[Federal Register Volume 87, Number 134 (Thursday, July 14, 2022)]
[Rules and Regulations]
[Pages 42074-42075]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-14959]
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POSTAL REGULATORY COMMISSION
39 CFR Part 3065
[Docket No. RM2020-4; Order No. 6221]
RIN 3211-AA26
Market Dominant Products
AGENCY: Postal Regulatory Commission.
ACTION: Final rule.
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SUMMARY: The Commission is adopting rules that describe when the letter
monopoly does not apply to a mailpiece.
DATES: Effective August 15, 2022.
ADDRESSES: For additional information, Order No. 6221 can be accessed
electronically through the Commission's website at https://www.prc.gov.
FOR FURTHER INFORMATION CONTACT: David A. Trissell, General Counsel, at
202-789-6820.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Background
II. Basis and Purpose of Final Rules
III. Final Rules
I. Background
The Postal Service has exclusive rights in the carriage and
delivery of letters under certain circumstances. This letter monopoly
is codified in the Private Express Statutes (PES), which are a group of
civil and criminal statutes that make it unlawful for any entity other
than the Postal Service to send or carry letters. See 18 U.S.C. 1693-
1699; 39 U.S.C. 601-606.\1\
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\1\ Although these provisions of the U.S. Code are customarily
referred to collectively as the ``Private Express Statutes,'' they
do not all relate to private expresses or prohibit carriage of
letters out of the mails.
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Section 601 provides specific instances (exceptions) where letters
may be carried out of the mail (i.e., not subject to the letter
monopoly). These statutory exceptions include letters charged more than
six times the current rate for the first ounce of a single-piece first
class letter and letters weighing more than 12.5 ounces. See 39 U.S.C.
601(b)(1), (b)(2). A ``grandfather clause'' in Section 601(b)(3) also
references exceptions from prior Postal Service policies and
regulations. The statute also directs the Commission to promulgate any
regulations necessary to carry out this section. See 39 U.S.C. 601(c).
II. Basis and Purpose of Final Rules
The Commission initiated this proceeding to determine whether
regulations promulgated by the Commission may be necessary to carry out
the requirements of 39 U.S.C. 601.\2\ The Commission received a wide
range of comments in response to Order No. 5422, but found it necessary
to gather more information before promulgating regulations under
Section 601. Thus, the Commission held this docket in abeyance and
initiated a public inquiry seeking further input from the public.\3\
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\2\ Advance Notice of Proposed Rulemaking to Consider
Regulations to Carry Out the Statutory Requirements of 39 U.S.C.
601, February 7, 2020 (Order No. 5422).
\3\ See Order Holding Rulemaking in Abeyance, July 2, 2021
(Order No. 5929); Docket No. PI2021-2, Notice and Order Providing an
Opportunity to Comment on Regulations Pertaining to 39 U.S.C. 601,
July 2, 2021 (Order No. 5930).
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Based on the comments received in this docket and the comments
received in Docket No. PI2021-2, the Commission filed a notice of
proposed rulemaking proposing new regulations necessary to carry out
Section 601.\4\ Having received adequate input from the public in order
to propose regulations in this docket, the Commission issued an order
closing the public inquiry docket.\5\
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\4\ Notice of Proposed Rulemaking for Regulations Pertaining to
Section 601, November 24, 2021 (Order No. 6047).
\5\ See Docket No. PI2021-2, Order Closing Docket, November 24,
2021 (Order No. 6046).
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Based on input from commenters and to maintain stability in the
mailing industry, the Commission found that no substantive regulations
were necessary at that time. Nonetheless, the Commission found it
necessary to issue regulations that provide some clarity on the Section
601, and its relationship with the Postal Service's regulations. The
Commission also found it necessary to provide a process for the public
to seek clarification of the statute or the letter monopoly should the
need arise in the future.
The final rules incorporate many of the suggestions identified by
commenters, as well as additional clarifying language added by the
Commission; however, the substance of the rules remains unchanged.
To clarify the rule proposed Sec. 3065.1(a), the Commission
accepts the Postal Service's suggested modifications and amends Sec.
3065.1(a).
The Commission adopts proposed Sec. 3065.1(b) without any
modification, explaining that the rule will track the language of the
statute in the rule.
The Commission finds that the text of proposed Sec. 3065.2 may
unintentionally limit the Postal Service's ability to perform its
ordinary operations and introduce confusion where the Commissions
wishes to maintain stability.\6\ Based on concerns from TBC and the
Postal Service, the Commission removes the words ``issue guidance''
from the text of the rules.
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\6\ See Order No. 6047 at 16 (describing commenter concern about
substantive changes and expressing an intention to maintain
stability).
Finally, no commenter proposed changes to proposed Sec. 3065.3,
which provides procedures for parties seeking clarification or
interpretation of the statute or regulations concerning Section 601,
and thus, the Commission adopts the proposed rule without modification.
III. Final Rules
The Commission adopts regulations necessary to carry out 39 U.S.C.
601 and places them in a new section in 39 CFR part 3065.
List of Subjects for 39 CFR Part 3020
Administrative practice and procedure, Postal Service.
0
For the reasons stated in the preamble, the Commission amends chapter
III of title 39 of the Code of Federal Regulations by adding part 3065
to read as follows:
PART 3065--RULES FOR LETTERS CARRIED OUT OF THE MAIL
Sec.
3065.1 Applicability and scope.
3065.2 Prohibition on new regulations.
3065.3 Procedure for seeking clarification or interpretation.
Authority: 39 U.S.C. 503, 601.
Sec. 3065.1 Applicability and scope.
(a) The rules in this part implement 39 U.S.C. 601, which describes
certain circumstances in which letters may be carried out of the mail.
(b) Notwithstanding placement in Postal Service chapter I of this
title, the following provisions in parts 310 and 320 of this title are
within the scope of this part and the Commission has the authority to
interpret them:
(1) Section 310.1 of this title;
(2) Sections 310.2(b)(1) and (2) of this title; and
(3) Sections 320.1 through 320.8 of this title.
(c) In the event of a conflict between 39 U.S.C. 601 and applicable
regulations
[[Page 42075]]
under parts 310 and 320 of this title, 39 U.S.C. 601 shall supersede
any other generally applicable requirements.
Sec. 3065.2 Prohibition on new regulations.
(a) The Postal Service may not promulgate any new regulations or
enter into agreements purporting to suspend or otherwise define the
scope of the letter monopoly.
(b) The Postal Service may not promulgate any new regulations
purporting to interpret 39 U.S.C. 601.
(c) The Commission has the sole authority to promulgate new
regulations necessary to carry out 39 U.S.C. 601.
Sec. 3065.3 Procedure for seeking clarification or interpretation.
(a) The Commission may, on its own motion, initiate a proceeding
under this subpart pursuant to Sec. 3010.201(a) of this chapter.
(b) The Commission may provide interpretation of these regulations
or 39 U.S.C. 601 upon:
(1) A party's request to initiate a rulemaking proceeding with the
Commission pursuant to the requirements of Sec. 3010.201(b) of this
chapter; or
(2) A party's request for an advisory opinion from the General
Counsel.
By the Commission.
Erica A. Barker,
Secretary.
[FR Doc. 2022-14959 Filed 7-13-22; 8:45 am]
BILLING CODE 7710-FW-P