Review of Nonpostal Services Language, 27375-27377 [2010-11512]
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Federal Register / Vol. 75, No. 93 / Friday, May 14, 2010 / Notices
For further details with respect to the
proposed action, see the licensee’s
application dated February 21, 2007
[ML092170540], as supplemented by the
letter dated November 9, 2009
[ML093410385]. Documents may be
examined, and/or copied for a fee, at the
NRC’s Public Document Room (PDR),
located at One White Flint North, 11555
Rockville Pike (1st Floor), Rockville,
Maryland. Publicly available records
will be accessible electronically from
the Agencywide Documents Access and
Management System (ADAMS) Public
Electronic Reading Room on the NRC
Web site https://www.nrc.gov/readingrm/adams.html. Persons who do not
have access to ADAMS or who
encounter problems in accessing the
documents located in ADAMS should
contact the NRC PDR Reference staff at
1–800–397–4209, or 301–415–4737, or
send an e-mail to pdr@nrc.gov.
Dated at Rockville, Maryland, this 5th day
of May, 2010.
For the Nuclear Regulatory Commission.
Kathryn M. Brock,
Chief, Research and Test Reactors Licensing
Branch, Division of Policy and Rulemaking,
Office of Nuclear Reactor Regulation.
[FR Doc. 2010–11563 Filed 5–13–10; 8:45 am]
BILLING CODE 7590–01–P
POSTAL REGULATORY COMMISSION
[Docket No. PI2010–3; Order No. 456]
Postal Rate Case Management
Postal Regulatory Commission.
Notice.
AGENCY:
emcdonald on DSK2BSOYB1PROD with NOTICES
ACTION:
SUMMARY: The Commission is seeking
comments relevant to management of an
anticipated exigent postal rate case. It
has scheduled a technical conference for
a public discussion based on the
submissions.
DATES: Comments are due: June 9, 2010;
technical conference will be held: June
16, 2010.
ADDRESSES: Submit comments
electronically via the Commission’s
Filing Online system at https://
www.prc.gov. Commenters who cannot
submit their views electronically should
contact the person identified in the FOR
FURTHER INFORMATION CONTACT section
by telephone for advice on alternatives
to electronic filing.
FOR FURTHER INFORMATION CONTACT:
Stephen L. Sharfman, General Counsel,
202–789–6820 or
stephen.sharfman@prc.gov.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Introduction
VerDate Mar<15>2010
18:07 May 13, 2010
Jkt 220001
II. Public Representative
III. Ordering Paragraphs
I. Introduction
On March 2, 2010, Postmaster General
John E. Potter outlined elements of a
business plan designed to close a
projected gap between Postal Service
revenues and costs.1 Included in the
plan was a reference to a possible
‘‘modest exigent rate increase’’ to be
effective in 2011. Id. The term ‘‘exigent
rate increase’’ is commonly used to refer
to rate adjustments that are due to
extraordinary or exceptional
circumstances. Such rate adjustments
are expressly authorized by 39 U.S.C.
3622(d)(1)(E).
Following the issuance of the Postal
Accountability and Enhancement Act
(PAEA), Pub. L. 109–435, 120 Stat. 3218
(2006), the Commission adopted new
rules that establish procedures for
handling exigent rate cases. Docket No.
RM2007–1, October 29, 2007 (Order No.
43). Those new rules (Exigent Rate Case
Rules) are contained in subpart E of part
3010 of the Commission’s regulations.
39 CFR part 3010, subpart E.
If filed, the potential exigent rate case
referred to by the Postmaster General
would be the first exigent rate case
received by the Commission since
passage of the PAEA. While the
Commission is confident that its Exigent
Rate Case Rules will provide an
effective procedural framework for
consideration of the currently
anticipated case, the Commission
believes that it would be prudent to give
all interested parties an opportunity to
explore and discuss procedural
considerations unique to exigent rate
cases before the Postal Service files such
a case. This belief is grounded in part
on the fact that section 3622(d)(1)(E)
requires the Commission to issue a
decision within 90 days after the Postal
Service’s filing. Advance consideration
of the unique procedural aspects of the
proposed exigent rate case may permit
early identification of solutions to any
potential issues that might otherwise
complicate fair and meaningful
participation by interested persons.
In light of the foregoing
considerations, a technical conference is
scheduled for June 16, 2010, beginning
at 10:00 a.m. in the Commission’s
hearing room. The purpose of the
conference is to give interested persons
the opportunity to discuss procedures
for managing the Postal Service’s
currently anticipated exigent rate case.
1 Press Release No. 10–018, United States Postal
Service, Postal Service Outlines 10–Year Plan to
Address Declining Revenues, Volumes (March 2,
2010).
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27375
The proceedings will be transcribed,
and a copy of the transcript will be
posted on the Commission’s website.
Further procedures are under
consideration and may be announced by
further public notice. Finally, the
Commission invites interested persons
to file proposed topics for discussion at
the conference not later than June 9,
2010.
II. Public Representative
Section 505 of title 39 requires the
designation of an officer of the
Commission in all public proceedings to
represent the interests of the general
public. The Commission hereby
designates James Waclawski as Public
Representative in this proceeding.
III. Ordering Paragraphs
It is ordered:
1. Docket No. PI2010-3 is established
for the purpose of facilitating discussion
of and obtaining views on, procedural
matters pertaining to rate adjustments
proposed to meet exigent circumstances
under part 3010, subpart E of the
commission’s rules of practice.
2. A technical conference will be held
June 16, 2010, beginning at 10:00 a.m.
in the Commission’s hearing room to
discuss issues related to the matters that
are the subject of this proceeding.
3. Interested persons may sunbmit
proposed topics for discussion on or
before June 9, 2010.
4. James Waclawski is designated as
the Public Representative to represent
the interests of the general public in this
docket.
5. The Secretary shall arrange for
publication of this order in the Federal
Register.
By the Commission.
Shoshana M. Grove,
Secretary.
[FR Doc. 2010–11467 Filed 5–13–10; 8:45 am]
BILLING CODE 7710–FW–S
POSTAL REGULATORY COMMISSION
[Docket No. MC2010–24; Order No. 457]
Review of Nonpostal Services
Language
Postal Regulatory Commission.
Notice.
AGENCY:
ACTION:
SUMMARY: The Commission is
establishing a docket to consider the
Postal Service’s proposed nonpostal
services Mail Classification Schedule
language. It solicits comments to assist
in this task.
DATES: Comments are due: June 4, 2010.
Reply comments are due: June 18, 2010.
E:\FR\FM\14MYN1.SGM
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27376
Federal Register / Vol. 75, No. 93 / Friday, May 14, 2010 / Notices
Submit comments
electronically via the Commission’s
Filing Online system at https://
www.prc.gov. Commenters who cannot
submit their views electronically should
contact the person identified in the FOR
FURTHER INFORMATION CONTACT section
by telephone for advice on alternatives
to electronic filing.
FOR FURTHER INFORMATION CONTACT:
Stephen L. Sharfman, General Counsel,
202–789–6820 or
stephen.sharfman@prc.gov.
ADDRESSES:
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Introduction
II. Postal Service Filings
III. Notice of Filings
IV. Ordering Paragraphs
I. Introduction
Pursuant to section 404(e) of title 39,
the Commission in Order No. 154
authorized 14 activities of the Postal
Service to continue as ‘‘nonpostal
services.’’1 By this notice, the
Commission initiates Docket No.
MC2010–24 to consider the Postal
Service’s proposed Mail Classification
Schedule (MCS) language for its
authorized nonpostal services.
II. Postal Service Filings
emcdonald on DSK2BSOYB1PROD with NOTICES
While the proceedings resulting in
Order No. 154 were ongoing, the Postal
Service filed proposed MCS language
for six activities which the Postal
Service identified as nonpostal
services.2 Of the six activities, Order No.
154 provisionally accepted language for
four nonpostal services for insertion
into the MCS.3
Further, Order No. 154 required the
Postal Service to file proposed MCS
1 Docket No. MC2008–1, Review of Nonpostal
Services Under the Postal Accountability and
Enhancement Act, December 19, 2008 (Order No.
154); see also Errata Notice, January 9, 2009 (Errata),
petition denied, United States Postal Service v.
Postal Regulatory Commission, 2010 WL 1189617
No. 09–1032 (CADC, March 30, 2010).
2 The proposed language included the following
six activities: Officially Licensed Retail Products
(OLRP), Passport Photo Service, Photocopying
Service, Electronic Postmark (EPM), Notary Public
Services, and Stored Value Cards. Docket No.
MC2008–1, United States Postal Service Notice of
Filing of Proposed Mail Classification Schedule
Language for Six Nonpostal Services Pursuant to
Order No. 120, November 7, 2008. For the
convenience of interested persons, the Mail
Classification Schedule language proposed by the
Postal Service in this filing and two other filings,
dated March 10, 2009 and April 26, 2010 and
discussed further below, is attached to this order for
illustrative purposes and will not be published in
the Federal Register. The language is available on
the Commission’s Web site (https://www.prc.gov).
3 Notary Public Services and Stored Value Cards
were not authorized as nonpostal services. Order
No. 154 at 40, 89.
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Jkt 220001
language for the 10 other nonpostal
services that it authorized. Id. at 90.4 In
response to Order No. 154, the Postal
Service filed a notice of proposed MCS
language for those nonpostal services.5
One service, the Warranty Repair
Program, had been temporarily allowed
subject to review in Phase II of that
proceeding. At the conclusion of Phase
II, the Warranty Repair Program was
ordered terminated. Therefore,
consideration of the proposed language
for that product is moot.6 The Postal
Service’s Notice proposes to realign and
combine these authorized nonpostal
services into eight products.
The eight renamed nonpostal services
are classified as follows: Market
Dominant—Alliances with the Private
Sector to Defray Cost of Key Postal
Functions, and Philatelic Sales;
Competitive—Rental, Leasing, Licensing
or Other Non-Sale Disposition of
Tangible Property; Advertising; Mail
Services Promotion; Training Facilities
and Related Services; Licensing of
Intellectual Property Other than OLRP;
and Equipment Repair Service.
For the two market dominant
nonpostal products, the Postal Service
does not propose to realign Philatelic
Sales. The Postal Service proposes to
align the other market dominant service,
MoverSource, an alliance with a private
sector company to provide change-ofaddress assistance, with another
alliance, WhitePages. For each of these
latter activities, costs are defrayed
through advertising solicited by the
private sector entity. The Postal Service
proposes to entitle this product
‘‘Alliances with the Private Sector to
4 Of the 10 authorized nonpostal services,
Philatelic Sales and MoverSource were classified as
market dominant. The remaining eight authorized
nonpostal services classified as competitive were
Affiliates for Website, Affiliates—Other (Linking
Only), FedEx Drop Boxes, Licensing Programs
Other Than Officially Licensed Retail Products,
Meter Manufacturers Marketing Program, Non-Sale
Lease Agreements (Non-Government), Training
Facilities, and Warranty Repair Program (in part,
subject to review in Phase II). See Errata at
Appendix I, Part B.
5 United States Postal Service Notice of Filing of
Proposed Mail Classification Schedule Language for
Nonpostal Activities in Response to Order No. 154,
March 10, 2009 (Notice).
6 The Warranty Repair Program failed to meet the
grandfather requirement for a nonpostal service
under section 404(e) of title 39 insofar as it relates
to the provision of service to others. Docket No.
MC2008–1(Phase II), Phase II Review of Nonpostal
Services Under the Postal Accountability and
Enhancement Act, January 14, 2010, at 31, 39
(Order No. 392); appeals docketed, Le Page’s 2000
Inc. and Le Page’s Products, Inc. v. Postal
Regulatory Commission, No. 10–1031 (CADC,
February 12, 2010) consolidated with United States
Postal Service v. Postal Regulatory Commission, No.
10–1033 (CADC, February 12, 2010). The decision
in Phase II regarding the Warranty Repair Program
was not appealed and is final.
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Defray Cost of Key Postal Functions.’’ Id.
at 7.
With respect to Philatelic Sales, the
Postal Service filed a notice of
amendment to its proposed MCS
language to incorporate into the
nonpostal Philatelic Sales product its
current shipping charges for philatelic
order fulfillment.7 The amendment
reflects the Postal Service’s proposed
method for reflecting shipping fees in
the MCS pursuant to Commission Order
No. 391.8
Web-based linking agreements are
divided into three separate categories.
Agreements providing links to
merchants’ Web sites are styled
‘‘Advertising.’’9 Agreements to list a
vendor on usps.com and to promote a
vendor’s mailing services or product are
entitled ‘‘Mail Services Promotion.’’ Id.
at 8. The third category of web-based
alliances is the aforementioned market
dominant MoverSource-WhitePages
alignment.
The Postal Service proposes to
maintain the alignment of services
described in Order No. 154 for Training
Facility and Licensing of Intellectual
Property Other Than OLRP.10 Id. at 6.
The Postal Service restyles ‘‘Training
Facility’’ as ‘‘Training Facilities and
Related Services.’’ Id. at Appendix A.
The Postal Service proposes to
rename some competitive nonpostal
services to reflect more accurately the
nature of the activities within each
service. Id. at 3. The Postal Service
asserts that to reduce potential
confusion, some nonpostal activities are
realigned to be independent of the
names of current vendors or programs,
or the location of the activity. This
permits the Postal Service to enter into
a similar agreement with others, or to
accept advertising for other products in
other venues. Id. at 4. Some similar
services are grouped together such as
certain web-based agreements within
the broader category of Advertising. Id.
at 4–5. Additionally, the Postal Service
7 Notice of the United States Postal Service of
Amendment to Mail Classification Schedule
Language for Nonpostal Activities Required to be
Filed by Order No. 154, April 26, 2010.
8 Docket No. MC2009–19, Order Approving
Addition of Postal Service to the Mail Classification
Schedule Product Lists, January 13, 2010, at 12–15
(Order No. 391).
9 The Postal Service cites as current agreements
Maponics, Label Universe, and Mail Service
Provider agreements. Id. at 8.
10 In Order No. 392, the Commission limited the
scope of its licensing authorization by denying
authorization for Postal Service branding of mailing
and shipping products related to Postal Service
operations for general retail distribution. Order No.
392 at 39; appeals docketed, see note 6, infra. The
Postal Service has not filed to amend its proposed
language for ‘‘Licensing of Intellectual Property
Other Than OLRP’’ to conform to Order No. 392.
E:\FR\FM\14MYN1.SGM
14MYN1
Federal Register / Vol. 75, No. 93 / Friday, May 14, 2010 / Notices
emcdonald on DSK2BSOYB1PROD with NOTICES
requests that web-based linking
agreements providing links to merchant
websites be treated as price categories
rather than separate products pending
review in a rulemaking on the form and
content of rules for nonpostal services.
Id. at 5. The Postal Service asserts that
designating the linking agreements as
price categories pending further review
removes uncertainty as to whether a
section 3642 proceeding to add new
products to the MCS would be required
for any new web-based linking
agreements. Id.
The nonpostal service described in
Order No. 154 as Non-Sale Lease
Agreements (Non-Government) includes
leasing of parking facilities, office space,
antenna towers, advertising, storage,
and retail lobby space. Order No. 154 at
66. Non-sale dispositions of real
property are sometimes structured as a
‘‘license’’ of real property. Notice at 9–
10. The FedEx Drop Boxes arrangement
identified in Order No. 154 as a separate
nonpostal service also involves the
licensing or rental of real property. Id.
at 10.
The Postal Service notes that the
Commission did not specifically address
the rental of personal property in Order
No. 154 and proposes to include the
rental of equipment such as forklifts
within this group. The Postal Service
further notes that for years it has rented
personal property such as exercise and
audio visual equipment as part of its
training facilities operations, but
charges are accounted for as part of the
training operations, and the Postal
Service does not recommend including
them in this description. Id. The Postal
Service proposes to retitle this group of
activities ‘‘Leasing, Licensing and Other
Non-Sale Disposal of Tangible
Property.’’ Id.
III. Notice of Filings
The Commission establishes Docket
No. MC2010–24 for consideration of the
Postal Service’s proposed language for
nonpostal products attached to this
order to be included in the MCS.
As noted above, the MCS language
recognized by the Postal Service is
attached to this order. Part 3020 of the
Commission’s rules provides for
establishing product lists. Subpart A of
the current MCS rules includes
provisions for nonpostal products. 39
CFR 3020.13(a)(6) and (b)(5). Subpart B
provides for changes to the product lists
initiated by the Postal Service. The
Commission will treat the Postal
Service’s filings as a unified request to
modify the product lists.11
11 Because the Postal Service’s filings are
pursuant to Commission orders, the filing
VerDate Mar<15>2010
18:07 May 13, 2010
Jkt 220001
Under section 3020.34 of the rules,
upon review of these Postal Service
filings together with comments of
interested parties, the Commission may
approve the requests, institute further
proceedings, permit the Postal Service
an opportunity to modify its request, or
take other appropriate action. Pursuant
to 39 U.S.C. 404(e)(5) and 39 CFR
3020.33, the Commission provides
interested persons an opportunity to
express views and offer comments on
the planned modifications and whether
they are consistent with the policies of
39 U.S.C. 3642.
Comments on the proposed nonpostal
services MCS language filed by the
Postal Service are due no later than June
4, 2010. Reply comments, if any, are due
June 18, 2010.
Pursuant to 39 U.S.C. 505, Emmett
Rand Costich is appointed to serve as
officer of the Commission (Public
Representative) to represent the
interests of the general public in the
above-captioned docket.
IV. Ordering Paragraphs
It is ordered:
1. Docket No. MC2010–24 is
established to consider the Postal
Service’s proposed nonpostal product
Mail Classification Schedule language
filed with its notices of March 10, 2009
and April 26, 2010, together with the
nonpostal service Mail Classification
Schedule language for four nonpostal
services filed November 7, 2008 referred
to in the body of this order.
2. Docket No. MC2009–20 is closed.
3. Comments are due no later than
June 4, 2010.
4. Reply comments are due no later
than June 18, 2010.
5. The Commission appoints Emmett
Rand Costich as Public Representative
to represent the interests of the general
public in this proceeding.
6. The Secretary shall arrange for
publication of this order in the Federal
Register.
By the Commission.
Shoshana M. Grove,
Secretary.
[FR Doc. 2010–11512 Filed 5–13–10; 8:45 am]
BILLING CODE 7710–FW–S
requirements of subpart B shall, to the extent
necessary, be waived.
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27377
SECURITIES AND EXCHANGE
COMMISSION
[Release No. IC–29265 ; File No. 812–13710]
Jackson National Life Insurance
Company of New York, et al.
May 10, 2010.
AGENCY: The Securities and Exchange
Commission (‘‘Commission’’).
ACTION: Notice of application for an
order under Section 6(c) of the
Investment Company Act of 1940 (the
‘‘Act’’) granting exemptions from the
provisions of Sections 2(a)(32), 22(c)
and 27(i)(2)(A) of the Act and Rule 22c–
1 thereunder to permit the recapture of
contract enhancements applied to
purchase payments made under certain
deferred variable annuity contracts.
Applicants: Jackson National Life
Insurance Company of New York (‘‘JNL
New York’’), JNLNY Separate Account I
(the ‘‘JNLNY Separate Account’’), and
Jackson National Life Distributors LLC
(‘‘Distributor,’’ and collectively
‘‘Applicants’’).
Summary of Application: Applicants
seek an order under Section 6(c) of the
Act to exempt certain transactions from
the provisions of Sections 2(a)(32),
22(c), and 27(i)(2)(A) of the Act and
Rule 22c–1 thereunder, to the extent
necessary to permit the recapture, under
specified circumstances, of certain
contract enhancements applied to
purchase payments made under the
deferred variable annuity contracts
described herein that JNL New York has
issued and will issue through the
JNLNY Separate Account (the
‘‘Contracts’’) as well as other contracts
that JNL New York may issue in the
future through its existing or future
separate accounts (‘‘Other Accounts’’)
that are substantially similar in all
material respects to the Contracts
(‘‘Future Contracts’’). Applicants also
request that the order being sought
extend to any other Financial Industry
Regulatory Authority (‘‘FINRA’’) member
broker-dealer controlling or controlled
by, or under common control with JNL
New York, whether existing or created
in the future, that serves as distributor
or principal underwriter for the
Contracts or Future Contracts
(‘‘Affiliated Broker-Dealers’’) and any
successors in interest to the Applicants.
DATES: Filing Date: The application was
filed on October 23, 2009, and amended
on January 13, 2010, and April 22, 2010.
Hearing or Notification of Hearing: An
order granting the application will be
issued unless the Commission orders a
hearing. Interested persons may request
a hearing by writing to the Secretary of
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Agencies
[Federal Register Volume 75, Number 93 (Friday, May 14, 2010)]
[Notices]
[Pages 27375-27377]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-11512]
-----------------------------------------------------------------------
POSTAL REGULATORY COMMISSION
[Docket No. MC2010-24; Order No. 457]
Review of Nonpostal Services Language
AGENCY: Postal Regulatory Commission.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: The Commission is establishing a docket to consider the
Postal Service's proposed nonpostal services Mail Classification
Schedule language. It solicits comments to assist in this task.
DATES: Comments are due: June 4, 2010. Reply comments are due: June
18, 2010.
[[Page 27376]]
ADDRESSES: Submit comments electronically via the Commission's Filing
Online system at https://www.prc.gov. Commenters who cannot submit their
views electronically should contact the person identified in the For
Further Information Contact section by telephone for advice on
alternatives to electronic filing.
FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel,
202-789-6820 or stephen.sharfman@prc.gov.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Introduction
II. Postal Service Filings
III. Notice of Filings
IV. Ordering Paragraphs
I. Introduction
Pursuant to section 404(e) of title 39, the Commission in Order No.
154 authorized 14 activities of the Postal Service to continue as
``nonpostal services.''\1\ By this notice, the Commission initiates
Docket No. MC2010-24 to consider the Postal Service's proposed Mail
Classification Schedule (MCS) language for its authorized nonpostal
services.
---------------------------------------------------------------------------
\1\ Docket No. MC2008-1, Review of Nonpostal Services Under the
Postal Accountability and Enhancement Act, December 19, 2008 (Order
No. 154); see also Errata Notice, January 9, 2009 (Errata), petition
denied, United States Postal Service v. Postal Regulatory
Commission, 2010 WL 1189617 No. 09-1032 (CADC, March 30, 2010).
---------------------------------------------------------------------------
II. Postal Service Filings
While the proceedings resulting in Order No. 154 were ongoing, the
Postal Service filed proposed MCS language for six activities which the
Postal Service identified as nonpostal services.\2\ Of the six
activities, Order No. 154 provisionally accepted language for four
nonpostal services for insertion into the MCS.\3\
---------------------------------------------------------------------------
\2\ The proposed language included the following six activities:
Officially Licensed Retail Products (OLRP), Passport Photo Service,
Photocopying Service, Electronic Postmark (EPM), Notary Public
Services, and Stored Value Cards. Docket No. MC2008-1, United States
Postal Service Notice of Filing of Proposed Mail Classification
Schedule Language for Six Nonpostal Services Pursuant to Order No.
120, November 7, 2008. For the convenience of interested persons,
the Mail Classification Schedule language proposed by the Postal
Service in this filing and two other filings, dated March 10, 2009
and April 26, 2010 and discussed further below, is attached to this
order for illustrative purposes and will not be published in the
Federal Register. The language is available on the Commission's Web
site (https://www.prc.gov).
\3\ Notary Public Services and Stored Value Cards were not
authorized as nonpostal services. Order No. 154 at 40, 89.
---------------------------------------------------------------------------
Further, Order No. 154 required the Postal Service to file proposed
MCS language for the 10 other nonpostal services that it authorized.
Id. at 90.\4\ In response to Order No. 154, the Postal Service filed a
notice of proposed MCS language for those nonpostal services.\5\ One
service, the Warranty Repair Program, had been temporarily allowed
subject to review in Phase II of that proceeding. At the conclusion of
Phase II, the Warranty Repair Program was ordered terminated.
Therefore, consideration of the proposed language for that product is
moot.\6\ The Postal Service's Notice proposes to realign and combine
these authorized nonpostal services into eight products.
---------------------------------------------------------------------------
\4\ Of the 10 authorized nonpostal services, Philatelic Sales
and MoverSource were classified as market dominant. The remaining
eight authorized nonpostal services classified as competitive were
Affiliates for Website, Affiliates--Other (Linking Only), FedEx Drop
Boxes, Licensing Programs Other Than Officially Licensed Retail
Products, Meter Manufacturers Marketing Program, Non-Sale Lease
Agreements (Non-Government), Training Facilities, and Warranty
Repair Program (in part, subject to review in Phase II). See Errata
at Appendix I, Part B.
\5\ United States Postal Service Notice of Filing of Proposed
Mail Classification Schedule Language for Nonpostal Activities in
Response to Order No. 154, March 10, 2009 (Notice).
\6\ The Warranty Repair Program failed to meet the grandfather
requirement for a nonpostal service under section 404(e) of title 39
insofar as it relates to the provision of service to others. Docket
No. MC2008-1(Phase II), Phase II Review of Nonpostal Services Under
the Postal Accountability and Enhancement Act, January 14, 2010, at
31, 39 (Order No. 392); appeals docketed, Le Page's 2000 Inc. and Le
Page's Products, Inc. v. Postal Regulatory Commission, No. 10-1031
(CADC, February 12, 2010) consolidated with United States Postal
Service v. Postal Regulatory Commission, No. 10-1033 (CADC, February
12, 2010). The decision in Phase II regarding the Warranty Repair
Program was not appealed and is final.
---------------------------------------------------------------------------
The eight renamed nonpostal services are classified as follows:
Market Dominant--Alliances with the Private Sector to Defray Cost of
Key Postal Functions, and Philatelic Sales; Competitive--Rental,
Leasing, Licensing or Other Non-Sale Disposition of Tangible Property;
Advertising; Mail Services Promotion; Training Facilities and Related
Services; Licensing of Intellectual Property Other than OLRP; and
Equipment Repair Service.
For the two market dominant nonpostal products, the Postal Service
does not propose to realign Philatelic Sales. The Postal Service
proposes to align the other market dominant service, MoverSource, an
alliance with a private sector company to provide change-of-address
assistance, with another alliance, WhitePages. For each of these latter
activities, costs are defrayed through advertising solicited by the
private sector entity. The Postal Service proposes to entitle this
product ``Alliances with the Private Sector to Defray Cost of Key
Postal Functions.'' Id. at 7.
With respect to Philatelic Sales, the Postal Service filed a notice
of amendment to its proposed MCS language to incorporate into the
nonpostal Philatelic Sales product its current shipping charges for
philatelic order fulfillment.\7\ The amendment reflects the Postal
Service's proposed method for reflecting shipping fees in the MCS
pursuant to Commission Order No. 391.\8\
---------------------------------------------------------------------------
\7\ Notice of the United States Postal Service of Amendment to
Mail Classification Schedule Language for Nonpostal Activities
Required to be Filed by Order No. 154, April 26, 2010.
\8\ Docket No. MC2009-19, Order Approving Addition of Postal
Service to the Mail Classification Schedule Product Lists, January
13, 2010, at 12-15 (Order No. 391).
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Web-based linking agreements are divided into three separate
categories. Agreements providing links to merchants' Web sites are
styled ``Advertising.''\9\ Agreements to list a vendor on usps.com and
to promote a vendor's mailing services or product are entitled ``Mail
Services Promotion.'' Id. at 8. The third category of web-based
alliances is the aforementioned market dominant MoverSource-WhitePages
alignment.
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\9\ The Postal Service cites as current agreements Maponics,
Label Universe, and Mail Service Provider agreements. Id. at 8.
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The Postal Service proposes to maintain the alignment of services
described in Order No. 154 for Training Facility and Licensing of
Intellectual Property Other Than OLRP.\10\ Id. at 6. The Postal Service
restyles ``Training Facility'' as ``Training Facilities and Related
Services.'' Id. at Appendix A.
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\10\ In Order No. 392, the Commission limited the scope of its
licensing authorization by denying authorization for Postal Service
branding of mailing and shipping products related to Postal Service
operations for general retail distribution. Order No. 392 at 39;
appeals docketed, see note 6, infra. The Postal Service has not
filed to amend its proposed language for ``Licensing of Intellectual
Property Other Than OLRP'' to conform to Order No. 392.
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The Postal Service proposes to rename some competitive nonpostal
services to reflect more accurately the nature of the activities within
each service. Id. at 3. The Postal Service asserts that to reduce
potential confusion, some nonpostal activities are realigned to be
independent of the names of current vendors or programs, or the
location of the activity. This permits the Postal Service to enter into
a similar agreement with others, or to accept advertising for other
products in other venues. Id. at 4. Some similar services are grouped
together such as certain web-based agreements within the broader
category of Advertising. Id. at 4-5. Additionally, the Postal Service
[[Page 27377]]
requests that web-based linking agreements providing links to merchant
websites be treated as price categories rather than separate products
pending review in a rulemaking on the form and content of rules for
nonpostal services. Id. at 5. The Postal Service asserts that
designating the linking agreements as price categories pending further
review removes uncertainty as to whether a section 3642 proceeding to
add new products to the MCS would be required for any new web-based
linking agreements. Id.
The nonpostal service described in Order No. 154 as Non-Sale Lease
Agreements (Non-Government) includes leasing of parking facilities,
office space, antenna towers, advertising, storage, and retail lobby
space. Order No. 154 at 66. Non-sale dispositions of real property are
sometimes structured as a ``license'' of real property. Notice at 9-10.
The FedEx Drop Boxes arrangement identified in Order No. 154 as a
separate nonpostal service also involves the licensing or rental of
real property. Id. at 10.
The Postal Service notes that the Commission did not specifically
address the rental of personal property in Order No. 154 and proposes
to include the rental of equipment such as forklifts within this group.
The Postal Service further notes that for years it has rented personal
property such as exercise and audio visual equipment as part of its
training facilities operations, but charges are accounted for as part
of the training operations, and the Postal Service does not recommend
including them in this description. Id. The Postal Service proposes to
retitle this group of activities ``Leasing, Licensing and Other Non-
Sale Disposal of Tangible Property.'' Id.
III. Notice of Filings
The Commission establishes Docket No. MC2010-24 for consideration
of the Postal Service's proposed language for nonpostal products
attached to this order to be included in the MCS.
As noted above, the MCS language recognized by the Postal Service
is attached to this order. Part 3020 of the Commission's rules provides
for establishing product lists. Subpart A of the current MCS rules
includes provisions for nonpostal products. 39 CFR 3020.13(a)(6) and
(b)(5). Subpart B provides for changes to the product lists initiated
by the Postal Service. The Commission will treat the Postal Service's
filings as a unified request to modify the product lists.\11\
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\11\ Because the Postal Service's filings are pursuant to
Commission orders, the filing requirements of subpart B shall, to
the extent necessary, be waived.
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Under section 3020.34 of the rules, upon review of these Postal
Service filings together with comments of interested parties, the
Commission may approve the requests, institute further proceedings,
permit the Postal Service an opportunity to modify its request, or take
other appropriate action. Pursuant to 39 U.S.C. 404(e)(5) and 39 CFR
3020.33, the Commission provides interested persons an opportunity to
express views and offer comments on the planned modifications and
whether they are consistent with the policies of 39 U.S.C. 3642.
Comments on the proposed nonpostal services MCS language filed by
the Postal Service are due no later than June 4, 2010. Reply comments,
if any, are due June 18, 2010.
Pursuant to 39 U.S.C. 505, Emmett Rand Costich is appointed to
serve as officer of the Commission (Public Representative) to represent
the interests of the general public in the above-captioned docket.
IV. Ordering Paragraphs
It is ordered:
1. Docket No. MC2010-24 is established to consider the Postal
Service's proposed nonpostal product Mail Classification Schedule
language filed with its notices of March 10, 2009 and April 26, 2010,
together with the nonpostal service Mail Classification Schedule
language for four nonpostal services filed November 7, 2008 referred to
in the body of this order.
2. Docket No. MC2009-20 is closed.
3. Comments are due no later than June 4, 2010.
4. Reply comments are due no later than June 18, 2010.
5. The Commission appoints Emmett Rand Costich as Public
Representative to represent the interests of the general public in this
proceeding.
6. The Secretary shall arrange for publication of this order in the
Federal Register.
By the Commission.
Shoshana M. Grove,
Secretary.
[FR Doc. 2010-11512 Filed 5-13-10; 8:45 am]
BILLING CODE 7710-FW-S