[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 3536 Referred in House (RFH)]

  2d Session
                                S. 3536


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 27, 2008

      Referred to the Committee on Oversight and Government Reform

_______________________________________________________________________

                                 AN ACT


 
 To amend section 5402 of title 39, United States Code, to modify the 
 authority relating to United States Postal Service air transportation 
                   contracts, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Air Carriage of International Mail 
Act''.

SEC. 2. AIR CARRIAGE OF INTERNATIONAL MAIL.

    (a) Contracting Authority.--Section 5402 of title 39, United States 
Code, is amended by striking subsections (b) and (c) and inserting the 
following:
    ``(b) International Mail.--
            ``(1) In general.--
                    ``(A) Except as otherwise provided in this 
                subsection, the Postal Service may contract for the 
                transportation of mail by aircraft between any of the 
                points in foreign air transportation only with 
                certificated air carriers. A contract may be awarded to 
                a certificated air carrier to transport mail by air 
                between any of the points in foreign air transportation 
                that the Secretary of Transportation has authorized the 
                carrier to serve either directly or through a code-
                share relationship with one or more foreign air 
                carriers.
                    ``(B) If the Postal Service has sought offers or 
                proposals from certificated air carriers to transport 
                mail in foreign air transportation between points, or 
                pairs of points within a geographic region or regions, 
                and has not received offers or proposals that meet 
                Postal Service requirements at a fair and reasonable 
                price from at least 2 such carriers, the Postal Service 
                may seek offers or proposals from foreign air carriers. 
                Where service in foreign air transportation meeting the 
                Postal Service's requirements is unavailable at a fair 
                and reasonable price from at least 2 certificated air 
                carriers, either directly or through a code-share 
                relationship with one or more foreign air carriers, the 
                Postal Service may contract with foreign air carriers 
                to provide the service sought if, when the Postal 
                Service seeks offers or proposals from foreign air 
                carriers, it also seeks an offer or proposal to provide 
                that service from any certificated air carrier 
                providing service between those points, or pairs of 
                points within a geographic region or regions, on the 
                same terms and conditions that are being sought from 
                foreign air carriers.
                    ``(C) For purposes of this subsection, the Postal 
                Service shall use a methodology for determining fair 
                and reasonable prices for the Postal Service designated 
                region or regions developed in consultation with, and 
                with the concurrence of, certificated air carriers 
                representing at least 51 percent of available ton miles 
                in the markets of interest.
                    ``(D) For purposes of this subsection, ceiling 
                prices determined pursuant to the methodology used 
                under subparagraph (C) shall be presumed to be fair and 
                reasonable if they do not exceed the ceiling prices 
                derived from--
                            ``(i) a weighted average based on market 
                        rate data furnished by the International Air 
                        Transport Association or a subsidiary unit 
                        thereof; or
                            ``(ii) if such data are not available from 
                        those sources, such other neutral, regularly 
                        updated set of weighted average market rates as 
                        the Postal Service, with the concurrence of 
                        certificated air carriers representing at least 
                        51 percent of available ton miles in the 
                        markets of interest, may designate.
                    ``(E) If, for purposes of subparagraph (D)(ii), 
                concurrence cannot be attained, then the most recently 
                available market rate data described in this 
                subparagraph shall continue to apply for the relevant 
                market or markets.
            ``(2) Contract process.--The Postal Service shall contract 
        for foreign air transportation as set forth in paragraph (1) 
        through an open procurement process that will provide--
                    ``(A) potential offerors with timely notice of 
                business opportunities in sufficient detail to allow 
                them to make a proposal;
                    ``(B) requirements, proposed terms and conditions, 
                and evaluation criteria to potential offerors; and
                    ``(C) an opportunity for unsuccessful offerors to 
                receive prompt feedback upon request.
            ``(3) Emergency or unanticipated conditions; inadequate 
        lift space.--The Postal Service may enter into contracts to 
        transport mail by air in foreign air transportation with a 
        certificated air carrier or a foreign air carrier without 
        complying with the requirements of paragraphs (b)(1) and (2) 
        if--
                    ``(A) emergency or unanticipated conditions exist 
                that make it impractical for the Postal Service to 
                comply with such requirements; or
                    ``(B) its demand for lift exceeds the space 
                available to it under existing contracts and--
                            ``(i) there is insufficient time available 
                        to seek additional lift using procedures that 
                        comply with those requirements without 
                        compromising the Postal Service's service 
                        commitments to its own customers; and
                            ``(ii) the Postal Service first offers any 
                        certificated air carrier holding a contract to 
                        carry mail between the relevant points the 
                        opportunity to carry such excess volumes under 
                        the terms of its existing contract.
    ``(c) Good Faith Effort Required.--The Postal Service and potential 
offerors shall put a good-faith effort into resolving disputes 
concerning the award of contracts made under subsection (b).''.
    (b) Conforming Amendments to Title 49.--
            (1) Section 41901(a) is amended by striking ``39.'' and 
        inserting ``39, and in foreign air transportation under section 
        5402(b) and (c) of title 39.''.
            (2) Section 41901(b)(1) is amended by striking ``in foreign 
        air transportation or''.
            (3) Section 41902 is amended--
                    (A) by striking ``in foreign air transportation 
                or'' in subsection (a);
                    (B) by striking subsection (b) and inserting the 
                following:
    ``(b) Statements on Places and Schedules.--Every air carrier shall 
file with the United States Postal Service a statement showing--
            ``(1) the places between which the carrier is authorized to 
        transport mail in Alaska;
            ``(2) every schedule of aircraft regularly operated by the 
        carrier between places described in paragraph (1) and every 
        change in each schedule; and
            ``(3) for each schedule, the places served by the carrier 
        and the time of arrival at, and departure from, each such 
        place.'';
                    (C) by striking ``subsection (b)(3)'' each place it 
                appears in subsections (c)(1) and (d) and inserting 
                ``subsection (b)(2)''; and
                    (D) by striking subsections (e) and (f).
            (4) Section 41903 is amended by striking ``in foreign air 
        transportation or'' each place it appears.
            (5) Section 41904 is amended--
                    (A) by striking ``to or in foreign countries'' in 
                the section heading;
                    (B) by striking ``to or in a foreign country'' and 
                inserting ``between two points outside the United 
                States''; and
                    (C) by inserting after ``transportation.'' the 
                following: ``Nothing in this section shall affect the 
                authority of the Postal Service to make arrangements 
                with noncitizens for the carriage of mail in foreign 
                air transportation under subsections 5402(b) and (c) of 
                title 39.''.
            (6) Section 41910 is amended by striking the first sentence 
        and inserting ``The United States Postal Service may weigh mail 
        transported by aircraft between places in Alaska and make 
        statistical and -administrative computations necessary in the 
        interest of mail service.''.
            (7) Chapter 419 is amended--
                    (A) by striking sections 41905, 41907, 41908, and 
                41911; and
                    (B) redesignating sections 41906, 41909, 41910, and 
                49112 as sections 41905, 41906, 41907, and 41908, 
                respectively.
            (8) The chapter analysis for chapter 419 is amended by 
        redesignating the items relating to sections 41906, 41909, 
        41910, and 49112 as relating to sections 41905, 41906, 41907, 
        and 41908, respectively.
            (9) Section 101(f) of title 39, United States Code, is 
        amended by striking ``mail and shall make a fair and equitable 
        distribution of mail business to carriers providing similar 
        modes of transportation services to the Postal Service.'' and 
        inserting ``mail.''.
            (10) Subsections (b) and (c) of section 3401 of title 39, 
        United States Code, are amended--
                    (A) by striking ``at rates fixed and determined by 
                the Secretary of Transportation in accordance with 
                section 41901 of title 49'' and inserting ``or, for 
                carriage of mail in foreign air transportation, other 
                air carriers, air taxi operators or foreign air 
                carriers as permitted by section 5402 of this title'';
                    (B) by striking ``at rates not to exceed those so 
                fixed and determined for scheduled United States air 
                carriers'';
                    (C) by striking ``scheduled'' each place it appears 
                and inserting ``certificated''; and
                    (D) by striking the last sentence in each such 
                subsection.
            (11) Section 5402(a) of title 39, United States Code, is 
        amended--
                    (A) by inserting ```foreign air carrier'.'' after 
                ```interstate air transportation','' in paragraph (2);
                    (B) by redesignating paragraphs (7) through (23) as 
                paragraphs (8) through (24) and inserting after 
                paragraph (6) the following:
            ``(7) the term `certificated air carrier' means an air 
        carrier that holds a certificate of public convenience and 
        necessity issued under section 41102(a) of title 49;'';
                    (C) by redesignating paragraphs (9) through (24), 
                as redesignated, as paragraphs (10) through (25), 
                respectively, and inserting after paragraph (8) the 
                following:
            ``(9) the term `code-share relationship' means a 
        relationship pursuant to which any certificated air carrier or 
        foreign air carrier's designation code is used to identify a 
        flight operated by another air carrier or foreign air 
        carrier;''; and
                    (D) by inserting ``foreign air carrier,'' after 
                ``terms'' in paragraph (2).
    (c) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2008.

            Passed the Senate September 26, 2008 (legislative day, 
      September 17), 2008.

            Attest:

                                                NANCY ERICKSON,

                                                             Secretary.