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108th CONGRESS
2d Session
S. 2468
To reform the postal laws of the United States.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 20, 2004
Ms. Collins (for herself, Mr. Carper, Mr. Stevens, Mr. Voinovich, Mr.
Sununu, Mr. Lieberman, Mr. Akaka, and Mr. Durbin) introduced the
following bill; which was read twice and referred to the Committee on
Governmental Affairs
_______________________________________________________________________
A BILL
To reform the postal laws of the United States.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Postal
Accountability and Enhancement Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--DEFINITIONS; POSTAL SERVICES
Sec. 101. Definitions.
Sec. 102. Postal services.
TITLE II--MODERN RATE REGULATION
Sec. 201. Provisions relating to market-dominant products.
Sec. 202. Provisions relating to competitive products.
Sec. 203. Provisions relating to experimental and new products.
Sec. 204. Reporting requirements and related provisions.
Sec. 205. Complaints; appellate review and enforcement.
Sec. 206. Clerical amendment.
TITLE III--MODERN SERVICE STANDARDS
Sec. 301. Establishment of modern service standards.
Sec. 302. Postal service plan.
TITLE IV--PROVISIONS RELATING TO FAIR COMPETITION
Sec. 401. Postal Service Competitive Products Fund.
Sec. 402. Assumed Federal income tax on competitive products income.
Sec. 403. Unfair competition prohibited.
Sec. 404. Suits by and against the Postal Service.
TITLE V--GENERAL PROVISIONS
Sec. 501. Qualification and term requirements for Governors.
Sec. 502. Obligations.
Sec. 503. Private carriage of letters.
Sec. 504. Rulemaking authority.
Sec. 505. Noninterference with collective bargaining agreements.
TITLE VI--ENHANCED REGULATORY COMMISSION
Sec. 601. Reorganization and modification of certain provisions
relating to the Postal Regulatory
Commission.
Sec. 602. Authority for Postal Regulatory Commission to issue
subpoenas.
Sec. 603. Appropriations for the Postal Regulatory Commission.
Sec. 604. Redesignation of the Postal Rate Commission.
Sec. 605. Financial transparency.
TITLE VII--EVALUATIONS
Sec. 701. Assessments of ratemaking, classification, and other
provisions.
Sec. 702. Report on universal postal service and the postal monopoly.
Sec. 703. Study on equal application of laws to competitive products.
TITLE VIII--POSTAL SERVICE RETIREMENT AND HEALTH BENEFITS FUNDING
Sec. 801. Short title.
Sec. 802. Civil Service Retirement System.
Sec. 803. Health insurance.
Sec. 804. Repeal of disposition of savings provision.
Sec. 805. Effective dates.
TITLE IX--COMPENSATION FOR WORK INJURIES
Sec. 901. Temporary disability; continuation of pay.
Sec. 902. Disability retirement for postal employees.
TITLE I--DEFINITIONS; POSTAL SERVICES
SEC. 101. DEFINITIONS.
Section 102 of title 39, United States Code, is amended by striking
``and'' at the end of paragraph (3), by striking the period at the end
of paragraph (4) and inserting a semicolon, and by adding at the end
the following:
``(5) `postal service' refers to the physical delivery of
letters, printed matter, or packages weighing up to 70 pounds,
including physical acceptance, collection, sorting,
transportation, or other services ancillary thereto;
``(6) `product' means a postal service with a distinct cost
or market characteristic for which a rate is applied;
``(7) `rates', as used with respect to products, includes
fees for postal services;
``(8) `market-dominant product' or `product in the market-
dominant category of mail' means a product subject to
subchapter I of chapter 36;
``(9) `competitive product' or `product in the competitive
category of mail' means a product subject to subchapter II of
chapter 36; and
``(10) `year', as used in chapter 36 (other than
subchapters I and VI thereof), means a fiscal year.''.
SEC. 102. POSTAL SERVICES.
(a) In General.--Section 404 of title 39, United States Code, is
amended--
(1) in subsection (a), by striking paragraph (6) and by
redesignating paragraphs (7) through (9) as paragraphs (6)
through (8), respectively; and
(2) by adding at the end the following:
``(c) Nothing in this title shall be considered to permit or
require that the Postal Service provide any special nonpostal or
similar services.''.
(b) Conforming Amendments.--(1) Section 1402(b)(1)(B)(ii) of the
Victims of Crime Act of 1984 (98 Stat. 2170; 42 U.S.C.
10601(b)(1)(B)(ii)) is amended by striking ``404(a)(8)'' and inserting
``404(a)(7)''.
(2) Section 2003(b)(1) of title 39, United States Code, is amended
by striking ``and nonpostal''.
TITLE II--MODERN RATE REGULATION
SEC. 201. PROVISIONS RELATING TO MARKET-DOMINANT PRODUCTS.
(a) In General.--Chapter 36 of title 39, United States Code, is
amended by striking sections 3621, 3622, and 3623 and inserting the
following:
``Sec. 3621. Applicability; definitions
``(a) Applicability.--This subchapter shall apply with respect to--
``(1) first-class mail letters;
``(2) first-class mail cards;
``(3) periodicals;
``(4) standard mail;
``(5) single-piece parcel post;
``(6) media mail;
``(7) bound printed matter;
``(8) library mail;
``(9) special services; and
``(10) single-piece international mail,
subject to any changes the Postal Regulatory Commission may make under
section 3642.
``(b) Rule of Construction.--Mail matter referred to in subsection
(a) shall, for purposes of this subchapter, be considered to have the
meaning given to such mail matter under the mail classification
schedule.
``Sec. 3622. Modern rate regulation
``(a) Authority Generally.--The Postal Regulatory Commission shall,
within 12 months after the date of the enactment of this section, by
regulation establish (and may from time to time thereafter by
regulation revise) a modern system for regulating rates and classes for
market-dominant products.
``(b) Objectives.--Such system shall be designed to achieve the
following objectives:
``(1) To reduce the administrative burden and increase the
transparency of the ratemaking process.
``(2) To create predictability and stability in rates.
``(3) To maximize incentives to reduce costs and increase
efficiency.
``(4) To enhance mail security and deter terrorism by
promoting secure, sender-identified mail.
``(5) To allow the Postal Service pricing flexibility,
including the ability to use pricing to promote intelligent
mail and encourage increased mail volume during nonpeak
periods.
``(6) To assure adequate revenues, including retained
earnings, to maintain financial stability and meet the service
standards established under section 3691.
``(7) To allocate the total institutional costs of the
Postal Service equitably between market-dominant and
competitive products.
``(c) Factors.--In establishing or revising such system, the Postal
Regulatory Commission shall take into account--
``(1) the establishment and maintenance of a fair and
equitable schedule for rates and classification system;
``(2) the value of the mail service actually provided each
class or type of mail service to both the sender and the
recipient, including but not limited to the collection, mode of
transportation, and priority of delivery;
``(3) the direct and indirect postal costs attributable to
each class or type of mail service plus that portion of all
other costs of the Postal Service reasonably assignable to such
class or type;
``(4) the effect of rate increases upon the general public,
business mail users, and enterprises in the private sector of
the economy engaged in the delivery of mail matter other than
letters;
``(5) the available alternative means of sending and
receiving letters and other mail matter at reasonable costs;
``(6) the degree of preparation of mail for delivery into
the postal system performed by the mailer and its effect upon
reducing costs to the Postal Service;
``(7) simplicity of structure for the entire schedule and
simple, identifiable relationships between the rates or fees
charged the various classes of mail for postal services;
``(8) the relative value to the people of the kinds of mail
matter entered into the postal system and the desirability and
justification for special classifications and services of mail;
``(9) the importance of providing classifications with
extremely high degrees of reliability and speed of delivery and
of providing those that do not require high degrees of
reliability and speed of delivery;
``(10) the desirability of special classifications from the
point of view of both the user and of the Postal Service;
``(11) the educational, cultural, scientific, and
informational value to the recipient of mail matter; and
``(12) the policies of this title as well as such other
factors as the Commission deems appropriate.
``(d) Requirements.--The system for regulating rates and classes
for market-dominant products shall--
``(1) require the Postal Rate Commission to set annual
limitations on the percentage changes in rates based on
inflation using indices, such as the Consumer Price Index, the
Employment Cost Index, the Gross Domestic Product Price Index,
or any similar measure as the Postal Rate Commission may
prescribe;
``(2) establish a schedule whereby rates, when necessary
and appropriate, would increase at regular intervals by
predictable amounts;
``(3) not later than 45 days before the implementation of
any adjustment in rates under this section--
``(A) require the Postal Service to provide public
notice of the adjustment;
``(B) provide an opportunity for review by the
Postal Rate Commission;
``(C) provide for the Postal Rate Commission to
notify the Postal Service of any noncompliance of the
adjustment with the limitation under paragraph (1); and
``(D) require the Postal Service to respond to the
notice provided under subparagraph (C) and describe the
actions to be taken to comply with the limitation under
paragraph (1);
``(4) notwithstanding any limitation set under paragraphs
(1) and (3), establish procedures whereby rates may be adjusted
on an expedited basis due to unexpected and extraordinary
circumstances.
``(e) Workshare Discounts.--
``(1) Definition.--In this subsection, the term `workshare
discount' refers to rate discounts provided to mailers for the
presorting, prebarcoding, handling, or transportation of mail,
as further defined by the Postal Regulatory Commission under
subsection (a).
``(2) Regulations.--As part of the regulations established
under subsection (a), the Postal Regulatory Commission shall
establish rules for workshare discounts that ensure that such
discounts do not exceed the cost that the Postal Service avoids
as a result of workshare activity, unless--
``(A) the discount is--
``(i) associated with a new postal service
or with a change to an existing postal service;
and
``(ii) necessary to induce mailer behavior
that furthers the economically efficient
operation of the Postal Service;
``(B) a reduction in the discount would--
``(i) lead to a loss of volume in the
affected category of mail and reduce the
aggregate contribution to institutional costs
of the Postal Service from the mail
matter subject to the discount below what it otherwise would have been
if the discount had not been reduced to costs avoided;
``(ii) result in a further increase in the
rates paid by mailers not able to take
advantage of the discount; or
``(iii) impede the efficient operation of
the Postal Service;
``(C) the amount of the discount above costs
avoided--
``(i) is necessary to mitigate rate shock;
and
``(ii) will be phased out over time;
``(D) the workshare discount is provided in
connection with subclasses of mail consisting
exclusively of mail matter of educational, cultural, or
scientific value; or
``(E) the Postal Regulatory Commission determines
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