[Congressional Record Volume 149, Number 90 (Wednesday, June 18, 2003)]
[Senate]
[Pages S8127-S8160]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. BIDEN (for himself, Mr. McConnell, Mr. Bunning,  and Mr. 
        Graham of South Carolina):
  S. 1277. A bill to amend title I of the Omnibus Crime Control and 
Safe Streets Act of 1968 to provide standards and procedures to guide 
both State and local law enforcement agencies and law enforcement 
officers during internal investigations, interrogation of law 
enforcement officers, and administrative disciplinary hearings, to 
ensure accountability of law enforcement officers, to guarantee the due 
process rights of law enforcement discipline, accountability, and due 
process laws; to the Committee on the Judiciary.
  Mr. BIDEN. Mr. President, I rise to introduce the Law Enforcement 
Discipline, Accountability, and Due Process Act of 2003, along with the 
Chairman of the Judiciary Subcommittee on Crime, Corrections and 
Victims' Rights Senator Graham, Senator McConnell and Senator Bunning.
  These are trying times for the men and women on our front lines 
providing domestic security, our Nation's law enforcement personnel. 
State and local fiscal problems are forcing many communities to cut 
their police budgets. Each change in the Nation's homeland security 
alert level results in increased overtime and other costs for local law 
enforcement. Just yesterday, the FBI reported that the number of 
murders and rapes was up across the country in 2002. And this 
Administration is determined to dramatically scale back Federal crime-
fighting initiatives like the COPS program, a proven initiative that 
has been hailed as one of the keys to the crime-drop of the nineties.
  At the same time, the men and women of law enforcement work in 
extremely dangerous environments. An average of 165 police officers are 
killed in the line of duty every year. And at times, internal police 
investigations and administrative hearings do not provide officers with 
basic protections. According to the National Association of Police 
Organizations, ``[i]n roughly half of the states in this country, 
officers enjoy some legal protections against false accusations and 
abusive conduct, but hundreds of thousands of officers have very 
limited due process rights and confront limitations on their exercise 
of other rights, such as the right to engage in political activities.'' 
The Fraternal Order of Police notes that, ``[i]n a startling number of 
jurisdictions throughout this country, law enforcement officers have no 
procedural or administrative protections whatsoever; in fact, they can 
be, and frequently are, summarily dismissed from their jobs without 
explanation. Officers who lose their careers due to administrative or 
political expediency almost always find it impossible to find new 
employment in public safety. An officer's reputation, once tarnished by 
accusation, is almost impossible to restore.''

[[Page S8128]]

  This legislation we introduce today seeks to provide officers with 
certain basic protections in those jurisdictions where such workplace 
protections are not currently provided. This bill allows law 
enforcement officials to engage in political activities. It provides 
standards and procedures to guide State and local law enforcement 
agencies during internal investigations, interrogations, and 
administrative disciplinary hearings of law enforcement officers, and 
it calls upon States to develop and enforce these disciplinary 
procedures. The bill would preempt State laws which confer fewer rights 
than those provided for in the legislation, but it would not preempt 
any State or local laws that confer rights or protections that are 
equal to or exceed the rights and protections afforded in the bill. My 
own State of Delaware has its own law enforcement officers' bill of 
rights, and as such Delaware would not be impacted by the provisions of 
this bill. I am pleased that the bill has earned the endorsement of the 
Fraternal Order of Police and of the National Association of Police 
Organizations.
  Beyond benefiting those on the front lines of local law enforcement, 
this bill would enhance the ability of our citizens to hold their local 
police accountable if they do transgress while on the job. The 
legislation includes provisions that will ensure citizen complaints 
against police officers are investigated, and that citizens are 
informed of the outcome of these investigations. The bill balances the 
rights of police officers with the rights of citizens to raise valid 
concerns about the conduct of some of these officers. In addition, I 
have consulted with constitutional experts who have opined that the 
bill is consistent with Congress' powers under the Commerce Clause and 
that it does not run afoul of the Supreme Court's Tenth Amendment 
jurisprudence.
  While I believe that the bill we introduce today takes the right 
approach, I want to note the International Association of Chiefs of 
Police's opposition to this measure. In April of this year I met with 
Richmond, California Chief of Police Joseph Samuels, the president of 
the IACP. Chief Samuels and I acknowledged that we disagreed on this 
bill, but I pledged to him that their concerns would be heard and taken 
into consideration as the bill we introduce today is debated in 
Congress. It is my view that without a meeting of the minds between 
police management and union officials on this issue, enactment of a 
meaningful law enforcement officers' bill of rights will be difficult. 
It is my hope that the newly-constituted Subcommittee on Crime, 
Corrections and Victims' Rights, on which I serve as ranking member, 
will hold a hearing on this measure. That subcommittee is the proper 
forum in which to debate the merits of our approach to guaranteeing 
basic procedural safeguards to the men and women of law enforcement.
  I urge my colleagues to join Senators Graham, McConnell, Bunning and 
me in providing all of the Nation's law enforcement officers with the 
basic rights they deserve.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the Bill was ordered to be printed in the 
Record, as follows:

                                S. 1277

       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 ``State and Local Law 
     Enforcement Discipline, Accountability, and Due Process Act 
     of 2003''.

     SEC. 2. FINDINGS AND DECLARATION OF PURPOSE AND POLICY.

       (a) Findings.--Congress finds that--
       (1) the rights of law enforcement officers to engage in 
     political activity or to refrain from engaging in political 
     activity, except when on duty, or to run as candidates for 
     public office, unless such service is found to be in conflict 
     with their service as officers, are activities protected by 
     the first amendment of the United States Constitution, as 
     applied to the States through the 14th amendment of the 
     United States Constitution, but these rights are often 
     violated by the management of State and local law enforcement 
     agencies;
       (2) a significant lack of due process rights of law 
     enforcement officers during internal investigations and 
     disciplinary proceedings has resulted in a loss of confidence 
     in these processes by many law enforcement officers, 
     including those unfairly targeted for their labor 
     organization activities or for their aggressive enforcement 
     of the laws, demoralizing many rank and file officers in 
     communities and States;
       (3) unfair treatment of officers has potentially serious 
     long-term consequences for law enforcement by potentially 
     deterring or otherwise preventing officers from carrying out 
     their duties and responsibilities effectively and fairly;
       (4) the lack of labor-management cooperation in 
     disciplinary matters and either the perception or the 
     actuality that officers are not treated fairly detrimentally 
     impacts the recruitment of and retention of effective 
     officers, as potential officers and experienced officers seek 
     other careers which has serious implications and 
     repercussions for officer morale, public safety, and labor-
     management relations and strife and can affect interstate and 
     intrastate commerce, interfering with the normal flow of 
     commerce;
       (5) there are serious implications for the public safety of 
     the citizens and residents of the United States which 
     threatens the domestic tranquility of the United States 
     because of a lack of statutory protections to ensure--
       (i) the due process and political rights of law enforcement 
     officers;
       (ii) fair and thorough internal investigations and 
     interrogations of and disciplinary proceedings against law 
     enforcement officers; and
       (iii) effective procedures for receipt, review, and 
     investigation of complaints against officers, fair to both 
     officers and complainants; and
       (6) resolving these disputes and problems and preventing 
     the disruption of vital police services is essential to the 
     well-being of the United States and the domestic tranquility 
     of the Nation.
       (b) Declaration of Policy.--Congress declares that it is 
     the purpose of this Act and the policy of the United States 
     to--
       (1) protect the due process and political rights of State 
     and local law enforcement officers and ensure equality and 
     fairness of treatment among such officers;
       (2) provide continued police protection to the general 
     public;
       (3) provide for the general welfare and ensure domestic 
     tranquility; and
       (4) prevent any impediments to the free flow of commerce, 
     under the rights guaranteed under the United States 
     Constitution and Congress' authority thereunder.

     SEC. 3. DISCIPLINE, ACCOUNTABILITY, AND DUE PROCESS OF 
                   OFFICERS.

       (a) In General.--Part H of title I of the Omnibus Crime 
     Control and Safe Streets Act of 1968 (42 U.S.C. 3781 et seq.) 
     is amended by adding at the end the following:

     ``SEC. 820. DISCIPLINE, ACCOUNTABILITY, AND DUE PROCESS OF 
                   STATE AND LOCAL LAW ENFORCEMENT OFFICERS.

       ``(a) Definitions.--In this section:
       ``(1) Disciplinary action.--The term `disciplinary action' 
     means any adverse personnel action, including suspension, 
     reduction in pay, rank, or other employment benefit, 
     dismissal, transfer, reassignment, unreasonable denial of 
     secondary employment, or similar punitive action taken 
     against a law enforcement officer.
       ``(2) Disciplinary hearing.--The term `disciplinary 
     hearing' means an administrative hearing initiated by a law 
     enforcement agency against a law enforcement officer, based 
     on an alleged violation of law, that, if proven, would 
     subject the law enforcement officer to disciplinary action.
       ``(3) Emergency suspension.--The term `emergency 
     suspension' means the temporary action by a law enforcement 
     agency of relieving a law enforcement officer from the active 
     performance of law enforcement duties without a reduction in 
     pay or benefits when the law enforcement agency, or an 
     official within that agency, determines that there is 
     probable cause, based upon the conduct of the law enforcement 
     officer, to believe that the law enforcement officer poses an 
     immediate threat to the safety of that officer or others or 
     the property of others.
       ``(4) Investigation.--The term `investigation'--
       ``(A) means an action taken to determine whether a law 
     enforcement officer violated a law by a public agency or a 
     person employed by a public agency, acting alone or in 
     cooperation with or at the direction of another agency, or a 
     division or unit within another agency, regardless of a 
     denial by such an agency that any such action is not an 
     investigation; and
       ``(B) includes--
       ``(i) asking questions of any other law enforcement officer 
     or non-law enforcement officer;
       ``(ii) conducting observations;
       ``(iii) reviewing and evaluating reports, records, or other 
     documents; and
       ``(iv) examining physical evidence.
       ``(5) Law enforcement officer.--The terms `law enforcement 
     officer' and `officer' have the meaning given the term `law 
     enforcement officer' in section 1204, except the term does 
     not include a law enforcement officer employed by the United 
     States, or any department, agency, or instrumentality 
     thereof.
       ``(6) Personnel record.--The term `personnel record' means 
     any document, whether in written or electronic form and 
     irrespective of location, that has been or may be used in 
     determining the qualifications of a law enforcement officer 
     for employment, promotion, transfer, additional compensation, 
     termination or any other disciplinary action.
       ``(7) Public agency and law enforcement agency.--The terms 
     `public agency' and `law enforcement agency' each have the 
     meaning given the term `public agency' in section

[[Page S8129]]

     1204, except the terms do not include the United States, or 
     any department, agency, or instrumentality thereof.
       ``(8) Summary punishment.--The term `summary punishment' 
     means punishment imposed--
       ``(A) for a violation of law that does not result in any 
     disciplinary action; or
       ``(B) for a violation of law that has been negotiated and 
     agreed upon by the law enforcement agency and the law 
     enforcement officer, based upon a written waiver by the 
     officer of the rights of that officer under subsection (i) 
     and any other applicable law or constitutional provision, 
     after consultation with the counsel or representative of that 
     officer.
       ``(b) Applicability.--
       ``(1) In general.--This section sets forth the due process 
     rights, including procedures, that shall be afforded a law 
     enforcement officer who is the subject of an investigation or 
     disciplinary hearing.
       ``(2) Nonapplicability.--This section does not apply in the 
     case of--
       ``(A) an investigation of specifically alleged conduct by a 
     law enforcement officer that, if proven, would constitute a 
     violation of a statute providing for criminal penalties; or
       ``(B) a nondisciplinary action taken in good faith on the 
     basis of the employment related performance of a law 
     enforcement officer.
       ``(c) Political Activity.--
       ``(1) Right to engage or not to engage in political 
     activity.--Except when on duty or acting in an official 
     capacity, a law enforcement officer shall not be prohibited 
     from engaging in political activity or be denied the right to 
     refrain from engaging in political activity.
       ``(2) Right to run for elective office.--A law enforcement 
     officer shall not be--
       ``(A) prohibited from being a candidate for an elective 
     office or from serving in such an elective office, solely 
     because of the status of the officer as a law enforcement 
     officer; or
       ``(B) required to resign or take an unpaid leave from 
     employment with a law enforcement agency to be a candidate 
     for an elective office or to serve in an elective office, 
     unless such service is determined to be in conflict with or 
     incompatible with service as a law enforcement officer.
       ``(3) Adverse personnel action.--An action by a public 
     agency against a law enforcement officer, including requiring 
     the officer to take unpaid leave from employment, in 
     violation of this subsection shall be considered an adverse 
     personnel action within the meaning of subsection (a)(1).
       ``(d) Effective Procedures for Receipt, Review, and 
     Investigation of Complaints Against Law Enforcement 
     Officers.--
       ``(1) Complaint process.--Not later than 1 year after the 
     effective date of this section, each law enforcement agency 
     shall adopt and comply with a written complaint procedure 
     that--
       ``(A) authorizes persons from outside the law enforcement 
     agency to submit written complaints about a law enforcement 
     officer to--
       ``(i) the law enforcement agency employing the law 
     enforcement officer; or
       ``(ii) any other law enforcement agency charged with 
     investigating such complaints;
       ``(B) sets forth the procedures for the investigation and 
     disposition of such complaints;
       ``(C) provides for public access to required forms and 
     other information concerning the submission and disposition 
     of written complaints; and
       ``(D) requires notification to the complainant in writing 
     of the final disposition of the complaint and the reasons for 
     such disposition.
       ``(2) Initiation of an investigation.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     an investigation based on a complaint from outside the law 
     enforcement agency shall commence not later than 15 days 
     after the receipt of the complaint by--
       ``(i) the law enforcement agency employing the law 
     enforcement officer against whom the complaint has been made; 
     or
       ``(ii) any other law enforcement agency charged with 
     investigating such a complaint.
       ``(B) Exception.--Subparagraph (A) does not apply if--
       ``(i) the law enforcement agency determines from the face 
     of the complaint that each allegation does not constitute a 
     violation of law; or
       ``(ii) the complainant fails to comply substantially with 
     the complaint procedure of the law enforcement agency 
     established under this section.
       ``(3) Complainant or victim conflict of interest.--The 
     complainant or victim of the alleged violation of law giving 
     rise to an investigation under this subsection may not 
     conduct or supervise the investigation or serve as an 
     investigator.
       ``(e) Notice of Investigation.--
       ``(1) In general.--Any law enforcement officer who is the 
     subject of an investigation shall be notified of the 
     investigation 24 hours before the commencement of questioning 
     or to otherwise being required to provide information to an 
     investigating agency.
       ``(2) Contents of notice.--Notice given under paragraph (1) 
     shall include--
       ``(A) the nature and scope of the investigation;
       ``(B) a description of any allegation contained in a 
     written complaint;
       ``(C) a description of each violation of law alleged in the 
     complaint for which suspicion exists that the officer may 
     have engaged in conduct that may subject the officer to 
     disciplinary action; and
       ``(D) the name, rank, and command of the officer or any 
     other individual who will be conducting the investigation.
       ``(f) Rights of Law Enforcement Officers Prior to and 
     During Questioning Incidental to an Investigation.--If a law 
     enforcement officer is subjected to questioning incidental to 
     an investigation that may result in disciplinary action 
     against the officer, the following minimum safeguards shall 
     apply:
       ``(1) Counsel and representation.--
       ``(A) In general.--Any law enforcement officer under 
     investigation shall be entitled to effective counsel by an 
     attorney or representation by any other person who the 
     officer chooses, such as an employee representative, or both, 
     immediately before and during the entire period of any 
     questioning session, unless the officer consents in writing 
     to being questioned outside the presence of counsel or 
     representative.
       ``(B) Private consultation.--During the course of any 
     questioning session, the officer shall be afforded the 
     opportunity to consult privately with counsel or a 
     representative, if such consultation does not repeatedly and 
     unnecessarily disrupt the questioning period.
       ``(C) Unavailability of counsel.--If the counsel or 
     representative of the law enforcement officer is not 
     available within 24 hours of the time set for the 
     commencement of any questioning of that officer, the 
     investigating law enforcement agency shall grant a reasonable 
     extension of time for the law enforcement officer to obtain 
     counsel or representation.
       ``(2) Reasonable hours and time.--Any questioning of a law 
     enforcement officer under investigation shall be conducted at 
     a reasonable time when the officer is on duty, unless exigent 
     circumstances compel more immediate questioning, or the 
     officer agrees in writing to being questioned at a different 
     time, subject to the requirements of subsections (e) and 
     (f)(1).
       ``(3) Place of questioning.--Unless the officer consents in 
     writing to being questioned elsewhere, any questioning of a 
     law enforcement officer under investigation shall take 
     place--
       ``(A) at the office of the individual conducting the 
     investigation on behalf of the law enforcement agency 
     employing the officer under investigation; or
       ``(B) the place at which the officer under investigation 
     reports for duty.
       ``(4) Identification of questioner.--Before the 
     commencement of any questioning, a law enforcement officer 
     under investigation shall be informed of--
       ``(A) the name, rank, and command of the officer or other 
     individual who will conduct the questioning; and
       ``(B) the relationship between the individual conducting 
     the questioning and the law enforcement agency employing the 
     officer under investigation.
       ``(5) Single questioner.--During any single period of 
     questioning of a law enforcement officer under investigation, 
     each question shall be asked by or through 1 individual.
       ``(6) Reasonable time period.--Any questioning of a law 
     enforcement officer under investigation shall be for a 
     reasonable period of time and shall allow reasonable periods 
     for the rest and personal necessities of the officer and the 
     counsel or representative of the officer, if such person is 
     present.
       ``(7) No threats, false statements, or promises to be 
     made.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     no threat against, false or misleading statement to, 
     harassment of, or promise of reward to a law enforcement 
     officer under investigation shall be made to induce the 
     officer to answer any question, give any statement, or 
     otherwise provide information.
       ``(B) Exception.--The law enforcement agency employing a 
     law enforcement officer under investigation may require the 
     officer to make a statement relating to the investigation by 
     explicitly threatening disciplinary action, including 
     termination, only if--
       ``(i) the officer has received a written grant of use and 
     derivative use immunity or transactional immunity by a person 
     authorized to grant such immunity; and
       ``(ii) the statement given by the law enforcement officer 
     under such an immunity may not be used in any subsequent 
     criminal proceeding against that officer.
       ``(8) Recording.--
       ``(A) In general.--All questioning of a law enforcement 
     officer under an investigation shall be recorded in full, in 
     writing or by electronic device, and a copy of the transcript 
     shall be provided to the officer under investigation before 
     any subsequent period of questioning or the filing of any 
     charge against that officer.
       ``(B) Separate recording.--To ensure the accuracy of the 
     recording, an officer may utilize a separate electronic 
     recording device, and a copy of any such recording (or the 
     transcript) shall be provided to the public agency conducting 
     the questioning, if that agency so requests.
       ``(9) Use of honesty testing devices prohibited.--No law 
     enforcement officer under investigation may be compelled to 
     submit to the use of a lie detector, as defined in section 2 
     of the Employee Polygraph Protection Act of 1988 (29 U.S.C. 
     2001).

[[Page S8130]]

       ``(g) Notice of Investigative Findings and Disciplinary 
     Recommendation and Opportunity To Submit a Written 
     Response.--
       ``(1) Notice.--Not later than 30 days after the conclusion 
     of an investigation under this section, the person in charge 
     of the investigation or the designee of that person shall 
     notify the law enforcement officer who was the subject of the 
     investigation, in writing, of the investigative findings and 
     any recommendations for disciplinary action.
       ``(2) Opportunity to submit written response.--
       ``(A) In general.--Not later than 30 days after receipt of 
     a notification under paragraph (1), and before the filing of 
     any charge seeking the discipline of such officer or the 
     commencement of any disciplinary proceeding under subsection 
     (h), the law enforcement officer who was the subject of the 
     investigation may submit a written response to the findings 
     and recommendations included in the notification.
       ``(B) Contents of response.--The response submitted under 
     subparagraph (A) may include references to additional 
     documents, physical objects, witnesses, or any other 
     information that the law enforcement officer believes may 
     provide exculpatory evidence.
       ``(h) Disciplinary Hearing.--
       ``(1) Notice of opportunity for hearing.--Except in a case 
     of summary punishment or emergency suspension (subject to 
     subsection (k)), before the imposition of any disciplinary 
     action the law enforcement agency shall notify the officer 
     that the officer is entitled to a due process hearing by an 
     independent and impartial hearing officer or board.
       ``(2) Requirement of determination of violation.--No 
     disciplinary action may be taken against a law enforcement 
     officer unless an independent and impartial hearing officer 
     or board determines, after a hearing and in accordance with 
     the requirements of this subsection, that the law enforcement 
     officer committed a violation of law.
       ``(3) Time limit.--No disciplinary charge may be brought 
     against a law enforcement officer unless--
       ``(A) the charge is filed not later than the earlier of--
       ``(i) 1 year after the date on which the law enforcement 
     agency filing the charge had knowledge or reasonably should 
     have had knowledge of an alleged violation of law; or
       ``(ii) 90 days after the commencement of an investigation; 
     or
       ``(B) the requirements of this paragraph are waived in 
     writing by the officer or the counsel or representative of 
     the officer.
       ``(4) Notice of hearing.--Unless waived in writing by the 
     officer or the counsel or representative of the officer, not 
     later than 30 days after the filing of a disciplinary charge 
     against a law enforcement officer, the law enforcement agency 
     filing the charge shall provide written notification to the 
     law enforcement officer who is the subject of the charge, 
     of--
       ``(A) the date, time, and location of any disciplinary 
     hearing, which shall be scheduled in cooperation with the law 
     enforcement officer, or the counsel or representative of the 
     officer, and which shall take place not earlier than 30 days 
     and not later than 60 days after notification of the hearing 
     is given to the law enforcement officer under investigation;
       ``(B) the name and mailing address of the independent and 
     impartial hearing officer, or the names and mailing addresses 
     of the independent and impartial hearing board members; and
       ``(C) the name, rank, command, and address of the law 
     enforcement officer prosecuting the matter for the law 
     enforcement agency, or the name, position, and mailing 
     address of the person prosecuting the matter for a public 
     agency, if the prosecutor is not a law enforcement officer.
       ``(5) Access to documentary evidence and investigative 
     file.--Unless waived in writing by the law enforcement 
     officer or the counsel or representative of that officer, not 
     later than 15 days before a disciplinary hearing described in 
     paragraph (4)(A), the law enforcement officer shall be 
     provided with--
       ``(A) a copy of the complete file of the pre-disciplinary 
     investigation; and
       ``(B) access to and, if so requested, copies of all 
     documents, including transcripts, records, written 
     statements, written reports, analyses, and electronically 
     recorded information that--
       ``(i) contain exculpatory information;
       ``(ii) are intended to support any disciplinary action; or
       ``(iii) are to be introduced in the disciplinary hearing.
       ``(6) Examination of physical evidence.--Unless waived in 
     writing by the law enforcement officer or the counsel or 
     representative of that officer--
       ``(A) not later than 15 days before a disciplinary hearing, 
     the prosecuting agency shall notify the law enforcement 
     officer or the counsel or representative of that officer of 
     all physical, non-documentary evidence; and
       ``(B) not later than 10 days before a disciplinary hearing, 
     the prosecuting agency shall provide a reasonable date, time, 
     place, and manner for the law enforcement officer or the 
     counsel or representative of the law enforcement officer to 
     examine the evidence described in subparagraph (A).
       ``(7) Identification of witnesses.--Unless waived in 
     writing by the law enforcement officer or the counsel or 
     representative of the officer, not later than 15 days before 
     a disciplinary hearing, the prosecuting agency shall notify 
     the law enforcement officer or the counsel or representative 
     of the officer, of the name and address of each witness for 
     the law enforcement agency employing the law enforcement 
     officer.
       ``(8) Representation.--During a disciplinary hearing, the 
     law enforcement officer who is the subject of the hearing 
     shall be entitled to due process, including--
       ``(A) the right to be represented by counsel or a 
     representative;
       ``(B) the right to confront and examine all witnesses 
     against the officer; and
       ``(C) the right to call and examine witnesses on behalf of 
     the officer.
       ``(9) Hearing board and procedure.--
       ``(A) In general.--A State or local government agency, 
     other than the law enforcement agency employing the officer 
     who is subject of the disciplinary hearing, shall--
       ``(i) determine the composition of an independent and 
     impartial disciplinary hearing board;
       ``(ii) appoint an independent and impartial hearing 
     officer; and
       ``(iii) establish such procedures as may be necessary to 
     comply with this section.
       ``(B) Peer representation on disciplinary hearing board.--A 
     disciplinary hearing board that includes employees of the law 
     enforcement agency employing the law enforcement officer who 
     is the subject of the hearing, shall include not less than 1 
     law enforcement officer of equal or lesser rank to the 
     officer who is the subject of the hearing.
       ``(10) Summonses and subpoenas.--
       ``(A) In general.--The disciplinary hearing board or 
     independent hearing officer--
       ``(i) shall have the authority to issue summonses or 
     subpoenas, on behalf of--

       ``(I) the law enforcement agency employing the officer who 
     is the subject of the hearing; or
       ``(II) the law enforcement officer who is the subject of 
     the hearing; and

       ``(ii) upon written request of either the agency or the 
     officer, shall issue a summons or subpoena, as appropriate, 
     to compel the appearance and testimony of a witness or the 
     production of documentary evidence.
       ``(B) Effect of failure to comply with summons or 
     subpoena.--With respect to any failure to comply with a 
     summons or a subpoena issued under subparagraph (A)--
       ``(i) the disciplinary hearing officer or board shall 
     petition a court of competent jurisdiction to issue an order 
     compelling compliance; and
       ``(ii) subsequent failure to comply with such a court order 
     issued pursuant to a petition under clause (i) shall--

       ``(I) be subject to contempt of a court proceedings 
     according to the laws of the jurisdiction within which the 
     disciplinary hearing is being conducted; and
       ``(II) result in the recess of the disciplinary hearing 
     until the witness becomes available to testify and does 
     testify or is held in contempt.

       ``(11) Closed hearing.--A disciplinary hearing shall be 
     closed to the public unless the law enforcement officer who 
     is the subject of the hearing requests, in writing, that the 
     hearing be open to specified individuals or to the general 
     public.
       ``(12) Recording.--All aspects of a disciplinary hearing, 
     including pre-hearing motions, shall be recorded by audio 
     tape, video tape, or transcription.
       ``(13) Sequestration of witnesses.--Either side in a 
     disciplinary hearing may move for and be entitled to 
     sequestration of witnesses.
       ``(14) Testimony under oath.--The hearing officer or board 
     shall administer an oath or affirmation to each witness, who 
     shall testify subject to the laws of perjury of the State in 
     which the disciplinary hearing is being conducted.
       ``(15) Final decision on each charge.--
       ``(A) In general.--At the conclusion of the presentation of 
     all the evidence and after oral or written argument, the 
     hearing officer or board shall deliberate and render a 
     written final decision on each charge.
       ``(B) Final decision isolated to charge brought.--The 
     hearing officer or board may not find that the law 
     enforcement officer who is the subject of the hearing is 
     liable for disciplinary action for any violation of law, as 
     to which the officer was not charged.
       ``(16) Burden of persuasion and standard of proof.--The 
     burden of persuasion or standard of proof of the prosecuting 
     agency shall be--
       ``(A) by clear and convincing evidence as to each charge 
     alleging false statement or representation, fraud, 
     dishonesty, deceit, moral turpitude, or criminal behavior on 
     the part of the law enforcement officer who is the subject of 
     the charge; and
       ``(B) by a preponderance of the evidence as to all other 
     charges.
       ``(17) Factors of just cause to be considered by the 
     hearing officer or board.--A law enforcement officer who is 
     the subject of a disciplinary hearing shall not be found 
     guilty of any charge or subjected to any disciplinary action 
     unless the disciplinary hearing board or independent hearing 
     officer finds that--
       ``(A) the officer who is the subject of the charge could 
     reasonably be expected to have had knowledge of the probable 
     consequences of the alleged conduct set forth in the charge 
     against the officer;
       ``(B) the rule, regulation, order, or procedure that the 
     officer who is the subject of the charge allegedly violated 
     is reasonable;
       ``(C) the charging party, before filing the charge, made a 
     reasonable, fair, and objective effort to discover whether 
     the officer did

[[Page S8131]]

     in fact violate the rule, regulation, order, or procedure as 
     charged;
       ``(D) the charging party did not conduct the investigation 
     arbitrarily or unfairly, or in a discriminatory manner, 
     against the officer who is the subject of the charge, and the 
     charge was brought in good faith; and
       ``(E) the proposed disciplinary action reasonably relates 
     to the seriousness of the alleged violation and to the record 
     of service of the officer who is the subject of the charge.
       ``(18) No commission of a violation.--If the officer who is 
     the subject of the disciplinary hearing is found not to have 
     committed the alleged violation--
       ``(A) the matter is concluded;
       ``(B) no disciplinary action may be taken against the 
     officer;
       ``(C) the personnel file of that officer shall not contain 
     any reference to the charge for which the officer was found 
     not guilty; and
       ``(D) any pay and benefits lost or deferred during the 
     pendency of the disposition of the charge shall be restored 
     to the officer as though no charge had ever been filed 
     against the officer, including salary or regular pay, 
     vacation, holidays, longevity pay, education incentive pay, 
     shift differential, uniform allowance, lost overtime, or 
     other premium pay opportunities, and lost promotional 
     opportunities.
       ``(19) Commission of a violation.--
       ``(A) In general.--If the officer who is the subject of the 
     charge is found to have committed the alleged violation, the 
     hearing officer or board shall make a written recommendation 
     of a penalty to the law enforcement agency employing the 
     officer or any other governmental entity that has final 
     disciplinary authority, as provided by applicable State or 
     local law.
       ``(B) Penalty.--The employing agency or other governmental 
     entity may not impose a penalty greater than the penalty 
     recommended by the hearing officer or board.
       ``(20) Appeal.--Any officer who has been found to have 
     committed an alleged violation may appeal from a final 
     decision of a hearing officer or hearing board to a court of 
     competent jurisdiction or to an independent neutral 
     arbitrator to the extent available in any other 
     administrative proceeding under applicable State or local 
     law, or a collective bargaining agreement.
       ``(i) Waiver of Rights.--
       ``(1) In general.--An officer who is notified that the 
     officer is under investigation or is the subject of a charge 
     may, after such notification, waive any right or procedure 
     guaranteed by this section.
       ``(2) Written waiver.--A written waiver under this 
     subsection shall be--
       ``(A) in writing; and
       ``(B) signed by--
       ``(i) the officer, who shall have consulted with counsel or 
     a representative before signing any such waiver; or
       ``(ii) the counsel or representative of the officer, if 
     expressly authorized by subsection (h).
       ``(j) Summary Punishment.--Nothing in this section shall 
     preclude a public agency from imposing summary punishment.
       ``(k) Emergency Suspension.--Nothing in this section may be 
     construed to preclude a law enforcement agency from imposing 
     an emergency suspension on a law enforcement officer, except 
     that any such suspension shall--
       ``(1) be followed by a hearing in accordance with the 
     requirements of subsection (h); and
       ``(2) not deprive the affected officer of any pay or 
     benefit.
       ``(l) Retaliation for Exercising Rights.--There shall be no 
     imposition of, or threat of, disciplinary action or other 
     penalty against a law enforcement officer for the exercise of 
     any right provided to the officer under this section.
       ``(m) Other Remedies Not Impaired.--Nothing in this section 
     may be construed to impair any other right or remedy that a 
     law enforcement officer may have under any constitution, 
     statute, ordinance, order, rule, regulation, procedure, 
     written policy, collective bargaining agreement, or any other 
     source.
       ``(n) Declaratory or Injunctive Relief.--A law enforcement 
     officer who is aggrieved by a violation of, or is otherwise 
     denied any right afforded by, the Constitution of the United 
     States, a State constitution, this section, or any 
     administrative rule or regulation promulgated pursuant 
     thereto, may file suit in any Federal or State court of 
     competent jurisdiction for declaratory or injunctive relief 
     to prohibit the law enforcement agency from violating or 
     otherwise denying such right, and such court shall have 
     jurisdiction, for cause shown, to restrain such a violation 
     or denial.
       ``(o) Protection of Law Enforcement Officer Personnel 
     Files.--
       ``(1) Restrictions on adverse material maintained in 
     officers' personnel records.--
       ``(A) In general.--Unless the officer has had an 
     opportunity to review and comment, in writing, on any adverse 
     material included in a personnel record relating to the 
     officer, no law enforcement agency or other governmental 
     entity may--
       ``(i) include the adverse material in that personnel 
     record; or
       ``(ii) possess or maintain control over the adverse 
     material in any form as a personnel record within the law 
     enforcement agency or elsewhere in the control of the 
     employing governmental entity.
       ``(B) Responsive material.--Any responsive material 
     provided by an officer to adverse material included in a 
     personnel record pertaining to the officer shall be--
       ``(i) attached to the adverse material; and
       ``(ii) released to any person or entity to whom the adverse 
     material is released in accordance with law and at the same 
     time as the adverse material is released.
       ``(2) Right to inspection of, and restrictions on access to 
     information in, the officer's own personnel records.--
       ``(A) In general.--Subject to subparagraph (B), a law 
     enforcement officer shall have the right to inspect all of 
     the personnel records of the officer not less than annually.
       ``(B) Restrictions.--A law enforcement officer shall not 
     have access to information in the personnel records of the 
     officer if the information--
       ``(i) relates to the investigation of alleged conduct that, 
     if proven, would constitute or have constituted a definite 
     violation of a statute providing for criminal penalties, but 
     as to which no formal charge was brought;
       ``(ii) contains letters of reference for the officer;
       ``(iii) contains any portion of a test document other than 
     the results;
       ``(iv) is of a personal nature about another officer, and 
     if disclosure of that information in non-redacted form would 
     constitute a clearly unwarranted intrusion into the privacy 
     rights of that other officer; or
       ``(v) is relevant to any pending claim brought by or on 
     behalf of the officer against the employing agency of that 
     officer that may be discovered in any judicial or 
     administrative proceeding between the officer and the 
     employer of that officer.
       ``(p) States' Rights.--
       ``(1) In general.--Nothing in this section may be 
     construed--
       ``(A) to preempt any State or local law, or any provision 
     of a State or local law, in effect on the date of enactment 
     of the State and Local Law Enforcement Discipline, 
     Accountability, and Due Process Act of 2001, that confers a 
     right or a protection that equals or exceeds the right or 
     protection afforded by this section; or
       ``(B) to prohibit the enactment of any State or local law 
     that confers a right or protection that equals or exceeds a 
     right or protection afforded by this section.
       ``(2) State or local laws preempted.--A State or local law, 
     or any provision of a State or local law, that confers fewer 
     rights or provides less protection for a law enforcement 
     officer than any provision in this section shall be preempted 
     by this section.
       ``(q) Collective Bargaining Agreements.--Nothing in this 
     section may be construed to--
       ``(1) preempt any provision in a mutually agreed-upon 
     collective bargaining agreement, in effect on the date of 
     enactment of the State and Local Law Enforcement Discipline, 
     Accountability, and Due Process Act of 2001, that provides 
     for substantially the same or a greater right or protection 
     afforded under this section; or
       ``(2) prohibit the negotiation of any additional right or 
     protection for an officer who is subject to any collective 
     bargaining agreement.''.
       (b) Technical Amendment.--The table of contents of title I 
     of the Omnibus Crime Control and Safe Streets Act of 1968 (42 
     U.S.C. 3711 et seq.) is amended by inserting after the item 
     relating to section 819 the following:

``Sec. 820. Discipline, accountability, and due process of State and 
              local law enforcement officers.''.

     SEC. 4. PROHIBITION OF FEDERAL CONTROL OVER STATE AND LOCAL 
                   CRIMINAL JUSTICE AGENCIES.

       Nothing in this Act shall be construed to authorize any 
     department, agency, officer, or employee of the United States 
     to exercise any direction, supervision, or control of any 
     police force or any criminal justice agency of any State or 
     any political subdivision thereof.

     SEC. 5. EFFECTIVE DATE.

       The amendments made by this Act shall take effect with 
     respect to each State on the earlier of--
       (1) 2 years after the date of enactment of this Act; or
       (2) the conclusion of the second legislative session of the 
     State that begins on or after the date of enactment of this 
     Act.
                                 ______
                                 
      By Mr. VOINOVICH (for himself, Mrs. Clinton, Mr. DeWine, and Mr. 
        Schumer):
  S. 1279. A bill to amend the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act to authorize the President to carry out a 
program for the protection of the health and safety of residents, 
workers, volunteers, and others in a disaster area; to the Committee on 
Environmental and Public Works.
  Mr. VOINOVICH. Mr. President, I ask unanimous consent that the text 
of the Disaster Area and Health and Environmental Monitoring Act of 
2003 be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1279

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

[[Page S8132]]

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Disaster Area Health and 
     Environmental Monitoring Act of 2003''.

     SEC. 2. PROTECTION OF HEALTH AND SAFETY OF INDIVIDUALS IN A 
                   DISASTER AREA.

       Title IV of the Robert T. Stafford Disaster Relief and 
     Emergency Assistance Act is amended by inserting after 
     section 408 (42 U.S.C. 5174) the following:

     ``SEC. 409. PROTECTION OF HEALTH AND SAFETY OF INDIVIDUALS IN 
                   A DISASTER AREA.

       ``(a) Definitions.--In this section:
       ``(1) Individual.--The term `individual' includes--
       ``(A) a worker or volunteer who responds to a disaster, 
     including--
       ``(i) a police officer;
       ``(ii) a firefighter;
       ``(iii) an emergency medical technician;
       ``(iv) any participating member of an urban search and 
     rescue team; and
       ``(v) any other relief or rescue worker or volunteer that 
     the President determines to be appropriate;
       ``(B) a worker who responds to a disaster by assisting in 
     the cleanup or restoration of critical infrastructure in and 
     around a disaster area;
       ``(C) a person whose place of residence is in a disaster 
     area;
       ``(D) a person who is employed in or attends school, child 
     care, or adult day care in a building located in a disaster 
     area; and
       ``(E) any other person that the President determines to be 
     appropriate.
       ``(2) Program.--The term `program' means a program 
     described in subsection (b) that is carried out for a 
     disaster area.
       ``(3) Substance of concern.--The term `substance of 
     concern' means any chemical or substance associated with 
     potential acute or chronic human health effects, the risk of 
     exposure to which could potentially be increased as the 
     result of a disaster.
       ``(b) Program.--
       ``(1) In general.--If the President determines that 1 or 
     more substances of concern are being, or have been, released 
     in an area declared to be a disaster area under this Act, the 
     President may carry out a program for the protection, 
     assessment, monitoring, and study of the health and safety of 
     individuals to ensure that--
       ``(A) the individuals are adequately informed about and 
     protected against potential health impacts of the substance 
     of concern and potential mental health impacts in a timely 
     manner;
       ``(B) the individuals are monitored and studied over time, 
     including through baseline and follow-up clinical health 
     examinations, for--
       ``(i) any short- and long-term health impacts of any 
     substance of concern; and
       ``(ii) any mental health impacts;
       ``(C) the individuals receive health care referrals as 
     needed and appropriate; and
       ``(D) information from any such monitoring and studies is 
     used to prevent or protect against similar health impacts 
     from future disasters.
       ``(2) Activities.--A program under paragraph (1) may 
     include such activities as--
       ``(A) collecting and analyzing environmental exposure data;
       ``(B) developing and disseminating information and 
     educational materials;
       ``(C) performing baseline and follow-up clinical health and 
     mental health examinations and taking biological samples;
       ``(D) establishing and maintaining an exposure registry;
       ``(E) studying the long-term human health impacts of any 
     exposures through epidemiological and other health studies; 
     and
       ``(F) providing assistance to individuals in determining 
     eligibility for health coverage and identifying appropriate 
     health services.
       ``(3) Timing.--To the maximum extent practicable, a program 
     under paragraph (1) shall be established, and activities 
     under the program shall be commenced (including baseline 
     health examinations), in a timely manner that will ensure the 
     highest level of public health protection and effective 
     monitoring.
       ``(4) Participation in registries and studies.--
       ``(A) In general.--Participation in any registry or study 
     that is part of a program under paragraph (1) shall be 
     voluntary.
       ``(B) Protection of privacy.--The President shall take 
     appropriate measures to protect the privacy of any 
     participant in a registry or study described in subparagraph 
     (A).
       ``(5) Cooperative agreements.--The President may carry out 
     a program under paragraph (1) through a cooperative agreement 
     with a medical institution, or a consortium of medical 
     institutions, that is--
       ``(A) located near the disaster area, and near groups of 
     individuals that worked or volunteered in response to the 
     disaster in the disaster area, with respect to which the 
     program is carried out; and
       ``(B) experienced in the area of environmental or 
     occupational health, toxicology, and safety, including 
     experience in--
       ``(i) developing clinical protocols and conducting clinical 
     health examinations, including mental health assessments;
       ``(ii) conducting long-term health monitoring and 
     epidemiological studies;
       ``(iii) conducting long-term mental health studies; and
       ``(iv) establishing and maintaining medical surveillance 
     programs and environmental exposure or disease registries.
       ``(6) Involvement.--
       ``(A) In general.--In establishing and maintaining a 
     program under paragraph (1), the President shall ensure the 
     involvement of interested and affected parties, as 
     appropriate, including representatives of--
       ``(i) Federal, State, and local government agencies;
       ``(ii) labor organizations;
       ``(iii) local residents, businesses, and schools (including 
     parents and teachers);
       ``(iv) health care providers; and
       ``(v) other organizations and persons.
       ``(B) Committees.--Involvement under subparagraph (A) may 
     be provided through the establishment of an advisory or 
     oversight committee or board.
       ``(c) Reports.--Not later than 1 year after the 
     establishment of a program under subsection (b)(1), and every 
     5 years thereafter, the President, or the medical institution 
     or consortium of such institutions having entered into a 
     cooperative agreement under subsection (b)(5), shall submit 
     to the Secretary of Homeland Security, the Secretary of 
     Health and Human Services, the Secretary of Labor, the 
     Administrator of the Environmental Protection Agency, and 
     appropriate committees of Congress a report on programs and 
     studies carried out under the program.''.

     SEC. 3. BLUE RIBBON PANEL ON DISASTER AREA HEALTH PROTECTION 
                   AND MONITORING.

       (a) Establishment.--Not later than 60 days after the date 
     of enactment of this section, the Secretary of Homeland 
     Security, the Secretary of Health and Human Services, and the 
     Administrator of the Environmental Protection Agency shall 
     jointly establish a Blue Ribbon Panel on Disaster Area Health 
     Protection and Monitoring (referred to in this section as the 
     ``Panel'').
       (b) Membership.--
       (1) In general.--The Panel shall be composed of--
       (A) 15 voting members, to be appointed by the Secretary of 
     Homeland Security, the Secretary of Health and Human 
     Services, and the Administrator of the Environmental 
     Protection Agency in accordance with paragraph (2); and
       (B) officers or employees of the Department of Health and 
     Human Services, the Department of Homeland Security, the 
     Environmental Protection Agency, and other Federal agencies, 
     as appropriate, to be appointed by the Secretary of Health 
     and Human Services, the Secretary of Homeland Security, and 
     the Administrator of the Environmental Protection Agency as 
     nonvoting, ex officio members of the Panel.
       (2) Background and expertise.--The voting members of the 
     Panel shall be individuals who--
       (A) are not officers or employees of the Federal 
     Government; and
       (B) have expertise in--
       (i) environmental health, safety, and medicine;
       (ii) occupational health, safety, and medicine;
       (iii) clinical medicine, including pediatrics;
       (iv) toxicology;
       (v) epidemiology;
       (vi) mental health;
       (vii) medical monitoring and surveillance;
       (viii) environmental monitoring and surveillance;
       (ix) environmental and industrial hygiene;
       (x) emergency planning and preparedness;
       (xi) public outreach and education;
       (xii) State and local health departments;
       (xiii) State and local environmental protection 
     departments;
       (xiv) functions of workers that respond to disasters, 
     including first responders; and
       (xv) public health and family services.
       (c) Duties.--
       (1) In general.--The Panel shall provide advice and 
     recommendations regarding protecting and monitoring the 
     health and safety of individuals potentially exposed to any 
     chemical or substance associated with potential acute or 
     chronic human health effects as the result of a disaster, 
     including advice and recommendations regarding--
       (A) the implementation of programs under section 409 of the 
     Robert T. Stafford Disaster Relief and Emergency Assistance 
     Act (as added by section 2); and
       (B) the establishment of protocols for the monitoring of 
     and response to releases of substances of concern (as defined 
     in section 409(a) of the Robert T. Stafford Disaster Relief 
     and Emergency Assistance Act (as added by section 2)) in a 
     disaster area for the purpose of protecting public health and 
     safety, including--
       (i) those substances of concern for which samples should be 
     collected in the event of a disaster, including a terrorist 
     attack;
       (ii) chemical-specific methods of sample collection, 
     including sampling methodologies and locations;
       (iii) chemical-specific methods of sample analysis;
       (iv) health-based threshold levels to be used and response 
     actions to be taken in the event that thresholds are exceeded 
     for individual chemicals or substances;
       (v) procedures for providing monitoring results to--

       (I) appropriate Federal, State, and local government 
     agencies;
       (II) appropriate response personnel; and
       (III) the public;

       (vi) responsibilities of Federal, State and local agencies 
     for--

       (I) collecting and analyzing samples;
       (II) reporting results; and

[[Page S8133]]

       (III) taking appropriate response actions; and

       (vii) capabilities and capacity within the Federal 
     Government to conduct appropriate environmental monitoring 
     and response in the event of a disaster, including a 
     terrorist attack; and
       (C) other issues as specified by the Secretary of Homeland 
     Security, the Secretary of Health and Human Services, and the 
     Administrator of the Environmental Protection Agency.
       (2) Report.--Not later than 1 year after the date of 
     establishment of the Panel, the Panel shall submit to the 
     Secretary of Homeland Security, the Secretary of Health and 
     Human Services, and the Administrator of the Environmental 
     Protection Agency a report of the findings and 
     recommendations of the Panel under this section, including 
     recommendations for such legislative and administrative 
     actions as the Panel considers to be appropriate.
       (d) Powers.--
       (1) Hearings.--The Panel may hold such hearings, sit and 
     act at such times and places, take such testimony, and 
     receive such evidence as the Panel considers necessary to 
     carry out this section.
       (2) Information from federal agencies.--
       (A) In general.--The Panel may secure directly from any 
     Federal department or agency such information as the Panel 
     considers necessary to carry out this section.
       (B) Furnishing of information.--On request of the Panel, 
     the head of the department or agency shall furnish the 
     information to the Panel.
       (3) Postal services.--The Panel may use the United States 
     mails in the same manner and under the same conditions as 
     other departments and agencies of the Federal Government.
       (e) Personnel.--
       (1) Travel expenses.--The members of the Panel shall not 
     receive compensation for the performance of services for the 
     Panel, but shall be allowed travel expenses, including per 
     diem in lieu of subsistence, at rates authorized for 
     employees of agencies under subchapter I of chapter 57 of 
     title 5, United States Code, while away from their homes or 
     regular places of business in the performance of services for 
     the Panel.
       (2) Voluntary and uncompensated services.--Notwithstanding 
     section 1342 of title 31, United States Code, the Secretary 
     may accept the voluntary and uncompensated services of 
     members of the Panel.
       (3) Detail of government employees.--Any Federal Government 
     employee may be detailed to the Panel without reimbursement, 
     and such detail shall be without interruption or loss of 
     civil service status or privilege.
       (4) Staff, information, and other assistance.--The 
     Secretary of Homeland Security, the Secretary of Health and 
     Human Services, and the Administrator of the Environmental 
     Protection Agency shall provide to the Panel such staff, 
     information, and other assistance as may be necessary to 
     carry out the duties of the Panel.
       (f) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this section.
       (g) Termination of Authority.--This section, the authority 
     provided under this section, and the Panel shall terminate on 
     the date that is 18 months after the date of enactment of 
     this Act.
                                 ______
                                 
      By Mr. GRAHAM of Florida:
  S. 1281. A bill to amend title 38, United Stated Code, to presume 
additional diseases of former prisoners of war to be service-connected 
for compensation purposes, to enhance the Dose Reconstruction Program 
of the Department of Defense, to enhance and fund certain other 
epidemiological studies, and for other purposes; to the Committee on 
Veterans' Affairs.
  Mr. GRAHAM of Florida. Madam President, today I introduce legislation 
that would take one more step toward finding answers for veterans who 
may have been exposed to radiation, Agent Orange, or other hazards 
during their military service.
  The last century saw the nature of war change forever. When mustard 
gas drifted across the trenches of World War I, troops learned that 
dangers less tangible, but no less deadly, than bullets might fill the 
air. Since then, many veterans have questioned whether health effects 
of the environmental hazards that they faced on and off the battlefield 
might appear years or even decades later.
  Congress, VA, the military, and scores of independent researchers 
have struggled to answer those questions. Many veterans still wait for 
scientific evidence to fill the gaps. However, research in some areas 
has linked specific exposures to a risk of later disease, and we must 
respond to those new findings and encourage further investigation.
  Peer-reviewed studies published in recent years suggest that veterans 
held prisoner during World War II, the Korean War, and in Vietnam 
suffer from some chronic diseases at a higher rate than expected. 
Scientists now report that the toll taken by malnutrition, long periods 
of forced confinement, and untreated infections appears to pose a 
lifelong risk. Based on these findings, I have introduced legislation 
that would add heart disease, strokes, and chronic liver diseases to 
the list of diseases that can be presumptively connected to service for 
certain former prisoners of war. This would allow eligible veterans 
with these conditions to seek VA benefits without having to prove that 
their illnesses resulted from deprivations suffered during captivity.
  Other veterans who were exposed to large doses of ionizing radiation 
in post-war Japan or during nuclear tests, and who suffer from 
illnesses thought to be caused by radiation, can currently claim 
eligibility for VA benefits. However, some veterans who believe they 
received high doses of radiation have been frustrated to find that 
their military records do not reflect the same assumptions. Congress 
mandated nearly 20 years ago that veterans who suffer from diseases 
that they suspect might be linked to radiation exposure during service 
could request a dose reconstruction, or a scientific estimate of past 
exposure levels, to remedy this.
  Many veterans felt that this method fell short of expectations, and 
Congress responded in 1998 by requiring an independent review of the 
Dose Reconstruction Program conducted by the Department of Defense. A 
panel of experts convened by the National Academy of Sciences reported 
recently that this contractor-operated program suffered from a 
shockingly cavalier approach to quality assurance, resulting in data 
that failed to meet the standards assumed by VA and veterans. This is 
not acceptable. Provisions introduced here would require the 
Secretaries of VA and Defense to establish permanent independent 
oversight of the Dose Reconstruction Program, and to create an advisory 
board to improve the program as necessary.
  Our understanding of the consequences of exposure to the herbicides 
and dioxin in Agent Orange remains far from complete. It has been 
almost 25 years since Congress required the Air Force to conduct an 
epidemiologic study of the veterans of Operation Ranch Hand, the unit 
responsible for aerial spraying of herbicides during the Vietnam War. 
The last scheduled round of physical examinations took place just last 
month, and the fate of the millions of medical records and specimens 
remains undecided. Experts agree that both samples and data should be 
preserved for further research, but do not share an opinion on the best 
way to do so. The bill that I have introduced would task the National 
Academy of Sciences to develop research recommendations for extending 
the Air Force Health Study, or for preserving the samples and making 
them accessible to independent researchers as requested by many 
veterans' organizations.
  Finally, the legislation that I have introduced would ensure that the 
scientific body charged with tracking veterans' and military health can 
continue its mission. The Medical Follow-Up Agency, MFUA, a board of 
the Institute of Medicine--the health agency of the National Academy of 
Sciences--was created at the end of World War II at the urging of the 
Army Surgeon General. For many years, it received funding only 
sporadically. In 1988, the now-defunct Office of Technology Assessment 
reported that MFUA's critical contribution to understanding military 
health issues was limited by a lack of consistent funding, which caused 
high staff turnover, incohesiveness in the research portfolio, and 
failure to maintain records.
  Congress responded with Public Law 102-585, which required that VA 
and the military each contribute $250,000 in annual core funding to 
MFUA for 10 years. MFUA's staff uses this funding to update, maintain, 
and improve long-term epidemiological studies of military and veterans 
populations. Congress, VA, the military, and independent scientists 
have relied on these studies to evaluate whether specific exposures 
might have long-term health effects that suggest a need for benefits, 
new treatments, or further research. The legislation that I have 
introduced would extend MFUA's core funding for 10 more years.
  This legislation would demonstrate to those who serve their nation 
now

[[Page S8134]]

that our commitment to them will not end with the wars that they fight. 
We must continue to seek remedies for the sometimes invisible wounds of 
the new battlefield, and ensure that those who have borne them receive 
the support that they need. I urge my colleagues in the Senate to join 
me in supporting this legislation.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1281

       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 ``Veterans Information and 
     Benefits Enhancement Act of 2003''.

     SEC. 2. PRESUMPTION OF ADDITIONAL DISEASES OF FORMER 
                   PRISONERS OF WAR TO BE SERVICE-CONNECTED FOR 
                   COMPENSATION PURPOSES.

       (a) Presumption.--Section 1112(b) of title 38, United 
     States Code, is amended--
       (1) in paragraph (14), by striking ``or'' at the end; and
       (2) by inserting after paragraph (15) the following new 
     paragraphs:
       ``(16) cardiovascular disease (heart disease),
       ``(17) cerebrovascular disease (stroke), or
       ``(18) chronic liver disease, including cirrhosis and 
     primary liver carcinoma,''.
       (b) Effective Date.--(1) The amendments made by subsection 
     (a) shall take effect on the date of the enactment of this 
     Act.
       (2) No benefit may be paid by reason of the amendments made 
     by subsection (a) for any period before the date of the 
     enactment of this Act.

     SEC. 3. DOSE RECONSTRUCTION PROGRAM OF DEPARTMENT OF DEFENSE.

       (b) Review of Mission, Procedures, and Administration.--(1) 
     The Secretary of Veterans Affairs and the Secretary of 
     Defense shall jointly conduct a review of the mission, 
     procedures, and administration of the Dose Reconstruction 
     Program of the Department of Defense.
       (2) In conducting the review under paragraph (1), the 
     Secretaries shall--
       (A) determine whether any additional actions are required 
     to ensure that the quality assurance and quality control 
     mechanisms of the Dose Reconstruction Program are adequate 
     and sufficient for purposes of the program; and
       (B) determine the actions that are required to ensure that 
     the mechanisms of the Dose Reconstruction Program for 
     communication and interaction with veterans are adequate and 
     sufficient for purposes of the program, including mechanisms 
     to permit veterans to review the assumptions utilized in 
     their dose reconstructions.
       (3) Not later than 90 days after the date of the enactment 
     of this Act, the Secretaries shall jointly submit to Congress 
     a report on the review under paragraph (1). The report shall 
     set forth--
       (A) the results of the review;
       (B) a plan for any actions determined to be required under 
     paragraph (2); and
       (C) such other recommendations for the improvement of the 
     mission, procedures, and administration of the Dose 
     Reconstruction Program as the Secretaries jointly consider 
     appropriate.
       (b) On-Going Review and Oversight.--The Secretaries shall 
     jointly take appropriate actions to ensure the on-going 
     independent review and oversight of the Dose Reconstruction 
     Program, including the establishment of the advisory board 
     required by subsection (c).
       (c) Advisory Board.--(1) In taking actions under subsection 
     (b), the Secretaries shall jointly appoint an advisory board 
     to provide review and oversight of the Dose Reconstruction 
     Program.
       (2) The advisory board under paragraph (1) shall be 
     composed of the following:
       (A) At least one expert in historical dose reconstruction 
     of the type conducted under the Dose Reconstruction Program.
       (B) At least one expert in radiation health matters.
       (C) At least one expert in risk communications matters.
       (D) A representative of the Department of Veterans Affairs.
       (E) A representative of the Defense Threat Reduction 
     Agency.
       (F) At least three veterans, including at least one veteran 
     who is a member of an atomic veterans group.
       (3) The advisory board under paragraph (1) shall--
       (A) conduct periodic, random audits of dose reconstructions 
     and decisions on claims for radiogenic diseases under the 
     Dose Reconstruction Program;
       (B) assist the Department of Veterans Affairs and the 
     Defense Threat Reduction Agency in communicating to veterans 
     information on the mission, procedures, and evidentiary 
     requirements of the Dose Reconstruction Program; and
       (C) carry out such other activities with respect to the 
     review and oversight of the Dose Reconstruction Program as 
     the Secretaries shall jointly specify.
       (4) The advisory board under paragraph (1) may make such 
     recommendations on modifications in the mission or procedures 
     of the Dose Reconstruction Program as the advisory board 
     considers appropriate as a result of the audits conducted 
     under paragraph (3)(A).

     SEC. 4. STUDY ON DISPOSITION OF AIR FORCE HEALTH STUDY.

       (a) In General.--The Secretary of Veterans Affairs shall, 
     in accordance with this section, carry out a study to 
     determine the appropriate disposition of the Air Force Health 
     Study, an epidemiologic study of Air Force personnel who were 
     responsible for conducting aerial spray missions of 
     herbicides during the Vietnam era.
       (b) Study Through National Academy of Sciences.--Not later 
     than sixty days after the date of the enactment of this Act, 
     the Secretary shall seek to enter into an agreement with the 
     National Academy of Sciences, or another appropriate 
     scientific organization, to carry out the study required by 
     subsection (a).
       (c) Elements.--Under the study under subsection (a), the 
     National Academy of Sciences, or other appropriate scientific 
     organization, shall address the following:
       (1) The scientific merit of retaining and maintaining the 
     medical records, other study data, and laboratory specimens 
     collected in the course of the Air Force Health Study after 
     the currently-scheduled termination date of the study in 
     2006.
       (2) Whether or not any obstacles exist to retaining and 
     maintaining the medical records, other study data, and 
     laboratory specimens referred to in paragraph (1), including 
     privacy concerns.
       (3) The advisability of providing independent oversight of 
     the medical records, other study data, and laboratory 
     specimens referred to in paragraph (1), and of any further 
     study of such records, data, and specimens, and, if so, the 
     mechanism for providing such oversight.
       (4) The advisability of extending the Air Force Health 
     Study, including the potential value and relevance of 
     extending the study, the potential cost of extending the 
     study, and the Federal or non-Federal entity best suited to 
     continue the study if extended.
       (5) The advisability of making the laboratory specimens of 
     the Air Force Health Study available for independent 
     research, including the potential value and relevance of such 
     research, and the potential cost of such research.
       (d) Report.--Not later than 60 days after entering into an 
     agreement under subsection (b), the National Academy of 
     Sciences, or other appropriate scientific organization, shall 
     submit to the Secretary and Congress a report on the results 
     of the study under subsection (a). The report shall include 
     the results of the study, including the matters addressed 
     under subsection (c), and such other recommendations as the 
     Academy, or other appropriate scientific organization, 
     considers appropriate as a result of the study.

     SEC. 5. FUNDING OF MEDICAL FOLLOW-UP AGENCY OF INSTITUTE OF 
                   MEDICINE OF NATIONAL ACADEMY OF SCIENCES FOR 
                   EPIDEMIOLOGICAL RESEARCH ON MEMBERS OF THE 
                   ARMED FORCES AND VETERANS.

       (a) Funding by Department of Veterans Affairs.--(1) The 
     Secretary of Veterans Affairs shall make available to the 
     National Academy of Sciences in each of fiscal years 2004 
     through 2013, $250,000 for the Medical Follow-Up Agency of 
     the Institute of Medicine of the Academy for purposes of 
     epidemiological research on members of the Armed Forces and 
     veterans.
       (2) The Secretary of Veterans Affairs shall make available 
     amounts under paragraph (1) for a fiscal year from amounts 
     available for the Department of Veterans Affairs for that 
     fiscal year.
       (b) Funding by Department of Defense.--(1) The Secretary of 
     Defense shall make available to the National Academy of 
     Sciences in each of fiscal years 2004 through 2013, $250,000 
     for the Medical Follow-Up Agency for purposes of 
     epidemiological research on members of the Armed Forces and 
     veterans.
       (2) The Secretary of Defense shall make available amounts 
     under paragraph (1) for a fiscal year from amounts available 
     for the Department of Defense for that fiscal year.
       (c) Use of Funds.--The Medical Follow-Up Agency shall use 
     funds made available under subsections (a) and (b) for 
     epidemiological research on members of the Armed Forces and 
     veterans.
       (d) Supplement Not Supplant.--Amounts made available to the 
     Medical Follow-Up Agency under this section for a fiscal year 
     for the purposes referred to in subsection (c) are in 
     addition to any other amounts made available to the Agency 
     for that fiscal year for those purposes.
                                 ______
                                 
      By Mr. GRAHAM of Florida (for himself, Mr. Nelson of Florida, and 
        Mr. Sessions):
  S. 1282. A bill to require the Secretary of Veterans Affairs to 
establish national cemeteries for geographically underserved 
populations of veterans, and for other purposes; to the Committee on 
Veterans' Affairs.
  Mr. GRAHAM of Florida. Madam President, I rise today to introduce 
legislation that will ensure that America's veterans and their families 
have access to the funeral honors they have earned. The brave men and 
women who fought for our Nation are a population that is aging rapidly. 
In 2002, America

[[Page S8135]]

lost 646,264 veterans. Projections show that this rate will continue to 
climb through the year 2008, when the annual death of the World War II 
and Korea-era veterans will peak at 700,000.
  By the end of 2004, only 64 of the 124 veterans national cemeteries 
will be available for both casketed and cremated remains. As cemetery 
service capabilities decrease, veterans in areas near those cemeteries 
that are at capacity may lose access to burial options located within a 
reasonable distance of their homes. In order to ensure that burial 
options are provided for veterans and their family members, we must 
develop new cemeteries and expand existing cemeteries. This process 
must start as soon as possible because the construction of a new 
cemetery takes an average of 7 years.
  That is why I offer this bill today, which would authorize the 
construction of ten new national cemeteries and ensure that the burial 
needs of veterans and their family members will be met in the future.
  In anticipation of veterans' future needs, the Department of Veterans 
Affairs conducted a study that identifies veteran population centers 
not served by an open national or state veterans cemetery. The report, 
``Future Burial Needs,'' was initially released in May 2002 and has 
been recently revised using veteran population estimates from the 2000 
census. My legislation would direct the Department of Veterans Affairs 
to establish ten new national veterans cemeteries in the top ten areas 
identified to be in the greatest need. These areas would include 
Sarasota, FL, Salem, OR, Birmingham, AL, St. Louis, MO, San Antonio, 
TX, Chesapeake, VA, Sumter, FL, Bakersfield, CA, Jacksonville, FL, and 
Philadelphia, PA.
  We can not afford to wait any longer if we are to fulfill this 
commitment to our nation's veterans. Mr. President, I am proud to 
sponsor this important bill, and look forward to the support of my 
colleagues as we provide for our veterans who have given so much for 
our country. Thank you.
  I ask unanimous consent that the text of this bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1281

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

     SECTION 1. ESTABLISHMENT OF NATIONAL CEMETERIES FOR 
                   GEOGRAPHICALLY UNDERSERVED POPULATIONS OF 
                   VETERANS.

       (a) Identification of Underserved Burial Service Areas.--
     The Secretary of Veterans Affairs shall identify the 10 
     burial service areas in the United States that, as determined 
     by the Secretary, are most in need of a new national cemetery 
     in order to ensure that 90 percent of the veterans who reside 
     in each such service area live within 75 miles of a national 
     cemetery.
       (b) Burial Service Area.--For purposes of this section, the 
     term ``burial service area'' means a service area for burial 
     in national cemeteries that is established by the Secretary 
     utilizing the most current population data available to the 
     Secretary as of the date of the enactment of this Act, which 
     service area--
       (1) has a radius of approximately 75 miles;
       (2) contains a minimum population of veterans of 
     approximately 170,000 veterans; and
       (3) is not served as of the date of the enactment of this 
     Act by a national cemetery or State cemetery for veterans.
       (c) Establishment of National Cemeteries.--The Secretary 
     shall establish, in accordance with chapter 24 of title 38, 
     United States Code, a national cemetery in each burial 
     service area identified under subsection (a) in order to 
     serve the burial needs of veterans and their families.
       (d) Advance Planning.--(1) The Secretary shall carry out in 
     fiscal year 2004 such activities as the Secretary considers 
     appropriate for advance planning for the establishment of 
     national cemeteries under subsection (c).
       (2) Amounts appropriated for fiscal year 2004 for the 
     advance planning fund in the Construction, Major Projects 
     account shall be available for activities under paragraph 
     (1).
       (e) Reports.--(1) Not later than 120 days after the date of 
     the enactment of this Act, the Secretary shall submit to 
     Congress a report on the establishment of national cemeteries 
     under subsection (c). The report shall set forth the 
     following:
       (A) Each burial service area identified by the Secretary 
     under subsection (a) to require the establishment of a 
     national cemetery under subsection (c).
       (B) A schedule for the establishment of each such national 
     cemetery.
       (C) An estimate of the costs of the establishment of each 
     such national cemetery.
       (D) The amount to be obligated under subsection (d) during 
     fiscal year 2004 for advance planning required under that 
     subsection.
       (2) Not later than one year after the date of the report 
     under paragraph (1), and annually thereafter until the 
     completion of each national cemetery required by subsection 
     (c), the Secretary shall submit to Congress an update of the 
     report under that paragraph (as previously updated, if at 
     all, under this paragraph).
                                 ______
                                 
      By Mr. GRAHAM of Florida:
  S. 1283. A bill to require advance notification of Congress regarding 
any action proposed to be taken by the Secretary of Veterans Affairs in 
the implementation of the Capital Asset Realignment for Enhanced 
Services initiative of the Department of Veterans Affairs, and for 
other purposes; to the Committee on Veterans' Affairs.
  Mr. GRAHAM of Florida. Madam President, the Department of Veterans 
Affairs, VA, is in the midst of determining how best to serve the 
millions of veterans who turn to the VA health care system for their 
care. This process--known as CARES or Capital Asset Realignment for 
Enhanced Services--will likely bring significant change to the VA 
system. Recommendations stemming from this process could lead to 
billions of dollars in new facilities construction, on the one hand, 
and possible closure of facilities and thousands of beds, on the other. 
Despite the magnitude of these possible changes, Congress has virtually 
no formal role in the process.
  I introduce legislation today that would allow for Congressional 
review of the CARES recommendations that the Secretary of VA will begin 
to implement at the end of this year.
  The CARES initiative has been ongoing since the Fall of 2002, tasking 
VA facilities with developing recommendations based on a review of 
population data; the conduct of market analyses of veterans' health 
care needs; the identification of planning initiatives for each market 
area; and most important, the significant involvement of stakeholders, 
including myriad public meetings. These so-called planning initiatives 
are ultimately slated to be passed on to the Secretary, who will then 
make the final decisions.
  While an independent review led by a national CARES Commission is 
already planned, in addition to public hearings--which I fully 
support--I must reiterate that Congress has little, if any, role in the 
CARES effort outside of construction authorization and appropriation 
activities. Yet, all states and most health care facilities will be 
affected by the results. The legislation I introduce today would give 
Congress a 60-day period to review the CARES recommendations submitted 
by the Secretary of Veterans Affairs. During that time, VA would be 
prohibited from moving forward with any bed or facility closures.
  This oversight is absolutely essential--particularly in light of 
recent events. Just last month, all VA health care networks submitted 
their plans to VA headquarters. These plans were developed following 
substantial analysis and thorough stakeholder involvement. While 
abiding by the criteria and process set forth by VA, facilities made 
their recommendations to the Under Secretary for Health. In a surprise 
move and an apparent manipulation of the process, VA instructed the 
network directors to re-evaluate the plans they had already submitted 
for 20 different VA facilities. They were told to ``evaluate a strategy 
to convert from a 24-hour operation to an 8 hour a day operation. This 
includes any inpatient care, including long term care.''
  One of these hospitals is in Lake City, in my home State of Florida. 
Network 8, which has responsibility for Lake City, had previously 
recommended that no long-term care beds be deactivated at this 
facility, yet they were told to go back to the drawing board to develop 
a strategy to close nursing home beds there.
  Another facility tasked with re-examining their plan is Bedford, 
Massachusetts. In their network's plan, submitted to the Under 
Secretary, officials stated that they had in fact considered 
``alternatives to consolidate Long Term Care, LTC, including the 
Alzheimer's and SCI Units, and Psychiatry inpatient beds from the 
Bedford to Brockton facilities'' yet, ``as final projections are not 
available for LTC inpatient beds and earlier projections indicated a 
substantial increase in LTC beds, it was determined to utilize current 
capacities.'' Despite these assessments to the contrary, VA has asked

[[Page S8136]]

that they instead plan to convert these facilities to outpatient 
operations only.
  Yet one more example of this apparent manipulation involves another 
facility now slated for bed closures, the Leavenworth VA Medical Center 
in Kansas. The network plan concluded that ``[r]ealignment of workload 
from Leavenworth to Kansas City would exceed current capacity. . . . 
Elimination of inpatient and outpatient primary care capabilities at 
Leavenworth would seriously undermine continuity of care for the 
remaining long-term care patients, reduce timely access to care, hinder 
its ability to provide ongoing support to the DoD facility located at 
Ft. Leavenworth . . . '' . Again, analysis conducted at the regional 
level resulted in a recommendation that VA is now directing be 
reconsidered.
  The VA facility in Knoxville, IA, is being targeted for significant 
changes as well. The current proposal is to move all of the beds from 
Knoxville to Des Moines. The Knoxville facility has more than 226 long-
term care beds, 40 domiciliary beds, and 34 inpatient psychiatric beds. 
We need to take a look at this proposal and the many others that will 
affect veterans all across the country.
  Other facilities asked to re-evaluate are: Batavia, Lyons, St. 
Albans, Montrose, Pittsburgh at Highland Drive, Augusta, Dublin, 
Lexington, Brecksville, Gulfport, Marlin/Waco, Vancouver, Livermore, 
and Hot Springs.
  While VA intends to present a five-year capital plan to Congress, 
there is nothing that requires VA to inform Members about possible 
reductions, closures, and other decisions that would have a deleterious 
effect on VA health care services and our veterans. This is 
unacceptable. Congress' role should not be limited to merely funding 
the implementation of these decisions; rather, we should be involved in 
a process that could result in the significant loss of inpatient, long-
term care, and domiciliary capacity at VA health care facilities 
nationwide. We can rectify this problem very easily, however, by 
enacting the legislation I propose today.
  In an internal VA memo, Secretary Principi stated that ``the CARES 
process may be one of the most important activities undertaken by VA 
this decade. The outcome of this process will construct the foundation 
for, and set the course of, our health care system for the first half 
of the 21st century.'' In light of the great impact of this initiative 
on VA health care services, as well as recent actions that threaten the 
integrity of the process, it is imperative that Congress be granted a 
mere 60 days to review VA's proposals. I urge my colleagues to join me 
in this effort to secure the future of health care for our nation's 
veterans.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1283

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

     SECTION 1. ADVANCE NOTIFICATION OF A DEPARTMENT OF VETERANS 
                   AFFAIRS CAPITAL ASSET REALIGNMENT INITIATIVE.

       (a) Requirement for Advance Notification.--Before taking 
     any action proposed under the Capital Asset Realignment for 
     Enhanced Services initiative of the Department of Veterans 
     Affairs, the Secretary of Veterans Affairs shall submit to 
     Congress a written notification of the intent to take such 
     action.
       (b) Limitation.--The Secretary of Veterans Affairs may not 
     take any proposed action described in subsection (a) until 
     the later of--
       (1) the expiration of the 60-day period beginning on the 
     date on which the Secretary submits to Congress the 
     notification of the proposed action required under subsection 
     (a); or
       (2) the expiration of a period of 30 days of continuous 
     session of Congress beginning on such date of notification 
     or, if either House of Congress is not in session on such 
     date, the first day after such date that both Houses of 
     Congress are in session.
       (c) Continuous Session of Congress.--For the purposes of 
     subsection (b)--
       (1) the continuity of session of Congress is broken only by 
     an adjournment of Congress sine die; and
       (2) the days on which either House is not in session 
     because of an adjournment of more than three days to a day 
     certain are excluded in the computation of any period of time 
     in which Congress is in continuous session.
                                 ______
                                 
      By Mr. CARPER:
  S. 1285. A bill to reform the postal laws of the United States; to 
the Committee on Governmental Affairs.
  Mr. CARPER. Madam President, I rise today to introduce the Postal 
Accountability and Enhancement Act of 2003, legislation that makes the 
reforms necessary for the Postal Service to thrive in the 21st Century 
and to better serve the American people.
  The Postal Service has, for the most part, operated in the same 
manner for more than thirty years. In the early 1970s, Senator Stevens 
and others led the effort in the Senate to create the Postal Service 
out of the failing Post Office Department. At the time, the Post Office 
Department received about 20 percent of its revenue from taxpayer 
subsidies. The service it provided was suffering and there was little 
money available to expand. By all accounts, the product of Senator 
Stevens' labors, the Postal Reorganization Act signed into law by 
President Nixon in 1971, has been a phenomenal success. The Postal 
Service today receives virtually no taxpayer support and the service 
its hundreds of thousands of employees provide to every American, every 
day is second to none. More than thirty years later, the Postal Service 
now delivers to 141 million addresses each day and is the anchor of a 
$900 billion mailing industry.
  All that said, the Postal Service is clearly in need of modernization 
once again. When it started out in 1971, nobody had access to fax 
machines, cell phones and pagers and nobody imagined that we would ever 
enjoy conveniences like e-mail and electronic bill pay. After decades 
of success, electronic diversion of mail volume coupled with economic 
recession and terrorism have made for some rough going at the Postal 
Service in recent years. In 2001, as Postmaster General Potter assumed 
his position, the Postal Service was projecting its third consecutive 
year of deficits. They lost $199 million in fiscal year 2000 and $1.68 
billion in fiscal year 2001. They were projecting losses of up to $4 
billion in fiscal year 2002. Mail volume was falling, revenues were 
below projections and the Postal Service was estimating that it needed 
to spend $4 billion on security enhancements in order to prevent a 
repeat of the tragic anthrax attacks that took several lives. The 
Postal Service was also perilously close to its $15 billion debt 
ceiling and had been forced to raise rates three times in less than two 
years in order to pay for its operations, further eroding mail volume.
  In recent months, however, the Postal Service's short-term financial 
outlook has improved. Under General Potter's strong leadership, Postal 
Service management cut a total of $2.9 billion in costs fiscal year 
2002. They did this mostly by eliminating 23,000 positions, mostly 
through attrition. This included 800 management positions at postal 
headquarters in Washington and 2,000 administrative positions in 
regional offices. They also continued their drive to further automate 
their processing operations, most notably in the area of flats 
processing. They have continued their construction freeze and ended 
their self-imposed ban on post office closings, resulting in the 
closing of dozens of post offices across the country.
  Most dramatically, the Postal Service learned in 2002 that an 
unfunded pension liability they once believed was as high as $32 
billion was actually $5 billion. My friend from Maine, Ms. Collins, and 
I responded with legislation, the Postal Civil Service Retirement 
System Funding Reform Act, signed into law by President Bush last 
month, which cuts the amount the Postal Service must pay into the Civil 
Service Retirement System each year by nearly $3 billion. This will 
free up money for debt reduction and prevent the need for another rate 
increase until at least 2006.
  Aggressive cost cutting and the lower pension payment, then, have put 
off the emergency that would have come if the Postal Service had 
reached their debt limit. Cost cutting can only go so far, however, and 
will not solve the Postal Service's long-term problems. It could 
actually hurt service. The Postal Service continues to add about 1.7 
million new delivery points each year, creating the need for thousands 
of new routes and thousands of new letter carriers to work them. In 
addition, faster-

[[Page S8137]]

growing parts of the country will need new or expanded postal 
facilities in the coming years. Even if the economy recovers soon and 
the Postal Service begins to see volume and revenues improve, we will 
still need to make the fundamental reforms necessary to make the Postal 
Service as successful in the 21st Century as it was in the 20th 
Century.
  As more and more customers turn to electronic forms of communication, 
letter carriers are bringing fewer and fewer pieces of mail to each 
address they serve. The rate increases that will be needed to maintain 
the Postal Service's current infrastructure, finance retirement 
obligations to its current employees, pay for new letter carriers and 
build facilities in growing parts of the country will only further 
erode mail volume. The Postal Service has been trying to improve on its 
own. They are making progress, but there is only so much they can do on 
their own.
  That is where my bill comes in. First, the Postal Accountability and 
Enhancement Act begins the process of developing a modern rate system 
for pricing Postal Service products. The new rate system, to be 
developed by a strengthened Postal Rate Commission, re-named the Postal 
Regulatory Commission, would allow retained earnings, provide the 
Postal Service more flexibility in setting prices and streamline 
today's burdensome ratemaking process. It would also allow rates to be 
increased on an expedited basis during crises like a sharp spike in 
fuel prices and require that the Regulatory Commission develop a 
``phased rate'' schedule whereby rate increases would be phased in 
gradually over a period of time.

  In addition, the new rate system authorized through my bill will 
allow the Postal Service to negotiate service agreements with 
individual mailers. The Postal Rate Commission recently approved a 
service agreement the Postal Service negotiated with Capital One, but 
the process for considering the agreement took almost a year and the 
Postal Service's authority to enter into agreements is not clearly 
spelled out in law. The Postal Accountability and Enhancement Act 
allows the Postal Service to enter into agreements if the revenue 
generated from them covers all costs attributable to the Postal Service 
and results in a greater contribution to the Postal Service's 
institutional costs. No agreement would be permitted if it resulted in 
higher rates for any other mailer or prohibited any similarly situated 
mailer from negotiating a similar agreement.
  Second, the Postal Accountability and Enhancement Act requires the 
Postal Regulatory Commission to set strong service standards for the 
Postal Service's Market Dominant products, a category made up mostly of 
those products, like First Class Mail, that are part of the postal 
monopoly. The Postal Service currently sets its own service standards, 
which allows them to pursue efforts like the elimination of Saturday 
delivery, a proposal floated two years ago. The new standards set by 
the Commission will aim to improve service and will be used by the 
Postal Service to establish performance goals and to rationalize their 
physical infrastructure. Once the standards are established, the Postal 
Service will recommend a list of facilities that can be closed or 
consolidated without hindering their ability to meet the standards. A 
new commission, called the Postal Network Modernization Commission, 
would then study the Postal Service's recommendations. The closings and 
consolidations recommended by this commission would be carried out, 
subject to approval by the President, unless Congress passed a 
resolution disapproving them.
  Third, the Postal Accountability and Enhancement Act ensures that the 
Postal Service competes fairly. The bill prohibits the Postal Service 
from issuing anti-competitive regulations and makes the State 
Department, instead of the Postal Service, responsible for setting U.S. 
foreign policy on mailing issues. It also subjects the Postal Service 
to State zoning, planning and land use laws, requires them to pay an 
assumed Federal income tax on products like packages and Express Mail 
that private firms also offer and requires that these products as a 
whole pay their share of the Postal Service's institutional costs.
  Fourth, the Postal Accountability and Enhancement Act improves Postal 
Service accountability, mostly by strengthening oversight. 
Qualifications for membership on the Regulatory Commission would be 
stronger than those for the Rate Commission so that Commissioners would 
have a background in finance or economics. Commissioners would also 
have the power to demand information from the Postal Service, including 
by subpoena, and have the power to punish them for violating rate and 
service regulations. In addition, the Commission will make an annual 
determination as to whether the Postal Service is in compliance with 
rate law and meeting service standards and will have the power to 
punish them for any transgressions.
  Finally, and most importantly, the Postal Accountability and 
Enhancement Act preserves universal service and forces the Postal 
Service to concentrate solely on what they do best--processing and 
delivering the mail to all Americans. The bill for the first time 
limits the Postal Service to providing ``postal services,'' meaning 
they would be prohibited from engaging in other lines of business, such 
as e-commerce, that draw time and resources away from letter and 
package delivery. It also explicitly preserves the requirement that the 
Postal Service ``bind the Nation together through the mail'' and serve 
all parts of the country, urban, suburban and rural, in a non-
discriminatory fashion. Any service standards established by the Postal 
Regulatory Commission will continue to ensure delivery to every 
address, every day. In addition, the bill maintains the prohibition on 
closing post offices solely because they operate at a deficit, ensuring 
that rural and urban customers continue to enjoy full access to retail 
postal services.
  One thing the Postal Accountability and Enhancement Act does not do, 
is blame postal employees for the Postal Service's problems. The bill 
preserves collective bargaining and does nothing that would harm postal 
employees' pay or benefits.

  Another thing the Postal Accountability and Enhancement Act does not 
do is privatize or downsize the Postal Service. The bill preserves the 
Postal Service's monopoly along with its sole access to the mailbox. 
While it could result in the closing of some postal facilities, the 
process I have laid out in the bill is completely driven by the service 
standards established by the Postal Regulatory Commission. Nothing will 
be closed for the sake of being closed. Instead, the bill encourages 
the Postal Service to find ways to improve customer access to retail 
services through things like vending machines or post offices located 
in grocery stores or pharmacies.
  As my colleagues are aware, President Bush last year announced the 
creation of the President's Commission on the United States Postal 
Service, which is expected to release a set of postal reform proposals 
this summer that I hope will offer some fair, balanced recommendations. 
It is also my hope, however, that the President's Commission look to 
the Postal Accountability and Enhancement Act as a touchstone as they 
complete their work. The bill is the product of nearly a decade's worth 
of work on postal reform in the House of Representatives led by 
Congressman John McHugh from New York and is based in large part on 
legislation Congressman McHugh introduced towards the end of the 107th 
Congress. While I cannot claim that the McHugh bill had unanimous 
support, it did draw the support of most postal employees, much of the 
mailing industry and the Postal Service's Board of Governors.
  When Treasury Department Under Secretary Peter Fisher addressed the 
President's Commission at its first meeting, he stated that everything 
was on the table and that the Commission's findings were not 
predetermined. I know there is some concern that the Commission will 
recommend privatization, and that this was the idea from the beginning. 
I will admit that I initially shared these feelings but, based on what 
I have heard about the Commission's deliberations, they appear on track 
to develop a reasonable set of recommendations. That said, I urge them 
to take careful consideration of the work Congress has done on postal 
reform in the past. Radical reforms undertaken at a number of foreign 
posts in recent years should teach us a lesson

[[Page S8138]]

about going too far. When the British deregulated Royal Mail, service 
began to suffer dramatically. When the New Zealand Post Office was 
privatized, universal service was eliminated and customers in rural 
areas were forced to pay for delivery. When Argentina privatized its 
Postal Authority, the new private entity went bankrupt even before the 
country's economic crisis began. We cannot afford to gamble with 
similar reforms at the Postal Service.
  I look forward to working with Chairman Collins, the Governmental 
Affairs Committee and all of my colleagues in passing comprehensive 
postal reform this year.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1285

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

     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.
Sec. 303. Postal Network Modernization Commission.
Sec. 304. Closure and consolidation of facilities.
Sec. 305. Congressional consideration of commission report.
Sec. 306. Nonappealability to Postal Regulatory Commission.

           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.
Sec. 406. Change-of-address order involving a commercial mail receiving 

              agency.
Sec. 407. Exception for competitive products.

                      TITLE V--GENERAL PROVISIONS

Sec. 501. Qualification requirements for Governors.
Sec. 502. Obligations.
Sec. 503. Private carriage of letters.
Sec. 504. Rulemaking authority.
Sec. 505. Noninterference with collective bargaining agreements, etc.
Sec. 506. Bonus authority.

                TITLE VI--ENHANCED REGULATORY COMMISSION

Sec. 601. Reorganization and modification of certain provisions.
Sec. 602. Authority for Postal Regulatory Commission to issue 
              subpoenas.
Sec. 603. Appropriations for the Postal Regulatory Commission.
Sec. 604. Redesignation of the Postal Rate Commission.

                     TITLE VII--INSPECTORS GENERAL

Sec. 701. Inspector General of the Postal Regulatory Commission.
Sec. 702. Inspector General of the United States Postal Service to be 
              appointed by the President.

                        TITLE VIII--EVALUATIONS

Sec. 801. Definition.
Sec. 802. Assessments of ratemaking, classification, and other 
              provisions.
Sec. 803. Study on equal application of laws to competitive products.
Sec. 804. Greater diversity in Postal Service executive and 
              administrative schedule management positions.
Sec. 805. Contracts with women, minorities, and small businesses.
Sec. 806. Rates for periodicals.
Sec. 807. Assessment of certain rate deficiencies.

      TITLE IX--MISCELLANEOUS; TECHNICAL AND CONFORMING AMENDMENTS

Sec. 901. Employment of postal police officers.
Sec. 902. Date of postmark to be treated as date of appeal in 
              connection with the closing or consolidation of post 
              offices.
Sec. 903. Provisions relating to benefits under chapter 81 of title 5, 
              United States Code, for officers and employees of the 
              former Post Office Department.
Sec. 904. Obsolete provisions.
Sec. 905. Expanded contracting authority.
Sec. 906. Investments.
Sec. 907. Repeal of section 5403.
Sec. 908. Technical and conforming amendments.

                 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 services ancillary thereto;
       ``(6) `product' means a postal service with a distinct cost 
     or market characteristic for which a rate is 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) 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, 3622, and 3623 
     and inserting the following:

     ``Sec. 3621. Applicability; definitions

       ``(a) Applicability.--This subchapter shall apply with 
     respect to--
       ``(1)(A) single piece first-class letters (both domestic 
     and international);
       ``(B) single piece first-class cards (both domestic and 
     international);
       ``(C) single piece parcels (both domestic and 
     international); and
       ``(D) special services;
       ``(2) all first-class mail not included under paragraph 
     (1);
       ``(3) periodicals;
       ``(4) standard mail (except for parcel post);
       ``(5) media mail;
       ``(6) library mail; and
       ``(7) bound printed matter,
     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 24 months after the date of the 
     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:
       ``(1) To reduce the administrative burden of the ratemaking 
     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.
       ``(c) Factors.--In establishing or revising such system, 
     the Postal Regulatory Commission shall take into account--
       ``(1) the establishment and maintenance of a fair and 
     equitable schedule for rates and classification system;

[[Page S8139]]

       ``(2) 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;
       ``(3) the direct and indirect postal costs attributable to 
     each class or type of mail service plus that portion of all 
     other costs of the Postal Service reasonably assignable to 
     such class or type;
       ``(4) 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;
       ``(5) the available alternative means of sending and 
     receiving letters and other mail matter at reasonable costs;
       ``(6) 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;
       ``(7) 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;
       ``(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; and
       ``(12) the policies of this title as well as such other 
     factors as the Commission deems appropriate.
       ``(d) Allowable Provisions.--The system for regulating 
     rates and classes for market-dominant products may include--
       ``(1) price caps, revenue targets, or other form of 
     incentive regulation;
       ``(2) cost-of-service regulation; or
       ``(3) such other form of regulation as the Commission 
     considers appropriate to achieve, consistent with subsection 
     (c), the objectives of subsection (b).
       ``(e) Requirements.--The system for regulating rates and 
     classes for market-dominant products shall--
       ``(1) establish a schedule whereby rates, when necessary, 
     would increase at regular intervals by predictable amounts; 
     and
       ``(2) establish procedures whereby rates may be increased 
     on a expedited basis when an unexpected decline in revenue or 
     increase in costs threatens the ability of the Postal Service 
     to maintain service at the standards established by the 
     Postal Regulatory Commission under section 3691.
       ``(f) Transition Rule.--Until regulations under this 
     section first take effect, 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 the enactment of this section.

     ``Sec. 3623. Service agreements for market-dominant products

       ``(a) In General.--
       ``(1) Authority.--The Postal Service may enter into service 
     agreements with mailers that provide for the provision of 
     postal services under terms and conditions that differ from 
     those that would apply under the otherwise applicable market-
     dominant mail classification.
       ``(2) Agreements.--An agreement under this section may 
     involve--
       ``(A) performance by the contracting mail user of mail 
     preparation, processing, transportation, or other functions 
     that reduce costs to the Postal Service;
       ``(B) performance by the Postal Service of additional mail 
     preparation, processing, transportation, or other functions 
     that increase costs to the Postal Service; or
       ``(C) other terms and conditions that meet the requirements 
     of subsections (b) and (c).
       ``(b) Requirements.--A service agreement under this section 
     may only be entered into if the agreement will benefit the 
     contracting mailer, the Postal Service, and mailers who are 
     not parties to the agreement and if each of the following 
     conditions is met:
       ``(1) The total revenue generated under the agreement--
       ``(A) will cover all costs attributable to the Postal 
     Service; and
       ``(B) will result in a greater contribution to the 
     institutional costs of the Postal Service than would have 
     been granted had the agreement not been entered into.
       ``(2) Rates and fees for other mailers will not increase as 
     a result of the agreement.
       ``(3) The agreement pertains exclusively to products in the 
     market-dominant category of mail.
       ``(4) The agreement will not preclude or materially hinder 
     similarly situated mail users from entering into agreements 
     with the Postal Service on the same, or substantially the 
     same, terms, and the Postal Service remains willing and able 
     to enter into such.
       ``(c) Limitations.--A service agreement under this section 
     shall--
       ``(1) be for a term of not to exceed 3 years; and
       ``(2) provide that such agreement shall be subject to the 
     cancellation authority of the Commission under section 3662.
       ``(d) Notice Requirements.--
       ``(1) In general.--At least 30 days before a service 
     agreement under this section is to take effect, the Postal 
     Service shall file with the Postal Regulatory Commission and 
     publish in the Federal Register the following:
       ``(A) With respect to each condition under subsection (b), 
     information in sufficient detail to demonstrate the bases for 
     the Postal Service's view that such condition would be met.
       ``(B) A description of the type of mail the agreement 
     involves.
       ``(C) The mail preparation, processing, transportation, 
     administration, or other additional functions, if any, the 
     mail user is to perform under the agreement.
       ``(D) The services or benefits the Postal Service is to 
     perform under the agreement.
       ``(E) The rates and fees payable by the mail user during 
     the term of the agreement.
       ``(2) Agreements less than national in scope.--In the case 
     of a service agreement under this section that is less than 
     national in scope, the information described under paragraph 
     (1) shall also be published by the Postal Service in a manner 
     designed to afford reasonable notice to persons within any 
     geographic area to which such agreement (or any amendment 
     thereto) pertains.
       ``(e) Equal Treatment Required.--If the Postal Service 
     enters into a negotiated service agreement with a mailer 
     under this section, the Postal Service shall make such 
     agreement available to other mailers on the same terms and 
     conditions.
       ``(f) Complaints.--Any person who believes that a service 
     agreement under this section is not (or, in the case of a 
     proposed agreement or a proposed amendment to a service 
     agreement under this section, would not be) in conformance 
     with the requirements of this section and regulations 
     thereunder, or who aggrieved by a decision of the Postal 
     Service not to enter into an agreement under this section, 
     may file a complaint with the Postal Regulatory Commission in 
     accordance with section 3662.
       ``(g) Postal Regulatory Commission Role.--
       ``(1) Regulations.--The Postal Regulatory Commission may 
     promulgate such regulations regarding service agreements as 
     the Commission determines necessary to implement the 
     requirements of this section.
       ``(2) Review.--The Postal Regulatory Commission may review 
     any agreement or proposed agreement under this section and 
     may suspend, cancel, or prevent such agreement if the 
     Commission finds that the agreement does not meet the 
     requirements of this section or the regulations thereunder.
       ``(h) Interpretation.--The determination of whether the 
     revenue generated under the agreement meets the requirements 
     of (b)(1)(B) shall be based on the actual contribution of the 
     mail involved, not on the average contribution made by the 
     mail classification most similar to the services performed 
     under the agreement.
       ``(i) Rate Discounts.--In the administration of this 
     section, the Postal Regulatory Commission shall not permit 
     rate discounts for additional mail preparation, processing, 
     transportation, or other functions that exceed the costs 
     avoided by the Postal Service by virtue of the additional 
     functions performed by the mailer. Such discounts are 
     allowable only if the Commission has, after notice and 
     opportunity for a public hearing and comment, determined that 
     such discounts are reasonable and equitable and are necessary 
     to enable the Postal Service, under best practices of honest, 
     efficient, and economical management, to maintain and 
     continue the development of postal services of the kind and 
     quality adapted to the needs of the United States consistent 
     with the service standards established under section 3691.''.
       (b) Repealed Sections.--Sections 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) mailgrams;
       ``(4) international mail; and
       ``(5) parcel post,
     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.
       ``(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

[[Page S8140]]

     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) Publication.--The Governors shall cause each rate and 
     class decision under this section and the record of the 
     Governors' proceedings in connection with such decision to be 
     published in the Federal Register by such date before the 
     effective date of any new rates or classes as the Governors 
     consider appropriate.
       ``(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 the 
     enactment of this section.

     ``Sec. 3633. Provisions applicable to rates for competitive 
       products

       ``The Postal Regulatory Commission shall, within 180 days 
     after the date of the enactment of this section, promulgate 
     (and may from time to time thereafter revise) regulations--
       ``(1) to prohibit the subsidization of competitive products 
     by market-dominant products;
       ``(2) to ensure that each competitive product covers its 
     costs attributable; and
       ``(3) to ensure that all competitive products collectively 
     cover their share of the institutional costs of the Postal 
     Service.''.

     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).
       ``(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, with respect to any particular product, to meet one 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 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

[[Page S8141]]

     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 pursuant to 
     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 by striking the heading for subchapter IV and 
     inserting the following:

  ``SUBCHAPTER V--POSTAL SERVICES, COMPLAINTS, AND JUDICIAL REVIEW''.

       (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 thereto 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) market 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 thereto 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.
       ``(1) In general.--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:
       ``(A) The per-item cost avoided by the Postal Service by 
     virtue of such discount.
       ``(B) The percentage of such per-item cost avoided that the 
     per-item workshare discount represents.
       ``(C) The per-item contribution made to institutional 
     costs.
       ``(2) Workshare discount defined.--For purposes of this 
     subsection, the term `workshare discount' refers to 
     presorting, barcoding, dropshipping, and other similar 
     discounts, as further defined under regulations which the 
     Postal Regulatory Commission shall prescribe.
       ``(c) Service Agreements and Market Tests.--In carrying out 
     subsections (a) and (b) with respect to service agreements 
     (including service agreements entered into under section 
     3623) 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 thereto) 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 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 pursuant to 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 
     appropriate action in accordance with section 3662.
       ``(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 in paragraphs 
     (1) through (3) 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.--Interested persons (including an officer 
     of the Postal Regulatory Commission representing the 
     interests of the general public) who believe the Postal 
     Service is not operating in conformance with the requirements 
     of chapter 1, 4, or 6, or this chapter (or regulations 
     promulgated under

[[Page S8142]]

     any of those chapters) 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), either--
       ``(A) begin proceedings on such complaint; or
       ``(B) issue an order dismissing the complaint (together 
     with a statement of the reasons therefor).
       ``(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 pursuant to 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 the complaint to be 
     justified, it shall order that the Postal Service take such 
     action as the Commission considers appropriate in order to 
     achieve compliance with the applicable requirements and to 
     remedy the effects of any noncompliance. Such action may 
     include ordering unlawful rates to be adjusted to lawful 
     levels, ordering the cancellation of market tests, ordering 
     the Postal Service to discontinue providing loss-making 
     products, and requiring the Postal Service to make up for 
     revenue shortfalls in competitive products.
       ``(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 out of 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 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. Service agreements for market-dominant products.
``[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. Change-of-address order involving a commercial mail receiving 
              agency.
``3687. 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.--The Postal Regulatory 
     Commission shall, within 24 months after the date of the 
     enactment of this section, by regulation establish (and may 
     from time to time thereafter by regulation revise) a set of 
     service standards for market-dominant products consistent 
     with sections 101 (a) and (b) and 403.
       ``(b) Objectives.--Such standards shall be designed to 
     achieve the following objectives:
       ``(1) To increase the value of postal services to both 
     senders and recipients.
       ``(2) To provide a benchmark for Postal Service performance 
     goals.
       ``(3) To guarantee Postal Service customers delivery speed 
     and frequency consistent with reasonable rates.
       ``(c) Factors.--In establishing or revising such standards, 
     the Postal Regulatory Commission shall take into account--
       ``(1) any service standards previously established by the 
     Postal Service;
       ``(2) the actual level of service Postal Service customers 
     receive;
       ``(3) customer satisfaction with Postal Service 
     performance;
       ``(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; and
       ``(7) the policies of this title as well as such other 
     factors as the Commission determines appropriate.''.

     SEC. 302. POSTAL SERVICE PLAN.

       (a) In General.--Within 1 year 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) Content.--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; and
       (3) describe any changes to planning and performance 
     management documents previously submitted to Congress to 
     reflect new performance goals.
       (c) Recommendations.--The Postal Service plan shall include 
     a list of any processing and retail facilities that can be 
     closed or consolidated without hindering the Postal Service's 
     ability to meet established service standards. The 
     recommendations shall be consistent with the provisions in 
     section 101(b) of title 39, United States Code prohibiting 
     the closing of post offices, including post offices in rural 
     areas and small towns, solely because they are not self-
     sustaining or operate at a deficit.
       (d) Alternate Retail Options.--The Postal Service plan 
     shall include, to the extent possible, plans to provide 
     postal services by other means, including--
       (1) vending machines;
       (2) the Internet;
       (3) Postal Service employees on delivery routes; and
       (4) retail facilities in which overhead costs are shared 
     with private businesses and other government agencies.
       (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 
     or privatization 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 general.--Before submitting the plan under this 
     section to Congress, the Postal Service shall submit the plan 
     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--
       (A) is consistent with the continuing obligations of the 
     Postal Service under title 39, United States Code; and
       (B) provides for the Postal Service to meet the service 
     standards established under section 3691.
       (3) Submission of report.--The Postal Service shall submit 
     the report of the Inspector General under this subsection 
     with the

[[Page S8143]]

     plan submitted to Congress under subsection (a).
       (g) Recommended Facility Closings and Consolidations.--The 
     list of recommended facility closings and consolidations, 
     including the criteria used for selection, justifications for 
     each recommendation, and any comments received from affected 
     communities, shall be transmitted to the Postal Network 
     Modernization Commission at the same time the Postal Service 
     plan is transmitted to Congress.
       (h) Continuing Responsibilities.--Nothing in this section 
     shall affect the responsibilities of the Postal Service under 
     section 404(b) of title 39, United States Code, with respect 
     to any postal facility by reason of that facility being 
     recommended for closing or consolidation under this section.

     SEC. 303. POSTAL NETWORK MODERNIZATION COMMISSION.

       (a) Establishment.--There is established an independent 
     commission to be known as the ``Postal Network Modernization 
     Commission''.
       (b) Duties.--The Commission shall carry out the duties 
     specified in this title.
       (c) Appointment.--
       (1) In general.--
       (A) Composition.--The Commission shall be composed of 8 
     members appointed by the President, by and with the advice 
     and consent of the Senate.
       (B) Limitation on political party membership.--No more than 
     4 members of the Commission at any time shall be from the 
     same political party.
       (C) Employee representation.--One member of the Commission 
     shall be chosen from among persons nominated for such office 
     with the unanimous concurrence of all organizations 
     representing postmasters and all employee organizations 
     described under section 1004(b) of title 39, United States 
     Code.
       (D) Union Representation.--One member of the Commission 
     shall be chosen from among persons nominated for such office 
     with the unanimous concurrence of all labor organizations 
     described in section 206(a)(1) of title 39, United States 
     Code.
       (2) Chairman.--At the time the President nominates 
     individuals for appointment to the Commission, the President 
     shall designate one such individual who shall serve as 
     Chairman of the Commission.
       (d) Meetings.--
       (1) Open meetings.--Each meeting of the Commission shall be 
     open to the public.
       (2) Proceedings, information, and deliberations.--All of 
     the proceedings, information, and deliberation of the 
     Commission shall be open, upon request, to the following:
       (A) Committee on governmental affairs.--The Chairman and 
     the ranking minority party member of the Committee on 
     Governmental Affairs of the Senate, or such other members of 
     the Committee designated by such Chairman or ranking minority 
     party member.
       (B) Committee on government reform.--The Chairman and the 
     ranking minority party member of the Committee on Government 
     Reform of the House of Representatives, or such other members 
     of the Committee designated by such Chairman or ranking 
     minority party member.
       (C) Committees on appropriations.--The Chairmen and ranking 
     minority party members of the Subcommittees on 
     Transportation, Treasury, and General Government of the 
     Committees on Appropriations of the Senate and the House of 
     Representatives, or such other members of the Subcommittees 
     designated by such Chairmen or ranking minority party 
     members.
       (e) Vacancies.--A vacancy in the Commission shall be filled 
     in the same manner as the original appointment.
       (f) Pay and Travel Expenses.--
       (1) In general.--
       (A) Pay.--Each member, other than the Chairman, shall be 
     paid at a rate equal to the daily equivalent of the minimum 
     annual rate of basic pay payable for level IV of the 
     Executive Schedule under section 5315 of title 5, United 
     States Code, for each day (including travel time) during 
     which the member is engaged in the actual performance of 
     duties vested in the Commission.
       (B) Pay for chairman.--The Chairman shall be paid for each 
     day referred to in subparagraph (A) at a rate equal to the 
     daily equivalent of the minimum annual rate of basic pay 
     payable for level III of the Executive Schedule under section 
     5314 of title 5, United States Code.
       (2) Travel expenses.--Members shall receive travel 
     expenses, including per diem in lieu of subsistence, in 
     accordance with sections 5702 and 5703 of title 5, United 
     States Code.
       (g) Director of Staff.--
       (1) Appointment.--The Commission shall, without regard to 
     section 5311(b) of title 5, United States Code, appoint a 
     Director who was not employed by the Postal Service during 
     the 1-year period preceding the date of such appointment.
       (2) Pay.--The Director shall be paid at the rate of basic 
     pay payable for level IV of the Executive Schedule under 
     section 5315 of title 5, United States Code.
       (h) Staff.--
       (1) In general.--Subject to paragraphs (2) and (3), the 
     Director, with the approval of the Commission, may appoint 
     and fix the pay of additional personnel.
       (2) Conditions of appointments.--The Director may make such 
     appointments without regard to the provisions of title 5, 
     United States Code, governing appointments in the competitive 
     service, and any personnel so appointed may be paid without 
     regard to the provisions of chapter 51 and subchapter III of 
     chapter 53 of that title relating to classification and 
     General Schedule pay rates, except that an individual so 
     appointed may not receive pay in excess of the highest annual 
     rate of basic pay payable for a position classified at above 
     GS-15 of the General Schedule.
       (3) Details.--
       (A) In general.--Not more than \1/3\ of the personnel 
     employed by or detailed to the Commission may be on detail 
     from the Postal Service.
       (B) Analysts.--Not more than \1/3\ of the professional 
     analysts of the Commission staff may be persons detailed from 
     the Postal Service to the Commission.
       (C) Limitations.--A person may not be detailed from the 
     Postal Service to the Commission if that person participated 
     personally and substantially in any matter within the Postal 
     Service concerning the preparation of recommendations for 
     closures or consolidations of postal facilities. No employee 
     of the Postal Service may--
       (i) prepare any report concerning the effectiveness, 
     fitness, or efficiency of the performance on the staff of the 
     Commission of any person detailed from the Postal Service to 
     that staff;
       (ii) review the preparation of such a report; or
       (iii) approve or disapprove such a report.
       (4) Detail upon request.--Upon request of the Director, the 
     head of any Federal department or agency may detail any of 
     the personnel of that department or agency to the Commission 
     to assist the Commission in carrying out its duties under 
     this part.
       (5) Comptroller general assistance.--The Comptroller 
     General of the United States shall provide assistance, 
     including the detailing of employees, to the Commission in 
     accordance with an agreement entered into with the 
     Commission.
       (6) Limitation on number of staff.--There may not be more 
     than 15 persons on the staff at any one time.
       (i) Other Authority.--
       (1) Experts and consultants.--The Commission may procure by 
     contract, to the extent funds are available, the temporary of 
     intermittent services of experts or consultants under section 
     3109 of title 5, United States Code.
       (2) Lease of space.--The Commission may lease space and 
     acquire personal property to the extent funds are available.
       (j) Funding.--There are authorized to be appropriated to 
     the Commission such funds as are necessary to carry out its 
     duties under this part. Such funds shall remain available 
     until expended.
       (k) Review of Postal Service Recommendations.--
       (1) In general.--After receiving the recommendations from 
     the Postal Service under section 302, the Commission shall 
     conduct public hearings on the recommendations. All testimony 
     before the Commission at a public hearing conducted under 
     this paragraph shall be presented under oath. The hearings 
     shall solicit views from Postal Service customers and 
     employees and community leaders and government officials in 
     the communities affected by the Postal Service's 
     recommendations.
       (2) Report.--
       (A) Transmission.--The Commission shall, no later than 1 
     year following receipt of the Postal Service's 
     recommendations under section 302, transmit to the President 
     a report containing the Commission's findings and conclusions 
     based on a review and analysis of the recommendations made by 
     the Postal Service, together with the Commission's 
     recommendations for closures and consolidations.
       (B) Changes in recommendations.--In making its 
     recommendations, the Commission may make changes in any of 
     the recommendations made by the Postal Service if the 
     Commission determines that the Postal Service's recommended 
     closings and consolidations would not allow them to meet the 
     service standards established by the Postal Regulatory 
     Commission under section 301.
       (3) Explanation.--The Commission shall explain and justify 
     in its report submitted to the President under paragraph (2) 
     any recommendation made by the Commission that is different 
     from the recommendations made by the Postal Service under 
     section 302. The Commission shall transmit a copy of such 
     report to the Committee on Governmental Affairs of the 
     Senate, Committee on Government Reform of the House of 
     Representatives and the Subcommittees on Transportation, 
     Treasury, and General Government of the Committees on 
     Appropriations of the Senate and the House of Representatives 
     on the same date on which it transmits its recommendations to 
     the President under paragraph (2).
       (4) Provision of information.--After transmitting its 
     recommendations, the Commission shall promptly provide, upon 
     request, to any member of Congress information used by the 
     Commission in making its recommendations.
       (5) Comptroller general.--The Comptroller General of the 
     United States shall--
       (A) assist the Commission, to the extent requested, in the 
     Commission's review and analysis of the recommendations made 
     by the Postal Service under section 302; and
       (B) not later than 30 days following receipt of the Postal 
     Service's recommendations, transmit to Congress and the 
     Commission a detailed analysis of the Postal Service's 
     recommendations.

[[Page S8144]]

       (l) Review by the President.--
       (1) Report.--The President shall, no later than 14 days 
     following receipt of the Commission's recommendations, 
     transmit to the Commission and to Congress a report 
     containing the President's approval or disapproval of the 
     Commission's recommendations.
       (2) Approval.--If the President approves all the 
     recommendations, the President shall transmit a copy of such 
     recommendations to Congress, together with a certification of 
     such approval.
       (3) Disapproval.--If the President disapproves the 
     recommendations of the Commission, in whole or in part, the 
     President shall transmit to the Commission and the Congress 
     the reasons for that disapproval. The Commission shall than 
     transmit to the President, within 30 days, a revised list of 
     recommendations.
       (4) Approval after revisions.--If the President approves 
     all of the revised recommendations of the Commission 
     transmitted to the President under paragraph (3), the 
     President shall transmit a copy of such revised 
     recommendations to Congress, together with a certification of 
     such approval.

     SEC. 304. CLOSURE AND CONSOLIDATION OF FACILITIES.

       (a) In General.--Subject to subsection (b), the Postal 
     Service shall--
       (1) close all postal facilities recommended by the 
     Commission in such report transmitted to the Congress by the 
     President under section 303(l);
       (2) consolidate all postal facilities recommended for 
     consolidation by the Commission in such report;
       (3) initiate all such closures and consolidations no later 
     than 1 year after the date on which the President transmits a 
     report to Congress under section 303(l) containing the 
     recommendations for such closures or consolidations; and
       (4) complete all such closures and consolidations no later 
     than the end of the 2-year period beginning on the date on 
     which the President transmits the report under section 303(l) 
     containing the recommendations for such closures and 
     consolidations.
       (b) Congressional Disapproval.--
       (1) In general.--The Postal Service may not carry out any 
     closure or consolidation recommended by the Commission in a 
     report transmitted from the President under section 303(l) if 
     a joint resolution is enacted, in accordance with section 
     305, disapproving such recommendations of the Commission 
     before the earlier of--
       (A) the end of the 45-day period beginning on the date on 
     which the President transmits such report; or
       (B) the adjournment of the Congress sine die for the 
     session during which such report is transmitted.
       (2) Days of session.--For purposes of paragraph (1) and 
     subsections (a) and (c) of section 305, the days on which 
     either House of Congress is not in session because of an 
     adjournment of more than 3 days to a day certain shall be 
     excluded in the computation of a period.

     SEC. 305. CONGRESSIONAL CONSIDERATION OF COMMISSION REPORT.

       (a) Terms of the Resolution.--For purposes of this title, 
     the term ``joint resolution'' means only a joint resolution 
     which is introduced within the 10-day period beginning on the 
     date on which the President transmits the report to the 
     Congress under section 303(l), and--
       (1) which does not have a preamble;
       (2) the matter after the resolving clause of which is as 
     follows: ``That Congress disapproves the recommendations of 
     the Postal Facility Closure and Consolidation Commission as 
     submitted by the President on ------'', the blank space being 
     filled in with the appropriate date; and
       (3) the title of which is as follows: ``Joint resolution 
     disapproving the recommendations of the Postal Facility 
     Closure and Consolidation Commission.''.
       (b) Referral.--A resolution described in subsection (a) 
     that is introduced in the House of Representatives shall be 
     referred to the Committee on Government Reform of the House 
     of Representatives. A resolution described in subsection (a) 
     introduced in the Senate shall be referred to the Committee 
     on Governmental Affairs of the Senate.
       (c) Discharge.--If the committee to which a resolution 
     described in subsection (a) is referred has not reported such 
     resolution (or an identical resolution) by the end of the 20-
     day period beginning on the date on which the President 
     transmits the report to the Congress under section 303(l), 
     such committee shall be, at the end of such period, 
     discharged from further consideration of such resolution, and 
     such resolution shall be placed on the appropriate calendar 
     of the House involved.
       (d) Consideration.--
       (1) In general.--On or after the third day after the date 
     on which the committee to which such a resolution is referred 
     has reported, or has been discharged (under subsection (c)) 
     from further consideration of, such a resolution, it is in 
     order (even though a previous motion to the same effect has 
     been disagreed to) for any Member of the respective House to 
     move to proceed to the consideration of the resolution. A 
     Member may make the motion only on the day after the calendar 
     day on which the Member announces to the House concerned the 
     Member's intention to make the motion, except that, in the 
     case of the House of Representatives, the motion may be made 
     without such prior announcement if the motion is made by 
     direction of the committee to which the resolution was 
     referred. All points of order against the resolution (and 
     against consideration of the resolution) are waived. The 
     motion is highly privileged in the House of Representatives 
     and is privileged in the Senate and is not debatable. The 
     motion is not subject to amendment, or to a motion to 
     postpone, or to a motion to proceed to the consideration of 
     other business. A motion to reconsider the vote by which the 
     motion is agreed to or disagreed to shall not be in order. If 
     a motion to proceed to the consideration of the resolution is 
     agreed to, the respective House shall immediately proceed to 
     consideration of the joint resolution without intervening 
     motion, order, or other business, and the resolution shall 
     remain the unfinished business of the respective House until 
     disposed of.
       (2) Debate.--Debate on the resolution, and on all debatable 
     motions and appeals in connection therewith, shall be limited 
     to not more than 2 hours, which shall be divided equally 
     between those favoring and those opposing the resolution. An 
     amendment to the resolution is not in order. A motion further 
     to limit debate is in order and not debatable. A motion to 
     postpone, or a motion to proceed to the consideration of 
     other business, or a motion to recommit the resolution is not 
     in order. A motion to reconsider the vote by which the 
     resolution is agreed to or disagreed to is not in order.
       (3) Vote on final passage.--Immediately following the 
     conclusion of the debate on a resolution described in 
     subsection (a) and a single quorum call at the conclusion of 
     the debate if requested in accordance with the rules of the 
     appropriate House, the vote on final passage of the 
     resolution shall occur.
       (4) Appeals.--Appeals from the decisions of the Chair 
     relating to the application of the rules of the Senate or the 
     House of Representatives, as the case may be, to the 
     procedure relating to a resolution described in subsection 
     (a) shall be decided without debate.
       (e) Consideration by Other House.--
       (1) In general.--If, before the passage by one House of a 
     resolution of that House described in subsection (a), that 
     House receives from the other House a resolution described in 
     subsection (a), then the following procedures shall apply:
       (A) The resolution of the other House shall not be referred 
     to a committee and may not be considered in the House 
     receiving it except in the case of final passage as provided 
     in subparagraph (B)(ii).
       (B) With respect to a resolution described in subsection 
     (a) of the House receiving the resolution--
       (i) the procedure in that House shall be the same as if no 
     resolution had been received from the other House; but
       (ii) the vote on final passage shall be on the resolution 
     of the other House.
       (2) Disposition of a resolution.--Upon disposition of the 
     resolution received from the other House, it shall no longer 
     be in order to consider the resolution that originated in the 
     receiving House.
       (f) Rules of the Senate and House.--This section is enacted 
     by Congress--
       (1) as an exercise of the rulemaking power of the Senate 
     and House of Representatives, respectively, and as such it is 
     deemed a part of the rules of each House, respectively, but 
     applicable only with respect to the procedure to be followed 
     in that House in the case of a resolution described in 
     subsection (a), and it supersedes other rules only to the 
     extent that it is inconsistent with such rules; and
       (2) with full recognition of the constitutional right of 
     either House to change the rules (so far as relating to the 
     procedure of that House) at any time, in the same manner, and 
     to the same extent as in the case of any other rule of that 
     House.

     SEC. 306. NONAPPEALIBILITY TO THE POSTAL REGULATORY 
                   COMMISSION.

       The closing or consolidation of any post office or other 
     postal facility under this title may not be appealed to the 
     Postal Regulatory Commission under the provisions of title 
     39, United States Code, including section 404(b)(5) of that 
     title.

           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) 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--
       ``(1) costs attributable to competitive products; and
       ``(2) all other costs incurred by the Postal Service, to 
     the extent allocable to competitive products.

     For purposes of this subsection, the term `costs 
     attributable' has the meaning given such term by section 
     3631.
       ``(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 the 
     Postal Service under subsection (e);

[[Page S8145]]

       ``(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, 
     it may invest such amounts as it considers appropriate in--
       ``(1) obligations of, or obligations guaranteed by, the 
     Government of the United States; and
       ``(2) in accordance with regulations which the Secretary of 
     the Treasury shall prescribe (by not later than 12 months 
     after the date of enactment of the Postal Accountability and 
     Enhancement Act), such other obligations or securities as it 
     considers appropriate, with the exception of obligations of 
     or securities in any business entity subject to Postal 
     Service regulations other than those regulations applying to 
     the mailing public generally.
       ``(d) The Postal Service may, in its sole discretion, 
     provide that moneys of the Competitive Products Fund be 
     deposited in a Federal Reserve bank or a depository for 
     public funds.
       ``(e)(1) 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 it determines necessary 
     to provide for competitive products and deposit such amounts 
     in the Competitive Products Fund, except that the Postal 
     Service may pledge only assets related to the provision of 
     competitive products (as determined under subsection (h) or, 
     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)), and the revenues and receipts from such products, 
     for the payment of the principal of or interest on such 
     obligations, for the purchase or redemption thereof, and for 
     other purposes incidental thereto, including creation of 
     reserve, sinking, and other funds which may be similarly 
     pledged and used, to such extent and in such manner as the 
     Postal Service determines necessary or desirable.
       ``(2) The Postal Service may enter into binding covenants 
     with the holders of such obligations, and with the trustee, 
     if any, under any agreement entered into in connection with 
     the issuance thereof 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) may not be purchased by the Secretary of the 
     Treasury;
       ``(B) shall not be exempt either as to principal or 
     interest from any taxation now or hereafter imposed by any 
     State or local taxing authority;
       ``(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; and
       ``(D) notwithstanding the provisions of the Federal 
     Financing Bank Act of 1973 or any other provision of law 
     (except as specifically provided by reference to this 
     subparagraph in a law enacted after this subparagraph takes 
     effect), shall not be eligible for purchase by, commitment to 
     purchase by, or sale or issuance to, the Federal Financing 
     Bank.
       ``(4)(A) This paragraph applies with respect to the period 
     beginning on the date of the enactment of this paragraph and 
     ending at the close of the 5-year period which begins on the 
     date on which the Postal Service makes its submission under 
     subsection (h)(1).
       ``(B) During the period described in subparagraph (A), 
     nothing in subparagraph (A) or (D) of paragraph (3) or the 
     last sentence of section 2006(b) shall, with respect to any 
     obligations sought to be issued by the Postal Service under 
     this subsection, be considered to affect such obligations' 
     eligibility for purchase by, commitment to purchase by, or 
     sale or issuance to, the Federal Financing Bank.
       ``(C) The Federal Financing Bank may elect to purchase such 
     obligations under such terms, including rates of interest, as 
     the Bank and the Postal Service may agree, but at a rate of 
     yield no less than the prevailing yield on outstanding 
     marketable securities of comparable maturity issued by 
     entities with the same credit rating as the rating then most 
     recently obtained by the Postal Service under subparagraph 
     (D), as determined by the Bank.
       ``(D) In order to be eligible to borrow under this 
     paragraph, the Postal Service shall first obtain a credit 
     rating from a nationally recognized credit rating 
     organization. Such rating--
       ``(i) shall be determined taking into account only those 
     assets and activities of the Postal Service which are 
     described in section 3634(a)(2) (relating to the Postal 
     Service's assumed taxable income from competitive products); 
     and
       ``(ii) may, before final rules of the Postal Regulatory 
     Commission under subsection (h) are issued (or deemed to have 
     been issued), be based on the best information available from 
     the Postal Service, including the audited statements required 
     by section 2008(e).
       ``(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 against the Postal Service or the 
     Government of the United States (or settlement of a claim) 
     shall, to the extent that it arises out of activities of the 
     Postal Service in the provision of competitive products, be 
     paid out of the Competitive Products Fund.
       ``(h)(1) The Postal Service, in consultation with an 
     independent, certified public accounting firm and such other 
     advisors as it considers appropriate, shall develop 
     recommendations regarding--
       ``(A) the accounting practices and principles that should 
     be followed by the Postal Service with the objectives of 
     identifying the capital and operating costs incurred by the 
     Postal Service in providing competitive products, and 
     preventing the cross-subsidization of such products by 
     market-dominant products; and
       ``(B) the substantive and procedural rules that should be 
     followed in determining the Postal Service's assumed Federal 
     income tax on competitive products income for any year 
     (within the meaning of section 3634).

     Such recommendations shall be submitted to the Postal 
     Regulatory Commission no earlier than 6 months, and no later 
     than 12 months, after the effective date of this section.
       ``(2)(A) Upon receiving the recommendations of the Postal 
     Service 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) 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 in paragraph 
     (1)(B); 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.

     Final rules under this subparagraph shall be issued not later 
     than 12 months after the date on which the Postal Service 
     makes its submission to the Commission under paragraph (1) 
     (or by such later date as the Commission and the Postal 
     Service may agree to). If final rules are not issued by the 
     Commission by the deadline under the preceding sentence, the 
     recommendations submitted by the Postal Service under 
     paragraph (1) shall be treated as the final rules. The 
     Commission is authorized to promulgate regulations revising 
     such rules.
       ``(C) Reports described in subparagraph (B)(iii) shall be 
     submitted at such time and in such form, and shall include 
     such information, as the Commission by rule requires. 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 data under such subparagraph 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 in subparagraph 
     (B)(iii) shall also be transmitted by the Postal Service to 
     the Secretary of the Treasury and the Inspector General of 
     the United States Postal Service.
       ``(i) The Postal Service shall render an annual report to 
     the Secretary of the Treasury concerning the operation of the 
     Competitive Products Fund, in which it shall address such 
     matters as risk limitations, reserve balances, allocation or 
     distribution of moneys, liquidity requirements, and measures 
     to safeguard against losses. A copy of its then most recent 
     report under this subsection shall be included with any other 
     submission that it is required to make to the Postal 
     Regulatory Commission under section 3652(g).''.
       (2) Clerical amendment.--The analysis 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:

[[Page S8146]]

       ``(2) `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 (b), by adding at the end the following: 
     ``Nothing in this chapter shall be considered to permit or 
     require the Secretary of the Treasury to purchase any 
     obligations of the Postal Service other than those issued 
     under section 2005.''; and
       (B) in subsection (c), by inserting ``under section 2005'' 
     before ``shall be obligations''.

     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 product or 
     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 under the antitrust laws (as so 
     defined) from the Postal Service or any officer or employee 
     thereof acting in an official capacity for any conduct with 
     respect to a product in the market-dominant category of mail.
       ``(3) This subsection shall not apply with respect to 
     conduct occurring before the date of the 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 one of the nationally recognized model 
     building codes and with other applicable nationally 
     recognized codes.
       ``(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.

[[Page S8147]]

       ``(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 other 
     international delivery services by the Government of the 
     United States and by intergovernmental organizations of which 
     the United States is a member; 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 other 
     international delivery services, and shall have the power to 
     conclude treaties, conventions and amendments related to 
     international postal services and other international 
     delivery services, except that the Secretary may not conclude 
     any treaty, convention, or other international agreement 
     (including those regulating international postal services) if 
     such treaty, convention, or agreement would, with respect to 
     any competitive product, grant an undue or unreasonable 
     preference to the Postal Service, a private provider of 
     international postal or delivery 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 and international delivery 
     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, shall give full consideration to 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 Government Reform of the House of Representatives and the 
     Committee on Governmental Affairs of the Senate;
       ``(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)(1) Before concluding any treaty, convention, or 
     amendment 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 a decision on whether such rate or classification is 
     consistent with the standards and criteria established by the 
     Commission under section 3622.
       ``(2) The Secretary shall ensure that each treaty, 
     convention, or amendment concluded under subsection (b) is 
     consistent with a decision of the Commission adopted under 
     paragraph (1), except if, or to the extent, the Secretary 
     determines, by written order, that considerations of foreign 
     policy or national security require modification of the 
     Commission's decision.
       ``(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 and other international delivery 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 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) For purposes of this subsection, the term `private 
     company' means a private company substantially owned or 
     controlled by persons who are citizens of the United States.
       ``(3) In exercising the authority pursuant to subsection 
     (b) to conclude new treaties, conventions and amendments 
     related to international postal services and to renegotiate 
     such treaties, conventions and amendments, 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.
       ``(4) The provisions of this subsection shall take effect 6 
     months after the date of the 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.

     SEC. 406. CHANGE-OF-ADDRESS ORDER INVOLVING A COMMERCIAL MAIL 
                   RECEIVING AGENCY.

       (a) Redesignation.--Chapter 36 of title 39, United States 
     Code (as in effect before the amendment made by section 
     204(a)) is amended by striking the heading for subchapter V 
     and inserting the following:

[[Page S8148]]

                      ``SUBCHAPTER VI--GENERAL''.

       (b) Change-of-Address Order Involving a Commercial Mail 
     Receiving Agency.--Subchapter VI of chapter 36 of title 39, 
     United States Code (as so redesignated by subsection (a)) is 
     amended by adding at the end the following:

     ``Sec. 3686. Change-of-address order involving a commercial 
       mail receiving agency

       ``(a) For the purpose of this section, the term `commercial 
     mail receiving agency' or `CMRA' means a private business 
     that acts as the mail receiving agent for specific clients.
       ``(b) Upon termination of an agency relationship between an 
     addressee and a commercial mail receiving agency--
       ``(1) the addressee or, if authorized to do so, the CMRA 
     may file a change-of-address order with the Postal Service 
     with respect to such addressee;
       ``(2) a change-of-address order so filed shall, to the 
     extent practicable, be given full force and effect; and
       ``(3) any mail for the addressee that is delivered to the 
     CMRA after the filing of an appropriate order under this 
     subsection shall be subject to subsection (c).
       ``(c) Mail described in subsection (b)(3) shall, if marked 
     for forwarding and remailed by the CMRA, be forwarded by the 
     Postal Service in the same manner as, and subject to the same 
     terms and conditions (including limitations on the period of 
     time for which a change-of-address order shall be given 
     effect) as apply to, mail forwarded directly by the Postal 
     Service to the addressee.''.

     SEC. 407. EXCEPTION FOR COMPETITIVE PRODUCTS.

       (a) In General.--Section 403(c) of title 39, United States 
     Code, is amended by striking ``user.'' and inserting ``user, 
     except that this subsection shall not apply to competitive 
     products.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply with respect to services, classifications, rates, 
     and fees, to the extent provided or applicable (as the case 
     may be) on or after 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 REQUIREMENTS FOR GOVERNORS.

       (a) 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 at least 4 of the Governors shall be 
     chosen solely on the basis of their demonstrated ability in 
     managing organizations or corporations (in either the public 
     or private sector) of substantial size; for purposes of this 
     sentence, an organization or corporation shall be considered 
     to be of substantial size if it employs at least 50,000 
     employees. The Governors shall not be representatives of 
     specific interests using the Postal Service, and may be 
     removed only for cause.''.
       (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) Restriction.--Section 202(b) of title 39, United States 
     Code, is amended by striking ``(b)'' and inserting 
     ``(b)(1)'', and by adding at the end the following:
       ``(2)(A) Notwithstanding any other provision of this 
     section, in the case of the office of the Governor the term 
     of which is the first one scheduled to expire at least 4 
     months after the date of the enactment of this paragraph--
       ``(i) such office may not, in the case of any person 
     commencing service after that expiration date, be filled by 
     any person other than an individual chosen from among persons 
     nominated for such office with the unanimous concurrence of 
     all labor organizations described in section 206(a)(1); and
       ``(ii) instead of the term that would otherwise apply under 
     the first sentence of paragraph (1), the term of any person 
     so appointed to such office shall be 3 years.
       ``(B) Except as provided in subparagraph (A), an 
     appointment under this paragraph shall be made in conformance 
     with all provisions of this section that would otherwise 
     apply.''.
       (d) Applicability.--The amendment made by subsection (a) 
     shall not affect the appointment or tenure of any person 
     serving as a Governor of the Board of Governors of the United 
     States Postal Service pursuant to an appointment made before 
     the date of the enactment of this Act, or, except as provided 
     in the amendment made by subsection (c), any nomination made 
     before that date; 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 the enactment of this Act.

     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.--The third sentence of section 2005(a)(1) of 
     title 39, United States Code, is amended by striking 
     ``$2,000,000,000'' and inserting ``$3,000,000,000''.
       (c) Increase in Maximum Outstanding Obligations 
     Allowable.--Paragraph (2) of section 2005(a) of title 39, 
     United States Code, is amended--
       (1) by striking ``and'' at the end of subparagraph (B); and
       (2) by striking subparagraph (C) and inserting the 
     following:
       ``(C) $15,000,000,000 for each of fiscal years 1992 through 
     2002; and
       ``(D) $25,000,000,000 for fiscal year 2003 and each fiscal 
     year thereafter.''.
       (d) Limitations on Obligations Outstanding.--
       (1) In general.--Subsection (a) of section 2005 of title 
     39, United States Code, is amended by adding at the end the 
     following:
       ``(3) For purposes of applying the respective limitations 
     under this subsection, the aggregate amount of obligations 
     issued by the Postal Service which are outstanding as of any 
     one time, and the net increase in the amount of obligations 
     outstanding issued by the Postal Service for the purpose of 
     capital improvements or for the purpose of defraying 
     operating expenses of the Postal Service in any fiscal year, 
     shall be determined by aggregating the relevant obligations 
     issued by the Postal Service under this section with the 
     relevant obligations issued by the Postal Service under 
     section 2011.''.
       (2) Conforming amendment.--The second sentence of section 
     2005(a)(1) of title 39, United States Code, is amended by 
     striking ``any such obligations'' and inserting ``obligations 
     issued by the Postal Service which may be''.
       (e) Amounts Which May Be Pledged, Etc.--
       (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 purport to 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, ETC.

       (a) Noninterference With Collective Bargaining 
     Agreements.--Nothing in this Act or any amendment made by 
     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

[[Page S8149]]

     United States Postal Service, or any collective bargaining 
     agreement.
       (b) 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.

       Title 39, United States Code, is amended by adding after 
     section 3686 (as added by section 406(b)) the following:

     ``Sec. 3687. Bonus authority

       ``(a) In General.--The Postal Service may establish one or 
     more programs to provide bonuses or other rewards to officers 
     and employees of the Postal Service to achieve the objectives 
     of this chapter.
       ``(b) Waiver of Limitation on 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).
       ``(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 referred to in paragraph (1)--
       ``(A) the Postal Service shall make an appropriate request 
     to the Postal Regulatory Commission, in such form and manner 
     as the Commission requires; and
       ``(B) the Postal Regulatory Commission shall approve any 
     such request if it finds that the program is likely to 
     achieve the objectives of this chapter.
       ``(3) Revocation authority.--If the Postal Regulatory 
     Commission finds that a program previously approved under 
     paragraph (2) is not achieving the objectives of this 
     chapter, the Commission may revoke or suspend the authority 
     of the Postal Service to continue such program until such 
     time as appropriate corrective measures have, in the judgment 
     of the Commission, 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 (a)(2);
       ``(2) the amount of the bonus or other reward; and
       ``(3) the amount by which the limitation referred to in 
     subsection (a)(2) 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.

     ``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; and
       (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)).
       (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) pursuant to an 
     appointment made before the date of the 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--
       ``(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 pursuant to 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) 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) Paragraph (2) shall not prevent information from 
     being furnished under any process of discovery established 
     under this title 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 any 
     information furnished under the preceding sentence.''.

     SEC. 603. APPROPRIATIONS FOR THE POSTAL REGULATORY 
                   COMMISSION.

       (a) Authorization of Appropriations.--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) 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

[[Page S8150]]

     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 pursuant to section 504(d); and (C) all expenses 
     of the Office of Inspector General, subject to the 
     availability of amounts appropriated pursuant to section 
     8G(f) of the Inspector General Act of 1978.''.
       (c) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     apply with respect to fiscal years beginning on or after 
     October 1, 2002.
       (2) Savings provision.--The provisions of title 39, United 
     States Code, 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, 503-504 (as 
     so redesignated by section 601), 1001, 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.

                     TITLE VII--INSPECTORS GENERAL

     SEC. 701. INSPECTOR GENERAL OF THE POSTAL REGULATORY 
                   COMMISSION.

       (a) In General.--Paragraph (2) of section 8G(a) of the 
     Inspector General Act of 1978 is amended by inserting ``the 
     Postal Regulatory Commission,'' after ``the United States 
     International Trade Commission,''.
       (b) Administration.--Section 504 of title 39, United States 
     Code (as so redesignated by section 601) is amended by adding 
     after subsection (g) (as added by section 602) the following:
       ``(h)(1) Notwithstanding any other provision of this title 
     or of the Inspector General Act of 1978, the authority to 
     select, appoint, and employ officers and employees of the 
     Office of Inspector General of the Postal Regulatory 
     Commission, and to obtain any temporary or intermittent 
     services of experts or consultants (or an organization of 
     experts or consultants) for such Office, shall reside with 
     the Inspector General of the Postal Regulatory Commission.
       ``(2) Except as provided in paragraph (1), any exercise of 
     authority under this subsection shall, to the extent 
     practicable, be in conformance with the applicable laws and 
     regulations that govern selections, appointments and 
     employment, and the obtaining of any such temporary or 
     intermittent services, within the Postal Regulatory 
     Commission.''.
       (c) Deadline.--No later than 180 days after the date of the 
     enactment of this Act--
       (1) the first Inspector General of the Postal Regulatory 
     Commission shall be appointed; and
       (2) the Office of Inspector General of the Postal 
     Regulatory Commission shall be established.

     SEC. 702. INSPECTOR GENERAL OF THE UNITED STATES POSTAL 
                   SERVICE TO BE APPOINTED BY THE PRESIDENT.

       (a) Definitional Amendments to the Inspector General Act of 
     1978.--Section 11 of the Inspector General Act of 1978 is 
     amended--
       (1) in paragraph (1)--
       (A) by striking ``and'' before ``the chief executive 
     officer of the Resolution Trust Corporation'';
       (B) by striking ``and'' before ``the Chairperson of the 
     Federal Deposit Insurance Corporation''; and
       (C) by inserting ``the Postmaster General;'' after ``Social 
     Security Administration;''; and
       (2) in paragraph (2)--
       (A) by striking ``or'' before ``the Veterans' 
     Administration''; and
       (B) by inserting ``the United States Postal Service,'' 
     after ``Social Security Administration,''.
       (b) Special Provisions Concerning the United States Postal 
     Service.--The Inspector General Act of 1978 is amended--
       (1) by redesignating sections 8G (as amended by section 
     701(a)), 8H, and 8I as sections 8H through 8J, respectively; 
     and
       (2) by inserting after section 8F the following:


    ``special provisions concerning the united states postal service

       ``Sec. 8G. (a) Notwithstanding the last two sentences of 
     section 3(a), the Inspector General of the United States 
     Postal Service shall report to and be under the general 
     supervision of the Postmaster General, but shall not report 
     to, or be subject to supervision by, any other officer or 
     employee of the United States Postal Service or its Board of 
     Governors. No such officer or employee (including the 
     Postmaster General) or member of such Board shall prevent or 
     prohibit the Inspector General from initiating, carrying out, 
     or completing any audit or investigation, or from issuing any 
     subpoena during the course of any audit or investigation.
       ``(b) In carrying out the duties and responsibilities 
     specified in this Act, the Inspector General of the United 
     States Postal Service shall have oversight responsibility for 
     all activities of the Postal Inspection Service, including 
     any internal investigation performed by the Postal Inspection 
     Service. The Chief Postal Inspector shall promptly report the 
     significant activities being carried out by the Postal 
     Inspection Service to such Inspector General.
       ``(c) Any report required to be transmitted by the 
     Postmaster General to the appropriate committees or 
     subcommittees of the Congress under section 5(d) shall also 
     be transmitted, within the 7-day period specified under such 
     section, to the Committee on Government Reform of the House 
     of Representatives and the Committee on Governmental Affairs 
     of the Senate.
       ``(d) Notwithstanding any provision of paragraph (7) or (8) 
     of section 6(a), the Inspector General of the United States 
     Postal Service may select, appoint, and employ such officers 
     and employees as may be necessary for carrying out the 
     functions, powers and duties of the Office of Inspector 
     General and to obtain the temporary or intermittent services 
     of experts or consultants or an organization of experts or 
     consultants, subject to the applicable laws and regulations 
     that govern such selections, appointments, and employment, 
     and the obtaining of such services, within the United States 
     Postal Service.
       ``(e) Nothing in this Act shall restrict, eliminate, or 
     otherwise adversely affect any of the rights, privileges, or 
     benefits of employees of the United States Postal Service, 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 with the United 
     States Postal Service, or any collective bargaining 
     agreement.
       ``(f) 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.
       ``(g) As used in this section, `Board of Governors' and 
     `Board' each has the meaning given it by section 102 of title 
     39, United States Code.''.
       (c) Audits of the Postal Service.--
       (1) Audits.--Subsection (e) of section 2008 of title 39, 
     United States Code, is amended to read as follows:
       ``(e)(1) At least once each year beginning with the fiscal 
     year commencing after the date of the enactment of the Postal 
     Accountability and Enhancement Act, the financial statements 
     of the Postal Service (including those used in determining 
     and establishing postal rates) shall be audited by the 
     Inspector General or by an independent external auditor 
     selected by the Inspector General.
       ``(2) Audits under this section shall be conducted in 
     accordance with applicable generally accepted government 
     auditing standards.
       ``(3) Upon completion of the audit required by this 
     subsection, the person who audits the statement shall submit 
     a report on the audit to the Postmaster General.''.
       (2) Results of inspector general's audit to be included in 
     annual report.--Section 2402 of title 39, United States Code, 
     is amended by inserting after the first sentence the 
     following: ``Each report under this section shall include, 
     for the most recent fiscal year for which a report under 
     section 2008(e) is available (unless previously transmitted 
     under the following sentence), a copy of such report.''.
       (3) Coordination provisions.--Section 2008(d) of title 39, 
     United States Code, is amended--
       (A) by striking ``(d) Nothing'' and inserting ``(d)(1) 
     Except as provided in paragraph (2), nothing''; and
       (B) by adding at the end the following:
       ``(2) An audit or report under paragraph (1) may not be 
     obtained without the prior written approval of the Inspector 
     General.''.
       (4) Savings provision.--For purposes of any fiscal year 
     preceding the first fiscal year commencing after the date of 
     the enactment of this Act, the provisions of title 39, United 
     States Code, shall be applied as if the amendments made by 
     this subsection had never been enacted.
       (d) Reports.--Section 3013 of title 39, United States Code, 
     is amended by striking ``Postmaster General'' each place it 
     appears and inserting ``Chief Postal Inspector''.

[[Page S8151]]

       (e) Technical and Conforming Amendments.--
       (1) Relating to the inspector general act of 1978.--(A) 
     Subsection (a) of section 8H of the Inspector General Act of 
     1978 (as amended by section 701(a) and redesignated by 
     subsection (b) of this section) is further amended--
       (i) in paragraph (2) by striking ``the Postal Regulatory 
     Commission, and the United States Postal Service;'' and 
     inserting ``and the Postal Regulatory Commission;'' and
       (ii) in paragraph (4) by striking ``except that'' and all 
     that follows through ``Code);'' and inserting ``except that, 
     with respect to the National Science Foundation, such term 
     means the National Science Board;''.
       (B)(i) Subsection (f) of section 8H of such Act (as so 
     redesignated) is repealed.
       (ii) Subsection (c) of section 8H of such Act (as so 
     redesignated) is amended by striking ``Except as provided 
     under subsection (f) of this section, the'' and inserting 
     ``The''.
       (C) Section 8J of such Act (as so redesignated) is 
     amended--
       (i) by striking all after ``8D,'' and before ``of this 
     Act'' and inserting `` 8E, 8F, 8G, or 8I''; and
       (ii) by striking ``8G(a)'' and inserting ``8H(a)''.
       (2) Relating to title 39, united states code.--(A) 
     Subsection (e) of section 202 of title 39, United States 
     Code, is repealed.
       (B) Paragraph (4) of section 102 of such title 39 (as 
     amended by section 101) is amended to read as follows:
       ``(4) `Inspector General' means the Inspector General of 
     the United States Postal Service, appointed under section 
     3(a) of the Inspector General Act of 1978;''.
       (C) The first sentence of section 1003(a) of such title 39 
     is amended by striking ``chapters 2 and 12 of this title, 
     section 8G of the Inspector General Act of 1978, or other 
     provision of law,'' and inserting ``chapter 2 or 12 of this 
     title, subsection (b) or (c) of section 1003 of this title, 
     or any other provision of law,''.
       (D) Section 1003(b) of such title 39 is amended by striking 
     ``respective'' and inserting ``other''.
       (E) Section 1003(c) of such title 39 is amended by striking 
     ``included'' and inserting ``includes''.
       (3) Relating to the federal property and administrative 
     services act of 1949.--Section 304C(b)(1) of the Federal 
     Property and Administrative Services Act of 1949 (41 U.S.C. 
     254d(b)(1)) is amended by striking ``8G'' and inserting 
     ``8H''.
       (4) Relating to the energy policy act of 1992.--Section 
     160(a) of the Energy Policy Act of 1992 (42 U.S.C. 8262f(a)) 
     is amended (in the matter before paragraph (1)) by striking 
     all that follows ``(5 U.S.C. App.)'' and before ``shall--''.
       (f) Effective Date; Eligibility of Prior Inspector 
     General.--
       (1) Effective date.--
       (A) In general.--Except as provided in subparagraph (B) or 
     subsection (c), this section and the amendments made by this 
     section shall take effect on the date of the enactment of 
     this Act.
       (B) Special rules.--
       (i) In general.--If the position of Inspector General of 
     the United States Postal Service is occupied on the date of 
     enactment of this Act (other than by an individual serving 
     due to a vacancy arising in that position before the 
     expiration of his or her predecessor's term), then, for 
     purposes of the period beginning on such date of enactment 
     and ending on January 5, 2004, or, if earlier, the date on 
     which such individual ceases to serve in that position, title 
     39, United States Code, and the Inspector General Act of 1978 
     shall be applied as if the amendments made by this section 
     had not been enacted, except--

       (I) for those made by subsections (c) and (d); and
       (II) as provided in clause (ii).

       (ii) Authorization of appropriations.--

       (I) In general.--Notwithstanding any other provision of 
     this paragraph, subsection (f) of section 8G of the Inspector 
     General Act of 1978 (as amended by this section) shall be 
     effective for purposes of fiscal years beginning on or after 
     October 1, 2002.
       (II) Savings provision.--For purposes of the fiscal year 
     ending on September 30, 2002, funding for the Office of 
     Inspector General of the United States Postal Service shall 
     be made available in the same manner as if this Act had never 
     been enacted.

       (2) Eligibility of prior inspector general.--Nothing in 
     this Act shall prevent any individual who has served as 
     Inspector General of the United States Postal Service at any 
     time before the date of the enactment of this Act from being 
     appointed to that position pursuant to the amendments made by 
     this section.

                        TITLE VIII--EVALUATIONS

     SEC. 801. DEFINITION.

       For purposes of this title, the term ``Board of Governors'' 
     has the meaning given such term by section 102 of title 39, 
     United States Code.

     SEC. 802. ASSESSMENTS OF RATEMAKING, CLASSIFICATION, AND 
                   OTHER PROVISIONS.

       (a) In General.--The Postal Regulatory Commission shall, at 
     least every 5 years, submit a report to the President and the 
     Congress concerning--
       (1) the operation of the amendments made by the Postal 
     Accountability and Enhancement 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 such report and to 
     submit written comments thereon. Any comments timely received 
     from the Postal Service under the preceding sentence shall be 
     attached to the report submitted under subsection (a).
       (c) Specific Information Required.--The Postal Regulatory 
     Commission shall include, as part of at least its first 
     report under subsection (a), the following:
       (1) Cost-coverage requirement relating to competitive 
     products collectively.--With respect to section 3633 of title 
     39, United States Code (as amended by this Act)--
       (A) a description of how such section has operated; and
       (B) recommendations as to whether or not such section 
     should remain in effect and, if so, any suggestions as to how 
     it might be improved.
       (2) Competitive products fund.--With respect to the Postal 
     Service Competitive Products Fund (under section 2011 of 
     title 39, United States Code, as amended by section 401), in 
     consultation with the Secretary of the Treasury--
       (A) a description of how such Fund has operated;
       (B) any suggestions as to how the operation of such Fund 
     might be improved; and
       (C) a description and assessment of alternative accounting 
     or financing mechanisms that might be used to achieve the 
     objectives of such Fund.
       (3) Assumed federal income tax on competitive products 
     fund.--With respect to section 3634 of title 39, United 
     States Code (as amended by this Act), in consultation with 
     the Secretary of the Treasury--
       (A) a description of how such section has operated; and
       (B) recommendations as to whether or not such section 
     should remain in effect and, if so, any suggestions as to how 
     it might be improved.

     SEC. 803. 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, within 1 year after 
     the date of the enactment of this Act, a comprehensive report 
     identifying Federal and State laws that apply differently to 
     products of the United States Postal Service in 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.
       (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.

     SEC. 804. GREATER DIVERSITY IN POSTAL SERVICE EXECUTIVE AND 
                   ADMINISTRATIVE SCHEDULE MANAGEMENT POSITIONS.

       (a) Study.--The Board of Governors shall study and, within 
     1 year after the date of the enactment of this Act, submit to 
     the President and Congress a report concerning the extent to 
     which women and minorities are represented in supervisory and 
     management positions within the United States Postal Service. 
     Any data included in the report shall be presented in the 
     aggregate and by pay level.
       (b) Performance Evaluations.--The United States Postal 
     Service shall, as soon as practicable, take such measures as 
     may be necessary to ensure that, for purposes of conducting 
     performance appraisals of supervisory or managerial 
     employees, appropriate consideration shall be given to 
     meeting affirmative action goals, achieving equal employment 
     opportunity requirements, and implementation of plans 
     designed to achieve greater diversity in the workforce.

     SEC. 805. CONTRACTS WITH WOMEN, MINORITIES, AND SMALL 
                   BUSINESSES.

       The Board of Governors shall study and, within 1 year after 
     the date of the enactment of this Act, submit to the 
     President and the Congress a report concerning the number and 
     value of contracts and subcontracts the Postal Service has 
     entered into with women, minorities, and small businesses.

     SEC. 806. RATES FOR PERIODICALS.

       (a) In General.--The United States Postal Service, acting 
     jointly with the Postal Regulatory Commission and the General 
     Accounting Office, shall study and submit to the President 
     and Congress a report concerning--
       (1) the quality, accuracy, and completeness of the 
     information used by the Postal Service in determining the 
     direct and indirect postal costs attributable to periodicals; 
     and
       (2) any opportunities that might exist for improving 
     efficiencies in the collection, handling, transportation, or 
     delivery of periodicals by the Postal Service, including any 
     pricing incentives for mailers that might be appropriate.
       (b) Recommendations.--The report shall include 
     recommendations for any administrative action or legislation 
     that might be appropriate.

[[Page S8152]]

     SEC. 807. ASSESSMENT OF CERTAIN RATE DEFICIENCIES.

       (a) In General.--Within 12 months after the date of the 
     enactment of this Act, the Office of Inspector General of the 
     United States Postal Service shall study and submit to the 
     President, the Congress, and the United States Postal 
     Service, a report concerning the administration of section 
     3626(k) of title 39, United States Code.
       (b) Specific Requirements.--The study and report shall 
     specifically address the adequacy and fairness of the process 
     by which assessments under section 3626(k) of title 39, 
     United States Code, are determined and appealable, 
     including--
       (1) whether the Postal Regulatory Commission or any other 
     body outside the Postal Service should be assigned a role; 
     and
       (2) whether a statute of limitations should be established 
     for the commencement of proceedings by the Postal Service 
     thereunder.

      TITLE IX--MISCELLANEOUS; TECHNICAL AND CONFORMING AMENDMENTS

     SEC. 901. EMPLOYMENT OF POSTAL POLICE OFFICERS.

       Section 404 of title 39, United States Code, as amended by 
     sections 102 and 908(f), is further amended by adding at the 
     end the following:
       ``(f)(1) 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 
     such guards shall have, with respect to such property, the 
     powers of special policemen provided by the first section of 
     the Act cited in paragraph (2), and, as to such property, the 
     Postmaster General (or his designee) may take any action that 
     the Administrator of General Services (or his designee) may 
     take under section 2 or 3 of such Act, attaching thereto 
     penalties under the authority and within the limits provided 
     in section 4 of such Act.
       ``(2) The Act cited in this paragraph is the Act of June 1, 
     1948 (62 Stat. 281), commonly known as the `Protection of 
     Public Property Act'.''.

     SEC. 902. DATE OF POSTMARK TO BE TREATED AS DATE OF APPEAL IN 
                   CONNECTION WITH THE CLOSING OR CONSOLIDATION OF 
                   POST OFFICES.

       (a) In General.--Section 404(b) of title 39, United States 
     Code, is amended by adding at the end the following:
       ``(6) For purposes of paragraph (5), any appeal received by 
     the Commission shall--
       ``(A) if sent to the Commission through the mails, be 
     considered to have been received on the date of the Postal 
     Service postmark on the envelope or other cover in which such 
     appeal is mailed; or
       ``(B) if otherwise lawfully delivered to the Commission, be 
     considered to have been received on the date determined based 
     on any appropriate documentation or other indicia (as 
     determined under regulations of the Commission).''.
       (b) Effective Date.--This section and the amendments made 
     by this section shall apply with respect to any determination 
     to close or consolidate a post office which is first made 
     available, in accordance with paragraph (3) of section 404(b) 
     of title 39, United States Code, after the end of the 3-month 
     period beginning on the date of the enactment of this Act.

     SEC. 903. PROVISIONS RELATING TO BENEFITS UNDER CHAPTER 81 OF 
                   TITLE 5, UNITED STATES CODE, FOR OFFICERS AND 
                   EMPLOYEES OF THE FORMER POST OFFICE DEPARTMENT.

       (a) In General.--Section 8 of the Postal Reorganization Act 
     (39 U.S.C. 1001 note) is amended by inserting ``(a)'' after 
     ``8.'' and by adding at the end the following:
       ``(b) For purposes of chapter 81 of title 5, United States 
     Code, the Postal Service shall, with respect to any 
     individual receiving benefits under such chapter as an 
     officer or employee of the former Post Office Department, 
     have the same authorities and responsibilities as it has with 
     respect to an officer or employee of the Postal Service 
     receiving such benefits.''.
       (b) Effective Date.--This section and the amendments made 
     by this section shall take effect on October 1, 2001.

     SEC. 904. 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 length of time as may be determined by the Postal 
     Service to be advisable or appropriate)''.
       (2) Section 5402(c) 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) Clerical Amendment.--The analysis for part V of title 
     39, United States Code, is amended by repealing the item 
     relating to chapter 52.

     SEC. 905. EXPANDED CONTRACTING AUTHORITY.

       (a) Amendment to Title 39, United States Code.--
       (1) Contracts with air carriers.--Subsection (d) of section 
     5402 of title 39, United States Code, is amended to read as 
     follows:
       ``(d)(1) The Postal Service may contract with any air 
     carrier for the transportation of mail by aircraft in 
     interstate air transportation, including the rates therefor, 
     either through negotiations or competitive bidding.
       ``(2) Notwithstanding subsections (a) through (c), the 
     Postal Service may contract with any air carrier or foreign 
     air carrier for the transportation of mail by aircraft in 
     foreign air transportation, including the rates therefor, 
     either through negotiations or competitive bidding, except 
     that--
       ``(A) any such contract may be awarded only to (i) an air 
     carrier holding a certificate required by section 41101 of 
     title 49 or an exemption therefrom issued by the Secretary of 
     Transportation, (ii) a foreign air carrier holding a permit 
     required by section 41301 of title 49 or an exemption 
     therefrom issued by the Secretary of Transportation, or (iii) 
     a combination of such air carriers or foreign air carriers 
     (or both);
       ``(B) mail transported under any such contract shall not be 
     subject to any duty-to-carry requirement imposed by any 
     provision of subtitle VII of title 49 or by any certificate, 
     permit, or corresponding exemption authority issued by the 
     Secretary of Transportation under that subtitle;
       ``(C) every contract that the Postal Service awards to a 
     foreign air carrier under this paragraph shall be subject to 
     the continuing requirement that air carriers shall be 
     afforded the same opportunity to carry the mail of the 
     country to and from which the mail is transported and the 
     flag country of the foreign air carrier, if different, as the 
     Postal Service has afforded the foreign air carrier; and
       ``(D) the Postmaster General shall consult with the 
     Secretary of Defense concerning actions that affect the 
     carriage of military mail transported in foreign air 
     transportation.
       ``(3) Paragraph (2) shall not be interpreted as suspending 
     or otherwise diminishing the authority of the Secretary of 
     Transportation under section 41310 of title 49.''.
       (2) Definitions.--Subsection (e) of section 5402 of title 
     39, United States Code, is amended to read as follows:
       ``(e) For purposes of this section, the terms `air 
     carrier', `air transportation', `foreign air carrier', 
     `foreign air transportation', `interstate air 
     transportation', and `mail' shall have the meanings given 
     such terms in section 40102 of title 49.''.
       (b) Amendments to Title 49, United States Code.--
       (1) Authority of postal service to provide for interstate 
     air transportation of mail.--Section 41901(a) of title 49, 
     United States Code, is amended to read as follows:
       ``(a) Title 39.--The United States Postal Service may 
     provide for the transportation of mail by aircraft in air 
     transportation under this chapter and under chapter 54 of 
     title 39.''.
       (2) Schedules for certain transportation of mail.--Section 
     41902(b)(1) of title 49, United States Code, is amended by 
     inserting before the semicolon at the end the following: 
     ``(other than foreign air transportation of mail)''.
       (3) Prices for foreign transportation of mail.--Section 
     41907 of title 49, United States Code, is amended--
       (A) by striking ``(a) Limitations.--''; and
       (B) by striking subsection (b).
       (4) Conforming amendments.--Sections 41107, 41901(b)(1), 
     41902(a), 41903(a), and 41903(b) of title 49, United States 
     Code, are amended by striking ``in foreign air transportation 
     or''.

     SEC. 906. INVESTMENTS.

       Subsection (c) of section 2003 of title 39, United States 
     Code, is amended--
       (1) by striking ``(c) If'' and inserting ``(c)(1) Except as 
     provided in paragraph (2), if''; and
       (2) by adding at the end the following:
       ``(2)(A) Nothing in this section shall be considered to 
     authorize any investment in any obligations or securities of 
     a commercial entity.
       ``(B) For purposes of this paragraph, the term `commercial 
     entity' means any corporation, company, association, 
     partnership, joint stock company, firm, society, or other 
     similar entity, as further defined under regulations 
     prescribed by the Postal Regulatory Commission.''.

     SEC. 907. REPEAL OF SECTION 5403.

       (a) In General.--Section 5403 of title 39, United States 
     Code, is repealed.
       (b) Clerical Amendment.--The analysis for chapter 54 of 
     title 39, United States Code, is amended by repealing the 
     item relating to section 5403.

     SEC. 908. TECHNICAL AND CONFORMING AMENDMENTS.

       (a) Reduced Rates.--Section 3626 of title 39, United States 
     Code, is amended--
       (1) in subsection (a)--
       (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

[[Page S8153]]

     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).''; and
       (B) by redesignating paragraphs (4) through (7) as 
     paragraphs (3) through (6), respectively;
       (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.'';
       (3) in subsection (j)(1)(D)--
       (A) by striking ``and'' at the end of subclause (I); and
       (B) by adding after subclause (II) the following:
       ``(III) clause (i) shall not apply to space advertising in 
     mail matter that otherwise qualifies for rates under former 
     section 4452(b) or 4452(c) of this title, and satisfies the 
     content requirements established by the Postal Service for 
     periodical publications.''; and
       (4) 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).''.
       (b) Reimbursement.--Section 3681 of title 39, United States 
     Code, is amended by striking ``section 3628'' and inserting 
     ``sections 3662 through 3664''.
       (c) Size and Weight Limits.--Section 3682 of title 39, 
     United States Code, is amended to read as follows:

     ``Sec. 3682. Size and weight limits

       ``The Postal Service may establish size and weight 
     limitations for mail matter in the market-dominant category 
     of mail consistent with regulations the Postal Regulatory 
     Commission may prescribe under section 3622. The Postal 
     Service may establish size and weight limitations for mail 
     matter in the competitive category of mail consistent with 
     its authority under section 3632.''.
       (d) Revenue Foregone, Etc.--Title 39, United States Code, 
     is amended--
       (1) in section 503 (as so redesignated by section 601) by 
     striking ``this chapter.'' and inserting ``this title.''; and
       (2) in section 2401(d) by inserting ``(as last in effect 
     before enactment of the Postal Accountability and Enhancement 
     Act)'' after ``3626(a)'' and after ``3626(a)(3)(B)(ii)''.
       (e) Appropriations and Reporting Requirements.--
       (1) Appropriations.--Subsection (e) of section 2401 of 
     title 39, United States Code, is amended--
       (A) by striking ``Committee on Post Office and Civil 
     Service'' each place it appears and inserting ``Committee on 
     Government Reform''; and
       (B) by striking ``Not later than March 15 of each year,'' 
     and inserting ``Each year,''.
       (2) Reporting requirements.--Sections 2803(a) and 2804(a) 
     of title 39, United States Code, are amended by striking 
     ``2401(g)'' and inserting ``2401(e)''.
       (f) Authority To Fix Rates and Classes Generally; 
     Requirement Relating to Letters Sealed Against Inspection.--
     Section 404 of title 39, United States Code (as amended by 
     section 102) is further amended by redesignating subsections 
     (b) and (c) as subsections (d) and (e), respectively, and by 
     inserting after subsection (a) the following:
       ``(b) Except as otherwise provided, the Governors are 
     authorized to establish reasonable and equitable classes of 
     mail and reasonable and equitable rates of postage and fees 
     for postal services in accordance with the provisions of 
     chapter 36. Postal rates and fees shall be reasonable and 
     equitable and sufficient to enable the Postal Service, under 
     best practices of honest, efficient, and economical 
     management, to maintain and continue the development of 
     postal services of the kind and quality adapted to the needs 
     of the United States.
       ``(c) The Postal Service shall maintain one or more classes 
     of mail for the transmission of letters sealed against 
     inspection. The rate for each such class shall be uniform 
     throughout the United States, its territories, and 
     possessions. One such class shall provide for the most 
     expeditious handling and transportation afforded mail matter 
     by the Postal Service. No letter of such a class of domestic 
     origin shall be opened except under authority of a search 
     warrant authorized by law, or by an officer or employee of 
     the Postal Service for the sole purpose of determining an 
     address at which the letter can be delivered, or pursuant to 
     the authorization of the addressee.''.
       (g) Limitations.--Section 3684 of title 39, United States 
     Code, is amended by striking all that follows ``any 
     provision'' and inserting ``of this title.''.
       (h) Miscellaneous.--Title 39, United States Code, is 
     amended--
       (1) in section 410(b), by moving the left margin of 
     paragraph (10) 2 ems to the left;
       (2) in section 1005(d)(2)--
       (A) by striking ``subsection (g) of section 5532,''; and
       (B) by striking ``8344,'' and inserting ``8344'';
       (3) in the analysis for part III, by striking the item 
     relating to chapter 28 and inserting the following:

``28. Strategic Planning and Performance Management.............2801'';
       (4) in subsections (h)(2) and (i)(2) of section 3001, by 
     moving the left margin of subparagraph (C) of each 2 ems to 
     the left;
       (5) in section 3005(a)--
       (A) in the matter before paragraph (1), by striking all 
     that follows ``nonmailable'' and precedes ``(h),'' and 
     inserting ``under section 3001(d),''; and
       (B) in the sentence following paragraph (3), by striking 
     all that follows ``nonmailable'' and precedes ``(h),'' and 
     inserting ``under such section 3001(d),'';
       (6) in section 3210(a)(6)(C), by striking the matter after 
     ``if such mass mailing'' and before ``than 60 days'' and 
     inserting ``is postmarked fewer'';
       (7) in section 3626(a), by moving the left margin of 
     paragraphs (3), (5), and (6) (as so redesignated by 
     subsection (a)(1)(B), and including each subparagraph 
     thereunder (if any)) 2 ems to the left;
       (8) by striking the heading for section 3627 and inserting 
     the following:

     ``Sec. 3627. Adjusting free rates''

       ; and
       (9) in section 5402(g)(1), by moving the left margin of 
     subparagraph (D) (including each clause thereunder) 2 ems to 
     the left.
                                 ______
                                 
      By Mr. LEAHY (for himself, Mr. Daschle, Mr. Kennedy, Mr. 
        Feingold, and Mr. Bingaman):
  S. 1286. A bill to combat nursing home fraud and abuse, increase 
protections for victims of telemarketing fraud, enhance safeguards for 
pension plans and health care benefit programs, and enhance penalties 
for crimes against seniors, and for other purposes; to the Committee on 
the Judiciary.
  Mr. LEAHY. Madam President, today I am introducing the Seniors Safety 
Act of 2003, a bill to protect older Americans from crime. I am pleased 
to have Senators Daschle, Kennedy, Feingold, and Bingaman as cosponsors 
for this anti-crime bill.
  The Seniors Safety Act is a comprehensive bill that addresses the 
most prevalent crimes perpetrated against seniors, including health 
care fraud, nursing home abuse, telemarketing fraud--and bribery, graft 
and fraud in pension and employee benefit plans. In addition, this 
legislation would help seniors obtain restitution if their pension 
plans are defrauded.
  Older Americans are the most rapidly growing population group in our 
society, making them an even more attractive target for criminals. The 
Department of Health and Human Services has predicted that the number 
of older Americans will grow from 13 percent of the U.S. population in 
2000 to 20 percent by 2030. In Vermont, seniors comprise about 12 
percent of the population, a number that is expected to increase to 20 
percent by 2025.
  Crime against seniors has remained stubbornly resistant over the last 
decade. According to a 2000 Justice Department study, more than 90 
percent of crimes committed against older Americans were property 
crimes, with theft the most common. As our Nation addressed our violent 
crime problem, we did not take a comprehensive approach to deterring 
the crimes that so affect the elderly, like telemarketing fraud, health 
care fraud, and pension fraud. The Seniors Safety Act provides such a 
comprehensive approach, and I urge the Senate to pass it.
  The Seniors Safety Act instructs the U.S. Sentencing Commission to 
review current sentencing guidelines and, if appropriate, amend the 
guidelines to include the age of a crime victim as a criteria for 
determining whether a sentencing enhancement is proper. The bill also 
requires the Commission to review sentencing guidelines for health care 
benefit fraud, increases statutory penalties both for fraud resulting 
in serious injury or death and for bribery

[[Page S8154]]

and graft in connection with employee benefit plans, and increases 
criminal and civil penalties for defrauding pension plans.
  Telemarketing fraud is one crime that disproportionately harms 
Americans over age 50. The Seniors Safety Act seeks to fight the 
perpetrators of fraud--schemes that often succeed in swindling seniors 
of their life savings. Some of these schemes are directed from outside 
the United States, making criminal prosecution more difficult.
  The Act would provide the Attorney General with a new and substantial 
tool to prevent telemarketing fraud the power to block or terminate 
service to telephone facilities that are being used to defraud innocent 
people. The Justice Department could use this authority to disrupt 
telemarketing fraud schemes directed from foreign sources by cutting 
off the swindlers' telephone service. Even if the criminals acquire a 
new telephone number, temporary interruptions will prevent some seniors 
from being victimized.
  The bill also establishes a ``Better Business Bureau''-style 
clearinghouse at the Federal Trade Commission to provide seniors, their 
families, and others who may be concerned about a telemarketer with 
information about prior law enforcement actions against the particular 
company. In addition, the FTC would refer seniors and other consumers 
who believe they have been swindled to the appropriate law enforcement 
authorities.
  Criminal activity that undermines the safety and integrity of pension 
plans and health benefit programs threatens all Americans, but most 
especially those seniors who have relied on promised benefits in 
planning their retirements. Seniors who have worked faithfully and 
honestly for years should not reach their retirement years only to find 
that the funds they relied upon were stolen.
  The Seniors Safety Act would add to the arsenal that federal 
prosecutors can draw upon to prevent and punish fraud against 
retirement plans. Specifically, the Act would create new criminal and 
civil penalties for defrauding pension plans or obtaining money or 
property from such plans by means of false or fraudulent pretenses. In 
addition, the Act would enhance penalties for bribery and graft in 
connection with employee benefit plans. The only people enjoying the 
benefits of pension plans should be the people who have worked hard to 
fund those plans, not crooks who get the money by fraud.
  Health care spending consists of about 15 percent of the gross 
national product, or more than $1 trillion each year. Estimated losses 
due to fraud and abuse are astronomical. A December 1998 report by the 
National Institute of Justice, NIJ, states that these losses ``may 
exceed 10 percent of annual health care spending, or $100 billion per 
year.''
  As more health care claims are processed electronically, more 
sophisticated computer-generated fraud schemes are surfacing. Some of 
these schemes generate thousands of false claims designed to pass 
through automated claims processing to payment, and result in the theft 
of millions of dollars from federal and private health care programs. 
Fraud against Medicare, Medicaid and private health plans increases the 
financial burden on taxpayers and beneficiaries alike. In addition, 
some forms of fraud may result in inadequate medical care, harming 
patients' health as well. Unfortunately, the NIJ reports that many 
health care fraud schemes ``deliberately target vulnerable populations, 
such as the elderly or Alzheimer's patients, who are less willing or 
able to complain or alert law enforcement.''
  We saw a dramatic increase in criminal convictions for health care 
fraud cases during the 1990s. These cases included convictions for 
submitting false claims to Medicare, Medicaid, and private insurance 
plans; fraudulent billings by foreign doctors; and needless 
prescriptions for durable medical equipment by doctors in exchange for 
kickbacks from manufacturers.
  We can and must do more. The Seniors Safety Act would allow the 
Attorney General to bring injunctive actions to stop false claims and 
illegal kickback schemes involving federal health care programs. The 
bill would also provide law enforcement authorities with additional 
investigatory tools to uncover, investigate, and prosecute health care 
offenses in both criminal and civil proceedings.
  In addition, whistle-blowers who tip off law enforcement officers 
about health care fraud would be authorized under the Seniors Safety 
Act to seek court permission to review information obtained by the 
government to enhance their assistance in False Claims Act lawsuits. 
Such qui tam, or whistle-blower, suits have dramatically enhanced the 
government's ability to uncover health care fraud. The Act would allow 
whistle-blowers and their qui tam suits to become even more effective.
  Finally, the Act would extend anti-fraud and anti-kickback safeguards 
to the Federal Employees Health Benefits program. These are all 
important steps that will help cut down on the enormous health care 
fraud losses.
  As life expectancies continue to increase, long-term care planning 
specialists estimate that over 40 percent of those turning 65 
eventually will need nursing home care, and that 20 percent of those 
seniors will spend five years or more in homes. Indeed, many of us 
already have experienced having our parents, family members or other 
loved ones spend time in a nursing home. We owe it to them and to 
ourselves to give the residents of nursing homes the best and safest 
care they can get.
  The Justice Department has cited egregious examples of nursing homes 
that pocketed Medicare funds instead of providing residents with 
adequate care. In one case, five patients died as a result of the 
inadequate provision of nutrition, wound care and diabetes management 
by three Pennsylvania nursing homes. Yet another death occurred when a 
patient, who was unable to speak, was placed in a scalding tub of 138-
degree water.
  This Act provides additional peace of mind to nursing home residents 
and their families by providing federal law enforcement with the 
authority to investigate and prosecute operators of nursing homes for 
willfully engaging in patterns of health and safety violations in the 
care of nursing home residents. The Act also protects whistle-blowers 
from retaliation for reporting such violations.
  This title of the Seniors Safety Act would authorize the Attorney 
General to use forfeited funds to pay restitution to victims of 
fraudulent activity, and authorize the courts to require the forfeiture 
of proceeds from retirement-related offenses. In addition, it would 
exempt false claims actions from being stayed in bankruptcy proceedings 
and ensure that debts due to the United States from false claims 
actions are not dischargeable in bankruptcy.
  We all deserve to age with dignity and free of the threat of abuse or 
fraud. No one can guarantee that this will happen, but the Senior 
Safety Act can be a powerful new tool to help crack down on those who 
prey upon older Americans. This effort is about all of us and our 
families.
  These are problems that have persisted too long. It is past the time 
for the Senate to act. I ask unanimous consent that the text of the 
legislation be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1286

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Seniors 
     Safety Act of 2003''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.
Sec. 3. Definitions.

               TITLE I--COMBATING CRIMES AGAINST SENIORS

Sec. 101. Enhanced sentencing penalties based on age of victim.
Sec. 102. Study and report on health care fraud sentences.
Sec. 103. Increased penalties for fraud resulting in serious injury or 
              death.
Sec. 104. Safeguarding pension plans from fraud and theft. 
Sec. 105. Additional civil penalties for defrauding pension plans. 
Sec. 106. Punishing bribery and graft in connection with employee 
              benefit plans.

                TITLE II--PREVENTING TELEMARKETING FRAUD

Sec. 201. Centralized complaint and consumer education service for 
              victims of telemarketing fraud.
Sec. 202. Blocking of telemarketing scams.

[[Page S8155]]

                TITLE III--PREVENTING HEALTH CARE FRAUD

Sec. 301. Injunctive authority relating to false claims and illegal 
              kickback schemes involving Federal health care programs.
Sec. 302. Authorized investigative demand procedures.
Sec. 303. Extending antifraud safeguards to the Federal employee health 
              benefits program.
Sec. 304. Grand jury disclosure.
Sec. 305. Increasing the effectiveness of civil investigative demands 
              in false claims investigations.

            TITLE IV--PROTECTING RESIDENTS OF NURSING HOMES

Sec. 401. Short title.
Sec. 402. Nursing home resident protection.

        TITLE V--PROTECTING THE RIGHTS OF ELDERLY CRIME VICTIMS

Sec. 501. Use of forfeited funds to pay restitution to crime victims 
              and regulatory agencies.
Sec. 502. Victim restitution.
Sec. 503. Bankruptcy proceedings not used to shield illegal gains from 
              false claims.
Sec. 504. Forfeiture for retirement offenses.

     SEC. 2. FINDINGS AND PURPOSES.

       (a) Findings.--Congress makes the following findings:
       (1) The number of older Americans is rapidly growing in the 
     United States. According to the 2000 census, 21 percent of 
     the United States population is 55 years of age or older.
       (2) In 1997, 7 percent of victims of serious violent crime 
     were 50 years of age or older.
       (3) In 1997, 17.7 percent of murder victims were 55 years 
     of age or older.
       (4) According to the Department of Justice, persons 65 
     years of age and older experienced approximately 2,700,000 
     crimes a year between 1992 and 1997.
       (5) Older victims of violent crime are almost twice as 
     likely as younger victims to be raped, robbed, or assaulted 
     at or in their own homes.
       (6) Approximately half of all Americans who are 50 years of 
     age or older are afraid to walk alone at night in their own 
     neighborhoods.
       (7) Seniors over 50 years of age reportedly account for 37 
     percent of the estimated $40,000,000,000 in losses each year 
     due to telemarketing fraud.
       (8) A 1996 American Association of Retired Persons survey 
     of people 50 years of age and older showed that 57 percent 
     were likely to receive calls from telemarketers at least once 
     a week.
       (9) In 1998, Congress enacted legislation to provide for 
     increased penalties for telemarketing fraud that targets 
     seniors.
       (10) It has been estimated that--
       (A) approximately 43 percent of persons turning 65 years of 
     age can expect to spend some time in a long-term care 
     facility; and
       (B) approximately 20 percent can expect to spend 5 years or 
     more in a such a facility.
       (11) In 1997, approximately $82,800,000,000 was spent on 
     nursing home care in the United States and over half of this 
     amount was spent by the Medicaid and Medicare programs.
       (12) Losses to fraud and abuse in health care reportedly 
     cost the United States an estimated $100,000,000,000 in 1996.
       (13) The Inspector General for the Department of Health and 
     Human Services has estimated that about $12,600,000,000 in 
     improper Medicare benefit payments, due to inadvertent 
     mistake, fraud, and abuse were made during fiscal year 1998.
       (14) Incidents of health care fraud and abuse remain common 
     despite awareness of the problem.
       (b) Purposes.--The purposes of this Act are to--
       (1) combat nursing home fraud and abuse;
       (2) enhance safeguards for pension plans and health care 
     programs;
       (3) develop strategies for preventing and punishing crimes 
     that target or otherwise disproportionately affect seniors by 
     collecting appropriate data--
       (A) to measure the extent of crimes committed against 
     seniors; and
       (B) to determine the extent of domestic and elder abuse of 
     seniors; and
       (4) prevent and deter criminal activity, such as 
     telemarketing fraud, that results in economic and physical 
     harm against seniors, and ensure appropriate restitution.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Crime.--The term ``crime'' means any criminal offense 
     under Federal or State law.
       (2) Nursing home.--The term ``nursing home'' means any 
     institution or residential care facility defined as such for 
     licensing purposes under State law, or if State law does not 
     employ the term nursing home, the equivalent term or terms as 
     determined by the Secretary of Health and Human Services, 
     pursuant to section 1908(e) of the Social Security Act (42 
     U.S.C. 1396g(e)).
       (3) Senior.--The term ``senior'' means an individual who is 
     more than 55 years of age.

               TITLE I--COMBATING CRIMES AGAINST SENIORS

     SEC. 101. ENHANCED SENTENCING PENALTIES BASED ON AGE OF 
                   VICTIM.

       (a) Directive to the United States Sentencing Commission.--
     Pursuant to its authority under section 994(p) of title 28, 
     United States Code, and in accordance with this section, the 
     United States Sentencing Commission (referred to in this 
     section as the ``Commission'') shall review and, if 
     appropriate, amend section 3A1.1(a) of the Federal sentencing 
     guidelines to include the age of a crime victim as one of the 
     criteria for determining whether the application of a 
     sentencing enhancement is appropriate.
       (b) Requirements.--In carrying out this section, the 
     Commission shall--
       (1) ensure that the Federal sentencing guidelines and the 
     policy statements of the Commission reflect the serious 
     economic and physical harms associated with criminal activity 
     targeted at seniors due to their particular vulnerability;
       (2) consider providing increased penalties for persons 
     convicted of offenses in which the victim was a senior in 
     appropriate circumstances;
       (3) consult with individuals or groups representing 
     seniors, law enforcement agencies, victims organizations, and 
     the Federal judiciary as part of the review described in 
     subsection (a);
       (4) ensure reasonable consistency with other Federal 
     sentencing guidelines and directives;
       (5) account for any aggravating or mitigating circumstances 
     that may justify exceptions, including circumstances for 
     which the Federal sentencing guidelines provide sentencing 
     enhancements;
       (6) make any necessary conforming changes to the Federal 
     sentencing guidelines; and
       (7) ensure that the Federal sentencing guidelines 
     adequately meet the purposes of sentencing set forth in 
     section 3553(a)(2) of title 18, United States Code.
       (c) Report.--Not later than December 31, 2004, the 
     Commission shall submit to Congress a report on issues 
     relating to the age of crime victims, which shall include--
       (1) an explanation of any changes to sentencing policy made 
     by the Commission under this section; and
       (2) any recommendations of the Commission for retention or 
     modification of penalty levels, including statutory penalty 
     levels, for offenses involving seniors.

     SEC. 102. STUDY AND REPORT ON HEALTH CARE FRAUD SENTENCES.

       (a) Directive to the United States Sentencing Commission.--
     Pursuant to its authority under section 994(p) of title 28, 
     United States Code, and in accordance with this section, the 
     United States Sentencing Commission (referred to in this 
     section as the ``Commission'') shall review and, if 
     appropriate, amend the Federal sentencing guidelines and the 
     policy statements of the Commission with respect to persons 
     convicted of offenses involving fraud in connection with a 
     health care benefit program (as defined in section 24(b) of 
     title 18, United States Code).
       (b) Requirements.--In carrying out this section, the 
     Commission shall--
       (1) ensure that the Federal sentencing guidelines and the 
     policy statements of the Commission reflect the serious harms 
     associated with health care fraud and the need for aggressive 
     and appropriate law enforcement action to prevent such fraud;
       (2) consider providing increased penalties for persons 
     convicted of health care fraud in appropriate circumstances;
       (3) consult with individuals or groups representing victims 
     of health care fraud, law enforcement agencies, the health 
     care industry, and the Federal judiciary as part of the 
     review described in subsection (a);
       (4) ensure reasonable consistency with other Federal 
     sentencing guidelines and directives;
       (5) account for any aggravating or mitigating circumstances 
     that might justify exceptions, including circumstances for 
     which the Federal sentencing guidelines provide sentencing 
     enhancements;
       (6) make any necessary conforming changes to the Federal 
     sentencing guidelines; and
       (7) ensure that the Federal sentencing guidelines 
     adequately meet the purposes of sentencing as set forth in 
     section 3553(a)(2) of title 18, United States Code.
       (c) Report.--Not later than December 31, 2004, the 
     Commission shall submit to Congress a report on issues 
     relating to offenses described in subsection (a), which shall 
     include--
       (1) an explanation of any changes to sentencing policy made 
     by the Commission under this section; and
       (2) any recommendations of the Commission for retention or 
     modification of penalty levels, including statutory penalty 
     levels, for those offenses.

     SEC. 103. INCREASED PENALTIES FOR FRAUD RESULTING IN SERIOUS 
                   INJURY OR DEATH.

       Sections 1341 and 1343 of title 18, United States Code, are 
     each amended by inserting before the last sentence the 
     following: ``If the violation results in serious bodily 
     injury (as defined in section 1365), such person shall be 
     fined under this title, imprisoned not more than 20 years, or 
     both, and if the violation results in death, such person 
     shall be fined under this title, imprisoned for any term of 
     years or life, or both.''.

     SEC. 104. SAFEGUARDING PENSION PLANS FROM FRAUD AND THEFT.

       (a) In General.--Chapter 63 of title 18, United States 
     Code, is amended by adding at the end the following:

     ``Sec. 1351. Fraud in relation to retirement arrangements

       ``(a) Definition.--
       ``(1) Retirement arrangement.--In this section, the term 
     `retirement arrangement' means--

[[Page S8156]]

       ``(A) any employee pension benefit plan subject to any 
     provision of title I of the Employee Retirement Income 
     Security Act of 1974;
       ``(B) any qualified retirement plan within the meaning of 
     section 4974(c) of the Internal Revenue Code of 1986;
       ``(C) any medical savings account described in section 220 
     of the Internal Revenue Code of 1986; or
       ``(D) a fund established within the Thrift Savings Fund by 
     the Federal Retirement Thrift Investment Board pursuant to 
     subchapter III of chapter 84 of title 5.
       ``(2) Certain arrangements included.--The term `retirement 
     arrangement' shall include any arrangement that has been 
     represented to be an arrangement described in any 
     subparagraph of paragraph (1) (whether or not so described).
       ``(3) Exception for governmental plan.--Except as provided 
     in paragraph (1)(D), the term `retirement arrangement' shall 
     not include any governmental plan (as defined in section 
     3(32) of title I of the Employee Retirement Income Security 
     Act of 1974 (29 U.S.C. 1002(32))).
       ``(b) Prohibition and Penalties.--Whoever executes, or 
     attempts to execute, a scheme or artifice--
       ``(1) to defraud any retirement arrangement or other person 
     in connection with the establishment or maintenance of a 
     retirement arrangement; or
       ``(2) to obtain, by means of false or fraudulent pretenses, 
     representations, or promises, any of the money or property 
     owned by, or under the custody or control of, any retirement 
     arrangement or other person in connection with the 
     establishment or maintenance of a retirement arrangement;

     shall be fined under this title, imprisoned not more than 10 
     years, or both.
       ``(c) Enforcement.--
       ``(1) In general.--Subject to paragraph (2), the Attorney 
     General may investigate any violation of, and otherwise 
     enforce, this section.
       ``(2) Effect on other authority.--Nothing in this 
     subsection may be construed to preclude the Secretary of 
     Labor or the head of any other appropriate Federal agency 
     from investigating a violation of this section in relation to 
     a retirement arrangement subject to title I of the Employee 
     Retirement Income Security Act of 1974 (29 U.S.C. 1001 et 
     seq.) or any other provision of Federal law.''.
       (b) Technical Amendment.--Section 24(a)(1) of title 18, 
     United States Code, is amended by inserting ``1351,'' after 
     ``1347,''.
       (c) Conforming Amendment.--The analysis for chapter 63 of 
     title 18, United States Code, is amended by adding at the end 
     the following:

``1351. Fraud in relation to retirement arrangements.''.

     SEC. 105. ADDITIONAL CIVIL PENALTIES FOR DEFRAUDING PENSION 
                   PLANS.

       (a) In General.--
       (1) Action by attorney general.--Except as provided in 
     subsection (b)--
       (A) the Attorney General may bring a civil action in the 
     appropriate district court of the United States against any 
     person who engages in conduct constituting an offense under 
     section 1351 of title 18, United States Code, or conspiracy 
     to violate such section 1351; and
       (B) upon proof of such conduct by a preponderance of the 
     evidence, such person shall be subject to a civil penalty in 
     an amount equal to the greatest of--
       (i) the amount of pecuniary gain to that person;
       (ii) the amount of pecuniary loss sustained by the victim; 
     or
       (iii) not more than--

       (I) $50,000 for each such violation in the case of an 
     individual; or
       (II) $100,000 for each such violation in the case of a 
     person other than an individual.

       (2) No effect on other remedies.--The imposition of a civil 
     penalty under this subsection does not preclude any other 
     statutory, common law, or administrative remedy available by 
     law to the United States or any other person.
       (b) Exception.--No civil penalty may be imposed pursuant to 
     subsection (a) with respect to conduct involving a retirement 
     arrangement that--
       (1) is an employee pension benefit plan subject to title I 
     of the Employee Retirement Income Security Act of 1974; and
       (2) for which the civil penalties may be imposed under 
     section 502 of the Employee Retirement Income Security Act of 
     1974 (29 U.S.C. 1132).
       (c) Determination of Penalty Amount.--In determining the 
     amount of the penalty under subsection (a), the district 
     court may consider the effect of the penalty on the violator 
     or other person's ability to--
       (1) restore all losses to the victims; or
       (2) provide other relief ordered in another civil or 
     criminal prosecution related to such conduct, including any 
     penalty or tax imposed on the violator or other person 
     pursuant to the Internal Revenue Code of 1986.

     SEC. 106. PUNISHING BRIBERY AND GRAFT IN CONNECTION WITH 
                   EMPLOYEE BENEFIT PLANS.

       (a) In General.--Section 1954 of title 18, United States 
     Code, is amended to read as follows:

     ``Sec. 1954. Bribery and graft in connection with employee 
       benefit plans

       ``(a) Definitions.--In this section--
       ``(1) the term `employee benefit plan' means any employee 
     welfare benefit plan or employee pension benefit plan subject 
     to any provision of title I of the Employee Retirement Income 
     Security Act of 1974;
       ``(2) the terms `employee organization', `administrator', 
     and `employee benefit plan sponsor' mean any employee 
     organization, administrator, or plan sponsor, as defined in 
     title I of the Employment Retirement Income Security Act of 
     1974; and
       ``(3) the term `applicable person' means--
       ``(A) an administrator, officer, trustee, custodian, 
     counsel, agent, or employee of any employee benefit plan;
       ``(B) an officer, counsel, agent, or employee of an 
     employer or an employer any of whose employees are covered by 
     such plan;
       ``(C) an officer, counsel, agent, or employee of an 
     employee organization any of whose members are covered by 
     such plan;
       ``(D) a person who, or an officer, counsel, agent, or 
     employee of an organization that, provides benefit plan 
     services to such plan; or
       ``(E) a person with actual or apparent influence or 
     decisionmaking authority in regard to such plan.
       ``(b) Bribery and Graft.--Whoever--
       ``(1) being an applicable person, receives or agrees to 
     receive or solicits, any fee, kickback, commission, gift, 
     loan, money, or thing of value, personally or for any other 
     person, because of or with the intent to be corruptly 
     influenced with respect to any action, decision, or duty of 
     that applicable person relating to any question or matter 
     concerning an employee benefit plan;
       ``(2) directly or indirectly, gives or offers, or promises 
     to give or offer, any fee, kickback, commission, gift, loan, 
     money, or thing of value, to any applicable person, because 
     of or with the intent to be corruptly influenced with respect 
     to any action, decision, or duty of that applicable person 
     relating to any question or matter concerning an employee 
     benefit plan; or
       ``(3) attempts to give, accept, or receive any thing of 
     value with the intent to be corruptly influenced in violation 
     of this section;

     shall be fined under this title, imprisoned not more than 5 
     years, or both.
       ``(c) Exceptions.--Nothing in this section may be construed 
     to apply to any--
       ``(1) payment to, or acceptance by, any person of bona fide 
     salary, compensation, or other payments made for goods or 
     facilities actually furnished or for services actually 
     performed in the regular course of his duties as an 
     applicable person; or
       ``(2) payment to, or acceptance in good faith by, any 
     employee benefit plan sponsor, or person acting on behalf of 
     the sponsor, of anything of value relating to the decision or 
     action of the sponsor to establish, terminate, or modify the 
     governing instruments of an employee benefit plan in a manner 
     that does not violate--
       ``(A) title I of the Employee Retirement Income Security 
     Act of 1974;
       ``(B) any regulation or order promulgated under title I of 
     the Employee Retirement Income Security Act of 1974; or
       ``(C) any other provision of law governing the plan.''.
       (b) Conforming Amendment.--The analysis for chapter 95 of 
     title 18, United States Code, is amended by striking the item 
     relating to section 1954 and inserting the following:

``1954. Bribery and graft in connection with employee benefit plans.''.

                TITLE II--PREVENTING TELEMARKETING FRAUD

     SEC. 201. CENTRALIZED COMPLAINT AND CONSUMER EDUCATION 
                   SERVICE FOR VICTIMS OF TELEMARKETING FRAUD.

       (a) Centralized Service.--
       (1) Requirement.--The Federal Trade Commission shall, after 
     consultation with the Attorney General, establish procedures 
     to--
       (A) log the receipt of complaints by individuals who claim 
     that they have been the victim of fraud in connection with 
     the conduct of telemarketing (as that term is defined in 
     section 2325 of title 18, United States Code, as amended by 
     section 202(a) of this Act);
       (B) provide to individuals described in subparagraph (A), 
     and to any other persons, if requested, information on 
     telemarketing fraud, including--
       (i) general information on telemarketing fraud, including 
     descriptions of the most common telemarketing fraud schemes;
       (ii) information on means of referring complaints on 
     telemarketing fraud to appropriate law enforcement agencies, 
     including the Director of the Federal Bureau of 
     Investigation, the attorneys general of the States, and the 
     national toll-free telephone number on telemarketing fraud 
     established by the Attorney General; and
       (iii) information, if available, on any record of civil or 
     criminal law enforcement action for telemarketing fraud 
     against a particular company for which a specific request has 
     been made; and
       (C) refer complaints described in subparagraph (A), as 
     appropriate, to law enforcement authorities, including State 
     consumer protection agencies or entities, for potential 
     action.
       (2) Commencement.--The Federal Trade Commission shall 
     commence carrying out the service not later than 1 year after 
     the date of enactment of this Act.
       (b) Fraud Conviction Data.--
       (1) Entry of information on convictions into ftc 
     database.--The Attorney General shall provide information on 
     the corporations and companies that are the subject of civil 
     or criminal law enforcement action for telemarketing fraud 
     under Federal and State

[[Page S8157]]

     law to the Federal Trade Commission in such electronic format 
     as will enable the Federal Trade Commission to automatically 
     enter the information into a database maintained in 
     accordance with subsection (a).
       (2) Information.--The information described in paragraph 
     (1) shall include a description of the type and method of the 
     fraud scheme that prompted the law enforcement action against 
     each such corporation or company.
       (3) Use of database.--The Attorney General shall make 
     information in the database available to the Federal Trade 
     Commission for purposes of providing information as part of 
     the service under subsection (a).
       (c) Authorization of Appropriations.--There is authorized 
     to be appropriated such sums as may be necessary to carry out 
     this section.

     SEC. 202. BLOCKING OF TELEMARKETING SCAMS.

       (a) Expansion of Scope of Telemarketing Fraud Subject to 
     Enhanced Criminal Penalties.--Section 2325(1) of title 18, 
     United States Code, is amended by striking ``telephone 
     calls'' and inserting ``wire communications utilizing a 
     telephone service''.
       (b) Blocking or Termination of Telephone Service Associated 
     With Telemarketing Fraud.--
       (1) In general.--Chapter 113A of title 18, United States 
     Code, is amended by adding at the end the following:

     ``Sec. 2328. Blocking or termination of telephone service

       ``(a) Definitions.--In this section:
       ``(1) Reasonable notice to the subscriber.--
       ``(A) In general.--The term `reasonable notice to the 
     subscriber', in the case of a subscriber of a common carrier, 
     means any information necessary to provide notice to the 
     subscriber that--
       ``(i) the wire communications facilities furnished by the 
     common carrier may not be used for the purpose of 
     transmitting, receiving, forwarding, or delivering a wire 
     communication in interstate or foreign commerce for the 
     purpose of executing any scheme or artifice to defraud in 
     connection with the conduct of telemarketing; and
       ``(ii) such use constitutes sufficient grounds for the 
     immediate discontinuance or refusal of the leasing, 
     furnishing, or maintaining of the facilities to or for the 
     subscriber.
       ``(B) Included matter.--The term includes any tariff filed 
     by the common carrier with the Federal Communications 
     Commission that contains the information specified in 
     subparagraph (A).
       ``(2) Wire communication.--The term `wire communication' 
     has the same meaning given that term in section 2510(1).
       ``(3) Wire communications facility.--The term `wire 
     communications facility' means any facility (including 
     instrumentalities, personnel, and services) used by a common 
     carrier for purposes of the transmission, receipt, 
     forwarding, or delivery of wire communications.
       ``(b) Blocking or Terminating Telephone Service.--If a 
     common carrier subject to the jurisdiction of the Federal 
     Communications Commission is notified in writing by the 
     Attorney General, acting within the jurisdiction of the 
     Attorney General, that any wire communications facility 
     furnished by that common carrier is being used or will be 
     used by a subscriber for the purpose of transmitting or 
     receiving a wire communication in interstate or foreign 
     commerce for the purpose of executing any scheme or artifice 
     to defraud, or for obtaining money or property by means of 
     false or fraudulent pretenses, representations, or promises, 
     in connection with the conduct of telemarketing, the common 
     carrier shall discontinue or refuse the leasing, furnishing, 
     or maintaining of the facility to or for the subscriber after 
     reasonable notice to the subscriber.
       ``(c) Prohibition on Damages.--No damages, penalty, or 
     forfeiture, whether civil or criminal, shall be found or 
     imposed against any common carrier for any act done by the 
     common carrier in compliance with a notice received from the 
     Attorney General under this section.
       ``(d) Relief.--
       ``(1) In general.--Nothing in this section may be construed 
     to prejudice the right of any person affected thereby to 
     secure an appropriate determination, as otherwise provided by 
     law, in a Federal court, that--
       ``(A) the leasing, furnishing, or maintaining of a facility 
     should not be discontinued or refused under this section; or
       ``(B) the leasing, furnishing, or maintaining of a facility 
     that has been so discontinued or refused should be restored.
       ``(2) Supporting information.--In any action brought under 
     this subsection, the court may direct that the Attorney 
     General present evidence in support of the notice made under 
     subsection (b) to which such action relates.''.
       (2) Conforming amendment.--The analysis for chapter 113A of 
     title 18, United States Code, is amended by adding at the end 
     the following:

``2328. Blocking or termination of telephone service.''.

                TITLE III--PREVENTING HEALTH CARE FRAUD

     SEC. 301. INJUNCTIVE AUTHORITY RELATING TO FALSE CLAIMS AND 
                   ILLEGAL KICKBACK SCHEMES INVOLVING FEDERAL 
                   HEALTH CARE PROGRAMS.

       (a) In General.--Section 1345(a) of title 18, United States 
     Code, is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (B), by striking ``, or'' and inserting 
     a semicolon;
       (B) in subparagraph (C), by striking the period at the end 
     and inserting ``; or''; and
       (C) by adding at the end the following:
       ``(D) committing or about to commit an offense under 
     section 1128B of the Social Security Act (42 U.S.C. 1320a-
     7b);''; and
       (2) in paragraph (2), by inserting ``a violation of 
     paragraph (1)(D),'' before ``a banking''.
       (b) Civil Actions.--
       (1) In general.--Section 1128B of the Social Security Act 
     (42 U.S.C. 1320a-7b) is amended by adding at the end the 
     following:
       ``(g) Civil Actions.--
       ``(1) In general.--The Attorney General may bring an action 
     in the appropriate district court of the United States to 
     impose upon any person who carries out any activity in 
     violation of this section with respect to a Federal health 
     care program a civil penalty of not more than $50,000 for 
     each such violation, or damages of 3 times the total 
     remuneration offered, paid, solicited, or received, whichever 
     is greater.
       ``(2) Existence of violation.--A violation exists under 
     paragraph (1) if 1 or more purposes of the remuneration is 
     unlawful, and the damages shall be the full amount of such 
     remuneration.
       ``(3) Procedures.--An action under paragraph (1) shall be 
     governed by--
       ``(A) the procedures with regard to subpoenas, statutes of 
     limitations, standards of proof, and collateral estoppel set 
     forth in section 3731 of title 31, United States Code; and
       ``(B) the Federal Rules of Civil Procedure.
       ``(4) No effect on other remedies.--Nothing in this section 
     may be construed to affect the availability of any other 
     criminal or civil remedy.
       ``(h) Injunctive Relief.--The Attorney General may commence 
     a civil action in an appropriate district court of the United 
     States to enjoin a violation of this section, as provided in 
     section 1345 of title 18, United States Code.''.
       (2) Conforming amendment.--The heading of section 1128B of 
     the Social Security Act (42 U.S.C. 1320a-7b) is amended by 
     inserting ``AND CIVIL'' after ``CRIMINAL''.

     SEC. 302. AUTHORIZED INVESTIGATIVE DEMAND PROCEDURES.

       Section 3486 of title 18, United States Code, is amended--
       (1) in subsection (a), by inserting ``, or any allegation 
     of fraud or false claims (whether criminal or civil) in 
     connection with a Federal health care program (as defined in 
     section 1128B(f) of the Social Security Act (42 U.S.C. 1320a-
     7b(f))),'' after ``Federal health care offense'' each place 
     it appears; and
       (2) by adding at the end the following:
       ``(f) Privacy Protection.--
       ``(1) In general.--Except as provided in paragraph (2), any 
     record (including any book, paper, document, electronic 
     medium, or other object or tangible thing) produced pursuant 
     to a subpoena issued under this section that contains 
     personally identifiable health information may not be 
     disclosed to any person, except pursuant to a court order 
     under subsection (e)(1).
       ``(2) Exceptions.--A record described in paragraph (1) may 
     be disclosed--
       ``(A) to an attorney for the Government for use in the 
     performance of the official duty of the attorney (including 
     presentation to a Federal grand jury);
       ``(B) to government personnel (including personnel of a 
     State or subdivision of a State) as are determined to be 
     necessary by an attorney for the Government to assist an 
     attorney for the Government in the performance of the 
     official duty of that attorney to enforce Federal criminal 
     law;
       ``(C) as directed by a court preliminarily to, or in 
     connection with, a judicial proceeding;
       ``(D) as permitted by a court at the request of a defendant 
     in an administrative, civil, or criminal action brought by 
     the United States, upon a showing that grounds may exist for 
     a motion to exclude evidence obtained under this section; or
       ``(E) at the request of an attorney for the Government, 
     upon a showing that such matters may disclose a violation of 
     State criminal law, to an appropriate official of a State or 
     subdivision of a State for the purpose of enforcing such law.
       ``(3) Manner of court ordered disclosures.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     if a court orders the disclosure of any record described in 
     paragraph (1), the disclosure--
       ``(i) shall be made in such manner, at such time, and under 
     such conditions as the court may direct; and
       ``(ii) shall be undertaken in a manner that preserves the 
     confidentiality and privacy of individuals who are the 
     subject of the record.
       ``(B) Exception.--If disclosure is required by the nature 
     of the proceedings, the attorney for the Government shall 
     request that the presiding judicial or administrative officer 
     enter an order limiting the disclosure of the record to the 
     maximum extent practicable, including redacting the 
     personally identifiable health information from publicly 
     disclosed or filed pleadings or records.
       ``(4) Destruction of records.--Any record described in 
     paragraph (1), and all copies of that record, in whatever 
     form (including electronic), shall be destroyed not later 
     than 90 days after the date on which the record is produced, 
     unless otherwise ordered by a

[[Page S8158]]

     court of competent jurisdiction, upon a showing of good 
     cause.
       ``(5) Effect of violation.--Any person who knowingly fails 
     to comply with this subsection may be punished as in contempt 
     of court.
       ``(g) Personally Identifiable Health Information Defined.--
     In this section, the term `personally identifiable health 
     information' means any information, including genetic 
     information, demographic information, and tissue samples 
     collected from an individual, whether oral or recorded in any 
     form or medium, that--
       ``(1) relates to the past, present, or future physical or 
     mental health or condition of an individual, the provision of 
     health care to an individual, or the past, present, or future 
     payment for the provision of health care to an individual; 
     and
       ``(2) either--
       ``(A) identifies an individual; or
       ``(B) with respect to which there is a reasonable basis to 
     believe that the information can be used to identify an 
     individual.''.

     SEC. 303. EXTENDING ANTIFRAUD SAFEGUARDS TO THE FEDERAL 
                   EMPLOYEE HEALTH BENEFITS PROGRAM.

       Section 1128B(f)(1) of the Social Security Act (42 U.S.C. 
     1320a-7b(f)(1)) is amended by striking ``(other than the 
     health insurance program under chapter 89 of title 5, United 
     States Code)''.

     SEC. 304. GRAND JURY DISCLOSURE.

       Section 3322 of title 18, United States Code, is amended--
       (1) by redesignating subsections (c) and (d) as subsections 
     (d) and (e), respectively; and
       (2) by inserting after subsection (b) the following:
       ``(c) Grand Jury Disclosure.--Subject to section 3486(f), 
     upon ex parte motion of an attorney for the Government 
     showing that a disclosure in accordance with that subsection 
     would be of assistance to enforce any provision of Federal 
     law, a court may direct the disclosure of any matter 
     occurring before a grand jury during an investigation of a 
     Federal health care offense (as defined in section 24(a) of 
     this title) to an attorney for the Government to use in any 
     investigation or civil proceeding relating to fraud or false 
     claims in connection with a Federal health care program (as 
     defined in section 1128B(f) of the Social Security Act (42 
     U.S.C. 1320a-7b(f))).''.

     SEC. 305. INCREASING THE EFFECTIVENESS OF CIVIL INVESTIGATIVE 
                   DEMANDS IN FALSE CLAIMS INVESTIGATIONS.

       Section 3733 of title 31, United States Code, is amended--
       (1) in subsection (a)(1), in the second sentence, by 
     inserting ``, except to the Deputy Attorney General or to an 
     Assistant Attorney General'' before the period at the end; 
     and
       (2) in subsection (i)(2)(C), by adding at the end the 
     following: ``Disclosure of information to a person who brings 
     a civil action under section 3730, or the counsel of that 
     person, shall be allowed only upon application to a United 
     States district court showing that such disclosure would 
     assist the Department of Justice in carrying out its 
     statutory responsibilities.''.

            TITLE IV--PROTECTING RESIDENTS OF NURSING HOMES

     SEC. 401. SHORT TITLE.

       This title may be cited as the ``Nursing Home Resident 
     Protection Act of 2002''.

     SEC. 402. NURSING HOME RESIDENT PROTECTION.

       (a) Protection of Residents in Nursing Homes and Other 
     Residential Health Care Facilities.--Chapter 63 of title 18, 
     United States Code, is amended by adding at the end the 
     following:

     ``Sec. 1352. Pattern of violations resulting in harm to 
       residents of nursing homes and related facilities

       ``(a) Definitions.--In this section:
       ``(1) Entity.--The term `entity' means--
       ``(A) any residential health care facility (including 
     facilities that do not exclusively provide residential health 
     care services);
       ``(B) any entity that manages a residential health care 
     facility; or
       ``(C) any entity that owns, directly or indirectly, a 
     controlling interest or a 50 percent or greater interest in 1 
     or more residential health care facilities including States, 
     localities, and political subdivisions thereof.
       ``(2) Federal health care program.--The term `Federal 
     health care program' has the same meaning given that term in 
     section 1128B(f) of the Social Security Act.
       ``(3) Pattern of violations.--The term `pattern of 
     violations' means multiple violations of a single Federal or 
     State law, regulation, or rule or single violations of 
     multiple Federal or State laws, regulations, or rules, that 
     are widespread, systemic, repeated, similar in nature, or 
     result from a policy or practice.
       ``(4) Residential health care facility.--The term 
     `residential health care facility' means any facility 
     (including any facility that does not exclusively provide 
     residential health care services), including skilled and 
     unskilled nursing facilities and mental health and mental 
     retardation facilities, that--
       ``(A) receives Federal funds, directly from the Federal 
     Government or indirectly from a third party on contract with 
     or receiving a grant or other monies from the Federal 
     Government, to provide health care; or
       ``(B) provides health care services in a residential 
     setting and, in any calendar year in which a violation 
     occurs, is the recipient of benefits or payments in excess of 
     $10,000 from a Federal health care program.
       ``(5) State.--The term `State' means each of the several 
     States of the United States, the District of Columbia, and 
     any commonwealth, territory, or possession of the United 
     States.
       ``(b) Prohibition and Penalties.--Whoever knowingly and 
     willfully engages in a pattern of violations that affects the 
     health, safety, or care of individuals residing in a 
     residential health care facility or facilities, and that 
     results in significant physical or mental harm to 1 or more 
     of such residents, shall be punished as provided in section 
     1347, except that any organization shall be fined not more 
     than $2,000,000 per residential health care facility.
       ``(c) Civil Provisions.--
       ``(1) In general.--The Attorney General may bring an action 
     in a district court of the United States to impose on any 
     individual or entity that engages in a pattern of violations 
     that affects the health, safety, or care of individuals 
     residing in a residential health care facility, and that 
     results in physical or mental harm to 1 or more such 
     residents--
       ``(A) a civil penalty; or
       ``(B) in the case of--
       ``(i) an individual (other than an owner, operator, 
     officer, or manager of such a residential health care 
     facility), not more than $10,000;
       ``(ii) an individual who is an owner, operator, officer, or 
     manager of such a residential health care facility, not more 
     than $100,000 for each separate facility involved in the 
     pattern of violations under this section;
       ``(iii) a residential health care facility, not more than 
     $1,000,000 for each pattern of violations; or
       ``(iv) an entity, not more than $1,000,000 for each 
     separate residential health care facility involved in the 
     pattern of violations owned or managed by that entity.
       ``(2) Other appropriate relief.--If the Attorney General 
     has reason to believe that an individual or entity is 
     engaging in or is about to engage in a pattern of violations 
     that would affect the health, safety, or care of individuals 
     residing in a residential health care facility, and that 
     results in or has the potential to result in physical or 
     mental harm to 1 or more such residents, the Attorney General 
     may petition an appropriate district court of the United 
     States for appropriate equitable and declaratory relief to 
     eliminate the pattern of violations.
       ``(3) Procedures.--In any action under this subsection--
       ``(A) a subpoena requiring the attendance of a witness at a 
     trial or hearing may be served at any place in the United 
     States;
       ``(B) the action may not be brought more than 6 years after 
     the date on which the violation occurred;
       ``(C) the United States shall be required to prove each 
     charge by a preponderance of the evidence;
       ``(D) the civil investigative demand procedures set forth 
     in the Antitrust Civil Process Act (15 U.S.C. 1311 et seq.) 
     and regulations promulgated pursuant to that Act shall apply 
     to any investigation; and
       ``(E) the filing or resolution of a matter shall not 
     preclude any other remedy that is available to the United 
     States or any other person.
       ``(d) Prohibition Against Retaliation.--Any person who is 
     the subject of retaliation, either directly or indirectly, 
     for reporting a condition that may constitute grounds for 
     relief under this section may bring an action in an 
     appropriate district court of the United States for damages, 
     attorneys' fees, and other relief.''.
       (b) Authorized Investigative Demand Procedures.--Section 
     3486(a)(1) of title 18, United States Code, as amended by 
     section 302 of this Act, is amended by inserting ``, act or 
     activity involving section 1352 of this title'' after 
     ``Federal health care offense''.
       (c) Conforming Amendment.--The analysis for chapter 63 of 
     title 18, United States Code, is amended by adding at the end 
     the following:

``1352. Pattern of violations resulting in harm to residents of nursing 
              homes and related facilities.''.

        TITLE V--PROTECTING THE RIGHTS OF ELDERLY CRIME VICTIMS

     SEC. 501. USE OF FORFEITED FUNDS TO PAY RESTITUTION TO CRIME 
                   VICTIMS AND REGULATORY AGENCIES.

       Section 981(e) of title 18, United States Code, is 
     amended--
       (1) in each of paragraphs (3), (4), and (5), by striking 
     ``in the case of property referred to in subsection 
     (a)(1)(C),'' and inserting ``in the case of property 
     forfeited in connection with an offense resulting in a 
     pecuniary loss to a financial institution or regulatory 
     agency,''; and
       (2) in paragraph (7), by striking ``In the case of property 
     referred to in subsection (a)(1)(D)'' and inserting ``in the 
     case of property forfeited in connection with an offense 
     relating to the sale of assets acquired or held by any 
     Federal financial institution or regulatory agency, or person 
     appointed by such agency, as receiver, conservator, or 
     liquidating agent for a financial institution''.

     SEC. 502. VICTIM RESTITUTION.

       Section 413 of the Controlled Substances Act (21 U.S.C. 
     853) is amended by adding at the end the following:
       ``(r) Victim Restitution.--
       ``(1) Satisfaction of order of restitution.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     a defendant may not use property subject to forfeiture under 
     this section to satisfy an order of restitution.

[[Page S8159]]

       ``(B) Exception.--If there are 1 or more identifiable 
     victims entitled to restitution from a defendant, and the 
     defendant has no assets other than the property subject to 
     forfeiture with which to pay restitution to the victim or 
     victims, the attorney for the Government may move to dismiss 
     a forfeiture allegation against the defendant before entry of 
     a judgment of forfeiture in order to allow the property to be 
     used by the defendant to pay restitution in whatever manner 
     the court determines to be appropriate if the court grants 
     the motion. In granting a motion under this subparagraph, the 
     court shall include a provision ensuring that costs 
     associated with the identification, seizure, management, and 
     disposition of the property are recovered by the United 
     States.
       ``(2) Restoration of forfeited property.--
       ``(A) In general.--If an order of forfeiture is entered 
     pursuant to this section and the defendant has no assets 
     other than the forfeited property to pay restitution to 1 or 
     more identifiable victims who are entitled to restitution, 
     the Government shall restore the forfeited property to the 
     victims pursuant to subsection (i)(1) once the ancillary 
     proceeding under subsection (n) has been completed and the 
     costs of the forfeiture action have been deducted.
       ``(B) Distribution of property.--On a motion of the 
     attorney for the Government, the court may enter any order 
     necessary to facilitate the distribution of any property 
     restored under this paragraph.
       ``(3) Victim defined.--In this subsection, the term 
     `victim'--
       ``(A) means a person other than a person with a legal 
     right, title, or interest in the forfeited property 
     sufficient to satisfy the standing requirements of subsection 
     (n)(2) who may be entitled to restitution from the forfeited 
     funds pursuant to section 9.8 of part 9 of title 28, Code of 
     Federal Regulations (or any successor to that regulation); 
     and
       ``(B) includes any person who is the victim of the offense 
     giving rise to the forfeiture, or of any offense that was 
     part of the same scheme, conspiracy, or pattern of criminal 
     activity, including, in the case of a money laundering 
     offense, any offense constituting the underlying specified 
     unlawful activity.''.

     SEC. 503. BANKRUPTCY PROCEEDINGS NOT USED TO SHIELD ILLEGAL 
                   GAINS FROM FALSE CLAIMS.

       (a) Certain Actions Not Stayed by Bankruptcy Proceedings.--
       (1) In general.--Notwithstanding any other provision of 
     law, the commencement or continuation of an action under 
     section 3729 of title 31, United States Code, does not 
     operate as a stay under section 105(a) or 362(a)(1) of title 
     11, United States Code.
       (2) Conforming amendment.--Section 362(b) of title 11, 
     United States Code, is amended--
       (A) in paragraph (17), by striking ``or'' at the end;
       (B) in paragraph (18), by striking the period at the end 
     and inserting ``; or''; and
       (C) by adding at the end the following:
       ``(19) the commencement or continuation of an action under 
     section 3729 of title 31.''.
       (b) Certain Debts Not Dischargeable in Bankruptcy.--Section 
     523 of title 11, United States Code, is amended by adding at 
     the end the following:
       ``(f) A discharge under section 727, 1141, 1228(a), 
     1228(b), or 1328(b) does not discharge a debtor from a debt 
     owed for violating section 3729 of title 31.''.
       (c) Repayment of Certain Debts Considered Final.--
       (1) In general.--Chapter 1 of title 11, United States Code, 
     is amended by adding at the end the following:

     ``Sec. 111. False claims

       ``No transfer on account of a debt owed to the United 
     States for violating section 3729 of title 31, or under a 
     compromise order or other agreement resolving such a debt may 
     be avoided under section 544, 545, 547, 548, 549, 553(b), or 
     742(a).''.
       (2) Conforming amendment.--The analysis for chapter 1 of 
     title 11, United States Code, is amended by adding at the end 
     the following:

``111. False claims.''.

     SEC. 504. FORFEITURE FOR RETIREMENT OFFENSES.

       (a) Criminal Forfeiture.--Section 982(a) of title 18, 
     United States Code, is amended by adding at the end the 
     following:
       ``(9) Criminal Forfeiture.--
       ``(A) In general.--The court, in imposing a sentence on a 
     person convicted of a retirement offense, shall order the 
     person to forfeit property, real or personal, that 
     constitutes or that is derived, directly or indirectly, from 
     proceeds traceable to the commission of the offense.
       ``(B) Retirement offense defined.--In this paragraph, if a 
     violation, conspiracy, or solicitation relates to a 
     retirement arrangement (as defined in section 1351 of title 
     18, United States Code), the term `retirement offense' means 
     a violation of--
       ``(i) section 664, 1001, 1027, 1341, 1343, 1351, 1951, 
     1952, or 1954 of title 18, United States Code; or
       ``(ii) section 411, 501, or 511 of the Employee Retirement 
     Income Security Act of 1974 (29 U.S.C. 1111, 1131, 1141).''.
       (b) Civil Forfeiture.--Section 981(a)(1) of title 18, 
     United States Code, is amended by adding at the end the 
     following:
       ``(I) Any property, real or personal, that constitutes or 
     is derived, directly or indirectly, from proceeds traceable 
     to the commission of, criminal conspiracy to violate, or 
     solicitation to commit a crime of violence involving, a 
     retirement offense (as defined in section 982(a)(9)(B)).''.
                                 ______
                                 
      By Mr. DOMENICI:
  S. 1287. A bill to amend section 502(a)(5) of the Higher Education 
Act of 1965 regarding the definition of a Hispanic-serving institution; 
to the Committee on Health, Education, Labor, and Pensions.
  Mr. DOMENICI. Madam President, I rise today to introduce a bill that 
will amend Title V of the Higher Education Act. Specifically, this bill 
will eliminate the ``50 percent'' low-income assurance constraint 
currently required for Hispanic Serving Institutions to be eligible for 
grants under Title V of the Higher Education Act.
  Title V of the Higher Education Act is the primary vehicle used to 
target urgently needed funds to Hispanic Serving Institutions so that 
they can strengthen and expand their institutional capacity. Grants 
under this section can be used by higher education institutions to 
improve academic quality, institutional management, and financial 
stability. These grants are essential to institutions that provide and 
increase the number of educational opportunities available to Hispanic 
students.
  Under current guidelines, in order to qualify for a grant under Title 
V, an institution must have at least 25 percent full time, Hispanic 
undergraduate student enrollment, and not less than 50 percent of its 
Hispanic student population must be low income. Title V grants are 
awarded for 5 years, with a minimum two year wait out period after the 
termination of a grant period before eligibility to apply for another 
grant. During fiscal year 2002, 191 institutions were awarded grants.
  Title V's current ``50 percent'' low-income assurance requirement is 
an unnecessary bureaucratic regulation that constrains Hispanic Serving 
Institutions abilities to implement programs designed to provide long 
range solutions to Hispanic higher education challenges. Currently, 
there are no government authorized means to collect student financial 
data, and, although some information can be extrapolated from student 
financial aid forms, it is not enough information to complete the Title 
V forms.
  The bill I am introducing today will improve the HSI eligibility 
requirements by allowing applicants for Title V funding to satisfy the 
50 percent low-income Hispanic student population criterion with 
appropriate evidence of student eligibility for Title IV, need-based, 
aid. The revised Title V section will retain the requirement that to be 
eligible for title V funds, an institution must have an enrollment of 
needy students. However, rather than conditioning grant qualification 
upon the cumbersome requirement that institutions prove 50 percent of 
their Hispanic students are low income, it will allow institutions to 
qualify for Title V money if 50 percent of the students are receiving 
need-based assistance under title IV or a substantial percentage of the 
students are receiving Pell Grants.
  The Higher Education Act of 1965 was signed into law for the purpose 
of increasing access to higher education for all citizens of the United 
States and of strengthening the capacity of higher education 
institutions to better serve their communities. The reauthorization of 
the Higher Education Act during the 108th Congress presents a powerful 
opportunity for the nation to address the higher education needs of the 
nation's Hispanic-Serving Institutions, which serve the largest 
concentrations of Hispanic higher education students in the United 
States.
  Hispanic Serving Institutions provide the quality education essential 
to full participation in today's society. Many students in my home 
state of New Mexico have benefited from the academic excellence that 
Hispanic Serving Institutions seek to provide. Title V grants are 
intended to provide assistance to these less advantaged, developing 
institutions. However, by convoluting the application process, Congress 
is preventing these institutions from applying for grants and 
obstructing their development.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

[[Page S8160]]

                                S. 1287

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

     SECTION 1. DEFINITION OF A HISPANIC-SERVING INSTITUTION.

       Section 502(a)(5) of the Higher Education Act of 1965 (20 
     U.S.C. 1101a(a)(5)) is amended--
       (1) in subparagraph (A), by inserting ``and'' after the 
     semicolon;
       (2) in subparagraph (B), by striking ``; and'' and 
     inserting a period; and
       (3) by striking subparagraph (C).
                                 ______
                                 
      By Mr. CHAMBLISS (for himself and Mr. Miller):
  S. 1288. A bill to amend title XVIII of the Social Security Act to 
exclude brachytherapy devices from the prospective payment system for 
outpatient hospital services under the medicare program; to the 
Committee on Finance.
  Mr. CHAMBLISS. Madam President, I rise today to introduce 
legislation, along with my colleague Senator Miller of Georgia, that 
would amend the Medicare portion of the Social Security Act to exclude 
brachytherapy devices from the prospective payment system for 
outpatient hospital services under the Medicare Program. Currently, the 
number of devices reimbursed by Medicare is one set number and non-
specific to the prostate cancer patient.
  Prostate cancer accounts for 43 percent of all cancers found in men--
more than triple the rate of lung cancer. The American Cancer Society 
estimates that nearly 221,000 men in the United States will be 
diagnosed with prostate cancer in 2003 and approximately 27,000 of 
these men will die as a result. The American Cancer Society also 
estimates that about 5,700 men diagnosed will be from Georgia and 
nearly 700 of them may die. This legislation will help some of these 
men fight and survive this indiscriminate killer. Over 130,000 men and 
their sons nationwide have been treated with brachytherapy Theraseeds 
to date.
  Brachytherapy is an important form of radiation treatment for 
prostate cancer in which radioactive ``seeds'' are implanted into the 
patient. While there are several ways to treat prostate cancer, 
patients need the freedom to choose the treatment that best suits them 
and their situation. Tremendous variations exist that may effect the 
clinical requirements for cancer patients using brachytherapy 
theraseeds, including variations in the types of radioactive isotopes, 
as well as the number and radioactive intensity of the seeds. The 
brachytherapy community indicates that these variations result in 
considerable differences in total brachytherapy costs among patients, 
varying from several hundred dollars to over $10,000 per patient. 
Prostate brachytherapy is different from many other clinical 
interventions because of the dramatic variability in the type, number 
and radioactivity of brachytherapy seeds needed to treat each patient. 
This variability is due to differences in the clinical presentation 
from patient to patient, including the type, staging, and size of a 
patient's cancer. This variability also results in a broad range of 
costs per patient. This legislation will allow a more fair 
reimbursement for physicians who are using brachytherapy to treat 
prostate cancer patients. This bill will also allow Medicare patients 
to receive another type of therapy when making decisions and dealing 
with the reality of being diagnosed with prostate cancer.
  I encourage all of my colleagues to support this piece of legislation 
so that men suffering with prostate cancer will have more coverage 
under Medicare should they choose brachytherapy for their treatment.

                          ____________________