Union Calendar No. 55
HR 22 RH
109th CONGRESS
1st Session
H. R. 22
[Report No. 109-66, Part I]
To reform the postal laws of the United States.
IN THE HOUSE OF REPRESENTATIVES
January 4, 2005
Mr. MCHUGH (for himself, Mr. DAVIS of Illinois, Mr. TOM DAVIS of Virginia,
and Mr. WAXMAN) introduced the following bill; which was referred to the
Committee on Government Reform
April 28, 2005
Reported with an amendment and referred to the Committee on the Judiciary for
a period ending not later than May 27, 2005, for consideration of such
provisions of the bill and the amendment as fall within the jurisdiction of that
committee pursuant to clause 1(l), rule X
[Strike out all after the enacting clause and insert the part printed in
italic]
May 27, 2005
Additional sponsors: Mr. GILLMOR, Mrs. MILLER of Michigan, Mr. CANNON, Mr.
SHAYS, Mrs. BLACKBURN, Mr. MURPHY, Mr. CLAY, Mr. FRANK of Massachusetts, Mr.
MCNULTY, Mrs. MALONEY, Mr. RUSH, Mr. OWENS, Mr. TOWNS, Mr. VAN HOLLEN, Mr.
CUMMINGS, Mr. OXLEY, Mr. CHANDLER, Mr. LARSEN of Washington, Ms. SLAUGHTER, Mr.
BAIRD, Mr. HOLT, Mr. DICKS, Ms. HARMAN, Mr. FORD, Mr. SHERMAN, Ms. WATSON, Ms.
LORETTA SANCHEZ of California, Mr. CASE, Mr. BOOZMAN, Ms. ROYBAL-ALLARD, Mr.
BLUMENAUER, Mr. ROSS, Mr. BACA, Ms. WOOLSEY, Ms. ZOE LOFGREN of California, Mr.
ROTHMAN, Mr. LANTOS, Mr. HONDA, Mr. BERMAN, Ms. MILLENDER-MCDONALD, Mr. SAXTON,
Ms. LEE, Ms. BERKLEY, Mr. FARR, Mr. STARK, Mr. GARRETT of New Jersey, Ms.
HOOLEY, Mr. PLATTS, Mr. CARDOZA, Mr. SMITH of Washington, Mr. HIGGINS, Mrs.
CUBIN, Mr. INSLEE, Mr. SCHIFF, Mr. MCDERMOTT, Mr. CHABOT, Mr. BECERRA, Mr.
FILNER, Mrs. TAUSCHER, Mr. ALLEN, Mr. EVANS, Mr. BURTON of Indiana, Mr. SCOTT of
Georgia, Mrs. DAVIS of California, Mr. PALLONE, Mr. MORAN of Virginia, Mr.
MICHAUD, Mr. LAHOOD, Mr. KUHL of New York, Ms. BALDWIN, Mr. HINCHEY, Mr.
PETERSON of Minnesota, Mr. SPRATT, Mr. LINCOLN DIAZ-BALART of Florida, Mr.
PASCRELL, Mr. MOORE of Kansas, Ms. HERSETH, Mr. MEEK of Florida, Mr. PORTER,
Mrs. DRAKE, Mr. SIMMONS, Mr. CONYERS, Ms. GINNY BROWN-WAITE of Florida, Mr.
ANDREWS, Mr. MENENDEZ, Ms. LINDA T. SANCHEZ of California, Mr. MURTHA, Mr.
REYES, Mr. DUNCAN, Mr. BRADLEY of New Hampshire, Mr. LATOURETTE, Mr. TURNER, Mr.
SOUDER, Mr. BISHOP of New York, Mr. ISSA, Mr. GUTIERREZ, Mr. WELLER, Ms.
WASSERMAN SCHULTZ, Mr. WEXLER, Mr. PETERSON of Pennsylvania, Mr. DENT, Mr.
LARSON of Connecticut, Mr. MICA, Mrs. CAPITO, Mr. MCHENRY, Mr. WESTMORELAND, Mr.
CUNNINGHAM, Ms. MATSUI, Ms. CARSON, Mr. MARCHANT, Mr. COSTA, Mr. GERLACH, Mr.
TIBERI, Mr. MCKEON, Ms. KAPTUR, Mr. PASTOR, Mr. LIPINSKI, Mrs. NORTHUP, Mr. NEAL
of Massachusetts, Mr. LATHAM, Mr. MCGOVERN, Mr. STRICKLAND, Mr. DAVIS of
Florida, Mr. GIBBONS, Mr. LANGEVIN, Mr. NORWOOD, Mr. CARDIN, Mr. BASS, Mr.
BILIRAKIS, Mr. DOYLE, Ms. ROS-LEHTINEN, Mr. GREEN of Wisconsin, Mr. CUELLAR, Mr.
ENGLISH of Pennsylvania, Mrs. NAPOLITANO, Mr. FERGUSON, Mrs. CAPPS, Mr. SHUSTER,
Mr. PETRI, Mr. RYAN of Ohio, Mr. BOUCHER, Mr. SANDERS, Mr. RAHALL, Mr. BOEHLERT,
Mr. KANJORSKI, Mr. GARY G. MILLER of California, Mr. BISHOP of Georgia, Mr.
SESSIONS, Mr. WILSON of South Carolina, Mr. THOMPSON of California, Ms.
KILPATRICK of Michigan, Mr. CARNAHAN, Mr. LYNCH, Mr. SCHWARZ of Michigan, Ms.
SOLIS, Mr. BACHUS, Mr. ABERCROMBIE, Mr. WU, Mr. DAVIS of Kentucky, and Mr.
DELAHUNT
May 27, 2005
The Committee on the Judiciary discharged; committed to the Committee of the
Whole House on the State of the Union and ordered to be printed
[For text of introduced bill, see copy of bill as introduced on January
4, 2005]
A BILL
To reform the postal laws of the United States.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE- This Act may be cited as the `Postal Accountability
and Enhancement Act'.
(b) TABLE OF CONTENTS- The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--DEFINITIONS; POSTAL SERVICES
Sec. 102. Postal services.
Sec. 103. Financial transparency.
TITLE II--MODERN RATE REGULATION
Sec. 201. Provisions relating to market-dominant
products.
Sec. 202. Provisions relating to competitive products.
Sec. 203. Provisions relating to experimental and new
products.
Sec. 204. Reporting requirements and related provisions.
Sec. 205. Complaints; appellate review and enforcement.
Sec. 206. Workshare discounts.
Sec. 207. Clerical amendment.
TITLE III--PROVISIONS RELATING TO FAIR COMPETITION
Sec. 301. Postal Service Competitive Products Fund.
Sec. 302. Assumed Federal income tax on competitive products
income.
Sec. 303. Unfair competition prohibited.
Sec. 304. Suits by and against the Postal Service.
Sec. 305. International postal arrangements.
TITLE IV--GENERAL PROVISIONS
Sec. 401. Qualification requirements for Governors.
Sec. 403. Private carriage of letters.
Sec. 404. Rulemaking authority.
Sec. 405. Noninterference with collective bargaining agreements,
etc.
Sec. 406. Bonus and compensation authority.
Sec. 407. Mediation in collective-bargaining disputes.
TITLE V--ENHANCED REGULATORY COMMISSION
Sec. 501. Reorganization and modification of certain provisions
relating to the Postal Regulatory Commission.
Sec. 502. Authority for Postal Regulatory Commission to issue
subpoenas.
Sec. 503. Appropriations for the Postal Regulatory
Commission.
Sec. 504. Redesignation of the Postal Rate Commission.
Sec. 505. Officer of the Postal Regulatory Commission representing
the general public.
TITLE VI--INSPECTORS GENERAL
Sec. 601. Inspector General of the Postal Regulatory
Commission.
Sec. 602. Inspector General of the United States Postal Service to
be appointed by the President.
TITLE VII--EVALUATIONS
Sec. 701. Universal postal service study.
Sec. 702. Assessments of ratemaking, classification, and other
provisions.
Sec. 703. Study on equal application of laws to competitive
products.
Sec. 704. Greater diversity in Postal Service Executive and
administrative schedule management positions.
Sec. 705. Plan for assisting displaced workers.
Sec. 706. Contracts with women, minorities, and small
businesses.
Sec. 707. Rates for periodicals.
Sec. 708. Assessment of certain rate deficiencies.
Sec. 709. Network optimization.
Sec. 710. Assessment of future business model of the postal
service.
Sec. 711. Study on certain proposed amendments.
TITLE VIII--MISCELLANEOUS; TECHNICAL AND CONFORMING AMENDMENTS
Sec. 801. Employment of postal police officers.
Sec. 802. Date of postmark to be treated as date of appeal in
connection with the closing or consolidation of post offices.
Sec. 803. Provisions relating to benefits under chapter 81 of title
5, United States Code, for officers and employees of the former Post Office
Department.
Sec. 804. Obsolete provisions.
Sec. 807. Hazardous matter.
Sec. 808. Provisions relating to cooperative mailings.
Sec. 809. Technical and conforming amendments.
TITLE IX--POSTAL PENSION FUNDING REFORM AMENDMENTS
Sec. 901. Civil Service Retirement System.
Sec. 902. Health insurance.
Sec. 904. Ensuring appropriate use of escrow and military
savings.
Sec. 905. Effective dates.
TITLE I--DEFINITIONS; POSTAL SERVICES
SEC. 101. DEFINITIONS.
Section 102 of title 39, United States Code, is amended by striking
`and' at the end of paragraph (3), by striking the period at the end of
paragraph (4) and inserting a semicolon, and by adding at the end the
following:
`(5) `postal service' means the carriage of letters, printed matter,
or mailable packages, including acceptance, collection, processing,
delivery, or other functions supportive or ancillary thereto;
`(6) `product' means a postal service with a distinct cost or market
characteristic for which a rate or rates are, or may reasonably be,
applied;
`(7) `rates', as used with respect to products, includes fees for
postal services;
`(8) `market-dominant product' or `product in the market-dominant
category of mail' means a product subject to subchapter I of chapter
36;
`(9) `competitive product' or `product in the competitive category
of mail' means a product subject to subchapter II of chapter 36;
`(10) `Consumer Price Index' means the Consumer Price Index for All
Urban Consumers published monthly by the Bureau of Labor Statistics of the
Department of Labor; and
`(11) `year', as used in chapter 36 (other than subchapters I and VI
thereof), means a fiscal year.'.
SEC. 102. POSTAL SERVICES.
(a) IN GENERAL- Section 404 of title 39, United States Code, is
amended--
(1) in subsection (a), by striking paragraph (6) and by
redesignating paragraphs (7) through (9) as paragraphs (6) through (8),
respectively; and
(2) by adding at the end the following:
`(c) Nothing in this title shall be considered to permit or require
that the Postal Service provide any special nonpostal or similar services,
except that nothing in this subsection shall prevent the Postal Service from
providing any special nonpostal or similar services provided by the Postal
Service as of January 4, 2005.'.
(b) CONFORMING AMENDMENT- Section 1402(b)(1)(B)(ii) of the Victims of
Crime Act of 1984 (98 Stat. 2170; 42 U.S.C. 10601(b)(1)(B)(ii)) is amended by
striking `404(a)(8)' and inserting `404(a)(7)'.
SEC. 103. FINANCIAL TRANSPARENCY.
(a) IN GENERAL- Section 101 of title 39, United States Code, is
amended by redesignating subsections (d) through (g) as subsections (e)
through (h), respectively, and by inserting after subsection (c) the
following:
`(d) As an establishment that provides both market-dominant and
competitive products, the Postal Service shall be subject to a high degree of
transparency, including in its finances and operations, to ensure fair
treatment of customers of the Postal Service's market-dominant products and
companies competing with the Postal Service's competitive products.'.
(b) CONFORMING AMENDMENT- Section 5001 of title 39, United States
Code, is amended by striking `101(e) and (f)' and inserting `101(f) and
(g)'.
TITLE II--MODERN RATE REGULATION
SEC. 201. PROVISIONS RELATING TO MARKET-DOMINANT PRODUCTS.
(a) IN GENERAL- Chapter 36 of title 39, United States Code, is amended
by striking sections 3621 and 3622 and inserting the following:
`Sec. 3621. Applicability; definitions
`(a) APPLICABILITY- This subchapter shall apply with respect
to--
`(1)(A) single piece first-class letters (both domestic and
international);
`(B) single piece first-class cards (both domestic and
international); and
`(2) all first-class mail not included under paragraph
(1);
`(7) bound printed matter,
subject to any changes the Postal Regulatory Commission may make under
section 3642.
`(b) RULE OF CONSTRUCTION- Mail matter referred to in subsection (a)
shall, for purposes of this subchapter, be considered to have the meaning
given to such mail matter under the mail classification schedule.
`Sec. 3622. Modern rate regulation
`(a) AUTHORITY GENERALLY- The Postal Regulatory Commission shall,
within 24 months after the date of the enactment of this section, by
regulation establish (and may from time to time thereafter by regulation
revise) a modern system for regulating rates and classes for market-dominant
products.
`(b) OBJECTIVES- Such system shall be designed to achieve the
following objectives:
`(1) To establish and maintain a fair and equitable schedule for
rates and classification.
`(2) To maximize incentives to reduce costs and increase
efficiency.
`(3) To create predictability and stability in
rates.
`(4) To maintain high quality service standards.
`(5) To allow the Postal Service
pricing flexibility.
`(6) To assure adequate revenues, including retained
earnings, to
maintain financial stability.
`(7) To reduce the administrative burden of the ratemaking
process.
`(c) FACTORS- In establishing or revising such system, the Postal
Regulatory Commission shall take into account--
`(1) the value of the mail service actually provided each class or
type of mail service to both the sender and the recipient, including but not
limited to the collection, mode of transportation, and priority of
delivery;
`(2) the direct and indirect postal costs attributable to each class
or type of mail service plus that portion of all other costs of the Postal
Service reasonably assignable to such class or type;
`(3) the effect of rate increases upon the general public, business
mail users, and enterprises in the private sector of the economy engaged in
the delivery of mail matter other than letters;
`(4) the available alternative means of sending and receiving
letters and other mail matter at reasonable costs;
`(5) the degree of preparation
of mail for delivery into the postal
system performed by the mailer and its effect upon reducing costs to the
Postal Service;
`(6) simplicity of structure for the entire schedule and simple,
identifiable relationships between the rates or fees charged the various
classes of mail for postal services;
`(7) the relative value to the people of the kinds of mail matter
entered into the postal system and the desirability and justification for
special classifications and services of mail;
`(8) the importance of providing classifications with extremely high
degrees of reliability and speed of delivery and of providing those that do
not require high degrees of reliability and speed of delivery;
`(9) the desirability of special classifications from the point of
view of both the user and of the Postal Service;
`(10) the educational, cultural, scientific, and informational value
to the recipient of mail matter; and
`(11) the policies of this title as well as such other factors as
the Commission deems appropriate.
`(d) ALLOWABLE PROVISIONS- The system for regulating rates and classes
for market-dominant products may include one or more of the following:
`(1) Price caps, revenue targets, or other form of incentive
regulation.
`(2) Cost-of-service
regulation.
`(3) Such other form of regulation as the Commission considers
appropriate to achieve, consistent with subsection (c), the objectives of
subsection (b).
`(e) LIMITATION- In the administration of this section, the Commission
shall not permit the average rate in any subclass of mail to increase at an
annual rate greater than the comparable increase in the Consumer Price Index,
unless it has, after notice and opportunity for a public hearing and comment,
determined that such increase is reasonable and equitable and necessary to
enable the Postal Service, under best practices of honest, efficient, and
economical management, to maintain and continue the development of postal
services of the kind and quality adapted to the needs of the United
States.
`(f) TRANSITION RULE- Until regulations under this section first take
effect, rates and classes for market-dominant products shall remain subject to
modification in accordance with the provisions of this chapter and section
407, as such provisions were last in effect before the date of the enactment
of this section.'.
(b) REPEALED SECTIONS- Sections 3623, 3624, 3625, and 3628 of title
39, United States Code, are repealed.
(c) REDESIGNATION- Chapter 36 of title 39, United States Code (as in
effect after the amendment made by section 501(a)(2), but before the amendment
made by section 202) is amended by striking the heading for subchapter II and
inserting the following:
`SUBCHAPTER I--PROVISIONS RELATING TO MARKET-DOMINANT
PRODUCTS'.
SEC. 202. PROVISIONS RELATING TO COMPETITIVE PRODUCTS.
Chapter 36 of title 39, United States Code, is amended by inserting
after section 3629 the following:
`SUBCHAPTER II--PROVISIONS RELATING TO COMPETITIVE PRODUCTS
`Sec. 3631. Applicability; definitions and updates
`(a) APPLICABILITY- This subchapter shall apply with respect
to--
`(4) international mail; and
subject to any changes the Postal Regulatory Commission may make under
section 3642.
`(b) DEFINITION- For purposes of this subchapter, the term `costs
attributable', as used with respect to a product, means the direct and
indirect postal costs attributable to such product.
`(c) RULE OF CONSTRUCTION- Mail matter referred to in subsection (a)
shall, for purposes of this subchapter, be considered to have the meaning
given to such mail matter under the mail classification schedule.
`Sec. 3632. Action of the Governors
`(a) AUTHORITY TO ESTABLISH RATES AND CLASSES- The Governors shall
establish rates and classes for products in the competitive category of mail
in accordance with the requirements of this subchapter and regulations
promulgated under section 3633.
`(1) IN GENERAL- Rates and classes shall be established in writing,
complete with a statement of explanation and justification, and the date as
of which each such rate or class takes effect.
`(2) RATES OR CLASSES OF GENERAL APPLICABILITY- In the case of rates
or classes of general applicability in the Nation as a whole or in any
substantial region of the Nation, the Governors shall cause each rate and
class decision under this section and the record of the Governors'
proceedings in connection with such decision to be published in the Federal
Register at least 30 days before the effective date of any new rates or
classes.
`(3) RATES OR CLASSES NOT OF GENERAL APPLICABILITY- In the case of
rates or classes not of general applicability in the Nation as a whole or in
any substantial region of the Nation, the Governors shall cause each rate
and class decision under this section and the record of the proceedings in
connection with such decision to be filed with the Postal Regulatory
Commission by such date before the effective date of any new rates or
classes as the Governors consider appropriate, but in no case less than 15
days.
`(4) CRITERIA- As part of the regulations required under section
3633, the Postal Regulatory Commission shall establish criteria for
determining when a rate or class established under this subchapter is or is
not of general applicability in the Nation as a whole or in any substantial
region of the Nation.
`(c) TRANSITION RULE- Until regulations under section 3633 first take
effect, rates and classes for competitive products shall remain subject to
modification in accordance with the provisions of this chapter and section
407, as such provisions were as last in effect before the date of the
enactment of this section.
`Sec. 3633. Provisions applicable to rates for competitive
products
`The Postal Regulatory Commission shall, within 18 months after the
date of the enactment of this section, promulgate (and may from time to time
thereafter revise) regulations--
`(1) to prohibit the subsidization of competitive products by
market-dominant products;
`(2) to ensure that each competitive product covers its costs
attributable; and
`(3) to ensure that all competitive products collectively make a
reasonable contribution to the institutional costs of the Postal Service.'.
SEC. 203. PROVISIONS RELATING TO EXPERIMENTAL AND NEW
PRODUCTS.
Subchapter III of chapter 36 of title 39, United States Code, is
amended to read as follows:
`SUBCHAPTER III--PROVISIONS RELATING TO EXPERIMENTAL AND NEW
PRODUCTS
`Sec. 3641. Market tests of experimental products
`(1) IN GENERAL- The Postal Service may conduct market tests of
experimental products in accordance with this section.
`(2) PROVISIONS WAIVED- A product shall not, while it is being
tested under this section, be subject to the requirements of sections 3622,
3633, or 3642, or regulations promulgated under those sections.
`(b) CONDITIONS- A product may not be tested under this section unless
it satisfies each of the following:
`(1) SIGNIFICANTLY DIFFERENT PRODUCT- The product is, from the
viewpoint of the mail users, significantly different from all products
offered by the Postal Service within the 2-year period preceding the start
of the test.
`(2) MARKET DISRUPTION- The introduction or continued offering of
the product will not create an unfair or otherwise inappropriate competitive
advantage for the Postal Service or any mailer, particularly in regard to
small business concerns (as defined under subsection (h)).
`(3) CORRECT CATEGORIZATION- The Postal Service identifies the
product, for the purpose of a test under this section, as either market
dominant or competitive, consistent with the criteria under section
3642(b)(1). Costs and revenues attributable to a product identified as
competitive shall be included in any determination under section 3633(3)
(relating to provisions applicable to competitive products
collectively).
`(1) IN GENERAL- At least 30 days before initiating a market test
under this section, the Postal Service shall file with the Postal Regulatory
Commission and publish in the Federal Register a notice--
`(A) setting out the basis for the Postal Service's determination
that the market test is covered by this section; and
`(B) describing the nature and scope of the market
test.
`(2) SAFEGUARDS- For a competitive experimental product, the
provisions of section 504(g) shall be available with respect to any
information required to be filed under paragraph (1) to the same extent and
in the same manner as in the case of any matter described in section
504(g)(1). Nothing in paragraph (1) shall be considered to permit or require
the publication of any information as to which confidential treatment is
accorded under the preceding sentence (subject to the same exception as set
forth in section 504(g)(3)).
`(1) IN GENERAL- A market test of a product under this section may
be conducted over a period of not to exceed 24 months.
`(2) EXTENSION AUTHORITY- If necessary in order to determine the
feasibility or desirability of a product being tested under this section,
the Postal Regulatory Commission may, upon written application of the Postal
Service (filed not later than 60 days before the date as of which the
testing of such product would otherwise be scheduled to terminate under
paragraph (1)), extend the testing of such product for not to exceed an
additional 12 months.
`(e) DOLLAR-AMOUNT LIMITATION-
`(1) IN GENERAL- A product may be tested under this section only if
the total revenues that are anticipated, or in fact received, by the Postal
Service from such product do not exceed $10,000,000 nationwide in any year,
subject to paragraph (2) and subsection (g). In carrying out the preceding
sentence, the Postal Regulatory Commission may limit the amount of revenues
the Postal Service may obtain from any particular geographic market as
necessary to prevent market disruption (as defined in subsection
(b)(2)).
`(2) EXEMPTION AUTHORITY- The Postal Regulatory Commission may, upon
written application of the Postal Service, exempt the market test from the
limit in paragraph (1) if the total revenues that are anticipated, or in
fact received, by the Postal Service from such product do not exceed
$50,000,000 in any year, subject to subsection (g). In reviewing an
application under this paragraph, the Postal Regulatory Commission shall
approve such application if it determines that--
`(A) the product is likely to benefit the public and meet an
expected demand;
`(B) the product is likely to contribute to the financial
stability of the Postal Service; and
`(C) the product is not likely to result in unfair or otherwise
inappropriate competition.
`(f) CANCELLATION- If the Postal Regulatory Commission at any time
determines that a market test under this section fails, with respect to any
particular product, to meet one or more of the requirements of this section,
it may order the cancellation of the test involved or take such other action
as it considers appropriate. A determination under this subsection shall be
made in accordance with such procedures as the Commission shall by regulation
prescribe.
`(g) ADJUSTMENT FOR INFLATION- For purposes of each year following the
year in which occurs the deadline for the Postal Service's first report to the
Postal Regulatory Commission under section 3652(a), each dollar amount
contained in this section shall be adjusted by the change in the Consumer
Price Index for such year (as determined under regulations of the
Commission).
`(h) DEFINITION OF A SMALL BUSINESS CONCERN- The criteria used in
defining small business concerns or otherwise categorizing business concerns
as small business concerns shall, for purposes of this section, be established
by the Postal Regulatory Commission in conformance with the requirements of
section 3 of the Small Business Act.
`(i) EFFECTIVE DATE- Market tests under this subchapter may be
conducted in any year beginning with the first year in which occurs the
deadline for the Postal Service's first report to the Postal Regulatory
Commission under section 3652(a).
`Sec. 3642. New products and transfers of products between the
market-dominant and competitive categories of mail
`(a) IN GENERAL- Upon request of the Postal Service or users of the
mails, or upon its own initiative, the Postal Regulatory Commission may change
the list of market-dominant products under section 3621 and the list of
competitive products under section 3631 by adding new products to the lists,
removing products from the lists, or transferring products between the
lists.
`(b) CRITERIA- All determinations by the Postal Regulatory Commission
under subsection (a) shall be made in accordance with the following
criteria:
`(1) The market-dominant category of products shall consist of each
product in the sale of which the Postal Service exercises sufficient market
power that it can effectively set the price of such product substantially
above costs, raise prices significantly, decrease quality, or decrease
output, without risk of losing business to other firms offering similar
products. The competitive category of products shall consist of all other
products.
`(2) EXCLUSION OF PRODUCTS COVERED BY POSTAL MONOPOLY- A product
covered by the postal monopoly shall not be subject to transfer under this
section from the market-dominant category of mail. For purposes of the
preceding sentence, the term `product covered by the postal monopoly' means
any product the conveyance or transmission of which is reserved to the
United States under section 1696 of title 18, subject to the same exception
as set forth in the last sentence of section 409(e)(1).
`(3) ADDITIONAL CONSIDERATIONS- In making any decision under this
section, due regard shall be given to--
`(A) the availability and nature of enterprises in the private
sector engaged in the delivery of the product involved;
`(B) the views of those who use the product involved on the
appropriateness of the proposed action; and
`(C) the likely impact of the proposed action on small business
concerns (within the meaning of section 3641(h)).
`(c) TRANSFERS OF SUBCLASSES AND OTHER SUBORDINATE UNITS ALLOWABLE-
Nothing in this title shall be considered to prevent transfers under this
section from being made by reason of the fact that they would involve only
some (but not all) of the subclasses or other subordinate units of the class
of mail or type of postal service involved (without regard to satisfaction of
minimum quantity requirements standing alone).
`(d) NOTIFICATION AND PUBLICATION REQUIREMENTS-
`(1) NOTIFICATION REQUIREMENT- The Postal Service shall, whenever it
requests to add a product or transfer a product to a different category,
file with the Postal Regulatory Commission and publish in the Federal
Register a notice setting out the basis for its determination that the
product satisfies the criteria under subsection (b) and, in the case of a
request to add a product or transfer a product to the competitive category
of mail, that the product meets the regulations promulgated by the Postal
Regulatory Commission pursuant to section 3633. The provisions of section
504(g) shall be available with respect to any information required to be
filed.
`(2) PUBLICATION REQUIREMENT- The Postal Regulatory Commission
shall, whenever it changes the list of products in the market-dominant or
competitive category of mail, prescribe new lists of products. The revised
lists shall indicate how and when any previous lists (including the lists
under sections 3621 and 3631) are superseded, and shall be published in the
Federal Register.
`(e) NOTIFICATION REQUIREMENT- The Postal Regulatory Commission shall,
whenever it reaches a conclusion that a product or products should be
transferred between the list of market-dominant products under section 3621
and the list of competitive products under section 3631, immediately notify
the appropriate committees of the Congress. No such transfer may take effect
less than 12 months after such conclusion.
`(f) PROHIBITION- Except as provided in section 3641, no product that
involves the carriage of letters, printed matter, or mailable packages may be
offered by the Postal Service unless it has been assigned to the
market-dominant or competitive category of mail (as appropriate)
either--
`(1) under this subchapter; or
`(2) by or under any other provision of law.'.
SEC. 204. REPORTING REQUIREMENTS AND RELATED PROVISIONS.
(a) REDESIGNATION- Chapter 36 of title 39, United States Code (as in
effect before the amendment made by subsection (b)) is amended by striking the
heading for subchapter IV and inserting the following:
`SUBCHAPTER V--POSTAL SERVICES, COMPLAINTS, AND JUDICIAL
REVIEW'.
(b) REPORTS AND COMPLIANCE- Chapter 36 of title 39, United States
Code, is amended by inserting after subchapter III the following:
`SUBCHAPTER IV--REPORTING REQUIREMENTS AND RELATED PROVISIONS
`Sec. 3651. Annual reports by the Commission
`(a) IN GENERAL- The Postal Regulatory Commission shall submit an
annual report to the President and the Congress concerning the operations of
the Commission under this title, including the extent to which regulations are
achieving the objectives under sections 3622 and 3633, respectively.
`(b) ADDITIONAL INFORMATION- In addition to the information required
under subsection (a), each report under this section shall also include, with
respect to the period covered by such report, an estimate of the costs
incurred by the Postal Service in providing--
`(1) postal services to areas of the Nation where, in the judgment
of the Postal Regulatory Commission, the Postal Service either would not
provide services at all or would not provide such services in accordance
with the requirements of this title if the Postal Service were not required
to provide prompt, reliable, and efficient services to patrons in all areas
and all communities, including as required under the first sentence of
section 101(b);
`(2) free or reduced rates for postal services as required by this
title; and
`(3) other public services or activities
which, in the judgment of
the Postal Regulatory Commission, would not otherwise have been provided by
the Postal Service but for the requirements of law.
The Commission shall detail the bases for its estimates and the
statutory requirements giving rise to the costs identified in each report
under this section.
`(c) INFORMATION FROM POSTAL SERVICE- The Postal Service shall provide
the Postal Regulatory Commission with such information as may, in the judgment
of the Commission, be necessary in order for the Commission to prepare its
reports under this section.
`Sec. 3652. Annual reports to the Commission
`(a) COSTS, REVENUES, AND RATES- Except as provided in subsection (c),
the Postal Service shall, no later than 90 days after the end of each year,
prepare and submit to the Postal Regulatory Commission a report (together with
such nonpublic annex thereto as the Commission may require under subsection
(e))--
`(1) which shall analyze costs, revenues, and rates, using such
methodologies as the Commission shall by regulation prescribe, and in
sufficient detail to demonstrate that the rates in effect for all products
during such year complied with all applicable requirements of this title;
and
`(2) which shall, for each market-dominant product
provided in such
year, provide--
`(A) market information, including mail volumes; and
`(B) measures of the quality of service
afforded by the Postal
Service in connection with such product, including--
`(i) the service standard applicable to such
product;
`(ii) the level of service (described in terms of speed of
delivery and reliability) provided; and
`(iii) the degree of customer satisfaction with the service
provided.
The Inspector General shall regularly audit the data collection
systems and procedures utilized in collecting information and preparing such
report (including any annex thereto and the information required under
subsection (b)). The results of any such audit shall be submitted to the
Postal Service and the Postal Regulatory Commission.
`(b) INFORMATION RELATING TO WORKSHARE DISCOUNTS-
`(1) IN GENERAL- The Postal Service shall include, in each report
under subsection (a), the following information with respect to each
market-dominant product for which a workshare discount was in effect during
the period covered by such report:
`(A) The per-item cost avoided by the Postal Service by virtue of
such discount.
`(B) The percentage of such per-item cost avoided that the
per-item workshare discount represents.
`(C) The per-item contribution made to institutional
costs.
`(2) WORKSHARE DISCOUNT DEFINED- For purposes of this subsection,
the term `workshare discount' has the meaning given such term under section
3687.
`(c) MARKET TESTS- In carrying out subsections (a) and (b) with
respect to experimental products offered through market tests under section
3641 in a year, the Postal Service--
`(1) may report summary data on the costs, revenues, and quality of
service by market test; and
`(2) shall report such data as the Postal Regulatory Commission
requires.
`(d) SUPPORTING MATTER- The Postal Regulatory Commission shall have
access, in accordance with such regulations as the Commission shall prescribe,
to the working papers and any other supporting matter of the Postal Service
and the Inspector General in connection with any information submitted under
this section.
`(e) CONTENT AND FORM OF REPORTS-
`(1) IN GENERAL- The Postal Regulatory Commission shall, by
regulation, prescribe the content and form of the public reports (and any
nonpublic annex and supporting matter relating thereto) to be provided by
the Postal Service under this section. In carrying out this subsection, the
Commission shall give due consideration to--
`(A) providing the public with adequate information to assess the
lawfulness of rates charged;
`(B) avoiding unnecessary or unwarranted administrative effort and
expense on the part of the Postal Service; and
`(C) protecting the confidentiality of commercially sensitive
information.
`(2) REVISED REQUIREMENTS- The Commission may, on its own motion or
on request of an interested party, initiate proceedings (to be conducted in
accordance with regulations that the Commission shall prescribe) to improve
the quality, accuracy, or completeness of Postal Service data required by
the Commission under this subsection whenever it shall appear
that--
`(A) the attribution of costs or revenues to products has become
significantly inaccurate or can be significantly improved;
`(B) the quality of service data has become significantly
inaccurate or can be significantly improved; or
`(C) those revisions are, in the judgment of the Commission,
otherwise necessitated by the public interest.
`(f) CONFIDENTIAL INFORMATION-
`(1) IN GENERAL- If the Postal Service determines that any document
or portion of a document, or other matter, which it provides to the Postal
Regulatory Commission in a nonpublic annex under this section or pursuant to
subsection (d) contains information which is described in section 410(c) of
this title, or exempt from public disclosure under section 552(b) of title
5, the Postal Service shall, at the time of providing such matter to the
Commission, notify the Commission of its determination, in writing, and
describe with particularity the documents (or portions of documents) or
other matter for which confidentiality is sought and the reasons
therefor.
`(2) TREATMENT- Any information or other matter described in
paragraph (1) to which the Commission gains access under this section shall
be subject to paragraphs (2) and (3) of section 504(g) in the same way as if
the Commission had received notification with respect to such matter under
section 504(g)(1).
`(g) OTHER REPORTS- The Postal Service shall submit to the Postal
Regulatory Commission, together with any other submission that it is required
to make under this section in a year, copies of its then most recent--
`(1) comprehensive statement under section 2401(e);
`(2) performance plan under section 2803; and
`(3) program performance reports under section 2804.
`Sec. 3653. Annual determination of compliance
`(a) OPPORTUNITY FOR PUBLIC COMMENT- After receiving the reports
required under section 3652 for any year, the Postal Regulatory Commission
shall promptly provide an opportunity for comment on such reports by users of
the mails, affected parties, and an officer of the Commission who shall be
required to represent the interests of the general public.
`(b) DETERMINATION OF COMPLIANCE OR NONCOMPLIANCE- Not later than 90
days after receiving the submissions required under section 3652 with respect
to a year, the Postal Regulatory Commission shall make a written determination
as to--
`(1) whether any rates or fees in effect during such year (for
products individually or collectively) were not in compliance with
applicable provisions of this chapter (or regulations promulgated
thereunder);
`(2) whether any performance goals established under section 2803 or
2804 for such year were not met; and
`(3) whether any market-dominant product failed to meet any service
standard during such year.
If, with respect to a year, no instance of noncompliance is found
under this subsection to have occurred in such year, the written determination
shall be to that effect.
`(c) IF ANY NONCOMPLIANCE IS FOUND- If, for a year, a timely written
determination of noncompliance is made under subsection (b), the Postal
Regulatory Commission shall take appropriate action in accordance with
subsections (c)-(e) of section 3662 (as if a complaint averring such
noncompliance had been duly filed and found under such section to be
justified).
`(d) REBUTTABLE PRESUMPTION- A timely written determination described
in the last sentence of subsection (b) shall, for purposes of any proceeding
under section 3662, create a rebuttable presumption of compliance by the
Postal Service (with regard to the matters described in paragraphs (1) through
(3) of subsection (b)) during the year to which such determination
relates.
`Sec. 3654. Additional financial reporting
`(a) ADDITIONAL FINANCIAL REPORTING-
`(1) IN GENERAL- The Postal Service shall file with the Postal
Regulatory Commission beginning with the first full fiscal year following
the effective date of this section--
`(A) within 35 days after the end of each fiscal quarter, a
quarterly report containing the information required by the Securities and
Exchange Commission to be included in quarterly reports under sections 13
and 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m,
78o(d)) on Form 10-Q, as such Form (or any successor form) may be
revised from time to time;
`(B) within 60 days after the end of each fiscal year, an annual
report containing the information required by the Securities and Exchange
Commission to be included in annual reports under such sections on Form
10-K, as such Form (or any successor form) may be revised from time to
time; and
`(C) periodic reports within the time frame and containing the
information prescribed in Form 8-K of the Securities and Exchange
Commission, as such Form (or any successor form) may be revised from time
to time.
`(2) REGISTRANT DEFINED- For purposes of defining the reports
required by paragraph (1), the Postal Service shall be deemed to be the
`registrant' described in the Securities and Exchange Commission Forms, and
references contained in such Forms to Securities and Exchange Commission
regulations are incorporated herein by reference, as amended.
`(3) INTERNAL CONTROL REPORT- For purposes of defining the reports
required by paragraph (1)(B), the Postal Service shall comply with the rules
prescribed by the Securities and Exchange Commission implementing section
404 of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7262), beginning with the
annual report for fiscal year 2007.
`(b) FINANCIAL REPORTING-
`(1) The reports required by subsection (a)(1)(B) shall include,
with respect to the Postal Service's pension and post-retirement health
obligations--
`(A) the funded status of the Postal Service's pension and
--postretirement health obligations;
`(B) components of the net change in the fund balances and
obligations and the nature and cause of any significant
changes;
`(C) components of net periodic costs;
`(D) cost methods and assumptions underlying the relevant
actuarial valuations;
`(E) the effect of a one-percentage point increase in the assumed
health care cost trend rate for each future year on the service and
interest costs components of net periodic postretirement health cost and
the accumulated obligation;
`(F) actual contributions to and payments from the funds for the
years presented and the estimated future contributions and payments for
each of the following 5 years;
`(G) the composition of plan assets reflected in the fund
balances; and
`(H) the assumed rate of return on fund balances and the actual
rates of return for the years presented.
`(2)(A) Beginning with reports for the fiscal year 2007, for
purposes of the reports required under subparagraphs (A) and (B) of
subsection (a)(1), the Postal Service shall include segment
reporting.
`(B) The Postal Service shall determine the appropriate segment
reporting under subparagraph (A) after consultation with the Postal
Regulatory Commission.
`(c) TREATMENT- For purposes of the reports required by subsection
(a)(1)(B), the Postal Service shall obtain an opinion from an independent
auditor on whether the information listed in subsection (b) is fairly stated
in all material respects, either in relation to the basic financial statements
as a whole or on a stand-alone basis.
`(d) SUPPORTING MATTER- The Postal Regulatory Commission shall have
access to the audit documentation and any other supporting matter of the
Postal Service and its independent auditor in connection with any information
submitted under this section.
`(e) REVISED REQUIREMENTS- The Postal Regulatory Commission may, on
its own motion or on request of an interested party, initiate proceedings (to
be conducted in accordance with regulations that the Commission shall
prescribe) to improve the quality, accuracy, or completeness of Postal Service
data required under this section whenever it shall appear that--
`(1) the data have become significantly inaccurate or can be
significantly improved; or
`(2) those revisions are, in the judgment of the Commission,
otherwise necessitated by the public interest.
`(f) CONFIDENTIAL INFORMATION-
`(1) IN GENERAL- If the Postal Service determines that any document
or portion of a document, or other matter, which it provides to the Postal
Regulatory Commission in a nonpublic annex under this section or pursuant to
subsection (d) contains information which is described in section 410(c) of
this title, or exempt from public disclosure under section 552(b) of title
5, the Postal Service shall, at the time of providing such matter to the
Commission, notify the Commission of its determination, in writing, and
describe with particularity the documents (or portions of documents) or
other matter for which confidentiality is sought and the reasons
therefor.
`(2) TREATMENT- Any information or other matter described in
paragraph (1) to which the Commission gains access under this section shall
be subject to paragraphs (2) and (3) of section 504(g) in the same way as if
the Commission had received notification with respect to such matter under
section 504(g)(1).'.
SEC. 205. COMPLAINTS; APPELLATE REVIEW AND ENFORCEMENT.
Chapter 36 of title 39, United States Code, is amended by striking
sections 3662 and 3663 and inserting the following:
`Sec. 3662. Rate and service complaints
`(a) IN GENERAL- Interested persons (including an officer of the
Postal Regulatory Commission representing the interests of the general public)
who believe the Postal Service is not operating in conformance with the
requirements of chapter 1, 4, or 6, or this chapter (or regulations
promulgated under any of those chapters) may lodge a complaint with the Postal
Regulatory Commission in such form and manner as the Commission may
prescribe.
`(b) PROMPT RESPONSE REQUIRED-
`(1) IN GENERAL- The Postal Regulatory Commission shall, within 90
days after receiving a complaint under subsection (a), either--
`(A) begin proceedings on such complaint; or
`(B) issue an order dismissing the complaint (together with a
statement of the reasons therefor).
`(2) TREATMENT OF COMPLAINTS NOT TIMELY ACTED ON- For purposes of
section 3663, any complaint under subsection (a) on which the Commission
fails to act in the time and manner required by paragraph (1) shall be
treated in the same way as if it had been dismissed pursuant to an order
issued by the Commission on the last day allowable for the issuance of such
order under paragraph (1).
`(c) ACTION REQUIRED IF COMPLAINT FOUND TO BE JUSTIFIED- If the Postal
Regulatory Commission finds the complaint to be justified, it shall order that
the Postal Service take such action as the Commission considers appropriate in
order to achieve compliance with the applicable requirements and to remedy the
effects of any noncompliance (such as ordering unlawful rates to be adjusted
to lawful levels, ordering the cancellation of market tests, ordering the
Postal Service to discontinue providing loss-making products, or requiring the
Postal Service to make up for revenue shortfalls in competitive
products).
`(d) SUSPENSION AUTHORITY- The Postal Regulatory Commission may
suspend implementation of rates or classifications under section 3632(b)(3)
for a limited period of time pending expedited proceedings under this section.
In evaluating whether circumstances warrant suspension, the Commission shall
consider factors such as (1) whether there is a substantial likelihood that
such rate or classification will violate the requirements of chapter 1, 4, or
6, or this chapter (or regulations promulgated under any of those chapters),
(2) whether any persons would suffer substantial injury, loss, or damage
absent a suspension, (3) whether the Postal Service or any other persons would
suffer substantial injury, loss, or damage under a suspension, and (4) the
public interest.
`(e) AUTHORITY TO ORDER FINES IN CASES OF DELIBERATE NONCOMPLIANCE- In
addition, in cases of deliberate noncompliance by the Postal Service with the
requirements of this title, the Postal Regulatory Commission may order, based
on the nature, circumstances, extent, and seriousness of the noncompliance, a
fine (in the amount specified by the Commission in its order) for each
incidence of noncompliance. Fines resulting from the provision of competitive
products shall be paid out of the Competitive Products Fund established in
section 2011. All receipts from fines imposed under this subsection shall be
deposited in the general fund of the Treasury of the United States.
`Sec. 3663. Appellate review
`A person adversely affected or aggrieved by a final order or decision
of the Postal Regulatory Commission may, within 30 days after such order or
decision becomes final, institute proceedings for review thereof by filing a
petition in the United States Court of Appeals for the District of Columbia.
The court shall review the order or decision in accordance with section 706 of
title 5, and chapter 158 and section 2112 of title 28, on the basis of the
record before the Commission. For purposes of this section, the term `person'
includes the Postal Service.
`Sec. 3664. Enforcement of orders
`The several district courts have jurisdiction specifically to
enforce, and to enjoin and restrain the Postal Service from violating, any
order issued by the Postal Regulatory Commission.'.
SEC. 206. WORKSHARE DISCOUNTS.
(a) IN GENERAL- Title 39, United States Code, is amended by adding
after section 3686 (as added by section 406) the following:
`Sec. 3687. Workshare discounts
`(a) IN GENERAL- As part of the regulations established under section
3622(a), the Postal Regulatory Commission shall establish rules for workshare
discounts that ensure that such discounts do not exceed the cost that the
Postal Service avoids as the result of workshare activity, unless--
`(A) associated with a new postal service, a change to an existing
postal service, or a new workshare initiative related to an existing
postal service; and
`(B) necessary to induce mailer behavior
that furthers the
economically efficient operation of the Postal Service and the portion of
the discount in excess of the cost that the Postal Service avoids as a
result of the workshare activity will be phased out over a limited period
of time;
`(2) a reduction in the discount
would--
`(A) lead to a loss of volume
in the affected category or subclass
of mail and reduce the aggregate contribution to the institutional costs
of the Postal Service from the category or subclass subject to the
discount below what it otherwise would have been if the discount had not
been reduced to costs avoided;
`(B) result in a further increase in the rates paid by mailers not
able to take advantage of the discount; or
`(C) impede the efficient operation of the Postal
Service;
`(3) the amount of the discount above costs avoided--
`(A) is necessary to mitigate rate
shock; and
`(B) will be phased out over
time; or
`(4) the discount is provided in connection with subclasses of mail
consisting exclusively of mail matter of educational, cultural, scientific,
or informational value.
`(b) REPORT- Whenever the Postal Service establishes or maintains a
workshare discount, the Postal Service shall, at the time it publishes the
workshare discount rate, submit to the Postal Regulatory Commission a detailed
report that--
`(1) explains the Postal Service's reasons for establishing or
maintaining the rate;
`(2) sets forth the data, economic analyses, and other information
relied on by the Postal Service to justify the rate; and
`(3) certifies that the discount will not adversely affect rates or
services provided to users of postal services who do not take advantage of
the discount rate.
`(c) DEFINITION- For purposes of this section, the term `workshare
discount' refers to rate discounts provided to mailers for the presorting,
prebarcoding, handling, or transportation of mail, as further defined by the
Postal Regulatory Commission under section 3622(a).'.
(b) CLERICAL AMENDMENT- The analysis for chapter 36 of title 39,
United States Code (as amended by section 207) is amended by adding after the
item relating to section 3686 the following:
`3687. Workshare discounts.'.
SEC. 207. CLERICAL AMENDMENT.
Chapter 36 of title 39, United States Code, is amended by striking the
heading and analysis for such chapter and inserting the following:
`CHAPTER 36--POSTAL RATES, CLASSES AND SERVICES
`SUBCHAPTER I--PROVISIONS RELATING TO MARKET-DOMINANT PRODUCTS
`3621. Applicability; definitions.
`3622. Modern rate regulation.
`3627. Adjusting free rates.
`3629. Reduced rates for voter registration purposes.
`SUBCHAPTER II--PROVISIONS RELATING TO COMPETITIVE PRODUCTS
`3631. Applicability; definitions and updates.
`3632. Action of the Governors.
`3633. Provisions applicable to rates for competitive
products.
`3634. Assumed Federal income tax on competitive
products.
`SUBCHAPTER III--PROVISIONS RELATING TO EXPERIMENTAL AND NEW
PRODUCTS
`3641. Market tests of experimental products.
`3642. New products and transfers of products between the
market-dominant and competitive categories of mail.
`SUBCHAPTER IV--REPORTING REQUIREMENTS AND RELATED PROVISIONS
`3651. Annual reports by the Commission.
`3652. Annual reports to the Commission.
`3653. Annual determination of compliance.
`3654. Additional financial reporting.
`SUBCHAPTER V--POSTAL SERVICES, COMPLAINTS, AND JUDICIAL
REVIEW
`3662. Rate and service complaints.
`3664. Enforcement of orders.
`SUBCHAPTER VI--GENERAL
`3682. Size and weight limits.
`3683. Uniform rates for books; films, other materials.
`3685. Filing of information relating to periodical
publications.
`3686. Bonus authority.'.
TITLE III--PROVISIONS RELATING TO FAIR
COMPETITION
SEC. 301. POSTAL SERVICE COMPETITIVE PRODUCTS FUND.
(a) PROVISIONS RELATING TO POSTAL SERVICE COMPETITIVE PRODUCTS FUND
AND RELATED MATTERS-
(1) IN GENERAL- Chapter 20 of title 39, United States Code, is
amended by adding at the end the following:
`Sec. 2011. Provisions relating to competitive products
`(a) There is established in the Treasury of the United States a
revolving fund, to be called the Postal Service Competitive Products Fund,
which shall be available to the Postal Service without fiscal year limitation
for the payment of--
`(1) costs attributable to competitive products; and
`(2) all other costs incurred by the Postal Service, to the extent
allocable to competitive products.
For purposes of this subsection, the term `costs attributable' has the
meaning given such term by section 3631.
`(b) There shall be deposited in the Competitive Products Fund,
subject to withdrawal by the Postal Service--
`(1) revenues from competitive products;
`(2) amounts received from obligations issued by the Postal Service
under subsection (e);
`(3) interest and dividends earned on investments of the Competitive
Products Fund; and
`(4) any other receipts of the Postal Service (including from the
sale of assets), to the extent allocable to competitive products.
`(c) If the Postal Service determines that the moneys of the
Competitive Products Fund are in excess of current needs, it may request the
investment of such amounts as it deems advisable by the Secretary of the
Treasury in obligations of, or obligations guaranteed by, the Government of
the United States, and, with the approval of the Secretary, in such other
obligations or securities as it deems appropriate.
`(d) With the approval of the Secretary of the Treasury, the Postal
Service may deposit moneys of the Competitive Products Fund in any Federal
Reserve bank, any depository for public funds, or in such other places and in
such manner as the Postal Service and the Secretary may mutually
agree.
`(e)(1) Subject to the limitations specified in section 2005(a), the
Postal Service is authorized to borrow money and to issue and sell such
obligations as it determines necessary to provide for competitive products and
deposit such amounts in the Competitive Products Fund. Any such borrowings by
the Postal Service shall be supported and serviced by the revenues and
receipts from competitive products and the assets related to the provision of
competitive products (as determined under subsection (h) or, for purposes of
any period before accounting practices and principles under subsection (h)
have been established and applied, the best information available from the
Postal Service, including the audited statements required by section 2008(e),
but in either case subject to paragraph (5)).
`(2) The Postal Service may enter into binding covenants with the
holders of such obligations, and with the trustee, if any, under any agreement
entered into in connection with the issuance thereof with respect to--
`(A) the establishment of reserve, sinking, and other
funds;
`(B) application and use of revenues and receipts of the Competitive
Products Fund;
`(C) stipulations concerning the subsequent issuance of obligations
or the execution of leases or lease purchases relating to properties of the
Postal Service; and
`(D) such other matters as the Postal Service considers necessary or
desirable to enhance the marketability of such obligations.
`(3) The obligations issued by the Postal Service under this
section--
`(A) shall be in such forms and denominations;
`(B) shall be sold at such times and in such amounts;
`(C) shall mature at such time or times;
`(D) shall be sold at such prices;
`(E) shall bear such rates of interest;
`(F) may be redeemable before maturity in such manner, at such
times, and at such redemption premiums;
`(G) may be entitled to such relative priorities of claim on the
assets of the Postal Service with respect to principal and interest
payments; and
`(H) shall be subject to such other terms and conditions;
as the Postal Service determines.
`(4) Obligations issued by the Postal Service under this
subsection--
`(A) shall be negotiable or nonnegotiable and bearer or registered
instruments, as specified therein and in any indenture or covenant relating
thereto;
`(B) shall contain a recital that they are issued under this
section, and such recital shall be conclusive evidence of the regularity of
the issuance and sale of such obligations and of their validity;
`(C) shall be lawful investments and may be accepted as security for
all fiduciary, trust, and public funds, the investment or deposit of which
shall be under the authority or control of any officer or agency of the
Government of the United States, and the Secretary of the Treasury or any
other officer or agency having authority over or control of any such
fiduciary, trust, or public funds, may at any time sell any of the
obligations of the Postal Service acquired under this section;
`(D) shall not be exempt either as to principal or interest from any
taxation now or hereafter imposed by any State or local taxing authority;
and
`(E) except as provided in section 2006(c) of this title, shall not
be obligations of, nor shall payment of the principal thereof or interest
thereon be guaranteed by, the Government of the United
States, and the
obligations shall so plainly state.
`(5) The Postal Service shall make payments of principal, or interest,
or both on obligations issued under this section out of revenues and receipts
from competitive products and assets related to the provision of competitive
products (as determined under subsection (h) or, for purposes of any period
before accounting practices and principles under subsection (h) have been
established and applied, the best information available, including the audited
statements required by section 2008(e)). For purposes of this subsection, the
total assets of the Competitive Products Fund shall be the greater
of--
`(A) the assets related to the provision of competitive products;
or
`(B) the percentage of total Postal Service revenues and receipts
from competitive products times the total assets of the Postal
Service.
`(f) The receipts and disbursements of the Competitive Products Fund
shall be accorded the same budgetary treatment as is accorded to receipts and
disbursements of the Postal Service Fund under section 2009a.
`(g) A judgment against the Postal Service or the Government of the
United States (or settlement of a claim) shall, to the extent that it arises
out of activities of the Postal Service in the provision of competitive
products, be paid out of the Competitive Products Fund.
`(h)(1) The Secretary of the Treasury, in consultation with the Postal
Service and an independent, certified public accounting firm and such other
advisors as the Secretary considers appropriate, shall develop recommendations
regarding--
`(A) the accounting practices and principles that should be followed
by the Postal Service with the objectives of (i) identifying and valuing the
assets and liabilities of the Postal Service associated with providing, and
the capital and operating costs incurred by the Postal Service in providing,
competitive products, and (ii) subject to subsection (e)(5), preventing the
subsidization of such products by market-dominant products; and
`(B) the substantive and procedural rules that should be followed in
determining the Postal Service's assumed Federal income tax on competitive
products income for any year (within the meaning of section
3634).
Such recommendations shall be submitted to the Postal Regulatory
Commission no earlier than 6 months, and no later than 12 months, after the
effective date of this section.
`(2)(A) Upon receiving the recommendations of the Secretary of the
Treasury under paragraph (1), the Commission shall give interested parties,
including the Postal Service, users of the mails, and an officer of the
Commission who shall be required to represent the interests of the general
public, an opportunity to present their views on those recommendations through
submission of written data, views, or arguments, with or without opportunity
for oral presentation, or in such other manner as the Commission considers
appropriate.
`(B) After due consideration of the views and other information
received under subparagraph (A), the Commission shall by rule--
`(i) provide for the establishment and application of the accounting
practices and principles which shall be followed by the Postal
Service;
`(ii) provide for the establishment and application of the
substantive and procedural rules described in paragraph (1)(B);
and
`(iii) provide for the submission by the Postal Service to the
Postal Regulatory Commission of annual and other periodic reports setting
forth such information as the Commission may require.
Final rules under this subparagraph shall be issued not later than 12
months after the date on which the Secretary of the Treasury makes his
submission to the Commission under paragraph (1) (or by such later date as the
Commission and the Postal Service may agree to). The Commission is authorized
to promulgate regulations revising such rules.
`(C) Reports described in subparagraph (B)(iii) shall be submitted at
such time and in such form, and shall include such information, as the
Commission by rule requires. The Commission may, on its own motion or on
request of an interested party, initiate proceedings (to be conducted in
accordance with such rules as the Commission shall prescribe) to improve the
quality, accuracy, or completeness of Postal Service data under such
subparagraph whenever it shall appear that--
`(i) the quality of the information furnished in those reports has
become significantly inaccurate or can be significantly improved;
or
`(ii) those revisions are, in the judgment of the Commission,
otherwise necessitated by the public interest.
`(D) A copy of each report described in subparagraph (B)(iii) shall
also be transmitted by the Postal Service to the Secretary of the Treasury and
the Inspector General of the United States Postal Service.
`(i) The Postal Service shall render an annual report to the Secretary
of the Treasury concerning the operation of the Competitive Products Fund, in
which it shall address such matters as risk limitations, reserve balances,
allocation or distribution of moneys, liquidity requirements, and measures to
safeguard against losses. A copy of its then most recent report under this
subsection shall be included with any other submission that it is required to
make to the Postal Regulatory Commission under section 3652(g).'.
(2) CLERICAL AMENDMENT- The analysis for chapter 20 of title 39,
United States Code, is amended by adding after the item relating to section
2010 the following:
`2011. Provisions relating to competitive products.'.
(b) TECHNICAL AND CONFORMING AMENDMENTS-
(1) DEFINITION- Section 2001 of title 39, United States Code, is
amended by striking `and' at the end of paragraph (1), by redesignating
paragraph (2) as paragraph (3), and by inserting after paragraph (1) the
following:
`(2) `Competitive Products Fund' means the Postal Service
Competitive Products Fund established by section 2011; and'.
(2) CAPITAL OF THE POSTAL SERVICE- Section 2002(b) of title 39,
United States Code, is amended by striking `Fund,' and inserting `Fund and
the balance in the Competitive Products Fund,'.
(A) PURPOSES FOR WHICH AVAILABLE- Section 2003(a) of title 39,
United States Code, is amended by striking `title.' and inserting `title
(other than any of the purposes, functions, or powers for which the
Competitive Products Fund is available).'.
(B) DEPOSITS- Section 2003(b) of title 39, United States Code, is
amended by striking `There' and inserting `Except as otherwise provided in
section 2011, there'.
(4) RELATIONSHIP BETWEEN THE TREASURY AND THE POSTAL SERVICE-
Section 2006 of title 39, United States Code, is amended--
(A) in subsection (a), by inserting `or section 2011' before `of
this title,';
(B) in subsection (b), by inserting `under section 2005' before
`in such amounts' in the first sentence and before `in excess of such
amount.' in the second sentence; and
(C) in subsection (c), by inserting `or section 2011(e)(4)(E)'
before `of this title,'.
SEC. 302. ASSUMED FEDERAL INCOME TAX ON COMPETITIVE PRODUCTS
INCOME.
Subchapter II of chapter 36 of title 39, United States Code, as
amended by section 202, is amended by adding at the end the following:
`Sec. 3634. Assumed Federal income tax on competitive products
income
`(a) DEFINITIONS- For purposes of this section--
`(1) the term `assumed Federal income tax on competitive products
income' means the net income tax that would be imposed by chapter 1 of the
Internal Revenue Code of 1986 on the Postal Service's assumed taxable income
from competitive products for the year; and
`(2) the term `assumed taxable income from competitive products',
with respect to a year, refers to the amount representing what would be the
taxable income of a corporation under the Internal Revenue Code of 1986 for
the year, if--
`(A) the only activities of such corporation were the activities
of the Postal Service allocable under section 2011(h) to competitive
products; and
`(B) the only assets held by such corporation were the assets of
the Postal Service allocable under section 2011(h) to such
activities.
`(b) COMPUTATION AND TRANSFER REQUIREMENTS- The Postal Service shall,
for each year beginning with the year in which occurs the deadline for the
Postal Service's first report to the Postal Regulatory Commission under
section 3652(a)--
`(1) compute its assumed Federal income tax on competitive products
income for such year; and
`(2) transfer from the Competitive Products Fund to the Postal
Service Fund the amount of that assumed tax.
`(c) DEADLINE FOR TRANSFERS- Any transfer required to be made under
this section for a year shall be due on or before the January 15th next
occurring after the close of such year.'.
SEC. 303. UNFAIR COMPETITION PROHIBITED.
(a) SPECIFIC LIMITATIONS- Chapter 4 of title 39, United States Code,
is amended by adding after section 404 the following:
`Sec. 404a. Specific Limitations
`(a) Except as specifically authorized by law, the Postal Service may
not--
`(1) establish any rule or regulation (including any standard) the
effect of which is to preclude competition or establish the terms of
competition unless the Postal Service demonstrates that the regulation does
not create an unfair competitive advantage for itself or any entity funded
(in whole or in part) by the Postal Service;
`(2) compel the disclosure, transfer, or licensing of intellectual
property to any third party (such as patents, copyrights, trademarks, trade
secrets, and proprietary information); or
`(3) obtain information from a person that provides (or seeks to
provide) any product, and then offer any product or service that uses or is
based in whole or in part on such information, without the consent of the
person providing that information, unless substantially the same information
is obtained (or obtainable) from an independent source or is otherwise
obtained (or obtainable).
`(b) The Postal Regulatory Commission shall prescribe regulations to
carry out this section.
`(c) Any party (including an officer of the Commission representing
the interests of the general public) who believes that the Postal Service has
violated this section may bring a complaint in accordance with section
3662.'.
(b) CONFORMING AMENDMENTS-
(1) GENERAL POWERS- Section 401 of title 39, United States Code, is
amended by striking `The' and inserting `Subject to the provisions of
section 404a, the'.
(2) SPECIFIC POWERS- Section 404(a) of title 39, United States Code,
is amended by striking `Without' and inserting `Subject to the provisions of
section 404a, but otherwise without'.
(c) CLERICAL AMENDMENT- The analysis for chapter 4 of title 39, United
States Code, is amended by inserting after the item relating to section 404
the following:
`404a. Specific limitations.'.
SEC. 304. SUITS BY AND AGAINST THE POSTAL SERVICE.
(a) IN GENERAL- Section 409 of title 39, United States Code, is
amended by striking subsections (d) and (e) and inserting the
following:
`(d)(1) For purposes of the provisions of law cited in paragraphs
(2)(A) and (2)(B), respectively, the Postal Service--
`(A) shall be considered to be a `person', as used in the provisions
of law involved; and
`(B) shall not be immune under any other doctrine of sovereign
immunity from suit in Federal court by any person for any violation of any
of those provisions of law by any officer or employee of the Postal
Service.
`(2) This subsection applies with respect to--
`(A) the Act of July 5, 1946 (commonly referred to as the `Trademark
Act of 1946' (15 U.S.C. 1051 and following)); and
`(B) the provisions of section 5 of the Federal Trade Commission Act
to the extent that such section 5 applies to unfair or deceptive acts or
practices.
`(e)(1) To the extent that the Postal Service, or other Federal agency
acting on behalf of or in concert with the Postal Service, engages in conduct
with respect to any competitive product, the Postal Service or other Federal
agency (as the case may be)--
`(A) shall not be immune under any doctrine of sovereign immunity
from suit in Federal court by any person for any violation of Federal law by
such agency or any officer or employee thereof; and
`(B) shall be considered to be a person (as defined in subsection
(a) of the first section of the Clayton
Act) for purposes of--
`(i) the antitrust laws (as defined in such subsection);
and
`(ii) section 5 of the Federal Trade Commission Act
to the extent
that such section 5 applies to unfair methods of
competition.
`(2) No damages, interest on damages, costs or attorney's fees may be
recovered, and no criminal liability may be imposed, under the antitrust laws
(as so defined) from any officer or employee of the Postal Service, or other
Federal agency acting on behalf of or in concert with the Postal Service,
acting in an official capacity.
`(3) This subsection shall not apply with respect to conduct occurring
before the date of the enactment of this subsection.
`(f)(1) Each building constructed or altered by the Postal Service
shall be constructed or altered, to the maximum extent feasible as determined
by the Postal Service, in compliance with one of the nationally recognized
model building codes and with other applicable nationally recognized
codes.
`(2) Each building constructed or altered by the Postal Service shall
be constructed or altered only after consideration of all requirements (other
than procedural requirements) of zoning laws, land use laws, and applicable
environmental laws of a State or subdivision of a State which would apply to
the building if it were not a building constructed or altered by an
establishment of the Government of the United States.
`(3) For purposes of meeting the requirements of paragraphs (1) and
(2) with respect to a building, the Postal Service shall--
`(A) in preparing plans for the building, consult with appropriate
officials of the State or political subdivision, or both, in which the
building will be located;
`(B) upon request, submit such plans in a timely manner to such
officials for review by such officials for a reasonable period of time not
exceeding 30 days; and
`(C) permit inspection by such officials during construction or
alteration of the building, in accordance with the customary schedule of
inspections for construction or alteration of buildings in the locality, if
such officials provide to the Postal Service--
`(i) a copy of such schedule before construction of the building
is begun; and
`(ii) reasonable notice of their intention to conduct any
inspection before conducting such inspection.
Nothing in this subsection shall impose an obligation on any State or
political subdivision to take any action under the preceding sentence, nor
shall anything in this subsection require the Postal Service or any of its
contractors to pay for any action taken by a State or political subdivision to
carry out this subsection (including reviewing plans, carrying out on-site
inspections, issuing building permits, and making recommendations).
`(4) Appropriate officials of a State or a political subdivision of a
State may make recommendations to the Postal Service concerning measures
necessary to meet the requirements of paragraphs (1) and (2). Such officials
may also make recommendations to the Postal Service concerning measures which
should be taken in the construction or alteration of the building to take into
account local conditions. The Postal Service shall give due consideration to
any such recommendations.
`(5) In addition to consulting with local and State officials under
paragraph (3), the Postal Service shall establish procedures for soliciting,
assessing, and incorporating local community input on real property and land
use decisions.
`(6) For purposes of this subsection, the term `State' includes the
District of Columbia, the Commonwealth of Puerto Rico, and a territory or
possession of the United States.
`(g)(1) Notwithstanding any other provision of law, legal
representation may not be furnished by the Department of Justice to the Postal
Service in any action, suit, or proceeding arising, in whole or in part, under
any of the following:
`(A) Subsection (d) or (e) of this section.
`(B) Subsection (f) or (g) of section 504 (relating to
administrative subpoenas by the Postal Regulatory Commission).
`(C) Section 3663 (relating to appellate review).
The Postal Service may, by contract or otherwise, employ attorneys to
obtain any legal representation that it is precluded from obtaining from the
Department of Justice under this paragraph.
`(2) In any circumstance not covered by paragraph (1), the Department
of Justice shall, under section 411, furnish the Postal Service such legal
representation as it may require, except that, with the prior consent of the
Attorney General, the Postal Service may, in any such circumstance, employ
attorneys by contract or otherwise to conduct litigation brought by or against
the Postal Service or its officers or employees in matters affecting the
Postal Service.
`(3)(A) In any action, suit, or proceeding in a court of the United
States arising in whole or in part under any of the provisions of law referred
to in subparagraph (B) or (C) of paragraph (1), and to which the Commission is
not otherwise a party, the Commission shall be permitted to appear as a party
on its own motion and as of right.
`(B) The Department of Justice shall, under such terms and conditions
as the Commission and the Attorney General shall consider appropriate, furnish
the Commission such legal representation as it may require in connection with
any such action, suit, or proceeding, except that, with the prior consent of
the Attorney General, the Commission may employ attorneys by contract or
otherwise for that purpose.
`(h) A judgment against the Government of the United States arising
out of activities of the Postal Service shall be paid by the Postal Service
out of any funds available to the Postal Service, subject to the restriction
specified in section 2011(g).'.
(b) TECHNICAL AMENDMENT- Section 409(a) of title 39, United States
Code, is amended by striking `Except as provided in section 3628 of this
title,' and inserting `Except as otherwise provided in this title,'.
SEC. 305. INTERNATIONAL POSTAL ARRANGEMENTS.
(a) IN GENERAL- Section 407 of title 39, United States Code, is
amended to read as follows:
`Sec. 407. International postal arrangements
`(a) It is the policy of the United States--
`(1) to promote and encourage communications between peoples by
efficient operation of international postal services and other international
delivery services for cultural, social, and economic purposes;
`(2) to promote and encourage unrestricted and undistorted
competition in the provision of international postal services and other
international delivery services, except where provision of such services by
private companies may be prohibited by law of the United States;
`(3) to promote and encourage a clear distinction between
governmental and operational responsibilities with respect to the provision
of international postal services and other international delivery services
by the Government of the United States and by intergovernmental
organizations of which the United States is a member; and
`(4) to participate in multilateral and bilateral agreements with
other countries to accomplish these objectives.
`(b)(1) The Secretary of State shall be responsible
for formulation,
coordination, and oversight of foreign policy related to international postal
services and other international delivery services, and shall have the power
to conclude treaties, conventions and amendments related to international
postal services and other international delivery services, except that the
Secretary may not conclude any treaty, convention, or other international
agreement (including those regulating international postal services) if such
treaty, convention, or agreement would, with respect to any competitive
product, grant an undue or unreasonable preference to the Postal Service, a
private provider of international postal or delivery services, or any other
person.
`(2) In carrying out the responsibilities specified in paragraph (1),
the Secretary of State shall exercise primary authority for the conduct of
foreign policy with respect to international postal services and international
delivery services, including the determination of United States positions and
the conduct of United States participation in negotiations with foreign
governments and international bodies. In exercising this authority, the
Secretary--
`(A) shall coordinate with other agencies as appropriate, and in
particular, shall give full consideration to the authority vested by law or
Executive order in the Postal Regulatory Commission, the Department of
Commerce, the Department of Transportation, and the Office of the United
States Trade Representative in this area;
`(B) shall maintain continuing liaison with other executive branch
agencies concerned with postal and delivery services;
`(C) shall maintain continuing liaison with the Committee on
Government Reform of the House of Representatives and the Committee on
Governmental Affairs of the Senate;
`(D) shall maintain appropriate liaison with both representatives of
the Postal Service and representatives of users and private providers of
international postal services and other international delivery services to
keep informed of their interests and problems, and to provide such
assistance as may be needed to ensure that matters of concern are promptly
considered by the Department of State or (if applicable, and to the extent
practicable) other executive branch agencies; and
`(E) shall assist in arranging meetings of such public sector
advisory groups as may be established to advise the Department of State and
other executive branch agencies in connection with international postal
services and international delivery services.
`(3) The Secretary of State shall establish an advisory committee
(within the meaning of the Federal Advisory Committee Act) to perform such
functions as the Secretary considers appropriate in connection with carrying
out subparagraphs (A) through (D) of paragraph (2).
`(c)(1) Before concluding any treaty, convention, or amendment that
establishes a rate or classification for a product subject to subchapter I of
chapter 36, the Secretary of State shall request the Postal Regulatory
Commission to submit a decision on whether such rate or classification is
consistent with the standards and criteria established by the Commission under
section 3622.
`(2) The Secretary shall ensure that each treaty, convention, or
amendment concluded under subsection (b) is consistent with a decision of the
Commission adopted under paragraph (1), except if, or to the extent, the
Secretary determines, by written order, that considerations of foreign policy
or national security require modification of the Commission's
decision.
`(d) Nothing in this section shall be considered to prevent the Postal
Service from entering into such commercial or operational contracts related to
providing international postal services and other international delivery
services as it deems appropriate, except that--
`(1) any such contract made with an agency of a foreign government
(whether under authority of this subsection or otherwise) shall be solely
contractual in nature and may not purport to be international law;
and
`(2) a copy of each such contract between the Postal Service and an
agency of a foreign government shall be transmitted to the Secretary of
State and the Postal Regulatory Commission not later than the effective date
of such contract.
`(e)(1) With respect to shipments of international mail that are
competitive products within the meaning of section 3631 that are exported or
imported by the Postal Service, the Bureau of Customs and Border Protection of
the Department of Homeland Security and other appropriate Federal agencies
shall apply the customs laws of the United States and all other laws relating
to the importation or exportation of such shipments in the same manner to both
shipments by the Postal Service and similar shipments by private
companies.
`(2) For purposes of this subsection, the term `private company' means
a private company substantially owned or controlled by persons who are
citizens of the United States.
`(3) In exercising the authority pursuant to subsection (b) to
conclude new treaties, conventions and amendments related to international
postal services and to renegotiate such treaties, conventions and amendments,
the Secretary of State shall, to the maximum extent practicable, take such
measures as are within the Secretary's control to encourage the governments of
other countries to make available to the Postal Service and private companies
a range of nondiscriminatory customs procedures that will fully meet the needs
of all types of American shippers. The Secretary of State shall consult with
the United States Trade Representative and the Commissioner of Customs,
Department of Homeland Security in carrying out this paragraph.
`(4) The provisions of this subsection shall take effect 6 months
after the date of the enactment of this subsection or such earlier date as the
Bureau of Customs and Border Protection of the Department of Homeland Security
may determine in writing.'.
(b) EFFECTIVE DATE- Notwithstanding any provision of the amendment
made by subsection (a), the authority of the United States Postal Service to
establish the rates of postage or other charges on mail matter conveyed
between the United States and other countries shall remain available to the
Postal Service until--
(1) with respect to market-dominant products, the date as of which
the regulations promulgated under section 3622 of title 39, United States
Code (as amended by section 201(a)) take effect; and
(2) with respect to competitive products, the date as of which the
regulations promulgated under section 3633 of title 39, United States Code
(as amended by section 202) take effect.
SEC. 306. REDESIGNATION.
Chapter 36 of title 39, United States Code (as in effect before the
amendment made by section 204(a)) is amended by striking the heading for
subchapter V and inserting the following:
`SUBCHAPTER VI--GENERAL'.
TITLE IV--GENERAL PROVISIONS
SEC. 401. QUALIFICATION REQUIREMENTS FOR GOVERNORS.
(a) IN GENERAL- Section 202(a) of title 39, United States Code, is
amended by striking `(a)' and inserting `(a)(1)' and by striking the fourth
sentence and inserting the following: `The Governors shall represent the
public interest generally, and at least 4 of the Governors shall be chosen
solely on the basis of their demonstrated ability in managing organizations or
corporations (in either the public or private sector) of substantial size; for
purposes of this sentence, an organization or corporation shall be considered
to be of substantial size if it employs at least 50,000
employees. The
Governors shall not be representatives of specific interests using the Postal
Service, and may be removed only for
cause.'.
(b) CONSULTATION REQUIREMENT- Section 202(a) of title 39, United
States Code, is amended by adding at the end the following:
`(2) In selecting the individuals described in paragraph (1) for
nomination for appointment to the position of Governor, the President should
consult with the Speaker of the House of Representatives, the minority leader
of the House of Representatives, the majority leader of the Senate, and the
minority leader of the Senate.'.
(c) RESTRICTION- Section 202(b) of title 39, United States Code, is
amended by striking `(b)' and inserting `(b)(1)', and by adding at the end the
following:
`(2)(A) Notwithstanding any other provision of this section, in the
case of the office of the Governor the term of which is the first one
scheduled to expire at least 4 months after the date of the enactment of this
paragraph--
`(i) such office may not, in the case of any person commencing
service after that expiration date, be filled by any person other than an
individual chosen from among persons nominated for such office with the
unanimous concurrence of all labor organizations described in section
206(a)(1); and
`(ii) instead of the term that would otherwise apply under the first
sentence of paragraph (1), the term of any person so appointed to such
office shall be 3 years.
`(B) Except as provided in subparagraph (A), an appointment under this
paragraph shall be made in conformance with all provisions of this section
that would otherwise apply.'.
(d) APPLICABILITY- The amendment made by subsection (a) shall not
affect the appointment or tenure of any person serving as a Governor of the
Board of Governors of the United States Postal Service pursuant to an
appointment made before the date of the enactment of this Act, or, except as
provided in the amendment made by subsection (c), any nomination made before
that date; however, when any such office becomes vacant, the appointment of
any person to fill that office shall be made in accordance with such
amendment. The requirement set forth in the fourth sentence of section
202(a)(1) of title 39, United States Code (as amended by subsection (a)) shall
be met beginning not later than 9 years after the date of the enactment of
this Act.
SEC. 402. OBLIGATIONS.
(a) PURPOSES FOR WHICH OBLIGATIONS MAY BE ISSUED- The first sentence
of section 2005(a)(1) of title 39, United States Code, is amended by striking
`title.' and inserting `title, other than any of the purposes for which the
corresponding authority is available to the Postal Service under section
2011.'.
(b) LIMITATION ON NET ANNUAL INCREASE IN OBLIGATIONS ISSUED FOR
CERTAIN PURPOSES- The third sentence of section 2005(a)(1) of title 39, United
States Code, is amended to read as follows: `In any one fiscal year, the net
increase in the amount of obligations outstanding issued for the purpose of
capital improvements and the net increase in the amount of obligations
outstanding issued for the purpose of defraying operating expenses of the
Postal Service shall not exceed a combined total of $3,000,000,000.' .
(c) LIMITATIONS ON OBLIGATIONS OUTSTANDING-
(1) IN GENERAL- Subsection (a) of section 2005 of title 39, United
States Code, is amended by adding at the end the following:
`(3) For purposes of applying the respective limitations under this
subsection, the aggregate amount of obligations issued by the Postal Service
which are outstanding as of any one time, and the net increase in the amount
of obligations outstanding issued by the Postal Service for the purpose of
capital improvements or for the purpose of defraying operating expenses of the
Postal Service in any fiscal year, shall be determined by aggregating the
relevant obligations issued by the Postal Service under this section with the
relevant obligations issued by the Postal Service under section
2011.'.
(2) CONFORMING AMENDMENT- The second sentence of section 2005(a)(1)
of title 39, United States Code, is amended by striking `any such
obligations' and inserting `obligations issued by the Postal Service which
may be'.
(d) AMOUNTS WHICH MAY BE PLEDGED, ETC-
(1) OBLIGATIONS TO WHICH PROVISIONS APPLY- The first sentence of
section 2005(b) of title 39, United States Code, is amended by striking
`such obligations,' and inserting `obligations issued by the Postal Service
under this section,'.
(2) ASSETS, REVENUES, AND RECEIPTS TO WHICH PROVISIONS APPLY-
Subsection (b) of section 2005 of title 39, United States Code, is amended
by striking `(b)' and inserting `(b)(1)', and by adding at the end the
following:
`(2) Notwithstanding any other provision of this section--
`(A) the authority to pledge assets of the Postal Service under this
subsection shall be available only to the extent that such assets are not
related to the provision of competitive products (as determined under
section 2011(h) or, for purposes of any period before accounting practices
and principles under section 2011(h) have been established and applied, the
best information available from the Postal Service, including the audited
statements required by section 2008(e)); and
`(B) any authority under this subsection relating to the pledging or
other use of revenues or receipts of the Postal Service shall be available
only to the extent that they are not revenues or receipts of the Competitive
Products Fund.'.
SEC. 403. PRIVATE CARRIAGE OF LETTERS.
(a) IN GENERAL- Section 601 of title 39, United States Code, is
amended by striking subsection (b) and inserting the following:
`(b) A letter may also be carried out of the mails
when--
`(1) the amount paid for the private carriage of the letter is at
least the amount equal to 6 times the rate then currently charged for the
1st ounce of a single-piece first class letter;
`(2) the letter weighs at least 12 1/2
ounces; or
`(3) such carriage is within the scope of services described by
regulations of the Postal Service (including, in particular, sections 310.1
and 320.2-320.8 of title 39 of the Code of Federal Regulations, as in effect
on July 1, 2004) that purport to permit private carriage by suspension of
the operation of this section (as then in effect).
`(c) Any regulations necessary to carry out this section shall be
promulgated by the Postal Regulatory Commission.'.
(b) EFFECTIVE DATE- This section shall take effect on the date as of
which the regulations promulgated under section 3633 of title 39, United
States Code (as amended by section 202) take effect.
SEC. 404. RULEMAKING AUTHORITY.
Paragraph (2) of section 401 of title 39, United States Code, is
amended to read as follows:
`(2) to adopt, amend, and repeal such rules and regulations, not
inconsistent with this title, as may be necessary in the execution of its
functions under this title and such other functions as may be assigned to
the Postal Service under any provisions of law outside of this
title;'.
SEC. 405. NONINTERFERENCE WITH COLLECTIVE BARGAINING
AGREEMENTS,
ETC.
(a) NONINTERFERENCE WITH COLLECTIVE BARGAINING AGREEMENTS- Except as
provided in section 407, nothing in this Act or any amendment made by this Act
shall restrict, expand, or otherwise affect any of the rights, privileges, or
benefits of either employees of or labor organizations representing employees
of the United States Postal Service under chapter 12 of title 39, United
States Code, the National Labor Relations Act, any handbook or manual
affecting employee labor relations within the United States Postal Service, or
any collective bargaining agreement.
(b) FREE MAILING PRIVILEGES CONTINUE UNCHANGED- Nothing in this Act or
any amendment made by this Act shall affect any free mailing privileges
accorded under section 3217 or sections 3403 through 3406 of title 39, United
States Code.
SEC. 406. BONUS AND COMPENSATION AUTHORITY.
Subchapter VI of chapter 36 of title 39, United States Code (as so
redesignated by section 306) is amended by adding at the end the
following:
`Sec. 3686. Bonus authority
`(a) IN GENERAL- The Postal Service may establish one or more programs
to provide bonuses or other rewards to officers and employees of the Postal
Service in senior executive or equivalent positions to achieve the objectives
of this chapter.
`(b) LIMITATION ON TOTAL COMPENSATION-
`(1) IN GENERAL- Under any such program, the Postal Service may
award a bonus or other reward in excess of the limitation set forth in the
last sentence of section 1003(a), if such program has been approved under
paragraph (2). Any such award or bonus may not cause the total compensation
of such officer or employee to exceed the total annual compensation payable
to the Vice President under section 104 of title 3 as of the end of the
calendar year in which the bonus or award is paid.
`(2) APPROVAL PROCESS- If the Postal Service wishes to have the
authority, under any program described in subsection (a), to award bonuses
or other rewards in excess of the limitation set forth in the last sentence
of section 1003(a)--
`(A) the Postal Service shall make an appropriate request to the
Board of Governors in such form and manner as the Board requires;
and
`(B) the Board of Governors shall approve any such request if it
certifies, for the annual appraisal period involved, that the performance
appraisal system for affected officers and employees of the Postal Service
(as designed and applied) makes meaningful distinctions based on relative
performance.
`(3) REVOCATION AUTHORITY- If the Board of Governors finds that a
performance appraisal system previously approved under paragraph (2)(B) does
not (as designed and applied) make meaningful distinctions based on relative
performance, the Board may revoke or suspend the authority of the Postal
Service to continue a program approved under paragraph (2) until such time
as appropriate corrective measures have, in the judgment of the Board, been
taken.
`(c) EXCEPTIONS FOR CRITICAL POSITIONS- Notwithstanding any other
provision of law, the Board of Governors may allow up to 12 officers or
employees of the Postal Service in critical senior executive or equivalent
positions to receive total compensation in an amount not to exceed 120 percent
of the total annual compensation payable to the Vice President under section
104 of title 3 as of the end of the calendar year in which such payment is
received. For each exception made under this subsection, the Board shall
provide written notification to the Director of the Office of Personnel
Management and the Congress within 30 days after the payment is made setting
forth the name of the officer or employee involved, the critical nature of his
or her duties and responsibilities, and the basis for determining that such
payment is warranted.
`(d) INFORMATION FOR INCLUSION IN COMPREHENSIVE STATEMENT- Included in
its comprehensive statement under section 2401(e) for any period shall
be--
`(1) the name of each person receiving a bonus or other payment
during such period which would not have been allowable but for the
provisions of subsection (b) or (c);
`(2) the amount of the bonus or other payment; and
`(3) the amount by which the limitation set forth in the last
sentence of section 1003(a) was exceeded as a result of such bonus or other
payment.
`(e) REGULATIONS- The Board of Governors may prescribe regulations for
the administration of this section.'.
SEC. 407. MEDIATION IN COLLECTIVE-BARGAINING DISPUTES.
(a) IN GENERAL- Section 1207(b) of title 39, United States Code, is
amended by striking all that follows `the Director of the Federal Mediation
and Conciliation Service shall' and inserting `, within 10 days appoint a
mediator of nationwide reputation and professional stature, and who is also a
member of the National Academy of Arbitrators. The parties shall cooperate
with the mediator in an effort to reach an agreement and shall meet and
negotiate in good faith at such times and places that the mediator, in
consultation with the parties, shall direct.'.
(b) PROVISIONS RELATING TO ARBITRATION BOARDS- Section 1207(c) of
title 39, United States Code, is amended--
(A) by striking `90' and inserting `60';
(B) by striking `not members of the factfinding panel,';
and
(C) by striking all that follows `shall be made' and inserting
`from a list of names provided by the Director. This list shall consist of
not less than 9 names of arbitrators of nationwide reputation and
professional stature, who are also members of the National Academy of
Arbitrators, and whom the Director has determined are available and
willing to serve.'; and
(2) in paragraph (3), by striking `factfinding panel' and inserting
`mediation'.
(c) CONFORMING AMENDMENT- Section 1207(d) of title 39, United States
Code, is amended by striking `factfinding panel will be established' and
inserting `mediator shall be appointed'.
TITLE V--ENHANCED REGULATORY COMMISSION
SEC. 501. REORGANIZATION AND MODIFICATION OF CERTAIN PROVISIONS RELATING
TO THE POSTAL REGULATORY COMMISSION.
(a) TRANSFER AND REDESIGNATION- Title 39, United States Code, is
amended--
(1) by inserting after chapter 4 the following:
`CHAPTER 5--POSTAL REGULATORY COMMISSION
`503. Rules; regulations; procedures.
`Sec. 501. Establishment
`The Postal Regulatory Commission is an independent establishment of
the executive branch of the Government of the United States.
`Sec. 502. Commissioners
`(a) The Postal Regulatory Commission is composed of 5 Commissioners,
appointed by the President, by and with the advice and consent of the Senate.
The Commissioners shall be chosen solely on the basis of their technical
qualifications, professional standing, and demonstrated expertise in
economics, accounting, law, or public administration, and may be removed by
the President only for cause. Each individual appointed to the Commission
shall have the qualifications and expertise necessary to carry out the
responsibilities accorded Commissioners under the Postal Accountability and
Enhancement Act. Not more than 3 of the Commissioners may be adherents of the
same political party.
`(b) A Commissioner may continue to serve after the expiration of his
term until his successor has qualified, except that a Commissioner may not so
continue to serve for more than 1 year after the date upon which his term
otherwise would expire under subsection (e).
`(c) One of the Commissioners shall be designated as Chairman by, and
shall serve in the position of Chairman at the pleasure of, the
President.
`(d) The Commissioners shall by majority vote designate a Vice
Chairman of the Commission. The Vice Chairman shall act as Chairman of the
Commission in the absence of the Chairman.
`(e) The Commissioners shall serve for terms of 6
years.';
(2) in subchapter I of chapter 36 (as in effect before the amendment
made by section 201(c)), by striking the heading for such subchapter I and
all that follows through section 3602; and
(3) by redesignating sections 3603 and 3604 as sections 503 and 504,
respectively, and transferring such sections to the end of chapter 5 (as
inserted by paragraph (1)).
(b) DETERMINATIONS- Section 503 of title 39, United States Code, as so
redesignated by subsection (a)(3), is amended by adding at the end the
following: `Such rules shall include procedures which balance, inter alia, the
need for protecting due process rights and ensuring expeditious
decision-making.'.
(c) APPLICABILITY- The amendment made by subsection (a)(1) shall not
affect the appointment or tenure of any person serving as a Commissioner on
the Postal Regulatory Commission (as so redesignated by section 504) pursuant
to an appointment made before the date of the enactment of this Act or any
nomination made before that date, but, when any such office becomes vacant,
the appointment of any person to fill that office shall be made in accordance
with such amendment.
(d) CLERICAL AMENDMENT- The analysis for part I of title 39, United
States Code, is amended by inserting after the item relating to chapter 4 the
following:
--501'.
SEC. 502. AUTHORITY FOR POSTAL REGULATORY COMMISSION TO ISSUE
SUBPOENAS.
Section 504 of title 39, United States Code (as so redesignated by
section 501) is amended by adding at the end the following:
`(f)(1) Any Commissioner of the Postal Regulatory Commission, any
administrative law judge appointed by the Commission under section 3105 of
title 5, and any employee of the Commission designated by the Commission may
administer oaths, examine witnesses, take depositions, and receive
evidence.
`(2) The Chairman of the Commission, any Commissioner designated by
the Chairman, and any administrative law judge appointed by the Commission
under section 3105 of title 5 may, with respect to any proceeding conducted by
the Commission under this title--
`(A) issue subpoenas requiring the attendance and presentation of
testimony by, or the production of documentary or other evidence in the
possession of, any covered person; and
`(B) order the taking of depositions and responses to written
interrogatories by a covered person.
The written concurrence of a majority of the Commissioners then
holding office shall, with respect to each subpoena under subparagraph (A), be
required in advance of its issuance.
`(3) In the case of contumacy or failure to obey a subpoena issued
under this subsection, upon application by the Commission, the district court
of the United States for the district in which the person to whom the subpoena
is addressed resides or is served may issue an order requiring such person to
appear at any designated place to testify or produce documentary or other
evidence. Any failure to obey the order of the court may be punished by the
court as a contempt thereof.
`(4) For purposes of this subsection, the term `covered person' means
an officer, employee, agent, or contractor of the Postal Service.
`(g)(1) If the Postal Service determines that any document or other
matter it provides to the Postal Regulatory Commission pursuant to a subpoena
issued under subsection (f), or otherwise at the request of the Commission in
connection with any proceeding or other purpose under this title, contains
information which is described in section 410(c) of this title, or exempt from
public disclosure under section 552(b) of title 5, the Postal Service shall,
at the time of providing such matter to the Commission, notify the Commission,
in writing, of its determination (and the reasons therefor).
`(2) Except as provided in paragraph (3), no officer or employee of
the Commission may, with respect to any information as to which the Commission
has been notified under paragraph (1)--
`(A) use such information for purposes other than the purposes for
which it is supplied; or
`(B) permit anyone who is not an officer or employee of the
Commission to have access to any such information.
`(3)(A) Paragraph (2) shall not prevent the Commission from publicly
disclosing relevant information in furtherance of its duties under this title
if the Commission has adopted regulations under section 553 of title 5 that
establish a procedure for according appropriate confidentiality to information
identified by the Postal Service under paragraph (1). In determining the
appropriate degree of confidentiality to be accorded information identified by
the Postal Service under paragraph (1), the Commission shall balance the
nature and extent of the likely commercial injury to the Postal Service
against the public interest, as required by section 101(d) of this title for
financial transparency of a government establishment.
`(B) Paragraph (2) shall not prevent information from being furnished
under any process of discovery established under this title in connection with
a proceeding under this title. The Commission shall, by regulations based on
rule 26(c) of the Federal Rules of Civil Procedure, establish procedures for
ensuring appropriate confidentiality for any information furnished under the
preceding sentence.'.
SEC. 503. APPROPRIATIONS FOR THE POSTAL REGULATORY COMMISSION.
(a) AUTHORIZATION OF APPROPRIATIONS- Subsection (d) of section 504 of
title 39, United States Code (as so redesignated by section 501) is amended to
read as follows:
`(d) There are authorized to be appropriated, out of the Postal
Service Fund, such sums as may be necessary for the Postal Regulatory
Commission. In requesting an appropriation under this subsection for a fiscal
year, the Commission shall prepare and submit to the Congress under section
2009 a budget of the Commission's expenses, including expenses for facilities,
supplies, compensation, and employee benefits.'.
(1) IN GENERAL- The next to last sentence of section 2009 of title
39, United States Code, is amended to read as follows: `The budget program
shall also include separate statements of the amounts which (1) the Postal
Service requests to be appropriated under subsections (b) and (c) of section
2401, (2) the Office of Inspector General of the United States Postal
Service requests to be appropriated, out of the Postal Service Fund, under
section 8L(e) of the Inspector General Act of 1978, and (3) the Postal
Regulatory Commission requests to be appropriated, out of the Postal Service
Fund, under section 504(d) of this title.'.
(2) CONFORMING AMENDMENT- Section 2003(e)(1) of title 39, United
States Code, is amended by striking the first sentence and inserting the
following: `The Fund shall be available for the payment of (A) all expenses
incurred by the Postal Service in carrying out its functions as provided by
law, subject to the same limitation as set forth in the parenthetical matter
under subsection (a); (B) all expenses of the Postal Regulatory Commission,
subject to the availability of amounts appropriated pursuant to section
504(d); and (C) all expenses of the Office of Inspector General, subject to
the availability of amounts appropriated pursuant to section 8L(e) of the
Inspector General Act of 1978.'.
(1) IN GENERAL- The amendments made by this section shall apply with
respect to fiscal years beginning on or after October 1, 2005.
(2) SAVINGS PROVISION- The provisions of title 39, United States
Code, that are amended by this section shall, for purposes of any fiscal
year before the first fiscal year to which the amendments made by this
section apply, continue to apply in the same way as if this section had
never been enacted.
SEC. 504. REDESIGNATION OF THE POSTAL RATE COMMISSION.
(a) AMENDMENTS TO TITLE 39, UNITED STATES CODE- Title 39, United
States Code, is amended in sections 404, 503-504 (as so redesignated by
section 501), 1001, and 1002 by striking `Postal Rate Commission' each place
it appears and inserting `Postal Regulatory Commission'.
(b) AMENDMENTS TO TITLE 5, UNITED STATES CODE- Title 5, United States
Code, is amended in sections 104(1), 306(f), 2104(b), 3371(3), 5314 (in the
item relating to Chairman, Postal Rate Commission), 5315 (in the item relating
to Members, Postal Rate Commission), 5514(a)(5)(B), 7342(a)(1)(A),
7511(a)(1)(B)(ii), 8402(c)(1), 8423(b)(1)(B), and 8474(c)(4) by striking
`Postal Rate Commission' and inserting `Postal Regulatory Commission'.
(c) AMENDMENT TO THE ETHICS IN GOVERNMENT ACT OF 1978- Section
101(f)(6) of the Ethics in Government Act of 1978 (5 U.S.C. App.) is amended
by striking `Postal Rate Commission' and inserting `Postal Regulatory
Commission'.
(d) AMENDMENT TO THE REHABILITATION ACT OF 1973- Section 501(b) of the
Rehabilitation Act of 1973 (29 U.S.C. 791(b)) is amended by striking `Postal
Rate Office' and inserting `Postal Regulatory Commission'.
(e) AMENDMENT TO TITLE 44, UNITED STATES CODE- Section 3502(5) of
title 44, United States Code, is amended by striking `Postal Rate Commission'
and inserting `Postal Regulatory Commission'.
(f) OTHER REFERENCES- Whenever a reference is made in any provision of
law (other than this Act or a provision of law amended by this Act),
regulation, rule, document, or other record of the United States to the Postal
Rate Commission, such reference shall be considered a reference to the Postal
Regulatory Commission.
SEC. 505. OFFICER OF THE POSTAL REGULATORY COMMISSION REPRESENTING THE
GENERAL PUBLIC.
(a) IN GENERAL- Chapter 5 of title 39, United States Code (as added by
this Act) is amended by adding after section 504 the following:
`Sec. 505. Officer of the Postal Regulatory Commission representing the
general public
`The Postal Regulatory Commission shall designate an officer of the
Postal Regulatory Commission in all public proceedings (such as developing
rules, regulations, and procedures) who shall represent the interests of the
general public.'.
(b) CLERICAL AMENDMENT- The analysis for chapter 5 of title 39, United
States Code (as amended by section 501(a)(1)) is amended by adding after the
item relating to section 504 the following:
`505. Officer of the Postal Regulatory Commission representing the
general public.'.
TITLE VI--INSPECTORS GENERAL
SEC. 601. INSPECTOR GENERAL OF THE POSTAL REGULATORY
COMMISSION.
(a) IN GENERAL- Paragraph (2) of section 8G(a) of the Inspector
General Act of 1978 is amended by inserting `the Postal Regulatory
Commission,' after `the United States International Trade
Commission,'.
(b) ADMINISTRATION- Section 504 of title 39, United States Code (as so
redesignated by section 501) is amended by adding after subsection (g) (as
added by section 502) the following:
`(h)(1) Notwithstanding any other provision of this title or of the
Inspector General Act of 1978, the authority to select, appoint, and employ
officers and employees of the Office of Inspector General of the Postal
Regulatory Commission, and to obtain any temporary or intermittent services of
experts or consultants (or an organization of experts or consultants) for such
Office, shall reside with the Inspector General of the Postal Regulatory
Commission.
`(2) Except as provided in paragraph (1), any exercise of authority
under this subsection shall, to the extent practicable, be in conformance with
the applicable laws and regulations that govern selections, appointments and
employment, and the obtaining of any such temporary or intermittent services,
within the Postal Regulatory Commission.'.
(c) DEADLINE- No later than 180 days after the date of the enactment
of this Act--
(1) the first Inspector General of the Postal Regulatory Commission
shall be appointed; and
(2) the Office of Inspector General of the Postal Regulatory
Commission shall be established.
SEC. 602. INSPECTOR GENERAL OF THE UNITED STATES POSTAL SERVICE TO BE
APPOINTED BY THE PRESIDENT.
(a) DEFINITIONAL AMENDMENTS TO THE INSPECTOR GENERAL ACT OF 1978-
Section 11 of the Inspector General Act of 1978 is amended--
(A) by striking `or' before `the President of the Export-Import
Bank;' and
(B) by inserting `or the Governors of the United States Postal
Service (within the meaning of section 102(3) of title 39, United States
Code);' after `the President of the Export-Import Bank;';
and
(A) by striking `or' before `the Export-Import Bank,';
and
(B) by inserting `or the United States Postal Service,' after `the
Export-Import Bank,'.
(b) SPECIAL PROVISIONS CONCERNING THE UNITED STATES POSTAL SERVICE-
(1) IN GENERAL- The Inspector General Act of 1978 is amended by
inserting after section 8K the following:
`SPECIAL PROVISIONS CONCERNING THE UNITED STATES POSTAL
SERVICE
`SEC. 8L. (a) In carrying out the duties and responsibilities
specified in this Act, the Inspector General of the United States Postal
Service shall have oversight responsibility for all activities of the Postal
Inspection Service, including any internal investigation performed by the
Postal Inspection Service. The Chief Postal Inspector shall promptly report
any significant activities being carried out by the Postal Inspection Service
to such Inspector General. The Postmaster General shall promptly report to
such Inspector General all allegations of theft, fraud, or misconduct by
Postal Service officers or employees, and entities or individuals doing
business with the Postal Service.
`(b) In the case of any report that the Governors of the United States
Postal Service (within the meaning of section 102(3) of title 39, United
States Code) are required to transmit under the second sentence of section
5(d), such sentence shall be applied by deeming the term `appropriate
committees of Congress' to mean the Committee on Government Reform of the
House of Representatives, the Committee on Governmental Affairs of the Senate,
and such other committees or subcommittees of Congress as may be
appropriate.
`(c) Notwithstanding any provision of paragraph (7) or (8) of section
6(a), the Inspector General of the United States Postal Service may select,
appoint, and employ such officers and employees as may be necessary for
carrying out the functions, powers, and duties of the Office of Inspector
General and to obtain the temporary or intermittent services of experts or
consultants or an organization of experts or consultants, subject to the
applicable laws and regulations that govern such selections, appointments, and
employment, and the obtaining of such services, within the United States
Postal Service.
`(d) Nothing in this Act shall restrict, eliminate, or otherwise
adversely affect any of the rights, privileges, or benefits of employees of
the United States Postal Service, or labor organizations representing
employees of the United States Postal Service, under chapter 12 of title 39,
United States Code, the National Labor Relations Act, any handbook or manual
affecting employee labor relations with the United States Postal Service, or
any collective bargaining agreement.
`(e) There are authorized to be appropriated, out of the Postal
Service Fund, such sums as may be necessary for the Office of Inspector
General of the United States Postal Service.'.
(2) RELATED PROVISIONS- For certain related provisions, see section
503(b).
(c) EXERCISE OF CERTAIN POWERS- Section 6(e)(3) of the Inspector
General Act of 1978 is amended--
(1) by striking `and the' before `Tennessee Valley Authority';
and
(2) by inserting `, and United States Postal Service' after
`Tennessee Valley Authority'.
(1) ADDITIONAL PROVISIONS APPLICABLE- Section 410(b)(5) of title 39,
United States Code, is amended--
(A) in subparagraph (A), by striking `and' after the semicolon;
and
(B) by adding after subparagraph (B) the following:
`(C) the Anti-Kickback Act of 1986 (41 U.S.C. 51 and following),
other than subsections (a) and (b) of 7 and section 8 of that Act;
and
`(D) section 315 of the Federal Property and Administrative
Services Act of 1949 (41 U.S.C. 265) (relating to protecting contractor
employees from reprisal for disclosure of certain
information);'.
(2) REGULATIONS ON ALLOWABLE COSTS- Section 410 of title 39, United
States Code, is amended by adding at the end the following:
`(e) The Postal Service shall develop and issue purchasing regulations
that prohibit contract costs not allowable under section 5.2.5 of the United
States Postal Service Procurement Manual (Publication 41), as in effect on
July 12, 1995.'.
(e) REPORTS- Section 3013 of title 39, United States Code, is amended
by striking `Postmaster General' each place it appears and inserting `Chief
Postal Inspector'.
(f) TECHNICAL AND CONFORMING AMENDMENTS-
(1) RELATING TO THE INSPECTOR GENERAL ACT OF 1978- (A) Subsection
(a) of section 8G of the Inspector General Act of 1978 (as amended by
section 601(a)) is further amended--
(i) in paragraph (2), by striking `the Postal Regulatory
Commission, and the United States Postal Service;' and inserting `and the
Postal Regulatory Commission;' and
(ii) in paragraph (4), by striking `except that' and all that
follows through `Code);' and inserting `except that, with respect to the
National Science Foundation, such term means the National Science
Board;'.
(B)(i) Subsection (f) of section 8G of such Act is
repealed.
(ii) Subsection (c) of section 8G of such Act is amended by striking
`Except as provided under subsection (f) of this section, the' and inserting
`The'.
(C) Section 8J of such Act is amended by striking the matter after
`8D,' and before `of this Act' and inserting `8E, 8F, 8H, or 8L'.
(2) RELATING TO TITLE 39, UNITED STATES CODE- (A) Subsection (e) of
section 202 of title 39, United States Code, is repealed.
(B) Paragraph (4) of section 102 of such title 39 (as amended by
section 101) is amended to read as follows:
`(4) `Inspector General' means the Inspector General of the United
States Postal Service, appointed under section 3(a) of the Inspector General
Act of 1978;'.
(C) The first sentence of section 1003(a) of such title 39 is
amended by striking `chapters 2 and 12 of this title, section 8G of the
Inspector General Act of 1978, or other provision of law,' and inserting
`chapter 2 or 12 of this title, subsection (b) or (c) of this section, or
any other provision of law,'.
(D) Section 1003(b) of such title 39 is amended by striking
`respective' and inserting `other'.
(E) Section 1003(c) of such title 39 is amended by striking
`included' and inserting `includes'.
(3) RELATING TO THE ENERGY POLICY ACT OF 1992- Section 160(a) of the
Energy Policy Act of 1992 (42 U.S.C. 8262f(a)) is amended (in the matter
before paragraph (1)) by striking all that follows `(5 U.S.C. App.)' and
before `shall--'.
(g) EFFECTIVE DATE; TRANSITION PROVISIONS-
(1) EFFECTIVE DATE- Except as provided in paragraph (2) or
subsection (c), this section and the amendments made by this section shall
take effect on the date of the enactment of this Act.
(2) TRANSITION PROVISIONS-
(A) PRESIDENTIAL APPOINTMENT AUTHORITY AVAILABLE IMMEDIATELY- The
authority to appoint an Inspector General of the United States Postal
Service in accordance with the amendments made by this section shall be
available as of the effective date of this section.
(B) CONTINUATION IN OFFICE- Pending the appointment of an
Inspector General of the United States Postal Service in accordance with
the amendments made by this section, the individual serving as the
Inspector General of the United States Postal Service on the day before
the effective date of this section may continue to serve--
(i) in accordance with applicable provisions of the Inspector
General Act of 1978 and (except as provided in clause (ii)) of title 39,
United States Code, as last in effect before the effective date of this
Act; but
(ii) subject to the provisions of such title 39 as amended by
subsection (e) of this section (deeming any reference to the `Inspector
General' in such provisions, as so amended, to refer to the individual
continuing to serve under authority of this subparagraph) and
subparagraph (C).
(C) AUTHORIZATION OF APPROPRIATIONS-
(i) IN GENERAL- Notwithstanding any other provision of this
subsection, section 8L(e) of the Inspector General Act of 1978 (as
amended by this section) shall be effective for purposes of fiscal years
beginning on or after October 1, 2005.
(ii) SAVINGS PROVISION- For purposes of the fiscal year ending
on September 30, 2005, funding for the Office of Inspector General of
the United States Postal Service shall be made available in the same
manner as if this Act had never been enacted.
(D) ELIGIBILITY OF PRIOR INSPECTOR GENERAL- Nothing in this Act
shall prevent any individual who has served as Inspector General of the
United States Postal Service at any time before the date of the enactment
of this Act from being appointed to that position pursuant to the
amendments made by this section.
TITLE VII--EVALUATIONS
SEC. 701. UNIVERSAL POSTAL SERVICE STUDY.
(a) REPORT BY THE POSTAL SERVICE- The United States Postal Service
shall, within 12 months after the date of the enactment of this Act, submit to
the President, the Congress, and the Postal Regulatory Commission, a written
report on universal postal service in the United States (hereinafter in this
section referred to as `universal service'). Such report shall include at
least the following:
(1) A comprehensive review of the history and development of
universal service, including how the scope and standards of universal
service have evolved over time.
(2) The scope and standards of universal service provided under
current law (including sections 101 and 403 of title 39, United States Code)
and current rules, regulations, policy statements, and practices of the
Postal Service.
(3) A description of any geographic areas, populations, communities,
organizations, or other groups or entities not currently covered by
universal service or that are covered but that are receiving services
deficient in scope or quality or both.
(4) The scope and standards of universal service likely to be
required in the future in order to meet the needs and expectations of the
American public, including all types of mail users, based on such
assumptions or alternative sets of assumptions as the Postal Service
considers plausible.
(5) Such recommendations as the Postal Service considers
appropriate.
(b) REPORT BY THE POSTAL REGULATORY COMMISSION- The Postal Regulatory
Commission shall, within 12 months after receiving the report of the Postal
Service under subsection (a), submit to the President and the Congress a
written report evaluating the report of the Postal Service. The report of the
Commission shall include at least the following:
(1) Such comments and observations relating to the matters addressed
in the Postal Service's report as the Commission considers
appropriate.
(2) An estimate of the cost attributable to the obligation to
provide universal service under prior and current law,
respectively.
(3) An estimate of the likely cost of fulfilling the obligation to
provide universal service under--
(A) the assumptions or respective sets of assumptions of the
Postal Service described in subsection (a)(4); and
(B) such other assumptions or sets of assumptions as the
Commission considers plausible.
(4) Such additional topics and recommendations as the Commission
considers appropriate.
(c) CONSULTATION- In preparing the reports required by this section,
the Postal Service and the Postal Regulatory Commission--
(1) shall consult with each other, other Federal agencies, users of
the mails, enterprises in the private sector engaged in the delivery of
mail, and the general public; and
(2) shall address in their respective reports any written comments
received under this section.
(d) CLARIFYING PROVISION- Nothing in this section shall be considered
to relate to any services that are not postal services (within the meaning of
section 102 of title 39, United States Code, as amended by section
101).
SEC. 702. ASSESSMENTS OF RATEMAKING, CLASSIFICATION, AND OTHER
PROVISIONS.
(a) IN GENERAL- The Postal Regulatory Commission shall, at least every
5 years, submit a report to the President and the Congress concerning--
(1) the operation of the amendments made by the Postal
Accountability and Enhancement Act; and
(2) recommendations for any legislation or other measures necessary
to improve the effectiveness or efficiency of the postal laws of the United
States.
(b) POSTAL SERVICE VIEWS- A report under this section shall be
submitted only after reasonable opportunity has been afforded to the Postal
Service to review such report and to submit written comments thereon. Any
comments timely received from the Postal Service under the preceding sentence
shall be attached to the report submitted under subsection (a).
(c) SPECIFIC INFORMATION REQUIRED- The Postal Regulatory Commission
shall include, as part of at least its first report under subsection (a), the
following:
(1) COST-COVERAGE REQUIREMENT RELATING TO COMPETITIVE PRODUCTS
COLLECTIVELY- With respect to section 3633 of title 39, United States Code
(as amended by this Act)--
(A) a description of how such section has operated;
and
(B) recommendations as to whether or not such section should
remain in effect and, if so, any suggestions as to how it might be
improved.
(2) COMPETITIVE PRODUCTS FUND- With respect to the Postal Service
Competitive Products Fund (under section 2011 of title 39, United States
Code, as amended by section 301), in consultation with the Secretary of the
Treasury--
(A) a description of how such Fund has operated;
(B) any suggestions as to how the operation of such Fund might be
improved; and
(C) a description and assessment of alternative accounting or
financing mechanisms that might be used to achieve the objectives of such
Fund.
(3) ASSUMED FEDERAL INCOME TAX ON COMPETITIVE PRODUCTS FUND- With
respect to section 3634 of title 39, United States Code (as amended by this
Act), in consultation with the Secretary of the Treasury--
(A) a description of how such section has operated;
and
(B) recommendations as to whether or not such section should
remain in effect and, if so, any suggestions as to how it might be
improved.
SEC. 703. STUDY ON EQUAL APPLICATION OF LAWS TO COMPETITIVE
PRODUCTS.
(a) IN GENERAL- The Federal Trade Commission shall prepare and submit
to the President, the Congress, and the Postal Regulatory Commission, within 1
year after the date of the enactment of this Act, a comprehensive report
identifying Federal and State laws that apply differently to the United States
Postal Service with respect to the competitive category of mail (within the
meaning of section 102 of title 39, United States Code, as amended by section
101) and private companies providing similar products.
(b) RECOMMENDATIONS; ADJUSTMENTS- The Federal Trade Commission shall
include such recommendations as it considers appropriate for bringing such
legal differences to an end and, in the interim, to account under section
3633, for the net economic effects provided by those laws.
(c) CONSULTATION- In preparing its report, the Federal Trade
Commission shall consult with the United States Postal Service, the Postal
Regulatory Commission, other Federal agencies, mailers, private companies that
provide delivery services, and the general public, and shall append to such
report any written comments received under this subsection.
(d) COMPETITIVE PRODUCT RATE REGULATION- The Postal Regulatory
Commission shall take into account the recommendations of the Federal Trade
Commission, and subsequent events that affect the continuing validity of the
estimate of the net economic effect, in promulgating or revising the
regulations required by section 3633 of title 39, United States Code.
SEC. 704. GREATER DIVERSITY IN POSTAL SERVICE EXECUTIVE AND
ADMINISTRATIVE SCHEDULE MANAGEMENT POSITIONS.
(a) STUDY- The Board of Governors shall study and, within 1 year after
the date of the enactment of this Act, submit to the President and Congress a
report concerning the extent to which women and minorities are represented in
supervisory and management positions within the United States Postal Service.
Any data included in the report shall be presented in the aggregate and by pay
level.
(b) PERFORMANCE EVALUATIONS- The United States Postal Service shall,
as soon as practicable, take such measures as may be necessary to ensure that,
for purposes of conducting performance appraisals of supervisory or managerial
employees, appropriate consideration shall be given to meeting affirmative
action goals, achieving equal employment opportunity requirements, and
implementation of plans designed to achieve greater diversity in the
workforce.
SEC. 705. PLAN FOR ASSISTING DISPLACED WORKERS.
(a) PLAN- The United States Postal Service shall, before the deadline
specified in subsection (b), develop and be prepared to implement, whenever
necessary, a comprehensive plan under which reemployment assistance shall be
afforded to employees displaced as a result of the automation or privatization
of any of its functions.
(b) REPORT- Not later than 1 year after the date of the enactment of
this Act, the United States Postal Service shall submit to the Board of
Governors and to Congress a written report describing its plan under this
section.
SEC. 706. CONTRACTS WITH WOMEN, MINORITIES, AND SMALL
BUSINESSES.
The Board of Governors shall study and, within 1 year after the date
of the enactment of this Act, submit to the President and the Congress a
report concerning the number and value of contracts and subcontracts the
Postal Service has entered into with women, minorities, and small businesses.
SEC. 707. RATES FOR PERIODICALS.
(a) IN GENERAL- The United States Postal Service, acting jointly with
the Postal Regulatory Commission, shall study and submit to the President and
Congress a report concerning--
(1) the quality, accuracy, and completeness of the information used
by the Postal Service in determining the direct and indirect postal costs
attributable to periodicals; and
(2) any opportunities that might exist for improving efficiencies in
the collection, handling, transportation, or delivery of periodicals by the
Postal Service, including any pricing incentives for mailers that might be
appropriate.
(b) RECOMMENDATIONS- The report shall include recommendations for any
administrative action or legislation that might be appropriate.
SEC. 708. ASSESSMENT OF CERTAIN RATE DEFICIENCIES.
(a) IN GENERAL- Within 12 months after the date of the enactment of
this Act, the Office of Inspector General of the United States Postal Service
shall study and submit to the President, the Congress, and the United States
Postal Service, a report concerning the administration of section 3626(k) of
title 39, United States Code.
(b) SPECIFIC REQUIREMENTS- The study and report shall specifically
address the adequacy and fairness of the process by which assessments under
section 3626(k) of title 39, United States Code, are determined and
appealable, including--
(1) whether the Postal Regulatory Commission or any other body
outside the Postal Service should be assigned a role; and
(2) whether a statute of limitations should be established for the
commencement of proceedings by the Postal Service thereunder.
SEC. 709. NETWORK OPTIMIZATION.
(a) IN GENERAL- The Postal Service shall, within 90 days after the end
of each fiscal year, prepare and submit to the Postal Regulatory Commission,
the Congress, and the Board of Governors a written report on the postal
processing, transportation, and distribution networks. Such report shall
include at least the following:
(1) An account of actions taken during the preceding fiscal year to
improve the efficiency and effectiveness of the processing, transportation,
and distribution networks, while preserving the timely delivery of postal
services.
(A) actions taken to identify any excess capacity within the
processing, transportation, and distribution networks; and
(B) actions taken to implement savings through realignment or
consolidation of facilities.
(3) Identification of statutory or regulatory obstacles that
prevented or will prevent the Postal Service from taking action to realign
or consolidate facilities.
(4) Such additional topics and recommendations as the Postal Service
considers appropriate.
(b) TREATMENT AS PERFORMANCE GOALS- The Postal Service shall establish
and report the matters set forth in subsection (a) as performance goals in the
reports required by sections 2803 and 2804.
(c) ACTIONS TO BE TAKEN- The Postal Service shall take such actions it
considers, in its sole discretion, necessary and appropriate to provide the
Nation with a modern and efficient network for the processing, transportation,
and distribution of mail. Nothing in this section shall prevent the Postal
Service from making such improvements in the efficiency and effectiveness of
the network as it deems appropriate.
SEC. 710. ASSESSMENT OF FUTURE BUSINESS MODEL OF THE POSTAL
SERVICE.
(a) APPOINTMENT OF RESEARCH ORGANIZATION- Not later than 90 days after
the date of the enactment of this Act, the Comptroller General of the United
States shall appoint, in such manner and under such terms as he in his sole
discretion determines appropriate, an independent, impartial, and expert
research organization (hereinafter in this section referred to as the
`research organization') to prepare and submit to the President and to
Congress a comprehensive report that evaluates what business model would best
promote an efficient, reliable, innovative, and viable Postal Service that can
meet the needs of the Nation and its citizens in the 21st century. The final
report required by this section shall be submitted within 27 months of the
date of the enactment of this Act. The final report shall identify costs,
benefits, and feasible options, if any, associated with one or more strategies
for--
(1) maintaining the Postal Service in its current form as an
independent establishment in the executive branch of the Government;
and
(2) transforming the Postal Service into an ordinary corporation,
owned wholly by the Government, wholly by private shareholders, or partly by
the Government and partly by private shareholders.
(b) PROTECTION OF UNIVERSAL SERVICE- The research organization may
include such recommendations as it considers appropriate with respect to how
the Postal Service's business model can be maintained or transformed in an
orderly manner that will minimize adverse effects on all interested parties
and assure continued availability of affordable, universal postal service
throughout the United States (based on the reports required by section 701).
The research organization shall not consider any strategy or other course of
action that would pose a significant risk to the continued availability of
affordable, universal postal service throughout the United States.
(1) TOPICS TO ADDRESS- The report shall address at least the
following:
(A) Specification of nature and bases of one or more sets of
reasonable assumptions about the development of the postal services
market, to the extent that such assumptions may be necessary or
appropriate for each strategy identified by the research
organization.
(B) Specification of the nature and bases of one or more sets of
reasonable assumptions about the development of the regulatory framework
for postal services, to the extent that such assumptions may be necessary
or appropriate for each strategy identified by the research
organization.
(C) Qualitative and, to the extent possible, quantitative effects
that each strategy identified by the research organization may have on
universal service generally, the Postal Service, mailers, postal
employees, private companies that provide delivery services, and the
general public.
(D) Financial effects that each strategy identified by the
research organization may have on the Postal Service, postal employees,
the Treasury of the United States, and other affected parties, including
the American mailing consumer.
(E) Feasible and appropriate procedural steps and timetables for
implementing each strategy identified by the research
organization.
(F) Such additional topics as the Comptroller General or the
research organization shall consider necessary and
appropriate.
(2) MATTERS TO CONSIDER- For each strategy identified, the research
organization shall assess how each business model might--
(A) address the human-capital challenges facing the Postal
Service, including how employee-management relations within the Postal
Service may be improved;
(B) optimize the postal infrastructure, including the best methods
for providing retail services that ensure convenience and access to
customers;
(C) ensure the safety and security of the mail and of postal
employees;
(D) minimize areas of inefficiency or waste and improve operations
involved in the collection, processing, or delivery of mail;
and
(E) impact other matters that the Comptroller General or the
research organization determines are relevant to evaluating a viable
long-term business model for the Postal Service.
(3) EXPERIENCES OF OTHER COUNTRIES- In preparing the report required
by subsection (a), the research organization shall comprehensively and
quantitatively investigate the experiences of other industrialized countries
that have transformed the national post office. The research organization
shall undertake such original research as it deems necessary. In each case,
the research organization shall describe as fully as possible the costs and
benefits of transformation of the national post office on all affected
parties and shall identify any lessons that foreign experience may imply for
each strategy identified by the research organization.
(d) OUTSIDE EXPERTS- In preparing its study, the research organization
may retain the services of additional experts and consultants.
(e) CONSULTATION- In preparing its report, the research organization
shall consult fully with the Postal Service, the Postal Regulatory Commission,
other Federal agencies, postal employee unions and management associations,
mailers, private companies that provide delivery services, and the general
public. The research organization shall include with its final report a copy
of all formal written comments received under this subsection.
(f) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated from the Postal Service Fund such sums as may be necessary to
carry out this section.
SEC. 711. STUDY ON CERTAIN PROPOSED AMENDMENTS.
The Government Accountability Office shall study and, within 12 months
after the date of the enactment of this Act, submit to the Congress a report
on sections 805 and 807 of H.R. 22 (109th Congress), as introduced. Such
report shall include the following:
(1) A description of the efficiencies of the current system under
section 5402 of title 39, United States Code.
(2) The potential for cost savings to the United States Postal
Service if the Postal Service, rather than the Department of Transportation,
were to administer international mail carriage.
(3) The potential for harm to domestic air carriers and American
workers currently employed by domestic air carriers.
(4) The potential loss of revenue to domestic air carriers and
American workers currently employed by domestic air carriers.
(5) The process by which the United States Postal Service would
administer any changes in current law.
(6) The process by which the Department of Transportation
administers current law.
(7) The potential for change in protection of national security by
carriage by foreign carriers of international mail to and from the United
States.
SEC. 712. DEFINITION.
For purposes of this title, the term `Board of Governors' has the
meaning given such term by section 102 of title 39, United States
Code.
TITLE VIII--MISCELLANEOUS; TECHNICAL AND CONFORMING
AMENDMENTS
SEC. 801. EMPLOYMENT OF POSTAL POLICE OFFICERS.
Section 3061 of title 18, United States Code, is amended by adding at
the end the following:
`(c)(1) The Postal Service may employ police officers for duty in
connection with the protection of property owned or occupied by the Postal
Service or under the charge and control of the Postal Service, and persons on
the property, including duty in areas outside the property to the extent
necessary to protect the property and persons on the property.
`(2) With respect to such property, such officers shall have the power
to--
`(A) enforce Federal laws and regulations for the protection of
persons and property;
`(C) make arrests without a warrant for any offense against the
United States committed in the presence of the officer or for any felony
cognizable under the laws of the United States if the officer has reasonable
grounds to believe that the person to be arrested has committed or is
committing a felony.
`(3) With respect to such property, such officers may have, to such
extent as the Postal Service may by regulations prescribe, the power
to--
`(A) serve warrants and subpoenas issued under the authority of the
United States; and
`(B) conduct investigations, on and off the property in question, of
offenses that may have been committed against property owned or occupied by
the Postal Service or persons on the property.
`(4)(A) As to such property, the Postmaster General may prescribe
regulations necessary for the protection and administration of property owned
or occupied by the Postal Service and persons on the property. The regulations
may include reasonable penalties, within the limits prescribed in subparagraph
(B), for violations of the regulations. The regulations shall be posted and
remain posted in a conspicuous place on the property.
`(B) A person violating a regulation prescribed under this subsection
shall be fined under this title, imprisoned for not more than 30 days, or
both.'.
SEC. 802. DATE OF POSTMARK TO BE TREATED AS DATE OF APPEAL IN CONNECTION
WITH THE CLOSING OR CONSOLIDATION OF POST OFFICES.
(a) IN GENERAL- Section 404(b) of title 39, United States Code, is
amended by adding at the end the following:
`(6) For purposes of paragraph (5), any appeal received by the
Commission shall--
`(A) if sent to the Commission through the mails, be considered to
have been received on the date of the Postal Service postmark on the
envelope or other cover in which such appeal is mailed; or
`(B) if otherwise lawfully delivered to the Commission, be
considered to have been received on the date determined based on any
appropriate documentation or other indicia (as determined under regulations
of the Commission).'.
(b) EFFECTIVE DATE- This section and the amendments made by this
section shall apply with respect to any determination to close or consolidate
a post office which is first made available, in accordance with paragraph (3)
of section 404(b) of title 39, United States Code, after the end of the
3-month period beginning on the date of the enactment of this Act.
SEC. 803. PROVISIONS RELATING TO BENEFITS UNDER CHAPTER 81 OF TITLE 5,
UNITED STATES CODE, FOR OFFICERS AND EMPLOYEES OF THE FORMER POST OFFICE
DEPARTMENT.
(a) IN GENERAL- Section 8 of the Postal Reorganization Act (39 U.S.C.
1001 note) is amended by inserting `(a)' after `8.' and by adding at the end
the following:
`(b) For purposes of chapter 81 of title 5, United States Code, the
Postal Service shall, with respect to any individual receiving benefits under
such chapter as an officer or employee of the former Post Office Department,
have the same authorities and responsibilities as it has with respect to an
officer or employee of the Postal Service receiving such benefits.'.
(b) EFFECTIVE DATE- This section and the amendments made by this
section shall be effective as of the first day of the fiscal year in which
this Act is enacted.
SEC. 804. OBSOLETE PROVISIONS.
(1) IN GENERAL- Chapter 52 of title 39, United States Code, is
repealed.
(2) CONFORMING AMENDMENTS- (A) Section 5005(a) of title 39, United
States Code, is amended--
(i) by striking paragraph (1), and by redesignating paragraphs (2)
through (4) as paragraphs (1) through (3), respectively; and
(ii) in paragraph (3) (as so designated by clause (i)), by
striking `(as defined in section 5201(6) of this title)'.
(B) Section 5005(b) of such title 39 is amended by striking `(a)(4)'
each place it appears and inserting `(a)(3)'.
(C) Section 5005(c) of such title 39 is amended by striking `by
carrier or person under subsection (a)(1) of this section, by contract under
subsection (a)(4) of this section, or' and inserting `by contract under
subsection (a)(3) of this section or'.
(b) ELIMINATING RESTRICTION ON LENGTH OF CONTRACTS- (1) Section
5005(b)(1) of title 39, United States Code, is amended by striking `(or where
the Postal Service determines that special conditions or the use of special
equipment warrants, not in excess of 6 years)' and inserting `(or such longer
period of time as may be determined by the Postal Service to be advisable or
appropriate)'.
(2) Section 5402(d) of such title 39 is amended by striking `for a
period of not more than 4 years'.
(3) Section 5605 of such title 39 is amended by striking `for periods
of not in excess of 4 years'.
(c) CLERICAL AMENDMENT- The analysis for part V of title 39, United
States Code, is amended by repealing the item relating to chapter 52.
SEC. 805. INVESTMENTS.
Subsection (c) of section 2003 of title 39, United States Code, is
amended--
(1) by striking `(c) If' and inserting `(c)(1) Except as provided in
paragraph (2), if'; and
(2) by adding at the end the following:
`(2)(A) Nothing in this section shall be considered to authorize any
investment in any obligations or securities of a commercial entity.
`(B) For purposes of this paragraph, the term `commercial entity'
means any corporation, company, association, partnership, joint stock company,
firm, society, or other similar entity, as further defined under regulations
prescribed by the Postal Regulatory Commission.'.
SEC. 806. REDUCED RATES.
Section 3626 of title 39, United States Code, is amended--
(1) in subsection (a), by striking all before paragraph (4) and
inserting the following:
`(a)(1) Except as otherwise provided in this section, rates of postage
for a class of mail or kind of mailer under former section 4358, 4452(b),
4452(c), 4554(b), or 4554(c) of this title shall be established in accordance
with section 3622.
`(2) For the purpose of this subsection, the term `regular-rate
category' means any class of mail or kind of mailer, other than a class or
kind referred to in section 2401(c).
`(3) Rates of postage for a class of mail or kind of mailer under
former section 4358(a) through (c) of this title shall be established so that
postage on each mailing of such mail reflects its preferred status as compared
to the postage for the most closely corresponding regular-rate category
mailing.';
(2) in subsection (g), by adding at the end the
following:
`(3) For purposes of this section and former section 4358(a) through
(c) of this title, those copies of an issue of a publication entered within
the county in which it is published, but distributed outside such county on
postal carrier routes originating in the county of publication, shall be
treated as if they were distributed within the county of publication.
`(4)(A) In the case of an issue of a publication, any number of copies
of which are mailed at the rates of postage for a class of mail or kind of
mailer under former section 4358(a) through (c) of this title, any copies of
such issue which are distributed outside the county of publication (excluding
any copies subject to paragraph (3)) shall be subject to rates of postage
provided for under this paragraph.
`(B) The rates of postage applicable to mail under this paragraph
shall be established in accordance with section 3622.
`(C) This paragraph shall not apply with respect to an issue of a
publication unless the total paid circulation of such issue outside the county
of publication (not counting recipients of copies subject to paragraph (3)) is
less than 5,000.'; and
(3) by adding at the end the following:
`(n) In the administration of this section, matter that satisfies the
circulation standards for requester publications shall not be excluded from
being mailed at the rates for mail under former section 4358 solely because
such matter is designed primarily for free circulation or for circulation at
nominal rates, or fails to meet the requirements of former section
4354(a)(5).'.
SEC. 807. HAZARDOUS MATTER.
(a) NONMAILABILITY GENERALLY- Section 3001 of title 39, United States
Code, is amended--
(1) by redesignating subsection (n) as subsection (o);
and
(2) by inserting after subsection (m) the following:
`(n)(1) Except as otherwise authorized by law or regulations of the
Postal Service, hazardous material is nonmailable.
`(2) In this subsection, the term `hazardous material' means a
substance or material designated by the Secretary of Transportation under
section 5103(a) of title 49.'.
(b) MAILABILITY- Chapter 30 of title 39, United States Code, is
amended by adding at the end the following:
`Sec. 3018. Hazardous material
`(a) IN GENERAL- The Postal Service shall prescribe regulations for
the safe transportation of hazardous material in the mail.
`(b) PROHIBITIONS- No person may--
`(1) mail or cause to be mailed hazardous material that has been
declared by statute or Postal Service regulation to be
nonmailable;
`(2) mail or cause to be mailed hazardous material in violation of
any statute or Postal Service regulation restricting the time, place, or
manner in which hazardous material may be mailed; or
`(3) manufacture, distribute, or sell any container, packaging kit,
or similar device that--
`(A) is represented, marked, certified, or sold by such person for
use in the mailing of hazardous material; and
`(B) fails to conform with any statute or Postal Service
regulation setting forth standards for a container, packaging kit, or
similar device used for the mailing of hazardous material.
`(c) CIVIL PENALTY; CLEAN-UP COSTS AND DAMAGES-
`(1) IN GENERAL- A person who knowingly violates this section or a
regulation prescribed under this section shall be liable for--
`(A) a civil penalty of at least $250, but not more than $100,000,
for each violation;
`(B) the costs of any clean-up associated with each violation;
and
`(2) KNOWING ACTION- A person acts knowingly for purposes of
paragraph (1) when--
`(A) the person has actual knowledge of the facts giving rise to
the violation; or
`(B) a reasonable person acting in the circumstances and
exercising reasonable care would have had that knowledge.
`(3) SEPARATE VIOLATIONS-
`(A) VIOLATIONS OVER TIME- A separate violation under this
subsection occurs for each day hazardous material, mailed or caused to be
mailed in noncompliance with this section, is in the mail.
`(B) SEPARATE ITEMS- A separate violation under this subsection
occurs for each item containing hazardous material that is mailed or
caused to be mailed in noncompliance with this section.
`(d) HEARINGS- The Postal Service may determine that a person has
violated this section or a regulation prescribed under this section only after
notice and an opportunity for a hearing. Proceedings under this section shall
be conducted in accordance with section 3001(m).
`(e) PENALTY CONSIDERATIONS- In determining the amount of a civil
penalty for a violation of this section, the Postal Service shall
consider--
`(1) the nature, circumstances, extent, and gravity of the
violation;
`(2) with respect to the person who committed the violation, the
degree of culpability, any history of prior violations, the ability to pay,
and any effect on the ability to continue in business;
`(3) the impact on Postal Service operations; and
`(4) any other matters that justice requires.
`(f) CIVIL ACTIONS TO COLLECT-
`(1) IN GENERAL- In accordance with section 409(d), a civil action
may be commenced in an appropriate district court of the United States to
collect a civil penalty, clean-up costs, and damages assessed under
subsection (c).
`(2) COMPROMISE- The Postal Service may compromise the amount of a
civil penalty, clean-up costs, and damages assessed under subsection (c)
before commencing a civil action with respect to such civil penalty,
clean-up costs, and damages under paragraph (1).
`(g) CIVIL JUDICIAL PENALTIES-
`(1) IN GENERAL- At the request of the Postal Service, the Attorney
General may bring a civil action in an appropriate district court of the
United States to enforce this section or a regulation prescribed under this
section.
`(2) RELIEF- The court in a civil action under paragraph (1) may
award appropriate relief, including a temporary or permanent injunction,
civil penalties as determined in accordance with this section, or punitive
damages.
`(3) CONSTRUCTION- A civil action under this subsection shall be in
lieu of civil penalties for the same violation under subsection
(c)(1)(A).
`(h) DEPOSIT OF AMOUNTS COLLECTED-
`(1) POSTAL SERVICE FUND- Except as provided under paragraph (2),
amounts collected under subsection (c)(1)(B) and (C) shall be deposited into
the Postal Service Fund under section 2003.
`(2) TREASURY- Amounts collected under subsection (c)(1)(A) and any
punitive damages collected under subsection (c)(1)(C) shall be deposited
into the Treasury of the United States.'.
(c) CONFORMING AMENDMENTS- (1) Section 2003(b) of title 39, United
States Code, is amended--
(A) in paragraph (7), by striking `and' after the
semicolon;
(B) in paragraph (8), by striking `purposes.' and inserting
`purposes; and'; and
(C) by adding at the end the following:
`(9) any amounts collected under section 3018.'.
(2) The analysis for chapter 30 of title 39, United States Code, is
amended by adding at the end the following:
`3018. Hazardous material.'.
(d) Injurious Articles as Nonmailable- Section 1716(a) of title 18,
United States Code, is amended by inserting after `explosives,' the following:
`hazardous materials,'.
SEC. 808. PROVISIONS RELATING TO COOPERATIVE MAILINGS.
(a) DETERMINATION- The Postal Regulatory Commission shall examine
section E670.5.3 of the Domestic Mail Manual to determine whether it contains
adequate safeguards to protect against (1) abuses of rates for nonprofit mail
and (2) deception of consumers.
(b) REGULATIONS- If the Postal Regulatory Commission determines that
section E670.5.3 of the Domestic Mail Manual does not contain adequate
safeguards as described in the preceding subsection, the Commission shall
promulgate such regulations as may be necessary to ensure such
safeguards.
(c) TIMING- The Postal Regulatory Commission shall complete the
examination required by subsection (a) and the promulgation of any necessary
regulations required by subsection (b) within one year after the date of the
enactment of this section.
SEC. 809. TECHNICAL AND CONFORMING AMENDMENTS.
(a) REIMBURSEMENT- Section 3681 of title 39, United States Code, is
amended by striking `section 3628' and inserting `sections 3662 through
3664'.
(b) SIZE AND WEIGHT LIMITS- Section 3682 of title 39, United States
Code, is amended to read as follows:
`Sec. 3682. Size and weight limits
`The Postal Service may establish size and weight limitations for mail
matter in the market-dominant category of mail consistent with regulations the
Postal Regulatory Commission may prescribe under section 3622. The Postal
Service may establish size and weight limitations for mail matter in the
competitive category of mail consistent with its authority under section
3632.'.
(c) REVENUE FOREGONE, ETC- Title 39, United States Code, is
amended--
(1) in section 503 (as so redesignated by section 501), by striking
`this chapter.' and inserting `this title.'; and
(2) in section 2401(d), by inserting `(as last in effect before
enactment of the Postal Accountability and Enhancement Act)' after `3626(a)'
and after `3626(a)(3)(B)(ii)'.
(d) APPROPRIATIONS AND REPORTING REQUIREMENTS-
(1) APPROPRIATIONS- Subsection (e) of section 2401 of title 39,
United States Code, is amended--
(A) by striking `Committee on Post Office and Civil Service' each
place it appears and inserting `Committee on Government Reform';
and
(B) by striking `Not later than March 15 of each year,' and
inserting `Each year,'.
(2) REPORTING REQUIREMENTS- Sections 2803(a) and 2804(a) of title
39, United States Code, are amended by striking `2401(g)' and inserting
`2401(e)'.
(e) AUTHORITY TO FIX RATES AND CLASSES GENERALLY; REQUIREMENT RELATING
TO LETTERS SEALED AGAINST INSPECTION- Section 404 of title 39, United States
Code (as amended by section 102) is further amended by redesignating
subsections (b) and (c) as subsections (d) and (e), respectively, and by
inserting after subsection (a) the following:
`(b) Except as otherwise provided, the Governors are authorized to
establish reasonable and equitable classes of mail and reasonable and
equitable rates of postage and fees for postal services in accordance with the
provisions of chapter 36. Postal rates and fees shall be reasonable and
equitable and sufficient to enable the Postal Service, under best practices of
honest, efficient, and economical management, to maintain and continue the
development of postal services of the kind and quality adapted to the needs of
the United States.
`(c) The Postal Service shall maintain one or more classes of mail for
the transmission of letters sealed against inspection. The rate for each such
class shall be uniform throughout the United States, its territories, and
possessions. One such class shall provide for the most expeditious handling
and transportation afforded mail matter by the Postal Service. No letter of
such a class of domestic origin shall be opened except under authority of a
search warrant authorized by law, or by an officer or employee of the Postal
Service for the sole purpose of determining an address at which the letter can
be delivered, or pursuant to the authorization of the addressee.'.
(f) LIMITATIONS- Section 3684 of title 39, United States Code, is
amended by striking all that follows `any provision' and inserting `of this
title.'.
(g) MISCELLANEOUS- Title 39, United States Code, is amended--
(1) in section 1005(d)(2)--
(A) by striking `subsection (g) of section 5532,';
and
(B) by striking `8344,' and inserting `8344';
(2) in the analysis for part III, by striking the item relating to
chapter 28 and inserting the following:
--2801';
(A) in the matter before paragraph (1), by striking all that
follows `nonmailable' and precedes `(h),' and inserting `under section
3001(d),'; and
(B) in the sentence following paragraph (3), by striking all that
follows `nonmailable' and precedes `(h),' and inserting `under such
section 3001(d),';
(4) in section 3210(a)(6)(C), by striking the matter after `if such
mass mailing' and before `than 60 days' and inserting `is postmarked fewer';
and
(5) by striking the heading for section 3627 and inserting the
following:
`Sec. 3627. Adjusting free rates'.
TITLE IX--POSTAL PENSION FUNDING REFORM
AMENDMENTS
SEC. 901. CIVIL SERVICE RETIREMENT SYSTEM.
(a) TERMINATION OF OBLIGATION TO PAY GOVERNMENT
CONTRIBUTIONS- Section
8334(a)(1)(B)(ii) of title 5, United States Code, is amended by striking all
that follows `be equal to' and inserting `zero.'.
(b) DETERMINATION AND DISPOSITION OF POSTAL SURPLUS OR SUPPLEMENTAL
LIABILITY- Section 8348(h) of title 5, United States Code, is amended to read
as follows:
`(h)(1) For purposes of this subsection, a Postal surplus (or
supplemental liability) is the amount, as estimated by the Office, by
which--
`(A) the actuarial present value of all future benefits which are
payable from the Fund under this subchapter to current or former employees
of the United States Postal Service, or their survivors, and attributable to
civilian employment with the Postal Service, is less than (or greater
than)
`(i) the actuarial present value of deductions to be withheld from
the future basic pay of employees of the Postal Service currently subject
to this subchapter pursuant to section 8334;
`(ii) that portion of the Fund balance, as of the date such
surplus or supplemental liability is determined, attributable to payments
to the Fund by the Postal Service and its employees, plus the earnings on
such amounts while in the Fund; and
`(iii) any other appropriate amount, as determined by the Office
in accordance with generally accepted actuarial practices and
principles.
`(2)(A)(i) Not later than June 15, 2006, the Office shall determine
the Postal surplus or supplemental liability as of September 30, 2005.
`(ii) If a supplemental liability is determined under this
subparagraph for fiscal year 2005, the Office shall establish an amortization
schedule, including a series of equal annual installments commencing September
30, 2006, which provides for the liquidation of such liability by September
30, 2043.
`(iii) If a surplus is determined under this subparagraph for fiscal
year 2005, the amount of the surplus shall be transferred to the Postal
Service Retiree Health Benefits Fund by June 30, 2006.
`(B)(i) For each of fiscal years 2006 through 2038, the Office shall
determine the Postal surplus or supplemental liability as of the close of such
fiscal year, with each such determination to be made by June 15th of the
following fiscal year.
`(ii) If a supplemental liability is determined under this
subparagraph for a fiscal year, the Office shall establish an amortization
schedule, including a series of equal annual installments commencing on
September 30 of the following fiscal year, which provides for the liquidation
of such liability by September 30, 2043.
`(iii)(I) If a surplus of $500,000,000 or more is determined under
this subparagraph for a fiscal year, the amount of the surplus shall be
transferred to the Postal Service Retiree Health Benefits Fund by June 30th of
the following fiscal year.
`(II) If a surplus of less than $500,000,000 is determined under this
subparagraph for a fiscal year, the surplus shall remain in the Fund, subject
to transfer in a subsequent fiscal year under subclause (I) or subparagraph
(C)(iii).
`(C)(i) Not later than June 15, 2040, the Office shall determine the
Postal surplus or supplemental liability as of September 30, 2039.
`(ii) If a supplemental liability is determined under this
subparagraph for fiscal year 2039, the Office shall establish an amortization
schedule, including a series of equal annual installments commencing September
30, 2040, which provides for the liquidation of such liability by September
30, 2043.
`(iii) If a surplus is determined under this subparagraph for fiscal
year 2039, the amount of the surplus--
`(I) shall be applied first toward reducing the amount of any
supplemental liability described in section 8423(b)(1)(B); and
`(II) to the extent that any portion of such surplus remains after
the application of subclause (I), shall, not later than June 30, 2040, be
transferred to the Postal Service Retiree Health Benefits Fund.
`(D) An amortization schedule under this paragraph--
`(i) shall be established in accordance with generally accepted
actuarial practices and principles, with interest computed at the rate used
in the most recent valuation of the Civil Service Retirement
System;
`(ii) shall supersede any amortization schedule previously
established under this paragraph; and
`(iii) shall not be taken into account, for purposes of any
determination of Postal surplus or supplemental liability, except to the
extent of any amounts under such schedule actually paid.
`(E)(i) The Postal Service shall pay to the Office the amounts due
under any amortization schedule established under this paragraph, to the
extent not superseded or canceled.
`(ii) A determination under subparagraph (B)(i) or (C)(i) that no
supplemental liability exists shall cancel any amortization schedule
previously established under this paragraph, to the extent of any amounts
first coming due after the close of the fiscal year to which such
determination relates.
`(3) Notwithstanding any other provision of law, in computing the
amount of any payment under any other subsection of this section that is based
on the amount of the unfunded liability, such payment shall be computed
disregarding that portion of the unfunded liability that the Office determines
will be liquidated by payments under this subsection.
`(4) As used in this subsection, `Postal Service Retiree Health
Benefits Fund' refers to the Postal Service Retiree Health Benefits Fund, as
established by section 8909a.'.
(c) PROVISIONS RELATING TO AMOUNTS FOR MILITARY
SERVICE- In the
application of paragraph (2) of section 8348(g) of title 5, United States
Code, for fiscal year 2006, the Office of Personnel Management shall include,
in addition to the amount otherwise computed under that paragraph, the amounts
that would have been included for fiscal years 2003 through 2005 with respect
to credit for military service of former employees of the United States Postal
Service if Public Law 108-18 had not been enacted (including earnings thereon)
and the Secretary of the Treasury shall make the required transfer to the
Civil Service Retirement and Disability Fund based on that amount.
(1) IN GENERAL- Notwithstanding any other provision of this section,
any determination or redetermination made by the Office of Personnel
Management under this section shall, upon request of the United States
Postal Service, be subject to review by the Postal Regulatory Commission.
The Commission shall submit a report containing the results of any such
review to the Postal Service, the Office of Personnel Management, and the
Congress.
(2) RESPONSE- Upon receiving the report of the Postal Regulatory
Commission, the Office of Personnel Management shall reconsider its
determination or redetermination in light of such report, and shall make any
appropriate adjustments. The Office shall submit a report containing the
results of its reconsideration to the Commission, the Postal Service, and
the Congress.
SEC. 902. HEALTH INSURANCE.
(a) IN GENERAL- Chapter 89 of title 5, United States Code, is
amended--
(1) in section 8906(g)(2)(A), by striking `by the United States
Postal Service.' and inserting `first from the Postal Service Retiree Health
Benefits Fund up to the amount contained therein, with any remaining amount
paid by the United States Postal Service.';
(2) by inserting after section 8909 the following:
`Sec. 8909a. Postal Service Retiree Health Benefits Fund
`(a) There is in the Treasury of the United States a Postal Service
Retiree Health Benefits Fund (hereinafter in this section referred to as the
`Fund') which is administered by the Office of Personnel Management. Any
amounts transferred to the Fund under section 8348(h)(2) shall yield interest
at a rate equal to the weighted average yield of all the investments in the
Civil Service Retirement and Disability Fund as of the date of transfer. All
other investments of amounts in the Fund shall be made in accordance with
subsections (c)-(e) of section 8348.
`(b) The Fund is available without fiscal year limitation for payments
required by section 8906(g)(2).
`(c)(1) Not later than June 30, 2006, and by June 30 of each
succeeding year, the Office of Personnel Management shall compute the net
present value of the excess of future payments required by section
8906(g)(2)(A) for current and future United States Postal Service annuitants
over the value of the assets of the Fund as of the end of the fiscal year
ending on September 30 of that year. The actuarial costing method to be used
by the Office and all actuarial assumptions shall be established by the Office
after consultation with the United States Postal Service and must be in
accordance with generally accepted actuarial practices and principles.
`(2) Not later than September 30, 2006, and by September 30 of each
succeeding year, the Office shall compute and the United States Postal Service
shall pay into such Fund--
`(A) the portion of the net present value described in paragraph (1)
attributable to the current year's service of Postal Service employees;
and
`(B) interest on the net present value described in paragraph (1)
for that fiscal year, at the interest rate used in computing that net
present value;
except that the amount otherwise payable by the Postal Service under
the preceding provisions of this paragraph by not later than September 30,
2006, shall be reduced by the total contributions made by the Postal Service
under section 8906(g)(2) and attributable to fiscal year 2006 (as determined
by the Office).
`(3)(A) Any computation or other determination of the Office under
this subsection shall, upon request of the Postal Service, be subject to
review by the Postal Regulatory Commission. The Commission shall submit a
report containing the results of any such review to the Postal Service, the
Office of Personnel Management, and the Congress.
`(B) Upon receiving the report of the Postal Regulatory Commission,
the Office of Personnel Management shall reconsider its computation or other
determination in light of such report, and shall make any appropriate
adjustments. The Office shall submit a report containing the results of its
reconsideration to the Commission, the Postal Service, and the
Congress.
`(4) The Office shall promulgate, after consultation with the United
States Postal Service, any regulations it deems necessary under this
subsection.'; and
(3) in the analysis by inserting after the item relating to section
8909 the following:
`8909a. Postal Service Retiree Health Benefits Fund.'.
(1) IN GENERAL- Any regulation established under section 8909a(c)(4)
of title 5, United States Code (as amended by subsection (a)) shall, upon
request of the Postal Service, be subject to review by the Postal Regulatory
Commission. The Commission shall submit a report containing the results of
any such review to the Postal Service, the Office of Personnel Management,
and the Congress.
(2) RESPONSE- Upon receiving the report of the Postal Regulatory
Commission, the Office of Personnel Management shall reconsider its
regulation in light of such report, and shall take such action as it
considers appropriate. The Office shall submit a report containing the
results of its reconsideration to the Commission, the Postal Service, and
the Congress.
SEC. 903. REPEALER.
Section 3 of Public Law 108-18 is repealed.
SEC. 904. ENSURING APPROPRIATE USE OF ESCROW AND MILITARY
SAVINGS.
(a) DEFINITION- For purposes of this section, the term `total savings'
means, for any fiscal year, the amount equal to--
(1) the amount of contributions that the Postal Service would
otherwise have been required to make to the Civil Service Retirement and
Disability Fund under subchapter III of chapter 83 of title 5, United States
Code, for such fiscal year if Public Law 108-18 and this Act had not been
enacted, minus
(2) the amount of amortization payments (if any) required under
section 8348(h)(2) of title 5, United States Code, for such fiscal
year.
(b) CALCULATIONS- The following calculations shall be made for each of
fiscal years 2006 through 2015:
(1) Not later than January 31 of the fiscal year following the
fiscal year involved, the Office of Personnel Management (in consultation
with the Postal Service) shall determine the total savings for the fiscal
year.
(2) On the date of making its determination under paragraph (1), the
Office shall also determine (in consultation with the Postal Service) the
amount by which--
(A) the amount the Postal Service paid for that fiscal year into
the Postal Service Retiree Health Benefits Fund in accordance with
8909a(c)(2) of title 5, United States Code, exceeds (if at
all)
(B) the amount of payments made by the Postal Service for that
fiscal year from such Fund in order to satisfy the requirements of section
8906(g)(2) of such title 5.
(1) IF THRESHOLD IS MET- If the amount calculated under subsection
(b)(2) for a fiscal year is greater than or equal to two-thirds of the total
savings in such fiscal year, no further action under this section is
necessary with respect to such fiscal year.
(2) IF THRESHOLD IS NOT MET-
(A) IN GENERAL- If the amount calculated under subsection (b)(2)
for a fiscal year is less than two-thirds of the total savings in such
fiscal year, the Postal Service shall pay into the Postal Service Retiree
Health Benefits Fund, by June 30 of the following fiscal year, an amount
equal to the difference.
(B) ALLOWABLE ALTERNATIVE-
(i) IN GENERAL- Notwithstanding subparagraph (A), and subject to
clause (ii), the Postal Service may instead use the amount that it would
otherwise be required to pay into the Postal Service Retiree Health
Benefits Fund for a year (or any portion thereof) to reduce the postal
debt.
(ii) LIMITATION- Amounts used to reduce the postal debt under
this subparagraph may not exceed a total of
$3,000,000,000.
(3) AGGREGATION ALLOWED- Notwithstanding paragraph (2), if the
amount calculated under subsection (b)(2) for a fiscal year is less than
two-thirds of the total savings in such fiscal year, but the sum of the
amounts calculated under subsection (b)(2) for all fiscal years from 2006 to
the fiscal year involved is greater than or equal to two-thirds of the sum
of the total savings for such years, no further action under this section is
necessary with respect to such fiscal year.
(d) REPORTING REQUIREMENT- The Office of Personnel Management shall
submit a report containing the results of its calculations under subsection
(b) to the Postal Service, the Postal Regulatory Commission, and the
Congress.
(e) WAIVER AUTHORITY- The requirements of subsection (c)(2)(A) may,
upon application of the Postal Service, be waived by the Postal Regulatory
Commission, to the extent that the Commission determines that such waiver is
reasonable and equitable and necessary to enable the Postal Service, under
best practices of honest, efficient, and economical management, to maintain
and continue the development of postal services of the kind and quality
adapted to the needs of the United States.
SEC. 905. EFFECTIVE DATES.
(a) IN GENERAL- Except as otherwise provided, this title shall take
effect on October 1, 2005.
(b) GOVERNMENT CONTRIBUTIONS- Section 901(a) shall take effect on the
first day of the first pay period beginning on or after October 1,
2005.
Union Calendar No. 55
109th CONGRESS
1st Session
H. R. 22
[Report No. 109-66, Part I]
A BILL
To reform the postal laws of the United States.
May 27, 2005
The Committee on the Judiciary discharged; committed to the Committee of
the Whole House on the State of the Union and ordered to be printed
END