HIGHLIGHTS of H.R. 4970 (last Congress)

POSTAL ACCOUNTABILITY AND ENHANCEMENT ACT

Preserve Universal Service – Maintenance of a universal postal system must be the cornerstone of any postal reform measure and the bill preserves this mandate by giving the Postal Service the ability to remain viable and effective. The statutory mission of the Postal Service is focused strictly on postal services. A "National Commission on the Future of the Postal Service" will be required to develop and recommend concrete standards for universal service. In addition, the Postal Regulatory Commission will develop an annual estimate of the costs of universal service so that Congress can better understand how to provide the necessary protections in the future.

Promote Efficiency and Flexibility – The bill gives postal management and employees the tools to adapt and survive in the face of enormous challenges caused by changing technology and a dynamic communications marketplace. The bill encourages innovation and efficiency by permitting the Postal Service to distribute earnings as bonuses to all employees. In the same way, losses could not be recovered by increasing rates beyond specified parameters without regulatory approval. The bill also allows the Postal Service to better react to market conditions by streamlining the rate setting process, and permitting rates that are better tailored to consumers’ needs.

Ensure Fair Competition and Accountability – Under the legislation, the Postal Service will compete on a level playing field, under the same terms and conditions as faced by its private sector competitors. The Postal Service will be given flexibility to price competitive products, but competitive products and services would have to pay their own costs without subsidy from First-Class mail revenues. A "Postal Regulatory Commission" is created to oversee and regulate the Postal Service. The bill clarifies the distinction between competitive and market-dominant products and imposes prohibitions on the Postal Service’s ability to regulate areas in which it competes. In addition, the bill, for the first time, subjects the Postal Service’s competitive products to many of the same laws as private companies, such as

× Antitrust laws

× Fair-trade laws

× Equal customs procedures

× An assumed federal income tax payment

Establish a Basis for Future Reforms – The legislation mandates several studies, including a comprehensive assessment of the nation’s postal laws. In particular, the bill establishes a National Commission on the Future of the Postal Service to study and make recommendations on ways to improve the efficiency and longer-term viability of the Postal Service. Other evaluations address:

× Equal application of laws

× Plans for assisting displaced workers

× Quality of ratemaking data for Periodicals’ costs

× An assessment of the revenue deficiency process