47658 Federal Register / Vol. 82, No. 197 / Friday, October 13, 2017 / Proposed Rules 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 54 

[REG–115615–17] 

RIN 1545–BN92 

Religious Exemptions and 

Accommodations for Coverage of 

Certain Preventive Services Under the 

Affordable Care Act; Proposed 

Rulemaking 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Notice of proposed rulemaking 

by cross-reference to temporary 

regulations. 

SUMMARY: In this issue of the Federal 

Register, the Department of Treasury 

and the IRS are issuing two sets of 

temporary regulations related to section 

9815 of the Internal Revenue Code. The 

first set of temporary regulations, as 

published in TD 9827, amends final 

regulations published under the 

provisions of the Patient Protection and 

Affordable Care Act (the Affordable Care 

Act) and relates to expanded 

exemptions to protect religious beliefs 

for entities and individuals with 

objections based on religious beliefs 

whose health plans are subject to a 

mandate of contraceptive coverage 

through guidance issued pursuant to the 

Affordable Care Act. These proposed 

regulations refer to that first set of 

temporary regulations. The second set of 

temporary regulations, as published in 

TD 9828, amends the first set of 

temporary regulations, as published in 

TD 9827, to add an exemption to protect 

moral convictions for entities and 

individuals with objections based on 

those beliefs whose health plans are 

subject to the mandate of contraceptive 

coverage. 

DATES: Written or electronic comments 

and requests for a public hearing must 

be received by December 5, 2017. 

ADDRESSES: Send submissions to: 

CC:PA:LPD:PR (REG–115615–17), Room 

5205, Internal Revenue Service, P.O. 

Box 7604, Ben Franklin Station, 

Washington, DC 20044. Submissions 

may be hand-delivered to: 

CC:PA:LPD:PR (REG–115615–17), 

Courier’s Desk, Internal Revenue 

Service, 1111 Constitution Avenue NW., 

Washington, DC 20224. Alternatively, 

taxpayers may submit comments 

electronically via the Federal 

eRulemaking Portal at http://

www.regulations.gov (IRS REG–115615– 

17). 

FOR FURTHER INFORMATION CONTACT: 

Concerning the regulations, Karen Levin 

at 202–317–5500; concerning 

submissions of comments, Regina 

Johnson at 202–317–6901 (not toll-free 

numbers). 

SUPPLEMENTARY INFORMATION: 

Background and Explanation of 

Provisions 

The temporary regulations published 

elsewhere in this issue of the Federal 

Register amend §§ 54.9815–2713 and 

54.9815–2713A of the Miscellaneous 

Excise Tax Regulations. The temporary 

regulations provide guidance to certain 

entities and individuals whose health 

plans are subject to a mandate of 

contraceptive coverage and do not alter 

the discretion of the Health Resources 

and Services Administration, a 

component of the U.S. Department of 

Health and Human Services, to maintain 

the guidelines requiring contraceptive 

coverage where no regulatorily 

recognized objection exists. The 

temporary regulations also leave in 

place the accommodation process as an 

optional process for certain exempt 

entities that wish to use it voluntarily 

and do not alter other Federal programs 

that provide free or subsidized 

contraception for women at risk of 

unintended pregnancy. The proposed 

and temporary regulations are being 

published as part of a joint rulemaking 

with the Department of Labor and the 

Department of Health and Human 

Services (the joint rulemaking). The text 

of those temporary regulations also 

serves as the text of these proposed 

regulations. The preamble to the 

temporary regulations further explains 

the temporary regulations and these 

proposed regulations. 

Special Analyses 

Certain IRS regulations, including this 

one, are exempt from the requirements 

of Executive Order 12866, as 

supplemented by Executive Order 

13563. Therefore, a regulatory 

assessment is not required. 

For the applicability of the Regulatory 

Flexibility Act (5 U.S.C. Chapter 6), 

please see section VI.C. of the temporary 

regulations. 

Pursuant to section 7805(f) of the 

Internal Revenue Code, this notice of 

proposed rulemaking has been 

submitted to the Chief Counsel for 

Advocacy of the Small Business 

Administration for comment on the 

regulations’ impact on small businesses. 

Comments and Requests for a Public 

Hearing 

Before these proposed regulations are 

adopted as final regulations, 

consideration will be given to any 

written comments (a signed original and 

eight (8) copies) or electronic comments 

that are submitted timely to the IRS. 

Comments are specifically requested on 

the clarity of the proposed regulations 

and how they may be made easier to 

understand. All comments will be 

available for public inspection and 

copying. A public hearing may be 

scheduled if requested in writing by a 

person that timely submits written 

comments. If a public hearing is 

scheduled, notice of the date, time, and 

place for the hearing will be published 

in the Federal Register. 

Drafting Information 

The principal author of these 

proposed regulations is Karen Levin, 

Office of the Division Counsel/Associate 

Chief Counsel (Tax Exempt and 

Government Entities), IRS. The 

proposed regulations, as well as the 

temporary regulations, have been 

developed in coordination with 

personnel from the U.S. Department of 

Labor and the U.S. Department of 

Health and Human Services. 

List of Subjects in 26 CFR Part 54 

Excise taxes, Health care, Health 

insurance, Pensions, Reporting and 

recordkeeping requirements. 

Proposed Amendments to the 

Regulations 

Accordingly, 26 CFR part 54 is 

proposed to be amended as follows: 

PART 54—PENSION EXCISE TAXES 

■ Paragraph 1. The authority citation 

for part 54 continues to read in part as 

follows: 

Authority: 26 U.S.C. 7805 * * * 

■ Par. 2. Section 54.9815–2713 is 

revised to read as follows: 

§ 54.9815–2713 Coverage of preventive 

health services. 

[The text of proposed § 54.9815–2713 

is the same as the text of § 54.9815– 

2713T(a) through (d) published 

elsewhere in this issue of the Federal 

Register]. 

■ Par. 3. Section 54.9815–2713A is 

revised to read as follows: 

§ 54.9815–2713A Accommodations in 

connection with coverage of preventive 

health services. 

[The text of proposed § 54.9815– 

2713A is the same as the text of 

§ 54.9815–2713AT(a) through (f) 


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Federal Register / Vol. 82, No. 197 / Friday, October 13, 2017 / Proposed Rules 47659 

published elsewhere in this issue of the 

Federal Register]. 

Kirsten Wielobob, 

Deputy Commissioner for Services and 

Enforcement. 

[FR Doc. 2017–21856 Filed 10–6–17; 11:15 am] 

BILLING CODE 4830–01–P 

POSTAL SERVICE 

39 CFR Part 111 

New Mailing Standards for Domestic 

Mailing Services Products 

AGENCY: Postal ServiceTM. 

ACTION: Proposed rule. 

SUMMARY: On October 3, 2017, the Postal 

Service (USPS) filed a notice of mailing 

services price adjustments with the 

Postal Regulatory Commission (PRC). 

The proposed price adjustments are 

scheduled to become effective on 

January 21, 2018. This proposed rule 

contains the revisions to Mailing 

Standards of the United States Postal 

Service, Domestic Mail Manual (DMM®) 

that we would adopt to implement rule 

changes coincident with the price 

adjustments. 

DATES: Submit comments on or before 

November 13, 2017. 

ADDRESSES: Mail or deliver written 

comments to the manager, Product 

Classification, U.S. Postal Service, 475 

L’Enfant Plaza SW., Room 4446, 

Washington, DC 20260–5015. If sending 

comments by email, include the name 

and address of the commenter and send 

to ProductClassification@usps.gov, with 

a subject line of ‘‘January 2018 Domestic 

Mailing Services Proposal.’’ Faxed 

comments are not accepted. You may 

inspect and photocopy all written 

comments, by appointment only, at 

USPS® Headquarters Library, 475 

L’Enfant Plaza SW., 11th Floor North, 

Washington, DC, 20260. These records 

are available for review on Monday 

through Friday, 9 a.m.–4 p.m., by 

calling 202–268–2906. 

FOR FURTHER INFORMATION CONTACT: 

Jacqueline Erwin at (202) 268–2158, or 

Lizbeth Dobbins at (202) 268–3789. 

SUPPLEMENTARY INFORMATION: Proposed 

prices will be available under Docket 

No. R2018–1 on the Postal Regulatory 

Commission’s Web site at www.prc.gov. 

The Postal Service’s proposed rule 

includes: Changes to prices, mail 

classification updates, modifications to 

mail preparation standards, and minor 

revisions to the DMM to condense 

language and/or eliminate redundancy. 

Add Bound Printed Matter Flats Up to 

24 Ounces to Comail DSCF or DDU 

Only 

Currently, the USPS allows 

authorized mailers to combine USPS 

Marketing Mail flats and Periodicals 

flats in a single mailing. Each mailpiece 

must meet the standards for the mail 

class, and Periodicals publications must 

be authorized or pending original or 

additional entry at the office of mailing. 

Mailers must prepare pieces in bundles 

on pallets. 

The USPS proposes allowing Bound 

Printed Matter (BPM) Flats up to 24 

ounces to be included in the current 

comailing structure which includes 

USPS Marketing Mail flats and 

Periodicals flats up to 24 ounces entered 

at a Destination Sectional Center 

Facility, (DSCF) or a Destination 

Delivery Unit, (DDU). The maximum 

weight of comailed BPM and Periodicals 

flats is 24 ounces per piece within the 

same bundle. Pieces within the bundle 

must be in line-of-travel, LOT, 

sequence. These bundles must not 

contain more than half of the heavier 

pieces. Note that comail bundles which 

contain all three classes of mail assume 

the service standard of USPS Marketing 

Mail. If bundles are made only of 

Periodicals and Bound Printed Matter 

Flats, then the service standard adopted 

will be the lesser of the two. This 

proposal includes CoPal, which allows 

the mixing of class-specific, bundles on 

the same pallet, which can also include 

mixed class bundles (comail). If BPM 

bundles are included on the same pallet, 

then this CoPal pallet must be DSCF or 

DDU entry only. 

Order of Pallet Preparation for Carrier 

Route (CR) Pallets in Non-FSS Zones 

Currently, the pallet preparation 

requirements for Carrier Route pallets in 

Non-FSS zones allows merged 5-digit 

scheme pallets as the first required 

sortation, followed by 5-digit scheme 

carrier routes, 5-digit scheme, and 

merged 5-digit pallets. 

The USPS is considering updating the 

order of pallet preparation, to increase 

the number of pure CR Pallets (as 

opposed to 5-Digit Merged Pallets) 

presented in non-FSS zones. This will 

be accomplished by moving 5-digit 

Scheme Carrier Route pallets ahead of 

Merged 5-digit Scheme pallets. This 

includes both USPS Marketing Mail and 

Periodicals. This change would increase 

the amount of mail eligible for a CR 

pallet discount, resulting in eligibility 

for lower prices on the mail. 

Zone Charts Revision: Priority Mail to 

APO/FPO/DPO Processing at Chicago 

ISC 

The Postal Service is proposing a 

change to all zone charts to reflect 

Priority Mail to APO/FPO/DPO 

destinations will only be processed at 

the Chicago ISC. 

List of Subjects in 39 CFR Part 111 

Administrative practice and 

procedure, Postal Service. 

Although we are exempt from the 

notice and comment requirements of the 

Administrative Procedure Act (5 U.S.C. 

553(b), (c)) regarding proposed 

rulemaking by 39 U.S.C. 410(a), we 

invite public comments on the 

following proposed revisions to Mailing 

Standards of the United States Postal 

Service, Domestic Mail Manual (DMM), 

incorporated by reference in the Code of 

Federal Regulations. See 39 CFR 111.1. 

Accordingly, 39 CFR part 111 is 

proposed to be amended as follows: 

PART 111—[AMENDED] 

■ 1. The authority citation for 39 CFR 

part 111 continues to read as follows: 

Authority: 5 U.S.C. 552(a); 13 U.S.C. 301– 

307; 18 U.S.C. 1692–1737; 39 U.S.C. 101, 

401, 403, 404, 414, 416, 3001–3011, 3201– 

3219, 3403–3406, 3621, 3622, 3626, 3632, 

3633, and 5001. 

■ 2. Revise the following sections of 

Mailing Standards of the United States 

Postal Service, Domestic Mail Manual 

(DMM), as follows: 

Mailing Standards of the United States 

Postal Service, Domestic Mail Manual 

(DMM) 

* * * * * 

700 Special Standards 

* * * * * 

705 Advanced Preparation and 

Special Postage Payment Systems 

* * * * * 

10.0 Merging Bundles of Flats Using 

the City State Product 

10.1 Periodicals 

* * * * * 

10.1.5 Pallet Preparation and Labeling 

[Revise the second sentence in the 

introductory text of 10.1.5 to read as 

follows:] 

* * * When sortation under this 

option is performed, mailers must 

prepare all 5-digit scheme carrier routes, 

merged 5-digit scheme, 5-digit carrier 

routes, and merged 5-digit pallets that 

are possible in the mailing based on the 

volume of mail to the destination using 


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