TABLE OF CONTENTS:
Title I: Redesignation of the Board of Governors, the
Postmaster General and the Postal Rate Commission
Title II : New System Relating to Postal Rates, Classes, and
Services
Subtitle A: In General
Subtitle B: Related Provisions
Title III: General Authority
Title IV: Miscellaneous Provisions Relating to the Budget
and Appropriations Process
Title V: Provisions Relating to Transportation, Carriage, or
Delivery of Mail
Title VI: Studies
Title VII: Inspectors General
Title VIII: Law Enforcement
Subtitle A: Amendments to Title 39, United States Code
Subtitle B: Other Provisions
Postal Modernization Act of 1999 - Title I: Redesignation of the Board of Governors, the Postmaster General and the Postal Rate Commission - Amends Federal law regarding the U.S. Postal Service to redesignate: (1) Governors and the Board of Governors as Directors and the Board of Directors (Board); (2) the Postmaster General as the Postmaster General and Chief Executive Officer of the Service (PMG); and (3) the Postal Rate Commission as the Postal Regulatory Commission (Commission).
Title II: New System Relating to Postal Rates, Classes, and Services - Subtitle A: In General - Exempts from the amendments of this title the free mailing privileges of: (1) the diplomatic corps of members of the Postal Union of the Americas and Spain; (2) the blind and other physically handicapped; and (3) balloting materials under the Uniformed and Overseas Citizens Absentee Voting Act.
(Sec. 201) Requires the Service to request the Commission to make a recommended decision on baseline rates for all products in the noncompetitive and in the competitive categories of mail. Sets forth requirements for the rate for products in the reduced-rate category of mail. Declares null and void any rate case pending as of the date of enactment of this Act.
Prescribes limitations on rates for the noncompetitive category of mail, and procedures for determining the adjustment factor to be established for an upcoming five-year ratemaking cycle.
Requires the Board to establish rates for competitive products (priority mail, expedited mail, mailgrams, international mail, and parcel post). Authorizes the Commission to order the Service to discontinue any competitive product which persistently fails to cover its costs. Requires rates for competitive products to cover the collective costs for each year for all competitive and noncompetitive products.
Authorizes the Service to conduct market (including large-scale market) tests of experimental noncompetitive and competitive products, subject to specified requirements.
Prescribes criteria for the identification of noncompetitive and competitive products, and for the transfer of products between categories.
Sets forth reporting and auditing requirements.
(Sec. 202) Authorizes the Service to enter into negotiated service agreements with postal service users in accordance with specified requirements.
Revises procedures for the processing of rate and service complaints.
(Sec. 203) Establishes in the Treasury a revolving Postal Service Competitive Products Fund, available without fiscal-year limitation for the payment of all attributable costs, institutional costs, and other expenses incurred by the Service in providing competitive products.
(Sec. 204) Authorizes the Board to establish under the laws of a State a private, nongovernmental, for-profit USPS Corporation which may offer any postal or nonpostal product or service offered by the Service, acquire shares of individual private companies, and participate in joint ventures with such companies.
Subtitle B: Related Provisions - Sets forth the authority of the Commission to issue subpoenas.
(Sec. 212) Revises eligibility requirements for Commissioners and Directors.
(Sec. 213) Authorizes appropriations for the Commission.
(Sec. 214) Provides for change-of-address orders involving a commercial mail receiving agency (CMRA).
(Sec. 215) Provides for the eligibility of certain matter for mailing at specified former rates even though such matter is designed primarily for free circulation or for circulation at nominal rates, or fails to meet certain former requirements.
Title III: General Authority - Revises the rulemaking authority of the Service.
(Sec. 302) Exempts competitive products from the prohibition against the Service's granting any undue and unreasonable preference to any domestic or international user.
(Sec. 303) Authorizes the Service to employ guards for all buildings and areas owned or occupied by, or under the charge and control of, the Service. Specifies that such guards shall have, with respect to such property, the powers of special police officers. Authorizes the Chief Executive Officer to take specified actions with respect to such property.
(Sec. 304) Treats the date of postmark as the date of appeal in connection with the closing or consolidation of post offices.
(Sec. 305) Specifies unfair competition prohibitions for private for-profit USPS Corporations.
(Sec. 306) Revises requirements for international postal arrangements, granting the Secretary of State primary authority for the conduct of foreign policy with respect to international postal and delivery services. Prohibits the Service from tendering exported shipments of international mail to governmental authorities of any country for clearance and importation except in accordance with procedures and laws equally applicable to similar shipments transmitted by private companies. Denies access to special customs procedures to mail shipments imported from a foreign country unless such foreign country makes such special customs procedures available to shipments from the United States by the Service and by private companies.
(Sec. 307) Revises requirements for suits by and against the Service.
Title IV: Miscellaneous Provisions Relating to the Budget and Appropriations Process - Amends the Postal Reorganization Act to require the Service, regarding anyone receiving benefits as a former Post Office Department officer or employee, to have the same authorities and responsibilities as it has with respect to a Service officer or employee receiving such benefits.
Title V: Provisions Relating to Transportation, Carriage, or Delivery of Mail - Repeals postal provisions regarding transportation of mail by surface carrier.
(Sec. 501) Repeals the six-year limit on contracts for mail transportation where special conditions apply or special equipment is involved. Allows the Service to determine an advisable or appropriate length of time.
(Sec. 502) Revises the contracting authority of the Service for mail transportation by aircraft.
(Sec. 503) Repeals the Service's authority to suspend the operation of any letter carriage requirements on any mail route when the public interest requires the suspension.
Prescribes requirements for the private carriage of mail.
(Sec. 504) Repeals the Service's authority to impose fines for unreasonable or unnecessary delays or other delinquencies in the air transportation of mail on routes extending beyond U.S. borders.
Title VI: Studies - Directs the Board to provide, by contract, for the National Academy of Public Administration to study and report to the Service, the President, and the Congress on how employee- management relations within the Service may be improved.
(Sec. 602) Directs the Service to study and report to the President, the Congress, and the Commission any recommendations as to the appropriate scope and standards for universal postal services to be assured by the U.S. Government consistent with statutory postal policy and general duties.
(Sec. 603) Directs the Department of Justice to: (1) report to the President and Congress on Federal and State laws that apply differently to Service products in the competitive category and similar products provided by private companies; and (2) recommend measures for ending such legal discrimination.
(Sec. 604) Directs the Board to study and report to the President and Congress on the extent to which women and minorities are represented in supervisory and management positions within the Service.
Requires the Service to take necessary measures to ensure that, for purposes of conducting performance appraisals of supervisory or managerial employees, appropriate consideration be given to: (1) meeting affirmative action goals; (2) achieving equal employment opportunity requirements; and (3) implementing plans designed to achieve greater diversity in the workforce.
(Sec. 605) Requires the Service to develop, be prepared to implement, whenever necessary, and report to its Board and Congress a comprehensive plan under which reemployment assistance shall be afforded to employees displaced as a result of the automation or privatization of any of its functions.
(Sec. 606) Directs the Board to study and report to the President and Congress on the number and value of contracts and subcontracts the Postal Service has entered into with women, minorities, and small businesses.
Title VII: Inspectors General - Amends the Inspector General Act of 1978 to provide for appointment of an Inspector General of the Postal Regulatory Commission and an Inspector General of the U.S. Postal Service (the latter appointed by the President).
Title VIII: Law Enforcement - Subtitle A: Amendments to Title 39, United States Code - Makes Federal assault statutes applicable to postal contract employees.
(Sec. 802) Authorizes the court, upon finding that a sexually oriented advertisement has been mailed in violation of postal provisions, to assess a civil penalty. Specifies that each piece of mail sent in violation of such provisions constitutes a separate violation, and any penalty assessed shall be paid to the Service for deposit into the Postal Service Fund. Repeals a prohibition of pandering advertisements.
(Sec. 803) Provides for the deposit in the Fund of amounts (including proceeds from the sale of forfeited items) from any civil forfeiture conducted by the Service and from any forfeiture resulting from an investigation in which the Service has primary responsibility, subject to specified requirements.
(Sec. 804) Sets civil penalties for prohibited mailing and deficient packaging of hazardous matter.
Subtitle B: Other Provisions - Amends the Federal criminal code to set penalties for: (1) stalking Federal and postal officers and employees; and (2) mailing controlled substances, unless in accordance with rules and regulations authorized by the Service.
(Sec. 813) Directs the U.S. Sentencing Commission to amend its sentencing guidelines to: (1) enhance penalties for stealing or destroying a quantity of undelivered U.S. mail; and (2) establish that the intended loss in a theft of an access device shall be based on the greater of the credit line of such device or the actual unauthorized charges.
(Sec. 814) Modifies the Federal criminal code to: (1) set penalties for breaking into a post office box or postal products vending machine and for receiving, possessing, concealing, or disposing of any mail matter, money, or other U.S. property in violation of post office larceny provisions; (2) increase penalties for assaulting with intent to rob persons having lawful custody of mail, money, or other U.S. property (providing for the death penalty under specified circumstances); and (3) prohibit attempting to use or sell forged or counterfeited postage stamps or meter stamps, stamped envelopes, or postal cards, dies, plates, or engraving, and attempting to loan, use, pledge, hypothecate, or convert to personal use postal funds.
[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 22 Introduced in House (IH)]
106th CONGRESS
1st Session
H. R. 22
To modernize the postal laws of the United States.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 6, 1999
Mr. McHugh (for himself and Mr. Burton of Indiana) introduced the
following bill; which was referred to the Committee on Government
Reform, and in addition to the Committee on the Judiciary, for a period
to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
_______________________________________________________________________
A BILL
To modernize 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,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Postal
Modernization Act of 1999''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--REDESIGNATION OF THE BOARD OF GOVERNORS, THE POSTMASTER
GENERAL, AND THE POSTAL RATE COMMISSION
Sec. 101. Redesignation of the Board of Governors.
Sec. 102. Redesignation of the Postmaster General.
Sec. 103. Redesignation of the Postal Rate Commission.
Sec. 104. Other references.
TITLE II--NEW SYSTEM RELATING TO POSTAL RATES, CLASSES, AND SERVICES
Subtitle A--In General
Sec. 201. Establishment.
Sec. 202. Amendments to chapter 36.
Sec. 203. Postal Service Competitive Products Fund.
Sec. 204. USPS Corporation.
Sec. 205. Postal and nonpostal products.
Subtitle B--Related Provisions
Sec. 211. Authority for Postal Regulatory Commission to issue
subpoenas.
Sec. 212. Qualification requirements for Commissioners and Directors.
Sec. 213. Appropriations for the Commission.
Sec. 214. Change-of-address order involving a commercial mail receiving
agency.
Sec. 215. Rates for mail under former section 4358.
TITLE III--GENERAL AUTHORITY
Sec. 301. Rulemaking authority.
Sec. 302. General duties.
Sec. 303. Employment of postal police officers.
Sec. 304. Date of postmark to be treated as date of appeal in
connection with the closing or
consolidation of post offices.
Sec. 305. Unfair competition prohibited.
Sec. 306. International postal arrangements.
Sec. 307. Suits by and against the Postal Service.
TITLE IV--MISCELLANEOUS PROVISIONS RELATING TO THE BUDGET AND
APPROPRIATIONS PROCESS
Sec. 401. Provisions relating to benefits under chapter 81 of title 5,
United States Code, for officers and
employees of the former Post Office
Department.
Sec. 402. Technical and conforming amendments.
TITLE V--PROVISIONS RELATING TO TRANSPORTATION, CARRIAGE, OR DELIVERY
OF MAIL
Sec. 501. Obsolete provisions.
Sec. 502. Expanded contracting authority.
Sec. 503. Private carriage of letters.
Sec. 504. Repeal of section 5403.
TITLE VI--STUDIES
Sec. 601. Employee-management relations.
Sec. 602. Recommendations on universal postal services.
Sec. 603. Study on equal application of laws to competitive products.
Sec. 604. Greater diversity in Postal Service executive and
administrative schedule management
positions.
Sec. 605. Plan for assisting displaced workers.
Sec. 606. Contracts with women, minorities, and small businesses.
TITLE VII--INSPECTORS GENERAL
Sec. 701. Inspector General of the Postal Regulatory Commission.
Sec. 702. Inspector General of the United States Postal Service to be
appointed by the President.
TITLE VIII--LAW ENFORCEMENT
Subtitle A--Amendments to Title 39, United States Code
Sec. 801. Make Federal assault statutes applicable to postal contract
employees.
Sec. 802. Sexually oriented advertising.
Sec. 803. Allow Postal Service to retain asset forfeiture recoveries.
Sec. 804. Hazardous matter.
Subtitle B--Other Provisions
Sec. 811. Stalking Federal officers and employees.
Sec. 812. Nonmailability of controlled substances.
Sec. 813. Enhanced penalties.
Sec. 814. Postal burglary provisions.
Sec. 815. Mail, money, or other property of the United States.
TITLE I--REDESIGNATION OF THE BOARD OF GOVERNORS, THE POSTMASTER
GENERAL, AND THE POSTAL RATE COMMISSION
SEC. 101. REDESIGNATION OF THE BOARD OF GOVERNORS.
(a) Amendments to Title 39, United States Code.--Title 39, United
States Code, is amended--
(1) in sections 102, 202, 204, 205, 402, 414, 1005, 3604,
3621, 3623, 3624, 3625, 3628, 3641, and 3684, in the analysis
for chapter 2 (in the items relating to sections 202 and 205,
respectively), and in the analysis for chapter 36 (in the item
relating to section 3625) by striking ``Governors'' each place
it appears and inserting ``Directors''; and
(2) in sections 202, 205, and 1002 by striking ``Governor''
each place it appears and inserting ``Director''.
(b) Amendment to the Federal Salary Act of 1967.--Section 225(f)(E)
of the Federal Salary Act of 1967 (2 U.S.C. 356(E)) is amended by
striking ``Governors of the Board of Governors of the United States
Postal Service'' and inserting ``Directors of the Board of Directors of
the United States Postal Service''.
(c) Amendments to Title 5, United States Code.--Title 5, United
States Code, is amended in sections 8344(e) and 8468(c) by striking
``Governor of the Board of Governors of the United States Postal
Service'' and inserting ``Director of the Board of Directors of the
United States Postal Service''.
(d) Amendments to the Ethics in Government Act of 1978.--The Ethics
in Government Act of 1978 (5 U.S.C. App.) is amended--
(1) in section 101(f)(6) by striking ``Governor of the
Board of Governors of the United States Postal Service'' and
inserting ``Director of the Board of Directors of the United
States Postal Service''; and
(2) in sections 103(c) and 106(b)(6) by striking
``Governors of the Board of Governors of the United States
Postal Service'' and inserting ``Directors of the Board of
Directors of the United States Postal Service''.
(e) Amendments to Title 18, United States Code.--Title 18, United
States Code, is amended in sections 1735 and 3061 by striking
``Governors'' each place it appears and inserting ``Directors''.
SEC. 102. REDESIGNATION OF THE POSTMASTER GENERAL.
(a) Amendments to Title 39, United States Code.--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 ``; and'', and by adding at the end the following:
``(5) `Postmaster General' means the Postmaster General and
Chief Executive Officer of the United States Postal Service
appointed under section 202(a) of this title.''.
(b) Amendments to the Ethics in Government Act of 1978.--The Ethics
in Government Act of 1978 (5 U.S.C. App.) is amended in sections
101(f)(6), 103(c), and 106(b)(6) by striking ``Postmaster General'' and
inserting ``Postmaster General and Chief Executive Officer of the
United States Postal Service''.
(c) Amendments to Title 18, United States Code.--Title 18, United
States Code, is amended in sections 501, 1703, 1704, and 1709 by
striking ``Postmaster General'' each place it appears and inserting
``Postmaster General and Chief Executive Officer of the United States
Postal Service''.
SEC. 103. REDESIGNATION OF THE POSTAL RATE COMMISSION.
(a) Amendments to Title 39, United States Code.--Title 39, United
States Code, is amended in sections 404, 1001, 1002, 2003, 3601, 3602,
3603, 3604, 3622, 3623, 3624, 3625, 3628, 3641, and 3661, in the
analysis for chapter 36 (in the item relating to subchapter I), and in
the heading for subchapter I of chapter 36 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''.
SEC. 104. OTHER REFERENCES.
(a) Board of Governors, etc.--Whenever 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 Board of Governors of the United States Postal Service
(or any Governor or Governors thereof), such reference shall be
considered a reference to the Board of Directors of the United States
Postal Service (or any Director or Directors thereof, as appropriate).
(b) Postmaster General.--Whenever 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 Postmaster General, such reference shall be considered a
reference to the Postmaster General and Chief Executive Officer of the
United States Postal Service.
(c) Postal Rate Commission.--Whenever reference is made in any
provision of law (other than this Act or a provision of law amended by
this Act), regulation, rule, document, or other record of the United
States to the Postal Rate Commission, such reference shall be
considered a reference to the Postal Regulatory Commission.
TITLE II--NEW SYSTEM RELATING TO POSTAL RATES, CLASSES, AND SERVICES
Subtitle A--In General
SEC. 201. ESTABLISHMENT.
(a) In General.--Title 39, United States Code, is amended by adding
after chapter 36 the following:
``CHAPTER 37--NEW SYSTEM FOR ESTABLISHING POSTAL RATES, CLASSES, AND
SERVICES
``SUBCHAPTER I--DEFINITIONS
``Sec.
``3701. Definitions.
``3702. Free mailing privileges unaffected.
``SUBCHAPTER II--BASELINE RATES
``3721. Determination of baseline rates.
``3722. Provisions relating to reduced-rate categories of mail.
``3723. Automatic termination of any rate case that may be pending.
``SUBCHAPTER III--RATES FOR PRODUCTS IN THE NONCOMPETITIVE CATEGORY OF
MAIL
``3731. Applicability; definitions.
``3732. Limitations on rates.
``3733. Adjustment factor.
``3734. Action of the Board.
``SUBCHAPTER IV--RATES FOR PRODUCTS IN THE COMPETITIVE CATEGORY OF MAIL
``3741. Applicability; definition.
``3742. Action of the Board.
``3743. Provisions applicable to competitive products individually.
``3744. Provisions applicable to competitive products collectively.
``SUBCHAPTER V--MARKET TESTS OF EXPERIMENTAL PRODUCTS
``3751. Market tests of experimental noncompetitive products.
``3752. Market tests of experimental competitive products.
``3753. Large-scale market tests.
``3754. Adjustment for inflation.
``3755. Conversion to permanence.
``3756. Effective date.
``SUBCHAPTER VI--PROVISIONS RELATING TO THE INTRODUCTION AND
CATEGORIZATION OF PRODUCTS
``3761. Criteria for the identification of noncompetitive and
competitive products.
``3762. New noncompetitive products.
``3763. New competitive products.
``3764. Transfers of products between categories of mail.
``3765. Transition provisions for new or transferred noncompetitive
products.
``SUBCHAPTER VII--REPORTING REQUIREMENTS AND RELATED PROVISIONS
``3771. Annual reports by the Commission.
``3772. Annual reports to the Commission.
``3773. Annual determination of compliance.
``3774. Other reports.
``SUBCHAPTER I--DEFINITIONS
``Sec. 3701. Definitions
``For purposes of this chapter:
``(1) Product.--The term `product' means a class of mail or
type of postal service, including--
``(A) a subclass or other similar subordinate unit
thereof; and
``(B) the next level of subordinate units thereof
(below the first level of subordinate units, as
referred to in subparagraph (A)).
``(2) Rate.--The term `rate', as used with respect to any
products, includes fees for postal services.
``(3) Product in the noncompetitive category of mail.--The
term `product in the noncompetitive category of mail' or
`noncompetitive product' means a product subject to subchapter
III.
``(4) Product in the competitive category of mail.--The
term `product in the competitive category of mail' or
`competitive product' means a product subject to subchapter IV.
``(5) Consumer price index.--The term `Consumer Price
Index' means the Consumer Price Index for All Urban Consumers
published monthly by the Bureau of Labor Statistics of the
Department of Labor.
``(6) Year.--The term `year' means a fiscal year.
``Sec. 3702. Free mailing privileges unaffected
``Nothing in this chapter shall be considered to affect any free
mailing privileges accorded under any of sections 3217 or 3403 through
3406.
``SUBCHAPTER II--BASELINE RATES
``Sec. 3721. Determination of baseline rates
``(a) Requirement That a Ratemaking Request Be Made.--The Postal
Service shall, during the 18-month period beginning on the date of
enactment of this chapter, submit a request under section 3622 for a
recommended decision by the Postal Regulatory Commission on rates for
all products in the noncompetitive category of mail and all products in
the competitive category of mail.
``(b) Policies and Criteria.--The request under subsection (a)
shall be made in accordance with the same policies and criteria as
would otherwise apply in the case of a request made under section 3622,
except that--
``(1) in applying section 3621, any determination of total
estimated costs of the Postal Service shall be made without
including any provision for contingencies; and
``(2) to the extent that any class of mail or kind of
mailer under section 3626(a) is involved, such request shall be
made in conformance with the requirements of section 3722.
``(c) Procedures for Consideration.--
``(1) In general.--Except as otherwise provided in
subsection (b) or any other provision of this subchapter, the
request made under subsection (a) shall be considered and acted
on in the same way as any other request made under section
3622.
``(2) Additional authority.--For purposes of the request
made under subsection (a), section 3622(b) shall be applied as
if it had been amended by inserting after `the policies of this
title' the following: `(including the second sentence of
section 3621)'.
``(d) Effective Date of Any Rates Established Pursuant to
Request.--All rates established pursuant to the request made under
subsection (a) shall take effect as of the same date, determined in
accordance with applicable provisions of chapter 36, but in no event
later than the last day of the 18-month period beginning on the date on
which such request is made.
``(e) Definition of Baseline Rates.--
``(1) In general.--Subject to section 3722(c), for purposes
of this title, the baseline rate for each product shall be the
rate in effect for such product as of the applicable date under
paragraph (2), irrespective of whether--
``(A) any rate change is in fact requested for such
product under subsection (a);
``(B) ratemaking proceedings are in fact completed
by such date; or
``(C) the rate in effect for such product as of
such date is a permanent or temporary one.
``(2) Date as of which baseline rates are to be
determined.--The applicable date under this paragraph shall
be--
``(A) the date as of which any baseline rates,
established pursuant to the request made under
subsection (a), are to take effect in accordance with
subsection (d); or
``(B) if subparagraph (A) does not apply (whether
because proceedings under chapter 36 are not completed
before the deadline under subsection (d) or otherwise),
the last day of the 18-month period referred to in
subsection (d).
``Sec. 3722. Provisions relating to reduced-rate categories of mail
``(a) Definitions.--For purposes of this section, the terms `costs
attributable' and `regular-rate category' have the same meanings as are
given them by section 3626(a).
``(b) Requirement.--
``(1) In general.--Notwithstanding any other provision of
this title (but subject to paragraph (3)), the rate established
under this chapter for a product within a reduced-rate category
of mail (as referred to in section 3721(b)(2)), including the
baseline rate therefor (if applicable), may not exceed--
``(A) in the case of a competitive product, the
rate described in paragraph (2); or
``(B) in the case of a noncompetitive product, the
lesser of--
``(i) the rate described in paragraph (2);
or
``(ii) the highest rate allowable for such
product under subsection (c) or (d) of section
3732, whichever is less.
``(2) Rate described.--The rate described in this paragraph
is, with respect to any product, the rate that would then be in
effect for such product if established under section 3626(a) in
conformance with the requirement that--
``(A) the estimated costs attributable (expressed
on a per-unit basis) used in establishing such rate,
not exceed
``(B) the estimated costs attributable (similarly
expressed) used in establishing the rate that is to be
concurrently in effect for the same product within the
most closely corresponding regular-rate category.
``(3) Noncompetitive product minimum.--Nothing in this
subsection shall be considered to waive the limitation set
forth in section 3732(b) (relating to the minimum rate required
for a noncompetitive product).
``(c) Self-Executing Correction Mechanism.--If the baseline rate
for a product would not otherwise be in compliance with subsection (b),
such rate shall be reduced by the minimum amount necessary in order to
achieve compliance.
``Sec. 3723. Automatic termination of any rate case that may be pending
``To the extent that any proceedings relating to a request made
under section 3622 before the date of enactment of this chapter remain
pending as of such date of enactment, any further action taken in
connection with such request shall be null and void.
``SUBCHAPTER III--RATES FOR PRODUCTS IN THE NONCOMPETITIVE CATEGORY OF
MAIL
``Sec. 3731. Applicability; definitions
``(a) Applicability.--This subchapter applies with respect to the
products in the first, second, third, and fourth baskets of products,
respectively.
``(b) Definitions.--For purposes of this subchapter:
``(1) First basket of products.--The term `first basket of
products' means--
``(A) single-piece first-class letters (both
domestic and international);
``(B) single-piece first-class cards (both domestic
and international);
``(C) single-piece parcels (both domestic and
international); and
``(D) special services.
``(2) Second basket of products.--The term `second basket
of products' means all first-class mail not in the first basket
of products.
``(3) Third basket of products.--The term `third basket of
products' means periodicals.
``(4) Fourth basket of products.--The term `fourth basket
of products' means standard mail (except for parcel post).
``(c) Rule of Construction.--
``(1) In general.--Except as provided in paragraph (2),
mail matter referred to in paragraphs (1) through (4) of
subsection (b) shall, for purposes of such paragraphs, be
considered to have the respective meanings given them under the
mail classification schedule (as defined by section 3623) as of
the effective date of this chapter.
``(2) Updates.--The Postal Regulatory Commission shall,
whenever any relevant change occurs (whether pursuant to a
product transfer under section 3764, the reclassification of a
product under section 3623, or the introduction of a new
noncompetitive product under section 3762), prescribe new lists
of products within the respective baskets described in
subsection (b). The revised lists shall indicate how and when
any previous lists (including under subsection (b)) are
superseded, and shall be published in the Federal Register.
``Sec. 3732. Limitations on rates
``(a) In General.--Except as otherwise provided in this subchapter,
the rate in effect for a noncompetitive product may not, during any
year in a ratemaking cycle (as defined in section 3733(a))--
``(1) be less than the minimum rate required for such
product in such year, as determined under subsection (b);
``(2) be greater than the maximum rate allowable for such
product in such year, as determined under subsection (c); or
``(3) be changed by a percentage that would cause such rate
to fall outside of the range allowable for such product in such
year, as determined under subsection (d).
Nothing in paragraph (3) shall be considered to authorize the
establishment of any rate less than the minimum rate required under
paragraph (1) or greater than the maximum rate allowable under
paragraph (2).
``(b) Minimum Rate Required.--For purposes of this section, the
minimum rate required for a product in a year is the minimum rate
which, if kept in effect for such product throughout the year (or, if
implemented after the start of the year, throughout the remainder of
the year, but taking into account all revenues from such product that
are attributable to earlier periods in the same year) will be
sufficient to ensure that such product will bear the direct and
indirect postal costs attributable to such product for such year.
``(c) Maximum Rate Allowable.--
``(1) In general.--For purposes of this section, the
maximum rate allowable for a product in a year shall be equal
to the rate determined by increasing or decreasing (as
applicable)--
``(A) the maximum rate allowable for such product
under this subsection in the year preceding the year
for which the maximum rate allowable is being
determined (disregarding any rounding rules), by
``(B) the percentage adjustment applicable for the
year for which the maximum rate allowable is being
determined, as determined under paragraph (2).
``(2) Percentage adjustment applicable.--For purposes of
this section, the percentage adjustment applicable shall, for
any year, be equal to--
``(A) the change in the Consumer Price Index for
such year, adjusted by
``(B) the adjustment factor for such year.
``(3) Definitions.--For purposes of this section:
``(A) Change in the consumer price index.--The
change in the Consumer Price Index for a year shall be
equal to the percentage (expressed as a positive value,
a negative value, or zero, as the case may be) by which
the Consumer Price Index for the preceding year differs
from the Consumer Price Index for the second preceding
year.
``(B) Consumer price index for a year.--The
Consumer Price Index for a year is the average of the
Consumer Price Index for the 12-month period ending on June 30th of
such year.
``(C) Adjustment factor.--The adjustment factor for
any year shall be determined in accordance with section
3733.
``(4) Special rule.--For purposes of determining the
maximum rate allowable for any particular product during the
first year of the first ratemaking cycle, paragraph (1)(A)
shall be applied by substituting `the baseline rate for such
product' for `the maximum rate allowable for such product under
this subsection in the year preceding the year for which the
maximum rate allowable is being determined (disregarding any
rounding rules)'.
``(5) Rounding rule.--The maximum rate allowable for a
product within the first basket of products shall be equal to
the rate determined for such product under this subsection
(disregarding this paragraph), rounded to the nearest cent
(rounding \1/2\ of a cent to the next higher cent).
``(d) Range Allowable.--For purposes of this section, the range
allowable for a product in any year is the range delimited by--
``(1) a maximum rate equal to the rate determined by
increasing or decreasing (as applicable)--
``(A) the rate last in effect for such product
before the start of such year, by
``(B) the percentage equal to the percentage
adjustment applicable with respect to such product for
such year, plus 2 percent; and
``(2) a minimum rate equal to the rate determined by
increasing or decreasing (as applicable)--
``(A) the rate last in effect for such product
before the start of such year, by
``(B) the percentage equal to the percentage
adjustment applicable with respect to such product for
such year, minus 2 percent.
For purposes of applying paragraphs (1)(B) and (2)(B) in any year, the
Board of Directors may, in a manner consistent with the policies of
this title and the requirements of this subchapter, establish a single
percentage which shall be lower than, and which shall be substituted
for, the percentage adjustment applicable that would otherwise be
applied under both of those paragraphs in such year. Such single
percentage shall be the same for every product in the noncompetitive
category.
``Sec. 3733. Adjustment factor
``(a) Definition of Ratemaking Cycle.--
``(1) In general.--For purposes of this title, the term
`ratemaking cycle' means--
``(A) the 5-year period beginning on the first day
of the second year beginning after the date as of which
the baseline rates are determined under section
3721(e)(2); and
``(B) each 5-year period beginning on the day after
the last day of the immediately preceding 5-year period
under this subsection.
``(2) Earlier commencement date.--The Postal Regulatory
Commission may advance the commencement date of the first
ratemaking cycle to the date which occurs 1 year earlier than
the date that would otherwise apply under subparagraph (1)(A),
but only if that earlier date does not precede the date as of
which all requirements of this section have been completed with
respect to such cycle.
``(b) Procedures for Determining Adjustment Factor.--
``(1) Commencement of proceedings.--
``(A) In general.--Except as provided in
subparagraph (B), the Postal Regulatory Commission
shall, beginning in September of the second year before
the start of each ratemaking cycle, provide the
opportunity for a hearing on the record under sections
556 and 557 of title 5 to 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, with respect to the adjustment factor to be
established for the upcoming ratemaking cycle.
``(B) Exception.--For purposes of the first hearing
under this subsection, proceedings shall be commenced
during the second month beginning on or after the date
as of which the baseline rates are determined under
section 3721(e)(2).
``(2) Rules of proceedings.--In order to conduct its
proceedings with utmost expedition consistent with procedural
fairness to the parties, the Commission may (without
limitation) adopt rules which provide for--
``(A) the advance submission of written direct
testimony;
``(B) the conduct of prehearing conferences to
define issues, and for other purposes to insure orderly
and expeditious proceedings;
``(C) discovery both from the Postal Service and
the parties to the proceedings;
``(D) limitation of testimony; and
``(E) the conduct of the entire proceedings off the
record with the consent of the parties.
``(3) Printing and notice requirements.--The Commission's
decision and the record of the Commission's hearings shall be
made generally available at the time the decision is issued and
shall be printed and made available for sale by the Public
Printer within 10 days following the day the decision is
issued.
``(4) Timing.--
``(A) In general.--Except as provided in
subparagraph (B), all actions required of the
Commission under this section, including those required
under paragraph (3), shall be completed by the end of
the year preceding the commencement of the ratemaking
cycle to which the decision relates.
``(B) Exception.--In any case in which the
Commission determines that the Postal Service has
unreasonably delayed any proceedings under this section
by failing to respond within a reasonable time to any
lawful order of the Commission, the Commission may
extend the deadline described in subparagraph (A) by
one day for each day of such delay.
``(C) Effect of delay on ratemaking authority.--No
rate change for any noncompetitive product may take
effect during any period of delay. For purposes of the
preceding sentence, the term `period of delay' means,
in the circumstance described in subparagraph (B), the
period beginning on the day following the original
deadline (as described in subparagraph (A)) and ending
on the date of the new deadline (as determined under
subparagraph (B)).
``(c) Requirements Relating to the Establishment of Adjustment
Factor.--
``(1) In general.--An adjustment factor shall be
established in accordance with--
``(A) the policies of this title; and
``(B) the best evidence of likely Postal Service
productivity, and of specific sources of cost savings
to the Postal Service, during the ratemaking cycle to
which an adjustment factor is to apply.
``(2) Requirement that adjustment factor be a negative
value or zero.--
``(A) In general.--Except as provided in
subparagraph (B), an adjustment factor may be no
greater than zero.
``(B) Exceptions.--A positive adjustment factor may
be established only upon a written determination by the
Postal Regulatory Commission that an exception to
subparagraph (A) is necessary--
``(i) because of any new and significant
statutorily imposed funding obligations not
fully funded through appropriations; or
``(ii) because postal revenues during the
upcoming ratemaking cycle would otherwise be
insufficient 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.
A determination under clause (ii) shall take into
account costs anticipated by the Postal Service for the
period of time involved, such as wages, benefits, and
transportation costs, consistent with the provisions of
subsection (g).
``(d) Same Adjustment Factor To Be Uniformly Applied to All
Products.--For purposes of each year in a ratemaking cycle, the same
adjustment factor shall apply--
``(1) to all baskets under section 3731; and
``(2) to all products within each such basket.
``(e) How an Adjustment Factor Is To Be Expressed and Applied.--
``(1) How an adjustment factor is to be expressed.--An
adjustment factor established under this section shall be
expressed as a percentage.
``(2) How an adjustment factor is to be applied.--To adjust
a change in the Consumer Price Index by an adjustment factor,
the magnitude of the adjustment factor shall--
``(A) if the adjustment factor is a positive value,
be added to the change in the Consumer Price Index; or
``(B) if the adjustment factor is a negative value,
be subtracted from the change in the Consumer Price
Index.
``(f) Exigent Circumstances.--
``(1) In general.--Notwithstanding subsection (d), upon a
majority vote of the members of the Board of Directors then
holding office, the Postal Service may request the Postal Regulatory
Commission to render a decision on changing the adjustment factor to be
applied during the then current ratemaking cycle (after having
previously been established under this section for such cycle).
``(2) Conditions.--A request made under paragraph (1) may
be granted only upon a written determination by the Commission
that the change requested is justified by one or more of the
same reasons as would justify the establishment of a positive
adjustment factor (as set forth in subsection (c)(2)(B)).
``(3) Effect; duration.--A change granted under this
subsection--
``(A) shall supersede the adjustment factor that
would otherwise apply under this section (with
appropriate changes to the respective limitations under
paragraphs (2) and (3) of section 3732(a)); and
``(B) shall remain in effect for the rest of the
ratemaking cycle involved, subject to paragraph (5).
``(4) Expedited consideration.--A request made under
paragraph (1) shall be acted on under this section in the same
manner as if initiated under subsection (b)(1), except that a
decision on any such request shall be rendered not later than 6
months after the date on which the request is made.
``(5) Frequency.--Nothing in this section shall be
considered to limit the number of times this subsection may be
invoked during a ratemaking cycle.
``(g) Postal Regulatory Commission Not To Interfere With Collective
Bargaining.--It is the sense of the Congress that nothing in this
section should restrict, expand, or otherwise affect any of the rights,
privileges, or benefits of either employees of the United States Postal
Service, or labor organizations representing employees of the United
States Postal Service, under chapter 12 of this title, the National
Labor Relations Act, any handbook or manual affecting employee labor
relations within the United States Postal Service, or any collective
bargaining agreement.
``Sec. 3734. Action of the Board
``(a) Authority To Establish Rates.--The Board of Directors, with
the written concurrence of a majority of all of the members of the
Board then holding office, shall establish rates for products in the
noncompetitive category of mail in accordance with the requirements of
this subchapter and the policies of this title.
``(b) Procedures.--
``(1) In general.--Rates shall be established in writing,
complete with a statement of explanation and justification.
``(2) Publication.--The Board shall cause each such
decision (complete with the accompanying statement) and the
record of the Board's proceedings to be published in the
Federal Register at least 45 days before the rate or rates to
which they pertain are to take effect.
``(c) Limitations on Authority.--
``(1) In general.--Except as provided in paragraph (2)--
``(A) Frequency.--Ratemaking authority under this
section may not be exercised more than once for
purposes of any year.
``(B) Uniform effective date.--All changes in rates
pursuant to this section in a year shall take effect on
the same date.
``(2) Exception for change due to exigent circumstances.--
``(A) In general.--If the maximum rate allowable
for a product in a year changes pursuant to a request
granted under section 3733(f), then, in the event that
ratemaking authority under this section was previously
exercised with respect to such product for such year,
such rate may be modified, not more than once more in
such year, based on the change in the maximum rate
allowable (and the corresponding change in the range
allowable).
``(B) Uniform effective date.--All changes in rates
pursuant to this paragraph shall, to the extent based
on the same set of changes (as referred to in
subparagraph (A)), take effect beginning on the same
date.
``SUBCHAPTER IV--RATES FOR PRODUCTS IN THE COMPETITIVE CATEGORY OF MAIL
``Sec. 3741. Applicability; definition
``(a) Applicability.--This subchapter applies with respect to--
``(1) priority mail;
``(2) expedited mail;
``(3) mailgrams;
``(4) international mail; and
``(5) parcel post;
except that this subchapter does not apply with respect to any product
then currently in the noncompetitive category of mail.
``(b) Definition.--For purposes of this subchapter, the term `costs
attributable', as used with respect to a product, means the direct and
indirect postal costs attributable to such product.
``(c) Rule of Construction.--
``(1) In general.--Except as provided in paragraph (2),
mail matter referred to in paragraphs (1) through (5) of
subsection (a) shall, for purposes of such paragraphs, be
considered to have the respective meanings given them under the
mail classification schedule (as defined by section 3623) as of
the effective date of this chapter.
``(2) Updates.--The Postal Regulatory Commission shall,
whenever any relevant change occurs (whether pursuant to a
product transfer under section 3764 or an action taken under
section 3763), prescribe new lists of the products to which
this subchapter applies. The revised lists shall indicate how
and when any previous lists (including under subsection (a))
are superseded, and shall be published in the Federal Register.
``Sec. 3742. Action of the Board
``(a) Authority To Establish Rates.--The Board of Directors, with
the written concurrence of a majority of all of the members of the
Board then holding office, shall establish rates for products in the
competitive category of mail in accordance with the requirements of
this subchapter and the policies of this title.
``(b) Procedures.--Section 3734(b) shall apply with respect to
rates and decisions under this section, except that for purposes of
this section, section 3734(b) shall be applied by substituting `by such
date before the effective date of any new rates as the Board considers
appropriate' for `at least 45 days before the rate or rates to which
they pertain are to take effect'.
``(c) Effective Date.--
``(1) In general.--Except as provided in paragraph (2), the
ratemaking provisions of this subchapter shall be effective
beginning with the rates to be established for the first year
beginning on or after the date as of which the baseline rates
are determined under section 3721(e)(2).
``(2) Exception.--The ratemaking provisions of this
subchapter shall, with respect to all international mail as to
which this subchapter applies, be effective beginning on the
date as of which the baseline rates are determined under
section 3721(e)(2), subject (until the entirety of this
subchapter becomes effective in accordance with paragraph (1))
only to the requirement under section 3743(a).
``Sec. 3743. Provisions applicable to competitive products individually
``(a) In General.--Rates for products in the competitive category
of mail shall be established in a manner such that each such product
shall bear the costs attributable to such product in such year.
``(b) Treatment of Shortfalls.--If revenues derived from a
competitive product in any year are not sufficient to meet the costs
attributable to such product for such year, the shortfall shall be made
up in accordance with section 3744(c)(1).
``(c) Mandatory Discontinuance of Loss-Making Products.--
``(1) In general.--If a competitive product persistently
fails to cover the costs attributable to such product, the
Postal Regulatory Commission may, in accordance with procedures
which the Commission shall prescribe and after considering all
relevant circumstances, order the Postal Service to discontinue
such product permanently.
``(2) Procedures.--The procedures prescribed to carry out
this subsection--
``(A) shall provide the opportunity for a hearing
on the record under sections 556 and 557 of title 5 to
the Postal Service, users of the mail, and an officer
of the Commission who shall be required to represent
the interests of the general public;
``(B) may include rules of proceedings that provide
for any procedure or other matter listed under section
3733(b)(2); and
``(C) shall require that any final decision be
accompanied by a statement setting forth the reasons
therefor.
``Sec. 3744. Provisions applicable to competitive products collectively
``(a) Cost-Coverage Requirement.--
``(1) In general.--Rates for competitive products shall be
established in a manner such that the cost-coverage ratio for
all competitive products (collectively) shall, for each year to
which this subchapter applies (as referred to in section
3742(c)), be at least equal to the cost-coverage ratio for such
year for all competitive and noncompetitive products
(collectively).
``(2) Cost-coverage ratio.--For purposes of this section,
the term `cost-coverage ratio' means, for the products and year
involved, the ratio that--
``(A) total revenues from those products in such
year, bears to
``(B) total costs attributable to those products in
such year.
``(b) Adjustment for Special Circumstances.--The Postal Regulatory
Commission may, by rule, and in order to ensure that ratios under this
section appropriately compensate for any significant and objective
differences in the nature and composition of costs attributable to
competitive and noncompetitive products, respectively, provide for the
exclusion of such costs attributable as the Commission considers to be
uniquely or disproportionately associated with either category of
products.
``(c) Special Rules To Make Up for Certain Shortfalls.--
``(1) Subtraction to make up for any shortfall described in
section 3743(b).--In any year in which a shortfall described in
section 3743(b) occurs in the case of any competitive product,
an amount equal to the amount of such shortfall shall, for
purposes of determining whether the requirement under
subsection (a) has been satisfied in such year, be subtracted
from total revenues derived from all competitive products
(collectively) in such year. Nothing in the preceding sentence
shall be considered to permit or require that the same amount
be concurrently subtracted from total revenues derived from
competitive and noncompetitive products (collectively).
``(2) Subtraction to make up for any shortfall in
contributions toward institutional costs in a previous year.--
If, in any year, the requirement under subsection (a) is not
met (determined applying the provisions of subsection (b),
paragraph (1), and this paragraph based on any failure to
satisfy subsection (a) in the previous year), the difference
between the total revenues considered to have been derived from
competitive products in the year involved (determined applying
such provisions), and the minimum amount of total revenues from
competitive products which would have been required in order to
satisfy subsection (a) (determined applying such provisions),
shall, for purposes of determining whether the requirement
under subsection (a) is met in the following year, be
subtracted from total revenues derived from competitive
products (collectively) in such following year. Nothing in the
preceding sentence shall be considered to permit or require
that the same amount be concurrently subtracted from total
revenues derived from competitive and noncompetitive products
(collectively).
``(d) Phasein Authority.--If necessary in order to afford the
Postal Service an opportunity to increase efficiency to competitive
market levels, the Postal Regulatory Commission may, by written
determination made as part of its first adjustment factor case under
section 3733, provide for the phasein of subsection (a) over the course
of the first ratemaking cycle. If the Commission grants relief under
this subsection, it shall review the continuing need for and the extent
of such relief annually.
``SUBCHAPTER V--MARKET TESTS OF EXPERIMENTAL PRODUCTS
``Sec. 3751. Market tests of experimental noncompetitive products
``(a) Authority.--
``(1) In general.--The Postal Service may conduct market
tests of experimental noncompetitive 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 section 3623 (relating to mail classification), section 3732
(relating to limitations on rates), or section 3762 (relating
to new noncompetitive products).
``(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 mail users, significantly different from
all products offered by the Postal Service within the 2-year
period preceding the start of the test.
``(2) Dollar-amount limitation.--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 section 3754.
``(3) Market disruption.--The introduction or continued
offering of the product will not cause unreasonable market
disruption (either for competitive or noncompetitive products).
``(4) Correct categorization.--The testing of the product
under this section is consistent with the criteria under
section 3761(b)(2).
``(c) Notice.--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
setting out the basis for the Postal Service's determination that the
market test is covered by this section and describing the nature and
scope of the market test.
``(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) Cancellation.--If the Postal Regulatory Commission at any
time determines that a market test under this section fails, with
respect to any particular product, to meet one or more of the
conditions set forth in subsection (b), it may issue any order that
would be allowable under section 3662(c)(6). A determination under this
subsection shall be made in accordance with such procedures as the
Commission shall by regulation prescribe.
``Sec. 3752. Market tests of experimental competitive products
``(a) Authority.--
``(1) In general.--The Postal Service may conduct market
tests of experimental competitive products in accordance with
this section.
``(2) Provisions waived.--Any noncompliance with section
3743(a) (relating to costs-attributable requirement) on the
part of a product shall not, if it occurs while such product is
being tested under this section, be taken into account for
purposes of any sanction or other action that might otherwise
be permitted or required under any of the following:
``(A) Section 3662(c)(3) (relating to ordering the
adjustment of rates to lawful levels pursuant to a rate
complaint).
``(B) Section 3743(c) (relating to mandatory
discontinuance of loss-making products).
``(C) Section 3773(e) (relating to use of profits).
``(3) Provisions not waived.--Nothing in this section shall
be considered to permit or require the exclusion of any costs
or revenues that are attributable to a product that is being
tested under this section from any determination under section
3744 (relating to provisions applicable to competitive products
collectively).
``(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 mail users, significantly different from
all products offered by the Postal Service within the 2-year
period preceding the start of the test.
``(2) Dollar-amount limitation.--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 section 3754.
``(3) Market disruption.--The introduction or continued
offering of the product will not cause unreasonable market
disruption (either for competitive or noncompetitive products).
``(4) Correct categorization.--The testing of the product
under this section is consistent with the criteria under
section 3761(b)(2).
``(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 setting out the basis for the Postal
Service's determination that the market test is covered by this
section and describing the nature and scope of the market test.
``(2) Safeguards.--The provisions of section 3604(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
3604(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
3604(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) Cancellation.--If the Postal Regulatory Commission at any
time determines that a market test under this section fails, with
respect to any particular product, to meet one or more of the
conditions set forth in subsection (b), it may issue any order that
would be allowable under section 3662(c)(6). A determination under this
subsection shall be made in accordance with such procedures as the
Commission shall by regulation prescribe.
``Sec. 3753. Large-scale market tests
``(a) Authority.--The Postal Service may, in accordance with this
section, conduct--
``(1) market tests involving any experimental
noncompetitive product that would be allowable under section
3751 but for subsection (b)(2) thereof; and
``(2) market tests involving any experimental competitive
product that would be allowable under section 3752 but for
subsection (b)(2) thereof.
``(b) Condition.--Notwithstanding any other provision of this
section, a product may not be tested under this section unless the
total revenues that are anticipated, or in fact received, by the Postal
Service from such product do not exceed $100,000,000 in any year,
subject to section 3754.
``(c) Provisions Waived.--Section 3751(a)(2) shall apply with
respect to an experimental noncompetitive product being tested under
this section, and section 3752(a)(2) shall apply with respect to an
experimental competitive product being tested under this section, as if
such test were instead being conducted section 3751 or 3752, as the
case may be.
``(d) Regulations.--The Postal Regulatory Commission shall by
regulation establish rules for the conduct of market tests under this
section, including rules for the termination of any such test. In
adopting rules under this subsection, the Commission shall consider
such matters as--
``(1) the Postal Service's interest in the development and
testing of new products with a minimum of regulatory
impediments; and
``(2) the public interest in preventing unfair or
disruptive competition.
``(e) 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.
``Sec. 3754. Adjustment for inflation
``In the case of a year following the first year in which any
testing under this subchapter is permitted, the dollar amount contained
in sections 3751(b)(2), 3752(b)(2), and 3753(b), respectively, shall be
adjusted at the same time and by the same percentage adjustment as the
maximum rates allowable for noncompetitive products are adjusted
pursuant to 3732(c) (but deeming the adjustment factor under paragraph
(2)(B) thereof to be zero for purposes of this section).
``Sec. 3755. Conversion to permanence
``A request to have an experimental product under this chapter
converted to a permanent one--
``(1) shall be made and acted on in conformance with
applicable provisions of subchapter VI; and
``(2) shall be made by the Postal Service.
``Sec. 3756. Effective date
``Market tests under this subchapter may be conducted in any year
beginning with the first year beginning on or after the date as of
which the baseline rates are determined under section 3721(e)(2).
``SUBCHAPTER VI--PROVISIONS RELATING TO THE INTRODUCTION AND
CATEGORIZATION OF PRODUCTS
``Sec. 3761. Criteria for the identification of noncompetitive and
competitive products
``(a) In General.--Except as provided in subchapter V, no product
may be offered until such product has been assigned to the
noncompetitive or competitive category of mail, whichever is
appropriate (and, if a noncompetitive product, its proper basket).
``(b) Criteria.--
``(1) In general.--Determinations as to the category of
mail to which any particular product should be assigned
(whether in connection with a new product under section 3762 or
3763, the proposed transfer of a product under section 3764, or
the proposed reclassification of an existing product under
subchapter II of chapter 36) shall be made in conformance with
paragraph (2).
``(2) Characteristics by category.--The noncompetitive
category of products shall embrace all products 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 or raise prices significantly without risk of
losing business to other firms offering similar products, or
that it can effectively set the price below competitive costs
to forestall entry by new competitors or to eliminate existing
competitors. The competitive category of products shall embrace
all other products.
``(c) Initial and Updated Lists.--The respective products which, as
of any particular date, are within the noncompetitive or competitive
category of mail (and any particular basket, if applicable) shall be as
identified under sections 3731 and 3741.
``Sec. 3762. New noncompetitive products
``(a) Request.--The Postal Service--
``(1) may from time to time request that the Postal
Regulatory Commission submit a recommended decision on the
classification for a new noncompetitive product; and
``(2) shall, as part of any request made under paragraph
(1) (other than in the case of a transferred product), also
request a recommended decision on the baseline rate for such
product for purposes of section 3765.
``(b) Hearings.--In response to any request made by the Postal
Service under this section, the Postal Regulatory Commission shall
promptly initiate a proceeding in accordance with the procedures set
out in section 3624.
``(c) Factors and Recommended Decision.--The Postal Regulatory
Commission shall make a recommended decision on (1) the baseline rate
for the new product based on the factors set out in section 3622(b),
and (2) the classification for the new product based on the factors and
requirements under section 3623(b). Such recommended decision shall be
submitted to the Directors for action in accordance with section 3625,
and subject to review in accordance with section 3628(a).
``Sec. 3763. New competitive products
``(a) Authority.--The Postal Service may, in accordance with this
section, offer a new competitive product and, with respect to
competitive products only, otherwise make changes in the mail
classification schedule.
``(b) Conditions.--An action under this section may not be taken
unless it satisfies each of the following:
``(1) Criteria.--To the extent that the classification of a
product is involved, the action would be consistent with the
criteria under section 3761(b)(2).
``(2) Costs attributable.--To the extent that the
establishment of a rate for a competitive product is involved,
the requirement under section 3743(a) would be met.
``(c) Notice.--
``(1) In general.--At least 30 days before it offers a new
competitive product or otherwise makes any change in the mail
classification schedule under this section, the Postal Service
shall file with the Postal Regulatory Commission and publish in
the Federal Register a notice setting out the basis for the
Postal Service's determination that the product satisfies each
of the conditions under subsection (b).
``(2) Safeguards.--The provisions of section 3604(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
3604(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
3604(g)(3)).
``(d) Cancellation.--If the Postal Regulatory Commission determines
that an action proposed to be taken under this section fails to meet
either of the conditions set forth in subsection (b), the Commission
shall, before the proposed action is scheduled to be taken or to
commence (as applicable), order that the proposed action be canceled. A
determination under this subsection shall be made in accordance with
such procedures as the Commission shall by regulation prescribe.
``Sec. 3764. Transfers of products between 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, after proceedings conducted in conformity with subsection (d),
transfer 1 or more products--
``(1) from the noncompetitive category of mail to the
competitive category of mail; or
``(2) from the competitive category of mail to the
noncompetitive category of mail.
``(b) Criteria.--
``(1) In general.--A decision under this section shall be
made in accordance with the policies of this title and the
criteria set forth in section 3761(b)(2).
``(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 noncompetitive 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, under section 1696 of
title 18, is reserved to the United States, subject to the same
exception as set forth in the last sentence of section
409(d)(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; and
``(B) the views of those who use the product
involved on the appropriateness of the proposed action.
``(c) Transfers of Subclasses and Other Subordinate or Further
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 or further subordinate units of the
class of mail or type of postal service involved.
``(d) Requirements.--Proceedings required to be conducted in
accordance with this subsection--
``(1) shall provide the opportunity for a hearing on the
record under sections 556 and 557 of title 5 to the Postal
Service, users of the mail, and an officer of the Postal
Regulatory Commission who shall be required to represent the
interests of the general public;
``(2) may include rules of proceedings that provide for any
procedure or other matter listed under section 3733(b)(2); and
``(3) shall require that any final decision be accompanied
by a statement setting forth the reasons therefor.
Paragraph (3) of section 3733(b) (relating to printing and notice
requirements) shall apply with respect to each Commission decision and
related record of Commission hearings under this section.
``Sec. 3765. Transition provisions for new or transferred
noncompetitive products
``(a) In General.--In the case of a product that becomes assigned
to the noncompetitive category of mail under section 3762 or that is
transferred from the competitive to the noncompetitive category of mail
under section 3764--
``(1) the maximum rate initially allowable for such product
after that assignment or transfer shall be determined in
accordance with subsection (b); and
``(2) the initial range allowable for such product after
that assignment or transfer shall be determined in accordance
with subsection (c).
``(b) Maximum Rate Initially Allowable.--The maximum rate allowable
during the first year in which a product subject to this subsection is
offered shall be determined in a manner similar to the special rule
under section 3732(c)(4), subject to the following:
``(1) Transferred products.--In the case of any product
that becomes a noncompetitive product pursuant to a transfer
under section 3764, the rate last in effect for such product
(before the effective date of its transfer) shall be treated as
its `baseline rate'.
``(2) Other products.--In the case of any product assigned
to the noncompetitive category of mail pursuant to section
3762, the `baseline rate' for such product shall be determined
under subchapter II of chapter 36 pursuant to the request made
under section 3762(a)(2) with respect thereto.
(c) Range Initially Allowable.--The range allowable during the
first year in which a product subject to this subsection is offered
shall be determined in accordance with section 3732(d), deeming the
rate determined for such product under subsection (b) of this section
to be the rate specified by paragraphs (1)(A) and (2)(A) of section
3732(d).
``SUBCHAPTER VII--REPORTING REQUIREMENTS AND RELATED PROVISIONS
``Sec. 3771. Annual reports by the Commission
``(a) In General.--The Postal Regulatory Commission shall render an
annual report to the President and the Congress concerning the
operations of the Commission under this title.
``(b) Additional Information.--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--
``(1) 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);
``(2) free or reduced rates for postal services as required
by this title; and
``(3) 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.
The Commission shall detail the bases 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. 3772. Annual reports to the Commission
``(a) Costs, Revenues, and Rates.--
``(1) In general.--Except as provided in subsection (c),
the Postal Service shall, no later than 90 days after the end
of each year, prepare and submit to the Postal Regulatory
Commission a report (together with such nonpublic annex thereto
as the Commission may require under subsection (e)) analyzing
costs, revenues, and rates in sufficient detail to demonstrate
that the rates in effect for all products during such year
(including, for purposes of section 3744, rates for all
competitive products collectively) complied with all applicable
requirements of this title.
``(2) Auditing requirement.--Before submitting a report
(and any annex thereto) under paragraph (1), the Postal Service
shall have the information contained in such report (and annex)
audited by the Inspector General. The results of any such audit
shall be submitted along with the report to which it pertains.
``(b) Quality of Services.--Except as provided in subsection (c),
the Postal Service shall, no later than 90 days after the end of each
year, prepare and submit to the Postal Regulatory Commission a report
(together with such nonpublic annex thereto as the Commission may
require under subsection (e)) which shall, for each noncompetitive
product provided in such year, provide--
``(1) market information, including mail volumes; and
``(2) measures of the speed and reliability of postal
service, including--
``(A) the service standard applicable to such
product;
``(B) the actual level of service (described in
terms of speed of delivery and reliability) provided;
and
``(C) the degree of customer satisfaction with the
service provided.
``(c) Market Tests.--In carrying out subsections (a) and (b) with
respect to experimental products offered through market tests under
subchapter V in a year--
``(1) the Postal Service may, to the extent that a test
under section 3751 or 3752 is involved, report summary data on
the costs, revenues, and quality of service by market test; and
``(2) the Postal Service shall, to the extent that a test
under section 3753 is involved, report such data as the Postal
Regulatory Commission requires.
``(d) Supporting Matter.--The Postal Regulatory Commission shall
have access, in accordance with such regulations as the Commission
shall prescribe, to the working papers and any other supporting matter
of the Postal Service and the Inspector General in connection with any
information submitted under this section.
``(e) Content and Form of Reports.--
``(1) In general.--The Postal Regulatory Commission shall,
by regulation, prescribe the content and form of the public
reports (and any nonpublic annex and supporting matter relating
thereto) to be provided by the Postal Service under this
section. In carrying out this subsection, the Commission shall
give due consideration to--
``(A) providing the public with adequate
information to assess the lawfulness of rates charged;
``(B) avoiding unnecessary or unwarranted
administrative effort and expense on the part of the
Postal Service; and
``(C) protecting the confidentiality of
commercially sensitive information.
``(2) Revised requirements.--The Commission may, on its own
motion or on request of an interested party, initiate
proceedings (to be conducted in accordance with regulations
that the Commission shall prescribe) to improve the quality,
accuracy, or completeness of postal service data required by
the Commission under this subsection whenever it shall appear
that--
``(A) the attribution of costs or revenues to
postal products has become significantly inaccurate or
can be significantly improved;
``(B) the quality of service data has become
significantly inaccurate or can be significantly
improved; or
``(C) such revisions are, in the judgment of the
Commission, otherwise necessitated by the public
interest.
``(f) Confidential Information.--
``(1) In general.--If the Postal Service determines that
any document or portion of a document, or other matter, which
it provides to the Postal Regulatory Commission in a nonpublic
annex under this section or pursuant to subsection (d) contains
information which is described in section 410(c) of this title,
or exempt from public disclosure under section 552(b) of title
5, the Postal Service shall, at the time of providing such
matter to the Commission, notify the Commission of its
determination, in writing, and describe with particularity the
documents (or portions of documents) or other matter for which
confidentiality is sought and the reasons therefor.
``(2) Treatment.--Any information or other matter described
in paragraph (1) to which the Commission gains access under
this section shall be subject to paragraphs (2) and (3) of
section 3604(g) in the same way as if the Commission had
received notification with respect to such matter under section
3604(g)(1).
``(g) Other Reports.--The Postal Service shall submit to the Postal
Regulatory Commission, together with any other submission that it 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. 3773. Annual determination of compliance
``(a) Profits Defined.--For purposes of this section, the term
`profits', with respect to a year, means the amount by which--
``(1) total revenues of the Postal Service attributable to
such year, exceeds
``(2) total costs of the Postal Service (including
institutional costs) attributable to such year,
as determined based on the report under section 3772(a) for such year.
``(b) Opportunity for Public Comment.--After receiving the reports
required under section 3772 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.
``(c) Determination of Compliance.--Not later than 90 days after
receiving the submissions required under section 3772 with respect to a
year, the Postal Regulatory Commission shall make a written
determination as to whether--
``(1) any rates or fees in effect during such year (for
products individually or collectively) were not in compliance
with applicable provisions of this title;
``(2) any performance goals established under section 2803
or 2804 for such year were not met; and
``(3) any noncompetitive product failed to meet any service
standard during such year.
``(d) If No Noncompliance Is Found.--If, for a year, no instance of
noncompliance is determined under subsection (c) (or no determination
under subsection (c) is timely made), then, up to 100 percent of the
profits attributable to such year (if any) may be used by the Postal
Service for the purposes described in subsection (f).
``(e) If Any Noncompliance Is Found.--If, for a year, a timely
determination of noncompliance is made under subsection (c)--
``(1)(A) the Postal Regulatory Commission may order, based
on the nature, circumstances, extent, and seriousness of the
noncompliance, that a specific percentage (not to exceed 50
percent) of the profits attributable to such year (if any) be
set aside for the purposes described in subsection (g); and
``(B) the remainder (or any portion) of those profits may
be used by the Postal Service for the purposes described in
subsection (f); and
``(2) the Commission may, in the case of any violation as
to which a remedy could be ordered by the Commission under
section 3662(c), order any such remedy under this section.
``(f) Bonuses.--
``(1) In general.--The Postal Service shall establish a
program under which cash bonuses may be paid to officers and
employees of the Postal Service out of any profits which are
available for that purpose.
``(2) Requirements.--Under the program--
``(A) bonuses may be paid to officers and employees
of the Postal Service under criteria which shall be
fair and equitable;
``(B) the sole source of funding shall be any
profits from any year, subject to the application of
subsection (e)(1) with respect to such year; and
``(C) bonuses shall not be precluded (in whole or
in part) by the limitation on compensation under the
last sentence of section 1003(a) in a year, if--
``(i) total profits attributable to the
preceding year, exceed
``(ii) the amount equal to 1 percent of
total revenues of the Postal Service
attributable to such preceding year.
``(3) Discretionary nature of program.--Nothing in this
section shall be considered to create any entitlement to
receive bonuses or to require that any portion of the profits
from any year be used for bonuses in excess of whatever amount
the Postal Service, in its sole discretion, considers
appropriate.
``(4) Considerations relating to the portion of profits to
be available for bonuses.--In any decision relating to what
portion of the available profits from any year shall be made
available or used for bonuses under this subsection, there
shall be taken into consideration--
``(A) the obligation on the part of the Postal
Service to provide efficient and economical postal
services in accordance with this title; and
``(B) the question of what portion of those profits
(if any) should be used--
``(i) to retire debts or other obligations
of the Postal Service;
``(ii) to limit future increases in postal
rates or fees for products in the
noncompetitive category of mail; or
``(iii) to carry out any other purpose.
``(g) Dedication of Funds Toward Reducing Rates and Fees.--
``(1) In general.--Any amounts ordered to be set aside
under subsection (e)(1)(A) may not be used for any purpose
other than to defray increases in future rates and fees for
products in the noncompetitive category of mail or to reduce
the rates and fees already in effect for such products.
``(2) Compliance.--Whenever an order under paragraph (1)(A)
or (2) of subsection (e) is issued, the Postal Service shall
include in its next comprehensive statement under section
2401(e) (and each subsequent statement thereunder until such
order has been fully complied with) a statement as to--
``(A) what measures have been or will be
implemented in order to comply with the order,
including the schedule in accordance with which any
amounts set aside pursuant to an order issued under
subsection (e)(1)(A) shall be used or made available
for the purposes described in paragraph (1); and
``(B) if (or to the extent that) an order under
subsection (e)(1)(A) is involved--
``(i) the amount of savings actually passed
on to mailers during the reporting period
(whether through reduced rates and fees or
otherwise), as compared to the amount of
savings scheduled to have been passed on to
mailers during such period; and
``(ii) to the extent that the amount of
savings actually passed on to mailers is less
than the amount scheduled to have been passed
on to mailers during a reporting period, what
measures (if any) have been or will be
implemented to reconcile the difference.
``(3) Nonredundant information.--Nothing in paragraph (2)
shall be considered to require that the same information be
reported if included in a previous report under this
subsection.
``(h) Reporting Requirement Relating to Bonuses.--Included in its
comprehensive statement under section 2401(e) for any period shall be--
``(1) the name of each person receiving a bonus during such
period which would not have been allowable but for the
provisions of subsection (f)(2)(C);
``(2) the amount of the bonus; and
``(3) the amount by which the limitation referred to in
subsection (f)(2)(C) was exceeded as a result of such bonus.
``Sec. 3774. Other reports
``The Postal Regulatory Commission shall, at least every 6 years,
render a report to the President and the Congress concerning--
``(1) the operation of the system consisting of chapter 36
and this chapter; and
``(2) recommendations for any legislation or other measures
necessary to improve the effectiveness or efficiency of that
system.''.
(b) Clerical Amendment.--The table of chapters for part IV of title
39, United States Code, is amended by adding at the end the following:
``37. New System for Establishing Postal Rates, Classes, and 3701''.
Services.
SEC. 202. AMENDMENTS TO CHAPTER 36.
(a) Authority To Fix Rates and Classes.--Section 3621 of title 39,
United States Code, is amended--
(1) in the first sentence by striking ``this chapter'' and
inserting ``this chapter and chapter 37''; and
(2) by repealing the last 2 sentences.
(b) Rates and Fees.--
(1) In general.--The first sentence of section 3622(a) of
title 39, United States Code, is amended to read as follows:
``Whenever necessary in order to provide for the establishment
of any baseline rate needed for purposes of section 3762(a)
(relating to certain new noncompetitive products), the Postal
Service shall request the Postal Regulatory Commission to
submit a recommended decision on changes in a rate or rates of
postage or in a fee or fees for postal services in accordance
with the policies of this title and applicable provisions of
chapter 37.''.
(2) Conforming amendments.--Such section 3622(a) is further
amended--
(A) by striking ``(a)'' and inserting ``(a)(1)'';
and
(B) by adding at the end the following:
``(2) A request under this subsection may not be submitted except
in the circumstance described in paragraph (1).''.
(c) Mail Classification.--
(1) Repeal.--Section 3623 of title 39, United States Code,
is amended by striking subsection (a) and by redesignating
subsections (b) through (d) as subsections (a) through (c),
respectively.
(2) Modified authority.--Subsection (a) of section 3623 of
title 39, United States Code, as so redesignated by paragraph
(1), is amended to read as follows:
``(a) The Postal Service may from time to time request that the
Postal Regulatory Commission submit, or the Commission may submit to
the Directors on its own initiative, a recommended decision on changes
in the mail classification schedule for noncompetitive products (within
the meaning of subchapter III of chapter 37).''.
(d) Recommended Decisions of Commission.--Subsection (c) of section
3624 of title 39, United States Code, is amended--
(1) in paragraph (1) by striking ``a request under section
3622 of this title for a recommended decision by the Commission
on changes in a rate or rates of postage or in a fee or fees
for postal services'' and inserting ``a request under section
3623 for a recommended decision by the Commission on changes in
the mail classification schedule or a request under section
3762 for a recommended decision by the Commission on the
baseline rate and classification for a new noncompetitive
product,''; and
(2) in paragraph (2) by striking ``3622'' and inserting
``3623 or 3762 (as applicable)''.
(e) Appellate Review.--
(1) Appealability of adjustment factor and product transfer
decisions.--The first sentence of section 3628 of title 39,
United States Code, is amended--
(A) by striking ``A decision'' and inserting ``(a)
A decision'';
(B) by inserting before ``may be appealed'' the
following: ``on a request made under section 3623 or
3762, and any final decision by the Commission under
section 3733 or 3764,''; and
(C) by striking ``3624(a) of this title'' and
inserting ``3624(a), 3733(b), 3762(b), or 3764(d) (as
the case may be)''.
(2) Appeals from all other final orders of the
Commission.--
(A) Title 39 amendment.--Section 3628 of title 39,
United States Code, is amended by adding at the end the
following:
``(b) Any proceeding to enjoin, set aside, annul, or suspend any
order of the Postal Regulatory Commission (except any order appealable
under subsection (a)) shall be brought as provided by and in the manner
prescribed in chapter 158 of title 28.''.
(B) Title 28 amendments.--
(i) Definitions.--Subparagraph (A) of
section 2341(3) of title 28, United States
Code, is amended by inserting ``the Postal
Regulatory Commission,'' after ``the Federal
Maritime Commission,''.
(ii) Orders appealable.--Section 2342 of
title 28, United States Code, is amended by
striking ``and'' at the end of paragraph (6),
by striking the period at the end of paragraph
(7) and inserting ``; and'', and by adding at the end the following:
``(8) all final orders of the Postal Regulatory Commission
made reviewable by section 3628(b) of title 39.''.
(3) Conforming amendments.--Sections 3625 and 3681 of title
39, United States Code, are amended by striking ``3628'' each
place it appears and inserting ``3628(a)''.
(f) Temporary Rates and Classes.--
(1) Negotiated service agreements.--Section 3641 of title
39, United States Code, is amended to read as follows:
``Sec. 3641. Negotiated service agreements
``(a) The Postal Service may enter into negotiated service
agreements with users of postal services in accordance with this
section. A negotiated service agreement under this section shall--
``(1) pertain exclusively to products in the noncompetitive
category of mail (within the meaning of subchapter III of
chapter 37);
``(2) require that the contracting mail user perform mail
preparation, processing, transportation, administration, or
other functions that are in addition to or greater than those
required of mailers under provisions of the mail classification
schedule established pursuant to section 3623(b);
``(3) provide for the payment by the contracting mail user
of liquidated damages to the Postal Service for nonperformance
or breach of any of the material terms of the agreement,
including any minimum volume commitments; the amount of such
liquidated damages shall not be less than the difference
between postage and fees paid by such mail user pursuant to the
agreement and the amounts such user would have paid under the
otherwise applicable schedule of rates and fees;
``(4) be for a term of not to exceed 3 years; and
``(5) provide that such agreement, and any amendment or
renewal thereof, shall not become effective until approved by
the Postal Regulatory Commission, and is subject to the
cancellation authority of the Commission under section 3662(c).
``(b) Within 1 year after this subsection takes effect, the Postal
Regulatory Commission shall adopt rules for the consideration of
negotiated service agreements between the Postal Service and users of
postal services, which meet the requirements of subsections (c) and
(d).
``(c) Upon receipt of a proposed negotiated service agreement
entered into by the Postal Service under subsection (a), or any
amendment or renewal thereof, the Postal Regulatory Commission shall
render a decision upon review of the agreement, after notice and
opportunity for comment by interested parties in accordance with
section 553 of title 5, pursuant to the regulations adopted by the
Commission under subsection (b). The Commission shall approve and
recommend implementation of a proposed negotiated service agreement (or
any amendment or renewal thereof) unless, on the basis of the written
data, views, and arguments received, it finds, within 90 days after
receipt of the proposed agreement, amendment, or renewal (subject to
the same type of day-for-day extension as set forth in section
3733(b)(4)(B) for failure by the Postal Service to respond to any
lawful order of the Commission), that--
``(1) the proposed agreement (or amendment or renewal, as
applicable)--
``(A) does not satisfy the conditions and
requirements of subsection (a);
``(B) precludes or materially hinders similarly
situated mail users from entering into agreements with
the Postal Service on the same, or substantially the
same, terms and conditions; or
``(C) cannot reasonably be expected to result in
net benefits to the operation of a nationwide postal
system;
``(2) the Postal Service is unwilling or unable to enter
into such negotiated service agreements with other similarly
situated mail users; or
``(3) rates and fees payable during the term of the
proposed negotiated service agreement are not reasonably
calculated to yield to the Postal Service total revenues that
equal or exceed the sum of--
``(A) the direct and indirect postal costs
attributable to services performed by the Postal
Service under the agreement; and
``(B) a portion of all other costs of the Postal
Service that are equal, on an average unit basis, to
the portion of such costs reasonably assignable to the
classification or classifications of mail service most
similar to the services performed under the agreement.
``(d) Whenever it disapproves a proposed negotiated service
agreement, the Postal Regulatory Commission shall provide written
notice to that effect, together with the reasons therefor.
``(e) Any decision to approve or disapprove a proposed negotiated
service agreement (or amendment or renewal, as applicable) shall be
subject to judicial review in accordance with section 3628(b).
``(f) Nothing in subsections (a) through (e) shall be considered to
limit or otherwise affect any authority available to the Postal Service
under section 3763.''.
(2) Conforming amendment.--The table of sections at the
beginning of chapter 36 of title 39, United States Code, is
amended by striking the item relating to section 3641 and
inserting the following:
``3641. Negotiated service agreements.''.
(g) Rate and Service Complaints.--Section 3662 of title 39, United
States Code, is amended to read as follows:
``Sec. 3662. Rate and service complaints
``(a) Interested parties (including an officer of the Postal
Regulatory Commission representing the interests of the general public)
who believe the Postal Service is charging rates which do not conform
to the policies set out in this title, who believe that the Postal
Service is not providing postal service in accordance with the policies
of this title, or who believe that the Postal Service is otherwise not
acting in conformance with the policies of this title, may lodge a
complaint with the Postal Regulatory Commission in such form and in
such manner as it may prescribe.
``(b)(1) The Postal Regulatory Commission shall, within 90 days
after receiving a complaint under subsection (a), either--
``(A) begin proceedings on such complaint in conformity
with section 3764(d)(1); or
``(B) issue an order dismissing the complaint (together
with a statement of the reasons therefor).
``(2) For purposes of section 3628(b), 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) If the Postal Regulatory Commission finds the complaint to be
justified, it shall--
``(1) in a classification matter covered by section 3623 or
3762, after proceedings in conformity with section 3624, issue
a recommended decision which shall be acted upon in accordance
with the provisions of section 3625;
``(2) in a matter involving a violation of any limitation
under section 3732 (relating to limitations on rates for
noncompetitive products), order the unlawful rates to be
adjusted to lawful levels and the taking of such other action
as it deems appropriate;
``(3) in a matter involving a violation of section 3743(a)
(relating to costs-attributable requirement for competitive
products) or section 3763(b) (relating to conditions to be met
by new competitive products), order the unlawful rates to be
adjusted to lawful levels and the taking of such other action
as it deems appropriate;
``(4) in a matter involving a violation of section 3641,
order the payment of liquidated damages in accordance with the
provisions included in the agreement involved pursuant to the
requirements of section 3641(a)(3) or the cancellation of such
agreement;
``(5) in a matter involving a violation of section 403(c),
order the taking of such action as it deems appropriate;
``(6) in a matter involving a violation of any provision of
subchapter V of chapter 37 (relating to market tests of
experimental products), order the cancellation of the testing
involved or the taking of such other action as it deems
appropriate;
``(7) in a matter involving a violation of section 404a,
order the rescission of any regulation involved or the taking
of such action as it deems appropriate;
``(8) in a matter involving a violation of section 2012(f)
(relating to the minimum amount to be charged by the Postal
Service for goods or services provided to any corporation
established under section 2012), order that the Postal Service
increase its prices to at least the minimum levels required;
``(9) in a matter involving the Postal Service's providing
a nonpostal product that is not permitted under paragraph (6)
of section 404(a), order that the Postal Service cease
providing such product; and
``(10) in a matter not otherwise covered by any of the
preceding provisions of this subsection, render a public report
thereon.
``(d) In addition, in cases of deliberate noncompliance 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 (within the meaning of subchapter IV
of chapter 37) shall be paid out of the Competitive Products Fund
established in section 2011. All receipts from fines imposed under this
subsection shall be deposited in the general fund of the Treasury of
the United States.''.
(h) Limitations.--Section 3684 of title 39, United States Code, is
amended--
(1) by inserting ``and no provision of chapter 37'' after
``no provision of this chapter''; and
(2) by striking ``any provision of section 3682 or 3683 or
chapter 30, 32, or 34 of this title.'' and inserting ``any
provision of this title.''.
(i) Reduced Rates.--Effective as of the date of enactment of this
Act, subclause (VI) of section 3626(a)(3)(B)(ii) of title 39, United
States Code, is amended to read as follows:
``(VI) one-half (or less, as the Postal Service may
prescribe), for any fiscal year after fiscal year 1998.''.
(j) Regulations of the Commission.--Effective as of the date of
enactment of this Act, section 3603 of title 39, United States Code, is
amended by striking ``this chapter.'' and inserting ``this title.''.
(k) Effective Date.--Except as provided in subsection (i) or (j),
this section and the amendments made by this section shall become
effective on the date as of which the baseline rates are determined
under section 3721(e)(2) of title 39, United States Code (as amended by
section 201).
SEC. 203. POSTAL SERVICE COMPETITIVE PRODUCTS FUND.
(a) Establishment.--
(1) In general.--Chapter 20 of title 39, United States
Code, is amended by adding at the end the following:
``Sec. 2011. Postal Service Competitive Products Fund
``(a) There is established in the Treasury of the United States a
revolving fund to be called the Postal Service Competitive Products
Fund which shall be available to the Postal Service without fiscal-year
limitation for the payment of all attributable costs, institutional
costs, and other expenses incurred by the Postal Service in providing
competitive products.
``(b) There shall be deposited in the Postal Service Competitive
Products Fund, subject to withdrawal by the Postal Service--
``(1) revenues from competitive products;
``(2) amounts received from obligations issued by the
Postal Service under this section;
``(3) interest which may be earned on investments of the
Postal Service Competitive Products Fund; and
``(4) any amounts transferred from the Postal Service Fund
under subsection (j).
``(c) The receipts and disbursements of the Postal Service
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.
``(d)(1) If the Postal Service determines that the moneys of the
Postal Service Competitive Products Fund are in excess of current
needs, it may invest such amounts as it deems advisable in any of the
following:
``(A) A corporation established under section 2012.
``(B) Such other investments as it considers appropriate.
``(2)(A) Nothing in paragraph (1)(B) shall be considered to
constitute authority for the Postal Service to invest in the
obligations or securities of, or to make any other investment with
respect to, a commercial entity.
``(B) For purposes of this paragraph, the term `commercial entity'
means any corporation, company, association, partnership, joint stock
company, firm, society, or other similar entity, as further defined
under regulations prescribed by the Postal Regulatory Commission.
``(e) The Postal Service, in its sole discretion, may provide that
amounts which would otherwise be deposited in the Postal Service
Competitive Products Fund shall instead be directly deposited in a
Federal Reserve bank or a depository for public funds selected by the
Postal Service, and may provide for transfers of amounts under this
subsection between or among such accounts and the Postal Service
Competitive Products Fund.
``(f) A judgment against the Postal Service or the Government of
the United States arising out of activities of the Postal Service in
the provision of competitive products (as determined under regulations
which the Postal Regulatory Commission shall prescribe, in consultation
with the Postal Service) shall be paid out of the Postal Service
Competitive Products Fund.
``(g)(1) Subject to the limitations specified in section 2005(a)
(applied in accordance with paragraph (2)), the Postal Service is
authorized to borrow money and to issue and sell such obligations as it
determines necessary to provide for competitive products and deposit
such amounts in the Postal Service Competitive Products Fund, except
that the Postal Service may pledge only the assets of the Postal
Service Competitive Products Fund and pledge and use its revenues and
receipts for the payment of the principal of or interest on such
obligations, for the purchase or redemption thereof, and for other
purposes incidental thereto, including creation of reserve, sinking,
and other funds which may be similarly pledged and used, to such extent
and in such manner as it deems necessary or desirable.
``(2) For purposes of applying any limitation under section
2005(a), the aggregate amount of obligations issued by the Postal
Service which are outstanding at any given 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 all outstanding obligations so issued by the
Postal Service under section 2005 with all outstanding obligations so
issued by the Postal Service under this section.
``(h) The Postal Service may enter into binding covenants with the
holders of such obligations, and with the trustee, if any, under any
agreement entered into in connection with the issuance thereof with
respect to the establishment of reserve, sinking, and other funds,
application and use of revenues and receipts of the Postal Service
Competitive Products Fund, stipulations concerning the subsequent
issuance of obligations or the execution of leases or lease purchases
relating to properties of the Postal Service and such other matters as
the Postal Service deems necessary or desirable to enhance the
marketability of such obligations.
``(i) Obligations issued by the Postal Service under this section
shall--
``(1) not be purchased by the Secretary of the Treasury;
``(2) not be exempt either as to principal or interest from
any taxation now or hereafter imposed by any State or local
taxing authority;
``(3) not be obligations of, nor shall payment of the
principal thereof or interest thereon be guaranteed by, the
Government of the United States, and the obligations shall so
plainly state; and
``(4) notwithstanding the provisions of the Federal
Financing Bank Act of 1973 or any other provision of law
(except as may be specifically provided by reference to this
paragraph in any Act enacted after this paragraph takes
effect), not be eligible for purchase by, or commitment to
purchase by, or sale or issuance to, the Federal Financing
Bank.
``(j) The Postal Service shall, on the first day of the first year
beginning on or after the date as of which the baseline rates are
determined under section 3721(e)(2), transfer from the Postal Service
Fund to the Postal Service Competitive Products Fund an amount that, as
determined by the Postal Regulatory Commission (after notice and
opportunity for comment by interested parties in accordance with
section 553 of title 5), fairly reflects the net value of assets and
liabilities which may be attributed wholly or primarily to competitive
products.
``(k) The Postal Service shall render an annual report to the
Secretary of the Treasury concerning the operation of the Postal
Service Competitive Products Fund, in which it shall address such
matters as risk limitations, reserve balances, allocation or
distribution of moneys, liquidity requirements, and measures to
safeguard against losses. A copy of its then most recent report under
this subsection shall be included together with any other submission
that it is required to make to the Postal Regulatory Commission under
section 3772(g).
``(l) For purposes of this section, the term `competitive product'
has the meaning given such term by section 3701.''.
(2) Clerical amendment.--The table of sections at the
beginning of chapter 20 of title 39, United States Code, is
amended by adding after the item relating to section 2010 the
following:
``2011. Postal Service Competitive Products Fund.''.
(b) Technical and Conforming Amendments.--
(1) 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 Postal Service
Competitive Products Fund,''.
(2) Postal service fund.--
(A) Purposes for which available.--
(i) In general.--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 Postal Service Competitive Products
Fund is available).''.
(ii) Conforming amendment.--Section
2003(e)(1) of title 39, United States Code, is
amended by inserting after ``as provided by
law'' the following: ``(subject to the same
limitation as set forth in the parenthetical
matter under subsection (a))''.
(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''.
(3) Investments.--Subsection (c) of section 2003 of title
39, United States Code, is amended--
(A) by striking ``(c) If'' and inserting ``(c)(1)
Except as provided in paragraph (2), if''; and
(B) by adding at the end the following:
``(2) Nothing in this subsection shall be considered to authorize
any investment in any obligations or securities of a commercial entity
(as defined by section 2011(d)(2)(B)), including any corporation
established under section 2012.''.
(4) Obligations.--
(A) Purposes for which issuance is allowed.--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) Special rule for applying limitations.--
Paragraph (1) of section 2005(a) of title 39, United
States Code, is amended by adding at the end the
following: ``The limitations under the second and third
sentences of this subsection shall be applied in
accordance with section 2011(g)(2).''.
(5) Relationship between the treasury and the postal
service.--Section 2006(c) of title 39, United States Code, is
amended by inserting ``under section 2005'' before ``shall be
obligations''.
SEC. 204. USPS CORPORATION.
(a) Establishment.--Chapter 20 of title 39, United States Code, is
amended by adding after section 2011 (as added by section 203) the
following:
``Sec. 2012. USPS Corporation
``(a) The Board of Directors may establish a private for-profit
corporation under the laws of a State to be known as the USPS
Corporation or such other corporate name as may be duly adopted by the
Corporation. The Board of Directors may serve as incorporators of the
Corporation and take all steps necessary to establish the Corporation,
including the filing of articles of incorporation consistent with the
provisions of this section.
``(b)(1) The Corporation shall not be an agency, instrumentality,
or establishment of the United States, a Government corporation, or a
Government-controlled corporation. Except as provided in this section,
the Corporation shall not be considered part of the Postal Service.
Financial obligations of the Corporation shall not be obligations of,
or guaranteed as to principal or interest by, the Postal Service or the
United States, and the obligations shall so plainly state. No action
shall be allowable against the United States based on actions of the
Corporation.
``(2) The receipts and disbursements of the Corporation shall be
accorded the same budgetary treatment as is accorded to receipts and
disbursements of the Postal Service Fund under section 2009a.
``(c) The Corporation is authorized to issue and have outstanding,
in such amounts as it shall determine, shares of capital stock, without
par value, which shall carry voting rights and be eligible for
dividends. Such shares may be purchased only by the Postal Service
Competitive Products Fund, in such amounts as the Board of Directors of
the Postal Service may deem appropriate.
``(d) Notwithstanding any provision of State law, the articles of
incorporation and bylaws of the Corporation shall provide that its
board of directors shall be named by the Board of Directors of the
Postal Service. The restrictions on postgovernment employment set out
in section 207 of title 18 shall not apply to the acts of an individual
taken in carrying out official duties as a director, officer, or
employee of the Corporation if the individual was an officer or
employee of the Postal Service (including a Director) continuously for
a period of 12 months or longer during the 24 months prior to
employment with the Corporation.
``(e) The Corporation shall have all of the powers conferred upon
it under the laws of the State or States in which it is incorporated.
The Corporation is specifically authorized--
``(1) to offer any postal or nonpostal product (other than
a product covered by the postal monopoly, as defined in section
3764(b)(2));
``(2) acquire shares of individual private companies; and
``(3) participate in joint ventures with individual private
companies.
``(f) The Corporation may purchase goods and services from the
Postal Service, except that the Corporation must pay the Postal Service
the same amount for such goods or services as would be paid by
similarly situated mailers or, if the goods or services are not offered
to the public by the Postal Service, amounts which represent fair
market value.
``(g)(1) Insofar as the Corporation offers postal products which
depend in substantial part on the services of the Postal Service, the
Postal Service shall, to the extent deemed appropriate by the Postal
Regulatory Commission (and subject to such requirements as the
Commission may specify as to form and content), include details of the
activities of the Corporation (including sufficient information to
demonstrate that the requirements of subsection (f) are being complied
with) in the annual reports to the Commission required by section 3772.
``(2) In the event that, based on its review of the information
submitted to it by the Postal Service under paragraph (1), the
Commission determines that the requirements of subsection (f) are not
being complied with, the Commission may issue any order allowable under
subsection (c)(8) or (d) of section 3662.
``(h) As used in this section, the term `State' includes the
District of Columbia.''.
(b) Clerical Amendment.--The table of sections at the beginning of
chapter 20 of title 39, United States Code, is amended by adding after
the item relating to section 2011 (as added by section 203) the
following:
``2012. USPS Corporation.''.
(c) Effective Date.--No authority under section 2012 of title 39,
United States Code (as amended by this section) shall be available
until the first day of the first year beginning on or after the date as
of which the baseline rates are determined under section 3721(e)(2).
SEC. 205. POSTAL AND NONPOSTAL PRODUCTS.
(a) In General.--Section 102 of title 39, United States Code, as
amended by section 102(a) of this Act, is amended by striking ``and''
at the end of paragraph (4), by striking the period at the end of
paragraph (5) and inserting a semicolon, and by adding at the end the
following:
``(6) `postal product' refers to any service that provides
for the physical delivery of letters, printed matter, or
packages weighing up to 70 pounds, including physical
acceptance, collection, sorting, or transportation services
ancillary thereto; and
``(7) `nonpostal product' means any product or service
offered by the Postal Service (or that could have been offered
by the Postal Service under section 404(a)(6), as last in
effect before the date of enactment of the Postal Modernization
Act of 1999) that is not a postal product.''.
(b) Specific Powers.--
(1) In general.--Paragraph (6) of section 404(a) of title
39, United States Code, is amended to read as follows:
``(6)(A) to continue providing or to abolish any nonpostal
product first offered by the Postal Service to the general
public before January 1, 1994 (with any nonpostal products not
offered by the Postal Service to the general public before
January 1, 1994, to be provided by means of a private
corporation organized under section 2012, if at all, instead of
the Postal Service); and
``(B) with respect to any nonpostal products first offered
by the Postal Service to the general public during the period
beginning on January 1, 1994, and ending on the date of
enactment of the Postal Modernization Act of 1999, to continue
to offer such products, but only--
``(i) subject to clause (ii), until such products
are transferred to the private postal corporation
(referred to in subparagraph (A)) in accordance with
such schedule and procedures as the Postal Regulatory
Commission shall by regulation prescribe; or
``(ii) until the first day of the first year of the
first ratemaking cycle (within the meaning of section
3733(a)), if the transfer described in clause (i) has
not been completed by such date.''.
(2) Deadline.--The regulations required under section
404(a)(6)(B) of title 39, United States Code, as amended by
this subsection, shall be prescribed in time to become
effective by the commencement of the first proceedings under
section 3733 of title 39, United States Code (relating to
adjustment factors), as added by section 201.
Subtitle B--Related Provisions
SEC. 211. AUTHORITY FOR POSTAL REGULATORY COMMISSION TO ISSUE
SUBPOENAS.
Section 3604 of title 39, United States Code, is amended by adding
at the end the following:
``(f)(1) Any Commissioner of the Postal Regulatory Commission, any
administrative law judge appointed by the Commission under section 3105
of title 5, and any employee of the Commission designated by the
Commission may administer oaths, examine witnesses, take depositions,
and receive evidence.
``(2) The Chairman of the Commission, any Commissioner designated
by the Chairman, and any administrative law judge appointed by the
Commission under section 3105 of title 5 may, with respect to any
proceeding conducted by the Commission under this title--
``(A) issue subpoenas requiring the attendance and
presentation of testimony of any individual, and the production
of documentary or other evidence, from any place in the United
States, any territory or possession of the United States, the
Commonwealth of Puerto Rico, or the District of Columbia; and
``(B) order the taking of depositions and responses to
written interrogatories.
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.
``(g)(1) If the Postal Service determines that any document or
other matter it provides to the Postal Regulatory Commission pursuant
to a subpoena issued under subsection (f), or otherwise at the request
of the Commission in connection with any proceeding or other purpose
under this chapter or chapter 37, contains information which is
described in section 410(c) of this title, or exempt from public
disclosure under section 552(b) of title 5, the Postal Service shall,
at the time of providing such matter to the Commission, notify the
Commission, in writing, of its determination (and the reasons
therefor).
``(2) No officer or employee of the Commission may, with respect to
any information as to which the Commission has been notified under
paragraph (1)--
``(A) use such information for purposes other than the
purposes for which it is supplied; or
``(B) permit anyone who is not an officer or employee of
the Commission to have access to any such information.
``(3) Paragraph (2) shall not prevent information from being
furnished under any process of discovery established under this title
in connection with a proceeding under this chapter or chapter 37 which
is conducted in accordance with sections 556 and 557 of title 5. The
Commission shall, by regulations based on rule 26(c) of the Federal
Rules of Civil Procedure, establish procedures for ensuring appropriate
confidentiality for any information furnished under the preceding
sentence.''.
SEC. 212. QUALIFICATION REQUIREMENTS FOR COMMISSIONERS AND DIRECTORS.
(a) Commissioners.--Section 3601(a) of title 39, United States
Code, is amended by striking the third sentence and inserting the
following: ``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.''.
(b) Directors.--
(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 Directors shall represent the public interest
generally, and shall be chosen solely on the basis of their
demonstrated ability in managing organizations or corporations,
in either the public or the private sector, similar in size or
scope to the Postal Service. The Directors shall not be
representatives of specific interests using the Postal Service,
and may be removed only for cause.''.
(2) Consultation requirement.--Subsection (a) of section
202 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 Director, 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.''.
(3) Restriction.--Subsection (b) of section 202 of title
39, United States Code, is amended by striking ``(b)'' and
inserting ``(b)(1)'', and by adding at the end the following:
``(2)(A) Notwithstanding any other provision of this section, in
the case of the office of the Director the term of which is the first
one scheduled to expire at least 4 months after the date of enactment
of this paragraph--
``(i) such office may not, in the case of any person
commencing service after that expiration date, be filled by any
person other than an individual chosen from among persons
nominated for such office with the unanimous concurrence of all
labor organizations described in section 206(a)(1); and
``(ii) instead of the term that would otherwise apply under
the first sentence of paragraph (1), the term of any person so
appointed to such office shall be 3 years.
``(B) Except as provided in subparagraph (A), an appointment under
this paragraph shall be made in conformance with all provisions of this
section that would otherwise apply.''.
(c) Applicability.--Nothing in this section shall affect the tenure
of any individual serving as a Commissioner on the Postal Regulatory
Commission or a Director of the Board of Directors of the United States
Postal Service pursuant to an appointment made before the date of
enactment of this Act, or, except as provided in the amendment made by
subsection (b)(3), any nomination made before such date of enactment.
SEC. 213. APPROPRIATIONS FOR THE COMMISSION.
(a) Authorization of Appropriations.--Subsection (d) of section
3604 of title 39, United States Code, is amended to read as follows:
``(d) There are authorized to be appropriated, out of the Postal
Service Fund, such sums as may be necessary for the Postal Regulatory
Commission. In requesting an appropriation under this subsection for a
fiscal year, the Commission shall prepare and submit to the Congress
under section 2009 a budget of the Commission's expenses, including
expenses for facilities, supplies, compensation, and employee
benefits.''.
(b) Budget Program.--
(1) In general.--The next to last sentence of section 2009
of title 39, United States Code, is amended to read as follows:
``The budget program shall also include separate statements of
the amounts which (1) the Postal Service requests to be
appropriated under subsections (b) and (c) of section 2401, (2)
the Office of Inspector General of the United States Postal
Service requests to be appropriated, out of the Postal Service
Fund, under section 8G(f) of the Inspector General Act of 1978,
and (3) the Postal Regulatory Commission requests to be
appropriated, out of the Postal Service Fund, under section
3604(d) of this title.''.
(2) Conforming amendment.--Section 2003(e)(1) of title 39,
United States Code, is amended by striking the matter before
the second sentence and inserting the following:
``(e)(1) The Fund shall be available for the payment of all
expenses incurred by the Postal Service in carrying out its functions
as provided by law and--
``(A) subject to the availability of amounts appropriated
pursuant to section 3604(d), all of the expenses of the Postal
Regulatory Commission; and
``(B) subject to the availability of amounts appropriated
pursuant to section 8G(f) of the Inspector General Act of 1978,
all of the expenses of the Office of Inspector General.''.
(c) Effective Date.--
(1) In general.--The amendments made by this section shall
apply with respect to fiscal years beginning on or after
October 1, 1999.
(2) Savings provision.--The provisions of title 39, United
States Code, that are amended by this section shall, for
purposes of any fiscal year before the first fiscal year to
which the amendments made by this section apply, continue to
apply in the same way as if this section had never been
enacted.
SEC. 214. CHANGE-OF-ADDRESS ORDER INVOLVING A COMMERCIAL MAIL RECEIVING
AGENCY.
(a) In General.--Subchapter V of chapter 36 of title 39, United
States Code, is amended by adding at the end the following:
``Sec. 3686. Change-of-address order involving a commercial mail
receiving agency
``(a) For the purpose of this section, the term `commercial mail
receiving agency' or `CMRA' means a private business that acts as the
mail receiving agent for specific clients.
``(b) Upon termination of an agency relationship between an
addressee and a commercial mail receiving agency--
``(1) the addressee or, if authorized to do so, the CMRA
may file a change-of-address order with the Postal Service with
respect to such addressee;
``(2) a change-of-address order so filed shall, to the
extent practicable, be given full force and effect; and
``(3) any mail for the addressee that is delivered to the
CMRA after the filing of an appropriate order under this
subsection shall be subject to subsection (c).
``(c) Mail described in subsection (b)(3) shall, if marked for
forwarding and remailed by the CMRA, be forwarded by the Postal Service
in the same manner as, and subject to the same terms and conditions
(including limitations on the period of time for which a change-of-
address order shall be given effect) as apply to, mail forwarded
directly by the Postal Service to the addressee.''.
(b) Clerical Amendment.--The table of sections at the beginning of
chapter 36 of title 39, United States Code, is amended by adding after
the item relating to section 3685 the following:
``3686. Change-of-address order involving a commercial mail receiving
agency.''.
SEC. 215. RATES FOR MAIL UNDER FORMER SECTION 4358.
Section 3626 of title 39, United States Code, is amended 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).''.
TITLE III--GENERAL AUTHORITY
SEC. 301. RULEMAKING AUTHORITY.
Paragraph (2) of section 401 of title 39, United States Code, is
amended to read as follows:
``(2) to adopt, amend, and repeal such rules and
regulations, not inconsistent with this title, as may be
necessary in the execution of its functions under this
title;''.
SEC. 302. GENERAL DUTIES.
Section 403(c) of title 39, United States Code, is amended--
(1) by inserting ``domestic or international'' after
``users of the''; and
(2) by striking ``user.'' and inserting ``user, except that
this subsection shall not apply to competitive products (as
defined in chapter 37).''.
SEC. 303. EMPLOYMENT OF POSTAL POLICE OFFICERS.
Section 404 of title 39, United States Code, is amended by adding
at the end the following:
``(c)(1) The Postal Service may employ guards for all buildings and
areas owned or occupied by the Postal Service or under the charge and
control of the Postal Service, and such guards shall have, with respect
to such property, the powers of special policemen provided by the first
section of the Act cited in paragraph (2), and, as to such property,
the Postmaster General (or his designee) may take any action that the
Administrator of General Services (or his designee) may take under
section 2 or 3 of such Act, attaching thereto penalties under the
authority and within the limits provided in section 4 of such Act.
``(2) The Act cited in this paragraph is the Act of June 1, 1948
(62 Stat. 281), commonly known as the Protection of Public Property
Act.''.
SEC. 304. DATE OF POSTMARK TO BE TREATED AS DATE OF APPEAL IN
CONNECTION WITH THE CLOSING OR CONSOLIDATION OF POST
OFFICES.
(a) In General.--Section 404(b) of title 39, United States Code, is
amended by adding at the end the following:
``(6) For purposes of paragraph (5), any appeal received by the
Commission shall--
``(A) if sent to the Commission through the mails, be
considered to have been received on the date of the Postal
Service postmark on the envelope or other cover in which such
appeal is mailed; or
``(B) if otherwise lawfully delivered to the Commission, be
considered to have been received on the date determined based
on any appropriate documentation or other indicia (as
determined under regulations of the Commission).''.
(b) Effective Date.--This section and the amendments made by this
section shall apply with respect to any determination to close or
consolidate a post office which is first made available, in accordance
with paragraph (3) of section 404(b) of title 39, United States Code,
after the end of the 3-month period beginning on the date of enactment
of this Act.
SEC. 305. UNFAIR COMPETITION PROHIBITED.
(a) Specific Limitations.--Chapter 4 of title 39, United States
Code, is amended by adding after section 404 the following:
``Sec. 404a. Specific limitations
``(a) In providing products and services and in establishing
classifications, rates, and fees under this title, the Postal Service,
any corporation established under section 2012, and any other entity
funded, in whole or in part, by the Postal Service, shall not, directly
or indirectly, except as specifically authorized by law--
``(1) provide any postal or nonpostal product or service,
with respect to which the Postal Service or any such
corporation or entity (as the case may be), precludes
competition or otherwise establishes the terms of competition
through regulation (including standard-setting), licensing, or
policy-setting;
``(2)(A) establish any regulation (including any standard)
the effect of which is (or would be) to create a monopoly or
any competitive advantage for itself, any such corporation or
entity, or any other person; or
``(B) enter into any agreement, establish any policy, or
take any other action (not covered by subparagraph (A)), the
effect of which is (or would be) to create a monopoly or any
other unlawful competitive advantage for itself, any such
corporation or entity, or any other person;
``(3) regulate competition or engage in any regulatory or
enforcement activity with respect to actions or practices that
are subject to the antitrust laws;
``(4) obtain information from a person that provides, or
seeks to provide, a postal or nonpostal product or service, and
subsequently disclose that information, or offer any product or
service that uses or is based in whole or in part on that
information, without the consent of the person providing that
information, unless substantially the same information is
obtained from an independent source or is otherwise obtained by
the Postal Service, corporation, or other entity (as the case
may be) in a manner not inconsistent with this paragraph; or
``(5) compel the disclosure, transfer, or licensing of
intellectual property (such as patents, copyrights, trademarks,
trade secrets, and proprietary information).
``(b)(1) For purposes of this section, the term `antitrust laws'
has the meaning given such term in subsection (a) of the first section
of the Clayton Act (15 U.S.C. 12(a)), but includes section 5 of the
Federal Trade Commission Act (15 U.S.C. 45) to the extent that such
section 5 applies to unfair methods of competition.
``(2) Nothing in this section shall be construed as limiting the
scope or effect of intellectual property rights recognized under the
laws of the United States.
``(c) The Postal Regulatory Commission shall prescribe regulations
to carry out the purposes of this section.''.
(b) Clerical Amendment.--The table of sections at the beginning of
chapter 4 of title 39, United States Code, is amended by adding at the
end the following:
``404a. Specific limitations.''.
SEC. 306. INTERNATIONAL POSTAL ARRANGEMENTS.
(a) International Postal Arrangements.--
(1) 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, except that the Secretary may not negotiate or 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 (as that
term is defined in chapter 37), 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--
``(A) 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 responsibility, the
Secretary 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) maintain continuing liaison with other executive
branch agencies concerned with postal and delivery services;
``(C) maintain continuing liaison with the Committee on
Government Reform and Oversight of the House of Representatives
and the Committee on Governmental Affairs of the Senate;
``(D) maintain appropriate liaison with representatives of
the Postal Service to keep informed of its interests and
problems, and to provide such assistance as may be needed to
ensure that matters of concern to the Postal Service are
promptly considered by the Department of State or (if
applicable, and to the extent practicable) other executive
branch agencies;
``(E) maintain appropriate liaison with 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
``(F) 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.
``(c) 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) must 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.
``(d)(1) With respect to shipments of international mail within the
meaning of section 3741 that are exported or imported by the Postal
Service--
``(A) the Postal Service shall not tender exported
shipments to governmental authorities of any other country for
clearance and importation except in accordance with procedures
and laws which are equally applicable to similar shipments
transmitted by private companies; and
``(B)(i) subject to clause (ii), 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; and
``(ii) the Customs Service and other Federal agencies shall
deny shipments imported by the Postal Service from a foreign
country access to special customs procedures established in
accordance with international postal or customs agreements for
shipments by postal authorities of other countries unless that
foreign country makes available such special customs procedures
both to shipments to such country from the United States by the
Postal Service and similar shipments to such country from the
United States by private companies.
``(2)(A) The provisions of paragraph (1)(B)(i) shall take effect
beginning on the date of enactment of this subsection.
``(B) The provisions of subparagraphs (A) and (B)(ii) of paragraph
(1) shall take effect beginning 5 years after the date of enactment of
this subsection.
``(C) The Secretary of State shall, to the maximum extent
practicable, take such measures as are within the control of the
Secretary--
``(i) to complete the renegotiation of any treaties,
conventions, or other international agreements (including those
regulating international postal services), and
``(ii) to encourage the governments of other countries to
make any changes in their laws (consistent with the policies
carried out by the provisions referred to in subparagraph (B)),
which may be necessary in order to facilitate the timely implementation
of the provisions that are subject to subparagraph (B). The Secretary
of State shall consult with the United States Trade Representative and
the Commissioner of Customs in carrying out this subparagraph.
``(3) For purposes of this subsection, the term `private company'
means a private company substantially owned or controlled by persons
who are citizens of the United States.''.
(2) Effective date.--Notwithstanding paragraph (1), 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 the date as of which the
baseline rates are determined under section 3721(e)(2) of title
39, United States Code (as amended by section 201).
(b) Trade-in-Services program.--The second sentence of paragraph
(5) of section 306(a) of the Trade and Tariff Act of 1984 (19 U.S.C.
2114b(5)) is amended by inserting ``postal and delivery services,''
after ``transportation,''.
SEC. 307. SUITS BY AND AGAINST THE POSTAL SERVICE.
(a) In General.--Section 409 of title 39, United States Code, is
amended by striking subsections (c) through (e) and inserting the
following:
``(c) For purposes of the Act of July 5, 1946 (commonly referred to
as the `Trademark Act of 1946' (15 U.S.C. 1051 and following)), the
Postal Service shall be considered to be a `person', as used in that
Act, and shall not be immune under any other doctrine of sovereign
immunity from suit in Federal court by any person for any violation of
that Act by any officer or employee of the Postal Service.
``(d)(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 service which is not reserved to
the United States under section 1696 of title 18, the Postal Service or
other Federal agency--
``(A) shall not be immune under any doctrine of sovereign
immunity from suit in Federal court by any person for any
violation of law by such agency or any officer or employee
thereof;
``(B) shall not be considered a `Federal agency' for
purposes of section 1346(b) and chapter 171 of title 28, and
shall be liable for actions in tort in the same manner as a
private company; and
``(C) shall be considered to be a person (as defined in
subsection (a) of the first section of the Clayton Act (15
U.S.C. 12(a)) for purposes of--
``(i) the antitrust laws (as defined in subsection
(a) of the first section of the Clayton Act (15 U.S.C.
12(a)); and
``(ii) section 5 of the Federal Trade Commission
Act (15 U.S.C. 45) 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) This subsection shall not apply with respect to conduct
occurring before the date of enactment of this subsection.
``(e)(1) Motor vehicles owned or leased by the Postal Service that
are primarily and regularly used for the transport or delivery of
products in the competitive category of mail shall be subject to
Federal and State laws and regulations associated with the parking and
operation of such motor vehicles, to the same extent and in the same
manner as if they were owned or leased by a private company.
``(2) Any motor vehicle owned or leased by the Postal Service that
is primarily and regularly used for the transport or delivery of
products in the competitive category of mail shall be clearly
identified as such by appropriate symbol or other marking.
``(3) This subsection shall become effective on the first day of
the first ratemaking cycle.
``(4) For purposes of this subsection--
``(A) the terms `product in the competitive category of
mail' and `ratemaking cycle' have the meanings given them by
chapter 37; and
``(B) the term `State' includes the District of Columbia,
the Commonwealth of Puerto Rico, and a territory or possession
of the United States.
``(f)(1) The Postal Service shall comply with--
``(A) any zoning, planning, and land use regulations
applicable to State or local public entities; and
``(B) any building codes applicable to State or local
public entities.
``(2) For purposes of this subsection, the term `State' has the
meaning given such term by subsection (e).
``(g)(1) The Postal Service shall employ attorneys by contract or
otherwise to conduct litigation on its behalf in any litigation
arising, in whole or in part, under any of the following:
``(A) Subsection (c), (d), or (e) of section 409 (relating
to application of certain laws to the Postal Service).
``(B) Subsection (f) or (g) of section 3604 (relating to
administrative subpoenas by the Postal Regulatory Commission).
``(C) Subsection (a) or (b) of section 3628 (relating to
appeals from decisions of the Commission and the Directors).
``(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.
``(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(f).''.
(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,''.
TITLE IV--MISCELLANEOUS PROVISIONS RELATING TO THE BUDGET AND
APPROPRIATIONS PROCESS
SEC. 401. PROVISIONS RELATING TO BENEFITS UNDER CHAPTER 81 OF TITLE 5,
UNITED STATES CODE, FOR OFFICERS AND EMPLOYEES OF THE
FORMER POST OFFICE DEPARTMENT.
(a) In General.--Section 8 of the Postal Reorganization Act (39
U.S.C. 1001 note) is amended by inserting ``(a)'' after ``8.'' and by
adding at the end the following:
``(b) For purposes of chapter 81 of title 5, United States Code,
the Postal Service shall, with respect to any individual receiving
benefits under such chapter as an officer or employee of the former
Post Office Department, have the same authorities and responsibilities
as it has with respect to an officer or employee of the Postal Service
receiving such benefits.''.
(b) Effective Date.--This section and the amendments made by this
section shall take effect on October 1, 1998.
SEC. 402. TECHNICAL AND CONFORMING AMENDMENTS.
(a) Appropriations.--Subsection (e) of section 2401 of title 39,
United States Code, is amended--
(1) by striking ``Committee on Post Office and Civil
Service'' each place it appears and inserting ``Committee on
Government Reform and Oversight'';
(2) by striking ``and the Committees on Appropriations of
the Senate and the House of Representatives''; and
(3) by striking ``Not later than March 15 of each year,''
and inserting ``Each year,''.
(b) Technical Correction.--Sections 2803(a) and 2804(a) of title
39, United States Code, are amended by striking ``2401(g)'' and
inserting ``2401(e)''.
TITLE V--PROVISIONS RELATING TO TRANSPORTATION, CARRIAGE, OR DELIVERY
OF MAIL
SEC. 501. OBSOLETE PROVISIONS.
(a) Repeal.--Chapter 52 of title 39, United States Code, is
repealed.
(b) Conforming Amendments.--Section 5005(a) of title 39, United
States Code, is amended--
(1) by repealing paragraph (1); and
(2) in paragraph (4) by striking ``(as defined in section
5201(6) of this title)''.
(c) Eliminating Restriction on Length of Contracts.--(1) Section
5005(b)(1) of title 39, United States Code, is amended by striking
``(or where the Postal Service determines that special conditions or
the use of special equipment warrants, not in excess of 6 years)'' and
inserting ``(or such length of time as may be determined by the Postal
Service to be advisable or appropriate)''.
(2) Section 5402(c) of such title 39 is amended by striking ``for a
period of not more than 4 years''.
(3) Section 5605 of such title 39 is amended by striking ``for
periods of not in excess of 4 years''.
(d) Clerical Amendment.--The table of chapters for part V of title
39, United States Code, is amended by repealing the item relating to
chapter 52.
SEC. 502. EXPANDED CONTRACTING AUTHORITY.
Subsection (d) of section 5402 of title 39, United States Code, is
amended to read as follows:
``(d) Notwithstanding the provisions of subsections (a) through
(c), the Postal Service may contract for the transportation of mail by
aircraft, except as provided in subsections (f) and (g).''.
SEC. 503. PRIVATE CARRIAGE OF LETTERS.
(a) Repeal of Suspension Authority.--Subsection (b) of section 601
of title 39, United States Code, is repealed.
(b) Private Carriage.--Section 601 of title 39, United States Code,
is amended by striking subsection (a) and inserting the following:
``(a) A letter may 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;
``(3) such carriage is within the scope of services
described by regulations of the United States Postal Service
(as in effect on July 1, 1998) that purport to permit private
carriage by suspension of the operation of this subsection (as
then in effect); or
``(4) the requirements of subsection (b) are met.
``(b) A letter shall be considered to satisfy the requirements of
this subsection if--
``(1) it is enclosed in an envelope;
``(2) the amount of postage which would have been charged
on the letter if it had been sent by mail is paid by stamps, or
postage meter stamps, on the envelope;
``(3) the envelope is properly addressed;
``(4) the envelope is so sealed that the letter cannot be
taken from it without defacing the envelope;
``(5) any stamps on the envelope are canceled in ink by the
sender; and
``(6) the date of the letter, of its transmission or
receipt by the carrier is endorsed on the envelope in ink.''.
(c) Effective Date.--This section shall take effect as of the first
day of the first year beginning on or after the date as of which the
baseline rates are determined under section 3721(e)(2).
SEC. 504. REPEAL OF SECTION 5403.
(a) In General.--Section 5403 of title 39, United States Code, is
repealed.
(b) Clerical Amendment.--The table of sections for chapter 54 of
title 39, United States Code, is amended by repealing the item relating
to section 5403.
TITLE VI--STUDIES
SEC. 601. EMPLOYEE-MANAGEMENT RELATIONS.
(a) Independent Study Required.--The Board of Directors shall, by
contract, provide for the National Academy of Public Administration to
conduct an independent study as to how employee-management relations
within the United States Postal Service may be improved.
(b) Specific Requirements.--Under the contract, the Academy shall
be required--
(1) to involve the labor, supervisory, and managerial
organizations of the Postal Service in developing the design
and specific objectives of the study;
(2) to consult periodically with representatives of the
Postal Service, and of those labor, supervisory, and managerial
organizations, on the progress of the study; and
(3) to provide opportunity for those labor, supervisory,
and managerial organizations to review and submit written
comments on the final report.
(c) Final Report.--
(1) In general.--The Academy shall, not later than 12
months after the date on which the contract for the study under
this section is entered into, submit its final report to the
President, the Congress, the Postal Service, and the labor,
supervisory, and managerial organizations of the Postal
Service.
(2) Contents.--The report shall contain the findings,
conclusions, and recommendations of the Academy on all matters
required to be addressed by the study, and shall also include
all written comments submitted to the Academy under subsection
(b)(3).
(d) Cooperation.--The Board of Directors shall take appropriate
measures to ensure that all components of the Postal Service cooperate
fully with the Academy in the conduct of its study under this section.
(e) Definition.--For purposes of this section, the term ``Board of
Directors'' has the meaning given such term by section 102 of title 39,
United States Code (as amended by section 101 of this Act).
SEC. 602. RECOMMENDATIONS ON UNIVERSAL POSTAL SERVICES.
(a) In General.--Chapter 28 of title 39, United States Code, is
amended by adding at the end the following:
``Sec. 2806. Universal postal services
``(a)(1) Within 1 month after the date of enactment of this
section, the Postal Service shall begin conducting a study the purpose
of which shall be to develop recommendations as to the appropriate
scope and standards for universal postal services to be assured by the
Government of the United States consistent with its obligations under
sections 101 and 403.
``(2) The Postal Service shall, within 18 months thereafter,
complete its study and submit a written report to the President, the
Congress, and the Postal Regulatory Commission setting forth its
recommendations under this section and the reasons therefor.
``(3) The Postal Service shall solicit and include as part of its
report the written views and suggestions of any persons who may be
affected by or interested in any matter as to which the study pertains.
``(4) The conduct of the study and the drafting of the report
required under this section shall, consistent with section 2805
(relating to inherently Governmental functions), be performed only by
employees of the Postal Service.
``(b)(1) The recommendations submitted by the Postal Service under
this section shall include recommendations concerning a universal
service definition for each class of delivery services the continuous
provision of which must, in the view of the Postal Service, be assured
in order to fulfill the obligations set out in sections 101 and 403.
``(2) In developing its recommendations under this subsection with
respect to any given class of delivery services, the Postal Service
shall take into consideration the development of new technologies and
the evolution of alternative means of meeting the public interest
objectives set out in this title.
``(c) Each universal service definition recommended by the Postal
Service under this section shall include the specification of minimum
standards of service to be attained, consistent with the following:
``(1) Standards of reliability, speed, frequency, and
quality of service shall be established so as to meet the needs
of users and consumers of universal services generally.
``(2) Universal services should be available at just,
reasonable, and affordable rates sufficient to enable universal
services to be provided under best practices of honest,
efficient, and economical management.
``(3) Persons in all regions of the Nation, including low-
income persons and those located in rural, insular, and high-
cost areas, should have access to universal postal services
that are reasonably comparable to those provided in urban areas
and that are available at appropriate rates. As provided in
section 101(b), no small post office of the Postal Service
shall be closed solely by reason of operating at a deficit.
``(4) In providing universal services, the Postal Service
shall not, except as specifically authorized in this title,
make any undue or unreasonable discrimination among users,
including other providers of postal services.
``(5) Universal services shall be maintained without
interruption and without abrupt and substantial changes in
rates or quality of service.
``(6) Standards for universal service should avoid
distortions in the competition between postal operators and
between commercial purchasers of postal services to the extent
consistent with fulfilling the obligations set out in sections
101 and 403.
``(7) Universal service definitions for the State of Alaska
shall take into account the special conditions and needs of
that State.
``(8) Universal services shall be provided consistent with
such other principles as the Postal Service determines are
necessary and appropriate for the protection of the public
interest, convenience, and necessity, and the requirements of
this title.
``(d) In addition to the principles set out in subsection (c), the
Postal Service shall take into account special requirements for certain
classes of postal services under this title, including requirements for
uniform, reduced, or free rates.''.
(b) Clerical Amendment.--The table of sections for chapter 28 of
title 39, United States Code, is amended by adding at the end the
following:
``2806. Universal postal services.''.
SEC. 603. STUDY ON EQUAL APPLICATION OF LAWS TO COMPETITIVE PRODUCTS.
(a) In General.--The Department of Justice shall prepare and submit
to the President and Congress, within 1 year after the date of
enactment of this Act, a comprehensive report identifying Federal and
State laws that apply differently to products of the United States
Postal Service in the competitive category of mail (as that term is
defined in chapter 37 of title 39, United States Code, as amended by
this Act) and similar products provided by private companies.
(b) Recommendations.--The Department of Justice shall include such
recommendations as it considers appropriate for bringing such legal
discrimination to an end.
(c) Consultation.--In preparing its report, the Department of
Justice shall consult with the United States Postal Service, the Postal
Regulatory Commission, other Federal agencies, mailers, private
companies that provide delivery services, and the general public, and
shall append to such report any written comments received under this
subsection.
SEC. 604. GREATER DIVERSITY IN POSTAL SERVICE EXECUTIVE AND
ADMINISTRATIVE SCHEDULE MANAGEMENT POSITIONS.
(a) Study.--The Board of Directors shall study and, within 1 year
after the date of enactment of this Act, submit to the President and
Congress a report concerning the extent to which women and minorities
are represented in supervisory and management positions within the
United States Postal Service. Any data included in the report shall be
presented in the aggregate and by pay level.
(b) Performance Evaluations.--The United States Postal Service
shall, as soon as practicable, take such measures as may be necessary
to ensure that, for purposes of conducting performance appraisals of
supervisory or managerial employees, appropriate consideration shall be
given to meeting affirmative action goals, achieving equal employment
opportunity requirements, and implementation of plans designed to
achieve greater diversity in the workforce.
(c) Definition.--For purposes of this section, the term ``Board of
Directors'' has the meaning given such term by section 102 of title 39,
United States Code (as amended by section 101 of this Act).
SEC. 605. PLAN FOR ASSISTING DISPLACED WORKERS.
(a) Plan.--The United States Postal Service shall, before the
deadline specified in subsection (b), develop and be prepared to
implement, whenever necessary, a comprehensive plan under which
reemployment assistance shall be afforded to employees displaced as a
result of the automation or privatization of any of its functions.
(b) Report.--Not later than 1 year after the date of enactment of
this Act, the United States Postal Service shall submit to its Board of
Directors (within the meaning of section 102 of title 39, United States
Code, as amended by section 101 of this Act) and Congress a written
report describing its plan under this section.
SEC. 606. CONTRACTS WITH WOMEN, MINORITIES, AND SMALL BUSINESSES.
The Board of Directors of the United States Postal Service shall
study and, within 1 year after the date of 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.
TITLE VII--INSPECTORS GENERAL
SEC. 701. INSPECTOR GENERAL OF THE POSTAL REGULATORY COMMISSION.
(a) In General.--Paragraph (2) of section 8G(a) of the Inspector
General Act of 1978 is amended by inserting ``the Postal Regulatory
Commission,'' after ``the United States International Trade
Commission,''.
(b) Administration.--Section 3604 of title 39, United States Code,
is amended by adding after subsection (g) (as added by section 211) 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 enactment
of this Act--
(1) the first Inspector General of the Postal Regulatory
Commission shall be appointed; and
(2) the Office of Inspector General of the Postal
Regulatory Commission shall be established.
SEC. 702. INSPECTOR GENERAL OF THE UNITED STATES POSTAL SERVICE TO BE
APPOINTED BY THE PRESIDENT.
(a) Definitional Amendments to the Inspector General Act of 1978.--
Section 11 of the Inspector General Act of 1978 is amended--
(1) in paragraph (1)--
(A) by striking ``and'' before ``the chief
executive officer of the Resolution Trust
Corporation'';
(B) by striking ``and'' before ``the Chairperson of
the Federal Deposit Insurance Corporation'';
(C) by striking ``or'' before ``the Commissioner of
Social Security, Social Security Administration''; and
(D) by inserting ``or the Postmaster General and
Chief Executive Officer of the United States Postal
Service;'' after ``Social Security Administration;'';
and
(2) in paragraph (2)--
(A) by striking ``or'' before ``the Veterans'
Administration'';
(B) by striking ``or'' before ``the Social Security
Administration''; and
(C) by inserting ``or the United States Postal
Service;'' after ``Social Security Administration;''.
(b) Special Provisions Concerning the United States Postal
Service.--
(1) In general.--The Inspector General Act of 1978 is
amended--
(A) by redesignating sections 8G (as amended by
section 701(a)) and 8H as sections 8H and 8I,
respectively; and
(B) by inserting after section 8F the following:
``special provisions concerning the united states postal service
``Sec. 8G. (a) Notwithstanding the last two sentences of section
3(a), the Inspector General of the United States Postal Service shall
report to and be under the general supervision of the Postmaster
General, but shall not report to, or be subject to supervision by, any
other officer or employee of the United States Postal Service or its
Board of Directors. No such officer or employee (including the
Postmaster General) or member of such Board shall prevent or prohibit
the Inspector General from initiating, carrying out, or completing any
audit or investigation, or from issuing any subpoena during the course
of any audit or investigation.
``(b) In carrying out the duties and responsibilities specified in
this Act, the Inspector General of the United States Postal Service
shall have oversight responsibility for all activities of the Postal
Inspection Service, including any internal investigation performed by
the Postal Inspection Service. The Chief Postal Inspector shall
promptly report the significant activities being carried out by the
Postal Inspection Service to such Inspector General.
``(c) Any report required to be transmitted by the Postmaster
General to the appropriate committees or subcommittees of the Congress
under section 5(d) shall also be transmitted, within the 7-day period
specified under such section, to the Committee on Government Reform and
Oversight of the House of Representatives and the Committee on
Governmental Affairs of the Senate.
``(d) Notwithstanding any provision of paragraph (7) or (8) of
section 6(a), the Inspector General of the United States Postal Service
may select, appoint, and employ such officers and employees as may be
necessary for carrying out the functions, powers and duties of the
Office of Inspector General and to obtain the temporary or intermittent
services of experts or consultants or an organization of experts or
consultants, subject to the applicable laws and regulations that govern
such selections, appointments, and employment, and the obtaining of
such services, within the United States Postal Service.
``(e) Nothing in this Act shall restrict, eliminate, or otherwise
adversely affect any of the rights, privileges, or benefits of
employees of the United States Postal Service, or labor organizations
representing employees of the United States Postal Service, under
chapter 12 of title 39, United States Code, the National Labor
Relations Act, any handbook or manual affecting employee labor
relations with the United States Postal Service, or any collective
bargaining agreement.
``(f) There are authorized to be appropriated, out of the Postal
Service Fund, such sums as may be necessary for the Office of Inspector
General of the United States Postal Service.
``(g) As used in this section, `Postmaster General', `Board of
Directors', and `Board' each has the meaning given it by section 102 of
title 39, United States Code.''.
(2) Related provisions.--
For certain related provisions, see
section 213(b).
(c) Audits of the Postal Service.--
(1) Audits.--Subsection (e) of section 2008 of title 39,
United States Code, is amended to read as follows:
``(e)(1) At least once each year beginning with the fiscal year
commencing after the date of enactment of the Postal Modernization Act
of 1999, the financial statements of the Postal Service (including
those used in determining and establishing postal rates) shall be
audited by the Inspector General or by an independent external auditor
selected by the Inspector General.
``(2) Audits under this section shall be conducted in accordance
with applicable generally accepted government auditing standards.
``(3) Upon completion of the audit required by this subsection, the
person who audits the statement shall submit a report on the audit to
the Postmaster General.''.
(2) Results of inspector general's audit to be included in
annual report.--Section 2402 of title 39, United States Code,
is amended by inserting after the first sentence the following:
``Each report under this section shall include, for the most
recent fiscal year for which a report under section 2008(e) is
available (unless previously transmitted under the following
sentence), a copy of such report.''.
(3) Coordination provisions.--Subsection (d) of section
2008 of title 39, United States Code, is amended--
(A) by striking ``(d) Nothing'' and inserting
``(d)(1) Except as provided in paragraph (2),
nothing''; and
(B) by adding at the end the following:
``(2) An audit or report under paragraph (1) may not be obtained
without the prior written approval of the Inspector General.''.
(4) Savings provision.--For purposes of any fiscal year
preceding the first fiscal year commencing after the date of
enactment of this Act, the provisions of title 39, United
States Code, shall be applied as if the amendments made by this
subsection had never been enacted.
(d) Reports.--
(1) In general.--Section 3013 of title 39, United States
Code, is amended--
(A) in the first sentence by striking ``Postmaster
General'' and inserting ``Chief Postal Inspector'';
(B) by striking ``Board'' each place it appears and
inserting ``Inspector General'';
(C) in the third sentence by striking ``Each such
report shall be submitted within sixty days after the
close of the reporting period involved'' and inserting
``Each such report shall be submitted within 1 month
(or such shorter length of time as the Inspector
General may specify) after the close of the reporting
period involved''; and
(D) by striking the last sentence and inserting the
following:
``The information in a report submitted under this section to the
Inspector General with respect to a reporting period shall be included
as part of the semiannual report prepared by the Inspector General
under section 5 of the Inspector General Act of 1978 for the same
reporting period. Nothing in this section shall be considered to permit
or require that any report by the Chief Postal Inspector under this
section include any information relating to activities of the Inspector
General.''.
(2) Effective date.--This subsection shall take effect on
the first day of the first semiannual reporting period
beginning on or after the date of enactment of this Act and
shall apply with respect to semiannual reporting periods
beginning on or after the effective date of this subsection.
(3) Savings provision.--For purposes of any semiannual
reporting period preceding the first semiannual reporting
period referred to in paragraph (2), the provisions of title
39, United States Code, shall continue to apply as if the
amendments made by this subsection had not been enacted.
(e) Technical and Conforming Amendments.--
(1) Relating to the inspector general act of 1978.--(A)
Subsection (a) of section 8H of the Inspector General Act of
1978 (as amended by section 701 and redesignated by subsection
(b) of this section) is further amended--
(i) in paragraph (2) by striking ``the Postal
Regulatory Commission, and the United States Postal
Service;'' and inserting ``and the Postal Regulatory
Commission;'' and
(ii) in paragraph (4) by striking ``except that''
and all that follows through ``Code);'' and inserting
``except that, with respect to the National Science
Foundation, such term means the National Science
Board;''.
(B)(i) Subsection (f) of section 8H of such Act (as so
redesignated) is repealed.
(ii) Subsection (c) of section 8H of such Act (as
so redesignated) is amended by striking ``Except as
provided under subsection (f) of this section, the''
and inserting ``The''.
(2) Relating to title 39, united states code.--(A)
Subsection (e) of section 202 of title 39, United States Code,
is repealed.
(B) Paragraph (4) of section 102 of such title 39, as
amended by sections 102(a) and 205(a) of this Act, is amended
to read as follows:
``(4) `Inspector General' means the Inspector General of
the United States Postal Service, appointed under section 3(a)
of the Inspector General Act of 1978;''.
(C) The first sentence of section 1003(a) of such title 39
is amended by striking ``chapters 2 and 12 of this title,
section 8G of the Inspector General Act of 1978, or other
provision of law,'' and inserting ``chapter 2 or 12 of this
title, subsection (b) or (c) of section 1003 of this title, or
any other provision of law,''.
(D) Subsection (b) of section 1003 of such title 39 is
amended by striking ``respective'' and inserting ``other''.
(E) Subsection (c) of section 1003 of such title 39 is
amended by striking ``included'' and inserting ``includes''.
(f) Effective Date; Eligibility of Prior Inspector General.--
(1) Effective date.--
(A) In general.--Except as provided in subparagraph
(B) or in subsection (c) or (d), this section and the
amendments made by this section shall take effect on
the date of enactment of this Act.
(B) Special rules.--
(i) In general.--Except as provided in
clause (ii), if the position of Inspector
General of the United States Postal Service is
occupied on the date of enactment of this Act
(other than by an individual serving due to a
vacancy arising in that position before the
expiration of his or her predecessor's term),
then, until January 5, 2004, or, if earlier,
the date on which such individual ceases to
serve in that position, title 39, United States
Code, shall be applied as if the amendments
made by this section had not been enacted.
(ii) Authorization of appropriations.--
(I) In general.--Notwithstanding
any other provision of this paragraph,
subsection (f) of section 8G of the
Inspector General Act of 1978 (as
amended by this section) shall be
effective for purposes of fiscal years
beginning on or after October 1, 1999.
(II) Savings provision.--For
purposes of the fiscal year ending on
September 30, 1999, funding for the
Office of Inspector General of the
United States Postal Service shall be
made available in the same manner as if
this Act had never been enacted.
(2) Eligibility of prior inspector general.--Nothing in
this Act shall prevent any individual who has served as
Inspector General of the United States Postal Service at any
time before the date of enactment of this Act from being
appointed to that position pursuant to the amendments made by
this section.
TITLE VIII--LAW ENFORCEMENT
Subtitle A--Amendments to
Title 39, United States Code
SEC. 801. MAKE FEDERAL ASSAULT STATUTES APPLICABLE TO POSTAL CONTRACT
EMPLOYEES.
Section 1008 of title 39, United States Code, is amended--
(1) in subsection (a) by inserting ``or entrusted with mail
under contract with the Postal Service'' after ``mail''; and
(2) in subsection (b) by inserting ``an employee of the
Postal Service for the purposes of sections 111 and 1114 of
title 18, and'' after ``deemed''.
SEC. 802. SEXUALLY ORIENTED ADVERTISING.
(a) Civil Penalty.--Section 3011 of title 39, United States Code,
is amended--
(1) by redesignating subsections (b) through (e) as
subsections (c) through (f), respectively; and
(2) by inserting after subsection (a) the following:
``(b)(1) Upon a finding by the court that a sexually oriented
advertisement has been mailed in violation of section 3010(b), the
court may assess, on whoever made the mailing or caused it to be made,
a civil penalty of not less than $500 and not more than $1,500 for each
violation. Each piece of mail sent in violation of section 3010(b)
shall constitute a separate violation.
``(2) For purposes of this subsection--
``(A) receipt of a sexually oriented advertisement after
the recipient's name and address have been listed (as described
in section 3010(b)) for at least 60 days shall create a
rebuttable presumption that such advertisement was mailed more
than 30 days after that individual's name and address became so
listed; and
``(B) receipt in the mail of a sexually oriented
advertisement addressed to `Occupant' or `Resident' (or any
other term permitted by Postal Service standards on simplified
addressing) at the recipient's address, or which is
specifically addressed to the recipient, but with an
inconsequential error or variation in the recipient's name or
address, shall, for purposes of applying the mailing
prohibition of section 3010(b), create a rebuttable presumption
that such advertisement was mailed to such recipient.
``(3) Any penalty assessed under paragraph (1) shall be paid to the
Postal Service for deposit in the Postal Service Fund established by
section 2003.''.
(b) Repeal.--
(1) In general.--Section 3008 of title 39, United States
Code, and the item relating to such section in the table of
sections at the beginning of chapter 30 of such title, are
repealed.
(2) Conforming amendments.--(A) Subsection (f) of section
3011 of such title 39 (as so redesignated by subsection (a)) is
amended by striking ``section 3006, 3007, or 3008'' and
inserting ``section 3006 or 3007''.
(B) Section 1737 of title 18, United States Code, is
amended--
(i) in subsection (a) by striking ``3008 or''; and
(ii) in subsection (b) by striking ``3008(a) or''.
(c) Effective Date.--This section and the amendments made by this
section shall take effect 90 days after the date of the enactment of
this Act. The amendments made by this section shall be treated as if
they had never been enacted for purposes of any mailing made or caused
to be made before this section takes effect.
SEC. 803. ALLOW POSTAL SERVICE TO RETAIN ASSET FORFEITURE RECOVERIES.
Paragraph (7) of section 2003(b) of title 39, United States Code,
is amended to read as follows:
``(7) amounts (including proceeds from the sale of
forfeited items) from any civil forfeiture conducted by the
Postal Service and from any forfeiture resulting from an
investigation in which the Postal Service has primary
responsibility, except that nothing in this paragraph shall
preclude the Postal Service, on such terms as it may determine,
from sharing such amounts with any Federal, State, or local law
enforcement agency which participated in any of the acts which
led to the seizure or forfeiture of the property; and''.
SEC. 804. HAZARDOUS MATTER.
(a) Civil Penalty.--Chapter 30 of title 39, United States Code, is
amended by adding at the end the following:
``Sec. 3016. Civil penalty for prohibited mailing and deficient
packaging of hazardous matter
``(a) For the purposes of this section--
``(1) the term `parcel' includes any kind of package,
envelope, container, or other piece of mail;
``(2) the term `manner' includes the preparation and
packaging of a piece of mail;
``(3) a person shall be considered to have acted knowingly
if--
``(A) such person had actual knowledge of the facts
giving rise to the violation; or
``(B) a reasonable person acting in the same
circumstances and exercising due care would have had
such knowledge; and
``(4) the term `hazardous matter' has the meaning given
such term by section 1716 of title 18.
``(b) Any person--
``(1) who knowingly mails or causes to be mailed any
parcel, the contents of which constitute or include any
hazardous matter which has been declared by statute or Postal
Service regulation to be nonmailable under any circumstances;
``(2) who knowingly mails or causes to be mailed a parcel
in violation of any statute or Postal Service regulation
restricting the time, place, or manner in which hazardous
matter may be mailed; or
``(3) who knowingly manufactures, distributes, or sells any
container, packaging kit, or similar device that--
``(A) is represented, marked, certified, or sold by
such person for use in the mailing of any hazardous
matter; and
``(B) fails to conform with any statute or Postal
Service regulation setting forth standards for
containers, packaging kits, or similar devices used for
the mailing of hazardous matter;
shall be liable to the Postal Service for a civil penalty in an amount
not to exceed $25,000 per violation.
``(c) The Postal Service may enforce this section by commencing a
civil action in accordance with section 409(d). The action may be
brought in the district court of the United States for the district in
which the defendant resides or any district in which the defendant
conducts business or in which a violation of this section was
discovered.
``(d) In determining the amount of any civil penalty to be assessed
under this section, the district court--
``(1) shall treat as a separate violation--
``(A) each parcel mailed or caused to be mailed as
described in paragraph (1) or (2) of subsection (b);
and
``(B) each container, packaging kit, or similar
device manufactured, distributed, or sold as described
in subsection (b)(3); and
``(2) shall take into account--
``(A) the nature, circumstances, extent, and
gravity of each violation committed; and
``(B) with respect to the person found to have
committed such violation, the degree of culpability,
any history of prior offenses, ability to pay, effect
on ability to continue to do business, and such other
matters as justice may require.
``(e) All penalties collected under authority of this section shall
be paid into the Postal Service Fund established by section 2003.''.
(b) Clerical Amendment.--The table of sections at the beginning of
chapter 30 of title 39, United States Code, is amended by adding at the
end the following:
``3016. Civil penalty for prohibited mailing and deficient packaging of
hazardous matter.''.
Subtitle B--Other Provisions
SEC. 811. STALKING FEDERAL OFFICERS AND EMPLOYEES.
(a) In General.--Chapter 41 of title 18, United States Code, is
amended by adding at the end the following:
``Sec. 881. Stalking Federal and postal officers and employees
``(a) Whoever--
``(1) repeatedly engages in conduct (including maintaining
a visual or physical proximity or communicating a verbal or
written threat) directed at another person who is or was an
officer or employee--
``(A) in the executive, legislative, or judicial
branch of the Federal Government; or
``(B) in the United States Postal Service;
while such other person is engaged in official duties or on
account of such duties;
``(2) knows that such conduct is likely to place that other
person in reasonable fear of sexual battery, bodily injury, or
death; and
``(3) thereby induces such fear in that other person;
shall be punished as provided in subsection (b) of this section.
``(b)(1) The punishment for an offense under subsection (a) is--
``(A) in the case of a first conviction under such
subsection--
``(i) if, during the commission of the offense, the
offender uses a deadly or dangerous weapon, a fine
under this title or imprisonment for not more than 10
years, or both;
``(ii) if the offense violates a protective order,
a fine under this title or imprisonment for not more
than 5 years, or both; and
``(iii) in any other case, a fine under this title
or imprisonment for not more than 3 years, or both; and
``(B) in the case of a second or subsequent conviction
under such subsection, a fine under this title or imprisonment
for not more than 15 years, or both.
``(2) If a sentence of probation is imposed for an offense under
this section, the court shall require the defendant to undergo
appropriate psychiatric, psychological, or social counselling.
``(c)(1) Whoever is aggrieved by a violation of this section may,
in a civil action, obtain appropriate relief from the person engaging
in that violation. Such relief may include compensatory and punitive
damages, and injunctive or declaratory relief, and shall include
reasonable attorney's fees.
``(2) If--
``(A) the court issues an injunction under this subsection;
``(B) the person against whom the injunction is issued is
an officer or employee in the executive branch of the Federal
Government or in the United States Postal Service; and
``(C) there is a nexus between the enjoined conduct and
such person's office or employment;
the court may order that the person be suspended or summarily
discharged from such office or employment.
``(d) As used in this section, the term `protective order' means
any court order that requires an individual--
``(1) to refrain from behavior prohibited by subsection
(a); or
``(2) to refrain from contact with the person who
subsequently is a victim of the offense under such subsection
that is committed by that individual.''.
(b) Clerical Amendment.--The table of sections at the beginning of
chapter 41 of title 18, United States Code, is amended by adding at the
end the following:
``881. Stalking Federal and postal officers and employees.''.
SEC. 812. NONMAILABILITY OF CONTROLLED SUBSTANCES.
Section 1716 of title 18, United States Code, is amended by adding
at the end the following:
``Whoever knowingly deposits for mailing or delivery, or knowingly
causes to be delivered by mail, according to the direction thereon, or
at any place at which it is directed to be delivered by the person to
whom it is addressed, unless in accordance with the rules and
regulations authorized to be prescribed by the Postal Service, any
controlled substance, as that term is defined for the purposes of the
Controlled Substances Act, shall, if the distribution of a like amount
of such substance is a felony under such Act, be fined under this title
or imprisoned not more than 5 years, or both.''.
SEC. 813. ENHANCED PENALTIES.
Pursuant to its authority under section 994 of title 28, United
States Code, the United States Sentencing Commission shall amend its
sentencing guidelines to--
(1) appropriately enhance penalties in cases in which a
defendant is convicted of stealing or destroying a quantity of
undelivered United States mail, in violation of sections 1702,
1703, 1708, 1709, 2114, or 2115 of title 18, United States
Code; and
(2) establish that the intended loss in a theft of an
access device as defined in section 1029(e)(1) of title 18,
United States Code, shall be based on the credit line of the
access device or the actual unauthorized charges, whichever
amount is greater.
SEC. 814. POSTAL BURGLARY PROVISIONS.
(a) Larceny Involving Post Office Boxes and Postal Stamp Vending
Machines.--Section 2115 of title 18, United States Code, is amended--
(1) by striking ``or'' before ``any building'';
(2) by inserting ``or any post office box or postal
products vending machine,'' after ``used in whole or in part as
a post office,''; and
(3) by inserting ``or in such box or machine,'' after ``so
used''.
(b) Receipt, Possession, Concealment, or Disposition of Property.--
Section 2115 of title 18, United States Code, is amended--
(1) by inserting ``(a)'' before ``Whoever''; and
(2) by adding at the end the following:
``(b) Whoever receives, possesses, conceals, or disposes of any
mail matter, money, or other property of the United States, that has
been obtained in violation of this section, knowing the same to have
been unlawfully obtained, shall be fined under this title or imprisoned
not more than 5 years, or both.''.
SEC. 815. MAIL, MONEY, OR OTHER PROPERTY OF THE UNITED STATES.
(a) Enhanced Penalty for Robbery.--Subsection (a) of section 2114
of title 18, United States Code, is amended to read as follows:
``(a) Assault.--Whoever assaults any person having lawful charge,
control, or custody of any mail matter or of any money or other
property of the United States, with intent to rob, steal, or purloin
such mail matter, money, or other property of the United States, or
robs or attempts to rob any such person of mail matter, or of any
money, or other property of the United States, shall, for the first
offense, be imprisoned not more than 10 years or fined under this
title, or both. If, in effecting or attempting to effect such robbery
the defendant wounds the person having custody of such mail, money, or
other property of the United States, or puts that person's life in
jeopardy by the use of a dangerous weapon, or the offense is a
subsequent offense under this subsection, the defendant shall be
imprisoned not more than 25 years or fined under this title, or both.
If the death of any person results from the offense under this
subsection, the defendant shall be punished by death or life
imprisonment.''.
(b) Attempt Offenses.--
(1) The second paragraph of section 501 of title 18, United
States Code, is amended by striking ``uses or sells,'' and
inserting ``uses or sells or attempts to use or sell,''.
(2) Section 1711 of title 18, United States Code, is
amended by inserting ``attempts to loan, use, pledge,
hypothecate, or convert to this own use,'' after ``converts to
his own use,''.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Government Reform, and in addition to the Committee on the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Government Reform, and in addition to the Committee on the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Government Reform, and in addition to the Committee on the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Subcommittee on Postal Service.
Subcommittee Hearings Held.
Subcommittee Hearings Held.
Subcommittee Consideration and Mark-up Session Held.
Forwarded by Subcommittee to Full Committee in the Nature of a Substitute by Voice Vote.
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line
Referred to the Subcommittee on Crime.