[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6407 Enrolled Bill (ENR)]
H.R.6407
One Hundred Ninth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Tuesday,
the third day of January, two thousand and six
An Act
To reform the postal laws of the United States.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

2de74d00e80687be5984852d987fb86eb916756ee9b0bac94bc040e83690b552

(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:

f833c76a7914a3b8b0c5d382862ef44ac0a409d43b014a26e7bb0e84a74cdbfe

552ba709f377831a157a085d6debdb56fcd10c02afd50096c65a2afc66e5db33

TITLE VI

-ENHANCED REGULATORY COMMISSION

5f34ddf7939cf3cbaa3d2f295514cbb787577b725ed3c8fe2b3c2ab57875cf3c

TITLE VII

-EVALUATIONS

18d6993fd4248d9a3b53c45339409c6c81361e8c480903a8da277bdf5ad86a78

administrative schedule management positions.

c441359e162cc93a44ba473a04c879156f5aca81fcc92c99a9892d4a8a464ac3

connection with the closing or consolidation of post offices.

56467be76ffd12425cd8d037cab2eb4810ac9750881d4a56d4d273532c724c43

TITLE X

-MISCELLANEOUS

United States Code, for officers and employees of the former
Post Office Department.

4317a3f6553ce9325056b4e2f234e16b1082d4d27274f9b96a73e7218c142759

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;
``(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.''.

4a2f31b1313cfc80880e8d54340a26cdf03821842b2f666a8260ef8b95bcde2d

TITLE I

-DEFINITIONS; 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)''.

0dcb19762a7cb48499d0d1fa1c3f511112e59a567b880689d1dd11d8369fd12e

(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.
``(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''.

e9f093bb77a21f6fe9c764d06ece97f3b3c8ba80e07b5c5e54ea3be4f6f1de78

TITLE II

-MODERN RATE REGULATION

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 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.''.

c38522b5071fdda82dfb7fcfe079c318993164888837d7f095679815d83b3fa9

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;
``(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.''.

16434ceb71abe56970e1cbef12f220eafd4f54675429ca2f72ca2ccd2f1ded77

(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 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).''.

7e583bcfe436830232abec1c1f51ac8ba01a406f7e265947941295bde640e9fe

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 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.''.

2bd8d652dec58f7f7e1cedcfb782f2542d0a5d5a21521377d8a57c131a6175b9

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.''.

5b5c89ecd07be6f8c130d44addad89369c67f5dcb100d45acd82bfbf7d5f0e2d

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.''.

5659cde278003ef7b34f6d2131df77c1281f59201782561b775701f815cb20b3

TITLE III

-MODERN SERVICE STANDARDS

(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, 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.

d9230640088cac736e7241dfd666093d0d6c709b637eb3f0ff63ea0570a714d5

(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 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)''.

f1f7ebb63d807293f49355f7f7b5fe5595cf79488352abeb28e70b508c092421

TITLE IV

-PROVISIONS RELATING TO FAIR COMPETITION

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.''.

84772895fbda76c7d5dc402c58bae009c410751a78468d4c8f65d5f69697b243

(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.''.

93e4f3daf2c59ceef77ac93075aa0fbc0bff353f88424ea5ee5051101f56caad

(a) In General.--Section 409 of title 39, United States Code, is
amended by striking subsections (d) and (e) and inserting the
following:
``(d)(1) For purposes of the provisions of law cited in paragraphs
(2)(A) and (2)(B), respectively, the Postal Service--
``(A) shall be considered to be a `person', as used in the
provisions of law involved; and
``(B) shall not be immune under any other doctrine of sovereign
immunity from suit in Federal court by any person for any violation
of any of those provisions of law by any officer or employee of the
Postal Service.
``(2) This subsection applies with respect to--
``(A) the Act of July 5, 1946 (commonly referred to as the
`Trademark Act of 1946' (15 U.S.C. 1051 and following)); and
``(B) the provisions of section 5 of the Federal Trade
Commission Act to the extent that such section 5 applies to unfair
or deceptive acts or practices.
``(e)(1) To the extent that the Postal Service, or other Federal
agency acting on behalf of or in concert with the Postal Service,
engages in conduct with respect to any product which is not reserved to
the United States under section 1696 of title 18, the Postal Service or
other Federal agency (as the case may be)--
``(A) shall not be immune under any doctrine of sovereign
immunity from suit in Federal court by any person for any violation
of Federal law by such agency or any officer or employee thereof;
and
``(B) shall be considered to be a person (as defined in
subsection (a) of the first section of the Clayton Act) for
purposes of--
``(i) the antitrust laws (as defined in such subsection);
and
``(ii) section 5 of the Federal Trade Commission Act to the
extent that such section 5 applies to unfair methods of
competition.
For purposes of the preceding sentence, any private carriage of mail
allowable by virtue of section 601 shall not be considered a service
reserved to the United States under section 1696 of title 18.
``(2) No damages, interest on damages, costs or attorney's fees may
be recovered, 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.
``(g)(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.
``(h) 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,''.

933903443265fa0d200608bf5e303b7f9b0b9467dec473ae1b19e0e79ff74336

(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 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.

7ee77a439e5d0bbb9d4a10ea454dc45d4a961d5c7c7b99055cd45a51854905c0

(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 a 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.

611bad48cb191ae72db8f22550f935e361572f77da9269123e6e459040c9d06c

TITLE V

-GENERAL PROVISIONS

(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--
``(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.''.

bee35dc4ebc4eef7480f92cad5761b9a4f300cd26eb07cba480856fd8b5b9ce5

(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.

2e7a3714a1bedfd1577934a50c22be44a20c883c668e32b7505448f7a5860a57

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;''.

942f817bf1dec8cdf63f3c8cad6b80b0140231d684851354ac9b79c671b8e1c8

(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.

51f3c4ed7d0b0c69cbdfbe4464198d1c6a2c71fd0907b33b9ba2d6cd35ef469b

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.''.

ea5da0a27feb0ba2d19ac66e55482eb0de41ee8d9a8ad8e8ef688eac1d9a1214

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''

be117cbb3dc17dd780149aab7615276ceb06b5df166d4ead1adfb5055396c839

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.''.

72da40104f9eaa35363c741dd74034e3e2b134d4e77b107aec541cb14c9e58e7

(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 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.

65969e2c5944a6a5bdba2849817d3fced78f9e1f49769761f16fd605215114aa

(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.

b1818a9600869a93b0d9b82610eabfb987fa1d707a815a5f15e9f4cd4ec9bf7b

(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.

c3240be270478b670be41929ef3180eca6c409a34a5fe9c4c96aee612f0003a1

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).

e6d3ad1294a4cd2a9e7bc8efbb73b6a5bdc4c2c54ca22cb787614831102a0c24

(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.

89846620ceb70edcea5b9150e37d07c1c55439909b83adf9867b2ba65d97367f

(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.

8ca5404768046a0e3054026c555aed6230ba74c7b2fabd7f3b74ccd481bebe3a

INJURIES.
(a) Report by the Inspector General.--
(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).

2ce44269af75226aa99f80ef1795ce5758340fbfd5ccbeb756e2d844b2b97df7

(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.

2381074803eb05fee014977841b84191effe3acefc845c7e0bdc27dacc4a6833

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.

21ad0b5d6a5c249f2c557f86e74bbbb23fdedcc605c2556efe9cebad8f0de076

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.

1f8f32b40317367a73e1d2a1916dbdf4a1f1fcca2b7b943fc2927aac2d1aab12

(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.

29f6f69bb8be29d0e2114f3c6d5aef7c0ad03ff9f032e0c4368044e1db4d887b

(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.

130a2edb804c79022a5afd346e48036df6d4fc6264bc732048744e3ca3074c2b

(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 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.

23bf7974d9d999b53b84c5a12645f2e2193043f8d9d34a539f4f1137e828d82c

(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.

646c30051078b63d1ee88ae421d842d5c2185436c70fd9b9d0d7f15f8d9adb1e

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.

2462c381578c3fe462a09d8d893403b7bdc268291db745185b2aa9944fc029bf

This title may be cited as the ``Postal Civil Service Retirement
and Health Benefits Funding Amendments of 2006''.

46062c6d6508d6385f3fe60f5b2244539173bb56b77c4b1f70ee7445571ce582

TITLE VIII

-POSTAL SERVICE RETIREMENT AND HEALTH BENEFITS FUNDING

(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.

968f2401b4079d4139898e6be54171fa1fccdb8a03019a412aac6b1c29d52f6b

(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;
``(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.

8953750992136049eb4bdae0e8322542bb806f8d1b9f783fd2df8505425cda33

(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.

f5433d58345040a79670b696e9351d81397bc6a95a3b70546d81a94a5e7ca3f8

(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.

5e902611dbcb250461f4bdea6f264bcdbdeea008a7ddbfb82b8b61e3d29cf76a

(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;''.

a168cbcbccc46c93f0c78fc6e798eced64f4d3aab9bec57f6826ddb52dd44c16

TITLE IX

-COMPENSATION FOR WORK INJURIES

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.''.

43b81eb3f56da62f3cbe4aecedcbf64c3dabd7cf594c2afe1f2d2bbe5481846c

(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.

0ef3afa59fdaacae82e3936402dfd4c6a33b2434a770580e5ed32226bd428258

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).
``(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).''.

6fd9dd383155a35286b174ce9da4340e0a1276de7d03383d675b42c7150aefcf

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.

3a79587cd521525dead9043fca12aba6d07ddd2a8f278787442a53d978ddfa62

(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.

01a63a99d59894e1c557dcb565d268c0e79ec5c86be9711ef6a69b23ab373346

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.

014753403dfa8037f7f85a899f7bd9dee890376c9cea8bdcd0f0281ca386d1f7

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.

7b50117390a90c2938336373476fb3c3c1c9409baa428e416d7a0555c5b13292

(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.
``(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,''.

e6c7c09cfac1b0be0314cb7c2873ba16ce3357228f991f3abb1c22cf2f50f545

(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.

9e3ed6ac0d7f3397b4500064fe0314cd7697661ce3d285831a0c3b11c9457baa

(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

dc64d41761a88e5ddf23a48f09b5ddf77af4f5a1f1b3eb73be3e2ff2556cd251

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 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''.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.

1a2edb71c91db9de82effc45fffcc7740dd9ffa91d9b082331d2b47f0a1c883f

Postal Accountability and Enhancement Act

Other Sections