83_FR_52354 83 FR 52154 - Mail Preparation Changes

83 FR 52154 - Mail Preparation Changes

POSTAL REGULATORY COMMISSION

Federal Register Volume 83, Issue 200 (October 16, 2018)

Page Range52154-52157
FR Document2018-22477

The Commission adopts a final rule concerning mail preparation changes. The rule as adopted removes reference to procedures relying on the existence of a substantive standard for mail preparation changes in response to the recent decision in United States Postal Serv. v. Postal Reg. Comm'n, 886 F.3d 1253 (D.C. Cir. 2018).

Federal Register, Volume 83 Issue 200 (Tuesday, October 16, 2018)
[Federal Register Volume 83, Number 200 (Tuesday, October 16, 2018)]
[Rules and Regulations]
[Pages 52154-52157]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-22477]


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POSTAL REGULATORY COMMISSION

39 CFR Part 3010

[Docket No. RM2016-6; Order No. 4850]


Mail Preparation Changes

AGENCY: Postal Regulatory Commission.

ACTION: Final rule.

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SUMMARY: The Commission adopts a final rule concerning mail preparation 
changes. The rule as adopted removes reference to procedures relying on 
the existence of a substantive standard for mail preparation changes in 
response to the recent decision in United States Postal Serv. v. Postal 
Reg. Comm'n, 886 F.3d 1253 (D.C. Cir. 2018).

DATES: Effective November 15, 2018.

FOR FURTHER INFORMATION CONTACT: David A. Trissell, General Counsel, at 
202-789-6820.

SUPPLEMENTARY INFORMATION:

[[Page 52155]]

Table of Contents

I. Introduction
II. Background
III. Review of Comments
IV. Commission Analysis
V. Regulatory Flexibility Act Analysis
VI. Ordering Paragraphs

I. Introduction

    In this Order, the Commission adopts a final rule concerning mail 
preparation changes. The final rule partially rescinds an existing 
Commission rule and is located at 39 CFR part 3010. The rule as adopted 
removes reference to procedures relying on the existence of a 
substantive standard for mail preparation changes in response to the 
recent decision in United States Postal Serv. v. Postal Reg. Comm'n, 
886 F.3d 1253 (D.C. Cir. 2018).

II. Background

    In Order No. 3047, the Commission developed a substantive standard 
to determine when a mail preparation change would constitute a ``change 
in rates'' under 39 U.S.C. 3622.\1\ The standard established by the 
Commission in Order No. 3047 provided that mail preparation changes 
could have rate effects when they resulted in the deletion or 
redefinition of a rate cell as set forth by Sec.  3010.23(d)(2).
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    \1\ The standard in Order No. 3047 was developed in response to 
remand from the United States Court of Appeals for the District of 
Columbia (the Court) in United States Postal Serv. v. Postal Reg. 
Comm'n, 785 F.3d 740 (D.C. Cir. 2015). For a complete history of the 
proceedings underlying the Commission's promulgation of a standard 
for mail preparation changes, see Docket No. R2013-10, Order on 
Price Adjustments for Market Dominant Products and Related Mail 
Classification Changes, November 21, 2013, at 5-35 (Order No. 1890); 
Docket No. R2013-10R, Order Resolving Issues on Remand, January 22, 
2016 (Order No. 3047); Docket No. R2013-10R, Order Resolving Motion 
for Reconsideration of Commission Order No. 3047, July 20, 2016 
(Order No. 3441).
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    In conjunction with Order No. 3047, the Commission initiated a 
rulemaking proceeding to develop procedures to ensure that the Postal 
Service properly applies the Commission's standard when making a 
determination of whether a mail preparation change has a rate 
effect.\2\ The final rule created a process that required the Postal 
Service to: (1) Provide public notice of all mail preparation changes 
in a single source; (2) affirmatively designate whether or not a change 
to a mail preparation requirement implicates the price cap; and (3) 
show by a preponderance of the evidence, if the designation is 
challenged, that the price cap does not apply to the change.\3\ The 
Postal Service filed petitions for review challenging the Commission's 
standard in Order No. 3047 and the final rule in Order No. 4393.
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    \2\ Order Adopting Final Procedural Rule for Mail Preparation 
Changes, January 25, 2018, at 22-23 (Order No. 4393). The Order 
Adopting Final Procedural Rule for Mail Preparation Changes was 
published in the Federal Register on February 1, 2018. See 83 FR 
4585 (Feb. 1, 2018).
    \3\ See Petition for Review, United States Postal Serv. v. 
Postal Reg. Comm'n, 886 F.3d 1253 (D.C. Cir. 2018); Petition for 
Review, United States Postal Serv. v. Postal Reg. Comm'n, No. 18-
1059 (D.C. Cir. Feb. 26, 2018).
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    Shortly after the Commission adopted the final rule in this docket, 
the Court issued its decision in United States Postal Serv. v. Postal 
Reg. Comm'n, 886 F.3d 1253 (D.C. Cir. 2018) vacating the Commission's 
standard in Order No. 3047. In response to the Court's decision, the 
Commission and the Postal Service filed a joint motion to remand the 
petition for review of the final rule back to the Commission for 
further proceedings.\4\
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    \4\ See Unopposed Motion to Remand Case, United States Postal 
Serv. v. Postal Reg. Comm'n, No. 18-1059 (D.C. Cir. May 10, 2018).
---------------------------------------------------------------------------

    On August 9, 2018, the Commission issued the notice of proposed 
rulemaking (NPR), setting forth a proposed rescission to the rule set 
forth in Sec.  3010.23(d)(5) that created procedures concerning mail 
preparation changes.\5\ The NPR also provided an opportunity for public 
comment. Order No. 4751 at 5. The Commission proposed removing the 
components of the rule that require existence of a standard in order to 
be enforced, specifically: (1) The affirmative designation requirement; 
and (2) the evidentiary standard. Id. at 4. As explained in the NPR, 
both the affirmative designation and evidentiary burden parts of the 
rule were predicated on the existence of a substantive standard. Id. As 
that standard was vacated and a new standard does not yet exist, the 
proposed rule removed the affirmative designation requirement and 
evidentiary burden component from paragraph (d)(5) of this section. In 
the NPR, the Commission proposed to retain the publication requirement 
of the rule as it would remain independent of any standard. Id.
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    \5\ Notice of Proposed Rulemaking, August 9, 2018 (Order No. 
4751). On the same day, the Commission filed an advance notice of 
proposed rulemaking (ANPR) to seek proposals for a new standard and 
process to determine when a mail preparation change requires price 
cap compliance in accordance with the Court's decision vacating the 
standard. Docket No. RM2018-11, Advance Notice of Proposed 
Rulemaking, August 9, 2018 (Order No. 4750). The ANPR was published 
in the Federal Register, see 83 FR 40485 (Aug. 15, 2018).
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III. Review of Comments

    On September 13, 2018, the Commission received comments in response 
to the NPR from the Association for Postal Commerce (PostCom), the 
Postal Service, and the Public Representative.\6\
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    \6\ Comments of the Association for Postal Commerce, September 
13, 2018 (PostCom Comments); United States Postal Service Comments 
on Notice of Proposed Rulemaking, September 13, 2018 (Postal Service 
Comments); Public Representative Comments on Notice of Proposed 
Rulemaking, September 13, 2018 (PR Comments).
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    PostCom Comments. PostCom supports the premise behind partial 
rescission of the rule, acknowledging that the rule referencing a 
standard ``cannot be enforced in the absence of a standard.'' PostCom 
Comments at 1. However, PostCom does not support rescission of the rule 
at this time. Id. Instead, PostCom suggests the Commission 
``temporarily suspend enforcement of the portion of the rule that the 
Commission is proposing to eliminate.'' Id.
    To support its request for the Commission to temporarily suspend 
enforcement of the rule as opposed to rescission through rulemaking, 
PostCom points to the Commission's intention to develop an appropriate 
standard in a separate rulemaking.\7\ PostCom submits that elimination 
of the portion of the rule relying on a substantive standard is 
unnecessary because the current procedures ``will apply equally well to 
the final standard established by the Commission.'' PostCom Comments at 
2. PostCom states that the procedures only rely on the ``existence of'' 
a substantive standard and not the contents of that substantive 
standard. Id. at 3. PostCom points to the fact that the Commission 
itself indicated the separation between the substantive standard and 
the applicability of the final procedural rule, noting that the 
Commission stated that the Court's disagreement with the substantive 
standard would not affect the final rule. Id. As a result, PostCom 
submits that it is ``imprudent to eliminate these procedures at this 
time'' and that elimination of the rule now will only require more 
rulemaking in the future should the Commission set a new standard. Id.
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    \7\ Id. at 2 (citing Order No. 4751 at 4; Order No. 4750).
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    Postal Service Comments. The Postal Service supports partial 
rescission of the rule that relies on existence of a substantive 
standard. Postal Service Comments at 1-3. In the Postal Service's view, 
``compliance with the procedural rule necessarily would require 
application of the substantive standard'' for mail preparation changes. 
Id. at 2. The Postal Service agrees with the Commission's proposal to 
rescind the portion of the rule that ``requires the

[[Page 52156]]

Postal Service affirmatively to designate whether a given mail 
preparation change requires compliance with the price cap rules'' and 
the portion concerning the evidentiary burden. Id.
    The Postal Service also indicates that it has already complied with 
the publication requirement that the Commission proposes to retain in 
the rule. Id. at 3.
    Public Representative Comments. The Public Representative supports 
the Commission's proposal to rescind portions of the procedural rule 
concerning mail preparation changes ``subject to reinstatement 
depending upon the outcome of the Commission's review of the applicable 
standard for determining whether a rate increase is in compliance with 
Sec.  3010.23(d)(2).'' PR Comments at 1-2.
    He notes that it would be futile to require the Postal Service to 
affirmatively designate whether a change requires compliance with Sec.  
3010.23(d)(2) when there is no standard to measure compliance. Id. at 
7. With respect to the evidentiary portion of the rule, requiring the 
Postal Service to provide by a preponderance of the evidence that a 
mail preparation change does not require compliance with Sec.  
3010.23(d)(2), he contends that compliance with this provision would be 
``a very difficult proposition without any standard to serve as a 
target.'' Id. at 8. Further, parties would be ``unable to determine the 
information needed to rebut the Postal Service's determination'' 
without an operative standard. Id.
    The Public Representative also supports the Commission's retention 
of the single source reporting requirement. Id. at 5-6.

IV. Commission Analysis

    The comments reflect general support for the removal of portions of 
the procedural rule concerning mail preparation changes that rely on 
the existence of a substantive standard. PostCom suggests an 
alternative procedure to temporarily suspend enforcement of the rule as 
opposed to formally rescinding portions of this rulemaking.
    When promulgating the final rule concerning mail preparation 
changes, the Commission intended for it to apply regardless of how the 
Court modified the standard. Order No. 4393 at 14. However, the Court 
did not modify the standard, it vacated it in its entirety. The 
components of the procedural rule in Sec.  3010.23(d)(5) requiring the 
Postal Service to provide an affirmative designation of compliance and 
setting an evidentiary burden require the existence of a standard. 
While the Commission has initiated an advance notice of proposed 
rulemaking to gather proposals for a new standard, the Commission 
cannot predict the outcome of those proceedings. See Order No. 4750.
    Although PostCom may be correct that a temporary suspension of a 
procedural rule is within the Commission's authority, a rulemaking is 
more appropriate for the present situation. As this procedural rule was 
promulgated via notice and comment rulemaking, the Commission will use 
the same process to rescind a major portion of the rule.\8\
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    \8\ See Perez v. Mortgage Bankers Ass'n, 135 S.Ct. 1199, 1206 
(2015) (citing F.C.C. v. Fox Television Stations, Inc., 556 U.S. 
502, 515 (2009) (Section 1 of the Administrative Procedure Act 
mandates that ``agencies use the same procedures when they amend or 
repeal a rule as they used to issue the rule in the first 
instance.'')).
---------------------------------------------------------------------------

    Accordingly, the Commission adopts a final rule that rescinds two 
components of the rule requiring an affirmative designation and 
evidentiary burden. For the affirmative designation portion of the 
rule, the Postal Service would be unable to designate whether a 
particular mail preparation change requires compliance with Sec.  
3010.23(d)(2) because it no longer has a standard to apply to determine 
compliance. Similarly, the Postal Service could not show it made a 
correct determination by a preponderance of the evidence without having 
a standard. Parties would also be unable to rebut the Postal Service's 
determination with information absent a standard. For these reasons, 
removing those portions of the rule is appropriate.
    The remaining part of the rule requires the Postal Service to 
provide published notice of all mail preparation changes in a single 
source. The Commission retains this portion of the rule because it 
provides notice and transparency for all mail preparation changes and 
does not rely on existence of a standard.\9\ As noted in the NPR, the 
Postal Service has complied with this requirement and the Postal 
Service states in its comments that it will continue to comply with 
this portion of the rule. Accordingly, the Commission revises Sec.  
3010.23(d)(5) to require the Postal Service to publish notice of all 
mail preparation changes in a single, publically available source.
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    \9\ See also Order No. 4393 at 8-10 (justification for the 
reporting requirement).
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V. Regulatory Flexibility Act Analysis

    The Regulatory Flexibility Act requires federal agencies, in 
promulgating rules, to consider the impact of those rules on small 
entities. See 5 U.S.C. 601, et seq. (1980). If the proposed or final 
rules will not, if promulgated, have a significant economic impact on a 
substantial number of small entities, the head of the agency may 
certify that the initial and final regulatory flexibility analysis 
requirements of 5 U.S.C. 603 and 604 do not apply. See 5 U.S.C. 605(b).
    The Commission's primary responsibility is in the regulatory 
oversight of the United States Postal Service. The rules that are the 
subject of this rulemaking have an impact on participation in 
Commission proceedings, but impose no further financial obligation upon 
any entity. For entities other than the United Stated Postal Service, 
participation is strictly voluntary. Based on these findings, the 
Chairman of the Commission certifies that the rules that are the 
subject of this rulemaking will not have a significant economic impact 
on a substantial number of small entities. Therefore, pursuant to 5 
U.S.C. 605(b), this rulemaking is exempt from the initial and final 
regulatory flexibility analysis requirements of 5 U.S.C. 603 and 604.

VI. Ordering Paragraphs

    It is ordered:
    1. Part 3010 of title 39, Code of Federal Regulations, is revised 
as set forth below the signature of this Order, effective 30 days after 
publication in the Federal Register.
    2. The Secretary shall arrange for publication of this Order in the 
Federal Register.

    By the Commission.
Stacy L. Ruble,
Secretary.

List of Subjects in 39 CFR Part 3010

    Administrative practice and procedure, Postal Service.

    For the reasons discussed in the preamble, the Commission amends 
chapter III of title 39 of the Code of Federal Regulations as follows:

Part 3010--REGULATION OF RATES FOR MARKET DOMINANT PRODUCTS

0
1. The authority citation of part 3010 continues to read as follows:

    Authority: 39 U.S.C. 503; 3662.


0
2. Amend Sec.  3010.23 by revising paragraph (d)(5) to read as follows:


Sec.  3010.23   Calculation of percentage change in rates.

* * * * *
    (d) * * *
    (5) Procedures for mail preparation changes. The Postal Service 
shall

[[Page 52157]]

provide published notice of all mail preparation changes in a single, 
publicly available source. The Postal Service shall file notice with 
the Commission of the single source it will use to provide published 
notice of all mail preparation changes.
* * * * *
[FR Doc. 2018-22477 Filed 10-15-18; 8:45 am]
BILLING CODE 7710-FW-P



                                           52154            Federal Register / Vol. 83, No. 200 / Tuesday, October 16, 2018 / Rules and Regulations

                                              (2) A pre-1972 sound recording is a                     (h) Fee. The filing fee to submit a                   (3) A certification that the
                                           sound recording fixed before February                   schedule of pre-1972 sound recordings                 transmitting entity was publicly
                                           15, 1972.                                               pursuant to this section is prescribed in             performing pre-1972 sound recordings
                                              (c) Form and submission. A rights                    § 201.3(c).                                           by means of digital audio transmission
                                           owner seeking to comply with 17 U.S.C.                     (i) Third-party notification. A person             as of October 11, 2018.
                                           1401(f)(5)(A) must submit a schedule                    may request timely notification of                       (4) A certification that the individual
                                           listing the owner’s pre-1972 sound                      filings made under this section by                    submitting the notice has appropriate
                                           recordings using an appropriate form                    following the instructions provided by                authority to submit the notice and that
                                           provided by the Copyright Office on its                 the Copyright Office on its website.                  all information submitted to the Office
                                           website and following the instructions                  ■ 5. Add § 201.36 to read as follows:                 is true, accurate, and complete to the
                                           for completion and submission                                                                                 best of the individual’s knowledge,
                                           provided on the Office’s website or the                 § 201.36 Notices of contact information for           information, and belief, and is made in
                                           form itself. The Office may reject any                  transmitting entities publicly performing             good faith.
                                           submission that fails to comply with                    pre-1972 sound recordings.                               (5) The transmitting entity may opt to
                                           these requirements.                                        (a) General. This section prescribes               include alternate names for which the
                                              (d) Content. A schedule of pre-1972                  the rules under which transmitting                    transmitting entity seeks application of
                                           sound recordings shall contain the                      entities may file contact information                 17 U.S.C. 1401(f)(5)(B)(iii), such as
                                           following:                                              with the Copyright Office pursuant to 17              names that the public would be likely
                                              (1) For each sound recording listed,                 U.S.C. 1401(f)(5)(B).                                 to use to search for the transmitting
                                           the right’s owner name, sound recording                    (b) Definitions. For purposes of this              entity in the Copyright Office’s online
                                           title, and featured artist;                             section:                                              directory of transmitting entities
                                              (2) A certification that the individual                 (1) Unless otherwise specified, the                publicly performing pre-1972 sound
                                           submitting the schedule of pre-1972                     terms used have the meanings set forth                recordings by means of digital audio
                                           sound recordings has appropriate                        in 17 U.S.C. 1401.                                    transmission, including names under
                                           authority to submit the schedule and                       (2) A pre-1972 sound recording is a                which the transmitting entity is doing
                                           that all information submitted to the                   sound recording fixed before February                 business and other commonly used
                                           Office is true, accurate, and complete to               15, 1972.                                             names. Separate legal entities are not
                                           the best of the individual’s knowledge,                    (3) A transmitting entity is an entity             considered alternate names.
                                           information, and belief, and is made in                 that, as of October 11, 2018, publicly                   (e) Fee. The filing fee to submit a
                                           good faith.                                             performs pre-1972 sound recordings by                 notice of contact information pursuant
                                              (3) For each sound recording listed,                 means of digital audio transmission.                  to this section is prescribed in
                                           the rights owner may opt to include                        (c) Form and submission. A                         § 201.3(c).
                                           additional information as permitted and                 transmitting entity seeking to comply                    Dated: October 11, 2018.
                                           in the format specified by the Office’s                 with 17 U.S.C. 1401(f)(5)(B) must                     Karyn A. Temple,
                                           form or instructions, such as publication               submit contact information using an                   Acting Register of Copyrights and Director
                                           date, or alternate title information.                   appropriate form specified by the                     of the U.S. Copyright Office.
                                              (e) Transfer of rights ownership. If                 Copyright Office on its website and
                                                                                                                                                           Approved by:
                                           ownership of a pre-1972 sound                           following the instructions for
                                                                                                   completion and submission provided on                 Carla D. Hayden,
                                           recording changes after its inclusion in
                                           a schedule filed with the Office under                  the Office’s website or the form itself.              Librarian of Congress.
                                           this section, the Office will consider the              The Office may reject any submission                  [FR Doc. 2018–22518 Filed 10–15–18; 8:45 am]
                                           schedule to be effective as to any                      that fails to comply with these                       BILLING CODE 1410–30–P
                                           successor in interest. A successor in                   requirements. No notice or amended
                                           interest may, but is not required, to file              notice received after April 9, 2019 will
                                           a new schedule under this section.                      be accepted by the Office.                            POSTAL REGULATORY COMMISSION
                                              (f) Legal sufficiency of schedules. The                 (d) Content. A notice submitted under
                                           Copyright Office does not review                        paragraph (c) of this section shall                   39 CFR Part 3010
                                           schedules submitted under paragraph                     contain the following, in addition to any             [Docket No. RM2016–6; Order No. 4850]
                                           (c) of this section for legal sufficiency,              other information required on the
                                           interpret their content, or screen them                 Office’s form or website:                             Mail Preparation Changes
                                           for errors or discrepancies. The Office’s                  (1) The full legal name, email address,
                                           review is limited to whether the                        and physical street address of the                    AGENCY:    Postal Regulatory Commission.
                                           procedural requirements established by                  transmitting entity to which rights                   ACTION:   Final rule.
                                           the Office (including payment of the                    owners should send notifications of
                                                                                                                                                         SUMMARY:   The Commission adopts a
                                           proper filing fee) have been met. Rights                claimed violations of 17 U.S.C. 1401(a).
                                                                                                                                                         final rule concerning mail preparation
                                           owners are therefore cautioned to                       A post office box may not be substituted
                                                                                                                                                         changes. The rule as adopted removes
                                           review and scrutinize schedules to                      for the street address of a transmitting
                                                                                                                                                         reference to procedures relying on the
                                           assure their legal sufficiency before                   entity. Related or affiliated transmitting
                                                                                                                                                         existence of a substantive standard for
                                           submitting them to the Office.                          entities that are separate legal entities
                                                                                                                                                         mail preparation changes in response to
                                              (g) Filing date. The date of filing of a             (e.g., corporate parents and subsidiaries)
                                                                                                                                                         the recent decision in United States
                                           schedule of pre-1972 sound recordings                   are considered separate transmitting
                                                                                                                                                         Postal Serv. v. Postal Reg. Comm’n, 886
                                           is the date when a proper submission,                   entities, and each must file its own
amozie on DSK3GDR082PROD with RULES




                                                                                                                                                         F.3d 1253 (D.C. Cir. 2018).
                                           including the prescribed fee, is received               separate notice of contact information.
                                           in the Copyright Office. The filing date                                                                      DATES: Effective November 15, 2018.
                                                                                                      (2) The website(s) and/or
                                           may not necessarily be the same date                    application(s) through which the                      FOR FURTHER INFORMATION CONTACT:
                                           that the schedule, for purposes of 17                   transmitting entity publicly performs                 David A. Trissell, General Counsel, at
                                           U.S.C. 1401(f)(5)(A)(i)(II), is indexed                 pre-1972 sound recordings by means of                 202–789–6820.
                                           into the Office’s public records.                       digital audio transmission.                           SUPPLEMENTARY INFORMATION:



                                      VerDate Sep<11>2014   16:24 Oct 15, 2018   Jkt 247001   PO 00000   Frm 00040   Fmt 4700   Sfmt 4700   E:\FR\FM\16OCR1.SGM   16OCR1


                                                            Federal Register / Vol. 83, No. 200 / Tuesday, October 16, 2018 / Rules and Regulations                                                  52155

                                           Table of Contents                                       evidence, if the designation is                         response to the NPR from the
                                                                                                   challenged, that the price cap does not                 Association for Postal Commerce
                                           I. Introduction                                         apply to the change.3 The Postal Service                (PostCom), the Postal Service, and the
                                           II. Background                                          filed petitions for review challenging                  Public Representative.6
                                           III. Review of Comments                                 the Commission’s standard in Order No.                     PostCom Comments. PostCom
                                           IV. Commission Analysis
                                                                                                   3047 and the final rule in Order No.                    supports the premise behind partial
                                           V. Regulatory Flexibility Act Analysis
                                           VI. Ordering Paragraphs                                 4393.                                                   rescission of the rule, acknowledging
                                                                                                      Shortly after the Commission adopted                 that the rule referencing a standard
                                           I. Introduction                                         the final rule in this docket, the Court                ‘‘cannot be enforced in the absence of a
                                                                                                   issued its decision in United States                    standard.’’ PostCom Comments at 1.
                                              In this Order, the Commission adopts                 Postal Serv. v. Postal Reg. Comm’n, 886                 However, PostCom does not support
                                           a final rule concerning mail preparation                F.3d 1253 (D.C. Cir. 2018) vacating the                 rescission of the rule at this time. Id.
                                           changes. The final rule partially                       Commission’s standard in Order No.                      Instead, PostCom suggests the
                                           rescinds an existing Commission rule                    3047. In response to the Court’s                        Commission ‘‘temporarily suspend
                                           and is located at 39 CFR part 3010. The                 decision, the Commission and the Postal                 enforcement of the portion of the rule
                                           rule as adopted removes reference to                    Service filed a joint motion to remand                  that the Commission is proposing to
                                           procedures relying on the existence of a                the petition for review of the final rule               eliminate.’’ Id.
                                           substantive standard for mail                           back to the Commission for further                         To support its request for the
                                           preparation changes in response to the                  proceedings.4                                           Commission to temporarily suspend
                                           recent decision in United States Postal                    On August 9, 2018, the Commission                    enforcement of the rule as opposed to
                                           Serv. v. Postal Reg. Comm’n, 886 F.3d                   issued the notice of proposed                           rescission through rulemaking, PostCom
                                           1253 (D.C. Cir. 2018).                                  rulemaking (NPR), setting forth a                       points to the Commission’s intention to
                                           II. Background                                          proposed rescission to the rule set forth               develop an appropriate standard in a
                                                                                                   in § 3010.23(d)(5) that created                         separate rulemaking.7 PostCom submits
                                              In Order No. 3047, the Commission                    procedures concerning mail preparation                  that elimination of the portion of the
                                           developed a substantive standard to                     changes.5 The NPR also provided an                      rule relying on a substantive standard is
                                           determine when a mail preparation                       opportunity for public comment. Order                   unnecessary because the current
                                           change would constitute a ‘‘change in                   No. 4751 at 5. The Commission                           procedures ‘‘will apply equally well to
                                           rates’’ under 39 U.S.C. 3622.1 The                      proposed removing the components of                     the final standard established by the
                                           standard established by the Commission                  the rule that require existence of a                    Commission.’’ PostCom Comments at 2.
                                           in Order No. 3047 provided that mail                    standard in order to be enforced,                       PostCom states that the procedures only
                                           preparation changes could have rate                     specifically: (1) The affirmative                       rely on the ‘‘existence of’’ a substantive
                                           effects when they resulted in the                       designation requirement; and (2) the                    standard and not the contents of that
                                           deletion or redefinition of a rate cell as              evidentiary standard. Id. at 4. As                      substantive standard. Id. at 3. PostCom
                                           set forth by § 3010.23(d)(2).                           explained in the NPR, both the                          points to the fact that the Commission
                                              In conjunction with Order No. 3047,
                                                                                                   affirmative designation and evidentiary                 itself indicated the separation between
                                           the Commission initiated a rulemaking
                                                                                                   burden parts of the rule were predicated                the substantive standard and the
                                           proceeding to develop procedures to
                                                                                                   on the existence of a substantive                       applicability of the final procedural
                                           ensure that the Postal Service properly
                                                                                                   standard. Id. As that standard was                      rule, noting that the Commission stated
                                           applies the Commission’s standard
                                                                                                   vacated and a new standard does not yet                 that the Court’s disagreement with the
                                           when making a determination of
                                                                                                   exist, the proposed rule removed the                    substantive standard would not affect
                                           whether a mail preparation change has
                                                                                                   affirmative designation requirement and                 the final rule. Id. As a result, PostCom
                                           a rate effect.2 The final rule created a
                                                                                                   evidentiary burden component from                       submits that it is ‘‘imprudent to
                                           process that required the Postal Service
                                                                                                   paragraph (d)(5) of this section. In the                eliminate these procedures at this time’’
                                           to: (1) Provide public notice of all mail
                                                                                                   NPR, the Commission proposed to                         and that elimination of the rule now
                                           preparation changes in a single source;
                                                                                                   retain the publication requirement of                   will only require more rulemaking in
                                           (2) affirmatively designate whether or
                                                                                                   the rule as it would remain independent                 the future should the Commission set a
                                           not a change to a mail preparation
                                                                                                   of any standard. Id.                                    new standard. Id.
                                           requirement implicates the price cap;                                                                              Postal Service Comments. The Postal
                                           and (3) show by a preponderance of the                  III. Review of Comments                                 Service supports partial rescission of the
                                                                                                      On September 13, 2018, the                           rule that relies on existence of a
                                             1 The standard in Order No. 3047 was developed

                                           in response to remand from the United States Court
                                                                                                   Commission received comments in                         substantive standard. Postal Service
                                           of Appeals for the District of Columbia (the Court)                                                             Comments at 1–3. In the Postal Service’s
                                                                                                      3 See Petition for Review, United States Postal
                                           in United States Postal Serv. v. Postal Reg. Comm’n,                                                            view, ‘‘compliance with the procedural
                                           785 F.3d 740 (D.C. Cir. 2015). For a complete           Serv. v. Postal Reg. Comm’n, 886 F.3d 1253 (D.C.
                                                                                                   Cir. 2018); Petition for Review, United States Postal
                                                                                                                                                           rule necessarily would require
                                           history of the proceedings underlying the
                                           Commission’s promulgation of a standard for mail        Serv. v. Postal Reg. Comm’n, No. 18–1059 (D.C. Cir.     application of the substantive standard’’
                                           preparation changes, see Docket No. R2013–10,           Feb. 26, 2018).                                         for mail preparation changes. Id. at 2.
                                           Order on Price Adjustments for Market Dominant             4 See Unopposed Motion to Remand Case, United
                                                                                                                                                           The Postal Service agrees with the
                                           Products and Related Mail Classification Changes,       States Postal Serv. v. Postal Reg. Comm’n, No. 18–      Commission’s proposal to rescind the
                                           November 21, 2013, at 5–35 (Order No. 1890);            1059 (D.C. Cir. May 10, 2018).
                                           Docket No. R2013–10R, Order Resolving Issues on            5 Notice of Proposed Rulemaking, August 9, 2018
                                                                                                                                                           portion of the rule that ‘‘requires the
                                           Remand, January 22, 2016 (Order No. 3047); Docket       (Order No. 4751). On the same day, the Commission
                                           No. R2013–10R, Order Resolving Motion for                                                                         6 Comments of the Association for Postal
                                                                                                   filed an advance notice of proposed rulemaking
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                                           Reconsideration of Commission Order No. 3047,           (ANPR) to seek proposals for a new standard and         Commerce, September 13, 2018 (PostCom
                                           July 20, 2016 (Order No. 3441).                         process to determine when a mail preparation            Comments); United States Postal Service Comments
                                             2 Order Adopting Final Procedural Rule for Mail       change requires price cap compliance in accordance      on Notice of Proposed Rulemaking, September 13,
                                           Preparation Changes, January 25, 2018, at 22–23         with the Court’s decision vacating the standard.        2018 (Postal Service Comments); Public
                                           (Order No. 4393). The Order Adopting Final              Docket No. RM2018–11, Advance Notice of                 Representative Comments on Notice of Proposed
                                           Procedural Rule for Mail Preparation Changes was        Proposed Rulemaking, August 9, 2018 (Order No.          Rulemaking, September 13, 2018 (PR Comments).
                                           published in the Federal Register on February 1,        4750). The ANPR was published in the Federal              7 Id. at 2 (citing Order No. 4751 at 4; Order No.

                                           2018. See 83 FR 4585 (Feb. 1, 2018).                    Register, see 83 FR 40485 (Aug. 15, 2018).              4750).



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                                           52156            Federal Register / Vol. 83, No. 200 / Tuesday, October 16, 2018 / Rules and Regulations

                                           Postal Service affirmatively to designate               existence of a standard. While the                        impact of those rules on small entities.
                                           whether a given mail preparation                        Commission has initiated an advance                       See 5 U.S.C. 601, et seq. (1980). If the
                                           change requires compliance with the                     notice of proposed rulemaking to gather                   proposed or final rules will not, if
                                           price cap rules’’ and the portion                       proposals for a new standard, the                         promulgated, have a significant
                                           concerning the evidentiary burden. Id.                  Commission cannot predict the outcome                     economic impact on a substantial
                                              The Postal Service also indicates that               of those proceedings. See Order No.                       number of small entities, the head of the
                                           it has already complied with the                        4750.                                                     agency may certify that the initial and
                                           publication requirement that the                           Although PostCom may be correct                        final regulatory flexibility analysis
                                           Commission proposes to retain in the                    that a temporary suspension of a                          requirements of 5 U.S.C. 603 and 604 do
                                           rule. Id. at 3.                                         procedural rule is within the                             not apply. See 5 U.S.C. 605(b).
                                              Public Representative Comments. The                  Commission’s authority, a rulemaking is                      The Commission’s primary
                                           Public Representative supports the                      more appropriate for the present                          responsibility is in the regulatory
                                           Commission’s proposal to rescind                        situation. As this procedural rule was                    oversight of the United States Postal
                                           portions of the procedural rule                         promulgated via notice and comment                        Service. The rules that are the subject of
                                           concerning mail preparation changes                     rulemaking, the Commission will use                       this rulemaking have an impact on
                                           ‘‘subject to reinstatement depending                    the same process to rescind a major                       participation in Commission
                                           upon the outcome of the Commission’s                    portion of the rule.8                                     proceedings, but impose no further
                                           review of the applicable standard for                      Accordingly, the Commission adopts                     financial obligation upon any entity. For
                                           determining whether a rate increase is                  a final rule that rescinds two                            entities other than the United Stated
                                           in compliance with § 3010.23(d)(2).’’ PR                components of the rule requiring an                       Postal Service, participation is strictly
                                           Comments at 1–2.                                        affirmative designation and evidentiary                   voluntary. Based on these findings, the
                                              He notes that it would be futile to                  burden. For the affirmative designation                   Chairman of the Commission certifies
                                           require the Postal Service to                           portion of the rule, the Postal Service                   that the rules that are the subject of this
                                           affirmatively designate whether a                       would be unable to designate whether a                    rulemaking will not have a significant
                                           change requires compliance with                         particular mail preparation change                        economic impact on a substantial
                                           § 3010.23(d)(2) when there is no                        requires compliance with                                  number of small entities. Therefore,
                                           standard to measure compliance. Id. at                  § 3010.23(d)(2) because it no longer has                  pursuant to 5 U.S.C. 605(b), this
                                           7. With respect to the evidentiary                      a standard to apply to determine                          rulemaking is exempt from the initial
                                           portion of the rule, requiring the Postal               compliance. Similarly, the Postal                         and final regulatory flexibility analysis
                                           Service to provide by a preponderance                   Service could not show it made a                          requirements of 5 U.S.C. 603 and 604.
                                           of the evidence that a mail preparation                 correct determination by a
                                           change does not require compliance                                                                                VI. Ordering Paragraphs
                                                                                                   preponderance of the evidence without
                                           with § 3010.23(d)(2), he contends that                  having a standard. Parties would also be                     It is ordered:
                                           compliance with this provision would                    unable to rebut the Postal Service’s                         1. Part 3010 of title 39, Code of
                                           be ‘‘a very difficult proposition without               determination with information absent a                   Federal Regulations, is revised as set
                                           any standard to serve as a target.’’ Id. at             standard. For these reasons, removing                     forth below the signature of this Order,
                                           8. Further, parties would be ‘‘unable to                those portions of the rule is appropriate.                effective 30 days after publication in the
                                           determine the information needed to                        The remaining part of the rule                         Federal Register.
                                           rebut the Postal Service’s                              requires the Postal Service to provide                       2. The Secretary shall arrange for
                                           determination’’ without an operative                    published notice of all mail preparation                  publication of this Order in the Federal
                                           standard. Id.                                           changes in a single source. The                           Register.
                                              The Public Representative also                       Commission retains this portion of the                      By the Commission.
                                           supports the Commission’s retention of                  rule because it provides notice and
                                           the single source reporting requirement.                                                                          Stacy L. Ruble,
                                                                                                   transparency for all mail preparation                     Secretary.
                                           Id. at 5–6.                                             changes and does not rely on existence
                                           IV. Commission Analysis                                 of a standard.9 As noted in the NPR, the                  List of Subjects in 39 CFR Part 3010
                                             The comments reflect general support                  Postal Service has complied with this                       Administrative practice and
                                           for the removal of portions of the                      requirement and the Postal Service                        procedure, Postal Service.
                                           procedural rule concerning mail                         states in its comments that it will                         For the reasons discussed in the
                                           preparation changes that rely on the                    continue to comply with this portion of                   preamble, the Commission amends
                                           existence of a substantive standard.                    the rule. Accordingly, the Commission                     chapter III of title 39 of the Code of
                                           PostCom suggests an alternative                         revises § 3010.23(d)(5) to require the                    Federal Regulations as follows:
                                           procedure to temporarily suspend                        Postal Service to publish notice of all
                                           enforcement of the rule as opposed to                   mail preparation changes in a single,                     Part 3010—REGULATION OF RATES
                                           formally rescinding portions of this                    publically available source.                              FOR MARKET DOMINANT PRODUCTS
                                           rulemaking.                                             V. Regulatory Flexibility Act Analysis
                                             When promulgating the final rule                                                                                ■ 1. The authority citation of part 3010
                                           concerning mail preparation changes,                      The Regulatory Flexibility Act                          continues to read as follows:
                                           the Commission intended for it to apply                 requires federal agencies, in                                 Authority: 39 U.S.C. 503; 3662.
                                           regardless of how the Court modified                    promulgating rules, to consider the
                                                                                                                                                             ■ 2. Amend § 3010.23 by revising
                                           the standard. Order No. 4393 at 14.                       8 See                                                   paragraph (d)(5) to read as follows:
                                                                                                            Perez v. Mortgage Bankers Ass’n, 135 S.Ct.
                                           However, the Court did not modify the
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                                                                                                   1199, 1206 (2015) (citing F.C.C. v. Fox Television
                                           standard, it vacated it in its entirety.                Stations, Inc., 556 U.S. 502, 515 (2009) (Section 1       § 3010.23 Calculation of percentage
                                           The components of the procedural rule                   of the Administrative Procedure Act mandates that         change in rates.
                                           in § 3010.23(d)(5) requiring the Postal                 ‘‘agencies use the same procedures when they
                                                                                                   amend or repeal a rule as they used to issue the rule
                                                                                                                                                             *     *    *    *     *
                                           Service to provide an affirmative                       in the first instance.’’)).                                 (d) * * *
                                           designation of compliance and setting                      9 See also Order No. 4393 at 8–10 (justification for     (5) Procedures for mail preparation
                                           an evidentiary burden require the                       the reporting requirement).                               changes. The Postal Service shall


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                                                            Federal Register / Vol. 83, No. 200 / Tuesday, October 16, 2018 / Rules and Regulations                                                    52157

                                           provide published notice of all mail                    DC. The Public Reading Room is open                   County and Monroe County as
                                           preparation changes in a single, publicly               from 8:30 a.m. to 4:30 p.m., Monday                   attainment/unclassifiable areas. The
                                           available source. The Postal Service                    through Friday, excluding legal                       EPA is adding those counties to the
                                           shall file notice with the Commission of                holidays. The telephone number for the                regulatory table, consistent with the
                                           the single source it will use to provide                Public Reading Room is (202) 566–1744,                rulemaking record for the April 30,
                                           published notice of all mail preparation                and the telephone number for the Office               2018, ozone designations rule. The EPA
                                           changes.                                                of Air and Radiation Docket and                       is also moving the entry for ‘‘Bond
                                           *     *     *     *     *                               Information Center is (202) 566–1742.                 County’’ so that it will be listed in
                                           [FR Doc. 2018–22477 Filed 10–15–18; 8:45 am]               In addition, the EPA has established               alphabetical order and, thus, will be
                                           BILLING CODE 7710–FW–P
                                                                                                   a website for the ozone designation                   listed before the entry for ‘‘Boone
                                                                                                   rulemakings at https://www.epa.gov/                   County.’’
                                                                                                   ozone-designations. The website
                                                                                                   includes the EPA’s final designations, as                McHenry County, Illinois, is part of
                                           ENVIRONMENTAL PROTECTION                                                                                      the Chicago-Naperville, Illinois-Indiana-
                                                                                                   well as designation recommendation
                                           AGENCY                                                                                                        Wisconsin (IL-IN-WI), Combined
                                                                                                   letters from states and tribes, the EPA’s
                                                                                                   120-letters notifying the states whether              Statistical Area (CSA).1 The EPA’s final
                                           40 CFR Part 81                                                                                                Technical Support Document (TSD) for
                                                                                                   the EPA intends to modify the state’s
                                           [EPA–HQ–OAR–2017–0548; FRL–9985–35–                     recommendation, technical support                     the Chicago-Naperville, IL-IN-WI
                                           OAR]                                                    documents, responses to comments and                  nonattainment area states that, ‘‘EPA’s
                                                                                                   other related technical information.                  area of analysis is the Chicago-
                                           RIN 2060–AU29
                                                                                                                                                         Naperville, IL-IN-WI CSA, which
                                                                                                   FOR FURTHER INFORMATION CONTACT:
                                           Air Quality Designations for the 2015                                                                         includes the following 19 counties:
                                                                                                   Denise Scott, Office of Air Quality
                                           Ozone National Ambient Air Quality                                                                            Bureau, Cook, DeKalb, DuPage, Grundy,
                                                                                                   Planning and Standards, U.S.
                                           Standards; Corrections                                                                                        Kane, Kankakee, Kendall, Lake, LaSalle,
                                                                                                   Environmental Protection Agency, Mail
                                                                                                   Code C539–01, Research Triangle Park,                 McHenry, Putnam, and Will in Illinois,
                                           AGENCY:  Environmental Protection                                                                             Jasper, Lake, LaPorte, Newton, and
                                           Agency (EPA).                                           NC 27711, phone number (919) 541–
                                                                                                   4280 or by email at: scott.denise@                    Porter in Indiana, and Kenosha in
                                           ACTION: Correcting amendments.                                                                                Wisconsin. The EPA applied the five
                                                                                                   epa.gov.
                                                                                                                                                         factors recommended in its guidance to
                                           SUMMARY:    The Environmental Protection                SUPPLEMENTARY INFORMATION:                            the area of analysis to determine the
                                           Agency (EPA) is correcting errors in the                                                                      nonattainment boundary.’’ In the TSD
                                           regulatory text regarding the designation               I. What are the errors being corrected?
                                                                                                                                                         section, ‘‘Conclusion for the Chicago, IL-
                                           of certain areas in nine states for the                    This rule corrects errors in the
                                                                                                                                                         IN-WI Area,’’ the EPA identified the
                                           2015 ozone national ambient air quality                 regulatory text designating certain areas
                                                                                                                                                         portions of Illinois that were being
                                           standards (NAAQS). The designation                      for the 2015 ozone NAAQS as provided
                                                                                                                                                         designated as part of the nonattainment
                                           rules were signed by the EPA                            in the designation rules signed by the
                                                                                                                                                         area and stated, ‘‘All remaining Illinois
                                           Administrator on November 6, 2017,                      EPA Administrator on November 6,
                                                                                                                                                         portions of the Chicago-Naperville, IL-
                                           and April 30, 2018. The errors include                  2017 (November 16, 2017; 82 FR 54232),
                                                                                                                                                         IN-WI CSA are designated consistent
                                           typographical and formatting errors and                 and on April 30, 2018 (June 4, 2018; 83
                                                                                                                                                         with the Illinois’ recommendations as
                                           the omission from the regulatory tables                 FR 25776). The EPA is correcting the
                                                                                                                                                         attainment/unclassifiable for the 2015
                                           of several counties designated as                       errors consistent with the rulemaking
                                                                                                   record. The affected areas are located in             ozone NAAQS: Bureau, DeKalb,
                                           attainment/unclassifiable. The EPA is                                                                         Kankakee, LaSalle, McHenry, and
                                           correcting the errors consistent with the               California, Illinois, Indiana, Kentucky,
                                                                                                   Michigan, Montana, Ohio, Pennsylvania                 Putnam Counties.* * *’’ The EPA’s
                                           rulemaking record. The affected areas                                                                         final TSD for the Chicago-Naperville, IL-
                                           are located in California, Illinois,                    and Virginia. The corrections for each
                                                                                                   state are discussed below and the                     IN-WI nonattainment area is located in
                                           Indiana, Kentucky, Michigan, Montana,                                                                         the docket for the April 30, 2018,
                                           Ohio, Pennsylvania and Virginia.                        corrected regulatory text is provided at
                                                                                                   the end of this action.                               designations rule (document number
                                           DATES: The effective date of this rule is                                                                     EPA-HQ-OAR-2017-0548-0418) and is
                                           November 15, 2018.                                      California                                            the key document setting forth the
                                           ADDRESSES: The EPA has established a                       The EPA is correcting two errors in                designations for the Chicago-Naperville,
                                           docket for the designation actions for                  the regulatory table for California for               IL-IN-WI CSA.
                                           the 2015 ozone NAAQS under Docket                       designations promulgated in the April                    Monroe County, Illinois, is part of the
                                           ID No. EPA–HQ–OAR–2017–0548. All                        30, 2018, ozone designations rule. The                St. Louis, Missouri-Illinois (MO-IL) Core
                                           documents in the docket are listed in                   EPA is moving the entry for the ‘‘Butte               Based Statistical Area (CBSA). The
                                           the index at http://www.regulations.gov.                County, CA’’ nonattainment area so that               EPA’s final TSD for the St. Louis, MO-
                                           Although listed in the index, some                      the area will be listed in alphabetical               IL nonattainment area states, ‘‘The EPA
                                           information is not publicly available,                  order and, thus, will be listed before the
                                           i.e., Confidential Business Information                 entry for the ‘‘Calaveras County, CA’’                  1 Lists of Core Based Statistical Areas and
                                           or other information whose disclosure is                nonattainment area. The EPA is also                   Combined Statistical Areas and their geographic
                                           restricted by statute. Certain other                    correcting a typographical error in the               components are provided at https://
                                           material, such as copyrighted material,                 entry for the ‘‘Pechanga Band of Luiseño             www.census.gov/programs-surveys/metro-micro/
                                           is not placed on the internet and will be                                                                     about/omb-bulletins.html. The Office of
                                                                                                   Mission Indians of the Pechanga                       Management and Budget (OMB) adopts standards
                                           publicly available only in hard copy
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                                                                                                   Reservation’’ nonattainment area by                   for defining statistical areas. The statistical areas are
                                           form. Publicly available docket                         revising ‘‘Pu’eskaMountain’’ to read                  delineated based on United States Census Bureau
                                           materials are available either                          ‘‘Pu’eska Mountain.’’                                 data. The lists are periodically updated by the
                                           electronically in the docket or in hard                                                                       OMB. The EPA used the July 2015 update (OMB
                                           copy at the EPA Docket Center, EPA                      Illinois                                              Bulletin No. 15–01), which is based on application
                                                                                                                                                         of the 2010 OMB standards to the 2010 Census,
                                           WJC West Building, Room 3334, 1301                         The EPA is correcting the regulatory               2006–2010 American Community Survey, as well as
                                           Constitution Avenue NW, Washington,                     table for Illinois to include McHenry                 2013 Population Estimates Program data.



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Document Created: 2018-10-15 23:42:24
Document Modified: 2018-10-15 23:42:24
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesEffective November 15, 2018.
ContactDavid A. Trissell, General Counsel, at 202-789-6820.
FR Citation83 FR 52154 
CFR AssociatedAdministrative Practice and Procedure and Postal Service

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