Semipostal Stamp Program

AGENCY: Postal ServiceTM.

ACTION: Proposed rule.

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SUMMARY: This proposed rule would revise the provisions governing the 
Postal Service's discretionary Semipostal Stamp Program to simplify and 
expedite the process for selecting causes for semipostal stamps, and 
facilitate the issuance of five such stamps over a 10-year period. It 
would also remove certain restrictions on the commencement date for the 
Postal Service's discretionary Semipostal Stamp Program, and clarify 
how many semipostal stamps issued under that program may be on sale at 
any one time.

DATES: Comments must be received on or before April 4, 2016.

ADDRESSES: Mail or deliver written comments to the Manager, Stamp 
Products & Exhibitions, U.S. Postal Service[supreg], 475 L'Enfant Plaza 
SW., Room 3306, Washington DC 20260. You may inspect and photocopy all 
written comments at the Stamp Products & Exhibitions office by 
appointment only between the hours of 9 a.m. and 4 p.m., Monday through 
Friday, by calling 202-268-6711 in advance. Email and faxed comments 
are not accepted.

FOR FURTHER INFORMATION CONTACT: Lori Mazzone, Manager, Stamp Products 
& Exhibitions, 202-268-6711, [email protected].

SUPPLEMENTARY INFORMATION:

Background

    The Semipostal Authorization Act, Pub. L. 106-253, grants the 
Postal Service discretionary authority to issue and sell semipostal 
stamps to advance such causes as it considers to be ``in the national 
public interest and appropriate.'' See 39 U.S.C. 416(b). On June 12, 
2001, the Postal Service published a final rule establishing the 
regulations in 39 CFR part 551 for the discretionary Semipostal Stamp 
Program (66 FR 31826). Minor revisions were made to these regulations 
to implement Pub. L. 107-67, 115 Stat. 514 (2001), and to reflect minor 
organizational changes in the Postal Service (67 FR 5215 (February 5, 
2002)). On February 19, 2004, the Postal Service published a final rule 
clarifying the cost-offset policy for semipostal stamps (69 FR 7688), 
and on February 9, 2005, the Postal Service also published an 
additional minor clarifying revision to these cost-offset regulations 
(70 FR 6764).
    Most recently, on January 22, 2016, the Postal Service published a 
proposed amendment to 39 CFR 551.5 to remove certain restrictions on 
the commencement date for the discretionary Semipostal Stamp Program, 
and clarify how many semipostal stamps issued under that program may be 
on sale at any one time (81 FR 3762).
    Upon further consideration, however, it was determined that a 
further revision of the rules concerning the discretionary Semipostal 
Stamp Program was necessary to facilitate its smooth and efficient 
operation. Accordingly, the Postal Service now proposes and invites 
comments upon a more detailed revision of 39 CFR part 551. This 
proposal supersedes (but incorporates) the amendments previously 
published on January 22, 2016. The proposed changes are summarized 
below.

Proposed Changes

    The proposed revision of Sec.  551.3 streamlines and simplifies the 
selection process for the causes to receive funds raised through the 
sale of semipostal stamps, and states the Postal Service's intention to 
issue five such stamps over the statutory ten-year period. It also 
notifies the public that no further consideration will be given to 
previously submitted proposals but that such proposals may be 
resubmitted under the revised regulations. The paragraph relating to 
proposals regarding the same subject and proposals for the sharing of 
funds between two agencies is edited for clarity and moved to Sec.  
551.4, concerning submission requirements and criteria, where it more 
appropriately belongs.
    The proposed revision of Sec.  551.4 sharpens the submission 
requirements and, among other things, makes Postal Service employees 
ineligible to submit proposals for semipostal stamps.
    The proposed revision of Sec.  551.5(a) would remove certain 
restrictions on the commencement date of the discretionary Semipostal 
Stamp Program. Under current regulations, the 10-year period for the 
discretionary semipostal stamp program commences on a date determined 
by the Office of Stamp Services, but that date must be after the sales 
period of the Breast Cancer Research stamp (BCRS) is concluded. Most 
recently, Public Law 114-99 (December 11, 2015) extended that sales 
period to December 31, 2019. Under the proposed revision, the 10-year 
period will commence on a date determined by the Office of Stamp 
Services, but the date need not be after the BCRS sale period 
concludes.
    The proposed revision of Sec.  551.5(b) would clarify that although 
only one semipostal stamp under the discretionary Semipostal Stamp 
Program under 39 U.S.C. 416 (a ``discretionary program semipostal 
stamp'') will be offered for sale at any one time, other semipostal 
stamps required to be issued by Congress (such as the BCRS) may be on 
sale when a discretionary program semipostal stamp is on sale. Current 
regulations state that the Postal Service will offer only one 
semipostal stamp for sale at any given time during the 10-year period 
(not specifying whether it is a discretionary program semipostal stamp 
or a semipostal stamp required by Congress). Under the proposed 
revision, the one-at-a-time limitation on the sale of

[[Page 11165]]

semipostal stamps would apply only to discretionary program semipostal 
stamps.
    To minimize confusion regarding applicable postage rates, the 
proposed revision of Sec.  551.6 specifies that for purposes of 
calculating the price of a semipostal, the First-Class Mail[supreg] 
single-piece stamped first-ounce rate of postage will be considered 
``the rate of postage that would otherwise regularly apply.''

List of Subjects in 39 CFR Part 551

    Administrative practice and procedure.

    In accordance with 39 U.S.C. 416(e)(2), the Postal Service invites 
public comment on the following proposed amendments to the Code of 
Federal Regulations. For the reasons stated in the preamble, the Postal 
Service proposes to revise 39 CFR part 551 as follows:

PART 551--[AMENDED]

0
1. The authority citation for 39 CFR part 551 continues to read as 
follows:

    Authority:  39 U.S.C. 101, 201, 203, 401, 403, 404, 410, 414, 
416.

0
2. Revise Sec.  551.3 to read as follows:


Sec.  551.3  Procedure for selection of causes and recipient executive 
agencies.

    The Postal Service has discretionary authority to select causes and 
recipient executive agencies to receive funds raised through the sale 
of semipostal stamps. These regulations apply only to such 
discretionary semipostal stamps and do not apply to semipostal stamps 
that are mandated by Act of Congress, such as the Breast Cancer 
Research stamp. The procedure for selection of causes and recipient 
executive agencies is as follows:
    (a) The Office of Stamp Services will accept proposals from 
interested persons for future semipostal stamps beginning on May 16, 
2016, or the effective date of this regulation, whichever is later. The 
Office of Stamp Services will begin considering proposals on July 1, 
2016, or 45 days after the effective date of this regulation, whichever 
is later. The Postal Service intends to issue five semipostal stamps 
under these regulations during the 10-year period established by 
Congress in 39 U.S.C. 416(g). Each semipostal stamp will be sold for no 
more than two years. Proposals may be submitted and will be considered 
on a rolling basis until May 15, 2023, or seven years after the 
effective date of this regulation, whichever is later. The Office of 
Stamp Services may publicize this request for proposals in the Federal 
Register or through other means, as it determines in its discretion. 
Proposals for semipostal stamps made prior to May 16, 2016, or the 
effective date of this regulation, whichever is later, will not be 
given further consideration. Nothing in these regulations should be 
construed as barring the resubmission of previously submitted causes 
and recipient executive agencies.
    (b) Proposals will be received by the Office of Stamp Services, 
which will review each proposal under Sec.  551.4.
    (c) The Office of Stamp Services will forward those proposals that 
satisfy the requirements of Sec.  551.4 to the Citizens' Stamp Advisory 
Committee for its consideration.
    (d) Based on the proposals received from the Office of Stamp 
Services, the Citizens' Stamp Advisory Committee may make 
recommendations on causes and eligible recipient executive agencies to 
the postmaster general. The Citizens' Stamp Advisory Committee may 
recommend more than one cause and eligible recipient executive agency 
at the same time.
    (e) Meetings of the Citizens' Stamp Advisory Committee are closed, 
and deliberations of the Citizens' Stamp Advisory Committee are pre-
decisional in nature.
    (f) In making decisions concerning semipostal stamps, the 
postmaster general may take into consideration such factors, including 
the recommendations of the Citizens' Stamp Advisory Committee, as the 
postmaster general determines are appropriate. The decision of the 
postmaster general shall be the final agency decision.
    (g) The Office of Stamp Services will notify each executive agency 
in writing of a decision designating that agency as a recipient of 
funds from a semipostal stamp.
    (h) As either a separate matter, or in combination with 
recommendations on a cause and recipient executive agencies, the 
Citizens' Stamp Advisory Committee may recommend to the postmaster 
general a design (i.e., artwork) for the semipostal stamp. The 
postmaster general will make a final decision on the design to be 
featured.
    (i) The decision of the postmaster general to exercise the Postal 
Service's discretionary authority to issue a semipostal stamp is final 
and not subject to challenge or review.
0
3. Revise Sec.  551.4 to read as follows:


Sec.  551.4  Submission requirements and selection criteria.

    (a) Proposals on recipient executive agencies and causes must 
satisfy the following requirements:
    (1) Interested persons must timely submit the proposal by U.S. Mail 
to the Office of Stamp Services, Attn: Semipostal Discretionary 
Program, 475 L'Enfant Plaza SW., Room 3300, Washington, DC 20260-3501, 
or in a single Adobe Acrobat (.pdf) file sent by email to 
[email protected]. Indicate in the Subject Line: Semipostal 
Discretionary Program. For purposes of this section, interested persons 
include, but are not limited to, individuals, corporations, 
associations, and executive agencies under 5 U.S.C. 105.
    (2) The proposal must be signed by the individual or a duly 
authorized representative and must provide the mailing address, phone 
number, fax number (if available), and email address of a designated 
point of contact.
    (3) The proposal must describe the cause and the purposes for which 
the funds would be used.
    (4) The proposal must demonstrate that the cause to be funded has 
broad national appeal, and that the cause is in the national public 
interest and furthers human welfare. Respondents are encouraged to 
submit supporting documentation demonstrating that funding the cause 
would benefit the national public interest.
    (5) The proposal must include a letter from an executive agency or 
agencies on agency letterhead representing that:
    (i) It is an executive agency as defined in 5 U.S.C. 105,
    (ii) It is willing and able to implement the proposal, and
    (iii) It is willing and able to meet the requirements of the 
Semipostal Authorization Act, if it is selected. The letter must be 
signed by a duly authorized representative of the agency.
    (6) (i) A proposal may designate one or two recipient executive 
agencies to receive funds, but if more than one executive agency is 
proposed, the proposal must specify the percentage shares of 
differential revenue, net of the Postal Service's reasonable costs, to 
be given to each agency. If percentage shares are not specified, it is 
presumed that the proposal intends that the funds be split evenly 
between the agencies. If more than two recipient executive agencies are 
proposed to receive funds and the proposal is selected, the postmaster 
general will provide the recipient executive agencies with an 
opportunity to jointly decide which two agencies will receive funds. If 
the agencies are unable to reach a joint decision within 20 days, the 
postmaster general shall either decide which two agencies will receive 
funds or select another proposal.
    (ii) If more than one proposal is submitted for the same cause, and 
the

[[Page 11166]]

proposals would have different executive agencies receiving funds, the 
funds may be evenly divided among the executive agencies, with no more 
than two agencies being designated to receive funds, as determined by 
the postmaster general.
    (b) Proposals become the property of the Postal Service and are not 
returned to interested persons who submit them. Interested persons who 
submit proposals are not entitled to any remuneration, compensation, or 
any other form of payment, whether their proposals are selected or not, 
for any reason.
    (c) The following persons may not submit proposals:
    (1) Employees of the United States Postal Service;
    (2) Any contractor of the Postal Service that may stand to benefit 
financially from the Semipostal Stamp Program; or
    (3) Members of the Citizens' Stamp Advisory Committee and their 
immediate families, and contractors of the Postal Service, and their 
immediate families, who are involved in any decision-making related to 
causes, recipient agencies, or artwork for the Semipostal Stamp 
Program.
    (d) Consideration for evaluation will not be given to proposals 
that request support for any of the following: Anniversaries; public 
works; people; specific organizations or associations; commercial 
enterprises or products; cities, towns, municipalities, counties, or 
secondary schools; hospitals, libraries, or similar institutions; 
religious institutions; causes that do not further human welfare; or 
causes determined by the Postal Service or the Citizens' Stamp Advisory 
Committee to be inconsistent with the spirit, intent, or history of the 
Semipostal Authorization Act.
    (e) Artwork and stamp designs may not be submitted with proposals.
0
5. Revise Sec.  551.5 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 Office of Stamp 
Services will determine the date of commencement of the 10-year period.
    (b) The Postal Service will offer only one discretionary semipostal 
stamp for sale at any given time during the 10-year period, although a 
discretionary semipostal stamp may be offered for sale at the same time 
as one or more congressionally mandated semipostal stamps.
    (c) The sales period for any given discretionary semipostal stamp 
is limited to no more than two years, as determined by the Office of 
Stamp Services.
    (d) Prior to or after the issuance of a given discretionary 
semipostal stamp, the Postal Service may withdraw the semipostal stamp 
from sale, or to reduce the sales period, if, inter alia:
    (1) Its sales or revenue statistics are lower than expected,
    (2) The sales or revenue projections are lower than expected, or
    (3) The cause or recipient executive agency does not further, or 
does not comply with, the statutory purposes or requirements of the 
Semipostal Authorization Act.
0
6. Revise Sec.  551.6 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[supreg] single-
piece stamped first-ounce rate of postage will be considered the rate 
of postage that would otherwise regularly apply.
    (b) The prices of semipostal stamps are determined by the Governors 
of the United States Postal Service in accordance with the requirements 
of 39 U.S.C. 416.

Stanley F. Mires,
Attorney, Federal Compliance.
[FR Doc. 2016-04646 Filed 3-2-16; 8:45 am]
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