[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 22 Engrossed Amendment Senate (EAS)]
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. 101. Definitions.
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. 502. Obligations.
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. 801. Short title.
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;
``(3) periodicals;
``(4) standard mail;
``(5) single-piece parcel post;
``(6) media mail;
``(7) bound printed matter;
``(8) library mail;
``(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.
``(d) Requirements.--
``(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.
``(2) Limitations.--
``(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--
``(A) the discount is--
``(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--
``(1) priority mail;
``(2) expedited mail;
``(3) bulk parcel post;
``(4) bulk international mail; and
``(5) mailgrams;
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.
``(b) Procedures.--
``(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
``(a) Authority.--
``(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.
``(c) Notice.--
``(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)).
``(d) Duration.--
``(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)--
``(A) either--
``(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.
``[3623. Repealed.]
``[3624. Repealed.]
``[3625. Repealed.]
``3626. Reduced Rates.
``3627. Adjusting free rates.
``[3628. Repealed.]
``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
``3661. Postal Services.
``3662. Rate and service complaints.
``3663. Appellate review.
``3664. Enforcement of orders.
``SUBCHAPTER VI--GENERAL
``3681. Reimbursement.
``3682. Size and weight limits.
``3683. Uniform rates for books; films, other materials.
``3684. Limitations.
``3685. Filing of information relating to periodical publications.
``3686. Bonus authority.
``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).
(c) Postal Facilities.--
(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.
(4) Annual reports.--
(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--
(1) vending machines;
(2) the Internet;
(3) postage meters;
(4) Stamps by Mail;
(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,''.
(3) Postal service 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'';
(B) in subsection (b)--
(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.
(a) Qualifications.--
(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.''.
(c) 7-Year Terms.--
(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''.
(2) Applicability.--
(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.
(d) Term Limitation.--
(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
``Sec.
``501. Establishment.
``502. Commissioners.
``503. Rules; regulations; procedures.
``504. Administration.
``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.''.
(c) Budget Program.--
(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.''.
(d) Effective Date.--
(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
``(B) the sum of--
``(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.
(c) Review.--
(1) In general.--
(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.
(a) In General.--
(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.''.
(b) Review.--
(1) In general.--
(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.
(a) Repeal.--
(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)'';
(6) in paragraph (13)--
(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--
``(i) 1 year;
``(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)''.
(h) Effective Date.--
(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