(Revised August 2000) Appendix G

Appendix G -- Penalty Mail Regulations

CHAPTER IX
PENALTY MAIL

TABLE OF CONTENTS

Section A - Introduction
Section B - Authority
	1.	Provisions of the Act of June 30, 1914, and Paragraph 137.242a(1), Domestic Mail Manual
	2.	Provisions of the Act of September 29, 1977, Section 1444, and Paragraph 137.242a(1), Domestic Mail Manual
	3.	Provisions of the Acts of June 30, 1914, and September 29, 1977, and Paragraph 137.242a(2), Domestic Mail Manual
	4.	Definition
Section C - Responsibilities
	1.	The U.S. Postal Service
	2.	The Extension Service, U.S. Department of Agriculture
	3.	State Extension Directors/Administrators
	4.	State and County Extension Employees
	5.	The Penalty Mail Privileges
	6.	Criteria for Authorizing Use of the Penalty Mailing Privilege.
		a.		Extension Employees Holding Cooperative Appointments with the U.S. Department of Agriculture
		b.		Extension Employees Not Holding Cooperative Appointments with the U.S. Department of Agriculture
		c.		Authorization Procedure
Section D - General Regulations
	1.	Local Procedure
	2.	Letterheads
	3.	Subject Matter of Letters, Circulars, and Other Material
	4.	Mail Matter Sent by One Extension Employee to Another
	5.	Format of Envelopes, Labels, Cards, Etc.
	6.	Procurement of Envelopes Under GSA Federal Supply Schedule
	7.	Local Return Address
	8.	ZIP Coding and Presorting of Mail
	9.	Mail Classification
		a.	First-Class Mail
		b.	Priority Mail
		c.	Third-Class Mail
		d.	Fourth-Class Mail
	10.	Permit Imprint Requirements
		a.	Application
		b.	Indicium
		c.	Mailings
	11.	Postage Rates
	12.	Eligibility for Special Rates
	13.	Collection of Fees
	14.	Official Mail Not to be Detained
Section E - Special Regulations
	1.	Advertising
	2.	Buying, Selling, and Soliciting
	3.	Contest, Prizes, and Awards
	4.	Soil Samples
	5.	Commercial, Religious or Political Activities
	6.	Fairs, Livestock, Shows, and Sales
	7.	International Farm Youth Exchange Program
	8.	Organizations and Associations
	9.	Personal Messages
	10.	Prices
	11.	Publications
		a.	Policy - 1862 Institutions
		b.	Policy - 1890 Institutions and Tuskegee
		c.	Use of Credit Lines
		d.	Distribution - Specific
		e.	Distribution - General
		f.	Revision of Extension Mailing Lists
		g.	Distribution of Mailing Lists
		h.	Using Mailing Lists to Mail Material for Other Federal Government Agencies
	12.	Business Reply Mail (BRM) Penalty Envelopes, Cards, Etc
		a.	BRM Mailings Which Require a Permit
			(1) BRM Account
			(2) BRM Payment Upon Delivery
		b.	Prepaid Reply Mail (No Permit Required)
			(1) Postage Meters
			(2) Penalty Stamps
	13.	Sealing Envelopes
	14.	Self-Mailers
	15.	Signatures
	16.	Borders, Markings, Slogans, Etc
	17.	Social Activities
	18.	Special Mail Service
		a.	Certified Mail, Special Delivery, Registered Mail, or Other Special Handling
		b.	Foreign Mail
		c.	Special Services Defined
	19.	Weight and Size Limitations
		a.	Package Mail
		b.	Envelopes, Cards, and Self-Mailers
	20.	Trade and Brand Names
Section F - Recording Violations
	1.	Undeliverable Letter Correspondence and Other Material, Mailed Under the Penalty Mailing Privilege by Extension Employees
		a	Obvious and Unquestionable Violations
		b	Violations About Which a Reasonable Doubt Exists
	2.	Penalty Mail Not to be Detained
	3.	Returned Penalty Mail
Section G - Penalty Mail Postal Meters
	1.	License
	2.	Meter Indicium Format
	3.	Meter Settings and Payment
	4.	Spoiled or Unused Penalty Meter Postage
	5.	Changing Penalty Meter Location
	6.	Replacement Penalty Meters
	7.	Checking Penalty Meters Out-of-Service
	8.	Mailings
Section H - Penalty Mail Stamps
	1.	Availability
	2.	Application
Section I - Methods of Controlling and Reducing Mail Costs
	1.	Ideas for Reducing Mail Volume
	2.	Ideas for Reducing Size or Weight of Mail
	3.	Ideas for Using Mail Classifications
	4.	Ideas for Penalty Mail Training
	5.	Other Suggestions for Controlling and Reducing Mail Costs
Appendix I		Presort Preparation Requirements for First Class Mail
Appendix II		Presort Preparation Requirements for Third-Class Mail
Appendix III		Presort Preparation Requirements for Fourth-Class Mail

CHAPTER IX

Penalty Mail

SECTION A - INTRODUCTION

This chapter is designed to furnish specific guidance and instructions to Cooperative Extension personnel in the proper use of penalty mail and the administration of the overall Penalty Mail Program. These instructions apply to all official mail prepared and mailed by the Cooperative Extension Service under official postal meters, permits, or stamps.

Many common U.S. Postal Service rules and procedures are not addressed. This information is readily available through local post offices. Cooperative Extension personnel are encouraged to work closely with local postmasters. The support of local postal authorities will greatly enhance individual penalty mail programs.

Throughout this chapter, reference is made to the "Cooperative Extension Service." For penalty mail purposes, this means the total Cooperative Extension effort within a State administered in cooperation with 1862 Land-Grant Universities. Reference is also made to the "Cooperative Extension Program." For penalty mail purposes, this means the total Cooperative Extension effort within a State administered in cooperation with 1890 Land-Grant Institutions. In Alabama, this also includes Tuskegee University.

Many of the forms reproduced in this section are available from the U.S. Postal Service web site at http://www.usps.gov/business/formspdf.htm

SECTION B - AUTHORITY

This section documents the authority by which 1862 and 1890 Land-Grant Colleges and Universities plus Tuskegee University can use the penalty mail privilege. It should be remembered that the U.S. Postal Service, in support of two different laws, has established one specific authority, in the Domestic Mail Manual, which applies to each university specifically designated by the U.S. Department of Agriculture.

Authority for the use of the penalty mailing privilege by State Cooperative Extension Service Directors and Cooperative Extension employees at 1862 Universities is provided by the Act of June 30, 1914 (Smith-Lever), and the Domestic Mail Manual.

Authority for the use of the penalty mailing privilege by the State Cooperative Extension Program Administrators and Cooperative Extension employees at 1890 Universities and Tuskegee is provided by the Act of September 29, 1977, and the Domestic Mail Manual.

1. Provisions of the Act of June 30, 1914, and Paragraph 137.242a(1), Domestic Mail Manual (Authority--Directors, Cooperative Extension Service). All correspondence, bulletins, and reports for the furtherance of the purposes of the Act approved May 8, 1914, entitled "An act to provide for cooperative agriculture extension work between the agricultural colleges in the several States receiving the benefits of an Act of Congress approved July 2, 1862, and the acts supplementary thereto, and the United States Department of Agriculture," may be transmitted in the mail without prepayment of postage, under such regulations as the Postmaster General, from time to time, may prescribe, by such college officer or other person connected with the Extension department of such college as the Secretary of Agriculture may designate to the Postmaster General.

2. Provisions of the Act of September 29, 1977, Section 1444, and Paragraph 137.242a(1), Domestic Mail Manual (Authority--Administrators, Cooperative Extension Program). All correspondence, bulletins, and reports for the furtherance of the purposes of Section 1444 of the Act approved September 29, 1977, may be transmitted in the mail without prepayment of postage, under such regulations as the Postmaster General, from time to time, may prescribe, by such college officer or other person connected with the Extension department of such college as the Secretary of Agriculture may designate to the Postmaster General.

3. Provisions of the Acts of June 30, 1914, and September 29, 1977, and Paragraph 137.242a(2), Domestic Mail Manual (Authority--1862 and 1890 Cooperative Extension employees). The law embodied in these Acts and the authority in the Domestic Mail Manual authorize Cooperative Extension employees the use of the penalty mailing privilege solely for the purpose of mailing official correspondence and material relating exclusively to the business of the Government of the United States. This includes matters directly connected with Extension enterprises outlined in project agreements and plans of work which are covered by a memorandum of understanding with the Extension Service, U.S. Department of Agriculture, and the Land-Grant Colleges and Universities.

4. Definition, (Domestic Mail Manual, Sec. 137.21). Extension penalty mailing privilege is a special mailing privilege worked out between the U.S. Department of Agriculture and the U.S. Postal Service which pertains only to Cooperative Extension. Specific restrictions and allowances have been agreed upon which do not apply to "straight-line" Federal agencies. This handbook details those specific regulations, which may be amended or revised only by the Extension Service, U.S. Department of Agriculture, with written approval from the U.S. Postal Service.

SECTION C - RESPONSIBILITIES

1. The U.S. Postal Service has overall responsibility for administering the provisions of the acts of Congress providing for the penalty mailing privilege by State Extension Directors/Administrators and State and County Extension employees at Land-Grant Universities. The Postmaster General may prescribe, from time to time, such regulations as deemed necessary in order to assure compliance with provisions of the acts of Congress and subsequent amendments. Penalty mail is not free. The U.S. Postal Service is reimbursed annually for the cost of the Extension penalty mail by the U.S. Department of Agriculture.

THE AMOUNT OF REIMBURSEMENT IS DETERMINED BY DIRECT ACCOUNTABILITY THROUGH THE OFFICIAL MAIL AND ACCOUNTING SYSTEM (OMAS) WHICH IS PROVIDED QUARTERLY BY THE U.S. POSTAL SERVICE. IT IS IMPORTANT THAT THESE CHARGES ARE VERIFIED FOR ACCURACY WITHIN THE PRESCRIBED PERIOD OF TIME, IE., 30 DAYS AFTER RECEIPT OF QUARTERLY PENALTY MAIL REPORTS. DISCREPANCIES SHOULD BE BROUGHT TO THE ATTENTION OF THE LOCAL POST OFFICE WHERE THE TRANSACTION OCCURRED AND THE STATE PENALTY MAIL OFFICER.

2. The Extension Service, U.S. Department of Agriculture, is responsible to the U.S. Postal Service for the proper usage of the penalty mailing privilege granted State Extension Directors/Administrators and their employees. The Extension Service, U.S. Department of Agriculture, in liaison with the U.S. Postal Service will give interpretations pertaining to special cases encountered by the States.

3. State Extension Directors/Administrators have the responsibility for the administration of postal laws and regulations pertaining to the use of the penalty mailing privilege by Extension employees under their supervision with the assistance of the Extension Service, U.S. Department of Agriculture. Each State Director/Administrator should designate someone on their respective Extension staff to serve as Penalty Mail Officer for the purpose of administering the overall Penalty Mail Program within the university. The name of the designated employee, and any change in designation, should be brought to the attention of the Penalty Mail Officer, Extension Service, U.S. Department of Agriculture.

4. State and County Extension employees authorized to use the penalty mailing privilege are personally responsible for each piece of material carrying his or her name and title as to its eligibility for mailing under the penalty mailing privilege.

5. The Penalty Mail Privileges. Two types of the penalty mail privilege apply in Cooperative Extension--one is used solely by (1) State Extension Directors/Administrators, and the other is used (2) by Extension employees. The two types are quite similar, but the major differences are that:

• Penalty envelopes, etc., used by the State Extension Director/Administrators must be deposited at only one post office which is designated at the time the U.S. Postal Service is notified of their appointment.
• All correspondence mailed in the Directors'/Administrators' penalty envelopes must be over their signature. No other Cooperative Extension staff person is permitted to use these envelopes.

The Director/Administrator penalty mailing privilege is provided for in Paragraph 137.242a(1), Domestic Mail Manual.

The Cooperative Extension employee's penalty mailing privilege is granted to Cooperative Extension employees under the provisions of Paragraph 137.242a(2), Domestic Mail Manual, when authorized by the State Director/Administrator.

There are no designated post offices for depositing mailings under the penalty mailing privilege. PLEASE NOTE, PERMIT IMPRINT AND METERED MAIL MAY BE RESTRICTED TO THE POST OFFICE AUTHORIZING THE PERMIT OR METER LICENSE. Otherwise, Cooperative Extension employees authorized to use the penalty mailing privilege are expected to deposit mailings at local post offices convenient to their official headquarters.

6. Criteria for Authorizing Use of the Penalty Mailing Privilege.

a. Extension employees holding cooperative appointments with the U.S. Department of Agriculture. These employees may be authorized by the Director/Administrator to use the penalty mailing privilege in mailing all correspondence, bulletins, and reports relating to Extension work carried on in cooperation with the U.S. Department of Agriculture, as set forth in Paragraph 3, Section B - Authority. A Federal appointment requires that an employee devote at least 50 percent of employment time to approved Cooperative Extension work.

b. Extension employees not holding cooperative appointments with the U.S. Department of Agriculture. These employees may be authorized to use the penalty mailing privilege, on a case-by-case basis, at the direction of the Director/Administrator when assigned to a project or function that requires the use of official mail.

SINCE THE CES DOES NOT HAVE ADMINISTRATIVE CONTROL OVER CONSULTANTS AND/OR RETIRED EMPLOYEES WHO HAVE VOLUNTEERED THEIR SERVICES, THEY SHOULD NOT BE AUTHORIZED TO USE THE PENALTY MAILING PRIVILEGE.

c. Authorization Procedure. If an Extension employee meets the criteria, in the above, the Director, Cooperative Extension Service, or the Administrator, Cooperative Extension Program is authorized to extend the use of the penalty mailing privilege to the employee. Each Extension employee authorized to use penalty mailing privilege must be notified in writing of such authority. A file of such approvals will be maintained by the State Penalty Mail Officer for information and audit purposes. Such notification shall include name, title, social security number, official address of employee, and name of approved project, if appropriate, to which assigned. Upon termination of employment and/or project, the employee must be notified in writing of the cancellation of the authorization to use the penalty mailing privilege. (See Figure 1.)

Figure 1. Sample Authority to Use Penalty Mail Privilege

SECTION D - GENERAL REGULATIONS

1. Local Procedure. These regulations are intended to supplement current postal regulations. However, local interpretation of these or postal regulations could result in seeming conflicts between the two. Disagreements with local postal authorities should be referred by the State Penalty Mail Officer to the ES-USDA Penalty Mail Officer, for direct discussion with national postal officials.

2. Letterheads. A uniform letterhead should be used in both State and County offices for all types of correspondence including newsletters. In designing letterheads, the important factor to recognize is that the penalty mailing privilege is granted to the Cooperative Extension Service and the Cooperative Extension Program because they are entities of the U.S. Department of Agriculture and not the university or State. While the style of form used is an administrative decision for the Director/Administrator, it is required that the wording clearly show that it is a Cooperative Extension letterhead. For 1862 Institutions, the wording "Cooperative Extension," "Cooperative Extension Service" or "Agricultural Extension Service" must be dominant and should be placed at the top, followed by other desired wording. For 1890 Institutions and Tuskegee University, the wording "Cooperative Extension Program" or "Agricultural Extension Program" must be dominant and should be placed at the top, followed by other desired wording. The required statement indicating cooperation of the U.S. Department of Agriculture with the State Land-grant college in conducting Extension work may be placed at the top or bottom of the page. (See Figure 2 as an example of an acceptable penalty mail letterhead.)

It is suggested that proposed changes to State letterhead formats be submitted to the Penalty Mail Officer, Extension Service, U.S. Department of Agriculture, for approval and comments prior to final adoption and printing.

3. Subject matter of letters, circulars, and other material prepared for mailing under the penalty mailing privilege must relate to activities in furtherance of Extension work. The wording alone does not determine the mailability. The purpose in sending the material, the circumstances, and conditions under which it is being sent are also determining factors. Doubtful material should be submitted to the office of the Extension Director or Administrator for review before mailing. Great care should be exercised to make certain that information is presented on both sides of controversial issues. Improper treatment of such issues can negatively impact the credibility of Cooperative Extension within the community.

4. Mail Matter Sent by One Extension Employee to Another. Any correspondence or other mail matter may be sent under the penalty mailing privilege by an authorized Extension employee to another Extension employee for official use in furtherance of approved Extension programs. This policy includes mail sent by Extension employees to authorized Extension 4-H leaders and leaders of other groups organized and directly supervised by Extension agents. It does not include individual members OF THE PUBLIC WHO BELONG TO such groups. This program allows types of material to be sent in-house that cannot be mailed to the public.

Figure 2. Examples of acceptable penalty mail letterheads.

 5. Format of Envelopes, Labels, Cards, Etc. Format must be in accordance with U.S. Postal Service standards. The Facing Identification Mark is not required on bulk third-class and metered mail.

(Refer to Figures 3, 4, 5 and 6 for proper format.)

IN ADDITION, FIGURE 6 SHOWS THE ONLY AREA OF AN ENVELOPE WHERE APPROVED ENDORSEMENTS CAN BE PRINTED. PLACEMENT IN THIS LOCATION WILL NOT INTERFERE WITH THE U.S. POSTAL SERVICE'S AUTOMATED SCANNING EQUIPMENT.

6. Procurement of Envelopes Under GSA Federal Supply Schedule. This schedule may be used for directly ordering printed and plain envelopes for the official use of Extension employees and State Extension Directors/Administrators. Assistance in placing orders under the Federal Supply Schedule contracts can be obtained by contacting the Extension Service Penalty Mail Officer.

7. Local Return Address. The only authorized return address for first-class penalty envelopes is the 1862 Institution or the 1890 Institution State office address. However, the local county office return address may be used for third-class mailings with the approval of the State Extension Director/Administrator. The words "U.S. Department of Agriculture, Cooperative Extension Service/Program" must appear on all return addresses.

8. Zip Coding and Presorting of Mail. Postal regulations require the mandatory use of Zip Code numbers on official mail. The Zip Code System enables the Postal Service to achieve greater accuracy, speed, and economy in the processing and delivery of mail. The Zip Code should appear on the last line of both the address of destination and the return address following the city and State. All mailers are encouraged to use the Zip+4 code whenever possible.

a. Presorting by Zip Code: Bulk rate mailings of first-, third-, and fourth-class mail must be presorted by the mailer to specific Zip Code and other destinations. Local postmasters will provide guidance and help mailers make arrangements for coding mailing lists by Zip Code and for packing and sacking bulk mailings by Zip Code.

Presort Preparation Requirements:

First-class - refer to Appendix I (DMM Sec. 360)

Third-class - refer to Appendix III (DMM Sec. 660 and 667)

Fourth-class - refer to Appendix IV (DMM Sec. 760-767)

Figure 3. Director's Envelope, 1862 Institutions - Penalty Meter Format

Figure 4. Extension Employee's Envelope, 1862 Institutions - Penalty Meter Format

Figure 5. Administrator's Envelope, 1890 Institutions and Tuskegee University Penalty Meter Format

Figure 6. Extension Employee's Envelope, 1890 Institutions and Tuskegee University Penalty Meter Format

 

9. Mail Classification. The proper use of mail classification guidelines is extremely important in controlling the cost of penalty mail. Most Extension mailings will fall into the following general classifications:

a. First-class mail includes letters, memorandums, and other written matter (handwritten or typed) having an individual signature, completed forms and questionnaires, and similar mail matter transmitted by envelope or post card WEIGHING UP TO 11 OUNCES.

b. PRIORITY MAIL INCLUDES THE SAME TYPE OF MAIL MATTER AS FIRST-CLASS BUT WEIGHING MORE THAN 11 OUNCES. ANY OTHER MAIL MATTER (INCLUDING REGULAR FIRST-CLASS WEIGHING 11 OUNCES OR LESS MAY ALSO BE ENDORSED AS PRIORITY MAIL. HOWEVER, CAUTION SHOULD BE TAKEN AGAINST USING "PRIORITY" MARKING ON LETTER MAIL (UNDER 11 OUNCES) BECAUSE OF THE HIGH "PRIORITY" POSTAGE REQUIRED FOR THE LESSER WEIGHT.

THE U.S. POSTAL SERVICE PROVIDES SPECIAL ENVELOPES TO EASILY IDENTIFY PRIORITY MAILINGS. THESE CONTAINERS ARE FREE OF CHARGE AND ARE AVAILABLE THROUGH YOUR LOCAL POST OFFICE.

THE U.S. POSTAL SERVICE STANDARD FOR DELIVERY OF FIRST-CLASS/PRIORITY MAIL AVERAGES 3-4 DAYS FROM COAST TO COAST.

c. Third-class mail includes bulletins, circulars, circular letters, newsletters, blank forms and questionnaires, books, miscellaneous items up to but not including 16 ounces.

SINGLE PIECE THIRD-CLASS MAIL MUST BE ENDORSED "THIRD-CLASS." MAIL MATTER LACKING THE ENDORSEMENT WILL BE TREATED AS "FIRST-CLASS" MAIL AND WILL BE CHARGED THE ADDITIONAL POSTAGE.

Third-class bulk is the most economical method of sending out larger quantities of third-class mail. Rates are applicable when 200 or more pieces or 50 or more pounds of identical third-class are sent out in one day from the same location. (Different mailings may be combined to take advantage of bulk rates, as long as all the mailing pieces involved are the same size and weight.) Local postal officials should be consulted for bulk mail preparation instructions. Bulk rate mailings must be prepared using either penalty postage meters or penalty permit imprint.

d. Fourth-class mail includes the same type of mail matter as third-class, but weighing 16 ounces or more per piece.

THE USPS HAS NO SERVICE STANDARD FOR DELIVERY OF THIRD/FOURTH CLASS MAIL.

The least expensive mail classification should be used in dispatching all eligible day-to-day penalty mail. However, under unusual circumstances, such as emergency conditions or where deadline dates are involved, first-class transmittal can be justified.

10. PERMIT IMPRINT REQUIREMENTS

a. Application

Each county must apply to use permit imprint procedures by completing two copies of PS Form 3601, "Application to Mail Without Affixing Stamps."

SUBMIT BOTH COPIES TO THE POST OFFICE WHERE THE MAILING WILL BE DEPOSITED.

Local application for Permit Imprint must be authorized by the State Extension Director/Administrator (or State Penalty Mail Officer) in advance.

NOTE: Remember to include the Cooperative Extension Service Permit Number "G-268" in the Permit Number section of the application form (Figure 7).

b. Indicium

The permit imprint indicium must appear in a rectangular box in the upper right corner of the mail piece (Figure 8). The indicium must include the words "Postage and Fees Paid," the agency (USDA) name, and the agency's assigned permit number (G-268). The class of mail or appropriate rate endorsement must appear either as the first item within the permit imprint (the preferred position) or immediately below or to the left of the permit imprint. The FIM must not be used on penalty permit imprint mail.

c. Mailings

1. Bulk mailings prepared with Permit Imprint must be presented with Postal Service Form 3602, "Statement of Mailing with Permit Imprint." (Figure 9)

2. Bulk mailings prepared with postage meters must be presented with Postal Service Form 3602 PC (Figure 10). Enter the words "Penalty Meter" or the meter License Number in the permit number section of the form. (Do not include the permit imprint number.) This will help avoid the possibility of double billing.

11. Postage Rates. Metered rates for any mailing piece or classification can be obtained from the local postmaster. Equivalent charges are reflected in the penalty mail payment to the U.S. Postal Service.

12. ELIGIBILITY FOR SPECIAL RATES. THE CES IS NOT ELIGIBLE FOR NONPROFIT OR SUBSIDIZED RATES. THIS IS STATED IN THE FOLLOWING PARAGRAPH FROM THE USPS DOMESTIC MAIL MANUAL.

SPECIAL RATES (DOMESTIC MAIL MANUAL, SEC. 137.26) THE SAME SERVICES AND RATES ARE AVAILABLE AS FOR OTHER MAILERS BUT FEDERAL AGENCIES ARE NOT ENTITLED TO SEND PENALTY MAIL AT NONPROFIT OR SUBSIDIZED RATES.

13. COLLECTION OF FEES (PENALTY MAIL HANDBOOK DM103, SECTION 244)

WHEN AN AGENCY OR CONTRACTOR SUBMITS THE FIRST PRESORT AND BULK MAILING IN A CALENDAR YEAR, A PS FORM 3636-G, "FEE ASSESSMENT FOR OFFICIAL MAIL" MUST BE COMPLETED AT THE POST OFFICE (FIGURE 11).

POSTMASTERS WILL NOT COLLECT MONEY FOR PENALTY MAIL FEES. ALL CHARGES WILL BE BILLED TO THE CES ON DATA SUBMITTED FOR INPUT TO OMAS BY THE POSTMASTER.

14. OFFICIAL MAIL NOT TO BE DETAINED (PARAGRAPH 137.41 OF THE DOMESTIC MAIL MANUAL)

EVEN THOUGH THERE MAY BE INDICATIONS OF ABUSE OF THE PENALTY MAIL PRIVILEGE, PENALTY MAIL WILL NOT BE DETAINED AT THE POST OFFICE. INSTEAD, IT WILL BE PROMPTLY DISPATCHED AND DELIVERED TO THE ADDRESSEE. THE POSTAL SERVICE WILL REPORT INSTANCES OF ABUSE TO THE CES FOR THEIR INVESTIGATION AND APPROPRIATE ACTION.

Figure 7. PS FORM 3601

Figure 8. ILLUSTRATION OF PERMIT IMPRINT

 

Figure 9. FORM 3602-R (Side 1)

  

Form 3602 (Side 2)

Figure 10. FORM 3602-PC

Figure 11. Figure Assessment for Official Mail

SECTION E - SPECIAL REGULATIONS

The following specific regulations are applicable to material prepared for mailing to the general public under the penalty mailing privilege.

1. Advertising. Material that could be interpreted as advertising may not be mailed under the penalty mailing privilege. This includes material put out by any concern, organization, college, or agency other than agencies of the Federal Government.

2. Buying, Selling, and Soliciting. Material relating to buying or selling any article or product, except when replying to a single specific request for the name and address of a dealer in a certain commodity, may not be mailed under the penalty mailing privilege. When replying to such a single specific request, list all local dealers if possible, but do not mention the price of the commodity. Material designed to solicit funds should be mailed under prepayment of postage.

Examples of material not eligible for mailing under the penalty mailing privilege:

a. General lists of dealers or others having products for sale.

b. Matters stating that commodities (excludes Extension educational materials) may be purchased through County Extension Offices.

c. Matters relating to exchange lists of farm machinery or other commodities for sale or trade.

d. Letters of inquiry to persons or concerns having livestock for sale. This rule also applies to the purchase of livestock for 4-H Club members.

e. Letters to companies, organizations, individuals, etc., soliciting funds.

3. Contests, Prizes, and Awards. Official material, including lists of prizes or awards pertaining to 4-H Club contests or other contests which are considered part of an approved Extension project, may be mailed under the penalty mailing privilege if it does not contain:

a. Names of persons or firms sponsoring the contest. (Appreciation statements are permissible.)

b. Names of donors with specific donations shown. (Donors may be listed in alphabetical order along with general appreciation statement.)

4. Soil Samples. If there is no charge for soil sampling and related services then penalty mail may be used. If a State elected to charge for soil sampling, the price of soil sampling and related services should include the cost of postage and other related processing costs. Therefore, penalty mail may not be used when there is a charge for soil sampling.

5. Commercial, Religious or Political Activities. Penalty mail may not be used to distribute any type of commercial, religious or political announcements or advertisements.

6. Fairs, Livestock Shows, and Sales. Information on how to prepare or display exhibits at fairs, livestock shows, and sales may be mailed under the penalty mailing privilege to persons enrolled in Extension projects. This would not include announcements or other material that could be interpreted as business of or advertisements for fairs, livestock shows, and sales.

7. International Farm Youth Exchange Program. This program is conducted nationwide by the National 4-H Council under the leadership and supervision of a board consisting of staff members of the Extension Service, U.S. Department of Agriculture, and the State Extension Services.

Material relating to the educational phase of this program carried on as, or in connection with, an approved Extension project may be mailed under the penalty mailing privilege. This would not include letters or other material referring to activities and/or methods of raising or soliciting funds for the support of the program.

8. Organizations and Associations. The penalty privilege may not be used in mailing any material sent in behalf of, or considered business affairs of, established organizations or associations, such as soliciting, collecting dues, calling meetings, or otherwise promoting the interests of established organizations. This includes State departments of agriculture, State agricultural colleges or universities, breeders' associations, farm bureaus, home bureaus, soil conservation district associations, Dairy Herd Improvement Associations, and other such groups. The above regulation does not apply to 4-H Clubs or other groups organized and directly supervised by Extension agents in accordance with approved project agreements and plans of work.

In order to assist groups in organizing an association, club, etc., correspondence of an informational character, including announcements of meetings to discuss the organization, may be mailed under the penalty mailing privilege. However, as soon as the association begins to function (officers elected, etc.), all correspondence and material relating thereto must be mailed under COMMERCIAL postage by association officers.

9. Personal Messages. Christmas greetings or similar personal messages may not be mailed under the penalty privilege. Similarly, Extension employees, upon resignation or transfer from one location to another within the Extension organization, may not transmit letters containing a farewell message in penalty envelopes unless these messages are incidental to official information in the letter/newsletter.

10. Prices. Material containing prices of services or commodities may be mailed under the penalty privilege when furnishing such information is considered necessary. This includes:

a. Costs of attendance at 4-H camps or other Extension-sponsored nonprofit activities.

b. Costs of soil sampling and related services.

c. Marketing information when the names of individual dealers or manufacturers are not included.

d. Prices of meals held in connection with approved Extension meetings.

e. Price lists of Extension bulletins. Does not include privately purchased commodities available for resale.

11. Publications - Eligibility for distribution via Penalty Mail:

Publications offered for sale are not eligible for mailing under the penalty mail privilege to the general public. If a State elects to charge for publications, the price of the publication would include the costs of printing, postage and handling. Publications for which there is a charge must be mailed under commercial postage.

a. Policy - 1862 Institutions. The contents of publications (leaflets, bulletins, circulars), printed with Cooperative Extension funds, must be confined exclusively to those containing "useful and practical information" on subjects relating to agriculture, home economics and human nutrition, natural resources and rural development and 4-H youth development, prepared in a form suitable for use in Extension work and certified by the Director, Cooperative Extension Service, as in furtherance of the purpose of the Smith-Lever Act. The following certification statement is recommended:

"Issued in furtherance of Cooperative Extension work, Acts of May 8 and June 30, 1914, in cooperation with the U.S. Department of Agriculture. (Name of Director), Cooperative Extension Service, (Name of State College or University)."

b. Policy - 1890 Institutions and Tuskegee. The contents of publications (leaflets, bulletins, circulars), printed with Cooperative Extension funds authorized by Section 1444 of the Act of September 29, 1977, on Extension work, must be confined exclusively to those containing "useful and practical information" on subjects relating to agriculture and home economics, prepared in a form suitable for use in Extension work and certified by the Administrator, Cooperative Extension Program, as in furtherance of the purpose of Section 1444 of the Food and Agriculture Act of 1977. The following certification statement is recommended.

"Issued in furtherance of Extension work, Act of September 29, 1977, in cooperation with the U.S. Department of Agriculture. (Name of Administrator), Cooperative Extension Program, (Name of 1890 College or University)."

It is only desirable that there be uniformity in the manner of displaying the above certification statement on publications so that they may be readily identified as Extension publications and, therefore, acceptable for mailing under the penalty mailing privilege. The preferred position is on the front cover page. If for some good reason, the placing of the statement on the inside front cover is not practicable, then the following positions, listed in order of preference, will be acceptable.

(1) Inside front cover.

(2) Outside back cover.

(3) Inside back cover.

c. The use of credit lines in publications prepared for distribution under the penalty mailing privilege is permissible. This includes credit given to: (1) persons who prepare material for Cooperative Extension publications, (2) nongovernmental sources that loan or donate prepared material used in these publications, (3) govern- mental sources that provide useful material and (4) sources donating money, services, etc., for Extension materials (including publications and newsletters). Example: A company, association, individual, etc., donates money to cover the cost of a 4-H publication.

NOTE:The use of credit lines, as outlined in paragraph c, are permissible but not a requirement. Directors'/Administrators' publication policy should determine the requirement. If credit lines are used, the following guidance applies.

(1) Extension publications may contain individual credit lines for authors and editors. Credit may also be given to photographers, illustrators, etc., who make a significant contribution to a publication.

(2) Materials from nongovernmental sources donated or loaned (not purchased). Credit lines are permissible for copyrighted and uncopyrighted illustrations, charts, photographs, etc. Credit lines are also permissible for material provided by governmental sources.

(3) Credit lines should be set in type smaller than the text and may be positioned as follows:

Name of authors and editors may be placed on the title page or listed with other credits.

Name of photographers, illustrators, etc., may be placed inside front or back cover or the back cover if all photographs or illustrations, etc., come from the same person. However, if several photographers or illustrators are involved, credit lines may appear on the page with the individual contribution or in the above positions, but not both. Credit for donated or loaned material from other sources may also be placed inside the front or back cover.

The foregoing would also apply to the use of courtesy credit statements for text quoted from copyrighted and uncopyrighted publications.

Example of approved credit for loan of material: "Grateful appreciation is expressed to the National Association of Automotive Engineers for the use of illustrative materials in this publication."

d. Distribution - Specific. Copies of publications, etc., issued by any Extension Service as well as those issued by State Land-grant colleges (not to include administrative publications), or agencies of the Federal Government may be mailed under the penalty mailing privilege in reply to a specific request, or to persons with whom an agent is conducting some special work or demonstration, when accompanied by a letter of transmittal.

Publications purchased with federal funds from nongovernmental agencies are not considered as having been printed at Government expense and may not be mailed under the penalty mailing privilege.

e. Distribution - General. The general distribution of publication, etc., under the penalty mailing privilege is limited to Extension publications or those issued by the U.S. Department of Agriculture for which a previous request has been received. No previous request for U.S. Department of Agriculture publications is necessary if they are sent as enclosures with letter correspondence relating to the subject matter of the publications.

Any written or recorded oral request to be put on a mailing list to receive a series of or specified publications, or information on a specified subject or subjects, is regarded as a previous request for publications. Publications, circulars, and leaflets,mailed under the Federal penalty mailing privilege, must be accompanied by an appropriate letter of transmittal.

f. Revision of Extension Mailing lists: All mailing lists must be revised prior to June 30 each year.

(1) Postal regulations authorize postmasters to correct mailing lists for Federal agencies at the expense of the owners of the lists. State and County Extension offices may utilize this service, but they will have to pay the local postmaster since the service is not covered by the annual penalty mail payment. Payment must be made in advance by cash or money order.

Lists should be submitted to the post office which serves the addressee. Names and addresses must be typewritten or printed on cards approximately the size and quality of post cards, with only one name and address to a card. The owner of the list must place his/her name in the upper left corner of each card.

Special subject matter lists must be kept current. To make certain that persons on mailing lists wish their requests for material to remain effective, they must be notified at least once each year that unless a request is received for their names to be kept on the mailing list, their names will be dropped and educational materials will not be sent to them in the future. Business reply mail penalty envelopes may not be used for this purpose.

g. Distribution of Mailing Lists. Mailing lists comprise a system of records established to assist in carrying out the various programs of Cooperative Extension. These mailing lists are for the sole use of Extension personnel and shall not be furnished directly or indirectly to any other person, firm, association, or Federal Government agency. The release of these lists could adversely affect the credibility of Cooperative Extension within the community. Mailing lists are not Federal records and, therefore, not covered by the Federal Freedom of Information of Privacy Acts that pertain to Federal records. This longstanding policy of the U.S. Department of Agriculture is based in part on 18 U.S.C. 1902, 7 U.S.C. 472, 7 U.S.C. 1373(c), and Title 7 C.F.R., Part 0, Subtitle A, Subpart B, which provides:

"Lists of names of farmers, business people, or employees that may be available in the Department shall not be released to anyone unless it is determined that such release is required by the Freedom of Information Act. Lists of manufacturers, dealers, breeders, etc., shall not be furnished so as to imply that the Department endorses certain firms to the possible detriment of others, or that the lists necessarily include all dealers of a certain line."

h. Using Mailing Lists to Mail Material for Other Federal Government Agencies. Discretion should be exercised in determining whether to mail for another Federal Government agency using Cooperative Extension mailing lists. Factors to be considered are propriety and nature of material, responsibility for total costs of the mailing, including how the agency will provide the postage, etc. The foregoing in no way implies furnishing lists to other agencies for their use.

12. Business Reply Mail (BRM) Penalty Envelopes, Cards, Etc. Extension employees who are authorized to use the penalty mailing privilege may furnish self-addressed business reply mail (BRM) penalty envelopes, cards, etc., to persons or concerns for convenience in submitting information desired by an agent for official use, provided that it is not in the interest of the person or concern supplying the information, and the usage of BRM has been authorized by the State Director/Administrator.

a. BRM MAILINGS (PERMIT REQUIRED)

THERE ARE TWO TYPES OR WAYS TO PAY FOR A BRM MAILING WHICH REQUIRE A PERMIT:

(1) BRM ACCOUNT - THIS METHOD ENABLES YOU TO HAVE MAIL RETURNED FROM INDIVIDUALS BY PAYING THE POSTAGE AND FEES ONLY ON THE MAIL THAT IS RETURNED. THE FIRST-CLASS POSTAGE PLUS A HANDLING FEE OR SURCHARGE PER PIECE IS CHARGED THROUGH THE OFFICIAL MAILING AND ACCOUNTING SYSTEM.

(2) BRM PAYMENT UPON DELIVERY - THIS METHOD ALSO ENABLES YOU TO HAVE MAIL RETURNED FROM INDIVIDUALS BY PAYING THE POSTAGE AND FEES ONLY ON THE MAIL THAT IS SENT BACK. HOWEVER, THE FIRST CLASS POSTAGE AND SURCHARGE WILL BE PAID VIA CASH, PENALTY METERED STRIP OR PENALTY STAMPS AT THE TIME THE RETURNED PIECES ARE DELIVERED.

An illustration of the required BRM format is shown on Figure 11. The legend "Business Reply Mail" must be used on envelopes and cards. Cards must be rectangular in shape, not less than 3 1/2" x 5", or greater than 4 1/4" x 6" and of a uniform thickness not less than 0.007".

Minimum size of label with the legend "Business Reply Label" is 2" x 3". It is not necessary to print FIM on BR labels: however, all other BRM format requirements must be met on the label.

b. PRE-PAID REPLY MAIL (NO PERMIT REQUIRED) - THE SECOND METHOD OF REPLY POSTAGE ALLOWS YOU TO PREPAY FIRST-CLASS POSTAGE FOR MATERIAL WEIGHING UP TO ELEVEN OUNCES WITH A POSTAGE METER OR POSTAGE STAMPS AND DOES NOT REQUIRE THE HANDLING FEE OR SURCHARGE ON EACH PIECE. SINCE "LIVE" POSTAGE IS PREMETERED/STAMPED ON ALL PIECES, IT IS RECOMMENDED THAT PREPAID REPLY MAIL BE USED ONLY WHEN A HIGH REPLY RATE IS EXPECTED.

THERE ARE TWO TYPES OR WAYS TO PAY FOR PREPAID REPLY MAIL (DIRECT PAYMENT, NO PERMIT REQUIRED):

(1) POSTAGE METERS - POSTAGE IS PREMETERED ON ALL OUTGOING PIECES. THE PHRASE "NO POSTAGE STAMP NECESSARY POSTAGE HAS BEEN PREPAID" MUST BE PREPRINTED ABOVE THE ADDRESS. THE DATE MUST NOT BE SHOWN ON THE METER POSTMARK.

(SEE FIGURE 11a AS AN EXAMPLE).

(2) PENALTY MAIL STAMPS - POSTAGE IS PREPAID ON ALL OUTGOING PIECES. NO SPECIAL FORMAT IS REQUIRED BUT THE OFFICIAL RETURN ADDRESS MUST BE USED.

• Instances when penalty/official reply envelopes or cards may be used are:

  a. Enrollment cards for 4-H, home economics or other approved Extension projects.

  b. Determining possible public interest in proposed Extension Projects.

  c. Requesting information for evaluation purposes from persons who have participated in Extension projects.

  d. Return of tapes, records, etc., from broadcasting stations.

• Instances when penalty/official reply envelopes or cards may not be used are:

  a. Requesting names to be placed or retained on mailing lists.

  b. Making reservations for dinner or luncheons not held in connection with official Extension meetings or conferences.

  c. Making hotel reservations.

  d. Returning soil test analyses by laboratories when charges are made for the analyses.

  e. Using for any purpose not involving official extension business.

13. Sealing Envelopes. All penalty mail, regardless of size or classification, should be sealed before it is presented to the post office. However, it is understood that all third-class mail may be opened for postal inspection by authorized postal officials if necessary.

Figure 11. ILLUSTRATION OF BUSINESS REPLY MAIL

Figure 11a. ILLUSTRATION OF METERED BUSINESS REPLY MAIL

14. Self-Mailers. The use of self-mailers (material mailed without envelopes) by Extension employees is an administrative matter to be determined by the State Extension Director/Administrator. In preparing self-mailers, the following criteria should be adhered to:

a. Use the same Cooperative Extension letterhead as is used for regular correspondence.

b. Fold the self-mailer to letter size, if possible, and fasten by at least one fastener on the long, open edge. A gummed fastener is preferred by the U.S. Postal Service, but staples may be used if the staples lie flat and do not stick up to scratch or catch.

c. Self-mailers that cannot be folded to letter size without damage, such as multipage newsletters and publications, need not be sealed on more than one edge (the "spine" or binding edge).

d. Use the same State return address as is used on penalty envelopes.

e. Messages, including name and title of agency, should not appear on the face of the mailing piece.

15. Signatures. Letter correspondence, including letters of transmittal or transmittal slips, must carry the signature, name, and official Extension title of the sender when mailed in penalty envelopes. ACADEMIC TITLES ARE PROHIBITED BUT DEGREE AND CERTIFICATION ACRONYMS WITH THE NAME AND OFFICIAL TITLE ARE ACCEPTABLE. Secretaries may be authorized by an agent to sign the agent's name to correspondence. Such signatures should not be initialed by the secretary.

a. When space is limited on post cards or self-mailers, the agent's signature or typed name may be omitted. When space is not a factor, the signature, typed name, and official Extension title must be used. Rubber stamps may be used for this purpose, if desired.

b. Joint signatures are authorized only when all persons signing are authorized to use the Extension penalty mailing privilege, or have a federal appointment. OTHERWISE, A CREDIT LINE SHOULD BE USED TO PROVIDE RECOGNITION.

c. Signatures of persons not authorized to use the penalty mailing privilege should not appear on material prepared for mailing under the penalty mailing privilege. A CREDIT LINE SHOULD BE USED TO PROVIDE RECOGNITION.

d. When an employee is known by a first name or other than the full name, such as "Jim," "Jane" or "J.C. Brown," he/she may sign his name in this manner with his/her official title. State policy should be established.

16. Borders, Markings, Slogans, Etc. Except for USPS-required items, no other printed, stamped, or affixed marking or design shall be placed on envelopes or on the front of post cards unless it has been determined in each instance that use of a given marking or design will either:

a. Reduce costs;

b. Expedite mail delivery or handling;

c. Aid in the delivery of services to the public; or

d. Promote a program or activity having major national impact.

Requests for the use of markings or design must be submitted to the State Penalty Mail Officer who will forward to ES-USDA Penalty Mail Officer.

17. Social Activities. Correspondence pertaining to free social and recreational activities sponsored solely by Cooperative Extension, in furtherance of approved projects, may be mailed under the penalty mailing privilege. Such material should be prepared so as to indicate clearly that the purpose of the activities is to reinforce the various educational and training programs of Cooperative Extension work.

18. Special Mail Service.

a. Certified, special delivery; registered mail, insured mail or other special handling.

The postage and fees for the special service must be prepaid by the sender. Meter strips or penalty stamps may be used as payment.

b. Foreign Mail. Any official mail eligible for mailing under the penalty mailing privilege within the United States may be mailed in the same way to any territory or possession of the United States.

Exception. Penalty mail may be used for international mailings if the postage is metered or penalty stamps are used. Local postal officials should be consulted for specific exceptions and restrictions before dispatching mail to any foreign country.

c. Special Services Defined

1. REGISTERED MAIL

Registry buys security. It is the safest way to send valuables through the U.S. mail system. You have the option of purchasing insurance and the full value of the mailing must be declared whether or not postal insurance is purchased. Only mail prepaid at the first class rate may be registered. (BRM may not be registered.)

• -You may register C.O.D. parcels.
• -You may obtain a Return Receipt.
• -You may request Restricted Delivery.

Registered Mail does not enter the main stream of other first class mail and requires additional delivery time.

2. CERTIFIED MAIL

Certified Mail service provides a receipt to the sender and a record of delivery at the destination Post Office. No record is kept at the entry Post Office and no insurance is provided. Certification may be used only on first class and priority mail.

• -You may obtain a Return Receipt.
• -You may request Restricted Delivery.
• -You may obtain labels at your Post Office.
• -Certified mail travels with all other first class mail and receives no identity until it arrives at the delivering Post Office.

3. CERTIFICATES OF MAILING

A Certificate of Mailing provides evidence that the item was mailed. The fee paid for a Certificate of Mailing does not insure the article against loss or damage. Certificates of Mailing are prepared by the mailer, except those who live on rural routes.

This is an excellent cost reduction service for anyone who simply requires proof that the Postal Service has accepted the item for mailing.

4. INSURED MAIL

You can obtain payment for Domestic Mail that has been lost, rifled, or damaged by having it insured. Insurance may be obtained for third and fourth class mail, and on first class mail containing third or fourth class matter. Liability for insured mail is limited to stated levels.

Insured first class mail containing third or fourth class matter must bear the endorsement "Contain third class (or fourth class) matter" in addition to the "first class" or "priority mail" endorsement.

• -You may obtain a Return Receipt.
• -You may request Restricted Delivery.

5. SPECIAL DELIVERY

Special delivery may be purchased on all classes of mail, except Express Mail, to provide prompt delivery. It provides for delivery during prescribed hours which extend beyond the hours for the delivery of ordinary mail.

Special delivery mail is also delivered on Sundays and holidays at larger Post Offices. This service is available to all addresses served by city carriers and to addresses within a one-mile radius of other delivery Post Offices. Local conditions may make this service unavailable so check with your local Post Office for details.

It is usually not necessary to purchase special delivery to a Post Office box unless the boxholder has instructed the Post Office to deliver special delivery mail to the home or office. Do not send special delivery to a business office over a weekend when you know the office will be closed.

6. SPECIAL HANDLING

Special handling service is available for third and fourth class mail only. It provides preferential handling over regular parcel post to the extent practicable in dispatch and transportation. It does not provide for special delivery. Special handling parcels are delivered on regularly scheduled trips.

7. RETURN RECEIPTS

A Return Receipt is your proof of delivery and it is available on mail insured for more than the stated value, on Certified, Registered, C.O.D. and Domestic Express Mail shipments. The Return Receipt identifies the article number, who signed for it and the date it was delivered. For an additional fee, you may obtain a receipt showing the exact address of delivery. Post Offices maintain a 2-year record of delivery on all Certified Mail.

8. RESTRICTED DELIVERY

You may also request Restricted Delivery Service. Delivery is made only to the addressee (must also be either Registered, Certified or Insured) or to an individual authorized by the addressee to receive this type of mail.

9-34 May 1990 (Revised)

19. Weight and Size Limitations.

a. Package Mail. Under current postal regulations, packages of official material mailed under the "Postage and Fees Paid" indicia may weigh up to 70 pounds and may reach a maximum size of 108 inches, length and girth combined. These weight and size limitations apply for official mail only, without regard to postal zone or class of post office. Local postal officials should be consulted for size and weight limitations on packages for which postage will be paid by the mailing office.

b. Envelopes, Cards, and Self-Mailers. The following standards apply to size and shape of envelopes, cards, and self-mailers:

(1) The minimum mailable size standard for all mailable matter including letter sized envelopes, post cards, and self-mailers is 3-1/2 x 5 inches and at least .007 (Domestic Mail Manual,

Sec. 128.2) These items must be rectangular in shape, regardless of size or class of mail.

The maximum letter-size envelope is 6-1/8 x 11-1/2 inches and not over 1/4 inch thick.

Since larger envelopes are more costly to purchase, and the postage charges are much higher; items should be folded to fit letter-size envelopes whenever possible.

NOTE: FIRST CLASS MAIL EXCEEDING THE SIZE LIMITS AND WEIGHING 1 OUNCE OR LESS IS CONSIDERED A NON-STANDARD SIZE BECAUSE IT DOES NOT LEND ITSELF TO MACHINE PROCESSING. FOR THIS REASON, A SURCHARGE IS ASSESSED ON EACH PIECE AND THE POSTAGE CHARGES ARE MUCH HIGHER (DOMESTIC MAIL MANUAL, SEC. 353).

Use envelopes that are only slightly larger than the items being mailed. Endorse mail with the class of service that you desire.

(2) Post cards, in order to qualify for lower post card rates, cannot exceed 4-1/4 x 6 inches or be less than .007 inch thick.

Larger cards are mailable, but higher postage rates are applicable.

(3) THE MINIMUM MAILABLE SIZE FOR FLAT SIZE MAIL IS OVER 6 1/2 X 11 1/2 INCHES AND OVER 1/4 INCH THICKNESS. (DOMESTIC MAIL MANUAL, SEC. 128.3)

THE MAXIMUM FLAT SIZE ENVELOPE IS 12 X 15 INCHES AND NOT OVER 3/4 INCHES THICKNESS.

20. Trade or Brand Names. In general, it is contrary to penalty mailing privilege regulations to refer to specific trade or brand names of commodities in materials prepared for distribution to the general public. This is to avoid, either directly or indirectly, the use of Extension materials as a medium of advertising. However, it is recognized that it is frequently necessary and desirable to refer to commercial products by trade or brand names.

Therefore, when trades or brand names must be mentioned, an appropriate disclaimer clause should be included to indicate that they are used only for the purpose of information and that Cooperative Extension does not guarantee or warrant the standard of the product, nor does it imply approval of the product to the exclusion of others which may also be available. Example of a suitable disclaimer clause: "The information given herein is supplied with the understanding that no discrimination is intended and no endorsement by Cooperative Extension is implied."

SECTION F - RECORDING VIOLATIONS

Permission to use local State return addresses on penalty mailing privilege items was granted by the U.S. Postal Service on the condition that the responsibility for checking undeliverable mail for possible violations of penalty mailing privilege regulations be accepted by the State Extension Director/Administrator with supervision from the Extension Service, U.S. Department of Agriculture. Therefore, it is necessary that records be kept on the type of violations and number of pieces of returned penalty mail handled so that these records may be examined periodically by the Extension Service, U.S. Department of Agriculture.

1. Undeliverable letter correspondence and other material, mailed under the penalty mailing privilege by Extension employees, when returned to the State Extension office, will be opened and examined by the designated penalty mail officer. Violations of penalty mailing privilege regulations will be documented before the material is returned to county offices. Violations may be divided into two groups:

a. Obvious and unquestionable violations consist of material mailed in the interest of individuals, farmers' organizations, or other non-government activities, or advertisements of commercial products, such as:

(1) Announcements of organization or association meetings after the organization begins to function.(See Section E,paragraph 8)

(2) Organization membership cards and receipts for payment of dues.

(3) Matters obviously prepared to promote the sale or use of commercial products.

(4) Announcements of meetings or other events sponsored by local groups, clubs, etc., whether or not there is an admission charge or sale of items is mentioned.

Violations in this group are the most serious type, and payment of postage on all such mailings is required.

Since a penalty meter (penalty stamps) was used for the original mailing, individual must reimburse the State office for the total amount of postage. Federal or OFFSET funds SHALL not be used for the payment of postage to cover mailings in violation. If the same types of violations should occur in the future by the same agent, stronger action should be taken by the State Director/Administrator.

A photocopy of the check, money order, or receipt (if applicable) should be forwarded to the ES-USDA Penalty Mail Officer.

b. Violations about which a reasonable doubt exists as to the eligibility for mailing under the penalty mailing privilege and minor violations that are the result of clerical errors or misunderstanding are:

(1) Furnishing self-addressed business reply mail (BRM) envelopes for cards for reply purposes when the act of replying appears to be for personal interest.

(2) Mailing matter in the interest of a farmers' association or other organization when it is not clear whether the association or organization has reached a stage of organization to assume such mailing costs.

(3) Incidental references to commercial products in a manner that could possibly be construed as advertising without a disclaimer clause.

(4) Failure to include proper title of persons signing communications.

(5) Omission or partial omission of cooperative heading.

(6) Mailing Extension publications in penalty envelopes without a proper letter of transmittal.

Violations in this group do not require payment of postage unless there is a record of a previous violation. Violations should be called to the attention of the employee responsible for the mailing, with instructions to follow regulations more carefully. Should the same type of violation occur in the future, the employee should be requested to reimburse the State office for the total amount of postage.

2. PENALTY MAIL NOT TO BE DETAINED (DOMESTIC MAIL MANUAL, SEC. 137.41) EVEN THOUGH THERE MAY BE POSSIBLE INDICATIONS OF ABUSE OF THE PENALTY MAILING PRIVILEGE, OFFICIAL MAIL WILL NOT BE DETAINED BY THE POSTAL SERVICE (PARAGRAPH 137.41 OF THE DOMESTIC MAIL MANUAL.) THE MAIL WILL BE PROMPTLY DISPATCHED AND DELIVERED TO THE ADDRESSEE POSTAL SERVICE. REPORTS OF INDICATED ABUSE ARE SUBMITTED TO THE RATES AND CLASSIFICATION CENTER WHO WILL THEN NOTIFY THE APPROPRIATE AGENCY TO INVESTIGATE THE MATTER AND TAKE APPROPRIATE ACTION.

3. Returned penalty mail, after being examined, should be returned to the county office from which it originated with a request to have mailing lists corrected. Penalty mail violations must be recorded. (Figure 12 is an example of a suggested format for use in maintaining records on penalty mail violations.)

Figure 12. Record of Penalty Mail Violations

SECTION G - PENALTY MAIL POSTAL METERS

Postage meters have proven to be a cost-effective method of direct accountability.

1. License

a. Each location must obtain a license to use a penalty postage meter by submitting PS Form 3601-A, "Application for a Postage Meter License," to the local post office.

b. Multiple meters may be assigned to each license (for example, when there is more than one meter at the same location). However, for billing purposes, States may elect to have a separate license for each meter.

2. Meter Indicium Format

a. Special penalty mail meter stamp designs must be placed in the upper right corner of each mailing piece. Figure 13 contains the only U.S. Postal Service approved designs which may be used.

b. Envelopes used with a penalty postage meter must not contain FIM patterns, or standard penalty indicia, and must not contain any other printing in the area where the meter stamp will be applied.

c. The complete return address of the 1862 Institution or the 1890 Institution State office address must appear in the upper left corner of each piece. The words "Official Business" must appear immediately below the return address. (Figure 14)

3. Meter Settings and Payment

a. Payment is not made at the time a penalty meter is set. The ES Penalty Mail Officer will provide quarterly reports of meter settings as reported THROUGH THE OFFICIAL MAIL AND ACCOUNTING SYSTEM BY THE U.S. POSTAL SERVICE.

The total annual amount will be deducted from the State Penalty mail allocation, ES-USDA will reimburse the U.S. Postal Service directly.

b. Since penalty meters must be inspected by the setting post office at least once every six months and payment is based on the amount of postage set rather than the amount used, meters should be set at least every six months. In this way, we can meet the inspection requirement and achieve budgetary control over metered penalty postage.

c. PS Form 3603, "Receipt for Postage Meter," will be given to the meter holder each time the meter is set.

Figure 13. USPS APPROVED PENALTY METER STAMP DESIGNS

Figure 14. ILLUSTRATION OF METERED MAIL

4. Spoiled or Unused Penalty Meter Postage

a. To obtain credit, you must present spoiled or unused penalty meter postage to the setting post office, and complete PS Form 3533, "Application and Voucher for Refund or Postage and Fees."

Credit will be given, only if:

(1) the meter stamps are complete and legible;

(2) they are on the portion of the envelope or wrapper bearing the name and address of the addressee, including the window on a window envelope; and

(3) they are submitted for refund within one year of the dates appearing on the stamps.

b. No refunds will be made in cash or applied to a meter.

STATES WILL BE CREDITED WITH THE SPOILED POSTAGE AMOUNT THROUGH THE OFFICIAL MAIL AND ACCOUNTING SYSTEM BY THE U.S. POSTAL SERVICE.

5. Changing Penalty Meter Location (DMM, SEC 137.273F)

When a penalty meter is transferred from one post office to another, the Extension office must reapply for a license at the new post office.

Exception: Meters may be transferred between stations or branches of the same post office with the permission of the postmaster. A new license application or notification to ES-USDA Penalty Mail Officer is not required for such transfers within the same office. (As long as the first three digits of the ZIP Code does not change, from the old location to the new, a new license is not required.)

6. Replacement Penalty Meters (DMM, SEC 137.273h)

If a meter is replaced, the remaining postage is transferred from the original meter to the replacement meter. It will not be transferred to a penalty meter operating under a different license number.

7. Checking Penalty Meters Out-of-Service (DMM, SEC 137.273i)

When a penalty meter is checked out-of-service without replacement and postage remains on the meter, no cash refund will be given by the post office.

CREDIT WILL BE REPORTED THROUGH THE OFFICIAL MAIL AND ACCOUNTING SYSTEM BY THE U.S. POSTAL SERVICE.

8. Mailings

a. Penalty meter imprints should indicate the correct postage, including any applicable special service or surcharge for the class and weight of the mail piece. Penalty metered mail with insufficient postage will be delivered to the addressee on payment of the deficient postage and fees.

(NOTE: When quantity mailings of ten or more pieces are received at the post office without sufficient postage, the mailer will be notified, without charge, so that the postage charges can be adjusted before the mail is dispatched.)

b. When the addressee refuses to pay the deficient postage, or when the mail is undeliverable for some reason, it will be handled as follows (Domestic Mail Manual Sec. 146.132):

(1) First-class mail will be returned to sender and the sender will be required to pay the deficient postage.

(2) Mail other than first-class will be returned to the sender and delivered on payment of the total of the deficient postage, the forwarding postage, if any, and the return postage.

SECTION H - PENALTY MAIL STAMPS

Penalty mail stamps may be used to facilitate postage accountability. The penalty stamp was designed as an alternative to the penalty meter for offices having mail volumes too small to justify the use of an official postage meter.

1. Availability

Penalty mail stamps are available in several denominations.

Penalty mail stamped stationery (printed stamped envelopes and postal cards) is also available.

2. Application

States may apply to use penalty stamps by submitting a letter of application to the Penalty Mail Officer, ES-USDA. The letter of application must state the manner in which they plan to use penalty mail stamps. The ES Penalty Mail Officer will provide requisition forms and ordering information.

SECTION I - METHODS OF CONTROLLING AND REDUCING MAIL COSTS

Postal rates will continue to increase in the future. There is also the natural tendency for mail volume to increase. It cannot be assumed that additional appropriations will be available to cover this increase. This situation demands a conscientious effort by mail managers and users, at all levels of Cooperative Extension, in order to control and reduce mail costs. Many States have already incorporated some or all of the following methods and procedures into their penalty mail programs. It is recommended that individual penalty mail programs be examined to ensure that they include maximum emphasis in this important area of management. There are four principal methods of controlling and reducing mail costs.

• Reduce the volume of mail use.
• Reduce the size and/or weight per piece of mail.
• Use cheaper mail classifications.
• Provide adequate training to employees who prepare and handle mail.

1. Ideas for Reducing Mail Volume.

a. Consolidate daily mail to county offices and other points. Consolidate county mail to the State office where possible. (Non critical mail collected over 2 or 3 days can be combined in a large envelope.)

b. Eliminate unnecessary mailings (newsletters, general publications distribution, duplicate mailings to same family, etc.).

c. Update mailing lists at least annually. This not only reduces mailings but also eliminates an irritant for some citizens who continue to receive material they no longer want.

2. Ideas for Reducing Size or Weight of Mail.

a. Fold material to the smallest practical size and use smaller envelopes.

b. Design publications and certificates to fit envelopes, 6-1/8 x 11-1/2 inches or less. These envelopes are also several times less expensive to purchase than larger envelopes.

c. Use lightweight packaging material.

d. Use lighter weight paper for publications.

3. Ideas for Using Mail Classifications.

a. Make maximum use of third-class bulk rate permits. Combine smaller mailings over 2 or 3 days to meet bulk rate requirements.

b. Use third- or fourth-class mail for mailing publications.

EXCEPTION: FIRST CLASS AND THIRD CLASS RATES ARE THE SAME FOR THE FIRST FOUR OUNCES. TO TAKE ADVANTAGE OF A FASTER DELIVERY FOR THE SAME PRICE, MAIL WEIGHING FOUR OUNCES OR LESS SHOULD BE MAILED AS FIRST CLASS.

c. Anticipate deadlines to avoid the necessity of using first-class mail for otherwise routine material.

4. Ideas for Penalty Mail Training. Proper training is essential for employees who prepare and handle the mail. This training can be provided through a variety of training methods. The following suggestions are listed as the types of items that should be included in a penalty mail training program. Extension employees with a good working knowledge of these and other mail procedures will serve as a significant factor in controlling and reducing mail costs. Each employee should understand:

a. That penalty mail is not free.

b. The Extension penalty mail privilege.

c. The types of material that can be mailed under penalty mail.

d. The different classes of mail by size, weight, and rates.

e. THE PROPER PREPARATION OF MAIL TO EXPEDITE SERVICE AND SAVE POSTAGE COSTS.

f. The methods of controlling and reducing mail costs.

g. What constitutes a penalty mail violation.

h. The signature, envelope format, and letterhead requirements.

5. Other Suggestions for Controlling and Reducing Mail Costs.

a. Consider using commercial parcel service or similar services for various categories of package mail.

b. Develop a good working relationship with the local postmaster AND/OR ACCOUNT REPRESENTATIVE. This is a good source of information and assistance that can save time and money.

c. The U.S. Postal Service publishes Memo to Mailers each month. This publication includes a wide range of general information and specific questions and answers which relate directly to penalty mail procedures. It will be sent free of charge by writing to Memo to Mailers, P.O. Box 1, Linwood, NJ 08221.

Appendix G Return to top

Table of Contents | Index

Revised Aug. 31, 2000. Content questions? Ask the experts.
Comments or suggestions? Contact the committee, (e-mail: ofcguide@iastate.edu)