[Congressional Record Volume 147, Number 39 (Thursday, March 22, 2001)]
[Extensions of Remarks]
[Page E438]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 INTRODUCTION OF LEGISLATION TO CLARIFY THE COOPERATIVE MAIL RULE FOR 
                           NON-PROFIT MAILERS

                                 ______
                                 

                            HON. DAN BURTON

                               of indiana

                    in the house of representatives

                        Thursday, March 22, 2001

  Mr. BURTON of Indiana. Mr. Speaker, today I am introducing 
legislation to clarify the Cooperative Mail Rule that the United States 
Postal Service uses to limit the commercial use of non-profit mail.
  Mr. Speaker, as you know, non-profit organizations provide many 
valuable services to citizens across the country. Nonprofit 
organizations are key in providing education and information about a 
variety of issues ranging from public health to participation in civic 
affairs. Nonprofit organizations are able to provide such services 
often by raising money through voluntary contributions rather than tax 
dollars.
  Nonprofit organizations must rely on commercial entities to provide 
goods and services, and such goods and services cost money. Often, new 
or less-well funded nonprofit organizations must obtain these goods and 
services based on a contingency arrangement with a commercial business. 
The Postal Service has in recent years interpreted a postal regulation 
known as the Cooperative Mail Rule to disallow reduced rates for 
nonprofits based solely on their business relationships with commercial 
entities, even when the nonprofit's mail contains no commercial matter. 
This interpretation is inconsistent with the original intent of 
Congress in creating nonprofit rates.
  The Cooperative Mailing Rule was originally designed to prevent 
commercial parties that do not have a nonprofit postal permit from 
entering into cooperative arrangements with nonprofit permit holders to 
mail commercial matter at the reduced nonprofit rates. In 1993, at the 
request of the Postal Service, Congress incorporated the Cooperative 
Mailing Rule into the United States Code to prohibit those types of 
cooperative arrangements.
  The legislation I am introducing today allows qualified nonprofit 
organizations to mail at reduced rates regardless of whether they 
employ commercial companies to help them prepare and mail their letters 
or engage in other commercial arrangements. The mail must still relate 
to the respective nonprofit permit holders themselves and not promote 
or advertise products or services on behalf of a commercial entity. 
This will rectify the Postal Service's recent misapplication of the 
Cooperative Mailing Rule.
  I urge my colleagues to cosponsor this legislation.

                          ____________________