[Federal Register Volume 87, Number 57 (Thursday, March 24, 2022)]
[Proposed Rules]
[Pages 16702-16703]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-05357]


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POSTAL SERVICE

39 CFR Part 111


Periodicals Requester Records Requirements

AGENCY: Postal ServiceTM.

ACTION: Proposed rule.

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SUMMARY: The Postal Service proposes to amend Mailing Standards of the 
United States Postal Service, Domestic Mail Manual (DMM[supreg]) to 
revise verification requirements for authorized audit bureaus.

DATES: Comments must be received on or before April 25, 2022.

ADDRESSES: Comments may be mailed or delivered to Dale Kennedy 
(Director, Product Classification), United States Postal Service, 475 
L'Enfant Plaza SW, Washington, DC 20260-1101; or submitted to 
[email protected]. Faxed comments will not be accepted.
    All written comments may be inspected and photocopied, by 
appointment only, at Postal Service Headquarters Library, 475 L'Enfant 
Plaza SW, 11th Floor North, Washington, DC. These records will be 
available for review Monday through Friday, 9 a.m.-4 p.m., by calling 
202-268-2906. All submitted comments and attachments are part of the 
public record and subject to disclosure. Do not enclose any material in 
your comments that you consider to be confidential or inappropriate for 
public disclosure.

FOR FURTHER INFORMATION CONTACT: Dale Kennedy at (202) 268-6592.

SUPPLEMENTARY INFORMATION: The Postal Service is publishing this notice 
of proposed rulemaking to enact new procedures for auditing compliance 
with circulation standards for Periodicals requester publications and 
standardize existing procedures across Postal Service publications. The 
Postal Service is also using this opportunity to update its listing of 
authorized audit bureaus for Periodicals verification and requests each 
authorized audit bureau notify the Postal Service to confirm its 
status.
    Domestic Mail Manual (DMM) 207.6.4.2a provides that a Periodicals 
requester publication must have a legitimate list of persons who have 
requested the publication and 50% or more of the copies must be 
distributed to persons making such requests. Publishers can use a 
variety of records to verify each publication sent at the Periodicals 
rate is distributed to a legitimate list of requesters, including 
``Individual and bulk orders for subscriptions and nonsubscriber 
copies.'' DMM 207.8.1.4b. The Postal Service interprets DMM 207.8.1.4b 
to encompass written proof in the form of email communications, 
telephone, or internet. Customer Support Ruling (CSR) PS-054 (207.6.4). 
The Postal Service now proposes to clarify that it will extend that 
interpretation to text messages as well, given the growth in text 
message communication.
    If, after public comment, the Postal Service decides to extend the 
interpretation in such manner, it will update CSR PS-054 to add 
procedures for the evaluation of text message requests. In addition, 
the Postal Service will make conforming changes in a new section E-0.4 
to Appendix E of DM-204 to notify audit bureaus of its verification 
requirements for text messages and throughout DM-203 to standardize 
records retention requirements and to add Text Message requests. 
Finally, the Postal Service plans to remove a reference to Form 3845 in 
CSR PS-054, which is no longer in use.
    The Postal Service also authorizes audit bureaus to conduct 
verifications of circulation for applications for Periodicals mailing 
privileges. DMM 207.8.2.2. The list of audit bureaus authorized to 
verify circulation of Periodicals publication are listed in CSR PS-054. 
However, the Postal Service currently has limited visibility into each 
audit bureau's procedures for verification of publisher records. 
Because disparate practices between different authorized audit bureaus 
could lead to inconsistent enforcement of the Postal Service's 
verification requirements, the Postal Service proposes an update to the 
DMM explicitly reserving to the Postal Service the right to review each 
authorized audit bureau's policies and procedures and periodically 
inspect each bureau for compliance.
    The Postal Service also proposes an update to DMM 207.8.1.3 to add 
record retention requirements for authorized audit bureaus. Publishers 
are required to keep circulation records for 3 years following the 
issue date of the publication. DMM 207.8.1.3. The Postal Service's 
proposed update to DMM 207.8.1.3 would impose a similar requirement on 
authorized audit bureaus and require publishers to retain records for 
paid subscribers for 12 months.
    If the Postal Service adopts the proposed DMM changes, it will make 
conforming updates in CSR PS-054 and Handbook DM-204 (Applying for 
Periodicals Mailing Privilege) to add minimum requirements for 
acceptance of text (SMS and MMS) messages for the purpose of auditing 
Periodicals requests. The Postal Service will also publish an 
appropriate amendment to 39 CFR part 111 to reflect these changes if 
this proposal is adopted.
    Finally, the Postal Service believes that its agreements with 
authorized independent audit bureaus are out of date and is therefore 
reviewing those agreements. Once this rulemaking is concluded, the 
Postal Service will decide whether to renegotiate the agreements to 
bring them up to date and would then publish a new list of authorized 
audit bureaus in CSR PS-054.
    The Postal Service proposes the following changes to Mailing 
Standards of the United States Postal Service, Domestic Mail Manual 
(DMM), incorporated by reference in the Code of Federal Regulations. 
See 39 CFR 111.1.

List of Subjects in 39 CFR Part 111

    Administrative practice and procedure, Postal Service.

    Accordingly, 39 CFR part 111 is amended as follows:

PART 111--[AMENDED]

0
1. The authority citation for 39 CFR part 111 continues to read as 
follows:

    Authority:  5 U.S.C. 552(a); 13 U.S.C. 301-307; 18 U.S.C. 1692-
1737; 39 U.S.C. 101, 401-404, 414, 416, 3001-3018, 3201-3220, 3401-
3406, 3621, 3622, 3626, 3629, 3631-3633, 3641, 3681-3685, and 5001.

0
2. Revise the Mailing Standards of the United States Postal Service, 
Domestic Mail Manual (DMM) as follows:

Mailing Standards of the United States Postal Service, Domestic Mail 
Manual (DMM)

* * * * *

[[Page 16703]]

200 Commercial Mail Letters, Flats, and Parcels

* * * * *

207 Periodicals

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8.0 Record Keeping Standards for Publishers

* * * * *

8.1 Basic Standards

* * * * *
    [Revise 8.1.3 to read as follows:]

8.1.3 Retention

    The publisher must keep records for each issue of a publication for 
3 years from its issue date, except for circulation records for general 
or requester publications for which USPS verification of circulation is 
done by a USPS-authorized audit bureau. In addition, the publisher must 
retain records for paid subscribers for 12 months following the issue 
date. A publisher whose records are verified by an authorized audit 
bureau is not required to keep source records of requests and 
subscriptions longer than required by the audit bureau, provided, 
however, the authorized audit bureau shall be required to retain 
records related to such requests and subscriptions for 3 years 
following each issue date.

8.2 Verification

* * * * *
    [Revise 8.2.2 to read as follows:]

8.2.2 Authorized Verification

    USPS employees or an authorized audit bureau may conduct 
verifications of circulation for an application for Periodicals mailing 
privileges, reentry application, or other required circulation 
verification of general or requester publications, provided, however, 
that the Postal Service will have the authority to review audit 
procedures upon request. In addition, the Postal Service reserves the 
right to verify each audit bureau's compliance with such audit 
procedures. The Postal Service shall have the authority to revoke any 
audit bureau's authorization to conduct verifications if it finds such 
audit bureau has failed to follow approved audit procedures.

Joshua J. Hofer,
Attorney, Ethics & Legal Compliance.
[FR Doc. 2022-05357 Filed 3-23-22; 8:45 am]
BILLING CODE P