[Congressional Record Volume 152, Number 135 (Friday, December 8, 2006)]
[House]
[Pages H9160-H9182]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
POSTAL ACCOUNTABILITY AND ENHANCEMENT ACT
Mr. TOM DAVIS of Virginia. Mr. Speaker, I move to suspend the rules
and pass the bill (H.R. 6407) to reform the postal laws of the United
States, as amended.
The Clerk read as follows:
H.R. 6407
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.
TITLE IV--PROVISIONS RELATING TO FAIR COMPETITION
Sec. 401. Postal Service Competitive Products Fund.
Sec. 402. Assumed Federal income tax on competitive products income.
Sec. 403. Unfair competition prohibited.
Sec. 404. Suits by and against the Postal Service.
Sec. 405. International postal arrangements.
TITLE V--GENERAL PROVISIONS
Sec. 501. Qualification and term requirements for Governors.
Sec. 502. Obligations.
Sec. 503. Private carriage of letters.
Sec. 504. Rulemaking authority.
Sec. 505. Noninterference with collective bargaining agreements.
Sec. 506. Bonus authority.
TITLE VI--ENHANCED REGULATORY COMMISSION
Sec. 601. Reorganization and modification of certain provisions
relating to the Postal Regulatory Commission.
Sec. 602. Authority for Postal Regulatory Commission to issue
subpoenas.
Sec. 603. Authorization of appropriations from the Postal Service Fund.
Sec. 604. Redesignation of the Postal Rate Commission.
Sec. 605. Inspector General of the Postal Regulatory Commission.
TITLE VII--EVALUATIONS
Sec. 701. Assessments of ratemaking, classification, and other
provisions.
Sec. 702. Report on universal postal service and the postal monopoly.
Sec. 703. Study on equal application of laws to competitive products.
Sec. 704. Report on postal workplace safety and workplace-related
injuries.
Sec. 705. Study on recycled paper.
Sec. 706. Greater diversity in Postal Service executive and
administrative schedule management positions.
Sec. 707. Contracts with women, minorities, and small businesses.
Sec. 708. Rates for periodicals.
Sec. 709. Assessment of certain rate deficiencies.
[[Page H9161]]
Sec. 710. Assessment of future business model of the Postal Service.
Sec. 711. Provisions relating to cooperative mailings.
Sec. 712. Definition.
TITLE VIII--POSTAL SERVICE RETIREMENT AND HEALTH BENEFITS FUNDING
Sec. 801. Short title.
Sec. 802. Civil Service Retirement System.
Sec. 803. Health insurance.
Sec. 804. Repeal of disposition of savings provision.
Sec. 805. Effective dates.
TITLE IX--COMPENSATION FOR WORK INJURIES
Sec. 901. Temporary disability; continuation of pay.
TITLE X--MISCELLANEOUS
Sec. 1001. Employment of postal police officers.
Sec. 1002. Obsolete provisions.
Sec. 1003. Reduced rates.
Sec. 1004. Sense of Congress regarding Postal Service purchasing
reform.
Sec. 1005. Contracts for transportation of mail by air.
Sec. 1006. Date of postmark to be treated as date of appeal in
connection with the closing or consolidation of post
offices.
Sec. 1007. Provisions relating to benefits under chapter 81 of title 5,
United States Code, for officers and employees of the
former Post Office Department.
Sec. 1008. Hazardous matter.
Sec. 1009. ZIP codes and retail hours.
Sec. 1010. 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 delivery of letters,
printed matter, or mailable packages, including acceptance,
collection, sorting, transportation, or other functions
ancillary thereto;
``(6) `product' means a postal service with a distinct cost
or market characteristic for which a rate or rates are, or
may reasonably be, 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)(1) In this subsection, the term ``nonpostal service''
means any service that is not a postal service defined under
section 102(5).
``(2) Nothing in this section shall be considered to permit
or require that the Postal Service provide any nonpostal
service, except that the Postal Service may provide nonpostal
services which were offered as of January 1, 2006, as
provided under this subsection.
``(3) Not later than 2 years after the date of enactment of
the Postal Accountability and Enhancement Act, the Postal
Regulatory Commission shall review each nonpostal service
offered by the Postal Service on the date of enactment of
that Act and determine whether that nonpostal service shall
continue, taking into account--
``(A) the public need for the service; and
``(B) the ability of the private sector to meet the public
need for the service.
``(4) Any nonpostal service not determined to be continued
by the Postal Regulatory Commission under paragraph (3) shall
terminate.
``(5) If the Postal Regulatory Commission authorizes the
Postal Service to continue a nonpostal service under this
subsection, the Postal Regulatory Commission shall designate
whether the service shall be regulated under this title as a
market dominant product, a competitive product, or an
experimental product.''.
(b) Conforming Amendments.--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)''.
TITLE II--MODERN RATE REGULATION
SEC. 201. PROVISIONS RELATING TO MARKET-DOMINANT PRODUCTS.
(a) In General.--Chapter 36 of title 39, United States
Code, is amended by striking sections 3621 and 3622 and
inserting the following:
``Sec. 3621. Applicability; definitions
``(a) Applicability.--This subchapter shall apply with
respect to--
``(1) first-class mail letters and sealed parcels;
``(2) first-class mail cards;
``(3) periodicals;
``(4) standard mail;
``(5) single-piece parcel post;
``(6) media mail;
``(7) bound printed matter;
``(8) library mail;
``(9) special services; and
``(10) single-piece international mail,
subject to any changes the Postal Regulatory Commission may
make under section 3642.
``(b) Rule of Construction.--Mail matter referred to in
subsection (a) shall, for purposes of this subchapter, be
considered to have the meaning given to such mail matter
under the mail classification schedule.
``Sec. 3622. Modern rate regulation
``(a) Authority Generally.--The Postal Regulatory
Commission shall, within 18 months after the date of
enactment of this section, by regulation establish (and may
from time to time thereafter by regulation revise) a modern
system for regulating rates and classes for market-dominant
products.
``(b) Objectives.--Such system shall be designed to achieve
the following objectives, each of which shall be applied in
conjunction with the others:
``(1) To maximize incentives to reduce costs and increase
efficiency.
``(2) To create predictability and stability in rates.
``(3) To maintain high quality service standards
established under section 3691.
``(4) To allow the Postal Service pricing flexibility.
``(5) To assure adequate revenues, including retained
earnings, to maintain financial stability.
``(6) To reduce the administrative burden and increase the
transparency of the ratemaking process.
``(7) To enhance mail security and deter terrorism.
``(8) To establish and maintain a just and reasonable
schedule for rates and classifications, however the objective
under this paragraph shall not be construed to prohibit the
Postal Service from making changes of unequal magnitude
within, between, or among classes of mail.
``(9) To allocate the total institutional costs of the
Postal Service appropriately between market-dominant and
competitive products.
``(c) Factors.--In establishing or revising such system,
the Postal Regulatory Commission shall take into account--
``(1) the value of the mail service actually provided each
class or type of mail service to both the sender and the
recipient, including but not limited to the collection, mode
of transportation, and priority of delivery;
``(2) the requirement that each class of mail or type of
mail service bear the direct and indirect postal costs
attributable to each class or type of mail service through
reliably identified causal relationships plus that portion of
all other costs of the Postal Service reasonably assignable
to such class or type;
``(3) the effect of rate increases upon the general public,
business mail users, and enterprises in the private sector of
the economy engaged in the delivery of mail matter other than
letters;
``(4) the available alternative means of sending and
receiving letters and other mail matter at reasonable costs;
``(5) the degree of preparation of mail for delivery into
the postal system performed by the mailer and its effect upon
reducing costs to the Postal Service;
``(6) simplicity of structure for the entire schedule and
simple, identifiable relationships between the rates or fees
charged the various classes of mail for postal services;
``(7) the importance of pricing flexibility to encourage
increased mail volume and operational efficiency;
``(8) the relative value to the people of the kinds of mail
matter entered into the postal system and the desirability
and justification for special classifications and services of
mail;
``(9) the importance of providing classifications with
extremely high degrees of reliability and speed of delivery
and of providing those that do not require high degrees of
reliability and speed of delivery;
``(10) the desirability of special classifications for both
postal users and the Postal Service in accordance with the
policies of this title, including agreements between the
Postal Service and postal users, when available on public and
reasonable terms to similarly situated mailers, that--
``(A) either--
``(i) improve the net financial position of the Postal
Service through reducing Postal Service costs or increasing
the overall contribution to the institutional costs of the
Postal Service; or
``(ii) enhance the performance of mail preparation,
processing, transportation, or other functions; and
``(B) do not cause unreasonable harm to the marketplace.
``(11) the educational, cultural, scientific, and
informational value to the recipient of mail matter;
``(12) the need for the Postal Service to increase its
efficiency and reduce its costs, including infrastructure
costs, to help maintain high quality, affordable postal
services;
(13) the value to the Postal Service and postal users of
promoting intelligent mail and of secure, sender-identified
mail; and
``(14) the policies of this title as well as such other
factors as the Commission determines appropriate.
[[Page H9162]]
``(d) Requirements.--
``(1) In general.--The system for regulating rates and
classes for market-dominant products shall--
``(A) include an annual limitation on the percentage
changes in rates to be set by the Postal Regulatory
Commission that will be equal to the change in the Consumer
Price Index for All Urban Consumers unadjusted for seasonal
variation over the most recent available 12-month period
preceding the date the Postal Service files notice of its
intention to increase rates;
``(B) establish a schedule whereby rates, when necessary
and appropriate, would change at regular intervals by
predictable amounts;
``(C) not later than 45 days before the implementation of
any adjustment in rates under this section, including
adjustments made under subsection (c)(10)--
``(i) require the Postal Service to provide public notice
of the adjustment;
``(ii) provide an opportunity for review by the Postal
Regulatory Commission;
``(iii) provide for the Postal Regulatory Commission to
notify the Postal Service of any noncompliance of the
adjustment with the limitation under subparagraph (A); and
``(iv) require the Postal Service to respond to the notice
provided under clause (iii) and describe the actions to be
taken to comply with the limitation under subparagraph (A);
``(D) establish procedures whereby the Postal Service may
adjust rates not in excess of the annual limitations under
subparagraph (A); and
``(E) notwithstanding any limitation set under
subparagraphs (A) and (C), and provided there is not
sufficient unused rate authority under paragraph (2)(C),
establish procedures whereby rates may be adjusted on an
expedited basis due to either extraordinary or exceptional
circumstances, provided that the Commission determines, after
notice and opportunity for a public hearing and comment, and
within 90 days after any request by the Postal Service, that
such adjustment is reasonable and equitable and 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.
``(2) Limitations.--
``(A) Classes of mail.--Except as provided under
subparagraph (C), the annual limitations under paragraph
(1)(A) shall apply to a class of mail, as defined in the
Domestic Mail Classification Schedule as in effect on the
date of enactment of the Postal Accountability and
Enhancement Act.
``(B) Rounding of rates and fees.--Nothing in this
subsection shall preclude the Postal Service from rounding
rates and fees to the nearest whole integer, if the effect of
such rounding does not cause the overall rate increase for
any class to exceed the Consumer Price Index for All Urban
Consumers.
``(C) Use of unused rate authority.--
``(i) Definition.--In this subparagraph, the term `unused
rate adjustment authority' means the difference between--
``(I) the maximum amount of a rate adjustment that the
Postal Service is authorized to make in any year subject to
the annual limitation under paragraph (1); and
``(II) the amount of the rate adjustment the Postal Service
actually makes in that year.
``(ii) Authority.--Subject to clause (iii), the Postal
Service may use any unused rate adjustment authority for any
of the 5 years following the year such authority occurred.
``(iii) Limitations.--In exercising the authority under
clause (ii) in any year, the Postal Service--
``(I) may use unused rate adjustment authority from more
than 1 year;
``(II) may use any part of the unused rate adjustment
authority from any year;
``(III) shall use the unused rate adjustment authority from
the earliest year such authority first occurred and then each
following year; and
``(IV) for any class or service, may not exceed the annual
limitation under paragraph (1) by more than 2 percentage
points.
``(3) Review.--Ten years after the date of enactment of the
Postal Accountability and Enhancement Act and as appropriate
thereafter, the Commission shall review the system for
regulating rates and classes for market-dominant products
established under this section to determine if the system is
achieving the objectives in subsection (b), taking into
account the factors in subsection (c). If the Commission
determines, after notice and opportunity for public comment,
that the system is not achieving the objectives in subsection
(b), taking into account the factors in subsection (c), the
Commission may, by regulation, make such modification or
adopt such alternative system for regulating rates and
classes for market-dominant products as necessary to achieve
the objectives.
``(e) Workshare Discounts.--
``(1) Definition.--In this subsection, the term `workshare
discount' refers to rate discounts provided to mailers for
the presorting, prebarcoding, handling, or transportation of
mail, as further defined by the Postal Regulatory Commission
under subsection (a).
``(2) Scope.--The Postal Regulatory Commission shall ensure
that such discounts do not exceed the cost that the Postal
Service avoids as a result of workshare activity, unless--
``(A) the discount is--
``(i) associated with a new postal service, a change to an
existing postal service, or with a new work share initiative
related to an existing postal service; and
``(ii) necessary to induce mailer behavior that furthers
the economically efficient operation of the Postal Service
and the portion of the discount in excess of the cost that
the Postal Service avoids as a result of the workshare
activity will be phased out over a limited period of time;
``(B) the amount of the discount above costs avoided--
``(i) is necessary to mitigate rate shock; and
``(ii) will be phased out over time;
``(C) the discount is provided in connection with
subclasses of mail consisting exclusively of mail matter of
educational, cultural, scientific, or informational value; or
``(D) reduction or elimination of the discount would impede
the efficient operation of the Postal Service.
``(3) Limitation.--Nothing in this subsection shall require
that a work share discount be reduced or eliminated if the
reduction or elimination of the discount would--
``(A) lead to a loss of volume in the affected category or
subclass of mail and reduce the aggregate contribution to the
institutional costs of the Postal Service from the category
or subclass subject to the discount below what it otherwise
would have been if the discount had not been reduced or
eliminated; or
``(B) result in a further increase in the rates paid by
mailers not able to take advantage of the discount.
``(4) Report.--Whenever the Postal Service establishes a
workshare discount rate, the Postal Service shall, at the
time it publishes the workshare discount rate, submit to the
Postal Regulatory Commission a detailed report that--
``(A) explains the Postal Service's reasons for
establishing the rate;
``(B) sets forth the data, economic analyses, and other
information relied on by the Postal Service to justify the
rate; and
``(C) certifies that the discount will not adversely affect
rates or services provided to users of postal services who do
not take advantage of the discount rate.
``(f) Transition Rule.--For the 1-year period beginning on
the date of enactment of this section, rates and classes for
market-dominant products shall remain subject to modification
in accordance with the provisions of this chapter and section
407, as such provisions were last in effect before the date
of enactment of this section. Proceedings initiated to
consider a request for a recommended decision filed by the
Postal Service during that 1-year period shall be completed
in accordance with subchapter II of chapter 36 of this title
and implementing regulations, as in effect before the date of
enactment of this section.''.
(b) Repealed Sections.--Sections 3623, 3624, 3625, and 3628
of title 39, United States Code, are repealed.
(c) Redesignation.--Chapter 36 of title 39, United States
Code (as in effect after the amendment made by section 601,
but before the amendment made by section 202) is amended by
striking the heading for subchapter II and inserting the
following:
``SUBCHAPTER I--PROVISIONS RELATING TO MARKET-DOMINANT PRODUCTS''.
SEC. 202. PROVISIONS RELATING TO COMPETITIVE PRODUCTS.
Chapter 36 of title 39, United States Code, is amended by
inserting after section 3629 the following:
``SUBCHAPTER II--PROVISIONS RELATING TO COMPETITIVE PRODUCTS
``Sec. 3631. Applicability; definitions and updates
``(a) Applicability.--This subchapter shall apply with
respect to--
``(1) priority mail;
``(2) expedited mail;
``(3) bulk parcel post;
``(4) bulk international mail; and
``(5) mailgrams;
subject to subsection (d) and any changes the Postal
Regulatory Commission may make under section 3642.
``(b) Definition.--For purposes of this subchapter, the
term `costs attributable', as used with respect to a product,
means the direct and indirect postal costs attributable to
such product through reliably identified causal
relationships.
``(c) Rule of Construction.--Mail matter referred to in
subsection (a) shall, for purposes of this subchapter, be
considered to have the meaning given to such mail matter
under the mail classification schedule.
``Sec. 3632. Action of the Governors
``(a) Authority To Establish Rates and Classes.--The
Governors, with the 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) Rates or classes of general applicability.--In the
case of rates or classes of general applicability in the
Nation as a whole or in any substantial region of the Nation,
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
[[Page H9163]]
the Federal Register at least 30 days before the effective
date of any new rates or classes.
``(3) Rates or classes not of general applicability.--In
the case of rates or classes not of general applicability in
the Nation as a whole or in any substantial region of the
Nation, the Governors shall cause each rate and class
decision under this section and the record of the proceedings
in connection with such decision to be filed with the Postal
Regulatory Commission by such date before the effective date
of any new rates or classes as the Governors consider
appropriate, but in no case less than 15 days.
``(4) Criteria.--As part of the regulations required under
section 3633, the Postal Regulatory Commission shall
establish criteria for determining when a rate or class
established under this subchapter is or is not of general
applicability in the Nation as a whole or in any substantial
region of the Nation.
``(c) Transition Rule.--Until regulations under section
3633 first take effect, rates and classes for competitive
products shall remain subject to modification in accordance
with the provisions of this chapter and section 407, as such
provisions were as last in effect before the date of
enactment of this section.
``Sec. 3633. Provisions applicable to rates for competitive
products
``(a) In General.--The Postal Regulatory Commission shall,
within 18 months after the date of enactment of this section,
promulgate (and may from time to time thereafter revise)
regulations to--
``(1) prohibit the subsidization of competitive products by
market-dominant products;
``(2) ensure that each competitive product covers its costs
attributable; and
``(3) ensure that all competitive products collectively
cover what the Commission determines to be an appropriate
share of the institutional costs of the Postal Service.
``(b) Review of Minimum Contribution.--Five years after the
date of enactment of this section, and every 5 years
thereafter, the Postal Regulatory Commission shall conduct a
review to determine whether the institutional costs
contribution requirement under subsection (a)(3) should be
retained in its current form, modified, or eliminated. In
making its determination, the Commission shall consider all
relevant circumstances, including the prevailing competitive
conditions in the market, and the degree to which any costs
are uniquely or disproportionately associated with any
competitive products.''.
SEC. 203. PROVISIONS RELATING TO EXPERIMENTAL AND NEW
PRODUCTS.
Subchapter III of chapter 36 of title 39, United States
Code, is amended to read as follows:
``SUBCHAPTER III--PROVISIONS RELATING TO EXPERIMENTAL AND NEW PRODUCTS
``Sec. 3641. Market tests of experimental products
``(a) Authority.--
``(1) In general.--The Postal Service may conduct market
tests of experimental products in accordance with this
section.
``(2) Provisions waived.--A product shall not, while it is
being tested under this section, be subject to the
requirements of sections 3622, 3633, or 3642, or regulations
promulgated under those sections.
``(b) Conditions.--A product may not be tested under this
section unless it satisfies each of the following:
``(1) Significantly different product.--The product is,
from the viewpoint of the mail users, significantly different
from all products offered by the Postal Service within the 2-
year period preceding the start of the test.
``(2) Market disruption.--The introduction or continued
offering of the product will not create an unfair or
otherwise inappropriate competitive advantage for the Postal
Service or any mailer, particularly in regard to small
business concerns (as defined under subsection (h)).
``(3) Correct categorization.--The Postal Service
identifies the product, for the purpose of a test under this
section, as either market-dominant or competitive, consistent
with the criteria under section 3642(b)(1). Costs and
revenues attributable to a product identified as competitive
shall be included in any determination under section 3633(3)
(relating to provisions applicable to competitive products
collectively). Any test that solely affects products
currently classified as competitive, or which provides
services ancillary to only competitive products, shall be
presumed to be in the competitive product category without
regard to whether a similar ancillary product exists for
market-dominant products.
``(c) Notice.--
``(1) In general.--At least 30 days before initiating a
market test under this section, the Postal Service shall file
with the Postal Regulatory Commission and publish in the
Federal Register a notice--
``(A) setting out the basis for the Postal Service's
determination that the market test is covered by this
section; and
``(B) describing the nature and scope of the market test.
``(2) Safeguards.--For a competitive experimental product,
the provisions of section 504(g) shall be available with
respect to any information required to be filed under
paragraph (1) to the same extent and in the same manner as in
the case of any matter described in section 504(g)(1).
Nothing in paragraph (1) shall be considered to permit or
require the publication of any information as to which
confidential treatment is accorded under the preceding
sentence (subject to the same exception as set forth in
section 504(g)(3)).
``(d) Duration.--
``(1) In general.--A market test of a product under this
section may be conducted over a period of not to exceed 24
months.
``(2) Extension authority.--If necessary in order to
determine the feasibility or desirability of a product being
tested under this section, the Postal Regulatory Commission
may, upon written application of the Postal Service (filed
not later than 60 days before the date as of which the
testing of such product would otherwise be scheduled to
terminate under paragraph (1)), extend the testing of such
product for not to exceed an additional 12 months.
``(e) Dollar-Amount Limitation.--
``(1) In general.--A product may only be tested under this
section if the total revenues that are anticipated, or in
fact received, by the Postal Service from such product do not
exceed $10,000,000 in any year, subject to paragraph (2) and
subsection (g). In carrying out the preceding sentence, the
Postal Regulatory Commission may limit the amount of revenues
the Postal Service may obtain from any particular geographic
market as necessary to prevent market disruption (as defined
under subsection (b)(2)).
``(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 1 or
more of the requirements of this section, it may order the
cancellation of the test involved or take such other action
as it considers appropriate. A determination under this
subsection shall be made in accordance with such procedures
as the Commission shall by regulation prescribe.
``(g) Adjustment for Inflation.--For purposes of each year
following the year in which occurs the deadline for the
Postal Service's first report to the Postal Regulatory
Commission under section 3652(a), each dollar amount
contained in this section shall be adjusted by the change in
the Consumer Price Index for such year (as determined under
regulations of the Commission).
``(h) Definition of a Small Business Concern.--The criteria
used in defining small business concerns or otherwise
categorizing business concerns as small business concerns
shall, for purposes of this section, be established by the
Postal Regulatory Commission in conformance with the
requirements of section 3 of the Small Business Act.
``(i) Effective Date.--Market tests under this subchapter
may be conducted in any year beginning with the first year in
which occurs the deadline for the Postal Service's first
report to the Postal Regulatory Commission under section
3652(a).
``Sec. 3642. New products and transfers of products between
the market-dominant and competitive categories of mail
``(a) In General.--Upon request of the Postal Service or
users of the mails, or upon its own initiative, the Postal
Regulatory Commission may change the list of market-dominant
products under section 3621 and the list of competitive
products under section 3631 by adding new products to the
lists, removing products from the lists, or transferring
products between the lists.
``(b) Criteria.--All determinations by the Postal
Regulatory Commission under subsection (a) shall be made in
accordance with the following criteria:
``(1) The market-dominant category of products shall
consist of each product in the sale of which the Postal
Service exercises sufficient market power that it can
effectively set the price of such product substantially above
costs, raise prices significantly, decrease quality, or
decrease output, without risk of losing a significant level
of 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;
[[Page H9164]]
``(B) the views of those who use the product involved on
the appropriateness of the proposed action; and
``(C) the likely impact of the proposed action on small
business concerns (within the meaning of section 3641(h)).
``(c) Transfers of Subclasses and Other Subordinate Units
Allowable.--Nothing in this title shall be considered to
prevent transfers under this section from being made by
reason of the fact that they would involve only some (but not
all) of the subclasses or other subordinate units of the
class of mail or type of postal service involved (without
regard to satisfaction of minimum quantity requirements
standing alone).
``(d) Notification and Publication Requirements.--
``(1) Notification requirement.--The Postal Service shall,
whenever it requests to add a product or transfer a product
to a different category, file with the Postal Regulatory
Commission and publish in the Federal Register a notice
setting out the basis for its determination that the product
satisfies the criteria under subsection (b) and, in the case
of a request to add a product or transfer a product to the
competitive category of mail, that the product meets the
regulations promulgated by the Postal Regulatory Commission
under section 3633. The provisions of section 504(g) shall be
available with respect to any information required to be
filed.
``(2) Publication requirement.--The Postal Regulatory
Commission shall, whenever it changes the list of products in
the market-dominant or competitive category of mail,
prescribe new lists of products. The revised lists shall
indicate how and when any previous lists (including the lists
under sections 3621 and 3631) are superseded, and shall be
published in the Federal Register.
``(e) Prohibition.--Except as provided in section 3641, no
product that involves the physical delivery of letters,
printed matter, or packages may be offered by the Postal
Service unless it has been assigned to the market-dominant or
competitive category of mail (as appropriate) either--
``(1) under this subchapter; or
``(2) by or under any other provision of law.''.
SEC. 204. REPORTING REQUIREMENTS AND RELATED PROVISIONS.
(a) Redesignation.--Chapter 36 of title 39, United States
Code (as in effect before the amendment made by subsection
(b)) is amended--
(1) by striking the heading for subchapter IV and inserting
the following:
``SUBCHAPTER V--POSTAL SERVICES, COMPLAINTS, AND JUDICIAL REVIEW''; and
(2) by striking the heading for subchapter V and inserting
the following:
``SUBCHAPTER VI--GENERAL''.
(b) Reports and Compliance.--Chapter 36 of title 39, United
States Code, is amended by inserting after subchapter III the
following:
``SUBCHAPTER IV--REPORTING REQUIREMENTS AND RELATED PROVISIONS
``Sec. 3651. Annual reports by the Commission
``(a) In General.--The Postal Regulatory Commission shall
submit an annual report to the President and the Congress
concerning the operations of the Commission under this title,
including the extent to which regulations are achieving the
objectives under sections 3622 and 3633, respectively.
``(b) Additional Information.--
``(1) In general.--In addition to the information required
under subsection (a), each report under this section shall
also include, with respect to the period covered by such
report, an estimate of the costs incurred by the Postal
Service in providing--
``(A) postal services to areas of the Nation where, in the
judgment of the Postal Regulatory Commission, the Postal
Service either would not provide services at all or would not
provide such services in accordance with the requirements of
this title if the Postal Service were not required to provide
prompt, reliable, and efficient services to patrons in all
areas and all communities, including as required under the
first sentence of section 101(b);
``(B) free or reduced rates for postal services as required
by this title; and
``(C) other public services or activities which, in the
judgment of the Postal Regulatory Commission, would not
otherwise have been provided by the Postal Service but for
the requirements of law.
``(2) Basis for estimates.--The Commission shall detail the
basis for its estimates and the statutory requirements giving
rise to the costs identified in each report under this
section.
``(c) Information From Postal Service.--The Postal Service
shall provide the Postal Regulatory Commission with such
information as may, in the judgment of the Commission, be
necessary in order for the Commission to prepare its reports
under this section.
``Sec. 3652. Annual reports to the Commission
``(a) Costs, Revenues, Rates, and Service.--Except as
provided in subsection (c), the Postal Service shall, no
later than 90 days after the end of each year, prepare and
submit to the Postal Regulatory Commission a report (together
with such nonpublic annex to the report as the Commission may
require under subsection (e))--
``(1) which shall analyze costs, revenues, rates, and
quality of service, using such methodologies as the
Commission shall by regulation prescribe, and in sufficient
detail to demonstrate that all products during such year
complied with all applicable requirements of this title; and
``(2) which shall, for each market-dominant product
provided in such year, provide--
``(A) product information, including mail volumes; and
``(B) measures of the quality of 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.
The Inspector General shall regularly audit the data
collection systems and procedures utilized in collecting
information and preparing such report (including any annex
thereto and the information required under subsection (b)).
The results of any such audit shall be submitted to the
Postal Service and the Postal Regulatory Commission.
``(b) Information Relating to Workshare Discounts.--The
Postal Service shall include, in each report under subsection
(a), the following information with respect to each market-
dominant product for which a workshare discount was in effect
during the period covered by such report:
``(1) The per-item cost avoided by the Postal Service by
virtue of such discount.
``(2) The percentage of such per-item cost avoided that the
per-item workshare discount represents.
``(3) The per-item contribution made to institutional
costs.
``(c) Market Tests.--In carrying out subsections (a) and
(b) with respect to experimental products offered through
market tests under section 3641 in a year, the Postal Service
shall--
``(1) report data on the costs, revenues, and quality of
service by market test, which may be reported in summary
form; and
``(2) report such data as the Postal Regulatory Commission
requires.
``(d) Supporting Matter.--The Postal Regulatory Commission
shall have access, in accordance with such regulations as the
Commission shall prescribe, to the working papers and any
other supporting matter of the Postal Service and the
Inspector General in connection with any information
submitted under this section.
``(e) Content and Form of Reports.--
``(1) In general.--The Postal Regulatory Commission shall,
by regulation, prescribe the content and form of the public
reports (and any nonpublic annex and supporting matter
relating to the report) to be provided by the Postal Service
under this section. In carrying out this subsection, the
Commission shall give due consideration to--
``(A) providing the public with timely, adequate
information to assess the lawfulness of rates charged;
``(B) avoiding unnecessary or unwarranted administrative
effort and expense on the part of the Postal Service; and
``(C) protecting the confidentiality of commercially
sensitive information.
``(2) Revised requirements.--The Commission may, on its own
motion or on request of an interested party, initiate
proceedings (to be conducted in accordance with regulations
that the Commission shall prescribe) to improve the quality,
accuracy, or completeness of Postal Service data required by
the Commission under this subsection whenever it shall appear
that--
``(A) the attribution of costs or revenues to products has
become significantly inaccurate or can be significantly
improved;
``(B) the quality of service data has become significantly
inaccurate or can be significantly improved; or
``(C) such revisions are, in the judgment of the
Commission, otherwise necessitated by the public interest.
``(f) Confidential Information.--
``(1) In general.--If the Postal Service determines that
any document or portion of a document, or other matter, which
it provides to the Postal Regulatory Commission in a
nonpublic annex under this section or under subsection (d)
contains information which is described in section 410(c) of
this title, or exempt from public disclosure under section
552(b) of title 5, the Postal Service shall, at the time of
providing such matter to the Commission, notify the
Commission of its determination, in writing, and describe
with particularity the documents (or portions of documents)
or other matter for which confidentiality is sought and the
reasons therefor.
``(2) Treatment.--Any information or other matter described
in paragraph (1) to which the Commission gains access under
this section shall be subject to paragraphs (2) and (3) of
section 504(g) in the same way as if the Commission had
received notification with respect to such matter under
section 504(g)(1).
``(g) Other Reports.--The Postal Service shall submit to
the Postal Regulatory Commission, together with any other
submission that the Postal Service is required to make under
this section in a year, copies of its then most recent--
``(1) comprehensive statement under section 2401(e);
``(2) performance plan under section 2803; and
``(3) 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
[[Page H9165]]
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) Noncompliance With Regard to Rates or Services.--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
subsections (c) and (e) of section 3662 (as if a complaint
averring such noncompliance had been duly filed and found
under such section to be justified).
``(d) Review of Performance Goals.--The Postal Regulatory
Commission shall also evaluate annually whether the Postal
Service has met the goals established under sections 2803 and
2804, and may provide recommendations to the Postal Service
related to the protection or promotion of public policy
objectives set out in this title.
``(e) Rebuttable Presumption.--A timely written
determination described in the last sentence of subsection
(b) shall, for purposes of any proceeding under section 3662,
create a rebuttable presumption of compliance by the Postal
Service (with regard to the matters described under
paragraphs (1) and (2) of subsection (b)) during the year to
which such determination relates.
``Sec. 3654. Additional financial reporting
``(a) Additional Financial Reporting.--
``(1) In general.--The Postal Service shall file with the
Postal Regulatory Commission beginning with the first full
fiscal year following the effective date of this section--
``(A) within 40 days after the end of each fiscal quarter,
a quarterly report containing the information required by the
Securities and Exchange Commission to be included in
quarterly reports under sections 13 and 15(d) of the
Securities Exchange Act of 1934 (15 U.S.C. 78m, 78o(d)) on
Form 10-Q, as such Form (or any successor form) may be
revised from time to time;
``(B) within 60 days after the end of each fiscal year, an
annual report containing the information required by the
Securities and Exchange Commission to be included in annual
reports under such sections on Form 10-K, as such Form (or
any successor form) may be revised from time to time; and
``(C) periodic reports within the time frame and containing
the information prescribed in Form 8-K of the Securities and
Exchange Commission, as such Form (or any successor form) may
be revised from time to time.
``(2) Registrant defined.--For purposes of defining the
reports required by paragraph (1), the Postal Service shall
be deemed to be the `registrant' described in the Securities
and Exchange Commission Forms, and references contained in
such Forms to Securities and Exchange Commission regulations
are incorporated herein by reference, as amended.
``(3) Internal control report.--For purposes of defining
the reports required by paragraph (1)(B), the Postal Service
shall comply with the rules prescribed by the Securities and
Exchange Commission implementing section 404 of the Sarbanes-
Oxley Act of 2002 (15 U.S.C. 7262), beginning with the annual
report for fiscal year 2010.
``(b) Financial reporting.--
``(1) The reports required by subsection (a)(1)(B) shall
include, with respect to the Postal Service's pension and
post-retirement health obligations--
``(A) the funded status of the Postal Service's pension and
postretirement health obligations;
``(B) components of the net change in the fund balances and
obligations and the nature and cause of any significant
changes;
``(C) components of net periodic costs;
``(D) cost methods and assumptions underlying the relevant
actuarial valuations;
``(E) the effect of a one-percentage point increase in the
assumed health care cost trend rate for each future year on
the service and interest costs components of net periodic
postretirement health cost and the accumulated obligation;
``(F) actual contributions to and payments from the funds
for the years presented and the estimated future
contributions and payments for each of the following 5 years;
``(G) the composition of plan assets reflected in the fund
balances; and
``(H) the assumed rate of return on fund balances and the
actual rates of return for the years presented.
``(2) The Office of Personnel Management shall provide the
data listed under paragraph (1) to the Postal Service not
later than 30 days after the end of each fiscal year.
``(3)(A) Beginning with reports for the fiscal year 2010,
for purposes of the reports required under subparagraphs (A)
and (B) of subsection (a)(1), the Postal Service shall
include segment reporting.
``(B) The Postal Service shall determine the appropriate
segment reporting under subparagraph (A) after consultation
with the Postal Regulatory Commission.
``(c) Treatment.--For purposes of the reports required by
subsection (a)(1)(B), the Postal Service shall obtain an
opinion from an independent auditor on whether the
information listed in subsection (b) is fairly stated in all
material respects, either in relation to the basic financial
statements as a whole or on a stand-alone basis.
``(d) Supporting Matter.--The Postal Regulatory Commission
shall have access to the audit documentation and any other
supporting matter of the Postal Service and its independent
auditor in connection with any information submitted under
this section.
``(e) Revised Requirements.--The Postal Regulatory
Commission may, on its own motion or on request of an
interested party, initiate proceedings (to be conducted in
accordance with regulations that the Commission shall
prescribe) to improve the quality, accuracy, or completeness
of Postal Service data required under this section whenever
it shall appear that--
``(1) the data have become significantly inaccurate or can
be significantly improved; or
``(2) those 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).''.
SEC. 205. COMPLAINTS; APPELLATE REVIEW AND ENFORCEMENT.
Chapter 36 of title 39, United States Code, is amended by
striking sections 3662 and 3663 and inserting the following:
``Sec. 3662. Rate and service complaints
``(a) In General.--Any interested person (including an
officer of the Postal Regulatory Commission representing the
interests of the general public) who believes the Postal
Service is not operating in conformance with the requirements
of the provisions of sections 101(d), 401(2), 403(c), 404a,
or 601, or this chapter (or regulations promulgated under any
of those provisions) may lodge a complaint with the Postal
Regulatory Commission in such form and manner as the
Commission may prescribe.
``(b) Prompt Response Required.--
``(1) In general.--The Postal Regulatory Commission shall,
within 90 days after receiving a complaint under subsection
(a)--
``(A) either--
``(i) upon a finding that such complaint raises material
issues of fact or law, begin proceedings on such complaint;
or
``(ii) issue an order dismissing the complaint; and
``(B) with respect to any action taken under subparagraph
(A) (i) or (ii), issue a written statement setting forth the
bases of its determination.
``(2) Treatment of complaints not timely acted on.--For
purposes of section 3663, any complaint under subsection (a)
on which the Commission fails to act in the time and manner
required by paragraph (1) shall be treated in the same way as
if it had been dismissed 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 as 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, or 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 from the Competitive Products Fund established
in section 2011. All receipts from fines imposed under this
subsection shall be deposited in the general fund of the
Treasury of the United States.
``Sec. 3663. Appellate review
``A person, including the Postal Service, adversely
affected or aggrieved by a final
[[Page H9166]]
order or decision of the Postal Regulatory Commission may,
within 30 days after such order or decision becomes final,
institute proceedings for review thereof by filing a petition
in the United States Court of Appeals for the District of
Columbia. The court shall review the order or decision in
accordance with section 706 of title 5, and chapter 158 and
section 2112 of title 28, on the basis of the record before
the Commission.
``Sec. 3664. Enforcement of orders
``The several district courts have jurisdiction
specifically to enforce, and to enjoin and restrain the
Postal Service from violating, any order issued by the Postal
Regulatory Commission.''.
SEC. 206. CLERICAL AMENDMENT.
Chapter 36 of title 39, United States Code, is amended by
striking the heading and analysis for such chapter and
inserting the following:
``CHAPTER 36--POSTAL RATES, CLASSES, AND SERVICES
``SUBCHAPTER I--PROVISIONS RELATING TO MARKET-DOMINANT PRODUCTS
``Sec.
``3621. Applicability; definitions.
``3622. Modern rate regulation.
``[3623. Repealed.]
``[3624. Repealed.]
``[3625. Repealed.]
``3626. Reduced Rates.
``3627. Adjusting free rates.
``[3628. Repealed.]
``3629. Reduced rates for voter registration purposes.
``SUBCHAPTER II--PROVISIONS RELATING TO COMPETITIVE PRODUCTS
``3631. Applicability; definitions and updates.
``3632. Action of the Governors.
``3633. Provisions applicable to rates for competitive products.
``3634. Assumed Federal income tax on competitive products.
``SUBCHAPTER III--PROVISIONS RELATING TO EXPERIMENTAL AND NEW PRODUCTS
``3641. Market tests of experimental products.
``3642. New products and transfers of products between the market-
dominant and competitive categories of mail.
``SUBCHAPTER IV--REPORTING REQUIREMENTS AND RELATED PROVISIONS
``3651. Annual reports by the Commission.
``3652. Annual reports to the Commission.
``3653. Annual determination of compliance.
``3654. Additional financial reporting.
``SUBCHAPTER V--POSTAL SERVICES, COMPLAINTS, AND JUDICIAL REVIEW
``3661. Postal Services.
``3662. Rate and service complaints.
``3663. Appellate review.
``3664. Enforcement of orders.
``SUBCHAPTER VI--GENERAL
``3681. Reimbursement.
``3682. Size and weight limits.
``3683. Uniform rates for books; films, other materials.
``3684. Limitations.
``3685. Filing of information relating to periodical publications.
``3686. Bonus authority.
``SUBCHAPTER VII--MODERN SERVICE STANDARDS
``3691. Establishment of modern service standards.''.
TITLE III--MODERN SERVICE STANDARDS
SEC. 301. ESTABLISHMENT OF MODERN SERVICE STANDARDS.
Chapter 36 of title 39, United States Code, as amended by
this Act, is further amended by adding at the end the
following:
``SUBCHAPTER VII--MODERN SERVICE STANDARDS
``Sec. 3691. Establishment of modern service standards
``(a) Authority Generally.--Not later than 12 months after
the date of enactment of this section, the Postal Service
shall, in consultation with the Postal Regulatory Commission,
by regulation establish (and may from time to time thereafter
by regulation revise) a set of service standards for market-
dominant products.
``(b) Objectives.--
``(1) In general.--Such standards shall be designed to
achieve the following objectives:
``(A) To enhance the value of postal services to both
senders and recipients.
``(B) To preserve regular and effective access to postal
services in all communities, including those in rural areas
or where post offices are not self-sustaining.
``(C) To reasonably assure Postal Service customers
delivery reliability, speed and frequency consistent with
reasonable rates and best business practices.
``(D) To provide a system of objective external performance
measurements for each market-dominant product as a basis for
measurement of Postal Service performance.
``(2) Implementation of performance measurements.--With
respect to paragraph (1)(D), with the approval of the Postal
Regulatory Commission an internal measurement system may be
implemented instead of an external measurement system.
``(c) Factors.--In establishing or revising such standards,
the Postal Service shall take into account--
``(1) the actual level of service that Postal Service
customers receive under any service guidelines previously
established by the Postal Service or service standards
established under this section;
``(2) the degree of customer satisfaction with Postal
Service performance in the acceptance, processing and
delivery of mail;
``(3) the needs of Postal Service customers, including
those with physical impairments;
``(4) mail volume and revenues projected for future years;
``(5) the projected growth in the number of addresses the
Postal Service will be required to serve in future years;
``(6) the current and projected future cost of serving
Postal Service customers;
``(7) the effect of changes in technology, demographics,
and population distribution on the efficient and reliable
operation of the postal delivery system; and
``(8) the policies of this title and such other factors as
the Postal Service determines appropriate.
``(d) Review.--The regulations promulgated pursuant to this
section (and any revisions thereto), and any violations
thereof, shall be subject to review upon complaint under
sections 3662 and 3663.''.
SEC. 302. POSTAL SERVICE PLAN.
(a) In General.--Within 6 months after the establishment of
the service standards under section 3691 of title 39, United
States Code, as added by this Act, the Postal Service shall,
in consultation with the Postal Regulatory Commission,
develop and submit to Congress a plan for meeting those
standards.
(b) Contents.--The plan under this section shall--
(1) establish performance goals;
(2) describe any changes to the Postal Service's
processing, transportation, delivery, and retail networks
necessary to allow the Postal Service to meet the performance
goals;
(3) describe any changes to planning and performance
management documents previously submitted to Congress to
reflect new performance goals; and
(4) describe the long-term vision of the Postal Service for
rationalizing its infrastructure and workforce, and how the
Postal Service intends to implement that vision.
(c) Postal Facilities.--
(1) Findings.--Congress finds that--
(A) the Postal Service has more than 400 logistics
facilities, separate from its post office network;
(B) as noted by the President's Commission on the United
States Postal Service, the Postal Service has more facilities
than it needs and the streamlining of this distribution
network can pave the way for the potential consolidation of
sorting facilities and the elimination of excess costs;
(C) the Postal Service has always revised its distribution
network to meet changing conditions and is best suited to
address its operational needs; and
(D) Congress strongly encourages the Postal Service to--
(i) expeditiously move forward in its streamlining efforts;
and
(ii) keep unions, management associations, and local
elected officials informed as an essential part of this
effort and abide by any procedural requirements contained in
the national bargaining agreements.
(2) In general.--The Postal Service plan shall include a
description of--
(A) the long-term vision of the Postal Service for
rationalizing its infrastructure and workforce; and
(B) how the Postal Service intends to implement that
vision.
(3) Content of facilities plan.--The plan under this
subsection shall include--
(A) a strategy for how the Postal Service intends to
rationalize the postal facilities network and remove excess
processing capacity and space from the network, including
estimated timeframes, criteria, and processes to be used for
making changes to the facilities network, and the process for
engaging policy makers and the public in related decisions;
(B) a discussion of what impact any facility changes may
have on the postal workforce and whether the Postal Service
has sufficient flexibility to make needed workforce changes;
(C) an identification of anticipated costs, cost savings,
and other benefits associated with the infrastructure
rationalization alternatives discussed in the plan; and
(D) procedures that the Postal Service will use to--
(i) provide adequate public notice to communities
potentially affected by a proposed rationalization decision;
(ii) make available information regarding any service
changes in the affected communities, any other effects on
customers, any effects on postal employees, and any cost
savings;
(iii) afford affected persons ample opportunity to provide
input on the proposed decision; and
(iv) take such comments into account in making a final
decision.
(4) Annual reports.--
(A) In general.--Not later than 90 days after the end of
each fiscal year, the Postal Service shall prepare and submit
a report to Congress on how postal decisions have impacted or
will impact rationalization plans.
(B) Contents.--Each report under this paragraph shall
include--
(i) an account of actions taken during the preceding fiscal
year to improve the efficiency and effectiveness of its
processing, transportation, and distribution networks while
preserving the timely delivery of postal services, including
overall estimated costs and cost savings;
(ii) an account of actions taken to identify any excess
capacity within its processing,
[[Page H9167]]
transportation, and distribution networks and implement
savings through realignment or consolidation of facilities
including overall estimated costs and cost savings;
(iii) an estimate of how postal decisions related to mail
changes, security, automation initiatives, worksharing,
information technology systems, excess capacity,
consolidating and closing facilities, and other areas will
impact rationalization plans;
(iv) identification of any statutory or regulatory
obstacles that prevented or will prevent or hinder the Postal
Service from taking action to realign or consolidate
facilities; and
(v) such additional topics and recommendations as the
Postal Service considers appropriate.
(5) Existing efforts.--Effective on the date of enactment
of this Act, the Postal Service may not close or consolidate
any processing or logistics facilities without using
procedures for public notice and input consistent with those
described under paragraph (3)(D).
(d) Alternate Retail Options.--The Postal Service plan
shall include plans to expand and market retail access to
postal services, in addition to post offices, including--
(1) vending machines;
(2) the Internet;
(3) postage meters;
(4) Stamps by Mail;
(5) Postal Service employees on delivery routes;
(6) retail facilities in which overhead costs are shared
with private businesses and other government agencies;
(7) postal kiosks; or
(8) any other nonpost office access channel providing
market retail access to postal services.
(e) Reemployment Assistance and Retirement Benefits.--The
Postal Service plan shall include--
(1) a comprehensive plan under which reemployment
assistance shall be afforded to employees displaced as a
result of automation of any of its functions, the closing and
consolidation of any of its facilities, or such other reasons
as the Postal Service may determine; and
(2) a plan, developed in consultation with the Office of
Personnel Management, to offer early retirement benefits.
(f) Continued Authority.--Nothing in this section shall be
construed to prohibit the Postal Service from implementing
any change to its processing, transportation, delivery, and
retail networks under any authority granted to the Postal
Service for those purposes.
TITLE IV--PROVISIONS RELATING TO FAIR COMPETITION
SEC. 401. POSTAL SERVICE COMPETITIVE PRODUCTS FUND.
(a) Provisions Relating to Postal Service Competitive
Products Fund and Related Matters.--
(1) In general.--Chapter 20 of title 39, United States
Code, is amended by adding at the end the following:
``Sec. 2011. Provisions relating to competitive products
``(a)(1) In this subsection, the term `costs attributable'
has the meaning given such term by section 3631.
``(2) There is established in the Treasury of the United
States a revolving fund, to be called the Postal Service
Competitive Products Fund, which shall be available to the
Postal Service without fiscal year limitation for the payment
of--
``(A) costs attributable to competitive products; and
``(B) all other costs incurred by the Postal Service, to
the extent allocable to competitive products.
``(b) There shall be deposited in the Competitive Products
Fund, subject to withdrawal by the Postal Service--
``(1) revenues from competitive products;
``(2) amounts received from obligations issued by Postal
Service under subsection (e);
``(3) interest and dividends earned on investments of the
Competitive Products Fund; and
``(4) any other receipts of the Postal Service (including
from the sale of assets), to the extent allocable to
competitive products.
``(c) If the Postal Service determines that the moneys of
the Competitive Products Fund are in excess of current needs,
the Postal Service may request the investment of such amounts
as the Postal Service determines advisable by the Secretary
of the Treasury in obligations of, or obligations guaranteed
by, the Government of the United States, and, with the
approval of the Secretary, in such other obligations or
securities as the Postal Service determines appropriate.
``(d) With the approval of the Secretary of the Treasury,
the Postal Service may deposit moneys of the Competitive
Products Fund in any Federal Reserve bank, any depository for
public funds, or in such other places and in such manner as
the Postal Service and the Secretary may mutually agree.
``(e)(1)(A) Subject to the limitations specified in section
2005(a), the Postal Service is authorized to borrow money and
to issue and sell such obligations as the Postal Service
determines necessary to provide for competitive products and
deposit such amounts in the Competitive Products Fund.
``(B) Subject to paragraph (5), any borrowings by the
Postal Service under subparagraph (A) shall be supported and
serviced by--
``(i) the revenues and receipts from competitive products
and the assets related to the provision of competitive
products (as determined under subsection (h)); or
``(ii) for purposes of any period before accounting
practices and principles under subsection (h) have been
established and applied, the best information available from
the Postal Service, including the audited statements required
by section 2008(e).
``(2) The Postal Service may enter into binding covenants
with the holders of such obligations, and with any trustee
under any agreement entered into in connection with the
issuance of such obligations with respect to--
``(A) the establishment of reserve, sinking, and other
funds;
``(B) application and use of revenues and receipts of the
Competitive Products Fund;
``(C) stipulations concerning the subsequent issuance of
obligations or the execution of leases or lease purchases
relating to properties of the Postal Service; and
``(D) such other matters as the Postal Service, considers
necessary or desirable to enhance the marketability of such
obligations.
``(3) Obligations issued by the Postal Service under this
subsection--
``(A) shall be in such forms and denominations;
``(B) shall be sold at such times and in such amounts;
``(C) shall mature at such time or times;
``(D) shall be sold at such prices;
``(E) shall bear such rates of interest;
``(F) may be redeemable before maturity in such manner, at
such times, and at such redemption premiums;
``(G) may be entitled to such relative priorities of claim
on the assets of the Postal Service with respect to principal
and interest payments; and
``(H) shall be subject to such other terms and conditions,
as the Postal Service determines.
``(4) Obligations issued by the Postal Service under this
subsection--
``(A) shall be negotiable or nonnegotiable and bearer or
registered instruments, as specified therein and in any
indenture or covenant relating thereto;
``(B) shall contain a recital that such obligations are
issued under this section, and such recital shall be
conclusive evidence of the regularity of the issuance and
sale of such obligations and of their validity;
``(C) shall be lawful investments and may be accepted as
security for all fiduciary, trust, and public funds, the
investment or deposit of which shall be under the authority
or control of any officer or agency of the Government of the
United States, and the Secretary of the Treasury or any other
officer or agency having authority over or control of any
such fiduciary, trust, or public funds, may at any time sell
any of the obligations of the Postal Service acquired under
this section;
``(D) shall not be exempt either as to principal or
interest from any taxation now or hereafter imposed by any
State or local taxing authority; and
``(E) except as provided in section 2006(c), shall not be
obligations of, nor shall payment of the principal thereof or
interest thereon be guaranteed by, the Government of the
United States, and the obligations shall so plainly state.
``(5) The Postal Service shall make payments of principal,
or interest, or both on obligations issued under this section
out of revenues and receipts from competitive products and
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, including the audited statements
required by section 2008(e). For purposes of this subsection,
the total assets of the Competitive Products Fund shall be
the greater of--
``(A) the assets related to the provision of competitive
products as calculated under subsection (h); or
``(B) the percentage of total Postal Service revenues and
receipts from competitive products times the total assets of
the Postal Service.
``(f) The receipts and disbursements of the Competitive
Products Fund shall be accorded the same budgetary treatment
as is accorded to receipts and disbursements of the Postal
Service Fund under section 2009a.
``(g) A judgment (or settlement of a claim) against the
Postal Service or the Government of the United States shall
be paid out of the Competitive Products Fund to the extent
that the judgment or claim arises out of activities of the
Postal Service in the provision of competitive products.
``(h)(1)(A) The Secretary of the Treasury, in consultation
with the Postal Service and an independent, certified public
accounting firm and other advisors as the Secretary considers
appropriate, shall develop recommendations regarding--
``(i) the accounting practices and principles that should
be followed by the Postal Service with the objectives of--
``(I) identifying and valuing the assets and liabilities of
the Postal Service associated with providing competitive
products, including the capital and operating costs incurred
by the Postal Service in providing such competitive products;
and
``(II) subject to subsection (e)(5), preventing the
subsidization of such products by market-dominant products;
and
``(ii) the substantive and procedural rules that should be
followed in determining the assumed Federal income tax on
competitive
[[Page H9168]]
products income of the Postal Service for any year (within
the meaning of section 3634).
``(B) Not earlier than 6 months after the date of enactment
of this section, and not later than 12 months after such
date, the Secretary of the Treasury shall submit the
recommendations under subparagraph (A) to the Postal
Regulatory Commission.
``(2)(A) Upon receiving the recommendations of the
Secretary of the Treasury under paragraph (1), the Commission
shall give interested parties, including the Postal Service,
users of the mails, and an officer of the Commission who
shall be required to represent the interests of the general
public, an opportunity to present their views on those
recommendations through submission of written data, views, or
arguments with or without opportunity for oral presentation,
or in such other manner as the Commission considers
appropriate.
``(B)(i) After due consideration of the views and other
information received under subparagraph (A), the Commission
shall by rule--
``(I) provide for the establishment and application of the
accounting practices and principles which shall be followed
by the Postal Service;
``(II) provide for the establishment and application of the
substantive and procedural rules described under paragraph
(1)(A)(ii); and
``(III) provide for the submission by the Postal Service to
the Postal Regulatory Commission of annual and other periodic
reports setting forth such information as the Commission may
require.
``(ii) Final rules under this subparagraph shall be issued
not later than 12 months after the date on which
recommendations are submitted under paragraph (1) (or by such
later date on which the Commission and the Postal Service may
agree). The Commission is authorized to promulgate
regulations revising such rules.
``(C)(i) Reports described under subparagraph (B)(i)(III)
shall be submitted at such time and in such form, and shall
include such information, as the Commission by rule requires.
``(ii) The Commission may, on its own motion or on request
of an interested party, initiate proceedings (to be conducted
in accordance with such rules as the Commission shall
prescribe) to improve the quality, accuracy, or completeness
of Postal Service information under subparagraph (B)(i)(III)
whenever it shall appear that--
``(I) the quality of the information furnished in those
reports has become significantly inaccurate or can be
significantly improved; or
``(II) such revisions are, in the judgment of the
Commission, otherwise necessitated by the public interest.
``(D) A copy of each report described under subparagraph
(B)(i)(III) shall be submitted by the Postal Service to the
Secretary of the Treasury and the Inspector General of the
United States Postal Service.
``(i)(1) The Postal Service shall submit an annual report
to the Secretary of the Treasury concerning the operation of
the Competitive Products Fund. The report shall address such
matters as risk limitations, reserve balances, allocation or
distribution of moneys, liquidity requirements, and measures
to safeguard against losses.
``(2) A copy of the most recent report submitted under
paragraph (1) shall be included in the annual report
submitted by the Postal Regulatory Commission under section
3652(g).''.
(2) Clerical amendment.--The table of sections for chapter
20 of title 39, United States Code, is amended by adding
after the item relating to section 2010 the following:
``2011. Provisions relating to competitive products.''.
(b) Technical and Conforming Amendments.--
(1) Definition.--Section 2001 of title 39, United States
Code, is amended by striking ``and'' at the end of paragraph
(1), by redesignating paragraph (2) as paragraph (3), and by
inserting after paragraph (1) the following:
``(2) Competitive products fund.--The term `Competitive
Products Fund' means the Postal Service Competitive Products
Fund established by section 2011; and''.
(2) Capital of the postal service.--Section 2002(b) of
title 39, United States Code, is amended by striking
``Fund,'' and inserting ``Fund and the balance in the
Competitive Products Fund,''.
(3) Postal service fund.--
(A) Purposes for which available.--Section 2003(a) of title
39, United States Code, is amended by striking ``title.'' and
inserting ``title (other than any of the purposes, functions,
or powers for which the Competitive Products Fund is
available).''.
(B) Deposits.--Section 2003(b) of title 39, United States
Code, is amended by striking ``There'' and inserting ``Except
as otherwise provided in section 2011, there''.
(4) Relationship between the treasury and the postal
service.--Section 2006 of title 39, United States Code, is
amended--
(A) in subsection (a), in the first sentence, by inserting
``or 2011'' after ``section 2005'';
(B) in subsection (b)--
(i) in the first sentence, by inserting ``under section
2005'' before ``in such amounts''; and
(ii) in the second sentence, by inserting ``under section
2005'' before ``in excess of such amount.''; and
(C) in subsection (c), by inserting ``or 2011(e)(4)(E)''
after ``section 2005(d)(5)''.
SEC. 402. ASSUMED FEDERAL INCOME TAX ON COMPETITIVE PRODUCTS
INCOME.
Subchapter II of chapter 36 of title 39, United States
Code, as amended by section 202, is amended by adding at the
end the following:
``Sec. 3634. Assumed Federal income tax on competitive
products income
``(a) Definitions.--For purposes of this section--
``(1) the term `assumed Federal income tax on competitive
products income' means the net income tax that would be
imposed by chapter 1 of the Internal Revenue Code of 1986 on
the Postal Service's assumed taxable income from competitive
products for the year; and
``(2) the term `assumed taxable income from competitive
products', with respect to a year, refers to the amount
representing what would be the taxable income of a
corporation under the Internal Revenue Code of 1986 for the
year, if--
``(A) the only activities of such corporation were the
activities of the Postal Service allocable under section
2011(h) to competitive products; and
``(B) the only assets held by such corporation were the
assets of the Postal Service allocable under section 2011(h)
to such activities.
``(b) Computation and Transfer Requirements.--The Postal
Service shall, for each year beginning with the year in which
occurs the deadline for the Postal Service's first report to
the Postal Regulatory Commission under section 3652(a)--
``(1) compute its assumed Federal income tax on competitive
products income for such year; and
``(2) transfer from the Competitive Products Fund to the
Postal Service Fund the amount of that assumed tax.
``(c) Deadline for Transfers.--Any transfer required to be
made under this section for a year shall be due on or before
the January 15th next occurring after the close of such
year.''.
SEC. 403. UNFAIR COMPETITION PROHIBITED.
(a) Specific Limitations.--Chapter 4 of title 39, United
States Code, is amended by adding after section 404 the
following:
``Sec. 404a. Specific limitations
``(a) Except as specifically authorized by law, the Postal
Service may not--
``(1) establish any rule or regulation (including any
standard) the effect of which is to preclude competition or
establish the terms of competition unless the Postal Service
demonstrates that the regulation does not create an unfair
competitive advantage for itself or any entity funded (in
whole or in part) by the Postal Service;
``(2) compel the disclosure, transfer, or licensing of
intellectual property to any third party (such as patents,
copyrights, trademarks, trade secrets, and proprietary
information); or
``(3) obtain information from a person that provides (or
seeks to provide) any product, and then offer any postal
service that uses or is based in whole or in part on such
information, without the consent of the person providing that
information, unless substantially the same information is
obtained (or obtainable) from an independent source or is
otherwise obtained (or obtainable).
``(b) The Postal Regulatory Commission shall prescribe
regulations to carry out this section.
``(c) Any party (including an officer of the Commission
representing the interests of the general public) who
believes that the Postal Service has violated this section
may bring a complaint in accordance with section 3662.''.
(b) Conforming Amendments.--
(1) General powers.--Section 401 of title 39, United States
Code, is amended by striking ``The'' and inserting ``Subject
to the provisions of section 404a, the''.
(2) Specific powers.--Section 404(a) of title 39, United
States Code, is amended by striking ``Without'' and inserting
``Subject to the provisions of section 404a, but otherwise
without''.
(c) Clerical Amendment.--The analysis for chapter 4 of
title 39, United States Code, is amended by inserting after
the item relating to section 404 the following:
``404a. Specific limitations.''.
SEC. 404. SUITS BY AND AGAINST THE POSTAL SERVICE.
(a) In General.--Section 409 of title 39, United States
Code, is amended by striking subsections (d) and (e) and
inserting the following:
``(d)(1) For purposes of the provisions of law cited in
paragraphs (2)(A) and (2)(B), respectively, the Postal
Service--
``(A) shall be considered to be a `person', as used in the
provisions of law involved; and
``(B) shall not be immune under any other doctrine of
sovereign immunity from suit in Federal court by any person
for any violation of any of those provisions of law by any
officer or employee of the Postal Service.
``(2) This subsection applies with respect to--
``(A) the Act of July 5, 1946 (commonly referred to as the
`Trademark Act of 1946' (15 U.S.C. 1051 and following)); and
``(B) the provisions of section 5 of the Federal Trade
Commission Act to the extent that such section 5 applies to
unfair or deceptive acts or practices.
``(e)(1) To the extent that the Postal Service, or other
Federal agency acting on behalf of or in concert with the
Postal Service, engages in conduct with respect to any
product which is not reserved to the United States under
section 1696 of title 18, the Postal Service or other Federal
agency (as the case may be)--
[[Page H9169]]
``(A) shall not be immune under any doctrine of sovereign
immunity from suit in Federal court by any person for any
violation of Federal law by such agency or any officer or
employee thereof; and
``(B) shall be considered to be a person (as defined in
subsection (a) of the first section of the Clayton Act) for
purposes of--
``(i) the antitrust laws (as defined in such subsection);
and
``(ii) section 5 of the Federal Trade Commission Act to the
extent that such section 5 applies to unfair methods of
competition.
For purposes of the preceding sentence, any private carriage
of mail allowable by virtue of section 601 shall not be
considered a service reserved to the United States under
section 1696 of title 18.
``(2) No damages, interest on damages, costs or attorney's
fees may be recovered, and no criminal liability may be
imposed, under the antitrust laws (as so defined) from any
officer or employee of the Postal Service, or other Federal
agency acting on behalf of or in concert with the Postal
Service, acting in an official capacity.
``(3) This subsection shall not apply with respect to
conduct occurring before the date of enactment of this
subsection.
``(f)(1) Each building constructed or altered by the Postal
Service shall be constructed or altered, to the maximum
extent feasible as determined by the Postal Service, in
compliance with 1 of the nationally recognized model building
codes and with other applicable nationally recognized codes.
``(2) Each building constructed or altered by the Postal
Service shall be constructed or altered only after
consideration of all requirements (other than procedural
requirements) of zoning laws, land use laws, and applicable
environmental laws of a State or subdivision of a State which
would apply to the building if it were not a building
constructed or altered by an establishment of the Government
of the United States.
``(3) For purposes of meeting the requirements of
paragraphs (1) and (2) with respect to a building, the Postal
Service shall--
``(A) in preparing plans for the building, consult with
appropriate officials of the State or political subdivision,
or both, in which the building will be located;
``(B) upon request, submit such plans in a timely manner to
such officials for review by such officials for a reasonable
period of time not exceeding 30 days; and
``(C) permit inspection by such officials during
construction or alteration of the building, in accordance
with the customary schedule of inspections for construction
or alteration of buildings in the locality, if such officials
provide to the Postal Service--
``(i) a copy of such schedule before construction of the
building is begun; and
``(ii) reasonable notice of their intention to conduct any
inspection before conducting such inspection.
Nothing in this subsection shall impose an obligation on any
State or political subdivision to take any action under the
preceding sentence, nor shall anything in this subsection
require the Postal Service or any of its contractors to pay
for any action taken by a State or political subdivision to
carry out this subsection (including reviewing plans,
carrying out on-site inspections, issuing building permits,
and making recommendations).
``(4) Appropriate officials of a State or a political
subdivision of a State may make recommendations to the Postal
Service concerning measures necessary to meet the
requirements of paragraphs (1) and (2). Such officials may
also make recommendations to the Postal Service concerning
measures which should be taken in the construction or
alteration of the building to take into account local
conditions. The Postal Service shall give due consideration
to any such recommendations.
``(5) In addition to consulting with local and State
officials under paragraph (3), the Postal Service shall
establish procedures for soliciting, assessing, and
incorporating local community input on real property and land
use decisions.
``(6) For purposes of this subsection, the term `State'
includes the District of Columbia, the Commonwealth of Puerto
Rico, and a territory or possession of the United States.
``(h)(1) Notwithstanding any other provision of law, legal
representation may not be furnished by the Department of
Justice to the Postal Service in any action, suit, or
proceeding arising, in whole or in part, under any of the
following:
``(A) Subsection (d) or (e) of this section.
``(B) Subsection (f) or (g) of section 504 (relating to
administrative subpoenas by the Postal Regulatory
Commission).
``(C) Section 3663 (relating to appellate review).
The Postal Service may, by contract or otherwise, employ
attorneys to obtain any legal representation that it is
precluded from obtaining from the Department of Justice under
this paragraph.
``(2) In any circumstance not covered by paragraph (1), the
Department of Justice shall, under section 411, furnish the
Postal Service such legal representation as it may require,
except that, with the prior consent of the Attorney General,
the Postal Service may, in any such circumstance, employ
attorneys by contract or otherwise to conduct litigation
brought by or against the Postal Service or its officers or
employees in matters affecting the Postal Service.
``(3)(A) In any action, suit, or proceeding in a court of
the United States arising in whole or in part under any of
the provisions of law referred to in subparagraph (B) or (C)
of paragraph (1), and to which the Commission is not
otherwise a party, the Commission shall be permitted to
appear as a party on its own motion and as of right.
``(B) The Department of Justice shall, under such terms and
conditions as the Commission and the Attorney General shall
consider appropriate, furnish the Commission such legal
representation as it may require in connection with any such
action, suit, or proceeding, except that, with the prior
consent of the Attorney General, the Commission may employ
attorneys by contract or otherwise for that purpose.
``(i) A judgment against the Government of the United
States arising out of activities of the Postal Service shall
be paid by the Postal Service out of any funds available to
the Postal Service, subject to the restriction specified in
section 2011(g).''.
(b) Technical Amendment.--Section 409(a) of title 39,
United States Code, is amended by striking ``Except as
provided in section 3628 of this title,'' and inserting
``Except as otherwise provided in this title,''.
SEC. 405. INTERNATIONAL POSTAL ARRANGEMENTS.
(a) In General.--Section 407 of title 39, United States
Code, is amended to read as follows:
``Sec. 407. International postal arrangements
``(a) It is the policy of the United States--
``(1) to promote and encourage communications between
peoples by efficient operation of international postal
services and other international delivery services for
cultural, social, and economic purposes;
``(2) to promote and encourage unrestricted and undistorted
competition in the provision of international postal services
and other international delivery services, except where
provision of such services by private companies may be
prohibited by law of the United States;
``(3) to promote and encourage a clear distinction between
governmental and operational responsibilities with respect to
the provision of international postal services and 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 postal 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 Homeland Security and Governmental Affairs of the Senate
and the Committee on Government Reform of the House of
Representatives;
``(D) shall maintain appropriate liaison with both
representatives of the Postal Service and representatives of
users and private providers of international postal services
and other international delivery services to keep informed of
their interests and problems, and to provide such assistance
as may be needed to ensure that matters of concern are
promptly considered by the Department of State or (if
applicable, and to the extent practicable) other executive
branch agencies; and
``(E) shall assist in arranging meetings of such public
sector advisory groups as may be established to advise the
Department of State and other executive branch agencies in
connection with international postal services and
international delivery services.
``(3) The Secretary of State shall establish an advisory
committee (within the meaning of the Federal Advisory
Committee Act) to perform such functions as the Secretary
considers appropriate in connection with carrying out
subparagraphs (A) through (D) of paragraph (2).
``(c)(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
[[Page H9170]]
State shall request the Postal Regulatory Commission to
submit its views on whether such rate or classification is
consistent with the standards and criteria established by the
Commission under section 3622.
``(2) The Secretary shall ensure that each treaty,
convention, or amendment concluded under subsection (b) is
consistent with the views submitted by the Commission
pursuant to paragraph (1), except if, or to the extent, the
Secretary determines, in writing, that it is not in the
foreign policy or national security interest of the United
States to ensure consistency with the Commission's views.
Such written determination shall be provided to the
Commission together with a full explanation of the reasons
thereof, provided that the Secretary may designate which
portions of the determination or explanation shall be kept
confidential for reasons of foreign policy or national
security.
``(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) In this subsection, the term `private company'
means a private company substantially owned or controlled by
persons who are citizens of the United States.
``(2) 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.
``(3) In exercising the authority under subsection (b) to
conclude new postal treaties and conventions related to
international postal services and to renegotiate such
treaties and conventions, the Secretary of State shall, to
the maximum extent practicable, take such measures as are
within the Secretary's control to encourage the governments
of other countries to make available to the Postal Service
and private companies a range of nondiscriminatory customs
procedures that will fully meet the needs of all types of
American shippers. The Secretary of State shall consult with
the United States Trade Representative and the Commissioner
of Customs in carrying out this paragraph.
``(4) The provisions of this subsection shall take effect 6
months after the date of enactment of this subsection or such
earlier date as the Bureau of Customs and Border Protection
of the Department of Homeland Security may determine in
writing.''.
(b) Effective Date.--Notwithstanding any provision of the
amendment made by subsection (a), the authority of the United
States Postal Service to establish the rates of postage or
other charges on mail matter conveyed between the United
States and other countries shall remain available to the
Postal Service until--
(1) with respect to market-dominant products, the date as
of which the regulations promulgated under section 3622 of
title 39, United States Code (as amended by section 201(a))
take effect; and
(2) with respect to competitive products, the date as of
which the regulations promulgated under section 3633 of title
39, United States Code (as amended by section 202) take
effect.
TITLE V--GENERAL PROVISIONS
SEC. 501. QUALIFICATION AND TERM REQUIREMENTS FOR GOVERNORS.
(a) Qualifications.--
(1) In general.--Section 202(a) of title 39, United States
Code, is amended by striking ``(a)'' and inserting ``(a)(1)''
and by striking the fourth sentence and inserting the
following: ``The Governors shall represent the public
interest generally, and shall be chosen solely on the basis
of their experience in the field of public service, law or
accounting or on their demonstrated ability in managing
organizations or corporations (in either the public or
private sector) of substantial size; except that 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) that
employ 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.''.
(2) Applicability.--The amendment made by paragraph (1)
shall not affect the appointment or tenure of any person
serving as a Governor of the United States Postal Service
under an appointment made before the date of enactment of
this Act however, when any such office becomes vacant, the
appointment of any person to fill that office shall be made
in accordance with such amendment. The requirement set forth
in the fourth sentence of section 202(a)(1) of title 39,
United States Code (as amended by subsection (a)) shall be
met beginning not later than 9 years after the date of
enactment of this Act.
(b) Consultation Requirement.--Section 202(a) of title 39,
United States Code, is amended by adding at the end the
following:
``(2) In selecting the individuals described in paragraph
(1) for nomination for appointment to the position of
Governor, the President should consult with the Speaker of
the House of Representatives, the minority leader of the
House of Representatives, the majority leader of the Senate,
and the minority leader of the Senate.''.
(c) 7-Year Terms.--
(1) In general.--Section 202(b) of title 39, United States
code, is amended in the first sentence by striking ``9
years'' and inserting ``7 years''.
(2) Applicability.--
(A) Continuation by incumbents.--The amendment made by
paragraph (1) shall not affect the tenure of any person
serving as a Governor of the United States Postal Service on
the date of enactment of this Act and such person may
continue to serve the remainder of the applicable term.
(B) Vacancy by incumbent before 7 years of service.--If a
person who is serving as a Governor of the United States
Postal Service on the date of enactment of this Act resigns,
is removed, or dies before the expiration of the 9-year term
of that Governor, and that Governor has served less than 7
years of that term, the resulting vacancy in office shall be
treated as a vacancy in a 7-year term.
(C) Vacancy by incumbent after 7 years of service.--If a
person who is serving as a Governor of the United States
Postal Service on the date of enactment of this Act resigns,
is removed, or dies before the expiration of the 9-year term
of that Governor, and that Governor has served 7 years or
more of that term, that term shall be deemed to have been a
7-year term beginning on its commencement date for purposes
of determining vacancies in office. Any appointment to the
vacant office shall be for a 7-year term beginning at the end
of the original 9-year term determined without regard to the
deeming under the preceding sentence. Nothing in this
subparagraph shall be construed to affect any action or
authority of any Governor or the Board of Governors during
any portion of a 9-year term deemed to be 7-year term under
this subparagraph.
(d) Term Limitation.--
(1) In general.--Section 202(b) of title 39, United States
Code, is amended--
(A) by inserting ``(1)'' after ``(b)''; and
(B) by adding at the end the following:
``(2) No person may serve more than 2 terms as a
Governor.''.
(2) Applicability.--The amendments made by paragraph (1)
shall not affect the tenure of any person serving as a
Governor of the United States Postal Service on the date of
enactment of this Act with respect to the term which that
person is serving on that date. Such person may continue to
serve the remainder of the applicable term, after which the
amendments made by paragraph (1) shall apply.
SEC. 502. OBLIGATIONS.
(a) Purposes for Which Obligations May Be Issued.--The
first sentence of section 2005(a)(1) of title 39, United
States Code, is amended by striking ``title.'' and inserting
``title, other than any of the purposes for which the
corresponding authority is available to the Postal Service
under section 2011.''.
(b) Limitation on Net Annual Increase in Obligations Issued
for Certain Purposes.--The third sentence of section
2005(a)(1) of title 39, United States Code, is amended to
read as follows: ``In any one fiscal year, the net increase
in the amount of obligations outstanding issued for the
purpose of capital improvements and the net increase in the
amount of obligations outstanding issued for the purpose of
defraying operating expenses of the Postal Service shall not
exceed a combined total of $3,000,000,000.'' .
(c) 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''.
(d) Amounts Which May Be Pledged.--
(1) Obligations to which provisions apply.--The first
sentence of section 2005(b) of title 39, United States Code,
is amended by striking ``such obligations,'' and inserting
``obligations issued by the Postal Service under this
section,''.
(2) Assets, revenues, and receipts to which provisions
apply.--Subsection (b) of section 2005 of title 39, United
States Code, is amended by striking ``(b)'' and inserting
``(b)(1)'', and by adding at the end the following:
``(2) Notwithstanding any other provision of this section--
[[Page H9171]]
``(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
(including, in particular, sections 310.1 and 320.2-320.8 of
title 39 of the Code of Federal Regulations, as in effect on
July 1, 2005) 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.
(a) Labor Disputes.--Section 1207 of title 39, United
States Code, is amended to read as follows:
``Sec. 1207. Labor disputes
``(a) If there is a collective-bargaining agreement in
effect, no party to such agreement shall terminate or modify
such agreement unless the party desiring such termination or
modification serves written notice upon the other party to
the agreement of the proposed termination or modification not
less than 90 days prior to the expiration date thereof, or
not less than 90 days prior to the time it is proposed to
make such termination or modification. The party serving such
notice shall notify the Federal Mediation and Conciliation
Service of the existence of a dispute within 45 days after
such notice, if no agreement has been reached by that time.
``(b) If the parties fail to reach agreement or to adopt a
procedure providing for a binding resolution of a dispute by
the expiration date of the agreement in effect, or the date
of the proposed termination or modification, the Director of
the Federal Mediation and Conciliation Service shall within
10 days appoint a mediator of nationwide reputation and
professional stature, and who is also a member of the
National Academy of Arbitrators. The parties shall cooperate
with the mediator in an effort to reach an agreement and
shall meet and negotiate in good faith at such times and
places that the mediator, in consultation with the parties,
shall direct.
``(c)(1) If no agreement is reached within 60 days after
the expiration or termination of the agreement or the date on
which the agreement became subject to modification under
subsection (a) of this section, or if the parties decide upon
arbitration but do not agree upon the procedures therefore,
an arbitration board shall be established consisting of 3
members, 1 of whom shall be selected by the Postal Service, 1
by the bargaining representative of the employees, and the
third by the 2 thus selected. If either of the parties fails
to select a member, or if the members chosen by the parties
fail to agree on the third person within 5 days after their
first meeting, the selection shall be made from a list of
names provided by the Director. This list shall consist of
not less then 9 names of arbitrators of nationwide reputation
and professional nature, who are also members of the National
Academy of Arbitrators, and whom the Director has determined
are available and willing to serve.
``(2) The arbitration board shall give the parties a full
and fair hearing, including an opportunity to present
evidence in support of their claims, and an opportunity to
present their case in person, by counsel or by other
representative as they may elect. Decisions of the
arbitration board shall be conclusive and binding upon the
parties. The arbitration board shall render its decision
within 45 days after its appointment.
``(3) Costs of the arbitration board and mediation shall be
shared equally by the Postal Service and the bargaining
representative.
``(d) In the case of a bargaining unit whose recognized
collective-bargaining representative does not have an
agreement with the Postal Service, if the parties fail to
reach the agreement within 90 days after the commencement of
collective bargaining, a mediator shall be appointed in
accordance with the terms in subsection (b) of this section,
unless the parties have previously agreed to another
procedure for a binding resolution of their differences. If
the parties fail to reach agreement within 180 days after the
commencement of collective bargaining, and if they have not
agreed to another procedure for binding resolution, an
arbitration board shall be established to provide conclusive
and binding arbitration in accordance with the terms of
subsection (c) of this section.''.
(b) Noninterference With Collective Bargaining
Agreements.--Except as otherwise provided by the amendment
made by subsection (a), nothing in this Act shall restrict,
expand, or otherwise affect any of the rights, privileges, or
benefits of either employees of or labor organizations
representing employees of the United States Postal Service
under chapter 12 of title 39, United States Code, the
National Labor Relations Act, any handbook or manual
affecting employee labor relations within the United States
Postal Service, or any collective bargaining agreement.
(c) Free Mailing Privileges Continue Unchanged.--Nothing in
this Act or any amendment made by this Act shall affect any
free mailing privileges accorded under section 3217 or
sections 3403 through 3406 of title 39, United States Code.
SEC. 506. BONUS AUTHORITY.
Chapter 36 of title 39, United States Code, is amended by
inserting after section 3685 the following:
``Sec. 3686. Bonus authority
``(a) In General.--The Postal Service may establish 1 or
more programs to provide bonuses or other rewards to officers
and employees of the Postal Service in senior executive or
equivalent positions to achieve the objectives of this
chapter.
``(b) Limitation on Total Compensation.--
``(1) In general.--Under any such program, the Postal
Service may award a bonus or other reward in excess of the
limitation set forth in the last sentence of section 1003(a),
if such program has been approved under paragraph (2). Any
such award or bonus may not cause the total compensation of
such officer or employee to exceed the total annual
compensation payable to the Vice President under section 104
of title 3 as of the end of the calendar year in which the
bonus or award is paid.
``(2) Approval process.--If the Postal Service wishes to
have the authority, under any program described in subsection
(a), to award bonuses or other rewards in excess of the
limitation set forth in the last sentence of section
1003(a)--
``(A) the Postal Service shall make an appropriate request
to the Board of Governors of the Postal Service in such form
and manner as the Board requires; and
``(B) the Board of Governors shall approve any such request
if the Board certifies, for the annual appraisal period
involved, that the performance appraisal system for affected
officers and employees of the Postal Service (as designed and
applied) makes meaningful distinctions based on relative
performance.
``(3) Revocation authority.--If the Board of Governors of
the Postal Service finds that a performance appraisal system
previously approved under paragraph (2)(B) does not (as
designed and applied) make meaningful distinctions based on
relative performance, the Board may revoke or suspend the
authority of the Postal Service to continue a program
approved under paragraph (2) until such time as appropriate
corrective measures have, in the judgment of the Board, been
taken.
``(c) Exceptions for Critical Positions.--Notwithstanding
any other provision of law, the Board of Governors may allow
up to 12 officers or employees of the Postal Service in
critical senior executive or equivalent positions to receive
total compensation in an amount not to exceed 120 percent of
the total annual compensation payable to the Vice President
under section 104 of title 3 as of the end of the calendar
year in which such payment is received. For each exception
made under this subsection, the Board shall provide written
notification to the Director of the Office of Personnel
Management and the Congress within 30 days after the payment
is made setting forth the name of the officer or employee
involved, the critical nature of his or her duties and
responsibilities, and the basis for determining that such
payment is warranted.
``(d) Information for Inclusion in Comprehensive
Statement.--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
payment during such period which would not have been
allowable but for the provisions of subsection (b) or (c);
``(2) the amount of the bonus or other payment; and
``(3) the amount by which the limitation set forth in the
last sentence of section 1003(a) was exceeded as a result of
such bonus or other payment.
``(e) Regulations.--The Board of Governors may prescribe
regulations for the administration of this section.''.
[[Page H9172]]
TITLE VI--ENHANCED REGULATORY COMMISSION
SEC. 601. REORGANIZATION AND MODIFICATION OF CERTAIN
PROVISIONS RELATING TO THE POSTAL REGULATORY
COMMISSION.
(a) Transfer and Redesignation.--Title 39, United States
Code, is amended--
(1) by inserting after chapter 4 the following:
``CHAPTER 5--POSTAL REGULATORY COMMISSION
``Sec.
``501. Establishment.
``502. Commissioners.
``503. Rules; regulations; procedures.
``504. Administration.
``505. Officer of the Postal Regulatory Commission representing the
general public.
``Sec. 501. Establishment
``The Postal Regulatory Commission is an independent
establishment of the executive branch of the Government of
the United States.
``Sec. 502. Commissioners
``(a) The Postal Regulatory Commission is composed of 5
Commissioners, appointed by the President, by and with the
advice and consent of the Senate. The Commissioners shall be
chosen solely on the basis of their technical qualifications,
professional standing, and demonstrated expertise in
economics, accounting, law, or public administration, and may
be removed by the President only for cause. Each individual
appointed to the Commission shall have the qualifications and
expertise necessary to carry out the enhanced
responsibilities accorded Commissioners under the Postal
Accountability and Enhancement Act. Not more than 3 of the
Commissioners may be adherents of the same political party.
``(b) No Commissioner shall be financially interested in
any enterprise in the private sector of the economy engaged
in the delivery of mail matter.
``(c) A Commissioner may continue to serve after the
expiration of his term until his successor has qualified,
except that a Commissioner may not so continue to serve for
more than 1 year after the date upon which his term otherwise
would expire under subsection (f).
``(d) One of the Commissioners shall be designated as
Chairman by, and shall serve in the position of Chairman at
the pleasure of, the President.
``(e) The Commissioners shall by majority vote designate a
Vice Chairman of the Commission. The Vice Chairman shall act
as Chairman of the Commission in the absence of the Chairman.
``(f) The Commissioners shall serve for terms of 6
years.'';
(2) by striking, in subchapter I of chapter 36 (as in
effect before the amendment made by section 201(c)), the
heading for such subchapter I and all that follows through
section 3602;
(3) by redesignating sections 3603 and 3604 as sections 503
and 504, respectively, and transferring such sections to the
end of chapter 5 (as inserted by paragraph (1)); and
(4) by adding after such section 504 the following:
``Sec. 505. Officer of the Postal Regulatory Commission
representing the general public
``The Postal Regulatory Commission shall designate an
officer of the Postal Regulatory Commission in all public
proceedings (such as developing rules, regulations, and
procedures) who shall represent the interests of the general
public.''.
(b) Applicability.--The amendment made by subsection (a)(1)
shall not affect the appointment or tenure of any person
serving as a Commissioner on the Postal Regulatory Commission
(as so redesignated by section 604) under an appointment made
before the date of enactment of this Act or any nomination
made before that date, but, when any such office becomes
vacant, the appointment of any person to fill that office
shall be made in accordance with such amendment.
(c) Clerical Amendment.--The analysis for part I of title
39, United States Code, is amended by inserting after the
item relating to chapter 4 the following:
``5. Postal Regulatory Commission...........................501''....
SEC. 602. AUTHORITY FOR POSTAL REGULATORY COMMISSION TO ISSUE
SUBPOENAS.
Section 504 of title 39, United States Code (as so
redesignated by section 601) is amended by adding at the end
the following:
``(f)(1) Any Commissioner of the Postal Regulatory
Commission, any administrative law judge appointed by the
Commission under section 3105 of title 5, and any employee of
the Commission designated by the Commission may administer
oaths, examine witnesses, take depositions, and receive
evidence.
``(2) The Chairman of the Commission, any Commissioner
designated by the Chairman, and any administrative law judge
appointed by the Commission under section 3105 of title 5
may, with respect to any proceeding conducted by the
Commission under this title or to obtain information to be
used to prepare a report under this title--
``(A) issue subpoenas requiring the attendance and
presentation of testimony by, or the production of
documentary or other evidence in the possession of, any
covered person; and
``(B) order the taking of depositions and responses to
written interrogatories by a covered person.
The written concurrence of a majority of the Commissioners
then holding office shall, with respect to each subpoena
under subparagraph (A), be required in advance of its
issuance.
``(3) In the case of contumacy or failure to obey a
subpoena issued under this subsection, upon application by
the Commission, the district court of the United States for
the district in which the person to whom the subpoena is
addressed resides or is served may issue an order requiring
such person to appear at any designated place to testify or
produce documentary or other evidence. Any failure to obey
the order of the court may be punished by the court as a
contempt thereof.
``(4) For purposes of this subsection, the term `covered
person' means an officer, employee, agent, or contractor of
the Postal Service.
``(g)(1) If the Postal Service determines that any document
or other matter it provides to the Postal Regulatory
Commission under a subpoena issued under subsection (f), or
otherwise at the request of the Commission in connection with
any proceeding or other purpose under this title, contains
information which is described in section 410(c) of this
title, or exempt from public disclosure under section 552(b)
of title 5, the Postal Service shall, at the time of
providing such matter to the Commission, notify the
Commission, in writing, of its determination (and the reasons
therefor).
``(2) Except as provided in paragraph (3), no officer or
employee of the Commission may, with respect to any
information as to which the Commission has been notified
under paragraph (1)--
``(A) use such information for purposes other than the
purposes for which it is supplied; or
``(B) permit anyone who is not an officer or employee of
the Commission to have access to any such information.
``(3)(A) Paragraph (2) shall not prohibit the Commission
from publicly disclosing relevant information in furtherance
of its duties under this title, provided that the Commission
has adopted regulations under section 553 of title 5, that
establish a procedure for according appropriate
confidentiality to information identified by the Postal
Service under paragraph (1). In determining the appropriate
degree of confidentiality to be accorded information
identified by the Postal Service under paragraph (1), the
Commission shall balance the nature and extent of the likely
commercial injury to the Postal Service against the public
interest in maintaining the financial transparency of a
government establishment competing in commercial markets.
``(B) Paragraph (2) shall not prevent the Commission from
requiring production of information in the course of any
discovery procedure established in connection with a
proceeding under this title. The Commission shall, by
regulations based on rule 26(c) of the Federal Rules of Civil
Procedure, establish procedures for ensuring appropriate
confidentiality for information furnished to any party.''.
SEC. 603. AUTHORIZATION OF APPROPRIATIONS FROM THE POSTAL
SERVICE FUND.
(a) Postal Regulatory Commission.--Subsection (d) of
section 504 of title 39, United States Code (as so
redesignated by section 601) is amended to read as follows:
``(d) There are authorized to be appropriated, out of the
Postal Service Fund, such sums as may be necessary for the
Postal Regulatory Commission. In requesting an appropriation
under this subsection for a fiscal year, the Commission shall
prepare and submit to the Congress under section 2009 a
budget of the Commission's expenses, including expenses for
facilities, supplies, compensation, and employee benefits.''.
(b) Office of Inspector General of the United States Postal
Service.--Section 8G(f) of the Inspector General Act of 1978
(5 U.S.C. App.) is amended--
(1) by redesignating paragraph (4) as paragraph (5);
(2) by redesignating the second paragraph (3) (relating to
employees and labor organizations) as paragraph (4); and
(3) by adding at the end the following:
``(6) There are authorized to be appropriated, out of the
Postal Service Fund, such sums as may be necessary for the
Office of Inspector General of the United States Postal
Service.''.
(c) Budget Program.--
(1) In general.--The next to last sentence of section 2009
of title 39, United States Code, is amended to read as
follows: ``The budget program shall also include separate
statements of the amounts which (1) the Postal Service
requests to be appropriated under subsections (b) and (c) of
section 2401, (2) the Office of Inspector General of the
United States Postal Service requests to be appropriated, out
of the Postal Service Fund, under section 8G(f) of the
Inspector General Act of 1978, and (3) the Postal Regulatory
Commission requests to be appropriated, out of the Postal
Service Fund, under section 504(d) of this title.''.
(2) Conforming amendment.--Section 2003(e)(1) of title 39,
United States Code, is amended by striking the first sentence
and inserting the following: ``The Fund shall be available
for the payment of (A) all expenses incurred by the Postal
Service in carrying out its functions as provided by law,
subject to the same limitation as set forth in the
parenthetical matter under subsection (a); (B) all expenses
of the Postal Regulatory Commission, subject to the
availability of amounts appropriated under section 504(d);
and (C) all expenses of the Office of Inspector
[[Page H9173]]
General, subject to the availability of amounts appropriated
under section 8G(f) of the Inspector General Act of 1978.''.
(d) Effective Date.--
(1) In general.--The amendments made by this section shall
apply with respect to fiscal years beginning on or after
October 1, 2008.
(2) Savings provision.--The provisions of title 39, United
States Code, and the Inspector General Act of 1978 (5 U.S.C.
App.) that are amended by this section shall, for purposes of
any fiscal year before the first fiscal year to which the
amendments made by this section apply, continue to apply in
the same way as if this section had never been enacted.
SEC. 604. REDESIGNATION OF THE POSTAL RATE COMMISSION.
(a) Amendments to Title 39, United States Code.--Title 39,
United States Code, is amended in sections 404, 503 and 504
(as so redesignated by section 601), 1001 and 1002, by
striking ``Postal Rate Commission'' each place it appears and
inserting ``Postal Regulatory Commission'';
(b) Amendments to Title 5, United States Code.--Title 5,
United States Code, is amended in sections 104(1), 306(f),
2104(b), 3371(3), 5314 (in the item relating to Chairman,
Postal Rate Commission), 5315 (in the item relating to
Members, Postal Rate Commission), 5514(a)(5)(B),
7342(a)(1)(A), 7511(a)(1)(B)(ii), 8402(c)(1), 8423(b)(1)(B),
and 8474(c)(4) by striking ``Postal Rate Commission'' and
inserting ``Postal Regulatory Commission''.
(c) Amendment to the Ethics in Government Act of 1978.--
Section 101(f)(6) of the Ethics in Government Act of 1978 (5
U.S.C. App.) is amended by striking ``Postal Rate
Commission'' and inserting ``Postal Regulatory Commission''.
(d) Amendment to the Rehabilitation Act of 1973.--Section
501(b) of the Rehabilitation Act of 1973 (29 U.S.C. 791(b))
is amended by striking ``Postal Rate Office'' and inserting
``Postal Regulatory Commission''.
(e) Amendment to Title 44, United States Code.--Section
3502(5) of title 44, United States Code, is amended by
striking ``Postal Rate Commission'' and inserting ``Postal
Regulatory Commission''.
(f) Other References.--Whenever a reference is made in any
provision of law (other than this Act or a provision of law
amended by this Act), regulation, rule, document, or other
record of the United States to the Postal Rate Commission,
such reference shall be considered a reference to the Postal
Regulatory Commission.
SEC. 605. INSPECTOR GENERAL OF THE POSTAL REGULATORY
COMMISSION.
(a) In General.--Section 8G(a)(2) 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.
TITLE VII--EVALUATIONS
SEC. 701. 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
Congress concerning--
(1) the operation of the amendments made by this Act; and
(2) recommendations for any legislation or other measures
necessary to improve the effectiveness or efficiency of the
postal laws of the United States.
(b) Postal Service Views.--A report under this section
shall be submitted only after reasonable opportunity has been
afforded to the Postal Service to review the report and to
submit written comments on the report. Any comments timely
received from the Postal Service under the preceding sentence
shall be attached to the report submitted under subsection
(a).
SEC. 702. REPORT ON UNIVERSAL POSTAL SERVICE AND THE POSTAL
MONOPOLY.
(a) Report by the Postal Regulatory Commission.--
(1) In general.--Not later than 24 months after the date of
enactment of this Act, the Postal Regulatory Commission shall
submit a report to the President and Congress on universal
postal service and the postal monopoly in the United States
(in this section referred to as ``universal service and the
postal monopoly''), including the monopoly on the delivery of
mail and on access to mailboxes.
(2) Contents.--The report under this subsection shall
include--
(A) a comprehensive review of the history and development
of universal service and the postal monopoly, including how
the scope and standards of universal service and the postal
monopoly have evolved over time for the Nation and its urban
and rural areas;
(B) the scope and standards of universal service and the
postal monopoly provided under current law (including
sections 101 and 403 of title 39, United States Code), and
current rules, regulations, policy statements, and practices
of the Postal Service;
(C) a description of any geographic areas, populations,
communities (including both urban and rural communities),
organizations, or other groups or entities not currently
covered by universal service or that are covered but that are
receiving services deficient in scope or quality or both; and
(D) the scope and standards of universal service and the
postal monopoly likely to be required in the future in order
to meet the needs and expectations of the United States
public, including all types of mail users, based on
discussion of such assumptions, alternative sets of
assumptions, and analyses as the Postal Service considers
plausible.
(b) Recommended Changes to Universal Service and the
Monopoly.--The Postal Regulatory Commission shall include in
the report under subsection (a), and in all reports submitted
under section 701 of this Act--
(1) any recommended changes to universal service and the
postal monopoly as the Commission considers appropriate,
including changes that the Commission may implement under
current law and changes that would require changes to current
law, with estimated effects of the recommendations on the
service, financial condition, rates, and security of mail
provided by the Postal Service;
(2) with respect to each recommended change described under
paragraph (1)--
(A) an estimate of the costs of the Postal Service
attributable to the obligation to provide universal service
under current law; and
(B) an analysis of the likely benefit of the current postal
monopoly to the ability of the Postal Service to sustain the
current scope and standards of universal service, including
estimates of the financial benefit of the postal monopoly to
the extent practicable, under current law; and
(3) such additional topics and recommendations as the
Commission considers appropriate, with estimated effects of
the recommendations on the service, financial condition,
rates, and the security of mail provided by the Postal
Service.
(c) Consultation.--In preparing the report required by this
section, the Postal Regulatory Commission--
(1) shall solicit written comments from the Postal Service
and consult with the Postal Service and other Federal
agencies, users of the mails, enterprises in the private
sector engaged in the delivery of the mail, and the general
public; and
(2) shall address in the report any written comments
received under this section.
(d) Clarifying Provision.--Nothing in this section shall be
considered to relate to any services that are not postal
services within the meaning of section 102 of title 39,
United States Code, as amended by section 101 of this Act.
SEC. 703. STUDY ON EQUAL APPLICATION OF LAWS TO COMPETITIVE
PRODUCTS.
(a) In General.--The Federal Trade Commission shall prepare
and submit to the President and Congress, and to the Postal
Regulatory Commission, within 1 year after the date of
enactment of this Act, a comprehensive report identifying
Federal and State laws that apply differently to the United
States Postal Service with respect to the competitive
category of mail (within the meaning of section 102 of title
39, United States Code, as amended by section 101) and to
private companies providing similar products.
(b) Recommendations.--The Federal Trade Commission shall
include such recommendations as it considers appropriate for
bringing such legal differences to an end, and in the
interim, to account under section 3633 of title 39, United
States Code (as added by this Act), for the net economic
effects provided by those laws.
(c) Consultation.--In preparing its report, the Federal
Trade Commission shall consult with the United States Postal
Service, the Postal Regulatory Commission, other Federal
agencies, mailers, private companies that provide delivery
services, and the general public, and shall append to such
report any written comments received under this subsection.
(d) Competitive Product Regulation.--The Postal Regulatory
Commission shall take into account the recommendations of the
Federal Trade Commission, and subsequent events that affect
the continuing validity of the estimate of the net economic
effect, in promulgating or revising the regulations required
under section 3633 of title 39, United States Code.
SEC. 704. REPORT ON POSTAL WORKPLACE SAFETY AND WORKPLACE-
RELATED INJURIES.
(a) Report by the Inspector General.--
[[Page H9174]]
(1) In general.--Not later than 6 months after the
enactment of this Act, the Inspector General of the United
States Postal Service shall submit a report to Congress and
the Postal Service that--
(A) details and assesses any progress the Postal Service
has made in improving workplace safety and reducing
workplace-related injuries nationwide; and
(B) identifies opportunities for improvement that remain
with respect to such improvements and reductions.
(2) Contents.--The report under this subsection shall
also--
(A) discuss any injury reduction goals established by the
Postal Service;
(B) describe the actions that the Postal Service has taken
to improve workplace safety and reduce workplace-related
injuries, and assess how successful the Postal Service has
been in meeting its injury reduction goal; and
(C) identify areas where the Postal Service has failed to
meet its injury reduction goals, explain the reasons why
these goals were not met, and identify opportunities for
making further progress in meeting these goals.
(b) Report by the Postal Service.--
(1) Report to congress.--Not later than 6 months after
receiving the report under subsection (a), the Postal Service
shall submit a report to Congress detailing how it plans to
improve workplace safety and reduce workplace-related
injuries nationwide, including goals and metrics.
(2) Problem areas.--The report under this subsection shall
also include plans, developed in consultation with the
Inspector General and employee representatives, including
representatives of each postal labor union and management
association, for addressing the problem areas identified by
the Inspector General in the report under subsection
(a)(2)(C).
SEC. 705. STUDY ON RECYCLED PAPER.
(a) In General.--Within 12 months after the date of
enactment of this Act, the Government Accountability Office
shall study and submit to the Congress, the Board of
Governors of the Postal Service, and to the Postal Regulatory
Commission a report concerning--
(1) a description and analysis of the accomplishments of
the Postal Service in each of the preceding 5 years involving
recycling activities, including efforts by the Postal Service
to recycle undeliverable and discarded mail and other
materials and its public affairs efforts to promote the
increased recycling of paper products; and
(2) additional opportunities that may be available for the
United States Postal Service to engage in recycling
initiatives, including consultation with the paper recycling
industry and encouraging mailers to increase both the
recycling of paper products and the use of recycled paper,
and the projected costs and revenues of undertaking such
opportunities.
(b) Recommendations.--The report shall include
recommendations for any administrative or legislative actions
that may be appropriate.
SEC. 706. GREATER DIVERSITY IN POSTAL SERVICE EXECUTIVE AND
ADMINISTRATIVE SCHEDULE MANAGEMENT POSITIONS.
(a) In General.--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 is practicable, take such measures
as may be necessary to incorporate the affirmative action and
equal opportunity criteria contained in 4313(5) of title 5,
United States Code, into the performance appraisals of senior
supervisory or managerial employees.
SEC. 707. 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. 708. RATES FOR PERIODICALS.
(a) In General.--The United States Postal Service, acting
jointly with the Postal Regulatory Commission, 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.
SEC. 709. 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.
SEC. 710. ASSESSMENT OF FUTURE BUSINESS MODEL OF THE POSTAL
SERVICE.
(a) Government Accountability Office Mandate.--The
Comptroller General of the United States shall prepare and
submit to the President and Congress a report that builds
upon the work of the 2002 President's Commission on the
United States Postal Service by evaluating in-depth various
options and strategies for the long-term structural and
operational reforms of the United States Postal Service. The
final report required by this section shall be submitted
within 5 years of the date of enactment of this Act.
(b) Protection of Universal Service.--The Government
Accountability Office may include such recommendations as it
considers appropriate with respect to how the Postal
Service's business model can be maintained or transformed in
an orderly manner that will minimize adverse effects on all
interested parties and assure continued availability of
affordable, universal postal service throughout the United
States. The Government Accountability Office shall not
consider any strategy or other course of action that would
pose a significant risk to the continued availability of
affordable, universal postal service throughout the United
States.
(c) Elements of Report.--
(1) Topics to address.--The report shall address at least
the following:
(A) Specification of nature and bases of one or more sets
of reasonable assumptions about the development of the postal
services market, to the extent that such assumptions may be
necessary or appropriate for each strategy identified by the
Government Accountability Office.
(B) Specification of the nature and bases of one or more
sets of reasonable assumptions about the development of the
regulatory framework for postal services, to the extent that
such assumptions may be necessary or appropriate for each
strategy identified by the Government Accountability Office.
(C) Qualitative and, to the extent possible, quantitative
effects that each strategy identified by the Government
Accountability Office may have on universal service
generally, the Postal Service, mailers, postal employees,
private companies that provide delivery services, and the
general public.
(D) Financial effects that each strategy identified by the
Government Accountability Office may have on the Postal
Service, postal employees, the Treasury of the United States,
and other affected parties, including the American mailing
consumer.
(E) Feasible and appropriate procedural steps and
timetables for implementing each strategy identified by the
Government Accountability Office.
(F) Such additional topics as the Comptroller General shall
consider necessary and appropriate.
(2) Matters to consider.--For each strategy identified, the
Government Accountability Office shall assess how each
business model might--
(A) address the human-capital challenges facing the Postal
Service, including how employee-management relations within
the Postal Service may be improved;
(B) optimize the postal infrastructure, including the best
methods for providing retail services that ensure convenience
and access to customers;
(C) ensure the safety and security of the mail and of
postal employees;
(D) minimize areas of inefficiency or waste and improve
operations involved in the collection, processing, or
delivery of mail; and
(E) impact other matters that the Comptroller General
determines are relevant to evaluating a viable long-term
business model for the Postal Service.
(3) Experiences of other countries.--In preparing the
report required by subsection (a), the Government
Accountability Office shall comprehensively and
quantitatively investigate the experiences of other
industrialized countries that have transformed the national
post office. The Government Accountability Office shall
undertake such original research as it deems necessary. In
each case, the Government Accountability Office shall
describe as fully as possible the costs and benefits of
transformation of the national post office on all affected
parties and shall identify any lessons that foreign
experience may imply for each strategy identified by the
research organization.
(d) Outside Experts.--In preparing its study, the
Government Accountability Office may retain the services of
additional experts and consultants.
(e) Consultation.--In preparing its report, the Government
Accountability Office shall consult fully with the Postal
Service, the Postal Regulatory Commission, other Federal
agencies, postal employee unions and management associations,
mailers, private companies that provide delivery services,
and the general public. The Government Accountability Office
shall include with its
[[Page H9175]]
final report a copy of all formal written comments received
under this subsection.
(f) Authorization of Appropriations.--There are authorized
to be appropriated from the Postal Service Fund such sums as
may be necessary to carry out this section.
SEC. 711. PROVISIONS RELATING TO COOPERATIVE MAILINGS.
(a) Study.--
(1) In general.--The Postal Regulatory Commission shall
examine section E670.5.3 of the Domestic Mail Manual to
determine whether it contains adequate safeguards to protect
against--
(A) abuses of rates for nonprofit mail; and
(B) deception of consumers.
(2) Report.--The Commission shall report the results of its
examination to the Postal Service, along with any
recommendations that the Commission determines appropriate.
(b) Failure to Act.--If the Postal Service fails to act on
the recommendations of the Commission, the Commission may
take such action as it determines necessary to prevent abuse
of rates or deception of consumers.
SEC. 712. 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.
TITLE VIII--POSTAL SERVICE RETIREMENT AND HEALTH BENEFITS FUNDING
SEC. 801. SHORT TITLE.
This title may be cited as the ``Postal Civil Service
Retirement and Health Benefits Funding Amendments of 2006''.
SEC. 802. CIVIL SERVICE RETIREMENT SYSTEM.
(a) In General.--Chapter 83 of title 5, United States Code,
is amended--
(1) in section 8334(a)(1)(B), by striking clause (ii) and
inserting the following:
``(ii) In the case of an employee of the United States
Postal Service, no amount shall be contributed under this
subparagraph.''; and
(2) by amending section 8348(h) to read as follows:
``(h)(1) In this subsection, the term `Postal surplus or
supplemental liability' means the estimated difference, as
determined by the Office, between--
``(A) the actuarial present value of all future benefits
payable from the Fund under this subchapter to current or
former employees of the United States Postal Service and
attributable to civilian employment with the United States
Postal Service; and
``(B) the sum of--
``(i) the actuarial present value of deductions to be
withheld from the future basic pay of employees of the United
States Postal Service currently subject to this subchapter
under section 8334;
``(ii) that portion of the Fund balance, as of the date the
Postal surplus or supplemental liability is determined,
attributable to payments to the Fund by the United States
Postal Service and its employees, minus benefit payments
attributable to civilian employment with the United States
Postal Service, plus the earnings on such amounts while in
the Fund; and
``(iii) any other appropriate amount, as determined by the
Office in accordance with generally accepted actuarial
practices and principles.
``(2)(A) Not later than June 15, 2007, the Office shall
determine the Postal surplus or supplemental liability, as of
September 30, 2006. If that result is a surplus, the amount
of the surplus shall be transferred to the Postal Service
Retiree Health Benefits Fund established under section 8909a
by June 30, 2007.
``(B) The Office shall redetermine the Postal surplus or
supplemental liability as of the close of the fiscal year,
for each fiscal year beginning after September 30, 2007,
through the fiscal year ending September 30, 2038. If the
result is a surplus, that amount shall remain in the Fund
until distribution is authorized under subparagraph (C).
Beginning June 15, 2017, if the result is a supplemental
liability, the Office shall establish an amortization
schedule, including a series of annual installments
commencing on September 30 of the subsequent fiscal year,
which provides for the liquidation of such liability by
September 30, 2043.
``(C) As of the close of the fiscal years ending September
30, 2015, 2025, 2035, and 2039, if the result is a surplus,
that amount shall be transferred to the Postal Service
Retiree Health Benefits Fund, and any prior amortization
schedule for payments shall be terminated.
``(D) Amortization schedules established under this
paragraph shall be set in accordance with generally accepted
actuarial practices and principles, with interest computed at
the rate used in the most recent valuation of the Civil
Service Retirement System.
``(E) The United States Postal Service shall pay the
amounts so determined to the Office, with payments due not
later than the date scheduled by the Office.
``(3) Notwithstanding any other provision of law, in
computing the amount of any payment under any other
subsection of this section that is based upon the amount of
the unfunded liability, such payment shall be computed
disregarding that portion of the unfunded liability that the
Office determines will be liquidated by payments under this
subsection.''.
(b) Credit Allowed for Military Service.--In the
application of section 8348(g)(2) of title 5, United States
Code, for the fiscal year 2007, the Office of Personnel
Management shall include, in addition to the amount otherwise
computed under that paragraph, the amounts that would have
been included for the fiscal years 2003 through 2006 with
respect to credit for military service of former employees of
the United States Postal Service as though the Postal Civil
Service Retirement System Funding Reform Act of 2003 (Public
Law 108-18) had not been enacted, and the Secretary of the
Treasury shall make the required transfer to the Civil
Service Retirement and Disability Fund based on that amount.
(c) Review.--
(1) In general.--
(A) Request for review.--Notwithstanding any other
provision of this section (including any amendment made by
this section), any determination or redetermination made by
the Office of Personnel Management under this section
(including any amendment made by this section) shall, upon
request of the United States Postal Service, be subject to a
review by the Postal Regulatory Commission under this
subsection.
(B) Report.--Upon receiving a request under subparagraph
(A), the Commission shall promptly procure the services of an
actuary, who shall hold membership in the American Academy of
Actuaries and shall be qualified in the evaluation of pension
obligations, to conduct a review in accordance with generally
accepted actuarial practices and principles and to provide a
report to the Commission containing the results of the
review. The Commission, upon determining that the report
satisfies the requirements of this paragraph, shall approve
the report, with any comments it may choose to make, and
submit it with any such comments to the Postal Service, the
Office of Personnel Management, and Congress.
(2) Reconsideration.--Upon receiving the report from the
Commission under paragraph (1), the Office of Personnel
Management shall reconsider its determination or
redetermination in light of such report, and shall make any
appropriate adjustments. The Office shall submit a report
containing the results of its reconsideration to the
Commission, the Postal Service, and Congress.
SEC. 803. HEALTH INSURANCE.
(a) In General.--
(1) Funding.--Chapter 89 of title 5, United States Code, is
amended--
(A) in section 8906(g)(2)(A), by striking ``shall be paid
by the United States Postal Service.'' and inserting ``shall
through September 30, 2016, be paid by the United States
Postal Service, and thereafter shall be paid first from the
Postal Service Retiree Health Benefits Fund up to the amount
contained in the Fund, with any remaining amount paid by the
United States Postal Service.''; and
(B) by inserting after section 8909 the following:
``Sec. 8909a. Postal Service Retiree Health Benefit Fund
``(a) There is in the Treasury of the United States a
Postal Service Retiree Health Benefits Fund which is
administered by the Office of Personnel Management.
``(b) The Fund is available without fiscal year limitation
for payments required under section 8906(g)(2)(A).
``(c) The Secretary of the Treasury shall immediately
invest, in interest-bearing securities of the United States
such currently available portions of the Fund as are not
immediately required for payments from the Fund. Such
investments shall be made in the same manner as investments
for the Civil Service Retirement and Disability Fund under
section 8348.
``(d)(1) Not later than June 30, 2007, and by June 30 of
each succeeding year, the Office shall compute the net
present value of the future payments required under section
8906(g)(2)(A) and attributable to the service of Postal
Service employees during the most recently ended fiscal year.
``(2)(A) Not later than June 30, 2007, the Office shall
compute, and by June 30 of each succeeding year, the Office
shall recompute the difference between--
``(i) the net present value of the excess of future
payments required under section 8906(g)(2)(A) for current and
future United States Postal Service annuitants as of the end
of the fiscal year ending on September 30 of that year; and
``(ii)(I) the value of the assets of the Postal Retiree
Health Benefits Fund as of the end of the fiscal year ending
on September 30 of that year; and
``(II) the net present value computed under paragraph (1).
``(B) Not later than June 30, 2017, the Office shall
compute, and by June 30 of each succeeding year shall
recompute, a schedule including a series of annual
installments which provide for the liquidation of any
liability or surplus by September 30, 2056, or within 15
years, whichever is later, of the net present value
determined under subparagraph (A), including interest at the
rate used in that computation.
``(3)(A) The United States Postal Service shall pay into
such Fund--
``(i) $5,400,000,000, not later than September 30, 2007;
``(ii) $5,600,000,000, not later than September 30, 2008;
``(iii) $5,400,000,000, not later than September 30, 2009;
``(iv) $5,500,000,000, not later than September 30, 2010;
``(v) $5,500,000,000, not later than September 30, 2011;
``(vi) $5,600,000,000, not later than September 30, 2012;
``(vii) $5,600,000,000, not later than September 30, 2013;
[[Page H9176]]
``(viii) $5,700,000,000, not later than September 30, 2014;
``(ix) $5,700,000,000, not later than September 30, 2015;
and
``(x) $5,800,000,000, not later than September 30, 2016.
``(B) Not later than September 30, 2017, and by September
30 of each succeeding year, the United States Postal Service
shall pay into such Fund the sum of--
``(i) the net present value computed under paragraph (1);
and
``(ii) any annual installment computed under paragraph
(2)(B).
``(4) Computations under this subsection shall be made
consistent with the assumptions and methodology used by the
Office for financial reporting under subchapter II of chapter
35 of title 31.
``(5)(A)(i) Any computation or other determination of the
Office under this subsection shall, upon request of the
United States Postal Service, be subject to a review by the
Postal Regulatory Commission under this paragraph.
``(ii) Upon receiving a request under clause (i), the
Commission shall promptly procure the services of an actuary,
who shall hold membership in the American Academy of
Actuaries and shall be qualified in the evaluation of
healthcare insurance obligations, to conduct a review in
accordance with generally accepted actuarial practices and
principles and to provide a report to the Commission
containing the results of the review. The Commission, upon
determining that the report satisfies the requirements of
this subparagraph, shall approve the report, with any
comments it may choose to make, and submit it with any such
comments to the Postal Service, the Office of Personnel
Management, and Congress.
``(B) Upon receiving the report under subparagraph (A), the
Office of Personnel Management shall reconsider its
determination or redetermination in light of such report, and
shall make any appropriate adjustments. The Office shall
submit a report containing the results of its reconsideration
to the Commission, the Postal Service, and Congress.
``(6) After consultation with the United States Postal
Service, the Office shall promulgate any regulations the
Office determines necessary under this subsection.''.
(2) Technical and conforming amendment.--The table of
sections for chapter 89 of title 5, United States Code, is
amended by inserting after the item relating to section 8909
the following:
``8909a. Postal Service Retiree Health Benefits Fund.''.
(b) Review.--
(1) In general.--
(A) Request for review.--Any regulation established under
section 8909a(d)(5) of title 5, United States Code (as added
by subsection (a)), shall, upon request of the United States
Postal Service, be subject to a review by the Postal
Regulatory Commission under this paragraph.
(B) Report.--Upon receiving a request under subparagraph
(A), the Commission shall promptly procure the services of an
actuary, who shall hold membership in the American Academy of
Actuaries and shall be qualified in the evaluation of
healthcare insurance obligations, to conduct a review in
accordance with generally accepted actuarial practices and
principles and to provide a report to the Commission
containing the results of the review. The Commission, upon
determining that the report satisfies the requirements of
this paragraph, shall approve the report, with any comments
it may choose to make, and submit it with any such comments
to the Postal Service, the Office of Personnel Management,
and Congress.
(2) Reconsideration.--Upon receiving the report under
paragraph (1), the Office of Personnel Management shall
reconsider its determination or redetermination in light of
such report, and shall make any appropriate adjustments. The
Office shall submit a report containing the results of its
reconsideration to the Commission, the Postal Service, and
Congress.
SEC. 804. REPEAL OF DISPOSITION OF SAVINGS PROVISION.
(a) In General.--Section 3 of the Postal Civil Service
Retirement System Funding Reform Act of 2003 (Public Law 108-
18) is repealed.
(b) Savings.--Savings accrued to the Postal Service as a
result of enactment of Public Law 108-18 and attributable to
fiscal year 2006 shall be transferred to the Postal Service
Retiree Health Benefits Fund established under section 8909a
of title 5, United States Code, as added by section 803 of
this Act.
SEC. 805. EFFECTIVE DATES.
(a) In General.--Except as provided under subsection (b),
this title shall take effect on October 1, 2006.
(b) Termination of Employer Contribution.--The amendment
made by paragraph (1) of section 802(a) shall take effect on
the first day of the first pay period beginning on or after
October 1, 2006.
TITLE IX--COMPENSATION FOR WORK INJURIES
SEC. 901. TEMPORARY DISABILITY; CONTINUATION OF PAY.
(a) Time of Accrual of Right.--Section 8117 of title 5,
United States Code, is amended--
(1) by striking ``An employee'' and inserting ``(a) An
employee other than a Postal Service employee''; and
(2) by adding at the end the following:
``(b) A Postal Service employee is not entitled to
compensation or continuation of pay for the first 3 days of
temporary disability, except as provided under paragraph (3)
of subsection (a). A Postal Service employee may use annual
leave, sick leave, or leave without pay during that 3-day
period, except that if the disability exceeds 14 days or is
followed by permanent disability, the employee may have their
sick leave or annual leave reinstated or receive pay for the
time spent on leave without pay under this section.''.
(b) Technical and Conforming Amendment.--Section 8118(b)(1)
of title 5, United States Code, is amended to read as
follows:
``(1) without a break in time, except as provided under
section 8117(b), unless controverted under regulations of the
Secretary;''.
TITLE X--MISCELLANEOUS
SEC. 1001. EMPLOYMENT OF POSTAL POLICE OFFICERS.
Section 3061 of title 18, United States Code, is amended by
adding at the end the following:
``(c)(1) The Postal Service may employ police officers for
duty in connection with the protection of property owned or
occupied by the Postal Service or under the charge and
control of the Postal Service, and persons on that property,
including duty in areas outside the property to the extent
necessary to protect the property and persons on the
property.
``(2) With respect to such property, such officers shall
have the power to--
``(A) enforce Federal laws and regulations for the
protection of persons and property;
``(B) carry firearms; and
``(C) make arrests without a warrant for any offense
against the Unites States committed in the presence of the
officer or for any felony cognizable under the laws of the
United States if the officer has reasonable grounds to
believe that the person to be arrested has committed or is
committing a felony.
``(3) With respect to such property, such officers may
have, to such extent as the Postal Service may by regulations
prescribe, the power to--
``(A) serve warrants and subpoenas issued under the
authority of the United States; and
``(B) conduct investigations, on and off the property in
question, of offenses that may have been committed against
property owned or occupied by the Postal Service or persons
on the property.
``(4)(A) As to such property, the Postmaster General may
prescribe regulations necessary for the protection and
administration of property owned or occupied by the Postal
Service and persons on the property. The regulations may
include reasonable penalties, within the limits prescribed in
subparagraph (B), for violations of the regulations. The
regulations shall be posted and remain posted in a
conspicuous place on the property.
``(B) A person violating a regulation prescribed under this
subsection shall be fined under this title, imprisoned for
not more than 30 days, or both.''.
SEC. 1002. OBSOLETE PROVISIONS.
(a) Repeal.--
(1) In general.--Chapter 52 of title 39, United States
Code, is repealed.
(2) Conforming amendments.--(A) Section 5005(a) of title
39, United States Code, is amended--
(i) by striking paragraph (1), and by redesignating
paragraphs (2) through (4) as paragraphs (1) through (3),
respectively; and
(ii) in paragraph (3) (as so designated by clause (i)), by
striking ``(as defined in section 5201(6) of this title)''.
(B) Section 5005(b) of such title 39 is amended by striking
``(a)(4)'' each place it appears and inserting ``(a)(3)''.
(C) Section 5005(c) of such title 39 is amended by striking
``by carrier or person under subsection (a)(1) of this
section, by contract under subsection (a)(4) of this section,
or'' and inserting ``by contract under subsection (a)(3) of
this section or''.
(b) Eliminating Restriction on Length of Contracts.--(1)
Section 5005(b)(1) of title 39, United States Code, is
amended by striking ``(or where the Postal Service determines
that special conditions or the use of special equipment
warrants, not in excess of 6 years)'' and inserting ``(or
such longer period of time as may be determined by the Postal
Service to be advisable or appropriate)''.
(2) Section 5402(d) of such title 39 is amended by striking
``for a period of not more than 4 years''.
(3) Section 5605 of such title 39 is amended by striking
``for periods of not in excess of 4 years''.
(c) Technical and Conforming Amendment.--The table of
chapters for part V of title 39, United States Code, is
amended by repealing the item relating to chapter 52.
SEC. 1003. REDUCED RATES.
Section 3626 of title 39, United States Code, is amended--
(1) in subsection (a), by striking all before paragraph (4)
and inserting the following:
``(a)(1) Except as otherwise provided in this section,
rates of postage for a class of mail or kind of mailer under
former section 4358, 4452(b), 4452(c), 4554(b), or 4554(c) of
this title shall be established in accordance with section
3622.
``(2) For the purpose of this subsection, the term
`regular-rate category' means any class of mail or kind of
mailer, other than a class or kind referred to in section
2401(c).
[[Page H9177]]
``(3) Rates of postage for a class of mail or kind of
mailer under former section 4358(a) through (c) of this title
shall be established so that postage on each mailing of such
mail reflects its preferred status as compared to the postage
for the most closely corresponding regular-rate category
mailing.'';
(2) in subsection (g), by adding at the end the following:
``(3) For purposes of this section and former section
4358(a) through (c) of this title, those copies of an issue
of a publication entered within the county in which it is
published, but distributed outside such county on postal
carrier routes originating in the county of publication,
shall be treated as if they were distributed within the
county of publication.
``(4)(A) In the case of an issue of a publication, any
number of copies of which are mailed at the rates of postage
for a class of mail or kind of mailer under former section
4358(a) through (c) of this title, any copies of such issue
which are distributed outside the county of publication
(excluding any copies subject to paragraph (3)) shall be
subject to rates of postage provided for under this
paragraph.
``(B) The rates of postage applicable to mail under this
paragraph shall be established in accordance with section
3622.
``(C) This paragraph shall not apply with respect to an
issue of a publication unless the total paid circulation of
such issue outside the county of publication (not counting
recipients of copies subject to paragraph (3)) is less than
5,000.''; and
(3) by adding at the end the following:
``(n) In the administration of this section, matter that
satisfies the circulation standards for requester
publications shall not be excluded from being mailed at the
rates for mail under former section 4358 solely because such
matter is designed primarily for free circulation or for
circulation at nominal rates, or fails to meet the
requirements of former section 4354(a)(5).''.
SEC. 1004. SENSE OF CONGRESS REGARDING POSTAL SERVICE
PURCHASING REFORM.
It is the sense of Congress that the Postal Service
should--
(1) ensure the fair and consistent treatment of suppliers
and contractors in its current purchasing policies and any
revision or replacement of such policies, such as through the
use of competitive contract award procedures, effective
dispute resolution mechanisms, and socioeconomic programs;
and
(2) implement commercial best practices in Postal Service
purchasing policies to achieve greater efficiency and cost
savings by taking full advantage of private-sector
partnerships as recommended in July 2003 by the President's
Commission on the United States Postal Service.
SEC. 1005. CONTRACTS FOR TRANSPORTATION OF MAIL BY AIR.
(a) Definitions.--Section 5402(a) of title 39, United
States Code, is amended--
(1) in paragraph (4), by striking ``(g)(1)(D)(i)'' and
inserting ``(g)(1)(A)(iv)(I)'';
(2) in paragraph (5), by striking ``(g)(1)(D)(i)'' and
inserting ``(g)(1)(A)(iv)(I)'';
(3) in paragraph (8), by striking ``rates paid to a bush
carrier'' and inserting ``linehaul rates and a single
terminal handling payment at a bush terminal handling rate
paid to a bush carrier'';
(4) in paragraph (11), by striking ``(g)(1)(D)(ii)'' and
inserting ``(g)(1)(A)(iv)(II)''; and
(5) in paragraph (13)--
(A) in subparagraph (A)--
(i) by striking ``clause (i) or (ii) of subsection
(g)(1)(D)'' and inserting ``subclause (I) or (II) of
subsection (g)(1)(A)(iv)''; and
(ii) by striking ``and'' after the semicolon;
(B) in subparagraph (B), by adding ``and'' after the
semicolon; and
(C) by adding at the end the following:
``(C) is not comprised of previously qualified existing
mainline carriers as a result of merger or sale;''.
(b) Nonpriority Bypass Mail.--Section 5402(g) of title 39,
United States Code, is amended--
(1) in paragraph (3), by adding at the end the following:
``(C) When a new hub results from a change in a
determination under subparagraph (B), mail tender from that
hub during the 12-month period beginning on the effective
date of that change shall be based on the passenger and
freight shares to the destinations of the affected hub or
hubs resulting in the new hub.''; and
(2) in paragraph (5)(A)(i), by striking ``(g)(1)(D)(ii)''
and inserting ``(g)(1)(A)(iv)(II)''.
(c) Equitable Tender.--Section 5402(h) of title 39, United
States Code, is amended--
(1) in paragraph (1), by inserting ``bush'' after
``providing scheduled'';
(2) by striking paragraph (3) and inserting the following:
``(3)(A) Except as provided under subparagraph (C), a new
or existing 121 bush passenger carrier qualified under
subsection (g)(1) shall be exempt from the requirements under
paragraphs (1)(B) and (2)(A) on a city pair route for a
period which shall extend for--
``(i) 1 year;
``(ii) 1 year in addition to the extension under clause (i)
if, as of the conclusion of the first year, such carrier has
been providing not less than 5 percent of the passenger
service on that route (as calculated under paragraph (5));
and
``(iii) 1 year in addition to the extension under clause
(ii) if, as of the conclusion of the second year, such
carrier has been providing not less than 10 percent of the
passenger service on that route (as calculated under
paragraph (5)).
``(B)(i) The first 3 121 bush passenger carriers entitled
to the exemptions under subparagraph (A) on any city pair
route shall divide no more than an additional 10 percent of
the mail, apportioned equally, comprised of no more than--
``(I) 5 percent of the share of each qualified passenger
carrier servicing that route that is not a 121 bush passenger
carrier; and
``(II) 5 percent of the share of each nonpassenger carrier
servicing that route that transports 25 percent or more of
the total nonmail freight under subsection (i)(1).
``(ii) Additional 121 bush passenger carriers entering
service on that city pair route after the first 3 shall not
receive any additional mail share.
``(iii) If any 121 bush passenger carrier on a city pair
route receiving an additional share of the mail under clause
(ii) discontinues service on that route, the 121 bush
passenger carrier that has been providing the longest period
of service on that route and is otherwise eligible but is not
receiving a share by reason of clause (ii), shall receive the
share of the carrier discontinuing service.
``(C) Notwithstanding the requirements of this subsection,
if only 1 passenger carrier or aircraft is qualified to be
tendered nonpriority bypass mail as a passenger carrier or
aircraft on a city pair route in the State of Alaska, the
Postal Service shall tender 20 percent of the nonpriority
bypass mail described under paragraph (1) to the passenger
carrier or aircraft providing at least 10 percent of the
passenger service on such route.'';
(3) in paragraph (5)(A)--
(A) by striking ``(i)'' after ``(A)''; and
(B) by striking clause (ii).
(d) Percent of Nonmail Freight.--Section 5402(i)(6) of
title 39, United States Code, is amended--
(1) by striking ``(A)'' after ``(6)''; and
(2) by striking subparagraph (B).
(e) Percent of Tender Rate.--Section 5402(j)(3)(B) of title
39, United States Code, is amended by striking ``bush routes
in the State of Alaska'' and inserting ``routes served
exclusively by bush carriers in the State of Alaska''.
(f) Determination of Rates.--Section 5402(k) of title 39,
United States Code, is amended by striking paragraph (5).
(g) Technical and Conforming Amendment.--Section 5402(p)(3)
of title 39, United States Code, is amended by striking
``(g)(1)(D)'' and inserting ``(g)(1)(A)(iv)''.
(h) Effective Date.--
(1) In general.--Except as provided under paragraph (2),
this section shall take effect on the date of enactment of
this Act.
(2) Equitable tender.--Subsection (c) shall take effect on
December 1, 2006.
SEC. 1006. 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. 1007. 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 be effective as of the first day of the
fiscal year in which this Act is enacted.
SEC. 1008. HAZARDOUS MATTER.
(a) Nonmailability Generally.--Section 3001 of title 39,
United States Code, is amended--
(1) by redesignating subsection (n) as subsection (o); and
(2) by inserting after subsection (m) the following:
``(n)(1) Except as otherwise authorized by law or
regulations of the Postal Service, hazardous material is
nonmailable.
[[Page H9178]]
``(2) In this subsection, the term `hazardous material'
means a substance or material designated by the Secretary of
Transportation under section 5103(a) of title 49.''.
(b) Mailability.--Chapter 30 of title 39, United States
Code, is amended by adding at the end the following:
``Sec. 3018. Hazardous material
``(a) In General.--The Postal Service shall prescribe
regulations for the safe transportation of hazardous material
in the mail.
``(b) Prohibitions.--No person may--
``(1) mail or cause to be mailed hazardous material that
has been declared by statute or Postal Service regulation to
be nonmailable;
``(2) mail or cause to be mailed hazardous material in
violation of any statute or Postal Service regulation
restricting the time, place, or manner in which hazardous
material may be mailed; or
``(3) manufacture, distribute, or sell any container,
packaging kit, or similar device that--
``(A) is represented, marked, certified, or sold by such
person for use in the mailing of hazardous material; and
``(B) fails to conform with any statute or Postal Service
regulation setting forth standards for a container, packaging
kit, or similar device used for the mailing of hazardous
material.
``(c) Civil Penalty; Clean-Up Costs and Damages.--
``(1) In general.--A person who knowingly violates this
section or a regulation prescribed under this section shall
be liable for--
``(A) a civil penalty of at least $250, but not more than
$100,000, for each violation;
``(B) the costs of any clean-up associated with each
violation; and
``(C) damages.
``(2) Knowing action.--A person acts knowingly for purposes
of paragraph (1) when--
``(A) the person has actual knowledge of the facts giving
rise to the violation; or
``(B) a reasonable person acting in the circumstances and
exercising reasonable care would have had that knowledge.
``(3) Separate violations.--
``(A) Violations over time.--A separate violation under
this subsection occurs for each day hazardous material,
mailed or caused to be mailed in noncompliance with this
section, is in the mail.
``(B) Separate items.--A separate violation under this
subsection occurs for each item containing hazardous material
that is mailed or caused to be mailed in noncompliance with
this section.
``(d) Hearings.--The Postal Service may determine that a
person has violated this section or a regulation prescribed
under this section only after notice and an opportunity for a
hearing. Proceedings under this section shall be conducted in
accordance with section 3001(m).
``(e) Penalty Considerations.--In determining the amount of
a civil penalty for a violation of this section, the Postal
Service shall consider--
``(1) the nature, circumstances, extent, and gravity of the
violation;
``(2) with respect to the person who committed the
violation, the degree of culpability, any history of prior
violations, the ability to pay, and any effect on the ability
to continue in business;
``(3) the impact on Postal Service operations; and
``(4) any other matters that justice requires.
``(f) Civil Actions To Collect.--
``(1) In general.--In accordance with section 409(d), a
civil action may be commenced in an appropriate district
court of the United States to collect a civil penalty, clean-
up costs, and damages assessed under subsection (c).
``(2) Compromise.--The Postal Service may compromise the
amount of a civil penalty, clean-up costs, and damages
assessed under subsection (c) before commencing a civil
action with respect to such civil penalty, clean-up costs,
and damages under paragraph (1).
``(g) Civil Judicial Penalties.--
``(1) In general.--At the request of the Postal Service,
the Attorney General may bring a civil action in an
appropriate district court of the United States to enforce
this section or a regulation prescribed under this section.
``(2) Relief.--The court in a civil action under paragraph
(1) may award appropriate relief, including a temporary or
permanent injunction, civil penalties as determined in
accordance with this section, or punitive damages.
``(3) Construction.--A civil action under this subsection
shall be in lieu of civil penalties for the same violation
under subsection (c)(1)(A).
``(h) Deposit of Amounts Collected.--
``(1) Postal service fund.--Except as provided under
paragraph (2), amounts collected under subsection (c)(1)(B)
and (C) shall be deposited into the Postal Service Fund under
section 2003.
``(2) Treasury.--Amounts collected under subsection
(c)(1)(A) and any punitive damages collected under subsection
(c)(1)(C) shall be deposited into the Treasury of the United
States.''.
(c) Conforming Amendments.--(1) Section 2003(b) of title
39, United States Code, is amended--
(A) in paragraph (7), by striking ``and'' after the
semicolon;
(B) in paragraph (8), by striking ``purposes.'' and
inserting ``purposes; and''; and
(C) by adding at the end the following:
``(9) any amounts collected under section 3018.''.
(2) The analysis for chapter 30 of title 39, United States
Code, is amended by adding at the end the following:
``3018. Hazardous material.''.
(d) Injurious Articles as Nonmailable.--Section 1716(a) of
title 18, United States Code, is amended by inserting after
``explosives,'' the following: ``hazardous materials,''.
SEC. 1009. ZIP CODES AND RETAIL HOURS.
(a) ZIP Codes.--Not later than September 30, 2007, the
United States Postal Service shall assign a single, unified
ZIP code to serve, as nearly as practicable, each of the
following communities:
(1) Auburn Township, Ohio.
(2) Hanahan, South Carolina.
(3) Bradbury, California.
(4) Discovery Bay, California.
(b) Retail Hours.--Not later than 60 days after the date of
the enactment of this Act, the United States Postal Service
shall provide the same window service hours for the Fairport
Harbor Branch of the United States Post Office in
Painesville, Ohio, as were in effect as of December 1, 2005.
SEC. 1010. TECHNICAL AND CONFORMING AMENDMENTS.
(a) Reimbursement.--Section 3681 of title 39, United States
Code, is amended by striking ``section 3628'' and inserting
``sections 3662 through 3664''.
(b) 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.''.
(c) 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)''.
(d) 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)''.
(e) 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.''.
(f) Limitations.--Section 3684 of title 39, United States
Code, is amended by striking all that follows ``any
provision'' and inserting ``of this title.''.
(g) Miscellaneous.--Title 39, United States Code, is
amended--
(1) in section 1005(d)(2)--
(A) by striking ``subsection (g) of section 5532,''; and
(B) by striking ``8344,'' and inserting ``8344'';
(2) 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'';
(3) in section 3005(a)--
(A) in the matter before paragraph (1), by striking all
that follows ``nonmailable'' and
[[Page H9179]]
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),'';
(4) 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''; and
(5) by striking the heading for section 3627 and inserting
the following:
``Sec. 3627. Adjusting free rates''.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Virginia (Mr. Tom Davis) and the gentleman from Illinois (Mr. Davis)
each will control 20 minutes.
The Chair recognizes the gentleman from Virginia.
General Leave
Mr. TOM DAVIS of Virginia. Mr. Speaker, I ask unanimous consent that
all Members may have 5 legislative days within which to revise and
extend their remarks and include extraneous material on the bill under
consideration.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Virginia?
There was no objection.
Mr. TOM DAVIS of Virginia. Mr. Speaker, I yield myself such time as I
may consume.
Mr. Speaker, I rise today in support of H.R. 6407, the Postal
Accountability and Enhancement Act. This is the first major overhaul of
the Postal Service since 1970. The House passed its version of postal
reform in July of 2005 by a vote of 410-20. The Senate passed its
version in February by unanimous consent.
This bill is the product of months of negotiations between the House
and the Senate and the administration. It is also the culmination of
more than a decade of hard work and study, not to mention a great deal
of bipartisan negotiation and cooperation.
{time} 2215
Mr. Speaker, this bill is the product of months of negotiations
between the House, the Senate and the administration. It is also the
culmination of more than a decade of hard work and study, not to
mention a great deal of bipartisan negotiation and cooperation. The
landmark legislation solves the structural, legal and financial
constraints that have brought the postal service to the brink of utter
breakdown.
The postal service is the center of a $900 billion industry,
employing 9 million workers nationwide. Each year, the U.S.P.S.
processes and delivers over 200 million pieces of mail to more than 130
million households and businesses in the United States, but the last
major overhaul of the statutes governing the postal service occurred in
1970 before the Internet and e-mails and faxes, before letters became
snail mail, before the deregulation of the airline industry, before
competitors like FedEx even existed.
Today, this critical component of our Nation's economy is being
challenged by a variety of factors, including increasing volume,
insufficient revenue, mounting debts and new technologies such as the
Internet advertising, electronic bill payments, e-mails and faxes.
As a result, the GAO has included the postal service on its high-risk
series since 2001. This compromise will reverse the death spiral at the
postal service and bring the postal service into the 21st century.
I want to take this opportunity to thank Congressman John McHugh of
New York who recognized the need for comprehensive postal reform
legislation when he became chairman of this subcommittee at the
beginning of the 104th Congress and has championed reform tirelessly. I
also want to thank Henry Waxman and Danny Davis for their dedication to
this subject and their willingness to cooperate in a bipartisan manner.
I want to thank the principal sponsors in the Senate, Susan Collins
of Maine and Tom Carper of Delaware. Without their leadership and
dedication, this compromise would not have been possible.
Finally, I want to thank the many members of our staff who have
worked on this important issue: Jack Callender, Ellen Brown, and Mason
Alinger of my committee staff; also Robert Taub of Congressman McHugh's
staff who has dedicated years of his life to this cause; and also Phil
Barnett, Denise Wilson, and Naomi Seiler of Congressman Waxman's staff;
Jill Hunter-Williams of Congressman Danny Davis' staff; and Ann Fisher
of Senator Collins' and John Kilvington of Senator Carper's staff.
I also want to thank all those individuals in the administration that
have actively and tirelessly participated in the negotiations to help
us reach this point today, especially Michael Bopp, Jeff Sharpe and
Chris Frech.
Mr. Speaker, all the stakeholders in this legislation, postal
employees, financial services companies, major marketers, have been
rigorous in urging Congress and the administration to complete this
bill. No one thinks it is perfect. This is the nature of compromise,
but everyone, especially all Americans who use stamps, will be
significantly better off with this legislation than they would be
without this long overdue package of reforms.
I urge my colleagues to support this important legislation.
Mr. Speaker, I reserve the balance of my time.
Mr. DAVIS of Illinois. Mr. Speaker, I yield myself such time as I
might consume.
Mr. Speaker, I rise in strong support of this landmark postal reform
bill. Members of the House have worked for over a decade to reform this
important part of our national communications system and our economy. I
am indeed pleased to serve in the Congress that is making this reform a
reality.
I want to commend and congratulate Chairman Tom Davis and Ranking
Member Henry Waxman for their tremendous commitment and dedication to
making this truly a bipartisan effort and for the tenacious way in
which they have worked to bring us to this point this evening.
I also want to commend Representative McHugh who has been the point
person for the Republican side of the aisle on this matter for more
than 10 years, who has stayed with it, stuck with it, and one of the
reasons that we are here today is because of his tenacious work.
I also want to thank all of the stakeholders, the unions, the mailers
and others, who are greatly affected.
I want to thank the Board of Governors and the Postmaster General,
Mr. Potter, for their willingness to work with us.
And I want to think the other body, the Members of the Senate who
were willing to negotiate, to engage in the give-and-take that is so
necessary to make bipartisan, bicameral legislation a reality.
This bill is a prime example of bipartisan negotiation and
collaboration. It is a compromise that will modernize the postal system
and help it remain healthy and affordable well into the 21st century.
I represent much of the city of Chicago, one of the primary postal
hubs in the Midwest with over 12,000 postal employees who deliver mail
daily to 1.2 million homes and businesses in the Chicago area. I also
represent numerous printing and mailing companies that rely upon the
movement of mail. Therefore, ensuring a healthy postal service is a key
issue of great concern to me.
This bill has many highlights. It provides for ratemaking
flexibility, rate stability, universal service, high quality standards,
and collective bargaining.
In addition, I am pleased that the bill advances fair business
practices related to employees who are women and/or racial minorities.
For example, I am pleased that it includes a study on the
representation of women and minority members in supervisory and
management positions within the postal service. It is important to
understand how well the postal service is doing in opening up its
senior positions to groups who historically have not had that kind of
access.
The bill goes even further by requiring measures to incorporate the
affirmative action and equal opportunity criteria into the performance
appraisals of senior supervisory or managerial employees. This change
helps ensure that management will be held accountable for adhering to
the organization's goals of equal opportunity. And I want to sincerely
thank Mr. Waxman for his vigorous support for this diversity provision.
I am also pleased that the bill includes a study of the number of
contracts with women, minorities and small businesses to ensure that
all
[[Page H9180]]
groups have access to the postal service contracts.
Mr. Speaker, these are just some of the provisions that will go a
long way towards helping the postal service to better serve its
customers, compete fairly with the mailing industry, and contribute to
our Nation.
I especially want to thank the committee staff, Phil Barnett, Denise
Wilson, Naomi Seiler, and all of the staff persons who worked to make
this a reality.
I want to thank Ellen Brown, Jack Callender, Robert Taub and my
staff, Richard Boykin and Jill Hunter-Williams.
Mr. Speaker, it is obviously time for postal reform. We have gone
through this now for several years, and all of us who have worked on it
are indeed pleased with the fact that we were able to compromise, to
come together, to massage egos, to make real the idea that we can have
a solid piece of legislation. I am proud to support it.
Mr. Speaker, I reserve the balance of my time.
Mr. TOM DAVIS of Virginia. Mr. Speaker, I yield 5 minutes to the
gentleman from New York (Mr. McHugh).
Mr. McHUGH. Mr. Speaker, I thank the chairman.
I had a friend of mine say the other day, gee, 11\1/2\ years
dedicated to one issue, that is a long time. My observation was, there
are people in certain jurisdictions in this country that have spent
less time for committing murder than I have spent on this bill. I am
not sure what the parallel there is, but if there is any truth in the
old adage that anything worth having is worth waiting for, this is a
very, very good night.
This is an excellent bill. It is not a perfect bill, but the fact
that you can take the mix of interests that is represented in this
piece of legislation, unions, mailers, postal dependents and postal
competitive industries, the postal service itself, and have them
virtually uniformly and universally support it suggests that it is a
remarkable achievement.
In that regard, I want to thank so many people: former Chairman Bill
Clinger who first presented me the challenge and the opportunity of
advancing this initiative; then, of course, Dan Burton, the follow-on
chairman, the gentleman from Indiana, who kept it alive; and most
recently, most importantly, the gentleman from Virginia (Mr. Tom Davis)
who really pushed it over the goal line. We are all deeply in his debt.
The minority as well: Henry Waxman; Danny Davis, the gentleman who
tonight is managing this bill very appropriately, as he has managed the
affairs from the minority side on this issue so very, very ably; Chaka
Fattah, who was the ranking member when we really got into the meat of
this issue; Barbara Rose Collins, the first ranking member, and on and
on and on.
But most of all, those who had the greatest stake in this initiative,
the unions, the postal service, Jack Potter, the mailers, the mailing
dependent mailers, those in the competitive industry, those who
understood that for whatever their differences might be, their need for
a common cause, their need for reform should override all of it. And at
the end of the day, as we see here tonight, they put that aside.
Special thanks to the staff. They are the folks who, whatever the
endeavor in this House, are really the ones who do the lion's share of
the work. Of course, Dan Blair who is the chief of staff and the person
who headed up the Postal Subcommittee for the Government Reform
Committee when we first began this initiative, and foremost, most
importantly, Robert Taub, a man who as I have said on this House floor
so many times before brings such compassion, such passion, such
patience, really embodied in any individual that I have ever had the
pleasure of meeting. I am proud to call him a colleague. I am proud to
call him my friend, and today, it is perhaps the finest hour of his
work because of the effort he has put together.
This bill represents 80 percent, probably more than 80 percent, of
the first bill we introduced some 11\1/2\ years ago. That is a pretty
remarkable achievement. The postal service is the kind of endeavor that
touches the lives of virtually each and every American each and every
day, and while it may not garner the kind of attention and passion and
interest that some other issues do, at the end of the day, it is one of
the most important activities.
Most of all, this is for the postal workers, those 800,000-plus
strong who go out every day and do their job so effectively, so
efficiently that for the vast majority of our constituents, the last
thing they think of when they walk to their mailbox or go to their post
office is will the mail be there. It will. And through this
legislation, through this advancement, hopefully it will continue in
that regard.
Mr. Speaker, it is a great night, a great day for all Americans, and
I thank all of those who have endeavored so hard for more than a decade
to make it a reality.
It has been more than 36 years since President Nixon signed into law
the most comprehensive postal legislation since the founding of the
Republic, the Postal Reorganization Act of 1970. The Post Office
Department was transformed into the United States Postal Service, an
independent establishment of the executive branch of the Government of
the United States.
The universal service mission of the Postal Service remained the
same, as stated in Title 39 of the U.S. Code: ``The Postal Service
shall have as its basic function the obligation to provide postal
services to bind the Nation together through the personal, educational,
literary, and business correspondence of the people. It shall provide
prompt, reliable, and efficient services to patrons in all areas and
shall render postal services to all communities.''
The new Postal Service officially began operations on July 1, 1971.
In the intervening 35 years, the commercial environment in which the
Postal Service operates has changed. In 1971, UPS had a much smaller
percentage of the parcel market, FedEx didn't exist, and the Internet
had not been created. As we know, these developments have drastically
altered the postal and delivery sector of our economy. Yet, in the last
three and a half decades our Nation's postal laws have changed very
little. I do not know of any entity in the United States today, public
or private, that is still operating with such an outdated structure.
A report by the President's Commission on the Postal Service
concluded that without a new approach, the future of universal mail
service is in peril. According to the Secretary of the Treasury, ``We
really need to get it done now . . . the business model of the Postal
Service just doesn't work anymore. It's not sustainable in light of all
the technological changes and changes in the marketplace.''
Today we have a choice . . . whether to vote to preserve universal
postal service at uniform rates to every stretch of this Nation, or
whether to instead vote ``no'' and assign the Postal Service to an
almost certain future of ever escalating increases in postal prices and
devastating post office closures. The bill we have before us is the
product of extensive bipartisan/bicameral efforts with the Government
Reform Committee Chairman, the Committee's Ranking Member, the
Committee Member from Illinois (i.e., Mr. Danny Davis), and me,
together with our colleagues in the other body, particularly Senators
Collins, Carper, and Lieberman. I want to take a moment to underscore
my appreciation for the hard work that each of them took to bring about
a proposed solution, in close collaboration with the Administration.
This bill is truly a consensus document, having built upon H.R. 22 as
it passed the House in the last session 413-20, and then the Senate by
unanimous consent in February of this year.
I have heard it said, time and time again, and it is absolutely true,
this is not a perfect bill. I cannot imagine any person, short of
someone suffering from multiple personality disorder, who would sit
down and, by themselves, craft this particular piece of legislation.
But I think that is true of any product that comes about after 12 years
of negotiations; of any product in this legislative body that attempts,
as this bill does, to effect sector reform or reform of a system that
while touching every American's life, 6 days a week, at a minimum, has
not been changed in any meaningful way, in more than 35 years.
So what we have tried to do, with the enormous, enormous support and
patience and input of: the Government Reform Chairman; of the gentleman
from Illinois, Mr. Danny Davis, who started on the Postal Subcommittee,
who served so honorably and so diligently with me; and over the past
years, the Ranking Member of the Government Reform Committee--all of
whom I hold in great esteem, and to whom I express great appreciation.
I would be remiss if I also didn't note the work and commitment of the
two previous Government Reform Chairmen, Dan Burton and Bill Clinger,
to this task. We have come up with a bill that embodies the input of
literally hundreds of organizations that either compete against or rely
upon this system we call the post office in America today. It does, as
well, advance what, at least for me, was always the primary directive,
and that is, that the interests of the Postal
[[Page H9181]]
Service, under this legislation, would be better served than the status
quo.
That is an opinion, by the way, that is held by corporate and non-
profit mailers, competitors, postal unions and management groups, and
the Administration. All of these groups, I think it is fair to say, are
particularly interested in seeing this House, and ultimately the
Congress, advance the issue; an issue that I hope all of my colleagues
understand is one of great urgency, and one that we continue to ignore
at our extreme peril. So it is a positive moment.
The patient work on postal modernization has proceeded steadily even
though, in all this time, ``postal reform'' has not once been featured
on the Sunday talk shows. Balanced, nonpartisan postal reform may not
be the stuff of political glory, but it is the sort of legislative work
that will earn the long-term gratitude of the American mailing
consumer--for I can think of no other government agency that touches
the lives of all us, nearly every day, at home and at work. We've said
it before and we'll say it again--that the Postal Service is the center
of a nearly $900 billion industry, employing 9 million workers
nationwide, and representing nearly 9 percent of our nation's gross
domestic product.
The ``Postal Accountability and Enhancement Act'' affirmatively
responds to all of the Administration's 5 principles for postal reform,
and incorporates most of the 17 legislative recommendations made by the
President's Commission on the U.S. Postal Service. The bill mandates
transparency in the Service's finances, costs, and operations. The
legislation creates a modern system of rate regulation, establishes
fair competition rules and a powerful new regulator, addresses the
Service's universal service obligation and the scope of the mail
monopoly, and institutes improvements to the collective bargaining
process. While the bill provides some of the pricing flexibility
recommended for the Postal Service by the President's Commission, the
bill also imposes controls to protect the public interest from unfair
competition.
This is well-refined legislation that reflects the input and feedback
from the more than three dozen hearings and nearly 125 witnesses that
the Government Reform Committee and its former Postal Service
Subcommittee held over the course of the last 12 years.
Make no mistake that today is indeed a day to choose. The Comptroller
General of the United States has reported that the Postal Service's
current business model, formulated as it was in 1970, is no longer
sustainable in the 21st century. Our Postal Service is in trouble and
requires reform to preserve universal service and prevent a worsening
crisis.
To understand the challenges at hand, one needs simply to read the
testimony the Committee received regarding the: Serious declines in
first-class volume, changes in the mail mix, increased competition from
private delivery companies, sub par revenue growth, rising costs,
significant financial liabilities and obligations (including roughly
$60 billion in unfunded retiree health benefits alone), insufficient
increases in postal productivity, and uncertainties regarding how well
the Service can streamline its outdated network of facilities under
existing law.
Take declining first-class mail volume as one example of a
fundamental challenge to the Service's long-term viability. First-class
mail volume has declined annually for the last 5 years--not since the
Great Depression has the Postal Service seen declines in first-class
mail. The Service's core business of first-class mail has historically
been the ``bread and butter'' that makes the system operate: first-
class mail generates about half of the Service's mail volume, more than
half of its revenues, and covers more than two-thirds of the Service's
overhead costs. About half of overhead costs are comprised of universal
service costs of maintaining postal delivery and retail networks.
Declining first class mail volume is causing a loss of first-class mail
revenues to cover overhead costs, which will be difficult to recover
from other classes of mail.
While the problems are dire, I believe the strong bipartisan bill we
are presenting today--based as it is on the President's principles for
legislative change--identify a path to some solutions. The Postal
Service is simply too important an institution--too important to the
people of this nation; too important to our economy--to await the full
brunt of a crisis that is clearly upon the doorstep. Indeed, there is
good reason why this is the first Administration since President
Nixon's to call on Congress to modernize our Nation's postal laws. I
remain hopeful that as Congress did in 1970, we too today will answer
the President's charge and challenge. The Postal Service, its 750,000
dedicated employees, and the nearly 300 million American citizens who
depend on universal service at affordable rates are counting on us.
Mr. DAVIS of Illinois. Mr. Speaker, I am pleased to yield such time
as she might consume to the gentlewoman from New York (Mrs. Maloney).
Mrs. MALONEY. Mr. Speaker, I thank the gentleman for yielding, and I
rise in strong support of H.R. 6407, the Postal Accountability and
Enhancement Act.
I want to congratulate the Government Reform Chairman, Tom Davis,
Ranking Member Waxman, Representative John McHugh from New York who has
dedicated well over 11 years working on this, and Danny Davis who led
the effort in the minority, and their counterparts in the Senate for
their hard work in getting this compromise bill to the floor prior to
the adjournment.
The legislation before us will bring long overdue reforms to the
operations of the postal service after almost 11\1/2\ years of
negotiations between the House, the Senate and the administration.
We reached an agreement on negotiated service agreements, work
sharing, the rate cap and the authority of the Postal Regulatory
Commission to design a new postal system. The $9 billion mailing
industry is tremendously important to our economy. Had Congress failed
to reach this compromise, the public and postal reliant businesses
surely would have faced more frequent increases in postal rates in the
near future.
This bill will help to keep rates more stable by releasing the funds
from an escrow account to pay retiree health benefits.
{time} 2230
Additionally, this relieves the Postal Service and postal customers
of the $27 billion burden in military service payments by returning
that responsibility to the Treasury. The legislation creates a new
Postal Regulatory Commission with the authority to establish a modern
system for postal rate regulation. The new PRC will improve the rate-
setting process by reducing administrative burdens. As a result,
consumers and postal-reliant businesses can expect a greater rate
stability.
I represent a large portion of the magazine industry which is
enormously important both for the economy of New York and the country.
High costs have forced many magazines out of business, including
Mademoiselle, Mode, Brill's Content, and Industry Standard, leaving
many workers without jobs. I also represent many postal workers, some
of the 700,000 postal workers who rely on a healthy Postal Service for
their livelihoods.
We are hopeful that the legislation we passed today will satisfy many
of the concerns of the postal employees, the postal-reliant businesses,
and the U.S. Postal Service and consumers. With the passage of this
legislation we can ensure the long-term viability of the Postal Service
and the continuation of services on which this Nation relies.
Once again, I commend my colleagues and the staff of the Government
Reform and Oversight Committee, particularly Denise Wilson, for their
hard work and dedication, and Jen Keaton from my own staff for their
efforts in completing this task and I urge my colleagues to support it.
Mr. TOM DAVIS of Virginia. Mr. Speaker, I would reserve the balance
of my time.
Mr. DAVIS of Illinois. Mr. Speaker, let me just again commend and
congratulate Chairman Tom Davis, Ranking Member Henry Waxman, and Mr.
McHugh. And just say that Tom Davis and Henry Waxman demonstrated the
very best of leadership as they worked through this process. Tom was a
great chairman; Mr. Waxman is going to become a great chairman in the
next session, and he is what I call a Member's chairman. It has been a
pleasure working with all of them. I urge passage.
Mr. Speaker, I yield back the balance of my time.
Mr. TOM DAVIS of Virginia. Mr. Speaker, let me just say again, this
legislation mandates transparency in the Service's finances, costs, and
operations, creates a modern system of rate regulation, establishes
fair competition rules, and a powerful new regulator to oversee
operations. It addresses the Postal Service's universal service
operation in the scope of the mail monopoly; it institutes improvements
to the collective bargaining process; it also puts a reasonable rate
cap on it for the mailers, the first-class mailers and across the board
for Americans who use the postal system. I urge my colleagues to adopt
it and support this.
[[Page H9182]]
Mr. Speaker, I want to thank the Chairman of the Ways and Means
Committee for agreeing to work with me on H.R. 6407 and I ask that our
letters of exchange be inserted into the Record.
December 8, 2006.
Hon. William M. Thomas,
Chairman, Committee on Ways and Means,
House of Representatives, Washington, DC.
Dear Mr. Chairman: Thank you for your December 8, letter
regarding the Committee on Ways and Means jurisdictional
interest in H.R. 6407, the Postal Accountability and
Enhancement Act, and your willingness to forego consideration
of H.R. 6407 by your committee.
I agree that the Committee on Ways and Means has a valid
jurisdictional interest in H.R. 6407 and that the committee's
jurisdiction will not be adversely affected by your decision
to forego consideration at this time. In addition, I will
support your request for the appointment of outside conferees
from the Committee on Ways and Means to a House-Senate
Conference committee on this or similar legislation should
such a conference be convened.
As you have requested, I will include a copy of your letter
and this response in the Congressional Record during
consideration of H.R. 6407 on the House floor. Thank you for
your assistance as I work towards the enactment of H.R. 6407.
Sincerely,
Tom Davis,
Chairman.
____
December 8, 2006.
Hon. Tom Davis,
Chairman, Committee on Government Reform
Rayburn House Office Building, Washington, DC.
Dear Chairman Davis: I am writing concerning H.R. 6407, the
``Postal Accountability and Enhancement Act,'' which was
introduced on December 7, 2006, and is scheduled for floor
action.
As, you know, the Committee on Ways and Means has
jurisdiction over matters concerning trade and customs
revenue functions and the bill contains provisions impacting
these issues. For example, contained in the bill is a
provision that directs the Bureau of Customs and Border
Protection to apply United States customs laws to certain
mail, and thus falls within the jurisdiction of the Committee
on Ways and Means. However, in order to expedite this
legislation for floor consideration, the committee will forgo
action on this bill. This is being done with the
understanding that it does not in any way prejudice the
committee with respect to the appointment of conferees or its
jurisdictional prerogatives on this or similar legislation.
I would appreciate your response to this letter, confirming
this understanding with respect to this bill, and would ask
that a copy of our exchange of letters on this matter be
included in the Congressional Record during floor
consideration.
Best regards,
Bill Thomas,
Chairman.
Mrs. MILLER of Michigan. Mr. Speaker, I rise today in strong support
of H.R. 6407, The Postal Accountability and Enhancement Act.
This measure is the accumulation of 10 years of hard work and I would
like to thank Chairman Davis and Congressman McHugh for their
unwavering commitment to this bill, and their steadfast commitment to
modernizing and reforming all aspects of the federal government.
The United States Postal Service is currently operating under a
system built in 1970. In 1970, Richard Nixon was President, gasoline
cost $0.36 per gallon, and very few people had even heard of computers,
much less owned one.
Much has changed since then. The primary mode of written
communication now is via email or fax, not first class mail. Consumers
have a whole range of options to send mail and packages urgently. Most
households either have or have access to a computer. But the Postal
Service still operates at the same frequency as it did in 1970.
The simple fact is that this generation-old structure is unable to
support the functioning of the 21st Century economy. With ever-
accelerating declines in First Class Mail volumes, it's becoming more
and more difficult for the Postal Service to collect revenue. This in
turn leads to the need for frequent rate hikes, which is nothing more
than an indirect tax increase on average Americans and a significant
cost increase for businesses that heavily utilize the mail.
Mr. Speaker, this bill strikes the correct balance between the need
for Postal reform and the obligations that the Postal Service has to
the American people. If enacted, this bill will guarantee universal
service, streamline back office operations, provide for workforce
stability and implement a logical, reasoned process for increases in
postal rates, which will generally be in line with the rate of
inflation. Such stability and predictability will allow the Postal
Service to grow along with the needs of its customers.
Mr. Speaker, America relies on the Unites States Postal Service to
deliver our mail. Every Member of this body relies on the Postal
Service to deliver important communications to our constituents. It's
time we give the Postal Service the tools they need to remain an
efficient, effective organization in the years to come.
I urge a ``yes'' vote on the bill.
Mr. SHAYS. Mr. Speaker, I rise in support of H.R. 6407, the Postal
Accountability and Enhancement Act.
The Government Reform Committee, of which I am vice-chairman, has
held hearings and briefings on postal reform for several years now, and
I am glad to see our efforts come to fruition today.
The United States Postal Service has been forced to cut back on its
service due to serious financial challenges. H.R. 6407 is an effort to
modernize our nation's postal laws for the first time in 36 years. It
is intended to help ensure the United States Postal Service can survive
in an increasingly competitive marketplace.
Due to the increasing use of electronic forms of communication, such
as email, first-class mail volume is declining, but postal addresses
are increasing. In lieu of simply increasing rates, an entire reform of
the postal service is necessary.
H.R. 6407 would require the Postal Service to operate in a more
businesslike manner by creating a modern system of rate regulation,
establishing fair competition rules and a more powerful regulatory
commission.
H.R. 6407 will also promote both price stability and pricing
flexibility. Giving the Postal Service pricing flexibility will allow
USPS to price its core mail products in a way that keeps them
competitive and, quite literally, in the mail. By limiting the amount
of future postage rate increases, however, the bill also takes an
important step towards encouraging the Postal Service to increase mail
volume and keep the mailbags full while giving mailers predictability
and stability.
Universal postal service should be the first and foremost goal of
reform. This can only be accomplished if the financial and operational
crisis facing the United States Postal Service is met with innovative
and bold action. H.R. 6407 takes such action.
Mr. TOM DAVIS of Virginia. Mr. Speaker, I yield back the balance of
my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Virginia (Mr. Tom Davis) that the House suspend the
rules and pass the bill, H.R. 6407, as amended.
The question was taken.
The SPEAKER pro tempore (Mr. LaHood). In the opinion of the Chair,
two-thirds of those voting have responded in the affirmative.
Mr. PENCE. Mr. Speaker, on that I demand the yeas and nays.
The yeas and nays were refused.
So (two-thirds of those voting having responded in the affirmative)
the rules were suspended and the bill, as amended, was passed.
A motion to reconsider was laid on the table.
____________________