In the Senate of the United States,
February 9, 2006.
Resolved, That the bill from the House of Representatives (H.R.
22) entitled `An Act to reform the postal laws of the United States.', do
pass with the following
AMENDMENT:
Strike out all after the enacting clause and insert:
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.
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. Clerical amendment.
TITLE III--MODERN SERVICE STANDARDS
Sec. 301. Establishment of modern service standards.
Sec. 302. Postal service plan.
TITLE IV--PROVISIONS RELATING TO FAIR COMPETITION
Sec. 401. Postal Service Competitive Products Fund.
Sec. 402. Assumed Federal income tax on competitive products income.
Sec. 403. Unfair competition prohibited.
Sec. 404. Suits by and against the Postal Service.
Sec. 405. International postal arrangements.
TITLE V--GENERAL PROVISIONS
Sec. 501. Qualification and term requirements for Governors.
Sec. 503. Private carriage of letters.
Sec. 504. Rulemaking authority.
Sec. 505. Noninterference with collective bargaining agreements.
Sec. 506. Bonus authority.
TITLE VI--ENHANCED REGULATORY COMMISSION
Sec. 601. Reorganization and modification of certain provisions relating
to the Postal Regulatory Commission.
Sec. 602. Authority for Postal Regulatory Commission to issue subpoenas.
Sec. 603. Authorization of appropriations from the Postal Service
Fund.
Sec. 604. Redesignation of the Postal Rate Commission.
Sec. 605. Financial transparency.
TITLE VII--EVALUATIONS
Sec. 701. Assessments of ratemaking, classification, and other provisions.
Sec. 702. Report on universal postal service and the postal monopoly.
Sec. 703. Study on equal application of laws to competitive products.
Sec. 704. Report on postal workplace safety and workplace-related
injuries.
Sec. 705. Study on recycled paper.
TITLE VIII--POSTAL SERVICE RETIREMENT AND HEALTH BENEFITS FUNDING
Sec. 802. Civil Service Retirement System.
Sec. 803. Health insurance.
Sec. 804. Repeal of disposition of savings provision.
Sec. 805. Effective dates.
TITLE IX--COMPENSATION FOR WORK INJURIES
Sec. 901. Temporary disability; continuation of pay.
Sec. 902. Disability retirement for postal employees.
TITLE X--MISCELLANEOUS
Sec. 1001. Employment of postal police officers.
Sec. 1002. Obsolete provisions.
Sec. 1003. Reduced rates.
Sec. 1004. Sense of Congress regarding Postal Service purchasing reform.
Sec. 1005. Contracts for transportation of mail by air.
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' refers to the physical delivery of letters,
printed matter, or packages weighing up to 70 pounds, including physical
acceptance, collection, sorting, transportation, or other functions ancillary
thereto;
`(6) `product' means a postal service with a distinct cost or market
characteristic for which a rate or rates are 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;
and
`(9) `competitive product' or `product in the competitive category
of mail' means a product subject to subchapter II of chapter 36; and
`(10) `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) Except as provided in section 411, nothing in this title shall
be considered to permit or require that the Postal Service provide any special
nonpostal or similar services.'.
(b) CONFORMING AMENDMENTS- (1) 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)'.
(2) Section 2003(b)(1) of title 39, United States Code, is amended
by striking `and nonpostal'.
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) first-class mail letters and sealed parcels;
`(2) first-class mail cards;
`(5) single-piece parcel post;
`(7) bound printed matter;
`(9) special services; and
`(10) single-piece international mail,
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
12 months after the date of 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, each of which shall be applied in conjunction with the others:
`(1) To reduce the administrative burden and increase the transparency
of the ratemaking process while affording reasonable opportunities for
interested parties to participate in that process.
`(2) To create predictability and stability in rates.
`(3) To maximize incentives to reduce costs and increase efficiency.
`(4) To enhance mail security and deter terrorism by promoting secure,
sender-identified mail.
`(5) To allow the Postal Service pricing flexibility, including the
ability to use pricing to promote intelligent mail and encourage increased
mail volume during nonpeak periods.
`(6) To assure adequate revenues, including retained earnings, to
maintain financial stability and meet the service standards established
under section 3691.
`(7) To allocate the total institutional costs of the Postal Service
equitably between market-dominant and competitive products.
`(8) To establish and maintain a just and reasonable schedule for
rates and classifications, however the objective under this paragraph
shall not be construed to prohibit the Postal Service from making changes
of unequal magnitude within, between, or among classes of mail.
`(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 requirement that each class of mail or type of mail service
bear the direct and indirect postal costs attributable to each class or
type of mail service through reliably identified causal relationships
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 importance of pricing flexibility to encourage increased
mail volume and operational efficiency;
`(8) 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;
`(9) 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;
`(10) the desirability of special classifications from the point
of view of both the user and of the Postal Service;
`(11) the educational, cultural, scientific, and informational value
to the recipient of mail matter;
`(12) the need for the Postal Service to increase its efficiency
and reduce its costs, including infrastructure costs, to help maintain
high quality, affordable, universal postal service; and
`(13) the policies of this title as well as such other factors as
the Commission determines appropriate.
`(1) IN GENERAL- The system for regulating rates and classes for
market-dominant products shall--
`(A) include an annual limitation on the percentage changes in
rates to be set by the Postal Regulatory Commission that will be equal
to the change in the Consumer Price Index for All Urban Consumers unadjusted
for seasonal variation over the most recent available 12-month period
preceding the date the Postal Service files notice of its intention
to increase rates;
`(B) establish a schedule whereby rates, when necessary and appropriate,
would change at regular intervals by predictable amounts;
`(C) not later than 45 days before the implementation of any adjustment
in rates under this section--
`(i) require the Postal Service to provide public notice of the
adjustment;
`(ii) provide an opportunity for review by the Postal Regulatory
Commission;
`(iii) provide for the Postal Regulatory Commission to notify
the Postal Service of any noncompliance of the adjustment with the
limitation under subparagraph (A); and
`(iv) require the Postal Service to respond to the notice provided
under clause (iii) and describe the actions to be taken to comply
with the limitation under subparagraph (A);
`(D) establish procedures whereby the Postal Service may adjust
rates not in excess of the annual limitations under subparagraph (A);
and
`(E) notwithstanding any limitation set under subparagraphs (A)
and (C), establish procedures whereby rates may be adjusted on an expedited
basis due to unexpected and extraordinary circumstances.
`(A) CLASSES OF MAIL- Except as provided under subparagraph (C),
the annual limitations under paragraph (1)(A) shall apply to a class
of mail, as defined in the Domestic Mail Classification Schedule as
in effect on the date of enactment of the Postal Accountability and
Enhancement Act.
`(B) ROUNDING OF RATES AND FEES- Nothing in this subsection shall
preclude the Postal Service from rounding rates and fees to the nearest
whole integer, if the effect of such rounding does not cause the overall
rate increase for any class to exceed the Consumer Price Index for All
Urban Consumers.
`(C) USE OF UNUSED RATE AUTHORITY-
`(i) DEFINITION- In this subparagraph, the term `unused rate
adjustment authority' means the difference between--
`(I) the maximum amount of a rate adjustment that the Postal
Service is authorized to make in any year subject to the annual
limitation under paragraph (1); and
`(II) the amount of the rate adjustment the Postal Service
actually makes in that year.
`(ii) AUTHORITY- Subject to clause (iii), the Postal Service
may use any unused rate adjustment authority for any of the 5 years
following the year such authority occurred.
`(iii) LIMITATIONS- In exercising the authority under clause
(ii) in any year, the Postal Service--
`(I) may use unused rate adjustment authority from more than
1 year;
`(II) may use any part of the unused rate adjustment authority
from any year;
`(III) shall use the unused rate adjustment authority from
the earliest year such authority first occurred and then each following
year; and
`(IV) for any class or service, may not exceed the annual limitation
under paragraph (1) by more than 2 percentage points.
`(e) WORKSHARE DISCOUNTS-
`(1) DEFINITION- In this subsection, 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 subsection (a).
`(2) REGULATIONS- As part of the regulations established under subsection
(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 a result of workshare activity, unless--
`(i) associated with a new postal service, a change to an existing
postal service, or with a new workshare initiative related to an existing
postal service; and
`(ii) 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;
`(B) a reduction in the discount would--
`(i) 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;
`(ii) result in a further increase in the rates paid by mailers
not able to take advantage of the discount; or
`(iii) impede the efficient operation of the Postal Service;
`(C) the amount of the discount above costs avoided--
`(i) is necessary to mitigate rate shock; and
`(ii) will be phased out over time; or
`(D) the discount is provided in connection with subclasses of
mail consisting exclusively of mail matter of educational, cultural,
scientific, or informational value.
`(3) 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--
`(A) explains the Postal Service's reasons for establishing or
maintaining the rate;
`(B) sets forth the data, economic analyses, and other information
relied on by the Postal Service to justify the rate; and
`(C) 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.
`(f) Transition Rule- For the 1-year period beginning on the date of
enactment of this section, 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 enactment of this section. Proceedings initiated to consider
a request for a recommended decision filed by the Postal Service during
that 1-year period shall be completed in accordance with subchapter II of
chapter 36 of this title and implementing regulations, as in effect before
the date of 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 601, 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) bulk international mail; and
subject to subsection (d) and 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 through reliably identified causal relationships.
`(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.
`(d) LIMITATION- Notwithstanding any other provision of this section,
nothing in this subchapter shall be considered to apply with respect to
any product then currently in the market-dominant category of mail.
`Sec. 3632. Action of the Governors
`(a) AUTHORITY TO ESTABLISH RATES AND CLASSES- The Governors, with
the written concurrence of a majority of all of the Governors then holding
office, 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) PUBLIC NOTICE; REVIEW; AND COMPLIANCE- Not later than 30 days
before the date of implementation of any adjustment in rates under this
section--
`(A) the Governors shall provide public notice of the adjustment
and an opportunity for review by the Postal Regulatory Commission;
`(B) the Postal Regulatory Commission shall notify the Governors
of any noncompliance of the adjustment with section 3633; and
`(C) the Governors shall respond to the notice provided under subparagraph
(B) and describe the actions to be taken to comply with section 3633.
`(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 enactment
of this section.
`Sec. 3633. Provisions applicable to rates for competitive products
`(a) IN GENERAL- The Postal Regulatory Commission shall, within 180
days after the date of enactment of this section, promulgate (and may from
time to time thereafter revise) regulations to--
`(1) prohibit the subsidization of competitive products by market-dominant
products;
`(2) ensure that each competitive product covers its costs attributable;
and
`(3) ensure that all competitive products collectively cover their
share of the institutional costs of the Postal Service.
`(b) REVIEW OF MINIMUM CONTRIBUTION- Five years after the date of enactment
of this section, and every 5 years thereafter, the Postal Regulatory Commission
shall conduct a review to determine whether the institutional costs contribution
requirement under subsection (a)(3) should be retained in its current form,
modified, or eliminated. In making its determination, the Commission shall
consider all relevant circumstances, including the prevailing competitive
conditions in the market, and the degree to which any costs are uniquely
or disproportionately associated with any competitive products.'.
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). Any test
that solely affects products currently classified as competitive, or which
provides services ancillary to only competitive products, shall be presumed
to be in the competitive product category without regard to whether a
similar ancillary product exists for market-dominant products.
`(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 only be tested under this section
if the total revenues that are anticipated, or in fact received, by the
Postal Service from such product do not exceed $10,000,000 in any year,
subject to paragraph (2) and subsection (g).
`(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 to meet 1 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 substantial 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 under 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) PROHIBITION- Except as provided in section 3641, no product that
involves the physical delivery of letters, printed matter, or 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--
(1) by striking the heading for subchapter IV and inserting the following:
`SUBCHAPTER V--POSTAL SERVICES, COMPLAINTS, AND JUDICIAL REVIEW';
and
(2) by striking the heading for subchapter V and inserting the following:
`SUBCHAPTER VI--GENERAL'.
(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, 3633, and 3691.
`(b) 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, RATES, AND SERVICE- 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 to the report as the Commission may require under
subsection (e))--
`(1) which shall analyze costs, revenues, rates, and quality of service
in sufficient detail to demonstrate that 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) product information, including mail volumes; and
`(B) measures of the service afforded by the Postal Service in
connection with such product, including--
`(i) the level of service (described in terms of speed of delivery
and reliability) provided; and
`(ii) the degree of customer satisfaction with the service provided.
Before submitting a report under this subsection (including any annex
to the report and the information required under subsection (b)), the
Postal Service shall have the information contained in such report (and
annex) audited by the Inspector General. The results of any such audit
shall be submitted along with the report to which it pertains.
`(b) INFORMATION RELATING TO WORKSHARE DISCOUNTS- 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:
`(1) The per-item cost avoided by the Postal Service by virtue of
such discount.
`(2) The percentage of such per-item cost avoided that the per-item
workshare discount represents.
`(3) The per-item contribution made to institutional costs.
`(c) SERVICE AGREEMENTS AND MARKET TESTS- In carrying out subsections
(a) and (b) with respect to service agreements and 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 service agreement and 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 to the report) 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 timely, 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) such 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 under
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 the Postal Service is
required to make under this section in a year, copies of its then most recent--
`(1) comprehensive statement under section 2401(e);
`(2) strategic plan under section 2802;
`(3) performance plan under section 2803; and
`(4) 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); or
`(2) whether any service standards in effect during such year were
not met.
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 any appropriate remedial action authorized
by section 3662(c).
`(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 under paragraphs (1)
and (2) of subsection (b)) during the year to which such determination relates.'.
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- Any interested party (including an officer of the
Postal Regulatory Commission representing the interests of the general public)
who believes the Postal Service is not operating in conformance with the
requirements of the provisions of chapter 1 (except section 101(c)), sections
401, 403, 404, 404a, 601, or this chapter (or regulations promulgated under
any of those provisions) 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)--
`(i) upon a finding that such complaint raises substantial and
material issues of fact or law, begin proceedings on such complaint;
or
`(ii) issue an order dismissing the complaint; and
`(B) with respect to any action taken under subparagraph (A) (i)
or (ii), issue a written statement setting forth the bases of its determination.
`(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 under 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 upon clear and convincing evidence the complaint
to be justified, it shall order that the Postal Service take such action
as is necessary to achieve compliance with the applicable requirements and
to remedy the effects of any noncompliance.
`(d) 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 from 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, including the Postal Service, 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.
`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. 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
`Sec.
`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.
`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.
`SUBCHAPTER VII--MODERN SERVICE STANDARDS
`3691. Establishment of modern service standards.'.
TITLE III--MODERN SERVICE STANDARDS
SEC. 301. ESTABLISHMENT OF MODERN SERVICE STANDARDS.
Chapter 36 of title 39, United States Code, as amended by this Act,
is further amended by adding at the end the following:
`SUBCHAPTER VII--MODERN SERVICE STANDARDS
`Sec. 3691. Establishment of modern service standards
`(a) AUTHORITY GENERALLY- Not later than 12 months after the date of
enactment of this section, the Postal Service shall, in consultation with
the Postal Regulatory Commission, by regulation establish (and may from
time to time thereafter by regulation revise) a set of service standards
for market-dominant products consistent with the Postal Service's universal
service obligation as defined in sections 101 (a) and (b) and 403.
`(b) OBJECTIVES- Such standards shall be designed to achieve the following
objectives:
`(1) To enhance the value of postal services to both senders and
recipients.
`(2) To preserve regular and effective access to postal services
in all communities, including those in rural areas or where post offices
are not self-sustaining.
`(3) To reasonably assure Postal Service customers delivery reliability,
speed and frequency consistent with reasonable rates and best business
practices.
`(4) To provide a system of objective external performance measurements
for each market-dominant product as a basis for measurement of Postal
Service performance.
`(c) FACTORS- In establishing or revising such standards, the Postal
Service shall take into account--
`(1) the actual level of service that Postal Service customers receive
under any service guidelines previously established by the Postal Service
or service standards established under this section;
`(2) the degree of customer satisfaction with Postal Service performance
in the acceptance, processing and delivery of mail;
`(3) the needs of Postal Service customers, including those with
physical impairments;
`(4) mail volume and revenues projected for future years;
`(5) the projected growth in the number of addresses the Postal Service
will be required to serve in future years;
`(6) the current and projected future cost of serving Postal Service
customers;
`(7) the effect of changes in technology, demographics, and population
distribution on the efficient and reliable operation of the postal delivery
system; and
`(8) the policies of this title and such other factors as the Postal
Service determines appropriate.
`(d) REVIEW- The regulations promulgated pursuant to this section (and
any revisions thereto) shall be subject to review upon complaint under sections
3662 and 3663.'.
SEC. 302. POSTAL SERVICE PLAN.
(a) IN GENERAL- Within 6 months after the establishment of the service
standards under section 3691 of title 39, United States Code, as added by
this Act, the Postal Service shall, in consultation with the Postal Regulatory
Commission, develop and submit to Congress a plan for meeting those standards.
(b) CONTENTS- The plan under this section shall--
(1) establish performance goals;
(2) describe any changes to the Postal Service's processing, transportation,
delivery, and retail networks necessary to allow the Postal Service to
meet the performance goals;
(3) describe any changes to planning and performance management documents
previously submitted to Congress to reflect new performance goals; and
(4) contain the matters relating to postal facilities provided under
subsection (c).
(1) FINDINGS- Congress finds that--
(A) the Postal Service has more than 400 logistics facilities,
separate from its post office network;
(B) as noted by the President's Commission on the United States
Postal Service, the Postal Service has more facilities than it needs
and the streamlining of this distribution network can pave the way for
the potential consolidation of sorting facilities and the elimination
of excess costs;
(C) the Postal Service has always revised its distribution network
to meet changing conditions and is best suited to address its operational
needs; and
(D) Congress strongly encourages the Postal Service to--
(i) expeditiously move forward in its streamlining efforts; and
(ii) keep unions, management associations, and local elected
officials informed as an essential part of this effort and abide by
any procedural requirements contained in the national bargaining agreements.
(2) IN GENERAL- The Postal Service plan shall include a description
of--
(A) the long-term vision of the Postal Service for rationalizing
its infrastructure and workforce; and
(B) how the Postal Service intends to implement that vision.
(3) CONTENT OF FACILITIES PLAN- The plan under this subsection shall
include--
(A) a strategy for how the Postal Service intends to rationalize
the postal facilities network and remove excess processing capacity
and space from the network, including estimated timeframes, criteria,
and processes to be used for making changes to the facilities network,
and the process for engaging policy makers and the public in related
decisions;
(B) a discussion of what impact any facility changes may have on
the postal workforce and whether the Postal Service has sufficient flexibility
to make needed workforce changes;
(C) an identification of anticipated costs, cost savings, and other
benefits associated with the infrastructure rationalization alternatives
discussed in the plan; and
(D) procedures that the Postal Service will use to--
(i) provide adequate public notice to communities potentially
affected by a proposed rationalization decision;
(ii) make available, upon request, any data, analyses, or other
information considered by the Postal Service in making the proposed
decision;
(iii) afford affected persons ample opportunity to provide input
on the proposed decision; and
(iv) take such comments into account in making a final decision.
(A) IN GENERAL- Not later than 90 days after the end of each fiscal
year, the Postal Service shall prepare and submit a report to Congress
on how postal decisions have impacted or will impact rationalization
plans.
(B) CONTENTS- Each report under this paragraph shall include--
(i) an account of actions taken during the preceding fiscal year
to improve the efficiency and effectiveness of its processing, transportation,
and distribution networks while preserving the timely delivery of
postal services, including overall estimated costs and cost savings;
(ii) an account of actions taken to identify any excess capacity
within its processing, transportation, and distribution networks and
implement savings through realignment or consolidation of facilities
including overall estimated costs and cost savings;
(iii) an estimate of how postal decisions related to mail changes,
security, automation initiatives, worksharing, information technology
systems, excess capacity, consolidating and closing facilities, and
other areas will impact rationalization plans;
(iv) identification of any statutory or regulatory obstacles
that prevented or will prevent or hinder the Postal Service from taking
action to realign or consolidate facilities; and
(v) such additional topics and recommendations as the Postal
Service considers appropriate.
(5) EXISTING EFFORTS- Effective on the date of enactment of this
Act, the Postal Service may not close or consolidate any processing or
logistics facilities without using procedures for public notice and input
consistent with those described under paragraph (3)(D).
(d) ALTERNATE RETAIL OPTIONS- The Postal Service plan shall include
plans to expand and market retail access to postal services, in addition
to post offices, including--
(5) Postal Service employees on delivery routes;
(6) retail facilities in which overhead costs are shared with private
businesses and other government agencies; or
(7) any other nonpost office access channel providing market retail
access to postal services.
(e) REEMPLOYMENT ASSISTANCE AND RETIREMENT BENEFITS- The Postal Service
plan shall include--
(1) a plan under which reemployment assistance shall be afforded
to employees displaced as a result of the automation of any of its functions
or the closing and consolidation of any of its facilities; and
(2) a plan, developed in consultation with the Office of Personnel
Management, to offer early retirement benefits.
(f) INSPECTOR GENERAL REPORT-
(1) IN GENERALBefore submitting the plan under subsection (a) and
each annual report under subsection (c) to Congress, the Postal Service
shall submit the plan and each annual report to the Inspector General
of the United States Postal Service in a timely manner to carry out this
subsection.
(2) REPORT- The Inspector General shall prepare a report describing
the extent to which the Postal Service plan and each annual report under
subsection (c)--
(A) are consistent with the continuing obligations of the Postal
Service under title 39, United States Code;
(B) provide for the Postal Service to meet the service standards
established under section 3691 of title 39, United States Code; and
(C) allow progress toward improving overall efficiency and effectiveness
consistent with the need to maintain universal postal service at affordable
rates.
(g) CONTINUED AUTHORITY- Nothing in this section shall be construed
to prohibit the Postal Service from implementing any change to its processing,
transportation, delivery, and retail networks under any authority granted
to the Postal Service for those purposes.
TITLE IV--PROVISIONS RELATING TO FAIR COMPETITION
SEC. 401. 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)(1) In this subsection, the term `costs attributable' has the meaning
given such term by section 3631.
`(2) 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--
`(A) costs attributable to competitive products; and
`(B) all other costs incurred by the Postal Service, to the extent
allocable to competitive products.
`(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 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, the Postal Service may request
the investment of such amounts as the Postal Service determines 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 the Postal Service determines
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)(A) 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 the Postal Service determines necessary to provide for competitive
products and deposit such amounts in the Competitive Products Fund.
`(B) Subject to paragraph (5), any borrowings by the Postal Service
under subparagraph (A) shall be supported and serviced by--
`(i) the revenues and receipts from competitive products and the
assets related to the provision of competitive products (as determined
under subsection (h)); or
`(ii) 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).
`(2) The Postal Service may enter into binding covenants with the holders
of such obligations, and with any trustee under any agreement entered into
in connection with the issuance of such obligations 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) Obligations issued by the Postal Service under this subsection--
`(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 such obligations are issued under
this subsection, 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), 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)(A) Subject to subparagraph (B), the Postal Service shall make
payments of principal, or interest, or both on obligations issued under
this subsection from--
`(i) revenues and receipts from competitive products and assets related
to the provision of competitive products (as determined under subsection
(h)); or
`(ii) 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).
`(B) Based on the audited financial statements for the most recently
completed fiscal year, the total assets of the Competitive Products Fund
may not be less than the amount determined by multiplying--
`(i) the quotient resulting from the total revenue of the Competitive
Products Fund divided by the total revenue of the Postal Service; and
`(ii) 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 (or settlement of a claim) against the Postal Service
or the Government of the United States shall be paid out of the Competitive
Products Fund to the extent that the judgment or claim arises out of activities
of the Postal Service in the provision of competitive products.
`(h)(1)(A) The Secretary of the Treasury, in consultation with the
Postal Service and an independent, certified public accounting firm and
other advisors as the Secretary considers appropriate, shall develop recommendations
regarding--
`(i) 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 competitive products, including
the capital and operating costs incurred by the Postal Service in providing
such competitive products; and
`(II) subject to subsection (e)(5), preventing the subsidization
of such products by market-dominant products; and
`(ii) the substantive and procedural rules that should be followed
in determining the assumed Federal income tax on competitive products
income of the Postal Service for any year (within the meaning of section
3634).
`(B) Not earlier than 6 months after the date of enactment of this
section, and not later than 12 months after such date, the Secretary of
the Treasury shall submit the recommendations under subparagraph (A) to
the Postal Regulatory Commission.
`(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)(i) 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 under paragraph (1)(A)(ii); 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.
`(ii) Final rules under this subparagraph shall be issued not later
than 12 months after the date on which recommendations are submitted under
paragraph (1) (or by such later date on which the Commission and the Postal
Service may agree). The Commission may revise such rules.
`(C)(i) Reports described under subparagraph (B)(i)(III) shall be submitted
at such time and in such form, and shall include such information, as the
Commission by rule requires.
`(ii) 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 information under subparagraph (B)(i)(III)
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) such revisions are, in the judgment of the Commission, otherwise
necessitated by the public interest.
`(D) A copy of each report described under subparagraph (B)(i)(III)
shall be submitted by the Postal Service to the Secretary of the Treasury
and the Inspector General of the United States Postal Service.
`(i)(1) The Postal Service shall submit an annual report to the Secretary
of the Treasury concerning the operation of the Competitive Products Fund.
The report shall address such matters as risk limitations, reserve balances,
allocation or distribution of moneys, liquidity requirements, and measures
to safeguard against losses.
`(2) A copy of the most recent report submitted under paragraph (1)
shall be included in the annual report submitted by the Postal Regulatory
Commission under section 3652(g).'.
(2) CLERICAL AMENDMENT- The table of sections 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- The term `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), in the first sentence, by inserting `or
2011' after `section 2005';
(i) in the first sentence, by inserting `under section 2005'
before `in such amounts'; and
(ii) in the second sentence, by inserting `under section 2005'
before `in excess of such amount.'; and
(C) in subsection (c), by inserting `or 2011(e)(4)(E)' after `section
2005(d)(5)'.
SEC. 402. 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. 403. 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 postal 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. 404. 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 product which is not reserved to the United States under
section 1696 of title 18, 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.
For purposes of the preceding sentence, any private carriage of mail
allowable by virtue of section 601 shall not be considered a service reserved
to the United States under section 1696 of title 18.
`(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 enactment of this subsection.
`(f) To the extent that the Postal Service engages in conduct with
respect to the provision of competitive products, it shall be considered
a person for the purposes of the Federal bankruptcy laws.
`(g)(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 1 of the nationally recognized
model building codes and with other applicable nationally recognized codes.
To the extent practicable, model building codes should meet the voluntary
consensus criteria established for codes and standards as required in the
National Technology Transfer and Advancement Act of 1995 as defined in Office
of Management and Budget Circular A1190. For purposes of life safety, the
Postal Service shall continue to comply with the most current edition of
the Life Safety Code of the National Fire Protection Association (NFPA 101).
`(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.
`(h)(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.
`(i) 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. 405. 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
`(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 shall have the power to conclude postal treaties and conventions,
except that the Secretary may not conclude any postal treaty or convention
if such treaty or convention would, with respect to any competitive product,
grant an undue or unreasonable preference to the Postal Service, a private
provider of international postal 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, 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, should consider 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 Homeland
Security and Governmental Affairs of the Senate and the Committee on Government
Reform of the House of Representatives;
`(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) Before concluding any postal treaty or convention 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 its views on whether such rate or classification is consistent
with the standards and criteria established by the Commission under section
3622.
`(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 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 binding under 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 Customs Service 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) In exercising the authority under subsection (b) to conclude new
postal treaties and conventions related to international postal services
and to renegotiate such treaties and conventions, 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 in carrying
out this paragraph.
`(3) The provisions of this subsection shall take effect 6 months after
the date of enactment of this subsection or such earlier date as the Customs
Service 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.
TITLE V--GENERAL PROVISIONS
SEC. 501. QUALIFICATION AND TERM REQUIREMENTS FOR GOVERNORS.
(1) 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 shall be chosen solely on the basis of
their experience in the fields of public service, law or accounting or
on their demonstrated ability in managing organizations or corporations
(in either the public or private sector) of substantial size. The Governors
shall not be representatives of specific interests using the Postal Service,
and may be removed only for cause.'.
(2) APPLICABILITY- The amendment made by paragraph (1) shall not
affect the appointment or tenure of any person serving as a Governor of
the United States Postal Service under an appointment made before the
date of enactment of this Act 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 enactment
of this Act.
(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.'.
(1) IN GENERAL- Section 202(b) of title 39, United States code, is
amended in the first sentence by striking `9 years' and inserting `7 years'.
(A) CONTINUATION BY INCUMBENTS- The amendment made by paragraph
(1) shall not affect the tenure of any person serving as a Governor
of the United States Postal Service on the date of enactment of this
Act and such person may continue to serve the remainder of the applicable
term.
(B) VACANCY BY INCUMBENT BEFORE 5 YEARS OF SERVICE- If a person
who is serving as a Governor of the United States Postal Service on
the date of enactment of this Act resigns, is removed, or dies before
the expiration of the 9-year term of that Governor, and that Governor
has served less than 5 years of that term, the resulting vacancy in
office shall be treated as a vacancy in a 5-year term.
(C) VACANCY BY INCUMBENT AFTER 5 YEARS OF SERVICE- If a person
who is serving as a Governor of the United States Postal Service on
the date of enactment of this Act resigns, is removed, or dies before
the expiration of the 9-year term of that Governor, and that Governor
has served 5 years or more of that term, that term shall be deemed to
have been a 5-year term beginning on its commencement date for purposes
of determining vacancies in office. Any appointment to the vacant office
shall be for a 5-year term beginning at the end of the original 9-year
term determined without regard to the deeming under the preceding sentence.
Nothing in this subparagraph shall be construed to affect any action
or authority of any Governor or the Board of Governors during any portion
of a 9-year term deemed to be 5-year term under this subparagraph.
(1) IN GENERAL- Section 202(b) of title 39, United States Code, is
amended--
(A) by inserting `(1)' after `(b)'; and
(B) by adding at the end the following:
`(2) No person may serve more than 2 terms as a Governor.'.
(2) APPLICABILITY- The amendments made by paragraph (1) shall not
affect the tenure of any person serving as a Governor of the United States
Postal Service on the date of enactment of this Act with respect to the
term which that person is serving on that date. Such person may continue
to serve the remainder of the applicable term, after which the amendments
made by paragraph (1) shall apply.
SEC. 502. 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) INCREASE RELATING TO OBLIGATIONS ISSUED FOR CAPITAL IMPROVEMENTS-
Section 2005(a)(1) of title 39, United States Code, is amended by striking
the third sentence.
(c) AMOUNTS WHICH MAY BE PLEDGED-
(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. 503. 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 United States Postal Service (as in effect on July 1, 2001) that
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. 504. 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. 505. NONINTERFERENCE WITH COLLECTIVE BARGAINING AGREEMENTS.
(a) LABOR DISPUTES- Section 1207 of title 39, United States Code, is
amended to read as follows:
`Sec. 1207. Labor disputes
`(a) If there is a collective-bargaining agreement in effect, no party
to such agreement shall terminate or modify such agreement unless the party
desiring such termination or modification serves written notice upon the
other party to the agreement of the proposed termination or modification
not less than 90 days prior to the expiration date thereof, or not less
than 90 days prior to the time it is proposed to make such termination or
modification. The party serving such notice shall notify the Federal Mediation
and Conciliation Service of the existence of a dispute within 45 days after
such notice, if no agreement has been reached by that time.
`(b) If the parties fail to reach agreement or to adopt a procedure
providing for a binding resolution of a dispute by the expiration date of
the agreement in effect, or the date of the proposed termination or modification,
the Director of the Federal Mediation and Conciliation Service shall 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.
`(c)(1) If no agreement is reached within 60 days after the expiration
or termination of the agreement or the date on which the agreement became
subject to modification under subsection (a) of this section, or if the
parties decide upon arbitration but do not agree upon the procedures therefore,
an arbitration board shall be established consisting of 3 members, 1 of
whom shall be selected by the Postal Service, 1 by the bargaining representative
of the employees, and the third by the 2 thus selected. If either of the
parties fails to select a member, or if the members chosen by the parties
fail to agree on the third person within 5 days after their first meeting,
the selection shall be made from a list of names provided by the Director.
This list shall consist of not less then 9 names of arbitrators of nationwide
reputation and professional nature, who are also members of the National
Academy of Arbitrators, and whom the Director has determined are available
and willing to serve.
`(2) The arbitration board shall give the parties a full and fair hearing,
including an opportunity to present evidence in support of their claims,
and an opportunity to present their case in person, by counsel or by other
representative as they may elect. Decisions of the arbitration board shall
be conclusive and binding upon the parties. The arbitration board shall
render its decision within 45 days after its appointment.
`(3) Costs of the arbitration board and mediation shall be shared equally
by the Postal Service and the bargaining representative.
`(d) In the case of a bargaining unit whose recognized collective-bargaining
representative does not have an agreement with the Postal Service, if the
parties fail to reach the agreement within 90 days after the commencement
of collective bargaining, a mediator shall be appointed in accordance with
the terms in subsection (b) of this section, unless the parties have previously
agreed to another procedure for a binding resolution of their differences.
If the parties fail to reach agreement within 180 days after the commencement
of collective bargaining, and if they have not agreed to another procedure
for binding resolution, an arbitration board shall be established to provide
conclusive and binding arbitration in accordance with the terms of subsection
(c) of this section.'.
(b) NONINTERFERENCE WITH COLLECTIVE BARGAINING AGREEMENTS- Except as
otherwise provided by the amendment made by subsection (a), nothing in 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.
(c) 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. 506. BONUS AUTHORITY.
Chapter 36 of title 39, United States Code, is amended by inserting
after section 3685 the following:
`Sec. 3686. Bonus authority
`(a) IN GENERAL- The Postal Service may establish 1 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 of the Postal Service in such form and manner as
the Board requires; and
`(B) the Board of Governors shall approve any such request if the
Board 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 of the Postal
Service 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) REPORTING REQUIREMENT RELATING TO BONUSES OR OTHER REWARDS- 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 reward during
such period which would not have been allowable but for the provisions
of subsection (b);
`(2) the amount of the bonus or other reward; and
`(3) the amount by which the limitation referred to in subsection
(b)(1) was exceeded as a result of such bonus or other reward.'.
TITLE VI--ENHANCED REGULATORY COMMISSION
SEC. 601. 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.
`505. Officer of the Postal Regulatory Commission representing the
general public.
`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 enhanced 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) No Commissioner shall be financially interested in any enterprise
in the private sector of the economy engaged in the delivery of mail matter.
`(c) 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 (f).
`(d) One of the Commissioners shall be designated as Chairman by, and
shall serve in the position of Chairman at the pleasure of, the President.
`(e) 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.
`(f) The Commissioners shall serve for terms of 6 years.';
(2) by striking, in subchapter I of chapter 36 (as in effect before
the amendment made by section 201(c)), the heading for such subchapter
I and all that follows through section 3602;
(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)); and
(4) by adding after such 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 who shall represent
the interests of the general public.'.
(b) 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 604)
under an appointment made before the date of 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.
(c) 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:
`5. Postal Regulatory Commission
501'
SEC. 602. AUTHORITY FOR POSTAL REGULATORY COMMISSION TO ISSUE SUBPOENAS.
Section 504 of title 39, United States Code (as so redesignated by
section 601) 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 or to obtain information to be used to
prepare a report 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 under 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 prohibit the Commission from publicly
disclosing relevant information in furtherance of its duties under this
title, provided that 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 in maintaining the financial transparency
of a government establishment competing in commercial markets.
`(B) Paragraph (2) shall not prevent the Commission from requiring
production of information in the course of any discovery procedure established
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 information
furnished to any party.'.
SEC. 603. AUTHORIZATION OF APPROPRIATIONS FROM THE POSTAL SERVICE
FUND.
(a) POSTAL REGULATORY COMMISSION- Subsection (d) of section 504 of
title 39, United States Code (as so redesignated by section 601) 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.'.
(b) OFFICE OF INSPECTOR GENERAL OF THE UNITED STATES POSTAL SERVICE-
Section 8G(f) of the Inspector General Act of 1978 (5 U.S.C. App.) is amended--
(1) by redesignating paragraph (4) as paragraph (5);
(2) by redesignating the second paragraph (3) (relating to employees
and labor organizations) as paragraph (4); and
(3) by adding at the end the following:
`(6) 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.'.
(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 8G(f) 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 under
section 504(d); and (C) all expenses of the Office of Inspector General,
subject to the availability of amounts appropriated under section 8G(f)
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, and the Inspector General Act of 1978 (5 U.S.C. App.) 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. 604. 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 and 504 (as so redesignated by section
601), 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. 605. FINANCIAL TRANSPARENCY.
(a) IN GENERAL- Section 101 of title 39, United States Code, is amended--
(1) by redesignating subsections (d) through (g) as subsections (e)
through (h), respectively; and
(2) by inserting after subsection (c) the following:
`(d) As an independent establishment of the executive branch of the
Government of the United States, the Postal Service shall be subject to
a high degree of transparency 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) FINANCIAL REPORTING REQUIREMENTS AND ENFORCEMENT POWERS APPLICABLE
TO POSTAL SERVICE- Section 503 of title 39, United States Code (as so redesignated
by section 601 and 604) is amended by--
(1) inserting `(a)' before `The Postal Regulatory Commission shall
promulgate'; and
(2) adding at the end the following:
`(b)(1) Beginning with the first full fiscal year following the date
of enactment of the Postal Accountability and Enhancement Act, the Postal
Service shall file with the Postal Regulatory Commission --
`(A) within 35 days after the end of each fiscal quarter, a quarterly
report containing the information prescribed in Form 10-Q of the Securities
and Exchange Commission under section 13 of the Securities Exchange Act
of 1934 (15 U.S.C. 78m), or any revised or successor form;
`(B) within 60 days after the end of each fiscal year, an annual
report containing the information prescribed in Form 10-K of the Securities
and Exchange Commission under section 13 of the Securities Exchange Act
of 1934 (15 U.S.C. 78m), or any revised or successor form; and
`(C) periodic reports within the time frame and containing the information
prescribed in Form 8-K of the Securities and Exchange Commission under
section 13 of the Securities Exchange Act of 1934 (15 U.S.C. 78m), or
any revised or successor form.
`(2) For purposes of preparing the reports required under 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 applicable.
`(3) For purposes of preparing the reports required under paragraph
(1), 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; Public Law 107-204) beginning with fiscal year
2007 and in each fiscal year thereafter.
`(c)(1) The reports required under subsection (b)(1)(B) shall include,
with respect to the financial obligations of the Postal Service under chapters
83, 84, and 89 of title 5 for retirees of the Postal Service--
`(A) the funded status of such obligations of the Postal Service;
`(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 cost and the accumulated obligation of
the Postal Service under chapter 89 of title 5 for retirees of the Postal
Service;
`(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 the fiscal year 2007 and in each fiscal year
thereafter, for purposes of the reports required under subsection (b)(1)
(A) and (B), 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.
`(d) For purposes of the annual reports required under subsection (b)(1)(B),
the Postal Service shall obtain an opinion from an independent auditor on
whether the information listed under subsection (c) is fairly stated in
all material respects, either in relation to the basic financial statements
as a whole or on a stand-alone basis.
`(e) 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
subsection (b)(1)(B).
`(f) 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 by
the Commission under this section whenever it shall appear that the data--
`(1) have become significantly inaccurate;
`(2) can be significantly improved; or
`(3) are not cost beneficial.'.
TITLE VII--EVALUATIONS
SEC. 701. ASSESSMENTS OF RATEMAKING, CLASSIFICATION, AND OTHER PROVISIONS.
(a) IN GENERAL- The Postal Regulatory Commission shall, at least every
3 years, submit a report to the President and Congress concerning--
(1) the operation of the amendments made by this 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 the report and to submit written comments on the report. Any comments
timely received from the Postal Service under the preceding sentence shall
be attached to the report submitted under subsection (a).
SEC. 702. REPORT ON UNIVERSAL POSTAL SERVICE AND THE POSTAL MONOPOLY.
(a) REPORT BY THE POSTAL REGULATORY COMMISSION-
(1) IN GENERAL- Not later than 24 months after the date of enactment
of this Act, the Postal Regulatory Commission shall submit a report to
the President and Congress on universal postal service and the postal
monopoly in the United States (in this section referred to as `universal
service and the postal monopoly'), including the monopoly on the delivery
of mail and on access to mailboxes.
(2) CONTENTS- The report under this subsection shall include--
(A) a comprehensive review of the history and development of universal
service and the postal monopoly, including how the scope and standards
of universal service and the postal monopoly have evolved over time
for the Nation and its urban and rural areas;
(B) the scope and standards of universal service and the postal
monopoly 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;
(C) a description of any geographic areas, populations, communities
(including both urban and rural 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; and
(D) the scope and standards of universal service and the postal
monopoly likely to be required in the future in order to meet the needs
and expectations of the United States public, including all types of
mail users, based on discussion of such assumptions, alternative sets
of assumptions, and analyses as the Postal Service considers plausible.
(b) RECOMMENDED CHANGES TO UNIVERSAL SERVICE AND THE MONOPOLY- The
Postal Regulatory Commission shall include in the report under subsection
(a), and in all reports submitted under section 701 of this Act--
(1) any recommended changes to universal service and the postal monopoly
as the Commission considers appropriate, including changes that the Commission
may implement under current law and changes that would require changes
to current law, with estimated effects of the recommendations on the service,
financial condition, rates, and security of mail provided by the Postal
Service;
(2) with respect to each recommended change described under paragraph
(1)--
(A) an estimate of the costs of the Postal Service attributable
to the obligation to provide universal service under current law; and
(B) an analysis of the likely benefit of the current postal monopoly
to the ability of the Postal Service to sustain the current scope and
standards of universal service, including estimates of the financial
benefit of the postal monopoly to the extent practicable, under current
law; and
(3) such additional topics and recommendations as the Commission
considers appropriate, with estimated effects of the recommendations on
the service, financial condition, rates, and the security of mail provided
by the Postal Service.
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 and Congress, and to the Postal Regulatory Commission,
within 1 year after the date of 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 similar products provided by private companies.
(b) RECOMMENDATIONS- The Federal Trade Commission shall include such
recommendations as it considers appropriate for bringing such legal discrimination
to an end, and in the interim, to account under section 3633 of title 39,
United States Code (as added by this Act), for the net economic advantages
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 REGULATION- The Postal Regulatory Commission
shall take into account the recommendations of the Federal Trade Commission
in promulgating or revising the regulations required under section 3633
of title 39, United States Code.
SEC. 704. REPORT ON POSTAL WORKPLACE SAFETY AND WORKPLACE-RELATED
INJURIES.
(a) REPORT BY THE INSPECTOR GENERAL-
(1) IN GENERAL- Not later than 6 months after the enactment of this
Act, the Inspector General of the United States Postal Service shall submit
a report to Congress and the Postal Service that--
(A) details and assesses any progress the Postal Service has made
in improving workplace safety and reducing workplace-related injuries
nationwide; and
(B) identifies opportunities for improvement that remain with respect
to such improvements and reductions.
(2) CONTENTS- The report under this subsection shall also--
(A) discuss any injury reduction goals established by the Postal
Service;
(B) describe the actions that the Postal Service has taken to improve
workplace safety and reduce workplace-related injuries, and assess how
successful the Postal Service has been in meeting its injury reduction
goal; and
(C) identify areas where the Postal Service has failed to meet
its injury reduction goals, explain the reasons why these goals were
not met, and identify opportunities for making further progress in meeting
these goals.
(b) REPORT BY THE POSTAL SERVICE-
(1) REPORT TO CONGRESS- Not later than 6 months after receiving the
report under subsection (a), the Postal Service shall submit a report
to Congress detailing how it plans to improve workplace safety and reduce
workplace-related injuries nationwide, including goals and metrics.
(2) PROBLEM AREAS- The report under this subsection shall also include
plans, developed in consultation with the Inspector General and employee
representatives, including representatives of each postal labor union
and management association, for addressing the problem areas identified
by the Inspector General in the report under subsection (a)(2)(C).
SEC. 705. STUDY ON RECYCLED PAPER.
(a) IN GENERAL- Within 12 months after the date of enactment of this
Act, the Government Accountability Office shall study and submit to the
Congress, the Board of Governors of the Postal Service, and to the Postal
Regulatory Commission a report concerning--
(1) the economic and environmental efficacy of establishing rate
incentives for mailers linked to the use of recycled paper;
(2) a description of the accomplishments of the Postal Service in
each of the preceding 5 years involving recycling activities, including
the amount of annual revenue generated and savings achieved by the Postal
Service as a result of its use of recycled paper and other recycled products
and its efforts to recycle undeliverable and discarded mail and other
materials; and
(3) additional opportunities that may be available for the United
States Postal Service to engage in recycling initiatives and the projected
costs and revenues of undertaking such opportunities.
(b) RECOMMENDATIONS- The report shall include recommendations for any
administrative or legislative actions that may be appropriate.
TITLE VIII--POSTAL SERVICE RETIREMENT AND HEALTH BENEFITS FUNDING
SEC. 801. SHORT TITLE.
This title may be cited as the `Postal Civil Service Retirement and
Health Benefits Funding Amendments of 2004'.
SEC. 802. CIVIL SERVICE RETIREMENT SYSTEM.
(a) IN GENERAL- Chapter 83 of title 5, United States Code, is amended--
(1) in section 8334(a)(1)(B), by striking clause (ii) and inserting
the following:
`(ii) In the case of an employee of the United States Postal Service,
no amount shall be contributed under this subparagraph.'; and
(2) by amending section 8348(h) to read as follows:
`(h)(1) In this subsection, the term `Postal surplus or supplemental
liability' means the estimated difference, as determined by the Office,
between--
`(A) the actuarial present value of all future benefits payable from
the Fund under this subchapter to current or former employees of the United
States Postal Service and attributable to civilian employment with the
United States Postal Service; and
`(i) the actuarial present value of deductions to be withheld from
the future basic pay of employees of the United States Postal Service
currently subject to this subchapter under section 8334;
`(ii) that portion of the Fund balance, as of the date the Postal
surplus or supplemental liability is determined, attributable to payments
to the Fund by the United States Postal Service and its employees, minus
benefit payments attributable to civilian employment with the United
States Postal Service, 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) Not later than June 15, 2006, the Office shall determine the
Postal surplus or supplemental liability, as of September 30, 2005. If that
result is a surplus, the amount of the surplus shall be transferred to the
Postal Service Retiree Health Benefits Fund established under section 8909a
by June 30, 2006. If the result is a supplemental liability, the Office
shall establish an amortization schedule, including a series of annual installments
commencing September 30, 2006, which provides for the liquidation of such
liability by September 30, 2043.
`(B) The Office shall redetermine the Postal surplus or supplemental
liability as of the close of the fiscal year, for each fiscal year beginning
after September 30, 2006, through the fiscal year ending September 30, 2038.
If the result is a surplus, that amount shall remain in the Fund until distribution
is authorized under subparagraph (C), and any prior amortization schedule
for payments shall be terminated. If the result is a supplemental liability,
the Office shall establish a new amortization schedule, including a series
of annual installments commencing on September 30 of the subsequent fiscal
year, which provides for the liquidation of such liability by September
30, 2043.
`(C) As of the close of the fiscal years ending September 30, 2015,
2025, 2035, and 2039, if the result is a surplus, that amount shall be transferred
to the Postal Service Retiree Health Benefits Fund, and any prior amortization
schedule for payments shall be terminated.
`(D) Amortization schedules established under this paragraph shall
be set 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.
`(E) The United States Postal Service shall pay the amounts so determined
to the Office, with payments due not later than the date scheduled by the
Office.
`(3) Notwithstanding any other provision of law, in computing the amount
of any payment under any other subsection of this section that is based
upon 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.'.
(b) CREDIT ALLOWED FOR MILITARY SERVICE- In the application of section
8348(g)(2) of title 5, United States Code, for the 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 the fiscal years 2003 through 2005 with respect to credit for
military service of former employees of the United States Postal Service
as though the Postal Civil Service Retirement System Funding Reform Act
of 2003 (Public Law 108-18) had not been enacted, and the Secretary of the
Treasury shall make the required transfer to the Civil Service Retirement
and Disability Fund based on that amount.
(A) REQUEST FOR REVIEW- Notwithstanding any other provision of
this section (including any amendment made by this section), any determination
or redetermination made by the Office of Personnel Management under
this section (including any amendment made by this section) shall, upon
request of the United States Postal Service, be subject to a review
by the Postal Regulatory Commission under this subsection.
(B) REPORT- Upon receiving a request under subparagraph (A), the
Commission shall promptly procure the services of an actuary, who shall
hold membership in the American Academy of Actuaries and shall be qualified
in the evaluation of pension obligations, to conduct a review in accordance
with generally accepted actuarial practices and principles and to provide
a report to the Commission containing the results of the review. The
Commission, upon determining that the report satisfies the requirements
of this paragraph, shall approve the report, with any comments it may
choose to make, and submit it with any such comments to the Postal Service,
the Office of Personnel Management, and Congress.
(2) RECONSIDERATION- Upon receiving the report from the Commission
under paragraph (1), 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 Congress.
SEC. 803. HEALTH INSURANCE.
(1) FUNDING- Chapter 89 of title 5, United States Code, is amended--
(A) in section 8906(g)(2)(A), by striking `shall be paid by the
United States Postal Service.' and inserting `shall be paid first from
the Postal Service Retiree Health Benefits Fund up to the amount contained
in the Fund, with any remaining amount paid by the United States Postal
Service.'; and
(B) by inserting after section 8909 the following:
`Sec. 8909a. Postal Service Retiree Health Benefit Fund
`(a) There is in the Treasury of the United States a Postal Service
Retiree Health Benefits Fund which is administered by the Office of Personnel
Management.
`(b) The Fund is available without fiscal year limitation for payments
required under section 8906(g)(2)(A).
`(c) The Secretary of the Treasury shall immediately invest, in interest-bearing
securities of the United States such currently available portions of the
Fund as are not immediately required for payments from the Fund. Such investments
shall be made in the same manner as investments for the Civil Service Retirement
and Disability Fund under section 8348.
`(d)(1) Not later than June 30, 2006, and by June 30 of each succeeding
year, the Office shall compute the net present value of the future payments
required under section 8906(g)(2)(A) and attributable to the service of
Postal Service employees during the most recently ended fiscal year.
`(2)(A) Not later than June 30, 2006, the Office shall compute, and
by June 30 of each succeeding year, the Office shall recompute the difference
between--
`(i) the net present value of the excess of future payments required
under section 8906(g)(2)(A) for current and future United States Postal
Service annuitants as of the end of the fiscal year ending on September
30 of that year; and
`(ii)(I) the value of the assets of the Postal Retiree Health Benefits
Fund as of the end of the fiscal year ending on September 30 of that year;
and
`(II) the net present value computed under paragraph (1).
`(B) Not later than June 30, 2006, the Office shall compute, and by
June 30 of each succeeding year shall recompute, an amortization schedule
including a series of annual installments which provide for the liquidation
by September 30, 2045, or within 15 years, whichever is later, of the net
present value determined under subparagraph (A), including interest at the
rate used in that computation.
`(3) Not later than September 30, 2006, and by September 30 of each
succeeding year, the United States Postal Service shall pay into such Fund--
`(A) the net present value computed under paragraph (1); and
`(B) the annual installment computed under paragraph (2)(B).
`(4) Computations under this subsection shall be made consistent with
the assumptions and methodology used by the Office for financial reporting
under subchapter II of chapter 35 of title 31.
`(5)(A)(i) Any computation or other determination of the Office under
this subsection shall, upon request of the United States Postal Service,
be subject to a review by the Postal Regulatory Commission under this paragraph.
`(ii) Upon receiving a request under clause (i), the Commission shall
promptly procure the services of an actuary, who shall hold membership in
the American Academy of Actuaries and shall be qualified in the evaluation
of healthcare insurance obligations, to conduct a review in accordance with
generally accepted actuarial practices and principles and to provide a report
to the Commission containing the results of the review. The Commission,
upon determining that the report satisfies the requirements of this subparagraph,
shall approve the report, with any comments it may choose to make, and submit
it with any such comments to the Postal Service, the Office of Personnel
Management, and Congress.
`(B) Upon receiving the report under subparagraph (A), 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 Congress.
`(6) After consultation with the United States Postal Service, the
Office shall promulgate any regulations the Office determines necessary
under this subsection.'.
(2) TECHNICAL AND CONFORMING AMENDMENT- The table of sections for
chapter 89 of title 5, United States Code, is amended by inserting after
the item relating to section 8909 the following:
`8909a. Postal Service Retiree Health Benefits Fund.'.
(A) REQUEST FOR REVIEW- Any regulation established under section
8909a(d)(5) of title 5, United States Code (as added by subsection (a)),
shall, upon request of the United States Postal Service, be subject
to a review by the Postal Regulatory Commission under this paragraph.
(B) REPORT- Upon receiving a request under subparagraph (A), the
Commission shall promptly procure the services of an actuary, who shall
hold membership in the American Academy of Actuaries and shall be qualified
in the evaluation of healthcare insurance obligations, to conduct a
review in accordance with generally accepted actuarial practices and
principles and to provide a report to the Commission containing the
results of the review. The Commission, upon determining that the report
satisfies the requirements of this paragraph, shall approve the report,
with any comments it may choose to make, and submit it with any such
comments to the Postal Service, the Office of Personnel Management,
and Congress.
(2) RECONSIDERATION- Upon receiving the report under paragraph (1),
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 Congress.
(c) Transitional Adjustment for Fiscal Year 2006- For fiscal year 2006,
the amounts paid by the Postal Service in Government contributions under
section 8906(g)(2)(A) of title 5, United States Code, for fiscal year 2006
contributions shall be deducted from the initial payment otherwise due from
the Postal Service to the Postal Service Retiree Health Benefits Fund under
section 8909a(d)(3) of such title as added by this section.
SEC. 804. REPEAL OF DISPOSITION OF SAVINGS PROVISION.
Section 3 of the Postal Civil Service Retirement System Funding Reform
Act of 2003 (Public Law 108-18) is repealed.
SEC. 805. EFFECTIVE DATES.
(a) IN GENERAL- Except as provided under subsection (b), this title
shall take effect on October 1, 2005.
(b) TERMINATION OF EMPLOYER CONTRIBUTION- The amendment made by paragraph
(1) of section 802(a) shall take effect on the first day of the first pay
period beginning on or after October 1, 2005.
TITLE IX--COMPENSATION FOR WORK INJURIES
SEC. 901. TEMPORARY DISABILITY; CONTINUATION OF PAY.
(a) TIME OF ACCRUAL OF RIGHT- Section 8117 of title 5, United States
Code, is amended--
(1) by striking `An employee' and inserting `(a) An employee other
than a Postal Service employee'; and
(2) by adding at the end the following:
`(b) A Postal Service employee is not entitled to compensation or continuation
of pay for the first 3 days of temporary disability, except as provided
under paragraph (3) of subsection (a). A Postal Service employee may use
annual leave, sick leave, or leave without pay during that 3-day period,
except that if the disability exceeds 14 days or is followed by permanent
disability, the employee may have their sick leave or annual leave reinstated
or receive pay for the time spent on leave without pay under this section.'.
(b) TECHNICAL AND CONFORMING AMENDMENT- Section 8118(b)(1) of title
5, United States Code, is amended to read as follows:
`(1) without a break in time, except as provided under section 8117(b),
unless controverted under regulations of the Secretary'.
SEC. 902. DISABILITY RETIREMENT FOR POSTAL EMPLOYEES.
(a) TOTAL DISABILITY- Section 8105 of title 5, United States Code,
is amended--
(1) in subsection (a), by adding at the end the following: `This
section applies to a Postal Service employee, except as provided under
subsection (c).'; and
(2) by adding at the end the following:
`(c)(1) In this subsection, the term `retirement age' has the meaning
given under section 216(l)(1) of the Social Security Act (42 U.S.C. 416(l)(1)).
`(2) Notwithstanding any other provision of law, for any injury occurring
on or after the date of enactment of the Postal Accountability and Enhancement
Act, and for any new claim for a period of disability commencing on or after
that date, the compensation entitlement for total disability is converted
to 50 percent of the monthly pay of the employee on the later of--
`(A) the date on which the injured employee reaches retirement age;
or
`(B) 1 year after the employee begins receiving compensation.'.
(b) PARTIAL DISABILITY- Section 8106 of title 5, United States Code,
is amended--
(1) in subsection (a), by adding at the end the following: `This
section applies to a Postal Service employee, except as provided under
subsection (d).'; and
(2) by adding at the end the following:
`(d)(1) In this subsection, the term `retirement age' has the meaning
given under section 216(l)(1) of the Social Security Act (42 U.S.C. 416(l)(1)).
`(2) Notwithstanding any other provision of law, for any injury occurring
on or after the date of enactment of this subsection, and for any new
claim for a period of disability commencing on or after that date, the
compensation entitlement for partial disability is converted to 50 percent
of the difference between the monthly pay of an employee and the monthly
wage earning capacity of the employee after the beginning of partial disability
on the later of--
`(A) the date on which the injured employee reaches retirement
age; or
`(B) 1 year after the employee begins receiving compensation.'.
TITLE X--MISCELLANEOUS
SEC. 1001. EMPLOYMENT OF POSTAL POLICE OFFICERS.
Section 404 of title 39, United States Code (as amended by this Act),
is further amended by adding at the end the following:
`(d) The Postal Service may employ guards for all buildings and areas
owned or occupied by the Postal Service or under the charge and control
of the Postal Service, and may give such guards, with respect to such property,
any of the powers of special policemen provided under section 1315 of title
40. The Postmaster General, or the designee of the Postmaster General, may
take any action that the Secretary of Homeland Security may take under section
1315 of title 40, with respect to that property.
SEC. 1002. 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) TECHNICAL AND CONFORMING AMENDMENT- The table of chapters for part
V of title 39, United States Code, is amended by repealing the item relating
to chapter 52.
SEC. 1003. 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. 1004. SENSE OF CONGRESS REGARDING POSTAL SERVICE PURCHASING REFORM.
It is the sense of Congress that the Postal Service should--
(1) ensure the fair and consistent treatment of suppliers and contractors
in its current purchasing policies and any revision or replacement of
such policies, such as through the use of competitive contract award procedures,
effective dispute resolution mechanisms, and socioeconomic programs; and
(2) implement commercial best practices in Postal Service purchasing
policies to achieve greater efficiency and cost savings as recommended
in July 2003 by the President's Commission on the United States Postal
Service, in a manner that is compatible with the fair and consistent treatment
of suppliers and contractors, as befitting an establishment in the United
States Government.
SEC. 1005. CONTRACTS FOR TRANSPORTATION OF MAIL BY AIR.
(a) Definitions- Section 5402(a) of title 39, United States Code, is
amended--
(1) in paragraph (4), by striking `(g)(1)(D)(i)' and inserting `(g)(1)(A)(iv)(I)';
(2) in paragraph (5), by striking `(g)(1)(D)(i)' and inserting `(g)(1)(A)(iv)(I)';
(3) in paragraph (6), by striking `only';
(4) in paragraph (8), by striking `rates paid to a bush carrier'
and inserting `linehaul rates and a single terminal handling payment at
a bush terminal handling rate paid to a bush carrier';
(5) in paragraph (11), by striking `(g)(1)(D)(ii)' and inserting
`(g)(1)(A)(iv)(II)';
(A) in subparagraph (A)--
(i) by striking `clause (i) or (ii) of subsection (g)(1)(D)'
and inserting `subclause (I) or (II) of subsection (g)(1)(A)(iv)';
and
(ii) by striking `and' after the semicolon;
(B) in subparagraph (B), by adding `and' after the semicolon; and
(C) by adding at the end the following:
`(C) is not comprised of previously qualified existing mainline
carriers as a result of merger or sale;';
(7) in paragraph (18), by striking `bush routes' and inserting `routes';
and
(8) in paragraph (22), by striking `bush routes' and inserting `routes'.
(b) Nonpriority Bypass Mail- Section 5402(g) of title 39, United States
Code, is amended--
(1) in paragraph (2)(C), by inserting `or a destination city' after
`acceptance point and a hub';
(2) in paragraph (3), by adding at the end the following:
`(C) When a new hub results from a change in a determination under
subparagraph (B), mail tender from that hub during the 12-month period
beginning on the effective date of that change shall be based on the
passenger and freight shares to the destinations of the affected hub
or hubs resulting in the new hub.'; and
(3) in paragraph (5)(A)(i), by striking `(g)(1)(D)(ii)' and inserting
`(g)(1)(A)(iv)(II)'.
(c) Equitable Tender- Section 5402(h) of title 39, United States Code,
is amended--
(1) in paragraph (1), by inserting `bush' after `providing scheduled';
(2) by striking paragraph (3) and inserting the following:
`(3)(A) Except as provided under subparagraph (C), a new or existing
121 bush passenger carrier qualified under subsection (g)(1) shall be
exempt from the requirements under paragraphs (1)(B) and (2)(A) on a city
pair route for a period which shall extend for--
`(ii) 1 year in addition to the extension under clause (i) if,
as of the conclusion of the first year, such carrier has been providing
not less than 5 percent of the passenger service on that route (as calculated
under paragraph (5)); and
`(iii) 1 year in addition to the extension under clause (ii) if,
as of the conclusion of the second year, such carrier has been providing
not less than 10 percent of the passenger service on that route (as
calculated under paragraph (5)).
`(B)(i) The first 3 121 bush passenger carriers entitled to the exemptions
under subparagraph (A) on any city pair route shall divide no more than
an additional 10 percent of the mail, apportioned equally, comprised of
no more than--
`(I) 5 percent of the share of each qualified passenger carrier
servicing that route that is not a 121 bush passenger carrier; and
`(II) 5 percent of the share of each nonpassenger carrier servicing
that route that transports 25 percent or more of the total nonmail freight
under subsection (i)(1).
`(ii) Additional 121 bush passenger carriers entering service on
that city pair route after the first 3 shall not receive any additional
mail share.
`(iii) If any 121 bush passenger carrier on a city pair route receiving
an additional share of the mail under clause (ii) discontinues service
on that route, the 121 bush passenger carrier that has been providing
the longest period of service on that route and is otherwise eligible
but is not receiving a share by reason of clause (ii), shall receive the
share of the carrier discontinuing service.
`(C) Notwithstanding the requirements of this subsection, if only
1 passenger carrier or aircraft is qualified to be tendered nonpriority
bypass mail as a passenger carrier or aircraft on a city pair route in
the State of Alaska, the Postal Service shall tender 20 percent of the
nonpriority bypass mail described under paragraph (1) to the passenger
carrier or aircraft providing at least 10 percent of the passenger service
on such route.';
(3) in paragraph (5)(A)--
(A) by striking `(i)' after `(A)'; and
(B) by striking clause (ii).
(d) Percent of Nonmail Freight- Section 5402(i)(6) of title 39, United
States Code, is amended--
(1) by striking `(A)' after `(6)'; and
(2) by striking subparagraph (B).
(e) Percent of Tender Rate- Section 5402(j)(3)(B) of title 39, United
States Code, is amended by striking `bush routes in the State of Alaska'
and inserting `routes served exclusively by bush carriers in the State of
Alaska'.
(f) Determination of Rates- Section 5402(k) of title 39, United States
Code, is amended by striking paragraph (5).
(g) Technical and Conforming Amendment- Section 5402(p)(3) of title
39, United States Code, is amended by striking `(g)(1)(D)' and inserting
`(g)(1)(A)(iv)'.
(1) IN GENERAL- Except as provided under paragraph (2), this section
shall take effect on the date of enactment of this Act.
(2) EQUITABLE TENDER- Subsection (c) shall take effect on July 1,
2006.
Attest:
Secretary.
109th CONGRESS
2d Session
H. R. 22
AMENDMENT
END
