[Congressional Record Volume 146, Number 72 (Monday, June 12, 2000)]
[Extensions of Remarks]
[Page E979]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                     NON-PROFIT RELIEF ACT OF 2000

                                 ______
                                 

                           HON. CHAKA FATTAH

                            of pennsylvania

                    in the house of representatives

                         Monday, June 12, 2000

  Mr. FATTAH. Mr. Speaker, today I am introducing legislation which 
will provide much needed postage rate relief for nonprofit mailers. The 
measure will protect nonprofit or preferred mailers from double-digit 
rate increases. My legislation is identical to legislation introduced 
in the Senate, S. 2686, on June 7, 2000, by Senator Thad Cochran, the 
Chairman, and Senator Daniel K. Akaka, the Ranking Minority Member of 
the Senate Subcommittee on International Security Proliferation and 
Federal Services. I am pleased to be joined in the introduction of this 
bill by Congressman Steny H. Hoyer, Ranking Minority Member of the 
House Appropriations Subcommittee on Treasury, Postal Service and 
General Government, and Congressman Danny K. Davis and Congressman 
Major R. Owens, both members of the Subcommittee on the Postal Service.
  The practice of designating certain types of mail for preferred rates 
was initiated by the Congress over 50 years ago. In 1993, deficit 
reduction legislation eliminated federal financial support for 
nonprofit mailers, but mandated that nonprofit rates be lower than 
rates for commercial mailers.
  In January of this year, the United States Postal Service (USPS) 
Board of Governors proposed postage rate increases for all classes of 
mail. The USPS formally filed the rate request which is pending before 
the Postal Rate Commission (PRC). Under the current rate request, rates 
for nonprofits will surpass rates for corresponding commercial mail. 
The USPS attributed the increase to inaccurate cost data. However, to 
its credit, the Postal Service has requested and proposed legislation 
to fix the ``rate anomaly.'' Without the legislation, the nonprofit 
periodical preferred rate will disappear.
  The Alliance of Nonprofit Mailers, the Magazine Publishers of 
America, National Federation of Nonprofits, Direct Marketing 
Association, and the Association of Postal Commerce have worked with 
the USPS to draft an acceptable legislative solution to the nonprofit 
rate problem in the current rate case before the PRC. The compromise 
between nonprofit and commercial postage rates, is supported by the 
above organizations.
  By locking in the current rate relationship between nonprofit and 
commerical postage rates, we will protect all categories of nonprofit 
mail from future rate shock. Specifically, the bill would set nonprofit 
and classroom Periodical rates at 95 percent of the commercial 
counterpart rate, excluding the advertising portion, set nonprofit 
Standard A rates at 60 percent of the commercial Standard A rates, and 
set Library and Educational Matter rates at 95 percent of the rates for 
the special subclass of commercial Standard B mail.
  On behalf of local charities, hospitals, churches, educators, arts 
organizations, nonprofit publications, and a host of others, the 
original cosponsors and I, invite my colleagues to protect nonprofit 
mailers and support this bill.

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