S.Amdt. 2052

1. Rewrites section 402

   Replaces

   In S. 1789 · Reported to Senate

   Struck: SEC. 402. POSTAL RATES.

   Struck: (a) Commission Study.--

   Struck: (1) In general.--Not earlier than 2 years after the date of enactment of this Act, the Commission shall commence a study to determine--

   Struck: (A) whether and to what extent any market-dominant classes, products, or types of mail services do not bear the direct and indirect costs attributable to those classes, products, or types of mail service; and

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   Struck: (B) the impact of any excess mail processing, transportation, or delivery capacity of the Postal Service on the direct and indirect costs attributable to any class, product, or type of mail service that bears less than 100 percent of the costs attributable to the class, product, or type of mail service, as determined under subparagraph (A).

   Struck: (2) Requirements.--The Commission shall conduct the study under paragraph (1) in a manner that protects confidential and proprietary business information.

   Struck: (3) Hearing.--Before completing the study under paragraph (1), the Commission shall hold a public hearing, on the record, in order to better inform the conclusions of the study. The Postal Service, postal customers, and other interested persons may participate in the hearing under this paragraph.

   Struck: (4) Completion.--Not later than 6 months after the date on which the Commission commences the study under subsection (a), the Commission shall complete the study.

   Struck: (b) Annual Updates Required.--Not later than 1 year after the date of completion of the study under subsection (a), and annually thereafter, the Commission shall--

   Struck: (1) determine whether any class of mail bears less than 100 percent of the direct and indirect costs attributable to the class, product, or type of mail service, in the same manner as under subsection (a)(1)(A);

   Struck: (2) for any class of mail for which the Commission makes a determination under paragraph (1), update the study under subsection (a); and

   Struck: (3) include the study updated under paragraph (2) in the annual written determination of the Commission under section 3653 of title 39, United States Code.

   Struck: (c) Postal Rates.--

   Struck: (1) Definition.--In this subsection, the term "loss- making", as used with respect to a class of mail, means a class of mail that bears less than 100 percent of the costs attributable to the class of mail, according to the most recent annual determination of the Commission under subsection (a)(1) or (b)(1), adjusted to account for the quantitative effect of excess mail processing, transportation, or delivery capacity of the Postal Service on the costs attributable to the class of mail.

   Struck: (2) In general.--Not later than 1 year after the date on which the study under subsection (a) is completed, and annually thereafter, the Postal Service shall establish postal rates for each loss-making class of mail.

   Struck: (3) Considerations.--The Postal Service may establish postal rates under paragraph (2) in a manner that ensures, to the extent practicable, that a class of mail described in paragraph (2) is not loss-making by--

   Inserted: SEC. 402. MINIMUM COST COVERAGE FOR MARKET-DOMINANT PRODUCTS.

   [struck: (A) using the authority to increase rates under section ][inserted: Section ]3622(d)(1)[struck: (A)] of title 39, United States Code[struck: ;][inserted: , is amended--]

   Struck: (B) exhausting any unused rate adjustment authority, as defined in section 3622(d)(2)(C) of title 39, United States Code, subject to paragraph (4); and

   Struck: (C) maximizing incentives to reduce costs and increase efficiency with regard to the processing, transportation, and delivery of such mail by the Postal Service.

   Struck: (4) Unused rate adjustment authority.--Section 3622(d)(2)(C) of title 39, United States Code, shall be applied by annually increasing by 2 percentage points any unused rate adjustment authority for a class of mail that bears less than 90 percent of the costs attributable to the class of mail, according to the most recent annual determination of the Commission under subsection (a)(1) or (b)(1), adjusted to account for the quantitative effect of excess mail processing, transportation, or delivery capacity of the Postal Service on the costs attributable to the class of mail.

   Inserted: (1) in subparagraph (D), by striking "and" at the end;

   Inserted: (2) in subparagraph (E), by striking the period at the end and inserting "; and"; and

   Inserted: (3) by adding at the end the following:

   Inserted: "(F) require that each class of domestic or outbound international mail bear the costs that are the sum of--

   Inserted: "(i) the direct and indirect postal costs attributable to the class of mail through reliably identified causal relationships; and

   Inserted: "(ii) that portion of all costs of the Postal Service other than the costs described in clause (i) that are reasonably assignable to the class of mail.".

   Original wording

   Strike section 402 and insert the following:

Read automatically from the Congressional Record. Check the original before relying on it.

As printed