House Report 106-734 - SEMIPOSTAL AUTHORIZATION ACT

[House Report 106-734]
[From the U.S. Government Publishing Office]

106th Congress Rept. 106-734
HOUSE OF REPRESENTATIVES
2d Session Part 1

======================================================================

SEMIPOSTAL AUTHORIZATION ACT

_______

July 17, 2000.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed

_______

Mr. Burton of Indiana, from the Committee on Government Reform,
submitted the following

R E P O R T

[To accompany H.R. 4437]

[Including cost estimate of the Congressional Budget Office]

The Committee on Government Reform, to whom was referred
the bill (H.R. 4437) to grant to the United States Postal
Service the authority to issue semipostals, and for other
purposes, having considered the same, report favorably thereon
with an amendment and recommend that the bill as amended do
pass.

CONTENTS

Page
I. Purpose and Summary..............................................3
II. Background and Need for the Legislation..........................5
III. Legislative Hearings and Committee Actions.......................6
IV. Committee Hearings and Written Testimony.........................6
V. Explanation of the Bill..........................................6
VI. Commitee Oversight Findings......................................9
VII. Budget Analysis and Projections..................................9
VIII.Cost Estimate of the Congressional Budget Office.................9

IX. Statement of Constitutional Authority...........................11
X. Committee Recommendation........................................11
XI. Congressional Accountability Act; P.L. 104-1....................11
XII. Unfunded Mandates Reform Act; P.L. 104-4, Section 423...........12
XIII.Federal Advisory Committee Act (5 U.S.C. App.) Section 5(b).....12

XIV. Changes in Existing Law.........................................12

The amendment is as follows:
Strike out all after the enacting clause and insert in lieu
thereof the following:

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Semipostal Authorization Act''.

SEC. 2. AUTHORITY TO ISSUE SEMIPOSTALS.

(a) In General.--Chapter 4 of title 39, United States Code, is
amended by adding at the end the following:

``Sec. 416. Authority to issue semipostals

``(a) Definitions.--For purposes of this section--
``(1) the term `semipostal' means a postage stamp which is
issued and sold by the Postal Service, at a premium, in order
to help provide funding for a cause described in subsection
(b); and
``(2) the term `agency' means an Executive agency within the
meaning of section 105 of title 5.
``(b) Discretionary Authority.--The Postal Service is hereby
authorized to issue and sell semipostals under this section in order to
advance such causes as the Postal Service considers to be in the
national public interest and appropriate.
``(c) Rate of Postage.--The rate of postage on a semipostal issued
under this section shall be established by the Governors, in accordance
with such procedures as they shall by regulation prescribe (in lieu of
the procedures under chapter 36), except that--
``(1) the rate established for a semipostal under this
section shall be equal to the rate of postage that would
otherwise regularly apply, plus a differential of not to exceed
25 percent; and
``(2) no regular rates of postage or fees for postal services
under chapter 36 shall be any different from what they
otherwise would have been if this section had not been enacted.
The use of any semipostal issued under this section shall be voluntary
on the part of postal patrons.
``(d) Amounts Becoming Available.--
``(1) In general.--The amounts becoming available from the
sale of a semipostal under this section shall be transferred to
the appropriate agency or agencies under such arrangements as
the Postal Service shall by mutual agreement with each such
agency establish.
``(2) Identification of appropriate causes and agencies.--
Decisions concerning the identification of appropriate causes
and agencies to receive amounts becoming available from the
sale of a semipostal under this section shall be made in
accordance with applicable regulations under subsection (e).
``(3) Determination of amounts.--
``(A) In general.--The amounts becoming available
from the sale of a semipostal under this section shall
be determined in a manner similar to that provided for
under section 414(c)(2) (as in effect on July 1, 2000).
``(B) Administrative costs.--Regulations under
subsection (e) shall specifically address how the costs
incurred by the Postal Service in carrying out this
section shall be computed, recovered, and kept to a
minimum.
``(4) Other funding not to be affected.--Amounts which have
or may become available from the sale of a semipostal under
this section shall not be taken into account in any decision
relating to the level of appropriations or other Federal
funding to be furnished to an agency in any year.
``(5) Recovery of costs.--Before transferring to an agency in
accordance with paragraph (1) any amounts becoming available
from the sale of a semipostal over any period, the Postal
Service shall ensure that it has recovered the full costs
incurred by the Postal Service in connection with such
semipostal through the end of such period.
``(e) Regulations.--
``(1) In general.--Except as provided in subsection (c), the
Postal Service shall prescribe any regulations necessary to
carry out this section, including provisions relating to--
``(A) which office or other authority within the
Postal Service shall be responsible for making the
decisions described in subsection (d)(2);
``(B) what criteria and procedures shall be applied
in making those decisions; and
``(C) what limitations shall apply, if any, relating
to the issuance of semipostals (such as whether more
than 1 semipostal may be offered for sale at the same
time).
``(2) Notice and comment.--Before any regulation is issued
under this section, a copy of the proposed regulation shall be
published in the Federal Register, and an opportunity shall be
provided for interested parties to present written and, where
practicable, oral comment. All regulations necessary to carry
out this section shall be issued not later than 30 days before
the date on which semipostals are first made available to the
public under this section.
``(f) Annual Reports.--
``(1) In general.--The Postmaster General shall include in
each report rendered under section 2402, with respect to any
period during any portion of which this section is in effect,
information concerning the operation of any program established
under this section.
``(2) Specific requirement.--If any semipostal ceases to be
offered during the period covered by such a report, the
information contained in that report shall also include--
``(A) the commencement and termination dates for the
sale of such semipostal;
``(B) the total amount that became available from the
sale of such semipostal; and
``(C) of that total amount, how much was applied
toward administrative costs.
For each year before the year in which a semipostal ceases to
be offered, any report under this subsection shall include,
with respect to that semipostal (for the year covered by such
report), the information described in subparagraphs (B) and
(C).
``(g) Termination.--This section shall cease to be effective at the
end of the 10-year period beginning on the date on which semipostals
are first made available to the public under this section.''.
(b) Reports by Agencies.--Each agency that receives any funding in a
year under section 416 of title 39, United States Code (as amended by
this section) shall submit a written report under this subsection, with
respect to such year, to the congressional committees with jurisdiction
over the United States Postal Service. Each such report shall include--
(1) the total amount of funding received by such agency under
such section 416 during the year;
(2) an accounting of how any funds received by such agency
under such section 416 were allocated or otherwise used by such
agency in such year; and
(3) a description of any significant advances or
accomplishments in such year that were funded, in whole or in
part, out of amounts received by such agency under such section
416.
(c) Reports by the General Accounting Office.--
(1) Interim report.--The General Accounting Office shall
submit to the President and each House of Congress an interim
report on the operation of the program established under
section 416 of title 39, United States Code (as amended by this
section) not later than 4 years after semipostals are first
made available to the public under such section.
(2) Final report.--The General Accounting Office shall
transmit to the President and each House of Congress a final
report on the operation of the program established under such
section 416, not later than 6 months before the date on which
it is scheduled to expire. The final report shall contain a
detailed statement of the findings and conclusions of the
General Accounting Office, together with any recommendations it
considers appropriate.
(d) Clerical Amendment.--The table of sections for chapter 4 of title
39, United States Code, is amended by adding at the end the following:

``416. Authority to issue semipostals.''.

(e) Effective Date.--The program under section 416 of title 39,
United States Code (as amended by this section) shall be established
within 6 months after the date of enactment of this Act.

SEC. 3. EXTENSION OF AUTHORITY TO ISSUE SEMIPOSTALS FOR BREAST CANCER
RESEARCH.

(a) In General.--Section 414(g) of title 39, United States Code, is
amended to read as follows:
``(g) This section shall cease to be effective after July 29, 2002,
or the end of the 2-year period beginning on the date of enactment of
the Semipostal Authorization Act, whichever is later.''.
(b) Reporting Requirement.--No later than 3 months and no earlier
than 6 months before the date as of which section 414 of title 39,
United States Code (as amended by this section) is scheduled to expire,
the Comptroller General of the United States shall submit to the
Congress a report on the operation of such section. Such report shall
be in addition to the report required by section 2(b) of Public Law
105-41, and shall address at least the same matters as were required to
be included in that earlier report.

I. Purpose and Summary

As originally introduced, H.R. 4437 grants authority to the
Postal Service to issue special stamps to help provide funding
for a particular area of medical research. It specifies that
the Board of Governors, according to procedures, set the rates
of postage for the semipostals that must be equal to the rate
of postage that would normally apply, plus the addition of a
differential, not to exceed 25 percent. The legislation also
extends the Breast Cancer Research Stamp, which was authorized
in 1997 and first went on sale in July 1998, for an additional
two years. The purpose of the legislation is to raise money for
worthy causes by active participation of postal patrons on a
voluntary basis.
H.R. 4437 as amended by the substitute agreed to by the
Committee on Government Reform on June 29, 2000, authorizes the
Postal Service to issue and sell semipostal stamps, expanding
the scope from purely areas of medical research, that would
advance causes that the Postal Service considers to be in the
national public interest and appropriate. Additionally, the
amended bill specifies that the Postal Service shall ensure
that it has recovered the full costs incurred in connection
with the production of a semipostal before funds are made
available to an agency for any specific period.
The bill states that the amounts raised by the sale of a
semipostal will be conveyed to the appropriate executive agency
or agencies under mutual arrangement of the Postal Service and
the agency.
The Postal Service will identify which office or authority
within the Service would be responsible for determining the
appropriate causes to benefit from the sale and issuance of a
semipostal. That responsibility would include the criteria and
procedure in making those decisions and limitations in issuing
semipostal (such as whether more than one semipostal may be
offered for sale at the same time).
A copy of the proposed regulations must be published in the
Federal Register prior to issuance. This would give interested
parties an opportunity to provide comment. Regulations are to
be issued no later than 30 days prior to the issuance to the
public of the first semipostal. The regulations would
specifically address how the cost incurred by the Postal
Service shall be computed, recovered, and kept to a minimum.
Appropriations to an agency will not be affected in any year
because of amounts that may be received by the agency because
of funds from semipostals.
The Postmaster General must issue an annual report which
includes certain elements, including information regarding the
commencement and termination dates of the sale of each
semipostal; the total amount available from the sale of the
semipostal and the total amount applied to administrative
costs.
The authority to issue semipostals by the Postal Service
will terminate at the end of the 10-year period beginning on
the date on which these special postage stamps are first made
available to the public (this does not include the already
existing breast cancer research stamp or its extension).
Each agency that receives any funding from the sale of a
semipostal is required to submit a report to the congressional
committees with jurisdiction over the United States Postal
Service. The report should include information regarding the
total amount of funding received by the agency during that
year, an accounting of how the funds were used by the agency,
and a description of any significant advances or
accomplishments that were realized because of the funding.
Additionally, no later than four years after the semipostal
is first made available to the public, the General Accounting
Office (GAO) is required to submit an interim report to the
President and each House of Congress regarding the operation of
the program. The GAO will prepare a final report for the same
recipients no later than six months before the date on which
the program is scheduled to expire. This report will contain
detailed statements of the findings and conclusions of the GAO
along with any recommendations it deems appropriate.
This new semipostal legislation is to be established six
months after the date of enactment.
Section 3, which extends the authority to issue semipostal
for breast cancer research, is based on a bill introduced by
Representative Bass extending the existing Breast Cancer
Research Stamp for an additional two-year period. The
Comptroller General of the United States will submit a report
to the Congress on the operation of program no later than 3
months and no earlier than 6 months before the date that this
section is due to expire, and would contain the same
information as required in Public Law 105-41 which first
authorized the Breast Cancer Research Stamp.
The availability to participate in the Breast Cancer
Research has been well accepted by the American public. The
total number of stamps sold by June 16, 2000 was 214 million.
These sales have raised more than $15 million for breast cancer
research.

II. Background and Need for the Legislation

The Stamp Out Breast Cancer Act, Public Law 105-41, August
13, 1997, was the first semipostal issued by the Postal
Service, though this method of raising funds for a designated
beneficiary has been used in varying degrees of success by
foreign postal administrations since 1897 when money was raised
in Australia for a tuberculosis medical facility in Sydney.
Because the success of the Breast Cancer Research Stamp has
been significant, Members of Congress have introduced more than
14 bills for the issuance of semipostals to raise funds for (1)
AIDS research and education, (2) Alzheimer's disease research,
(3) diabetes research, (4) domestic violence programs, (5)
emergency food relief within the United States, (6) highway-
rail crossing safety, (7) organ and tissue donation awareness,
(8) prostate cancer research; (9) American Battle Monuments
commission funding, and (10) World War II Memorial funding. Not
all of the legislation deals with medical research. It was
clear that if the Postal Service was authorized to issue
semipostals dealing with only medical research, there would be
countless other worthy causes which would be suggested for
subjects for semipostals for enactment by Congress. The bill,
therefore, gives the Postal Service the authority to design a
fair process by which to offer specially priced semipostal
stamps for voluntary purchase by the public as long as they are
of public interest and appropriate. This process takes the
legislative branch out of the process of issuing semipostal
stamps in the same spirit that commemorative stamps are the
purview of the Postal Service.

III. Legislative Hearings and Committee Actions

H.R. 4437 was introduced on May 11, 2000 sponsored by Mr.
McHugh and originally cosponsored by Mr. Fattah, Chairman and
Ranking Minority Member of the Subcommittee on the Postal
Service, respectively. The bill was referred to the Committee
on Government Reform, the Committee on Commerce, and Armed
Services, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as
fall within the jurisdiction of the committee concerned. On May
17, the Committees on Government Reform and Commerce referred
the legislation to the following subcommittees: Subcommittee on
the Postal Service, Subcommittee on Health and Environment. On
June 28, the Subcommittee on the Postal Service considered H.R.
4377 and held a mark-up session on the bill in the nature of a
substitute as offered by Chairman McHugh and Mr. Fattah. The
amended bill as forwarded to the Committee on Government Reform
passed the Committee, as amended, by voice vote on June 29.

IV. Committee Hearings and Written Testimony

Both the Senate and House have had several bills introduced
regarding the extension of the breast cancer research stamp.
Additionally, several bills have been introduced to raise funds
through issuance of semipostal stamps. The Senate held a
hearing on the issuance of semipostal stamps on May 25, 2000.
The testimony from the Senate hearing held on May 25, 2000,
along with the GAO Report (GAO/GGD-00-80) were studied in
preparing the amendment in the nature of a substitute that has
been accepted by the Committee. Neither the Subcommittee on the
Postal Service nor the Committee on Government Reform conducted
hearings on this issue.

V. Explanation of the Bill

section-by-section analysis

Section 1. Short title

``Semipostal Authorization Act''.

Section 2. Authority to issue semipostals

(a) In General.--This section adds Sec. 416 to Chapter 4 of
title 39, USC.
Section 416(a). Definitions
This amendment defines the term `semipostal' as a postage
stamp issued and sold by the Postal Service, at a premium, to
help provide funding as described in Subsection (b); the term
`agency' means an Executive agency within the meaning of
section 105 of title 5.
Section 416(b). Discretionary authority
This amendment is authorized to issue and sell semipostals
in order to advance such causes as the Postal Service considers
being in the national public interest and appropriate.
Section 416(c). Rate of postage
The amendment specifies that the Governors, according to
procedures and regulations that they have established, will set
the rates of postage for semipostals. The rate established for
a semipostal must be equal to the rate of postage that would
normally apply, plus the addition of a differential, not to
exceed 25 percent. Regular rates of postage or fees will not be
different from what they would be had this section not been
enacted. The use of the semipostal by postal patrons is
voluntary
Section 416(d). Amounts becoming available
This section provides that the funds that become available
from the sale of semipostal stamps will be transferred to the
appropriate Executive agency (as defined in section 105 of
title 5) or agencies by mutual agreement of the Postal Service
and the agency involved. Decisions regarding the identification
of appropriate causes and agencies to receive money from the
sale of semipostals will be made according to prescribed
regulations as enumerated in subsection (e).
The provisions to determine the amounts to be made
available from the sale of semipostals under this section is
provided for in current section 414(c)(2) as was in effect on
July 1, 2000. That is, the total amount received by the Postal
Service that it would not have received but for enactment of
this section, reduced by an amount sufficient to cover
reasonable costs incurred by the Service in carrying out this
section. This includes those amounts attributable to the
printing, sale, and distribution of stamps under this section,
as determined by the Postal Service.
Additional language requires that regulations under
subsection (e) specifically address how the costs incurred by
the Postal Service in carrying out this section shall be
computed, recovered, and kept to a minimum.
This legislation provides that decisions for other funding
to an agency will not be affected when making appropriations or
other Federal funding as a result of the money which may or may
not have become available to the agency from the sale of the
semipostal. Additionally, it provides that the Postal Service
will ensure that it has fully recovered the entire cost
incurred in connection with the semipostal through that period.
Section 416(e). Regulations
This provision stipulates that the Postal Service shall set
regulations necessary to carry out this section, including
provisions concerning: which office or authority within the
Postal Service will be responsible for making decisions
regarding identification of appropriate causes and agencies
that will receive the benefits of the sale of semipostal
stamps; what criteria and procedures will be applied in making
those decisions; and imposing limitations on the number of
semipostals that may be offered for sale at any given time.
Prior to the prescribing regulations, a copy of the
proposed regulations must be published in the Federal Register
and interested parties must be provided with an opportunity to
present written comment and, where practicable, oral comment.
Initial regulations must be approved no later than 30 days
before the date on which semipostals are first made available
to the public.
Section 416(f). Annual reports
Under section 2402, title 39, the Postmaster General is
mandated to make an annual report available to the Board of
Governors and the finalized report must be transmitted to the
President and the Congress. Section 416(f)(1) further provides
that the Postmaster General must include in each report
information concerning the operation of any program established
under this section. There is a specific requirement that if any
semipostal issue concludes during the time period covered by a
report, that information must be included in the report along
with: the commencement and termination dates of the sale of the
semipostal; the total amount that became available from the
sale of the semipostal; and, of the total amount, how much was
applied toward administrative costs. The same types of
information must be included in any report that is issued
annually prior to the end of that semipostal program.
Section 416(g). Termination
The provision requires that this section will terminate at
the end of the 10-year period beginning on the date on which
semipostals are first made available to the public under this
section.
(b) [of Sec. 2] Reports by Agencies.--Each agency that
receives funds from the sale of semipostal stamps is required
to submit a written report to the congressional committees with
jurisdiction over the United States Postal Service. The reports
will include the amount of funding that was received, an
accounting of how the allocated funds were utilized and a
description of any accomplishments or significant advances.
(c) [of Sec. 2] Reports by the General Accounting Office.--
This amendment requires that the General Accounting Office
submit to the President and each House of Congress, an interim
report on the operation of the semipostal program established
under this act not later than four years after semipostals are
first made available to the public under the section. A final
report from the General Accounting Office shall be transmitted
to the President and each House of Congress on the operation of
the semipostal program, not later than six months before the
date it is scheduled to terminate. This report must include a
detailed statement of the findings and conclusions of the GAO,
along with any recommendations that the GAO considers
appropriate.
(c) Clerical Amendment.--The table of sections for chapter
4 of title 39 United States Code is amended by adding,
``Sec. 416. Authority to issue semipostals.''
(d) Effective Date.--The semipostal program shall be
established within 6 months after the date of enactment of the
legislation.

Section 3. Extension of authority to issue semipostals for breast
cancer research

(a) In General.--This subsection amends subsection (g) of
section 414 of title 39, United States Code to extend the
existing Stamp Out Breast Cancer Authorization Act until July
29, 2002 or the end of the 2-year period beginning on the date
of enactment of the Semipostal Authorization Act, whichever is
later.
(b) Reporting Requirement.--The Comptroller General of the
United States is required to submit a report to Congress on the
operation of this section no later than three months and no
earlier than six months before section 414 is due to expire.
This report will be in addition to the report required by
Public Law 105-41 and should address at least the same matters
as were required to be included in that report.

VI. Committee Oversight Findings

Pursuant to rule XIII, clause 3(c)(1), of the Rules of the
House of Representatives, the results and findings for those
oversight activities are incorporated in the recommendations
found in the bill and in this report.

VII. Budget Analysis and Projections

The budget analysis and projections required by Section
308(a) of the congressional Budget Act of 1974 are contained in
the estimate of the Congressional Budget Office.

VIII. Cost Estimate of the Congressional Budget Office,

U.S. Congress,
Congressional Budget Office,
Washington, DC, July 12, 2000.
Hon. Dan Burton,
Chairman, Committee on Government Reform,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 4437, the
Semipostal Authorization Act.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Mark
Grabowicz.
Sincerely,
Barry B. Anderson
(For Dan L. Cripppen, Director).
Enclosure.

H.R. 4437--Semipostal Authorization Act

Summary: The Stamp Out Breast Cancer Act (Public Law 105-
41) authorized a special postage stamp for first-class mail.
The United States Postal Service set the price of this stamp
(called a semipostal) at 40 cents, 7 cents above the regular
rate of 33 cents, and the authority to issue this stamp expires
on July 28, 2000. Amounts above the regular postal rate
collected from sales of the special stamp are later transferred
to the National Institutes of Health (NIH) and the Department
of Defense (DoD) to spend for breast cancer research (after
accounting for the Postal Service's administrative costs). H.R.
4437 would extend this program for two years after enactment of
the bill, or until July 29, 2002, whichever is later. In
addition, the bill would require the General Accounting Office
(GAO) to prepare a report on the breast cancer stamp.
The bill also would authorize the Postal Service to issue
additional semipostals, involving issues and federal agencies
that the service would determine, for a ten-year period after
the first such semipostal is issued. Over the period, the bill
would direct GAO to prepare two reports on the extended
semipostal program.
Over the 2000-2005 period, CBO estimates that enacting H.R.
4437 would result in a negligible net effect on direct
spending. In addition, the GAO report would cost about $300,000
in 2002, assuming the availability of appropriated funds.
Because enactment of the bill would affect direct spending,
pay-as-you-go procedures would apply. H.R. 4437 contains no
intergovernmental or private-sector mandates as defined in the
Unfunded Mandates Reform Act (UMRA) and would not affect the
budgets of state, or tribal governments.
Estimated cost to the Federal Government: The estimated
budgetary impact of H.R. 4437 is shown in the following table.
The costs of this legislation fall within budget functions 050
(national defense), 370 (commerce and housing credit), and 550
(health).

Net impact on the Postal Service:
Estimated budget authority............................ -1 -2 1 2 0 0
Estimated outlays..................................... -1 -2 1 2 0 0

On-Budget Effects

Net impact on NIH and DoD:
Estimated budget authority............................ 0 -2 -2 1 2 1
Estimated outlays..................................... 0 -2 -2 1 2 1

Total Changes

Estimated budget authority................................ -1 -4 -1 3 2 1
Estimated outlays......................................... -1 -4 -1 3 2 1
----------------------------------------------------------------------------------------------------------------
Note.--In addition to the effects on direct spending shown in the table, GAO would have to spend about $300,000
in appropriated funds in 2002 to prepare a report required by the bill.

Basis of estimate.--For this estimate, CBO assumes that the
bill will be enacted by August 1, 2000.
Extension of breast cancer stamp.--Since the program's
inception in July 1998, sales of these stamps have resulted in
collections of about $15 million for breast cancer research.
CBO estimates that enacting H.R. 4437 would increase such
collections by the Postal Service by about $1 million in fiscal
year 2000, $5 million in 2001, and $4 million in 2002. After
covering its administrative costs, the Postal Service would
transfer the collections to NIH and DoD in April and November
of each year. Thus, the net impact on the Postal Service over
the 2000-2005 period would be zero. Spending and receipts of
the Postal Service are defined as off-budget.
We estimate that enacting H.R. 4437 would increase NIH and
DoD collections by $3 million in 2001, $5 million in 2002, and
$2 million in 2003. Spending of these collections by those two
agencies would be about $1 million in fiscal year 2001, $3
million a year in 2002 and 2003, $2 million in 2004, and about
$1 million in 2005. Thus, the changes in spending would sum to
the changes in collections but outlays would lag behind
collections. CBO estimates that the change in net outlays for
NIH and DoD over the 2000-2005 period would be near zero.
Additional semipostals.--CBO has no basis for predicting
the extent to which the Postal Service would issue additional
semipostals under H.R. 4437. However, the budgetary impact of
each semipostal would be similar to that of the breast cancer
stamp. The net budgetary effects of any additional semipostals
would be near zero because amounts collected above regular
postal rates would eventually be spent.
GAO report.--Based on information from GAO, we estimate
that each of the three reports required by the bill would cost
about $300,000, assuming appropriation of the necessary
amounts. We expect the report on the breast cancer stamp to be
completed in fiscal year 2002 and the other two reports to be
completed sometime after 2005.
Pay-as-you-go considerations: The Balanced Budget and
Emergency Deficit Control Act sets up pay-as-you-go procedures
for legislation affecting direct spending or receipts. Because
cash flows of the Postal Service are categorized as off-budget,
only the transfer and spending of these funds by NIH and DoD
under H.R. 4437 would be subject to pay-as-you-go procedures.
Over the 2000-2005 period, such spending would sum to near
zero. The bill's pay-as-you-go effects are summarized in the
following table.

----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
----------------------------------------------------------------------------
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
----------------------------------------------------------------------------------------------------------------
Changes in outlays................. 0 -2 -2 1 2 1 0 0 0 0 0
Changes in receipts................ Not applicable
----------------------------------------------------------------------------------------------------------------

Intergovernmental and private-sector impact: H.R. 4437
contains no intergovernmental or private-sector mandates as
defined in UMRA and would not affect the budgets of state,
local, or tribal governments.
Previous CBO estimate: On June 27, 2000, CBO transmitted a
cost estimate for S. 2386, the Breast Cancer Research Stamp
Reauthorization Act of 2000, as ordered reported by the Senate
Committee on Governmental Affairs on June 14, 2000. That
legislation would extend the Stamp Out Breast Cancer Act for
two years but would not authorize additional semipostals or
require GAO reports.
Estimate prepared by: Federal costs: Mark Grabowicz; Impact
on State, local, and tribal governments: Susan Sieg; impact on
the private sector: John Harris.
Estimate approved by: Robert A. Sunshine, Assistant
Director for Budget Analysis.

IX. Statement of Constitutional Authority

Pursuant to rule XIII, clause 3(d)(1), the Committee finds
that clause 7 of Article 1, Section 8 of the U.S. Constitution
grants congress the power to enact this law.

X. Committee Recommendations

On June 29, 2000, a quorum being present, the Committee by
voice vote ordered the bill favorably reported to the House for
consideration.

XI. Congressional Accountability Act; Public Law 104-1

The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(B)(3) of the congressional Accountability Act (P.L. 104-1).

XII. Unfunded Mandates Reform Act; Public Law 104-4, Section 423

The Committee finds that the legislation does not impose
Federal mandates within the meaning of section 423 of the
Unfunded Mandates Reform Act (P.L. 104-4); enactment of H.R.
4437 should also result in no significant regulatory impact to
the private sector. The Congressional Budget Office has
determined that H.R. 4437 contains no intergovernmental or
private-sector mandates as defined in UMRA and would not affect
the budgets of state, local, or tribal governments.

XIII. Federal Advisory Committee Act (5 U.S.C. App.) Section 5(b)

The Committee finds that the legislation does not establish
or authorize establishment of an advisory committee within the
definition of 5 U.S.C. App., Section 5(b).

XIV. Changes in Existing Law Made by the Bill, as Reported

In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):

TITLE 39, UNITED STATES CODE

* * * * * * *

PART I--GENERAL

* * * * * * *

CHAPTER 4--GENERAL AUTHORITY

Sec.
401. General powers of the Postal Service.
* * * * * * *
416. Authority to issue semipostals.
* * * * * * *

Sec. 414. Special postage stamps

(a) * * *

* * * * * * *

[(g) This section shall cease to be effective at the end of
the 2-year period beginning on the date on which special
postage stamps under this section are first made available to
the public.]
(g) This section shall cease to be effective after July 29,
2002, or the end of the 2-year period beginning on the date of
enactment of the Semipostal Authorization Act, whichever is
later.

* * * * * * *

Sec. 416. Authority to issue semipostals

(a) Definitions.--For purposes of this section--
(1) the term ``semipostal'' means a postage stamp
which is issued and sold by the Postal Service, at a
premium, in order to help provide funding for a cause
described in subsection (b); and
(2) the term ``agency'' means an Executive agency
within the meaning of section 105 of title 5.
(b) Discretionary Authority.--The Postal Service is hereby
authorized to issue and sell semipostals under this section in
order to advance such causes as the Postal Service considers to
be in the national public interest and appropriate.
(c) Rate of Postage.--The rate of postage on a semipostal
issued under this section shall be established by the
Governors, in accordance with such procedures as they shall by
regulation prescribe (in lieu of the procedures under chapter
36), except that--
(1) the rate established for a semipostal under this
section shall be equal to the rate of postage that
would otherwise regularly apply, plus a differential of
not to exceed 25 percent; and
(2) no regular rates of postage or fees for postal
services under chapter 36 shall be any different from
what they otherwise would have been if this section had
not been enacted.
The use of any semipostal issued under this section shall be
voluntary on the part of postal patrons.
(d) Amounts Becoming Available.--
(1) In general.--The amounts becoming available from
the sale of a semipostal under this section shall be
transferred to the appropriate agency or agencies under
such arrangements as the Postal Service shall by mutual
agreement with each such agency establish.
(2) Identification of appropriate causes and
agencies.--Decisions concerning the identification of
appropriate causes and agencies to receive amounts
becoming available from the sale of a semipostal under
this section shall be made in accordance with
applicable regulations under subsection (e).
(3) Determination of amounts.--
(A) In general.--The amounts becoming
available from the sale of a semipostal under
this section shall be determined in a manner
similar to that provided for under section
414(c)(2) (as in effect on July 1, 2000).
(B) Administrative costs.--Regulations under
subsection (e) shall specifically address how
the costs incurred by the Postal Service in
carrying out this section shall be computed,
recovered, and kept to a minimum.
(4) Other funding not to be affected.--Amounts which
have or may become available from the sale of a
semipostal under this section shall not be taken into
account in any decision relating to the level of
appropriations or other Federal funding to be furnished
to an agency in any year.
(5) Recovery of costs.--Before transferring to an
agency in accordance with paragraph (1) any amounts
becoming available from the sale of a semipostal over
any period, the Postal Service shall ensure that it has
recovered the full costs incurred by the Postal Service
in connection with such semipostal through the end of
such period.
(e) Regulations.--
(1) In general.--Except as provided in subsection
(c), the Postal Service shall prescribe any regulations
necessary to carry out this section, including
provisions relating to--
(A) which office or other authority within
the Postal Service shall be responsible for
making the decisions described in subsection
(d)(2);
(B) what criteria and procedures shall be
applied in making those decisions; and
(C) what limitations shall apply, if any,
relating to the issuance of semipostals (such
as whether more than 1 semipostal may be
offered for sale at the same time).
(2) Notice and comment.--Before any regulation is
issued under this section, a copy of the proposed
regulation shall be published in the Federal Register,
and an opportunity shall be provided for interested
parties to present written and, where practicable, oral
comment. All regulations necessary to carry out this
section shall be issued not later than 30 days before
the date on which semipostals are first made available
to the public under this section.
(f) Annual Reports.--
(1) In general.--The Postmaster General shall include
in each report rendered under section 2402, with
respect to any period during any portion of which this
section is in effect, information concerning the
operation of any program established under this
section.
(2) Specific requirement.--If any semipostal ceases
to be offered during the period covered by such a
report, the information contained in that report shall
also include--
(A) the commencement and termination dates
for the sale of such semipostal;
(B) the total amount that became available
from the sale of such semipostal; and
(C) of that total amount, how much was
applied toward administrative costs.
For each year before the year in which a semipostal
ceases to be offered, any report under this subsection
shall include, with respect to that semipostal (for the
year covered by such report), the information described
in subparagraphs (B) and (C).
(g) Termination.--This section shall cease to be effective at
the end of the 10-year period beginning on the date on which
semipostals are first made available to the public under this
section.

* * * * * * *

Committee Correspondence

House of Representatives,
Committee on Commerce,
Washington, DC, July 10, 2000.
Hon. Dan Burton,
Chairman, Committee on Government Reform,
Washington, DC.
Dear Dan: I am writing with regard to H.R. 4437, the
Semipostal Authorization Act. As you know, Rule X of the Rules
of the House of Representatives grants the Committee on
Commerce jurisdiction over public health and quarantine, as
well as biomedical research and development. Accordingly, the
Committee on Commerce received an additional referral of H.R.
4437, which includes a section extending the authorization of
the issuance of the breast cancer research semipostal, and
providing for an additional report. This legislation was
ordered reported by the Committee on Government Reform on June
29, 2000.
Because of the importance of this legislation, I recognize
your desire to bring it before the House in an expeditious
manner, and I will not exercise the Committee's right to its
referral. By agreeing to waive its consideration of the bill,
however, the Committee on Commerce does not waive its
jurisdiction over H.R. 4437. In addition, the Commerce
Committee reserves its authority to seek conferees on any
provisions of the bill that are within its jurisdiction during
any House-Senate conference that may be convened on this
legislation. I ask for your commitment to support any request
by the Commerce Committee for conferees on H.R. 4437 or similar
legislation.
I request that you include this letter and your response in
your committee report on the bill and as part of the Record
during consideration of the legislation on the House floor.
Thank you for your attention to these matters.
Sincerely,
Tom Bliley, Chairman.
------

House of Representatives,
Committee on Government Reform,
Washington, DC, July 10, 2000.
Hon. Tom Bliley,
Chairman, Committee on Commerce,
House of Representatives, Washington, DC.
Dear Tom: Thank you for your letter regarding your
committee's jurisdictional interest in H.R. 4437, the
Semipostal Authorization Act.
I acknowledge your committee's jurisdiction over this
legislation and appreciate your cooperation in moving the bill
to the House floor expeditiously. I agree that your decision to
forego further action on the bill will not prejudice the
Commerce Committee with respect to its jurisdictional
prerogatives on this or similar legislation, and will support
your request for conferees on those provisions within the
Committee on Commerce's jurisdiction should they be the subject
of a House-Senate conference. I will also include a copy of
your letter and this response in our report on the legislation
and as part of the Congressional Record when the legislation is
considered by the House.
Thank you again for your cooperation.
Sincerely,
Dan Burton, Chairman.
------

House of Representatives,
Committee on Government Reform,
Washington, DC, July 6, 2000.
Hon. Floyd Spence,
Chairman, Committee on Armed Services,
Washington, DC.
Dear Chairman Spence: I am writing to request that the
Committee on Armed Services waive its jurisdiction over H.R.
4437, as introduced on May 11, 2000. The Committee on Armed
Services received an additional referral of H.R. 4437.
This legislation was ordered reported as amended by the
Committee on Government Reform on June 29, 2000; a copy of the
Committee-approved legislation is attached for your
convenience.
H.R. 4437, as amended, would grant to the United States
Postal Service the authority to issue and sell semipostal
stamps that are in the public interest and are appropriate for
the purpose of raising money for worthy causes as determined by
the Postal Service. Additionally, the legislation would extend
the authority to issue and sell the Breast Cancer Research
Stamp, which is due to expire by the end of July, 2000, for an
additional two years.
Because of the importance of this legislation, and in our
effort to move H.R. 4437, prior to the expiration of the Breast
Cancer Research Stamp, I request that the Committee on Armed
Services discharge further consideration of the bill.
I acknowledge your committee's jurisdiction over this
legislation and appreciate your cooperation in moving H.R. 4437
to the House floor expeditiously. If you should decide to
forego further action on this legislation, it will not
prejudice the Armed Services Committee with respect to its
jurisdictional prerogatives on this or similar legislation, and
I will support a request for conferees on those provisions
within the Committee on Armed Services' jurisdiction should
they be the subject of a House-Senate conference. I will also
include a copy of this letter and your response in our report
on the legislation and as part of the Congressional Record when
the House considers the legislation.
With best wishes and appreciation for your cooperation in
this matter,
Sincerely yours,
Dan Burton, Chairman.