TITLE 39: POSTAL
SERVICE
PART IV: MAIL
MATTER
CHAPTER 36:
POSTAL RATES, CLASSES, AND SERVICES
SUBCHAPTER
II:
PERMANENT RATES AND CLASSES OF
MAIL
HEAD:
Sec. 3626. Reduced rates
STATUTE:
(a)(1) Except as otherwise provided in this section, rates
of postage for a class of mail or kind of mailer under
former section 4358, 4452(b), 4452(c), 4454(b), or 4454(c)
(FOOTNOTE 1) of this title shall be established in
accordance with the applicable provisions of this
chapter.
(FOOTNOTE 1) So in original. Probably
should be ''4554(b), or 4554(c)''.
(2) For the purpose of this subsection - (A) the term
''costs attributable'', as used with respect to a class of
mail or kind of mailer, means the direct and indirect postal
costs attributable to such class of mail or kind of mailer
(excluding any other costs of the Postal Service); (B) the
term ''regular-rate category'' means any class of mail or
kind of mailer, other than a class or kind referred to in
paragraph (3)(A) or section 2401(c); and (C) the term
''institutional-costs contribution'', as used with respect
to a class of mail or kind of mailer, means that portion of
the estimated revenues to the Postal Service from such class
of mail or kind of mailer which remains after subtracting an
amount equal to the estimated costs attributable to such
class of mail or kind of mailer.
(3)(A) Except as provided in paragraph (4) or (5), rates of
postage for a class of mail or kind of mailer under former
section 4358, 4452(b), 4452(c), 4554(b), or 4554(c) of this
title shall be established in a manner such that the
estimated revenues to be received by the Postal Service from
such class of mail or kind of mailer shall be equal to the
sum of - (i) the estimated costs attributable to such class
of mail or kind of mailer; and (ii) the product derived by
multiplying the estimated costs referred to in clause (i) by
the applicable percentage under subparagraph (B). (B) The
applicable percentage for any class of mail or kind of
mailer referred to in subparagraph (A) shall be the product
derived by multiplying - (i) the percentage which, for the
most closely corresponding regular-rate category, the
institutional-costs contribution for such category
represents relative to the estimated costs attributable to
such category of mail, times (ii)(I) one-twelfth, for fiscal
year 1994; (II) one-sixth, for fiscal year 1995; (III)
one-fourth, for fiscal year 1996; (IV) one-third, for fiscal
year 1997; (V) five-twelfths, for fiscal year 1998; and (VI)
one-half, for any fiscal year after fiscal year 1998. (C)
Temporary special authority to permit the timely
implementation of the preceding provisions of this paragraph
is provided under section 3642. (D) For purposes of
establishing rates of postage under this subchapter for any
of the classes of mail or kinds of mailers referred to in
subparagraph (A), subclauses (I) through (V) of subparagraph
(B)(ii) shall be deemed amended by striking the fraction
specified in each such subclause and inserting
''one-half''.
(4) The rates for the advertising portion of any mail matter
under former section 4358(d) or 4358(e) of this title shall
be equal to the rates for the advertising portion of the
most closely corresponding regular-rate category of mail,
except that if the advertising portion does not exceed 10
percent of the issue of the publication involved, the
advertising portion shall be subject to the same rates as
apply to the nonadvertising portion.
(5) The rates for any advertising under former section
4358(f) of this title shall be equal to 75 percent of the
rates for advertising contained in the most closely
corresponding regular-rate category of mail.
(b)(1) For the purposes of this title, the term ''periodical
publications'', as used in former section 4351 of this
title, includes (A) any catalog or other course listing,
including mail announcements of legal texts which are part
of post-bar admission education issued by any institution of
higher education or by a nonprofit organization engaged in
continuing legal education; and (B) any looseleaf page or
report (including any index, instruction for filing, table,
or sectional identifier which is an integral part of such
report) which is designed as part of a looseleaf reporting
service concerning developments in the law or public policy.
(2) Any material described in paragraph (1) of this
subsection shall qualify to be entered and mailed as second
class mail in accordance with the applicable provisions of
former section 4352 through former section 4357 of this
title. (3) For purposes of this subsection, the term
''institution of higher education'' has the meaning given it
by section 1201(a) of the Higher Education Act of 1965 (20
U.S.C. 1141(a)).
(c) In the administration of this section, one conservation
publication published by an agency of a State which is
responsible for management and conservation of the fish or
wildlife resources of such State shall be considered a
publication of a qualified nonprofit organization which
qualifies for rates of postage under former section 4358(d)
of this title.
(d)(1) For purposes of this title, the term
''agricultural'', as used in former sections 4358(j)(2),
4452(d), and 4554(b)(1)(B) of this title, includes the art
or science of cultivating land, harvesting crops or marine
resources, or raising of livestock.
(2) In the administration of this section, and for purposes
of former sections 4358(j)(2), 4452(d), and 4554(b)(1)(B) of
this title, agricultural organizations or associations shall
include any organization or association which collects and
disseminates information or materials relating to
agricultural pursuits.
(e)(1) In the administration of this section, the rates for
third-class mail matter mailed by a qualified political
committee shall be the rates currently in effect under
former section 4452 of this title for third-class mail
matter mailed by a qualified nonprofit organization. (2) For
purposes of this subsection - (A) the term ''qualified
political committee'' means a national or State committee of
a political party, the Republican and Democratic Senatorial
Campaign Committees, the Democratic National Congressional
Committee, and the National Republican Congressional
Committee; (B) the term ''national committee'' means the
organization which, by virtue of the bylaws of a political
party, is responsible for the day-to-day operation of such
political party at the national level; and (C) the term
''State committee'' means the organization which, by virtue
of the bylaws of a political party, is responsible for the
day-to-day operation of such political party at the State
level.
(f) In the administration of this chapter, the rates for
mail under former section 4358(g) of this title shall be
established without regard to either the provisions of such
former section 4358(g) or the provisions of this
section.
(g)(1) In the administration of this section, the rates for
mail under subsections (a), (b), and (c) of former section
4358 of this title shall not apply to an issue of a
publication if the number of copies of such issue
distributed within the county of publication is less than
the number equal to the sum of 50 percent of the total paid
circulation of such issue plus one.
(2) Paragraph (1) of this subsection shall not apply to an
issue of a publication if the total paid circulation of such
issue is less than 10,000 copies.
(h) In the administration of this section, the number of
copies of a subscription publication mailed to
nonsubscribers during a calendar year at rates under
subsections (a), (b), and (c) of former section 4358 of this
title may not exceed 10 percent of the number of copies of
such publication mailed at such rates to subscribers. ((i)
Repealed. Pub. L. 103-123, title VII, Sec. 704(a)(3)(A),
Oct. 28, 1993, 107 Stat. 1269.)
(j)(1) In the administration of this section, the rates for
mail under former section 4452(b) or 4452(c) of this title
shall not apply to mail which advertises, promotes, offers,
or, for a fee or consideration, recommends, describes, or
announces the availability of - (A) any credit, debit, or
charge card, or similar financial instrument or account,
provided by or through an arrangement with any person or
organization not authorized to mail at the rates for mail
under former section 4452(b) or 4452(c) of this title; (B)
any insurance policy, unless the organization which promotes
the purchase of such policy is authorized to mail at the
rates for mail under former section 4452(b) or 4452(c) of
this title, the policy is designed for and primarily
promoted to the members, donors, supporters, or
beneficiaries of the organization, and the coverage provided
by the policy is not generally otherwise commercially
available; (C) any travel arrangement, unless the
organization which promotes the arrangement is authorized to
mail at the rates for mail under former section 4452(b) or
4452(c) of this title, the travel contributes substantially
(aside from the cultivation of members, donors, or
supporters, or the acquisition of income or funds) to one or
more of the purposes which constitutes the basis for the
organization's authorization to mail at such rates, and the
arrangement is designed for and primarily promoted to the
members, donors, supporters, or beneficiaries of the
organization; or (D) any product or service (other than any
to which subparagraph (A), (B), or (C) relates), if - (i)
the sale of such product or the providing of such service is
not substantially related (aside from the need, on the part
of the organization promoting such product or service, for
income or funds or the use it makes of the profits derived)
to the exercise or performance by the organization of one or
more of the purposes constituting the basis for the
organization's authorization to mail at such rates; or (ii)
the mail matter involved is part of a cooperative mailing
(as defined under regulations of the Postal Service) with
any person or organization not authorized to mail at the
rates for mail under former section 4452(b) or 4452(c) of
this title; except that - (I) any determination under clause
(i) that a product or service is not substantially related
to a particular purpose shall be made under regulations
which shall be prescribed by the Postal Service and which
shall be consistent with standards established by the
Internal Revenue Service and the courts with respect to
subsections (a) and (c) of section 513 of the Internal
Revenue Code of 1986; and (II) clause (i) shall not apply if
the product involved is a periodical publication described
in subsection (m)(2) (including a subscription to receive
any such publication); and (III) clause (i) shall not apply
to space advertising in mail matter that otherwise qualifies
for rates under former section 4452(b) or 4452(c) of this
title, and satisfies the content requirements established by
the Postal Service for periodical publications: Provided,
That such changes in law shall take effect immediately and
shall stay in effect hereafter unless the Congress enacts
legislation on this matter prior to October 1, 1995.
(2) Matter shall not be excluded from being mail at the
rates for mail under former section 4452(b) or 4452(c) of
this title, by an organization authorized to mail at those
rates solely because - (A) such matter contains, but is not
primarily devoted to, acknowledgements of organizations or
individuals who have made donations to the authorized
organization; or (B) such matter contains, but is not
primarily devoted to, references to and a response card or
other instructions for making inquiries concerning services
or benefits available as a result of membership in the
authorized organization: Provided, that advertising,
promotional, or application materials specifically
concerning such services or benefits are not included.
(3)(A) Upon request, an organization authorized to mail at
the rates for mail under former section 4452(b) or 4452(c)
of this title shall furnish evidence to the Postal Service
concerning the eligibility of any of its mail matter or
mailings to be sent at those rates. (B) The Postal Service
shall establish procedures to carry out this paragraph,
including procedures for mailer certification of compliance
with the conditions specified in paragraph (1)(D) or
subsection (m), as applicable, and verification of such
compliance.
(k)(1) No person or organization shall mail, or cause to be
mailed by contractual agreement or otherwise, at the rates
for mail under former section 4452(b) or 4452(c) of this
title, any matter to which those rates do not apply.(2) The
Postal Service may assess a postage deficiency in the amount
of the unpaid postage against any person or organization
which violates paragraph (1) of this subsection. This
assessment shall be deemed the final decision of the Postal
Service, unless the party against whom the deficiency is
assessed appeals it in writing within thirty days to the
postmaster of the office where the mailing was entered. Such
an appeal shall be considered by an official designated by
the Postal Service, other than the postmaster of the office
where the mailing was entered, who shall issue a decision as
soon as practicable. This decision shall be deemed final
unless the party against whom the deficiency was assessed
appeals it in writing within thirty days to a further
reviewing official designated by the Postal Service, who
shall issue the final decision on the matter. (3) The Postal
Service shall maintain procedures for the prompt collection
of postage deficiencies arising from the violation of
paragraph (1) of this subsection, and may in its discretion,
follow the issuance of a final decision regarding a
deficiency under paragraph (2) of this subsection deduct the
amount of that deficiency incurred during the previous 12
months from any postage accounts or other monies of the
violator in its possession. (l) In the administration of
this section, the term ''advertising'', as used in former
section 4358(j)(2) of this title, does not include the
publisher's own advertising in a publication published by
the official highway or development agency of a State.
(m)(1) In the administration of this section, the rates for
mail under former section 4452(b) or 4452(c) of this title
shall not apply to mail consisting of products, unless such
products - (A) were received by the organization as gifts or
contributions; or (B) are low cost articles (as defined by
section 513(h)(2) of the Internal Revenue Code of 1986). (2)
Paragraph (1) shall not apply with respect to a periodical
publication of a qualified nonprofit organization.
SOURCE:
(Pub. L. 91-375, Aug. 12, 1970, 84 Stat. 762; Pub. L.
93-328, Sec. 1, June 30, 1974, 88 Stat. 287; Pub. L. 94-421,
Sec. 11, Sept. 24, 1976, 90 Stat. 1311; Pub. L. 95-593, Sec.
11(c), Nov. 4, 1978, 92 Stat. 2538; Pub. L. 99-272, title
XV, Sec. 15102(b)(1), (c), 15104, 15105, Apr. 7, 1986, 100
Stat. 330, 331; Pub. L. 99-509, title VI, Sec. 6003(a), Oct.
21, 1986, 100 Stat. 1933; Pub. L. 101-509, title II, Sec.
1(a), 3, Nov. 5, 1990, 104 Stat. 1397, 1399; Pub. L.
102-141, title II, Oct. 28, 1991, 105 Stat. 842, 843; Pub.
L. 103-123, title VII, Sec. 704(a)(1), (3)(A), 705(a)-(c),
708(e), Oct. 28, 1993, 107 Stat. 1267, 1269, 1271, 1273;
Pub. L. 103-329, title VI, Sec. 639, Sept. 30, 1994, 108
Stat. 2432.)
REFTEXT:
REFERENCES IN TEXT:
Former sections 4351 to 4358, 4452, and 4554 of this title,
referred to in subsecs. (a)-(e)(1), (f), (g)(1), (h), and
(j) to (m), mean the aforesaid sections which were
classified to former Title 39, The Postal Service, prior to
the general revision and reenactment of Title 39 by Pub. L.
91-375, Aug. 12, 1970, 84 Stat. 719.
Section 513 of the Internal Revenue Code of 1986, referred
to in subsecs. (j)(1)(D)(I) and (m)(1)(B), is classified to
section 513 of Title 26, Internal Revenue Code.
The phrase ''shall take effect immediately and shall stay in
effect hereafter'', referred to in subsec. (j)(1)(D)(III),
probably means that the provision shall take effect Sept.
30, 1994, the date of enactment of Pub. L. 103-329, which
enacted subsec. (j)(1)(D)(III), and shall stay in effect
after that date.
MISC2:
AMENDMENTS: 1994 - Subsec. (j)(1)(D)(III). Pub. L.
103-329 added cl. (III). 1993 - Subsec. (a). Pub. L.
103-123, Sec. 704(a)(1), amended subsec. (a) generally.
Prior to amendment, subsec. (a) read as follows: ''
(1) Except as provided in paragraph (2) of this subsection,
rates of postage for a class of mail or kind of mailer under
former section 4358, 4452(b), 4452(c), 4554(b), or 4554(c)
of this title shall be established in accordance with
applicable provisions of this chapter.
''(2) Rates of postage for a class of mail or kind of mailer
referred to in paragraph (1) of this subsection shall be
established in accordance with the requirement that the
direct and indirect postal costs attributable to such class
of mail or kind of mailer (excluding any other costs of the
Postal Service) shall be borne by such class of mail or kind
of mailer, as the case may be: Provided, however, That with
respect to mail under former section 4452(b) and 4452(c) of
this title the preceding limitation shall apply only to
rates of postage for letter shaped pieces, as such pieces
are defined in the associated classification and rate
schedules.''
Subsec. (i). Pub. L. 103-123, Sec. 704(a)(3)(A), struck out
subsec. (i) which defined ''reduced-rate category'' and
''regular-rate category'' and provided method for
determining costs recovered by revenues plus appropriations
for reduced-rate categories and for the purpose of
distinguishing costs recovered from regular-rate categories
and reduced-rate categories and determining appropriation
requests relating to reduced-rate categories.
Subsec. (j)(1)(D). Pub. L. 103-123, Sec. 705(a), added
subpar. (D).
Subsec. (j)(3). Pub. L. 103-123, Sec. 705(c), designated
existing provisions as subpar. (A) and added subpar.
(B).
Subsec. (k), (l). Pub. L. 103-123, Sec. 708(e), redesignated
subsec. (k), defining ''advertising'', as (l).
Subsec. (m). Pub. L. 103-123, Sec. 705(b), added subsec.
(m). 1991 - Subsec. (a)(2). Pub. L. 102-141 amended par. (2)
generally. Prior to amendment, par. (2) read as follows:
''Rates of postage for a class of mail or kind of mailer
referred to in paragraph (1) of this subsection shall be
established in accordance with the requirement that the
direct and indirect postal costs attributable to such class
of mail or kind of mailer (excluding any other costs of the
Postal Service) shall be borne by such class of mail or kind
of mailer, as the case may be.''
Subsec. (i)(2). Pub. L. 102-141 inserted ''Subject to the
requirements of section 2401(c) of this title and paragraph
(a)(2) of this section with respect to mail under former
sections 4452(b) and 4452(c) of this title,'' before ''This
subsection''.
1990 - Subsec. (j). Pub. L. 101-509, Sec. 1(a), added
subsec. (j).
Subsec. (k). Pub. L. 101-509, Sec. 3, added subsec. (k)
defining ''advertising''.
Pub. L. 101-509, Sec. 1(a), added subsec. (k) relating to
mailing of matter at inapplicable rates.
1986 - Subsec. (a). Pub. L. 99-272, Sec. 15102(b)(1),
amended subsec. (a) generally. Prior to amendment, subsec.
(a) read as follows: ''If the rates of postage for any class
of mail or kind of mailer under former sections 4358, 4359,
4421, 4422, 4452, or 4554 of this title, as such rates
existed on the effective date of this subchapter, are, on
the effective date of the first rate decision under this
subchapter affecting that class or kind, less than the rates
established by such decision, a separate rate schedule shall
be adopted for that class or kind effective each time rates
are established or changed under this subchapter, with
annual increases as nearly equal as practicable, so that
-
''(1) the revenues received from rates for mail under former
sections 4358, 4452(b) and (c), 4554(b) and (c) shall not,
on and after the first day of the sixteenth year following
the effective date of the first rate decision applicable to
that class or kind, exceed the direct and indirect postal
costs attributable to mail of such class or kind (excluding
all other costs of the Postal Service);
''(2) the rates for mail under former sections 4359, 4421,
4422, and 4554(a) shall be equal, on and after the first day
of the eighth year following the effective date of the first
rate decision applicable to that class or kind, to the rates
that would have been in effect for such mail if this
subparagraph had not been enacted; and ''(3) the rates for
mail under former section 4452(a) shall be equal, on and
after the first day of the fifth year following the
effective date of the first rate decision applicable to that
class or kind, to the rates that would have been in effect
for such mail if this subparagraph had not been enacted. No
person who would have been entitled to mail matter under
former section 4359 of this title shall mail such matter at
the rates provided under this subsection unless he files
annually with the Postal Service a written request for
permission to mail matter at such rates.'' Subsec. (f). Pub.
L. 99-272, Sec. 15102(c), added subsec. (f). Subsec. (g).
Pub. L. 99-272, Sec. 15104, added subsec. (g). Subsec. (h).
Pub. L. 99-272, Sec. 15105, added subsec. (h). Subsec. (i).
Pub. L. 99-509 added subsec. (i).
1978 - Subsec. (e). Pub. L. 95-593 added subsec. (e).
1976 - Pub. L. 94-421 designated existing provisions as
subsec. (a) and added subsecs. (b) to (d).
1974 - Pub. L. 93-328 substituted ''sixteenth'' for
''tenth'' year in subpar. (1), substituted ''under former
sections'' for ''under sections'', ''eighth'' for ''fifth''
year, and ''subparagraph'' for ''subsection'' and struck out
reference to section ''4452(a)'' after ''4422,'' in subpar.
(2), and added subpar. (3).
EFFECTIVE DATE OF 1993 AMENDMENT
Section 704(c)(1) of Pub. L. 103-123 provided that:
''The amendments made by subsection (a) (enacting section
3642 of this title and amending this section and section
3627 of this title) shall apply with respect to rates for
mail sent after September 30, 1993.''
Section 705(d) of Pub. L. 103-123 provided that: ''The
amendments made by this section (amending this section)
shall apply with respect to mail sent, and the rates for
mail sent, after December 31, 1993.''
EFFECTIVE DATE OF 1990 AMENDMENT
Amendment by section 1(a) of Pub. L. 101-509 effective
90 days after Nov. 5, 1990, see section 1(c) of Pub. L.
101-509, set out as a note under section 2401 of this
title.
EFFECTIVE DATE OF 1986 AMENDMENTS
6003(c) of Pub. L. 99-509 provided that: ''The
amendments made by this section (amending this section and
section 2401 of this title) shall take effect on January 1,
1989, or on the effective date of the next general change in
rates and fees under sections 3622 and 3625 of title 39,
United States Code (Apr. 3, 1988, see 53 F.R. 10014),
whichever is sooner.'' Section 15102(b)(2) of Pub. L. 99-272
provided that: ''The amendment made by this subsection
(amending this section) shall apply with respect to rates of
postage taking effect after December 31, 1985.''
RELIEF OF CERTAIN PERIODICAL PUBLICATIONS
Pub. L. 104-52, title V, Sec. 527, Nov. 19, 1995, 109
Stat. 496, provided that: ''For mail classification purposes
under section 3626 of title 39, United States Code, and any
regulations of the United States Postal Service for the
administration of that section, a weekly second-class
periodical publication which - ''(i) is eligible to publish
legal notices under any applicable laws of the State where
it is published; ''(ii) is eligible to be mailed at the
rates for mail under former subsection 4358(a), (b), and (c)
of title 39, United States Code, as limited by current
subsection 3626(g) of that title; and ''(iii) the pages of
which were customarily secured by 2 staples before March 19,
1989; shall not be considered to be a bound publication
solely because its pages continue to be secured by 2 staples
after that date.''
FORBEARANCE REGARDING
CERTAIN POSTAGE DEFICIENCIES
Section 2 of Pub. L. 101-509 provided that: ''(a) In
General. - The United States Postal Service may forbear from
the collection of any postage deficiency assessed against an
organization authorized to mail at the rates for mail under
former section 4452(b) or 4452(c) of title 39, United States
Code, if the assessment of that deficiency arises from a
violation of the cooperative mailing regulations of the
Postal Service set forth at section 625.5 of the Domestic
Mail Manual, and the Postal Service has made no
determination that the organization knowingly or willfully
violated such regulations. If any organizations authorized
to mail at the rates for mail under former section 4452(b)
or 4452(c) of title 39, United States Code, has paid on its
own behalf all or part of a postage deficiency which the
Postal Service would forbear from collecting under this
section, the Postal Service may refund to that organization
the amount which it has paid. ''(b) Effective Date and
Applicability. - The provisions of this section shall become
effective on the date of enactment of this Act (Nov. 5,
1990), and shall apply to mailings which were sent on or
between July 1, 1986, and the effective date of this
section.''
CONSTRUCTION RESPECTING POSTAGE RATES
REDUCTION UNAUTHORIZED
Section 2 of Pub. L. 93-328 provided that: ''Nothing in
section 1 of this Act (amending this section) shall be
construed to authorize a reduction in any rate of postage in
effect and being paid on the date of enactment of this Act
(June 30, 1974).''
SECREF:
SECTION REFERRED TO IN OTHER SECTIONS:
This section is referred to in sections 2401, 3629, 3642 of
this title.
|