[Federal Register Volume 81, Number 76 (Wednesday, April 20, 2016)]
[Rules and Regulations]
[Pages 23162-23164]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-09081]


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POSTAL SERVICE

39 CFR Part 551


Semipostal Stamp Program

AGENCY: Postal ServiceTM.

ACTION: Final rule.

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SUMMARY: This final rule revises 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 
also removes certain restrictions on the commencement date for the 
Postal Service's discretionary Semipostal Stamp Program, and clarifies 
how many semipostal stamps issued under that program may be on sale at 
any one time.

DATES: This rule is effective on: May 20, 2016.

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

SUPPLEMENTARY INFORMATION:

Publication of Proposed Rule

    The Semipostal Authorization Act, Public Law 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 March 3, 
2016, the Postal Service published and requested comments concerning a 
detailed revision of the rules concerning the discretionary Semipostal 
Stamp Program, as set forth in 39 CFR part 551 (81 FR 11164). As 
summarized below, these changes are designed to facilitate the smooth 
and efficient operation of the discretionary Semipostal Stamp Program.

Revisions

    The revision of Sec.  551.3 streamlines and simplifies the 
selection of 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 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 revision of Sec.  551.5(a) removes 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 would commence 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. As revised, 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 revision of Sec.  551.5(b) clarifies 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). As revised, the one-at-a-time limitation 
on the sale of semipostal stamps applies only to discretionary program 
semipostal stamps.
    To minimize confusion regarding applicable postage rates, the 
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.''

Comments and Response

    The Postal Service received three comments in response to the 
proposed

[[Page 23163]]

rule. All three comments supported the discretionary Semipostal Stamp 
Program, but suggested that the Postal Service should issue only one 
semipostal stamp for the entire ten-year duration of the program. The 
Postal Service believes that the public interest would be better served 
by issuing five different semipostal stamps for two years each during 
the ten-year period, and has determined to adopt the amendments to 39 
CFR part 551 as proposed.

List of Subjects in 39 CFR Part 551

    Administrative practice and procedure.

    For the reasons stated in the preamble, the Postal Service hereby 
amends 39 CFR part 551 as follows:

PART 551--[AMENDED]

0
1. The authority citation for 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 20, 
2016. The Office of Stamp Services will begin considering proposals on 
July 5, 2016. 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 seven years after May 20, 2016. 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 20, 2016 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 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

[[Page 23164]]

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. 2016-09081 Filed 4-19-16; 8:45 am]
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