Federal Register / Vol. 87, No. 98 / Friday, May 20, 2022 / Notices 31007 

1 39 CFR 3040 subpart D contains multiple 

requirements for proposals of the Commission to 

modify the Competitive product list, including an 

indication of whether a proposal would add, move, 

or remove a product, as well as providing 

justification supporting the proposal. In this 

instance, it is not appropriate to include this 

information, as the proposal is a vehicle to receive 

information to make a determination of whether a 

concerted proposed action is required. 

2As discussed further below, the Commission, in 

approving the Gift Cards price category within the 

Greeting Cards and Stationery product, determined 

that it was appropriately a postal product (as 

opposed to a non-postal product). 

3 39 U.S.C. 404(e) details the statutory authority 

for terminating non-postal products, and the 

statutory authority is noted in multiple precedents, 

including a 2010 ruling in the United States Court 

of Appeals for the District of Columbia Circuit, 

which noted that ‘‘Congress[. . .] provide[d] that 

the Postal Regulatory Commission was to conduct 

a review of ‘each nonpostal service offered by the 

Postal Service’ . . . to determine whether it should 

be terminated. . . .’’ USPS v. Postal Regul. 

Comm’n, 599 F.3d 705, 707 (D.C. Cir. 2010). 

Additionally, the United States Postal Service 

Office of Inspector General published a 

management advisory report in 2012 that stated that 

the PAEA ‘‘repealed the Postal Service’s authority 

to offer ‘non-postal services’ and prohibited offering 

any new non-postal services.’’ United States Postal 

Service, Office of Inspector General, Report No. 

DA–MA–12–005, 21st Century Post Office: NonPostal Products and Services, July 16, 2012, at 9, 

available at https://www.uspsoig.gov/sites/default/ 

files/document-library-files/2015/DA-MA-12- 

005.pdf. 

4 Gift Cards is a price category within the Gift 

Cards and Stationery product. The Commission and 

the Postal Service have both referred to Gift Cards 

as a product in multiple filings, and for the 

purposes of this inquiry, the Commission will 

continue to do so throughout this Order to avoid 

confusion. 

5See Docket No. MC2014–26, Request of the 

United States Postal Service to Add Gift Cards as 

a New Price Category in the Greeting Cards and 

Stationery Product, June 9, 2014, Attachment B at 

7 (Docket No. MC2014–26 Request). See also Docket 

No. MC2014–26, Order Granting Request to Add 

Gift Cards to the Competitive Product List, August 

8, 2014 (Order No. 2145). 

6See Docket No. ACR2021, Commission 

Information Request No. 1, January 7, 2022 (Docket 

No. ACR2021, CIR No. 1). See also Docket No. 

ACR2021, Responses of the United States Postal 

Service to Questions 1–7 of Commission 

Information Request No. 2, PowerPoint file 

‘‘CIR.2.Q.4.Pictures of Promo Items.pptx,’’ February 

4, 2022 (Docket No. ACR2021, Response to CIR No. 

2). 

As required by the Paperwork 

Reduction Act of 1995, Public Law 104– 

13, 94 Stat. 2812 (1980), and as 

amended by the Clinger-Cohen Act, 

Public Law 104–106, 110 Stat. 186 

(1996), OPM is soliciting comments for 

this collection of information (OMB No. 

3206–0211). The Office of Management 

and Budget is particularly interested in 

comments that consider the following: 

1. Whether the proposed collection of 

information is necessary for the proper 

performance of functions of the agency, 

including whether the information will 

have practical utility; 

2. The accuracy of the agency’s 

estimate of the burden of the proposed 

collection of information, including the 

validity of the methodology and 

assumptions used; 

3. Whether the quality, utility, and 

clarity of the information collected 

could be enhanced; and 

4. Whether the burden of the 

collection of information could be 

minimized on those who are responsible 

for providing this information, 

including through the use of appropriate 

automated, electronic, mechanical, or 

other technological collection 

techniques or other forms of information 

technology (e.g., permitting electronic 

submissions of responses). 

Analysis 

Agency: Retirement Services, Office of 

Personnel Management. 

Title: Notice of Change in Student’s 

Status. 

OMB Number: 3206–0042. 

Frequency: On occasion. 

Affected Public: Individuals or 

Households. 

Number of Respondents: 2,500. 

Estimated Time per Respondent: 20 

minutes. 

Total Burden Hours: 835. 

U.S. Office of Personnel Management. 

Kellie Cosgrove Riley, 

Director, Office of Privacy and Information 

Management. 

[FR Doc. 2022–10880 Filed 5–19–22; 8:45 am] 

BILLING CODE 6325–38–P 

POSTAL REGULATORY COMMISSION 

[Docket No. MC2022–60; Order No. 6174] 

Mail Classification Schedule 

AGENCY: Postal Regulatory Commission. 

ACTION: Notice. 

SUMMARY: The Commission is initiating 

a filing requesting an examination of the 

potential need to make modifications to 

the Mail Classification Schedule. This 

notice informs the public of the filing, 

invites public comment, and takes other 

administrative steps. 

DATES: Comments are due: June 30, 

2022. 

ADDRESSES: Submit comments 

electronically via the Commission’s 

Filing Online system at http://

www.prc.gov. Those who cannot submit 

comments electronically should contact 

the person identified in the FOR FURTHER

INFORMATION CONTACT section by 

telephone for advice on filing 

alternatives. 

FOR FURTHER INFORMATION CONTACT: 

David A. Trissell, General Counsel, at 

202–789–6820. 

SUPPLEMENTARY INFORMATION: 

Table of Contents 

I. Introduction 

II. Background 

III. Notice of Commission Action 

IV. Ordering Paragraphs 

I. Introduction 

The Postal Regulatory Commission 

(Commission) initiates the instant 

docket to examine the potential need to 

make a modification to the Mail 

Classification Schedule (MCS) in order 

to fulfill the Commission’s 

responsibilities under the Postal 

Accountability and Enhancement Act 

(PAEA), Public Law 109–435, 120 Stat. 

3198 (2006), the Postal Service Reform 

Act of 2022, Public Law 117–89, 136 

Stat. 1127 (2022), and pursuant to 39 

CFR 3040 subpart D.1 Specifically, the 

Commission seeks information on the 

Postal Service’s recent pilot program in 

which it added to the accepted payment 

methods, at specifically-identified Post 

Offices, in order to allow postal retail 

customers to exchange payroll and 

business checks for stored value Gift 

Cards (Pilot Program). The Commission 

seeks the information to determine 

whether the Pilot Program has changed 

the nature of the Competitive product at 

issue (Special Services—Greeting Cards 

and Stationery) to the degree that the 

Gift Cards price category (or an 

undefined sub-component) may be 

categorized as a non-postal product.2 A 

finding that the price category, product, 

or sub-component is a non-postal 

product would require its termination.3

II. Background 

In FY 2014, the Commission approved 

the Postal Service’s sale of Gift Cards 4

as a product that was ‘‘likely to be 

mailed, similar to greeting cards and 

stationery’’ and was often involved in 

the sale of other postal retail products 

such as greeting cards.5 In the Docket 

No. MC2014–26 Request, the Postal 

Service stated that it ‘‘d[id] not intend 

to use th[e] filing as a step into offering 

banking services,’’ and if any Postal 

Service proposal should ever offer 

banking services, ‘‘such proposals 

would be done in a separate filing.’’ See 

Docket No. MC2014–26, Request, 

Attachment B at 3 n.2. 

Following the Postal Service’s 

publication of the FY 2021 Annual 

Compliance Report (ACR), the 

Commission submitted an information 

request for the Postal Service to provide 

additional insight regarding a pilot 

program to allow postal retail customers 

to cash payroll and business checks in 

exchange for stored value Gift Cards.6


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31008 Federal Register / Vol. 87, No. 98 / Friday, May 20, 2022 / Notices 

7See Docket No. ACR2021, Responses of the 

United States Postal Service to Questions 1–2 of 

Commission Information Request No. 1, January 14, 

2022, question 1.c. (Docket No. ACR2021, Response 

to CIR No. 1). 

8See Docket No. ACR2021, Response to CIR No. 

1, questions 1.a.–1.b. The four locations are: 

Baychester Post Office, 1525 E Gun Hill Road, 

Bronx, NY 10469; Bailey Crossroads Post Office, 

6021 Leesburg Pike, Falls Church, VA 22041; 

National Capitol (Dorothy Height) Post Office, 2 

Massachusetts Ave. NE, Washington, DC 20002; and 

Baltimore Post Office, 900 E Fayette Street, 

Baltimore, MD 21233. Id. question 1.a. Since all 

four locations already offered Gift Cards, the Postal 

Service asserts that minimal training was necessary 

for the 28 clerks and 8 management staff to allow 

for the additional form of payment. Id. questions 

1.o.–1.p. The training was ‘‘[i]n partnership with a 

major postal union’’ and ‘‘consisted of content 

providing a background of the pilot, . . . 

discussions of check handling processes, standard 

work instruction for the transaction including 

Point-of-Sale workflow, and FAQs.’’ Id. question 

1.p. 

9See Docket No. ACR2021, Response to CIR No. 

2, PowerPoint file ‘‘CIR.2.Q.4.Pictures of Promo 

Items.pptx.’’ 

10See Docket No. ACR2021, Second Response of 

the United States Postal Service to Commission 

Requests for Additional Information in the FY 2021 

Annual Compliance Determination, May 10, 2022, 

at 11. 

11 Docket No. ACR2021, Annual Compliance 

Determination, March 29, 2022, at 103. 

12 Docket No. ACR2021, First Response of the 

United States Postal Service to Commission 

Requests for Additional Information in the FY 2021 

Annual Compliance Determination, April 12, 2022, 

at 2. 

The Postal Service provided a 

response to Docket No. ACR2021, CIR 

No. 1 detailing that in FY 2021, the 

Postal Service initiated such a Pilot 

Program, stating that it was ‘‘merely 

testing a new form of payment for an 

established postal product—gift 

cards.’’ 7

The Postal Service initiated the Pilot 

Program on September 13, 2021, at four 

Post Office retail locations in response 

to a request from a stakeholder that 

identified the program as ‘‘an initiative 

that could potentially be useful for a 

segment of consumers.’’ 8 The Postal 

Service stated that in order to gain 

insight into this market, it considered 

secondary research, including a 2019 

survey by the Federal Deposit Insurance 

Corporation called ‘‘How America 

Banks: Household Use of Banking and 

Financial Services’’ as well as USPS 

Office of Inspector General reports on 

potential postal financial services. Id. 

question 1.b. 

Under the Pilot Program, the 

additional forms of payment accepted 

for Gift Cards at the four test sites are 

payroll or business checks, defined as a 

printed check with a company’s name 

pre-printed, made payable to the 

customer, and accepted in accordance 

with Handbook F–101. See Docket No. 

ACR2021, Response to CIR No. 1, 

questions 1.a.–1.q.; see also Docket No. 

ACR2021, Response to CIR No. 2, 

question 5. The customer is charged a 

fee of $5.95 for a variable Gift Card up 

to $500 (or $5.95 per Gift Card, if the 

customer elects to put the value on 

multiple cards), the total amount loaded 

on the Gift Card(s) cannot exceed $500 

per day per customer, and no cash is 

disbursed to the customer. As with the 

policy for all Gift Card purchases, once 

the Gift Card is activated it cannot be 

returned for a refund or credit. See 

Docket No. ACR2021, Response to CIR 

No. 1, questions 1.a.–1.q. 

While the Pilot Program only accepts 

business and payroll checks made 

payable to the customer in connection 

with the sale of Gift Cards at the four 

test sites, the Postal Service noted that 

for many years it has cashed or 

redeemed salary checks or Money 

Orders in a limited number of 

circumstances. See Docket No. 

ACR2021, Response to CIR No. 2, 

question 5. Specifically, the Postal 

Service has been issuing Money Orders 

since the Civil War, and for the past 50 

years, the Postal Service has been 

cashing Postal Service-issued salary 

checks and Money Orders at no 

additional charge. Id. The Postal Service 

also noted that in the last 10 years, and 

‘‘in cooperation with the United States 

Treasury, the Postal Service has cashed 

Treasury checks for a nominal fee.’’ Id. 

It further noted that ‘‘[c]ommerical 

checks have long been accepted as 

payment for purchase of postage.’’ Id. 

The Postal Service stated in Docket 

No. ACR2021, Response to CIR No. 2 

that ‘‘no new products or services are 

involved,’’ but the market research 

referred to in Docket No. ACR2021, 

Response to CIR No. 1 suggested that the 

new payment option is targeted 

specifically at a market looking for 

financial services. Compare Docket No. 

ACR2021, Response to CIR No. 2, 

question 6, with Docket No. ACR2021, 

Response to CIR No. 1, question 1.b. The 

Postal Service’s own promotional 

materials market the product using the 

language, ‘‘Need to ‘cash’ a check?’’ 9

The Postal Service’s payment change 

coupled with changes in the marketing 

and planned usage of the product have 

the potential to change the nature of the 

product, thereby necessitating the 

examination of the impact of the Pilot 

Program to the underlying Gift Cards 

product. 

Additionally, although the Postal 

Service asserts that the Gift Cards 

product was already approved by the 

Commission, the approval of the 

product was based on the premise that 

the availability of Gift Cards ‘‘stimulates 

demand for postal services’’ and 

‘‘enhances the use of the mail.’’ See 

Order No. 2145 at 4. The Postal 

Service’s evidence in Docket No. 

MC2014–26 demonstrated at the time 

that the majority of Gift Cards sales not 

only involved the purchase of other 

postal items but were more likely to be 

mailed than Gift Cards purchased 

elsewhere. Id. at 5–6. From September 

13, 2021, to January 12, 2022, a total of 

six Gift Cards were purchased under the 

Pilot Program (using the business or 

payroll check payment method) 

generating a total fee revenue of $35.70. 

See Docket No. ACR2021, Response to 

CIR No. 1, questions 1.d., 1.g., 1.h. 

Additionally, the Postal Service 

provided the total fee revenue for the 

Gift Cards associated with business 

checks in Quarter 2 of $5.95, 

representing one single transaction.10

The Commission notes that under the 

current Pilot Program, none of the 

transactions have involved the sale of 

other postal products. Furthermore, the 

Postal Service does not track whether 

Gift Cards are mailed (regardless of the 

method of purchase) and has not made 

an attempt as of yet to determine via 

surveys or other tools whether 

customers are likely to mail the Gift 

Cards purchased under the Pilot 

Program. See Docket No. ACR2021, 

Response to CIR No. 2, questions 2–3. 

In its FY 2021 Annual Compliance 

Determination (ACD), the Commission 

directed the Postal Service to report 

quarterly information on the Pilot 

Program, including updates on volume 

and revenue, as well as future plans for 

the Pilot Program as long as it remains 

in effect.11 In addition, the Commission 

directed the Postal Service to file a 

notice of termination with the 

Commission when the Pilot Program 

ends, including notification no later 

than 14 days after the publication of the 

ACD of whether the Postal Service is 

continuing the program past its initially 

anticipated end date of March 2022. Id. 

The Postal Service provided a 

response to the Pilot Program ACD 

directive, stating that ‘‘the Postal 

Service has continued the pilot 

program,’’ and ‘‘[n]o final 

determinations have been reached with 

regard to ending the pilot, or with 

regard to any other potential steps that 

might be taken to modify the pilot.’’ 12

The Postal Service further stated that it 

‘‘remains of the view that the pilot 

program is an appropriate and limited 

test of an alternative payment method 

for the established gift card product, 

which does not implicate the current 

Mail Classification Schedule, and that 


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Federal Register / Vol. 87, No. 98 / Friday, May 20, 2022 / Notices 31009 

1Notice of United States Postal Service of Filing 

Functionally Equivalent Inbound Competitive 

Multi-Service Agreement with Foreign Postal 

Operators, May 13, 2022 (Notice). Docket Nos. 

MC2010–34 and CP2010–95, Order Adding 

Inbound Competitive Multi-Service Agreements 

with Foreign Postal Operators 1 to the Competitive 

Product List and Approving Included Agreement, 

September 29, 2010 (Order No. 546). 

2 Id. at 3–5. See Docket No. CP2020–169, Order 

Approving Additional Inbound Competitive MultiService Agreement with Foreign Postal Operators, 

June 25, 2020 (Order No. 5563). 

no further regulatory action is warranted 

at this time.’’ Id. 

The Commission noted in the ACD 

that should the Pilot Program remain in 

effect after March 2022, the Commission 

would initiate this Mail Classification 

proceeding pursuant to 39 CFR 3040 to 

explore and review the issues discussed 

in the ACD. During this Mail 

Classification proceeding, the 

Commission will conduct information 

gathering to explore and review the 

product at issue and may determine in 

the course of this proceeding whether 

the product at issue, or a defined subunit of that product, must be categorized 

as non-postal and therefore terminate. 

III. Notice of Commission Action 

Pursuant to 39 CFR 3040.173, the 

Commission establishes Docket No. 

MC2022–60 to gather information to 

determine appropriate classification 

action and invites comments on 

whether the Postal Service’s Pilot 

Program comports with 39 CFR 3035, 39 

CFR 3040, 39 CFR 3045, 39 U.S.C. 404, 

39 U.S.C. 3632, 39 U.S.C. 3633, and 39 

U.S.C. 3641. Comments are due no later 

than June 30, 2022. The filing can be 

accessed via the Commission’s website 

(https://www.prc.gov). 

The Commission appoints Kenneth E. 

Richardson to represent the interests of 

the general public (Public 

Representative) in this docket. 

IV. Ordering Paragraphs 

It is ordered: 

1. The Commission establishes Docket 

No. MC2022–60 to consider matters 

raised by this Notice. 

2. Comments are due no later than 

June 30, 2022. 

3. Pursuant to 39 U.S.C. 505, the 

Commission appoints Kenneth E. 

Richardson to serve as an officer of the 

Commission (Public Representative) to 

represent the interests of the general 

public in this proceeding. 

4. The Commission directs the 

Secretary of the Commission to arrange 

for prompt publication of this Notice in 

the Federal Register. 

By the Commission. 

Erica A. Barker, 

Secretary. 

[FR Doc. 2022–10899 Filed 5–19–22; 8:45 am] 

BILLING CODE 7710–FW–P 

POSTAL REGULATORY COMMISSION 

[Docket No. CP2022–65; Order No. 6173] 

Inbound Competitive Multi-Service 

Agreements With Foreign Postal 

Operators 

AGENCY: Postal Regulatory Commission. 

ACTION: Notice. 

SUMMARY: The Commission is 

recognizing a recent filing by the Postal 

Service that it has entered into the 

Inbound Competitive Multi-Service 

Agreement with Foreign Postal 

Operators (FPOs). This notice informs 

the public of the filing, invites public 

comment, and takes other 

administrative steps. 

DATES: Comments are due: May 23, 

2022. 

ADDRESSES: Submit comments 

electronically via the Commission’s 

Filing Online system at http://

www.prc.gov. Those who cannot submit 

comments electronically should contact 

the person identified in the FOR FURTHER

INFORMATION CONTACT section by 

telephone for advice on filing 

alternatives. 

FOR FURTHER INFORMATION CONTACT: 

David A. Trissell, General Counsel, at 

202–789–6820. 

SUPPLEMENTARY INFORMATION: 

Table of Contents 

I. Introduction 

II. Initial Administrative Actions 

III. Ordering Paragraphs 

I. Introduction 

On May 13, 2022, the Postal Service 

filed a notice with the Commission 

pursuant to 39 CFR 3035.105 and Order 

No. 546,1 giving notice that it has 

entered into an Inbound Competitive 

Multi-Service Agreement with Foreign 

Postal Operators (FPOs). The Notice 

concerns the inbound portions of the 

competitive product agreement PRIME 

United States Postal Service Registered 

Service Agreement (PRIME–USPS 

Registered Agreement). Notice at 1. The 

Postal Service seeks to include the 

PRIME–USPS Registered Agreement 

within the Inbound Multi-Service 

Agreement with Foreign Postal 

Operators 1 (MC2010–34) product. Id. 

The PRIME–USPS Registered 

Agreement contains rates for registered 

services. Id. at 6. 

The Postal Service asserts that the 

PRIME–USPS Registered Agreement ‘‘is 

functionally equivalent to the baseline 

agreement filed in Docket No. MC2010– 

34 because the terms of this agreement 

are similar in scope and purpose to the 

terms of the CP2010–95 Agreement.’’ Id. 

at 3. It also asserts that the PRIME– 

USPS Registered Agreement is similar to 

other agreements reviewed by the 

Commission in the past, including the 

PRIME–USPS Tracked Agreement in 

Docket No. CP2020–169.2

Concurrent with the Notice, the Postal 

Service filed supporting financial 

documentation and the following 

documents: 

• Attachment 1—an application for 

non-public treatment; 

• Attachment 2—the PRIME–USPS 

Registered Agreement; 

• Attachment 3—Governors’ Decision 

No. 19–1; and 

• Attachment 4—a certified statement 

required by 39 CFR 3035.105(c)(2). 

Notice at 5. 

The Postal Service intends for the 

PRIME–USPS Registered Agreement to 

become effective June 1, 2022, and 

continue indefinitely. Id. at 6. The 

Postal Service states that counterparties 

to this agreement are FPOs that 

exchange mail with the Postal Service 

and apply the Universal Postal 

Convention and Universal Postal 

Convention Regulations to those 

exchanges, unless otherwise agreed by 

contract. Id. The Postal Service provides 

that additional FPOs may become party 

to the agreement and states that it will 

update this docket should additional 

FPOs accede to the PRIME–USPS 

Registered Agreement. Id. 

The Postal Service states that one of 

the goals of the PRIME–USPS Registered 

Agreement is to ‘‘enable and incentivize 

the parties to provide optimal services 

in the interest of their customers.’’ Id. 

Additionally, the Postal Service notes 

that the PRIME–USPS Registered 

Agreement does not affect any other 

PRIME agreements. Id. 

The Postal Service asserts that the 

PRIME–USPS Registered Agreement is 

in compliance with 39 U.S.C. 3633 and 

is functionally equivalent to the 

inbound competitive portions of the 

baseline agreement, which was included 

in the Inbound Competitive MultiService Agreements with Foreign Postal 

Operators 1 product (MC2010–34). Id. at 

10. For these reasons, the Postal Service 

contends that the PRIME–USPS 

Registered Agreement should be added 

to the Inbound Competitive MultiService Agreements with Foreign Postal 

Operators 1 (MC2010–34) product. Id. 

II. Initial Administrative Actions 

The Commission establishes Docket 

No. CP2022–65 for consideration of 


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