ALAWON v2n56 (December 22, 1993) URL = http://hegel.lib.ncsu.edu/stacks/serials/alawon/alawon-v2n56 ****Begin File******************Begin File*******************Begin File**** *************************************************************************** ISBN 1069-7799 ALAWON ALA Washington Office Newsline An electronic publication of the American Library Association Washington Office Volume 2, Number 56 December 22, 1993 In this issue: (186 lines) PREFERRED POSTAL RATES AND ELIGIBILITY RULES CHANGE REGULATIONS PROPOSED TO RESTRICT USE OF 3RD-CLASS NONPROFIT MAIL *************************************************************************** PREFERRED POSTAL RATES AND ELIGIBILITY RULES CHANGE This article will summarize statutory changes made this year to preferred postal rates and the steps the U.S. Postal Service has taken to implement these provisions. Two kinds of mail are not affected by the changes--free mail for the blind, and overseas voting by U.S. citizens. Together these mailings are expected to cost about $63 million in FY 1994--revenue forgone funding which was requested by the President and provided by Congress. For other nonprofit 2nd, 3rd, and 4th class rates which have been partially supported by congressional appropriations, the Administration requested no funds. Congress responded by enacting a major postal rate restructuring which eliminated the authority for revenue forgone funding but retained some preferential treatment for nonprofit mailers. These rates increase modestly over a six-year phase-in period due to the restructuring, and will also increase in the future as postal costs and rates increase generally. However, nonprofit rates are still considered "preferred," because they have been assigned overhead costs equal to half (in the sixth year and thereafter) of the corresponding commercial rate overhead. NEW RATES. New rates took effect November 21, 1993 as listed in the November 11, 1993 USPS Postal Bulletin, and published in the November 16 _Federal Register_, pp. 60386-88. Over the next five years, expect to see similar increases effective in October--annually for 2nd- and 3rd-class nonprofit rates, and every other year for the 4th-class library rate. The typical second class classroom publication increased by four-tenths of a cent. Also effective November 21, commercial rates apply to the advertising portion of 2nd-class special rate and classroom rate publications when an issue or edition contains more than ten percent advertising. Third class letter-size piece rates increased by two-tenths of a cent. Restrictions on the kinds of mail sent at the special bulk 3rd-class rates will be imposed, but these eligibility changes will not be effective until after proposed regulations are published for public comment. (See following article.) LIBRARY RATE. The 4th-class library rate increased by one penny for the first pound. The average 3.5 pound library rate package went up from $1.37 to $1.38. Fourth Class Library Rate Old Rate New Rate as of 11/21/93 First pound $ .65 $ .66 Each addit. lb. through 7 lbs. .24 .24 Each addit. lb. over 7 lbs. .12 .12 Also effective November 21, publishers are allowed to mail books and other eligible materials at the library rate only if they are mailed in response to a purchase order from a qualifying institution or organization. USPS criteria for library rate mail now read as follows: The following items may be mailed at the library rate when sent between: (1) Schools, colleges, universities, public libraries, museums, herbariums, and nonprofit religious, educational, scientific, philanthropic (charitable), agricultural, labor, veterans', and fraternal organizations or associations, (2) any such institution, organization, or association, and an individual who has no financial interest in the sale, promotion, or distribution of the materials, or (3) any such institution, organization, or association, and a publisher, if such institution, organization, or association has placed an order to purchase such materials for delivery to itself: a. Books, consisting wholly of reading matter, scholarly bibliography, or reading matter with incidental blank spaces for notations and containing no advertising except for incidental announcements of books. b. Printed music, whether in bound or sheet form. c. Bound volumes of academic theses in typewritten or duplicated form. d. Periodicals, whether bound or unbound. e. Sound recordings. f. Other library materials in printed, duplicated, or photographic form or in the form of unpublished manuscripts. g. Museum materials, specimens, collections, teaching aids, printed matter, and interpretive materials for informing and furthering the educational work and interests of museums and herbariums. LEGISLATION. The House passed a restructuring of preferred postal rates in its reconciliation measure in May. However, that provision was dropped in House-Senate conference. The Senate included a similar restructuring proposal in its version of H.R. 2403, the Treasury, Postal Service, and General Government Appropriations Bill for FY94. The Senate passed H.R. 2403 in August. House-Senate conferees retained the provision, adjusted it slightly, and Congress gave final approval on October 26. President Clinton signed H.R. 2403 into law on October 28. The postal provision, title VII of PL 103-123, is known as the Revenue Forgone Reform Act. The preferred postal rate restructuring passed originally by both House and Senate would have eliminated all publisher use of the 4th-class library rate; the added cost would undoubtedly have been passed along to recipients. The champions in restoring library rate eligibility for items ordered by libraries and educational institutions were Senators Thad Cochran (R-MS), Ted Stevens (R-AK), and Christopher Bond (R-MO), who discussed such an amendment on the Senate floor in August. Although the amendment was not offered, postal appropriations subcommittee Chairman Dennis DeConcini (D-AZ) said he would attempt to accommodate the Senators in conference. This change was incorporated in the conference report (H. Rept. 103-246). PL 103-123 authorizes $29 million per year from FY 1994 through FY 2035 for the cost of phasing in the reform and for previous shortfalls in revenue forgone appropriations. The actual appropriation for FY94 for revenue forgone is $91,434,000, of which $63 million is the estimated cost of free mail for the blind and for overseas voters. If Congress does not provide the annual $29 million adjustment, postal rates may be adjusted in future years to make up any shortfalls. *************************************************************************** REGULATIONS PROPOSED TO RESTRICT USE OF 3RD-CLASS NONPROFIT MAIL The U.S. Postal Service has published proposed regulations restricting eligibility for third-class nonprofit mail. Organizations using special bulk third-class rates for periodical publications that carry space advertising are urged to look carefully at these provisions. The proposal would implement the Revenue Forgone Reform Act (referenced above), but takes a stricter line than Congress intended by disallowing publications which accept outside paid advertising. A Senate floor discussion in October designed to show Senate intent indicated that examples such as a church newsletter which contained an ad for a local business should still be eligible for the preferred third-class rate. However, the proposed regulations prohibit any space ads in third-class nonprofit periodical publications except those that are mission related. To qualify material that advertises, promotes, offers, or, for a fee or consideration, recommends, describes, or announces the availability of products or services in a nonprofit third-class mailing, the sale of the product or the providing of the service must contribute importantly to the accomplishment of the purposes of the organization. The only products mailable at these rates are low cost items ($6.20 or less), donated or contributed items, or periodical publications of qualified organizations. As a separate matter, USPS plans to require an official of the qualifying organization to submit a signed statement certifying that the mailing qualifies for special bulk third-class rates. The proposed regulations were published in the December 10 _Federal Register_, pp. 64918-19. According to the notice, comments are due January 10. However, the comment period has been extended to February 9, 1994. The effective date of the final regulations is expected to be about March 1. For further information, contact Ernest Collins, Manager, Mailing Standards, Marketing Systems, Room 8430, USPS Headquarters, 475 L'Enfant Plaza West, SW, Washington, DC 20260-2419 (202-268-5316). *************************************************************************** *************************************************************************** ALAWON (ISSN 1069-7799) is an irregular publication of the American Library Association Washington Office, 110 Maryland Avenue, N.E., Washington, DC 20002-5675. Internet: alawash@alawash.org; Phone: 202-547-4440; Fax: 202-547-7363. Editor: Carol C. Henderson (cch@alawash.org). All or part of ALAWON may be redistributed, with appropriate credits. ALAWON is available free of charge and is available only in electronic form. To subscribe, send the message "subscribe ala-wo [your name]" to listserv@uicvm (Bitnet) or listserv@uicvm.uic.edu (internet). Back issues and other documents are available from the list server. To find out what's available, send the message "send ala-wo filelist" to the listserv. The ALA-WO filelist contains the list of files with the exact filename and filetype. To get a particular file, issue the command "send filename filetype" to the listserv. Do not include the quotes in your commands. *************************************************************************** ***End of file******************End of file******************End of file***