Postal Accountability and Enhancement Act

        [Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1285 Introduced in Senate (IS)]

108th CONGRESS
1st Session
S. 1285

To reform the postal laws of the United States.

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

June 18, 2003

Mr. Carper 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.
Sec. 303. Postal Network Modernization Commission.
Sec. 304. Closure and consolidation of facilities.
Sec. 305. Congressional consideration of commission report.
Sec. 306. Nonappealability to Postal Regulatory Commission.
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.
Sec. 405. International postal arrangements.
Sec. 406. Change-of-address order involving a commercial mail receiving

agency.
Sec. 407. Exception for competitive products.
TITLE V--GENERAL PROVISIONS

Sec. 501. Qualification requirements for Governors.
Sec. 502. Obligations.
Sec. 503. Private carriage of letters.
Sec. 504. Rulemaking authority.
Sec. 505. Noninterference with collective bargaining agreements, etc.
Sec. 506. Bonus authority.
TITLE VI--ENHANCED REGULATORY COMMISSION

Sec. 601. Reorganization and modification of certain provisions.
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.
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--EVALUATIONS

Sec. 801. Definition.
Sec. 802. Assessments of ratemaking, classification, and other
provisions.
Sec. 803. Study on equal application of laws to competitive products.
Sec. 804. Greater diversity in Postal Service executive and
administrative schedule management
positions.
Sec. 805. Contracts with women, minorities, and small businesses.
Sec. 806. Rates for periodicals.
Sec. 807. Assessment of certain rate deficiencies.
TITLE IX--MISCELLANEOUS; TECHNICAL AND CONFORMING AMENDMENTS

Sec. 901. Employment of postal police officers.
Sec. 902. Date of postmark to be treated as date of appeal in
connection with the closing or
consolidation of post offices.
Sec. 903. Provisions relating to benefits under chapter 81 of title 5,
United States Code, for officers and
employees of the former Post Office
Department.
Sec. 904. Obsolete provisions.
Sec. 905. Expanded contracting authority.
Sec. 906. Investments.
Sec. 907. Repeal of section 5403.
Sec. 908. Technical and conforming amendments.

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; and
``(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)(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) all first-class mail not included under paragraph
(1);
``(3) periodicals;
``(4) standard mail (except for parcel post);
``(5) media mail;
``(6) library mail; and
``(7) bound printed matter, 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 24 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 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.
``(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) Allowable Provisions.--The system for regulating rates and
classes for market-dominant products may include--
``(1) price caps, revenue targets, or other form of
incentive regulation;
``(2) cost-of-service regulation; or
``(3) such other form of regulation as the Commission
considers appropriate to achieve, consistent with subsection
(c), the objectives of subsection (b).
``(e) Requirements.--The system for regulating rates and classes
for market-dominant products shall--
``(1) establish a schedule whereby rates, when necessary,
would increase at regular intervals by predictable amounts; and
``(2) establish procedures whereby rates may be increased
on a expedited basis when an unexpected decline in revenue or
increase in costs threatens the ability of the Postal Service
to maintain service at the standards established by the Postal
Regulatory Commission under section 3691.
``(f) Transition Rule.--Until regulations under this section first
take effect, rates and classes for market-dominant products shall
remain subject to modification in accordance with the provisions of
this chapter and section 407, as such provisions were last in effect
before the date of the enactment of this section.
``Sec. 3623. Service agreements for market-dominant products
``(a) In General.--
``(1) Authority.--The Postal Service may enter into service
agreements with mailers that provide for the provision of
postal services under terms and conditions that differ from
those that would apply under the otherwise applicable market-
dominant mail classification.
``(2) Agreements.--An agreement under this section may
involve--
``(A) performance by the contracting mail user of
mail preparation, processing, transportation, or other
functions that reduce costs to the Postal Service;
``(B) performance by the Postal Service of
additional mail preparation, processing,
transportation, or other functions that increase costs
to the Postal Service; or
``(C) other terms and conditions that meet the
requirements of subsections (b) and (c).
``(b) Requirements.--A service agreement under this section may
only be entered into if the agreement will benefit the contracting
mailer, the Postal Service, and mailers who are not parties to the
agreement and if each of the following conditions is met:
``(1) The total revenue generated under the agreement--
``(A) will cover all costs attributable to the
Postal Service; and
``(B) will result in a greater contribution to the
institutional costs of the Postal Service than would
have been granted had the agreement not been entered
into.
``(2) Rates and fees for other mailers will not increase as
a result of the agreement.
``(3) The agreement pertains exclusively to products in the
market-dominant category of mail.
``(4) The agreement will not preclude or materially hinder
similarly situated mail users from entering into agreements
with the Postal Service on the same, or substantially the same,
terms, and the Postal Service remains willing and able to enter
into such.
``(c) Limitations.--A service agreement under this section shall--
``(1) be for a term of not to exceed 3 years; and
``(2) provide that such agreement shall be subject to the
cancellation authority of the Commission under section 3662.
``(d) Notice Requirements.--
``(1) In general.--At least 30 days before a service
agreement under this section is to take effect, the Postal
Service shall file with the Postal Regulatory Commission and
publish in the Federal Register the following:
``(A) With respect to each condition under
subsection (b), information in sufficient detail to
demonstrate the bases for the Postal Service's view
that such condition would be met.
``(B) A description of the type of mail the
agreement involves.
``(C) The mail preparation, processing,
transportation, administration, or other additional
functions, if any, the mail user is to perform under
the agreement.
``(D) The services or benefits the Postal Service
is to perform under the agreement.
``(E) The rates and fees payable by the mail user
during the term of the agreement.
``(2) Agreements less than national in scope.--In the case
of a service agreement under this section that is less than
national in scope, the information described under paragraph
(1) shall also be published by the Postal Service in a manner
designed to afford reasonable notice to persons within any
geographic area to which such agreement (or any amendment
thereto) pertains.
``(e) Equal Treatment Required.--If the Postal Service enters into
a negotiated service agreement with a mailer under this section, the
Postal Service shall make such agreement available to other mailers on
the same terms and conditions.
``(f) Complaints.--Any person who believes that a service agreement
under this section is not (or, in the case of a proposed agreement or a
proposed amendment to a service agreement under this section, would not
be) in conformance with the requirements of this section and
regulations thereunder, or who aggrieved by a decision of the Postal
Service not to enter into an agreement under this section, may file a
complaint with the Postal Regulatory Commission in accordance with
section 3662.
``(g) Postal Regulatory Commission Role.--
``(1) Regulations.--The Postal Regulatory Commission may
promulgate such regulations regarding service agreements as the
Commission determines necessary to implement the requirements
of this section.
``(2) Review.--The Postal Regulatory Commission may review
any agreement or proposed agreement under this section and may
suspend, cancel, or prevent such agreement if the Commission
finds that the agreement does not meet the requirements of this
section or the regulations thereunder.
``(h) Interpretation.--The determination of whether the revenue
generated under the agreement meets the requirements of (b)(1)(B) shall
be based on the actual contribution of the mail involved, not on the
average contribution made by the mail classification most similar to
the services performed under the agreement.
``(i) Rate Discounts.--In the administration of this section, the
Postal Regulatory Commission shall not permit rate discounts for
additional mail preparation, processing, transportation, or other
functions that exceed the costs avoided by the Postal Service by virtue
of the additional functions performed by the mailer. Such discounts are
allowable only if the Commission has, after notice and opportunity for
a public hearing and comment, determined that such discounts are
reasonable and equitable and are necessary to enable the Postal
Service, under best practices of honest, efficient, and economical
management, to maintain and continue the development of postal services
of the kind and quality adapted to the needs of the United States
consistent with the service standards established under section
3691.''.
(b) Repealed Sections.--Sections 3624, 3625, and 3628 of title 39,
United States Code, are repealed.
(c) Redesignation.--Chapter 36 of title 39, United States Code (as
in effect after the amendment made by section 601, but before the
amendment made by section 202) is amended by striking the heading for
subchapter II and inserting the following:

``SUBCHAPTER I--PROVISIONS RELATING TO MARKET-DOMINANT PRODUCTS''.

SEC. 202. PROVISIONS RELATING TO COMPETITIVE PRODUCTS.

Chapter 36 of title 39, United States Code, is amended by inserting
after section 3629 the following:

``SUBCHAPTER II--PROVISIONS RELATING TO COMPETITIVE PRODUCTS

``Sec. 3631. Applicability; definitions and updates
``(a) Applicability.--This subchapter shall apply with respect to--
``(1) priority mail;
``(2) expedited mail;
``(3) mailgrams;
``(4) international mail; and
``(5) parcel post,
subject to subsection (d) and any changes the Postal Regulatory
Commission may make under section 3642.
``(b) Definition.--For purposes of this subchapter, the term `costs
attributable', as used with respect to a product, means the direct and
indirect postal costs attributable to such product.
``(c) Rule of Construction.--Mail matter referred to in subsection
(a) shall, for purposes of this subchapter, be considered to have the
meaning given to such mail matter under the mail classification
schedule.
``(d) Limitation.--Notwithstanding any other provision of this
section, nothing in this subchapter shall be considered to apply with
respect to any product then currently in the market-dominant category
of mail.
``Sec. 3632. Action of the Governors
``(a) Authority To Establish Rates and Classes.--The Governors,
with the written concurrence of a majority of all of the Governors then
holding office, shall establish rates and classes for products in the
competitive category of mail in accordance with the requirements of
this subchapter and regulations promulgated under section 3633.
``(b) Procedures.--
``(1) In general.--Rates and classes shall be established
in writing, complete with a statement of explanation and
justification, and the date as of which each such rate or class
takes effect.
``(2) Publication.--The Governors shall cause each rate and
class decision under this section and the record of the
Governors' proceedings in connection with such decision to be
published in the Federal Register by such date before the
effective date of any new rates or classes as the Governors
consider appropriate.
``(c) Transition Rule.--Until regulations under section 3633 first
take effect, rates and classes for competitive products shall remain
subject to modification in accordance with the provisions of this
chapter and section 407, as such provisions were as last in effect
before the date of the enactment of this section.
``Sec. 3633. Provisions applicable to rates for competitive products
``The Postal Regulatory Commission shall, within 180 days after the
date of the enactment of this section, promulgate (and may from time to
time thereafter revise) regulations--
``(1) to prohibit the subsidization of competitive products
by market-dominant products;
``(2) to ensure that each competitive product covers its
costs attributable; and
``(3) to ensure that all competitive products collectively
cover their share of the institutional costs of the Postal
Service.''.

SEC. 203. PROVISIONS RELATING TO EXPERIMENTAL AND NEW PRODUCTS.

Subchapter III of chapter 36 of title 39, United States Code, is
amended to read as follows:

``SUBCHAPTER III--PROVISIONS RELATING TO EXPERIMENTAL AND NEW PRODUCTS

``Sec. 3641. Market tests of experimental products
``(a) Authority.--
``(1) In general.--The Postal Service may conduct market
tests of experimental products in accordance with this section.
``(2) Provisions waived.--A product shall not, while it is
being tested under this section, be subject to the requirements
of sections 3622, 3633, or 3642, or regulations promulgated
under those sections.
``(b) Conditions.--A product may not be tested under this section
unless it satisfies each of the following:
``(1) Significantly different product.--The product is,
from the viewpoint of the mail users, significantly different
from all products offered by the Postal Service within the 2-
year period preceding the start of the test.
``(2) Market disruption.--The introduction or continued
offering of the product will not create an unfair or otherwise
inappropriate competitive advantage for the Postal Service or
any mailer, particularly in regard to small business concerns
(as defined under subsection (h)).
``(3) Correct categorization.--The Postal Service
identifies the product, for the purpose of a test under this
section, as either market dominant or competitive, consistent
with the criteria under section 3642(b)(1). Costs and revenues
attributable to a product identified as competitive shall be
included in any determination under section 3633(3)(relating to
provisions applicable to competitive products collectively).
``(c) Notice.--
``(1) In general.--At least 30 days before initiating a
market test under this section, the Postal Service shall file
with the Postal Regulatory Commission and publish in the
Federal Register a notice--
``(A) setting out the basis for the Postal
Service's determination that the market test is covered
by this section; and
``(B) describing the nature and scope of the market
test.
``(2) Safeguards.--For a competitive experimental product,
the provisions of section 504(g) shall be available with
respect to any information required to be filed under paragraph
(1) to the same extent and in the same manner as in the case of
any matter described in section 504(g)(1). Nothing in paragraph
(1) shall be considered to permit or require the publication of
any information as to which confidential treatment is accorded
under the preceding sentence (subject to the same exception as
set forth in section 504(g)(3)).
``(d) Duration.--
``(1) In general.--A market test of a product under this
section may be conducted over a period of not to exceed 24
months.
``(2) Extension authority.--If necessary in order to
determine the feasibility or desirability of a product being
tested under this section, the Postal Regulatory Commission may, upon
written application of the Postal Service (filed not later than 60 days
before the date as of which the testing of such product would otherwise
be scheduled to terminate under paragraph (1)), extend the testing of
such product for not to exceed an additional 12 months.
``(e) Dollar-Amount Limitation.--
``(1) In general.--A product may only be tested under this
section if the total revenues that are anticipated, or in fact
received, by the Postal Service from such product do not exceed
$10,000,000 in any year, subject to paragraph (2) and
subsection (g).
``(2) Exemption authority.--The Postal Regulatory
Commission may, upon written application of the Postal Service,
exempt the market test from the limit in paragraph (1) if the
total revenues that are anticipated, or in fact received, by
the Postal Service from such product do not exceed $50,000,000
in any year, subject to subsection (g). In reviewing an
application under this paragraph, the Postal Regulatory
Commission shall approve such application if it determines
that--
``(A) the product is likely to benefit the public
and meet an expected demand;
``(B) the product is likely to contribute to the
financial stability of the Postal Service; and
``(C) the product is not likely to result in unfair
or otherwise inappropriate competition.
``(f) Cancellation.--If the Postal Regulatory Commission at any
time determines that a market test under this section fails, with
respect to any particular product, to meet one or more of the
requirements of this section, it may order the cancellation of the test
involved or take such other action as it considers appropriate. A
determination under this subsection shall be made in accordance with
such procedures as the Commission shall by regulation prescribe.
``(g) Adjustment for Inflation.--For purposes of each year
following the year in which occurs the deadline for the Postal
Service's first report to the Postal Regulatory Commission under
section 3652(a), each dollar amount contained in this section shall be
adjusted by the change in the Consumer Price Index for such year (as
determined under regulations of the Commission).
``(h) Definition of a Small Business Concern.--The criteria used in
defining small business concerns or otherwise categorizing business
concerns as small business concerns shall, for purposes of this
section, be established by the Postal Regulatory Commission in
conformance with the requirements of section 3 of the Small Business
Act.
``(i) Effective Date.--Market tests under this subchapter may be
conducted in any year beginning with the first year in which occurs the
deadline for the Postal Service's first report to the Postal Regulatory
Commission under section 3652(a).
``Sec. 3642. New products and transfers of products between the market-
dominant and competitive categories of mail
``(a) In General.--Upon request of the Postal Service or users of
the mails, or upon its own initiative, the Postal Regulatory Commission
may change the list of market-dominant products under section 3621 and
the list of competitive products under section 3631 by adding new
products to the lists, removing products from the lists, or
transferring products between the lists.
``(b) Criteria.--All determinations by the Postal Regulatory
Commission under subsection (a) shall be made in accordance with the
following criteria:
``(1) The market-dominant category of products shall
consist of each product in the sale of which the Postal Service
exercises sufficient market power that it can effectively set
the price of such product substantially above costs, raise
prices significantly, decrease quality, or decrease output,
without risk of losing business to other firms offering similar
products. The competitive category of products shall consist of
all other products.
``(2) Exclusion of products covered by postal monopoly.--A
product covered by the postal monopoly shall not be subject to
transfer under this section from the market-dominant category
of mail. For purposes of the preceding sentence, the term
`product covered by the postal monopoly' means any product the
conveyance or transmission of which is reserved to the United
States under section 1696 of title 18, subject to the same
exception as set forth in the last sentence of section
409(e)(1).
``(3) Additional considerations.--In making any decision
under this section, due regard shall be given to--
``(A) the availability and nature of enterprises in
the private sector engaged in the delivery of the
product involved;
``(B) the views of those who use the product
involved on the appropriateness of the proposed action;
and
``(C) the likely impact of the proposed action on
small business concerns (within the meaning of section
3641(h)).
``(c) Transfers of Subclasses and Other Subordinate Units
Allowable.--Nothing in this title shall be considered to prevent
transfers under this section from being made by reason of the fact that
they would involve only some (but not all) of the subclasses or other
subordinate units of the class of mail or type of postal service
involved (without regard to satisfaction of minimum quantity
requirements standing alone).
``(d) Notification and Publication Requirements.--
``(1) Notification requirement.--The Postal Service shall,
whenever it requests to add a product or transfer a product to
a different category, file with the Postal Regulatory
Commission and publish in the Federal Register a notice setting
out the basis for its determination that the product satisfies
the criteria under subsection (b) and, in the case of a request
to add a product or transfer a product to the competitive
category of mail, that the product meets the regulations
promulgated by the Postal Regulatory Commission pursuant to
section 3633. The provisions of section 504(g) shall be
available with respect to any information required to be filed.
``(2) Publication requirement.--The Postal Regulatory
Commission shall, whenever it changes the list of products in
the market-dominant or competitive category of mail, prescribe
new lists of products. The revised lists shall indicate how and
when any previous lists (including the lists under sections
3621 and 3631) are superseded, and shall be published in the
Federal Register.
``(e) Prohibition.--Except as provided in section 3641, no product
that involves the physical delivery of letters, printed matter, or
packages may be offered by the Postal Service unless it has been
assigned to the market-dominant or competitive category of mail (as
appropriate) either--
``(1) under this subchapter; or
``(2) by or under any other provision of law.''.

SEC. 204. REPORTING REQUIREMENTS AND RELATED PROVISIONS.

(a) Redesignation.--Chapter 36 of title 39, United States Code (as
in effect before the amendment made by subsection (b)) is amended by
striking the heading for subchapter IV and inserting the following:

``SUBCHAPTER V--POSTAL SERVICES, COMPLAINTS, AND JUDICIAL REVIEW''.

(b) Reports and Compliance.--Chapter 36 of title 39, United States
Code, is amended by inserting after subchapter III the following:

``SUBCHAPTER IV--REPORTING REQUIREMENTS AND RELATED PROVISIONS

``Sec. 3651. Annual reports by the Commission
``(a) In General.--The Postal Regulatory Commission shall submit an
annual report to the President and the Congress concerning the
operations of the Commission under this title, including the extent to
which regulations are achieving the objectives under sections 3622,
3633, and 3691.
``(b) Information From Postal Service.--The Postal Service shall
provide the Postal Regulatory Commission with such information as may,
in the judgment of the Commission, be necessary in order for the
Commission to prepare its reports under this section.
``Sec. 3652. Annual reports to the Commission
``(a) Costs, Revenues, Rates, and Service.--Except as provided in
subsection (c), the Postal Service shall, no later than 90 days after
the end of each year, prepare and submit to the Postal Regulatory
Commission a report (together with such nonpublic annex thereto as the
Commission may require under subsection (e))--
``(1) which shall analyze costs, revenues, rates, and
quality of service in sufficient detail to demonstrate that all
products during such year complied with all applicable
requirements of this title; and
``(2) which shall, for each market-dominant product
provided in such year, provide--
``(A) market information, including mail volumes;
and
``(B) measures of the service afforded by the
Postal Service in connection with such product,
including--
``(i) the level of service (described in
terms of speed of delivery and reliability)
provided; and
``(ii) the degree of customer satisfaction
with the service provided.
Before submitting a report under this subsection (including any annex
thereto and the information required under subsection (b)), 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) Information Relating to Workshare Discounts.
``(1) In general.--The Postal Service shall include, in
each report under subsection (a), the following information
with respect to each market-dominant product for which a
workshare discount was in effect during the period covered by
such report:
``(A) The per-item cost avoided by the Postal
Service by virtue of such discount.
``(B) The percentage of such per-item cost avoided
that the per-item workshare discount represents.
``(C) The per-item contribution made to
institutional costs.
``(2) Workshare discount defined.--For purposes of this
subsection, the term `workshare discount' refers to presorting,
barcoding, dropshipping, and other similar discounts, as
further defined under regulations which the Postal Regulatory
Commission shall prescribe.
``(c) Service Agreements and Market Tests.--In carrying out
subsections (a) and (b) with respect to service agreements (including
service agreements entered into under section 3623) and experimental
products offered through market tests under section 3641 in a year, the
Postal Service--
``(1) may report summary data on the costs, revenues, and
quality of service by service agreement and market test; and
``(2) shall 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
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 504(g) in the same way as if the Commission had
received notification with respect to such matter under section
504(g)(1).
``(g) Other Reports.--The Postal Service shall submit to the Postal
Regulatory Commission, together with any other submission that the
Postal Service is required to make under this section in a year, copies
of its then most recent--
``(1) comprehensive statement under section 2401(e);
``(2) strategic plan under section 2802;
``(3) performance plan under section 2803; and
``(4) program performance reports under section 2804.
``Sec. 3653. Annual determination of compliance
``(a) Opportunity for Public Comment.--After receiving the reports
required under section 3652 for any year, the Postal Regulatory
Commission shall promptly provide an opportunity for comment on such
reports by users of the mails, affected parties, and an officer of the
Commission who shall be required to represent the interests of the
general public.
``(b) Determination of Compliance or Noncompliance.--Not later than
90 days after receiving the submissions required under section 3652
with respect to a year, the Postal Regulatory Commission shall make a
written determination as to--
``(1) whether any rates or fees in effect during such year
(for products individually or collectively) were not in
compliance with applicable provisions of this chapter (or
regulations promulgated thereunder); or
``(2) whether any service standards in effect during such
year were not met.
If, with respect to a year, no instance of noncompliance is found under
this subsection to have occurred in such year, the written
determination shall be to that effect.
``(c) If Any Noncompliance Is Found.--If, for a year, a timely
written determination of noncompliance is made under subsection (b),
the Postal Regulatory Commission shall take appropriate action in
accordance with section 3662.
``(d) Rebuttable Presumption.--A timely written determination
described in the last sentence of subsection (b) shall, for purposes of
any proceeding under section 3662, create a rebuttable presumption of
compliance by the Postal Service (with regard to the matters described
in paragraphs (1) through (3) of subsection (b)) during the year to
which such determination relates.''.

SEC. 205. COMPLAINTS; APPELLATE REVIEW AND ENFORCEMENT.

Chapter 36 of title 39, United States Code, is amended by striking
sections 3662 and 3663 and inserting the following:
``Sec. 3662. Rate and service complaints
``(a) In General.--Interested persons (including an officer of the
Postal Regulatory Commission representing the interests of the general
public) who believe the Postal Service is not operating in conformance
with the requirements of chapter 1, 4, or 6, or this chapter (or
regulations promulgated under any of those chapters) may lodge a
complaint with the Postal Regulatory Commission in such form and manner
as the Commission may prescribe.
``(b) Prompt Response Required.--
``(1) In general.--The Postal Regulatory Commission shall,
within 90 days after receiving a complaint under subsection
(a), either--
``(A) begin proceedings on such complaint; or
``(B) issue an order dismissing the complaint
(together with a statement of the reasons therefor).
``(2) Treatment of complaints not timely acted on.--For
purposes of section 3663, any complaint under subsection (a) on
which the Commission fails to act in the time and manner
required by paragraph (1) shall be treated in the same way as
if it had been dismissed pursuant to an order issued by the
Commission on the last day allowable for the issuance of such
order under paragraph (1).
``(c) Action Required If Complaint Found To Be Justified.--If the
Postal Regulatory Commission finds the complaint to be justified, it
shall order that the Postal Service take such action as the Commission
considers appropriate in order to achieve compliance with the
applicable requirements and to remedy the effects of any noncompliance.
Such action may include ordering unlawful rates to be adjusted to
lawful levels, ordering the cancellation of market tests, ordering the
Postal Service to discontinue providing loss-making products, and
requiring the Postal Service to make up for revenue shortfalls in
competitive products.
``(d) Authority To Order Fines in Cases of Deliberate
Noncompliance.--In addition, in cases of deliberate noncompliance by
the Postal Service with the requirements of this title, the Postal
Regulatory Commission may order, based on the nature, circumstances,
extent, and seriousness of the noncompliance, a fine (in the amount
specified by the Commission in its order) for each incidence of
noncompliance. Fines resulting from the provision of competitive
products shall be paid 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.
``Sec. 3663. Appellate review
``A person adversely affected or aggrieved by a final order or
decision of the Postal Regulatory Commission may, within 30 days after
such order or decision becomes final, institute proceedings for review
thereof by filing a petition in the United States Court of Appeals for
the District of Columbia. The court shall review the order or decision
in accordance with section 706 of title 5, and chapter 158 and section
2112 of title 28, on the basis of the record before the Commission.
``Sec. 3664. Enforcement of orders
``The several district courts have jurisdiction specifically to
enforce, and to enjoin and restrain the Postal Service from violating,
any order issued by the Postal Regulatory Commission.''.

SEC. 206. CLERICAL AMENDMENT.

Chapter 36 of title 39, United States Code, is amended by striking
the heading and analysis for such chapter and inserting the following:

``CHAPTER 36--POSTAL RATES, CLASSES, AND SERVICES

``SUBCHAPTER I--PROVISIONS RELATING TO MARKET-DOMINANT PRODUCTS

``Sec.
``3621. Applicability; definitions.
``3622. Modern rate regulation.
``3623. Service agreements for market-dominant products.
``[3624. Repealed.]
``[3625. Repealed.]
``3626. Reduced Rates.
``3627. Adjusting free rates.
``[3628. Repealed.]
``3629. Reduced rates for voter registration purposes.
``SUBCHAPTER II--PROVISIONS RELATING TO COMPETITIVE PRODUCTS

``3631. Applicability; definitions and updates.
``3632. Action of the Governors.
``3633. Provisions applicable to rates for competitive products.
``3634. Assumed Federal income tax on competitive products.
``SUBCHAPTER III--PROVISIONS RELATING TO EXPERIMENTAL AND NEW PRODUCTS

``3641. Market tests of experimental products.
``3642. New products and transfers of products between the market-
dominant and competitive categories of
mail.
``SUBCHAPTER IV--REPORTING REQUIREMENTS AND RELATED PROVISIONS

``3651. Annual reports by the Commission.
``3652. Annual reports to the Commission.
``3653. Annual determination of compliance.
``SUBCHAPTER V--POSTAL SERVICES, COMPLAINTS, AND JUDICIAL REVIEW

``3661. Postal Services.
``3662. Rate and service complaints.
``3663. Appellate review.
``3664. Enforcement of orders.
``SUBCHAPTER VI--GENERAL

``3681. Reimbursement.
``3682. Size and weight limits.
``3683. Uniform rates for books; films, other materials.
``3684. Limitations.
``3685. Filing of information relating to periodical publications.
``3686. Change-of-address order involving a commercial mail receiving
agency.
``3687. Bonus authority.
``SUBCHAPTER VII--MODERN SERVICE STANDARDS

``3691. Establishment of modern service standards.''.

TITLE III--MODERN SERVICE STANDARDS

SEC. 301. ESTABLISHMENT OF MODERN SERVICE STANDARDS.

Chapter 36 of title 39, United States Code, as amended by this Act,
is further amended by adding at the end the following:

``SUBCHAPTER VII--MODERN SERVICE STANDARDS

``Sec. 3691. Establishment of modern service standards
``(a) Authority Generally.--The Postal Regulatory Commission shall,
within 24 months after the date of the enactment of this section, by
regulation establish (and may from time to time thereafter by
regulation revise) a set of service standards for market-dominant
products consistent with sections 101 (a) and (b) and 403.
``(b) Objectives.--Such standards shall be designed to achieve the
following objectives:
``(1) To increase the value of postal services to both
senders and recipients.
``(2) To provide a benchmark for Postal Service performance
goals.
``(3) To guarantee Postal Service customers delivery speed
and frequency consistent with reasonable rates.
``(c) Factors.--In establishing or revising such standards, the
Postal Regulatory Commission shall take into account--
``(1) any service standards previously established by the
Postal Service;
``(2) the actual level of service Postal Service customers
receive;
``(3) customer satisfaction with Postal Service
performance;
``(4) mail volume and revenues projected for future years;
``(5) the projected growth in the number of addresses the
Postal Service will be required to serve in future years;
``(6) the current and projected future cost of serving
Postal Service customers; and
``(7) the policies of this title as well as such other
factors as the Commission determines appropriate.''.

SEC. 302. POSTAL SERVICE PLAN.

(a) In General.--Within 1 year after the establishment of the
service standards under section 3691 of title 39, United States Code,
as added by this Act, the Postal Service shall, in consultation with
the Postal Regulatory Commission, develop and submit to Congress a plan
for meeting those standards.
(b) Content.--The plan under this section shall--
(1) establish performance goals;
(2) describe any changes to the Postal Service's
processing, transportation, delivery, and retail networks
necessary to allow the Postal Service to meet the performance
goals; and
(3) describe any changes to planning and performance
management documents previously submitted to Congress to
reflect new performance goals.
(c) Recommendations.--The Postal Service plan shall include a list
of any processing and retail facilities that can be closed or
consolidated without hindering the Postal Service's ability to meet
established service standards. The recommendations shall be consistent
with the provisions in section 101(b) of title 39, United States Code
prohibiting the closing of post offices, including post offices in
rural areas and small towns, solely because they are not self-
sustaining or operate at a deficit.
(d) Alternate Retail Options.--The Postal Service plan shall
include, to the extent possible, plans to provide postal services by
other means, including--
(1) vending machines;
(2) the Internet;
(3) Postal Service employees on delivery routes; and
(4) retail facilities in which overhead costs are shared
with private businesses and other government agencies.
(e) Reemployment Assistance and Retirement Benefits.--The Postal
Service plan shall include--
(1) a plan under which reemployment assistance shall be
afforded to employees displaced as a result of the automation
or privatization of any of its functions or the closing and
consolidation of any of its facilities; and
(2) a plan, developed in consultation with the Office of
Personnel Management, to offer early retirement benefits.
(f) Inspector General Report.--
(1) In general.--Before submitting the plan under this
section to Congress, the Postal Service shall submit the plan
to the Inspector General of the United States Postal Service in
a timely manner to carry out this subsection.
(2) Report.--The Inspector General shall prepare a report
describing the extent to which the Postal Service plan--
(A) is consistent with the continuing obligations
of the Postal Service under title 39, United States
Code; and
(B) provides for the Postal Service to meet the
service standards established under section 3691.
(3) Submission of report.--The Postal Service shall submit
the report of the Inspector General under this subsection with
the plan submitted to Congress under subsection (a).
(g) Recommended Facility Closings and Consolidations.--The list of
recommended facility closings and consolidations, including the
criteria used for selection, justifications for each recommendation,
and any comments received from affected communities, shall be
transmitted to the Postal Network Modernization Commission at the same
time the Postal Service plan is transmitted to Congress.
(h) Continuing Responsibilities.--Nothing in this section shall
affect the responsibilities of the Postal Service under section 404(b)
of title 39, United States Code, with respect to any postal facility by
reason of that facility being recommended for closing or consolidation
under this section.

SEC. 303. POSTAL NETWORK MODERNIZATION COMMISSION.

(a) Establishment.--There is established an independent commission
to be known as the ``Postal Network Modernization Commission''.
(b) Duties.--The Commission shall carry out the duties specified in
this title.
(c) Appointment.--
(1) In general.--
(A) Composition.--The Commission shall be composed
of 8 members appointed by the President, by and with
the advice and consent of the Senate.
(B) Limitation on political party membership.--No
more than 4 members of the Commission at any time shall
be from the same political party.
(C) Employee representation.--One member of the
Commission shall be chosen from among persons nominated
for such office with the unanimous concurrence of all
organizations representing postmasters and all employee
organizations described under section 1004(b) of title
39, United States Code.
(D) Union representation.--One member of the
Commission shall be chosen from among persons nominated
for such office with the unanimous concurrence of all
labor organizations described in section 206(a)(1) of
title 39, United States Code.
(2) Chairman.--At the time the President nominates
individuals for appointment to the Commission, the President
shall designate one such individual who shall serve as Chairman
of the Commission.
(d) Meetings.--
(1) Open meetings.--Each meeting of the Commission shall be
open to the public.
(2) Proceedings, information, and deliberations.--All of
the proceedings, information, and deliberation of the
Commission shall be open, upon request, to the following:
(A) Committee on governmental affairs.--The
Chairman and the ranking minority party member of the
Committee on Governmental Affairs of the Senate, or
such other members of the Committee designated by such
Chairman or ranking minority party member.
(B) Committee on government reform.--The Chairman
and the ranking minority party member of the Committee
on Government Reform of the House of Representatives,
or such other members of the Committee designated by
such Chairman or ranking minority party member.
(C) Committees on appropriations.--The Chairmen and
ranking minority party members of the Subcommittees on
Transportation, Treasury, and General Government of the
Committees on Appropriations of the Senate and the
House of Representatives, or such other members of the
Subcommittees designated by such Chairmen or ranking
minority party members.
(e) Vacancies.--A vacancy in the Commission shall be filled in the
same manner as the original appointment.
(f) Pay and Travel Expenses.--
(1) In general.--
(A) Pay.--Each member, other than the Chairman,
shall be paid at a rate equal to the daily equivalent
of the minimum annual rate of basic pay payable for
level IV of the Executive Schedule under section 5315
of title 5, United States Code, for each day (including
travel time) during which the member is engaged in the
actual performance of duties vested in the Commission.
(B) Pay for chairman.--The Chairman shall be paid
for each day referred to in subparagraph (A) at a rate
equal to the daily equivalent of the minimum annual
rate of basic pay payable for level III of the
Executive Schedule under section 5314 of title 5,
United States Code.
(2) Travel expenses.--Members shall receive travel
expenses, including per diem in lieu of subsistence, in
accordance with sections 5702 and 5703 of title 5, United
States Code.
(g) Director of Staff.--
(1) Appointment.--The Commission shall, without regard to
section 5311(b) of title 5, United States Code, appoint a
Director who was not employed by the Postal Service during the
1-year period preceding the date of such appointment.
(2) Pay.--The Director shall be paid at the rate of basic
pay payable for level IV of the Executive Schedule under
section 5315 of title 5, United States Code.
(h) Staff.--
(1) In general.--Subject to paragraphs (2) and (3), the
Director, with the approval of the Commission, may appoint and
fix the pay of additional personnel.
(2) Conditions of appointments.--The Director may make such
appointments without regard to the provisions of title 5,
United States Code, governing appointments in the competitive
service, and any personnel so appointed may be paid without
regard to the provisions of chapter 51 and subchapter III of
chapter 53 of that title relating to classification and General
Schedule pay rates, except that an individual so appointed may
not receive pay in excess of the highest annual rate of basic
pay payable for a position classified at above GS-15 of the
General Schedule.
(3) Details.--
(A) In general.--Not more than \1/3\ of the
personnel employed by or detailed to the Commission may
be on detail from the Postal Service.
(B) Analysts.--Not more than \1/3\ of the
professional analysts of the Commission staff may be
persons detailed from the Postal Service to the
Commission.
(C) Limitations.--A person may not be detailed from
the Postal Service to the Commission if that person
participated personally and substantially in any matter
within the Postal Service concerning the preparation of
recommendations for closures or consolidations of
postal facilities. No employee of the Postal Service
may--
(i) prepare any report concerning the
effectiveness, fitness, or efficiency of the
performance on the staff of the Commission of
any person detailed from the Postal Service to
that staff;
(ii) review the preparation of such a
report; or
(iii) approve or disapprove such a report.
(4) Detail upon request.--Upon request of the Director, the
head of any Federal department or agency may detail any of the
personnel of that department or agency to the Commission to
assist the Commission in carrying out its duties under this
part.
(5) Comptroller general assistance.--The Comptroller
General of the United States shall provide assistance,
including the detailing of employees, to the Commission in
accordance with an agreement entered into with the Commission.
(6) Limitation on number of staff.--There may not be more
than 15 persons on the staff at any one time.
(i) Other Authority.--
(1) Experts and consultants.--The Commission may procure by
contract, to the extent funds are available, the temporary of
intermittent services of experts or consultants under section
3109 of title 5, United States Code.
(2) Lease of space.--The Commission may lease space and
acquire personal property to the extent funds are available.
(j) Funding.--There are authorized to be appropriated to the
Commission such funds as are necessary to carry out its duties under
this part. Such funds shall remain available until expended.
(k) Review of Postal Service Recommendations.--
(1) In general.--After receiving the recommendations from
the Postal Service under section 302, the Commission shall
conduct public hearings on the recommendations. All testimony
before the Commission at a public hearing conducted under this
paragraph shall be presented under oath. The hearings shall
solicit views from Postal Service customers and employees and
community leaders and government officials in the communities
affected by the Postal Service's recommendations.
(2) Report.--
(A) Transmission.--The Commission shall, no later
than 1 year following receipt of the Postal Service's
recommendations under section 302, transmit to the
President a report containing the Commission's findings
and conclusions based on a review and analysis of the
recommendations made by the Postal Service, together
with the Commission's recommendations for closures and
consolidations.
(B) Changes in recommendations.--In making its
recommendations, the Commission may make changes in any
of the recommendations made by the Postal Service if
the Commission determines that the Postal Service's
recommended closings and consolidations would not allow
them to meet the service standards established by the
Postal Regulatory Commission under section 301.
(3) Explanation.--The Commission shall explain and justify
in its report submitted to the President under paragraph (2)
any recommendation made by the Commission that is different
from the recommendations made by the Postal Service under
section 302. The Commission shall transmit a copy of such
report to the Committee on Governmental Affairs of the Senate,
Committee on Government Reform of the House of Representatives
and the Subcommittees on Transportation, Treasury, and General
Government of the Committees on Appropriations of the Senate
and the House of Representatives on the same date on which it
transmits its recommendations to the President under paragraph
(2).
(4) Provision of information.--After transmitting its
recommendations, the Commission shall promptly provide, upon
request, to any member of Congress information used by the
Commission in making its recommendations.
(5) Comptroller general.--The Comptroller General of the
United States shall--
(A) assist the Commission, to the extent requested,
in the Commission's review and analysis of the
recommendations made by the Postal Service under
section 302; and
(B) not later than 30 days following receipt of the
Postal Service's recommendations, transmit to Congress
and the Commission a detailed analysis of the Postal
Service's recommendations.
(l) Review by the President.--
(1) Report.--The President shall, no later than 14 days
following receipt of the Commission's recommendations, transmit
to the Commission and to Congress a report containing the
President's approval or disapproval of the Commission's
recommendations.
(2) Approval.--If the President approves all the
recommendations, the President shall transmit a copy of such
recommendations to Congress, together with a certification of
such approval.
(3) Disapproval.--If the President disapproves the
recommendations of the Commission, in whole or in part, the
President shall transmit to the Commission and the Congress the
reasons for that disapproval. The Commission shall then
transmit to the President, within 30 days, a revised list of
recommendations.
(4) Approval after revisions.--If the President approves
all of the revised recommendations of the Commission
transmitted to the President under paragraph (3), the President
shall transmit a copy of such revised recommendations to
Congress, together with a certification of such approval.

SEC. 304. CLOSURE AND CONSOLIDATION OF FACILITIES.

(a) In General.--Subject to subsection (b), the Postal Service
shall--
(1) close all postal facilities recommended by the
Commission in such report transmitted to the Congress by the
President under section 303(l);
(2) consolidate all postal facilities recommended for
consolidation by the Commission in such report;
(3) initiate all such closures and consolidations no later
than 1 year after the date on which the President transmits a
report to Congress under section 303(l) containing the
recommendations for such closures or consolidations; and
(4) complete all such closures and consolidations no later
than the end of the 2-year period beginning on the date on
which the President transmits the report under section 303(l)
containing the recommendations for such closures and
consolidations.
(b) Congressional Disapproval.--
(1) In general.--The Postal Service may not carry out any
closure or consolidation recommended by the Commission in a
report transmitted from the President under section 303(l) if a
joint resolution is enacted, in accordance with section 305,
disapproving such recommendations of the Commission before the
earlier of--
(A) the end of the 45-day period beginning on the
date on which the President transmits such report; or
(B) the adjournment of the Congress sine die for
the session during which such report is transmitted.
(2) Days of session.--For purposes of paragraph (1) and
subsections (a) and (c) of section 305, the days on which
either House of Congress is not in session because of an
adjournment of more than 3 days to a day certain shall be
excluded in the computation of a period.

SEC. 305. CONGRESSIONAL CONSIDERATION OF COMMISSION REPORT.

(a) Terms of the Resolution.--For purposes of this title, the term
``joint resolution'' means only a joint resolution which is introduced
within the 10-day period beginning on the date on which the President
transmits the report to the Congress under section 303(l), and--
(1) which does not have a preamble;
(2) the matter after the resolving clause of which is as
follows: ``That Congress disapproves the recommendations of the
Postal Facility Closure and Consolidation Commission as
submitted by the President on ------'', the blank space being
filled in with the appropriate date; and
(3) the title of which is as follows: ``Joint resolution
disapproving the recommendations of the Postal Facility Closure
and Consolidation Commission.''.
(b) Referral.--A resolution described in subsection (a) that is
introduced in the House of Representatives shall be referred to the
Committee on Government Reform of the House of Representatives. A
resolution described in subsection (a) introduced in the Senate shall
be referred to the Committee on Governmental Affairs of the Senate.
(c) Discharge.--If the committee to which a resolution described in
subsection (a) is referred has not reported such resolution (or an
identical resolution) by the end of the 20-day period beginning on the
date on which the President transmits the report to the Congress under
section 303(l), such committee shall be, at the end of such period,
discharged from further consideration of such resolution, and such
resolution shall be placed on the appropriate calendar of the House
involved.
(d) Consideration.--
(1) In general.--On or after the third day after the date
on which the committee to which such a resolution is referred
has reported, or has been discharged (under subsection (c))
from further consideration of, such a resolution, it is in
order (even though a previous motion to the same effect has
been disagreed to) for any Member of the respective House to
move to proceed to the consideration of the resolution. A
Member may make the motion only on the day after the calendar
day on which the Member announces to the House concerned the
Member's intention to make the motion, except that, in the case
of the House of Representatives, the motion may be made without
such prior announcement if the motion is made by direction of
the committee to which the resolution was referred. All points
of order against the resolution (and against consideration of
the resolution) are waived. The motion is highly privileged in
the House of Representatives and is privileged in the Senate
and is not debatable. The motion is not subject to amendment,
or to a motion to postpone, or to a motion to proceed to the
consideration of other business. A motion to reconsider the
vote by which the motion is agreed to or disagreed to shall not
be in order. If a motion to proceed to the consideration of the
resolution is agreed to, the respective House shall immediately
proceed to consideration of the joint resolution without
intervening motion, order, or other business, and the
resolution shall remain the unfinished business of the
respective House until disposed of.
(2) Debate.--Debate on the resolution, and on all debatable
motions and appeals in connection therewith, shall be limited
to not more than 2 hours, which shall be divided equally
between those favoring and those opposing the resolution. An
amendment to the resolution is not in order. A motion further
to limit debate is in order and not debatable. A motion to
postpone, or a motion to proceed to the consideration of other
business, or a motion to recommit the resolution is not in
order. A motion to reconsider the vote by which the resolution
is agreed to or disagreed to is not in order.
(3) Vote on final passage.--Immediately following the
conclusion of the debate on a resolution described in
subsection (a) and a single quorum call at the conclusion of
the debate if requested in accordance with the rules of the
appropriate House, the vote on final passage of the resolution
shall occur.
(4) Appeals.--Appeals from the decisions of the Chair
relating to the application of the rules of the Senate or the
House of Representatives, as the case may be, to the procedure relating
to a resolution described in subsection (a) shall be decided without
debate.
(e) Consideration by Other House.--
(1) In general.--If, before the passage by one House of a
resolution of that House described in subsection (a), that
House receives from the other House a resolution described in
subsection (a), then the following procedures shall apply:
(A) The resolution of the other House shall not be
referred to a committee and may not be considered in
the House receiving it except in the case of final
passage as provided in subparagraph (B)(ii).
(B) With respect to a resolution described in
subsection (a) of the House receiving the resolution--
(i) the procedure in that House shall be
the same as if no resolution had been received
from the other House; but
(ii) the vote on final passage shall be on
the resolution of the other House.
(2) Disposition of a resolution.--Upon disposition of the
resolution received from the other House, it shall no longer be
in order to consider the resolution that originated in the
receiving House.
(f) Rules of the Senate and House.--This section is enacted by
Congress--
(1) as an exercise of the rulemaking power of the Senate
and House of Representatives, respectively, and as such it is
deemed a part of the rules of each House, respectively, but
applicable only with respect to the procedure to be followed in
that House in the case of a resolution described in subsection
(a), and it supersedes other rules only to the extent that it
is inconsistent with such rules; and
(2) with full recognition of the constitutional right of
either House to change the rules (so far as relating to the
procedure of that House) at any time, in the same manner, and
to the same extent as in the case of any other rule of that
House.

SEC. 306. NONAPPEALIBILITY TO THE POSTAL REGULATORY COMMISSION.

The closing or consolidation of any post office or other postal
facility under this title may not be appealed to the Postal Regulatory
Commission under the provisions of title 39, United States Code,
including section 404(b)(5) of that title.

TITLE IV--PROVISIONS RELATING TO FAIR COMPETITION

SEC. 401. POSTAL SERVICE COMPETITIVE PRODUCTS FUND.

(a) Provisions Relating to Postal Service Competitive Products Fund
and Related Matters.--
(1) In general.--Chapter 20 of title 39, United States
Code, is amended by adding at the end the following:
``Sec. 2011. Provisions relating to competitive products
``(a) 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--
``(1) costs attributable to competitive products; and
``(2) all other costs incurred by the Postal Service, to
the extent allocable to competitive products.
For purposes of this subsection, the term `costs attributable' has the
meaning given such term by section 3631.
``(b) There shall be deposited in the Competitive Products Fund,
subject to withdrawal by the Postal Service--
``(1) revenues from competitive products;
``(2) amounts received from obligations issued by the
Postal Service under subsection (e);
``(3) interest and dividends earned on investments of the
Competitive Products Fund; and
``(4) any other receipts of the Postal Service (including
from the sale of assets), to the extent allocable to
competitive products.
``(c) If the Postal Service determines that the moneys of the
Competitive Products Fund are in excess of current needs, it may invest
such amounts as it considers appropriate in--
``(1) obligations of, or obligations guaranteed by, the
Government of the United States; and
``(2) in accordance with regulations which the Secretary of
the Treasury shall prescribe (by not later than 12 months after
the date of enactment of the Postal Accountability and
Enhancement Act), such other obligations or securities as it
considers appropriate, with the exception of obligations of or
securities in any business entity subject to Postal Service
regulations other than those regulations applying to the
mailing public generally.
``(d) The Postal Service may, in its sole discretion, provide that
moneys of the Competitive Products Fund be deposited in a Federal
Reserve bank or a depository for public funds.
``(e)(1) Subject to the limitations specified in section 2005(a),
the Postal Service is authorized to borrow money and to issue and sell
such obligations as it determines necessary to provide for competitive
products and deposit such amounts in the Competitive Products Fund,
except that the Postal Service may pledge only assets related to the
provision of competitive products (as determined under subsection (h)
or, for purposes of any period before accounting practices and
principles under subsection (h) have been established and applied, the
best information available from the Postal Service, including the
audited statements required by section 2008(e)), and the revenues and
receipts from such products, 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 the Postal Service
determines necessary or desirable.
``(2) 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--
``(A) the establishment of reserve, sinking, and other
funds;
``(B) application and use of revenues and receipts of the
Competitive Products Fund;
``(C) stipulations concerning the subsequent issuance of
obligations or the execution of leases or lease purchases
relating to properties of the Postal Service; and
``(D) such other matters as the Postal Service considers
necessary or desirable to enhance the marketability of such
obligations.
``(3) Obligations issued by the Postal Service under this
subsection--
``(A) may not be purchased by the Secretary of the
Treasury;
``(B) shall not be exempt either as to principal or
interest from any taxation now or hereafter imposed by any
State or local taxing authority;
``(C) shall not be obligations of, nor shall payment of the
principal thereof or interest thereon be guaranteed by, the
Government of the United States, and the obligations shall so
plainly state; and
``(D) notwithstanding the provisions of the Federal
Financing Bank Act of 1973 or any other provision of law
(except as specifically provided by reference to this
subparagraph in a law enacted after this subparagraph takes
effect), shall not be eligible for purchase by, commitment to
purchase by, or sale or issuance to, the Federal Financing
Bank.
``(4)(A) This paragraph applies with respect to the period
beginning on the date of the enactment of this paragraph and ending at
the close of the 5-year period which begins on the date on which the
Postal Service makes its submission under subsection (h)(1).
``(B) During the period described in subparagraph (A), nothing in
subparagraph (A) or (D) of paragraph (3) or the last sentence of
section 2006(b) shall, with respect to any obligations sought to be
issued by the Postal Service under this subsection, be considered to
affect such obligations' eligibility for purchase by, commitment to
purchase by, or sale or issuance to, the Federal Financing Bank.
``(C) The Federal Financing Bank may elect to purchase such
obligations under such terms, including rates of interest, as the Bank
and the Postal Service may agree, but at a rate of yield no less than
the prevailing yield on outstanding marketable securities of comparable
maturity issued by entities with the same credit rating as the rating
then most recently obtained by the Postal Service under subparagraph
(D), as determined by the Bank.
``(D) In order to be eligible to borrow under this paragraph, the
Postal Service shall first obtain a credit rating from a nationally
recognized credit rating organization. Such rating--
``(i) shall be determined taking into account only those
assets and activities of the Postal Service which are described
in section 3634(a)(2) (relating to the Postal Service's assumed
taxable income from competitive products); and
``(ii) may, before final rules of the Postal Regulatory
Commission under subsection (h) are issued (or deemed to have
been issued), be based on the best information available from
the Postal Service, including the audited statements required
by section 2008(e).
``(f) The receipts and disbursements of the Competitive Products
Fund shall be accorded the same budgetary treatment as is accorded to
receipts and disbursements of the Postal Service Fund under section
2009a.
``(g) A judgment against the Postal Service or the Government of
the United States (or settlement of a claim) shall, to the extent that
it arises out of activities of the Postal Service in the provision of
competitive products, be paid out of the Competitive Products Fund.
``(h)(1) The Postal Service, in consultation with an independent,
certified public accounting firm and such other advisors as it
considers appropriate, shall develop recommendations regarding--
``(A) the accounting practices and principles that should
be followed by the Postal Service with the objectives of
identifying the capital and operating costs incurred by the
Postal Service in providing competitive products, and
preventing the cross-subsidization of such products by market-
dominant products; and
``(B) the substantive and procedural rules that should be
followed in determining the Postal Service's assumed Federal
income tax on competitive products income for any year (within
the meaning of section 3634).
Such recommendations shall be submitted to the Postal Regulatory
Commission no earlier than 6 months, and no later than 12 months, after
the effective date of this section.
``(2)(A) Upon receiving the recommendations of the Postal Service
under paragraph (1), the Commission shall give interested parties,
including the Postal Service, users of the mails, and an officer of the
Commission who shall be required to represent the interests of the
general public, an opportunity to present their views on those
recommendations through submission of written data, views, or arguments
with or without opportunity for oral presentation, or in such other
manner as the Commission considers appropriate.
``(B) After due consideration of the views and other information
received under subparagraph (A), the Commission shall by rule--
``(i) provide for the establishment and application of the
accounting practices and principles which shall be followed by
the Postal Service;
``(ii) provide for the establishment and application of the
substantive and procedural rules described in paragraph (1)(B);
and
``(iii) provide for the submission by the Postal Service to
the Postal Regulatory Commission of annual and other periodic
reports setting forth such information as the Commission may
require.
Final rules under this subparagraph shall be issued not later than 12
months after the date on which the Postal Service makes its submission
to the Commission under paragraph (1) (or by such later date as the
Commission and the Postal Service may agree to). If final rules are not
issued by the Commission by the deadline under the preceding sentence,
the recommendations submitted by the Postal Service under paragraph (1)
shall be treated as the final rules. The Commission is authorized to
promulgate regulations revising such rules.
``(C) Reports described in subparagraph (B)(iii) shall be submitted
at such time and in such form, and shall include such information, as
the Commission by rule requires. The Commission may, on its own motion
or on request of an interested party, initiate proceedings (to be
conducted in accordance with such rules as the Commission shall
prescribe) to improve the quality, accuracy, or completeness of Postal
Service data under such subparagraph whenever it shall appear that--
``(i) the quality of the information furnished in those
reports has become significantly inaccurate or can be
significantly improved; or
``(ii) such revisions are, in the judgment of the
Commission, otherwise necessitated by the public interest.
``(D) A copy of each report described in subparagraph (B)(iii)
shall also be transmitted by the Postal Service to the Secretary of the
Treasury and the Inspector General of the United States Postal Service.
``(i) The Postal Service shall render an annual report to the
Secretary of the Treasury concerning the operation of the 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 with any other submission that it is required to make to the
Postal Regulatory Commission under section 3652(g).''.
(2) Clerical amendment.--The analysis for chapter 20 of
title 39, United States Code, is amended by adding after the
item relating to section 2010 the following:

``2011. Provisions relating to competitive products.''.
(b) Technical and Conforming Amendments.--
(1) Definition.--Section 2001 of title 39, United States
Code, is amended by striking ``and'' at the end of paragraph
(1), by redesignating paragraph (2) as paragraph (3), and by
inserting after paragraph (1) the following:
``(2) `Competitive Products Fund' means the Postal Service
Competitive Products Fund established by section 2011; and''.
(2) Capital of the postal service.--Section 2002(b) of
title 39, United States Code, is amended by striking ``Fund,''
and inserting ``Fund and the balance in the Competitive
Products Fund,''.
(3) Postal service fund.--
(A) Purposes for which available.--Section 2003(a)
of title 39, United States Code, is amended by striking
``title.'' and inserting ``title (other than any of the
purposes, functions, or powers for which the
Competitive Products Fund is available).''.
(B) Deposits.--Section 2003(b) of title 39, United
States Code, is amended by striking ``There'' and
inserting ``Except as otherwise provided in section
2011, there''.
(4) Relationship between the treasury and the postal
service.--Section 2006 of title 39, United States Code, is
amended--
(A) in subsection (b), by adding at the end the
following: ``Nothing in this chapter shall be
considered to permit or require the Secretary of the
Treasury to purchase any obligations of the Postal
Service other than those issued under section 2005.'';
and
(B) in subsection (c), by inserting ``under section
2005'' before ``shall be obligations''.

SEC. 402. ASSUMED FEDERAL INCOME TAX ON COMPETITIVE PRODUCTS INCOME.

Subchapter II of chapter 36 of title 39, United States Code, as
amended by section 202, is amended by adding at the end the following:
``Sec. 3634. Assumed Federal income tax on competitive products income
``(a) Definitions.--For purposes of this section--
``(1) the term `assumed Federal income tax on competitive
products income' means the net income tax that would be imposed
by chapter 1 of the Internal Revenue Code of 1986 on the Postal
Service's assumed taxable income from competitive products for
the year; and
``(2) the term `assumed taxable income from competitive
products', with respect to a year, refers to the amount
representing what would be the taxable income of a corporation
under the Internal Revenue Code of 1986 for the year, if--
``(A) the only activities of such corporation were
the activities of the Postal Service allocable under
section 2011(h) to competitive products; and
``(B) the only assets held by such corporation were
the assets of the Postal Service allocable under
section 2011(h) to such activities.
``(b) Computation and Transfer Requirements.--The Postal Service
shall, for each year beginning with the year in which occurs the
deadline for the Postal Service's first report to the Postal Regulatory
Commission under section 3652(a)--
``(1) compute its assumed Federal income tax on competitive
products income for such year; and
``(2) transfer from the Competitive Products Fund to the
Postal Service Fund the amount of that assumed tax.
``(c) Deadline for Transfers.--Any transfer required to be made
under this section for a year shall be due on or before the January
15th next occurring after the close of such year.''.

SEC. 403. 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) Except as specifically authorized by law, the Postal Service
may not:
``(1) establish any rule or regulation (including any
standard) the effect of which is to preclude competition or
establish the terms of competition unless the Postal Service
demonstrates that the regulation does not create an unfair
competitive advantage for itself or any entity funded (in whole or in
part) by the Postal Service;
``(2) compel the disclosure, transfer, or licensing of
intellectual property to any third party (such as patents,
copyrights, trademarks, trade secrets, and proprietary
information); or
``(3) obtain information from a person that provides (or
seeks to provide) any product, and then offer any product or
service that uses or is based in whole or in part on such
information, without the consent of the person providing that
information, unless substantially the same information is
obtained (or obtainable) from an independent source or is
otherwise obtained (or obtainable).
``(b) The Postal Regulatory Commission shall prescribe regulations
to carry out this section.
``(c) Any party (including an officer of the Commission
representing the interests of the general public) who believes that the
Postal Service has violated this section may bring a complaint in
accordance with section 3662.''.
(b) Conforming Amendments.--
(1) General powers.--Section 401 of title 39, United States
Code, is amended by striking ``The'' and inserting ``Subject to
the provisions of section 404a, the''.
(2) Specific powers.--Section 404(a) of title 39, United
States Code, is amended by striking ``Without'' and inserting
``Subject to the provisions of section 404a, but otherwise
without''.
(c) Clerical Amendment.--The analysis for chapter 4 of title 39,
United States Code, is amended by inserting after the item relating to
section 404 the following:

``404a. Specific limitations.''.

SEC. 404. SUITS BY AND AGAINST THE POSTAL SERVICE.

(a) In General.--Section 409 of title 39, United States Code, is
amended by striking subsections (d) and (e) and inserting the
following:
``(d)(1) For purposes of the provisions of law cited in paragraphs
(2)(A) and (2)(B), respectively, the Postal Service--
``(A) shall be considered to be a `person', as used in the
provisions of law involved; and
``(B) shall not be immune under any other doctrine of
sovereign immunity from suit in Federal court by any person for
any violation of any of those provisions of law by any officer
or employee of the Postal Service.
``(2) This subsection applies with respect to--
``(A) the Act of July 5, 1946 (commonly referred to as the
`Trademark Act of 1946' (15 U.S.C. 1051 and following)); and
``(B) the provisions of section 5 of the Federal Trade
Commission Act to the extent that such section 5 applies to
unfair or deceptive acts or practices.
``(e)(1) To the extent that the Postal Service, or other Federal
agency acting on behalf of or in concert with the Postal Service,
engages in conduct with respect to any product which is not reserved to
the United States under section 1696 of title 18, the Postal Service or
other Federal agency (as the case may be)--
``(A) shall not be immune under any doctrine of sovereign
immunity from suit in Federal court by any person for any
violation of Federal law by such agency or any officer or
employee thereof; and
``(B) shall be considered to be a person (as defined in
subsection (a) of the first section of the Clayton Act) for
purposes of--
``(i) the antitrust laws (as defined in such
subsection); and
``(ii) section 5 of the Federal Trade Commission
Act to the extent that such section 5 applies to unfair
methods of competition.
For purposes of the preceding sentence, any private carriage of mail
allowable by virtue of section 601 shall not be considered a service
reserved to the United States under section 1696 of title 18.
``(2) No damages, interest on damages, costs or attorney's fees may
be recovered under the antitrust laws (as so defined) from the Postal
Service or any officer or employee thereof acting in an official
capacity for any conduct with respect to a product in the market-
dominant category of mail.
``(3) This subsection shall not apply with respect to conduct
occurring before the date of the enactment of this subsection.
``(f) To the extent that the Postal Service engages in conduct with
respect to the provision of competitive products, it shall be
considered a person for the purposes of the Federal bankruptcy laws.
``(g)(1) Each building constructed or altered by the Postal Service
shall be constructed or altered, to the maximum extent feasible as
determined by the Postal Service, in compliance with one of the
nationally recognized model building codes and with other applicable
nationally recognized codes.
``(2) Each building constructed or altered by the Postal Service
shall be constructed or altered only after consideration of all
requirements (other than procedural requirements) of zoning laws, land
use laws, and applicable environmental laws of a State or subdivision
of a State which would apply to the building if it were not a building
constructed or altered by an establishment of the Government of the
United States.
``(3) For purposes of meeting the requirements of paragraphs (1)
and (2) with respect to a building, the Postal Service shall--
``(A) in preparing plans for the building, consult with
appropriate officials of the State or political subdivision, or
both, in which the building will be located;
``(B) upon request, submit such plans in a timely manner to
such officials for review by such officials for a reasonable
period of time not exceeding 30 days; and
``(C) permit inspection by such officials during
construction or alteration of the building, in accordance with
the customary schedule of inspections for construction or
alteration of buildings in the locality, if such officials
provide to the Postal Service--
``(i) a copy of such schedule before construction
of the building is begun; and
``(ii) reasonable notice of their intention to
conduct any inspection before conducting such
inspection.
Nothing in this subsection shall impose an obligation on any State or
political subdivision to take any action under the preceding sentence,
nor shall anything in this subsection require the Postal Service or any
of its contractors to pay for any action taken by a State or political
subdivision to carry out this subsection (including reviewing plans,
carrying out on-site inspections, issuing building permits, and making
recommendations).
``(4) Appropriate officials of a State or a political subdivision
of a State may make recommendations to the Postal Service concerning
measures necessary to meet the requirements of paragraphs (1) and (2).
Such officials may also make recommendations to the Postal Service
concerning measures which should be taken in the construction or
alteration of the building to take into account local conditions. The
Postal Service shall give due consideration to any such
recommendations.
``(5) In addition to consulting with local and State officials
under paragraph (3), the Postal Service shall establish procedures for
soliciting, assessing, and incorporating local community input on real
property and land use decisions.
``(6) For purposes of this subsection, the term `State' includes
the District of Columbia, the Commonwealth of Puerto Rico, and a
territory or possession of the United States.
``(h)(1) Notwithstanding any other provision of law, legal
representation may not be furnished by the Department of Justice to the
Postal Service in any action, suit, or proceeding arising, in whole or
in part, under any of the following:
``(A) Subsection (d) or (e) of this section.
``(B) Subsection (f) or (g) of section 504 (relating to
administrative subpoenas by the Postal Regulatory Commission).
``(C) Section 3663 (relating to appellate review).
The Postal Service may, by contract or otherwise, employ attorneys to
obtain any legal representation that it is precluded from obtaining
from the Department of Justice under this paragraph.
``(2) In any circumstance not covered by paragraph (1), the
Department of Justice shall, under section 411, furnish the Postal
Service such legal representation as it may require, except that, with
the prior consent of the Attorney General, the Postal Service may, in
any such circumstance, employ attorneys by contract or otherwise to
conduct litigation brought by or against the Postal Service or its
officers or employees in matters affecting the Postal Service.
``(3)(A) In any action, suit, or proceeding in a court of the
United States arising in whole or in part under any of the provisions
of law referred to in subparagraph (B) or (C) of paragraph (1), and to
which the Commission is not otherwise a party, the Commission shall be
permitted to appear as a party on its own motion and as of right.
``(B) The Department of Justice shall, under such terms and
conditions as the Commission and the Attorney General shall consider
appropriate, furnish the Commission such legal representation as it may
require in connection with any such action, suit, or proceeding, except
that, with the prior consent of the Attorney General, the Commission
may employ attorneys by contract or otherwise for that purpose.
``(i) A judgment against the Government of the United States
arising out of activities of the Postal Service shall be paid by the
Postal Service out of any funds available to the Postal Service,
subject to the restriction specified in section 2011(g).''.
(b) Technical Amendment.--Section 409(a) of title 39, United States
Code, is amended by striking ``Except as provided in section 3628 of
this title,'' and inserting ``Except as otherwise provided in this
title,''.

SEC. 405. INTERNATIONAL POSTAL ARRANGEMENTS.

(a) In General.--Section 407 of title 39, United States Code, is
amended to read as follows:
``Sec. 407. International postal arrangements
``(a) It is the policy of the United States--
``(1) to promote and encourage communications between
peoples by efficient operation of international postal services
and other international delivery services for cultural, social,
and economic purposes;
``(2) to promote and encourage unrestricted and undistorted
competition in the provision of international postal services
and other international delivery services, except where
provision of such services by private companies may be
prohibited by law of the United States;
``(3) to promote and encourage a clear distinction between
governmental and operational responsibilities with respect to
the provision of international postal services and other
international delivery services by the Government of the United
States and by intergovernmental organizations of which the
United States is a member; and
``(4) to participate in multilateral and bilateral
agreements with other countries to accomplish these objectives.
``(b)(1) The Secretary of State shall be responsible for
formulation, coordination, and oversight of foreign policy related to
international postal services and other international delivery
services, and shall have the power to conclude treaties, conventions
and amendments related to international postal services and other
international delivery services, except that the Secretary may not
conclude any treaty, convention, or other international agreement
(including those regulating international postal services) if such
treaty, convention, or agreement would, with respect to any competitive
product, grant an undue or unreasonable preference to the Postal
Service, a private provider of international postal or delivery
services, or any other person.
``(2) In carrying out the responsibilities specified in paragraph
(1), the Secretary of State shall exercise primary authority for the
conduct of foreign policy with respect to international postal services
and international delivery services, including the determination of
United States positions and the conduct of United States participation
in negotiations with foreign governments and international bodies. In
exercising this authority, the Secretary--
``(A) shall coordinate with other agencies as appropriate,
and in particular, shall give full consideration to the
authority vested by law or Executive order in the Postal
Regulatory Commission, the Department of Commerce, the
Department of Transportation, and the Office of the United
States Trade Representative in this area;
``(B) shall maintain continuing liaison with other
executive branch agencies concerned with postal and delivery
services;
``(C) shall maintain continuing liaison with the Committee
on Government Reform of the House of Representatives and the
Committee on Governmental Affairs of the Senate;
``(D) shall maintain appropriate liaison with both
representatives of the Postal Service and representatives of
users and private providers of international postal services
and other international delivery services to keep informed of
their interests and problems, and to provide such assistance as
may be needed to ensure that matters of concern are promptly
considered by the Department of State or (if applicable, and to
the extent practicable) other executive branch agencies; and
``(E) shall assist in arranging meetings of such public
sector advisory groups as may be established to advise the
Department of State and other executive branch agencies in
connection with international postal services and international
delivery services.
``(3) The Secretary of State shall establish an advisory committee
(within the meaning of the Federal Advisory Committee Act) to perform
such functions as the Secretary considers appropriate in connection
with carrying out subparagraphs (A) through (D) of paragraph (2).
``(c)(1) Before concluding any treaty, convention, or amendment
that establishes a rate or classification for a product subject to
subchapter I of chapter 36, the Secretary of State shall request the
Postal Regulatory Commission to submit a decision on whether such rate
or classification is consistent with the standards and criteria
established by the Commission under section 3622.
``(2) The Secretary shall ensure that each treaty, convention, or
amendment concluded under subsection (b) is consistent with a decision
of the Commission adopted under paragraph (1), except if, or to the
extent, the Secretary determines, by written order, that considerations
of foreign policy or national security require modification of the
Commission's decision.
``(d) Nothing in this section shall be considered to prevent the
Postal Service from entering into such commercial or operational
contracts related to providing international postal services and other
international delivery services as it deems appropriate, except that--
``(1) any such contract made with an agency of a foreign
government (whether under authority of this subsection or
otherwise) shall be solely contractual in nature and may not
purport to be international law; and
``(2) a copy of each such contract between the Postal
Service and an agency of a foreign government shall be
transmitted to the Secretary of State and the Postal Regulatory
Commission not later than the effective date of such contract.
``(e)(1) With respect to shipments of international mail that are
competitive products within the meaning of section 3631 that are
exported or imported by the Postal Service, the Customs Service and
other appropriate Federal agencies shall apply the customs laws of the
United States and all other laws relating to the importation or
exportation of such shipments in the same manner to both shipments by
the Postal Service and similar shipments by private companies.
``(2) 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.
``(3) In exercising the authority pursuant to subsection (b) to
conclude new treaties, conventions and amendments related to
international postal services and to renegotiate such treaties,
conventions and amendments, the Secretary of State shall, to the
maximum extent practicable, take such measures as are within the
Secretary's control to encourage the governments of other countries to
make available to the Postal Service and private companies a range of
nondiscriminatory customs procedures that will fully meet the needs of
all types of American shippers. The Secretary of State shall consult
with the United States Trade Representative and the Commissioner of
Customs in carrying out this paragraph.
``(4) The provisions of this subsection shall take effect 6 months
after the date of the enactment of this subsection or such earlier date
as the Customs Service may determine in writing.''.
(b) Effective Date.--Notwithstanding any provision of the amendment
made by subsection (a), the authority of the United States Postal
Service to establish the rates of postage or other charges on mail
matter conveyed between the United States and other countries shall
remain available to the Postal Service until--
(1) with respect to market-dominant products, the date as
of which the regulations promulgated under section 3622 of
title 39, United States Code (as amended by section 201(a))
take effect; and
(2) with respect to competitive products, the date as of
which the regulations promulgated under section 3633 of title
39, United States Code (as amended by section 202) take effect.

SEC. 406. CHANGE-OF-ADDRESS ORDER INVOLVING A COMMERCIAL MAIL RECEIVING
AGENCY.

(a) Redesignation.--Chapter 36 of title 39, United States Code (as
in effect before the amendment made by section 204(a)) is amended by
striking the heading for subchapter V and inserting the following:

``SUBCHAPTER VI--GENERAL''.

(b) Change-of-Address Order Involving a Commercial Mail Receiving
Agency.--Subchapter VI of chapter 36 of title 39, United States Code
(as so redesignated by subsection (a)) 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.''.

SEC. 407. EXCEPTION FOR COMPETITIVE PRODUCTS.

(a) In General.--Section 403(c) of title 39, United States Code, is
amended by striking ``user.'' and inserting ``user, except that this
subsection shall not apply to competitive products.''.
(b) Effective Date.--The amendments made by this section shall
apply with respect to services, classifications, rates, and fees, to
the extent provided or applicable (as the case may be) on or after the
date as of which the regulations promulgated under section 3633 of
title 39, United States Code (as amended by section 202) take effect.

TITLE V--GENERAL PROVISIONS

SEC. 501. QUALIFICATION REQUIREMENTS FOR GOVERNORS.

(a) In General.--Section 202(a) of title 39, United States Code, is
amended by striking ``(a)'' and inserting ``(a)(1)'' and by striking
the fourth sentence and inserting the following: ``The Governors shall
represent the public interest generally, and at least 4 of the
Governors shall be chosen solely on the basis of their demonstrated
ability in managing organizations or corporations (in either the public
or private sector) of substantial size; for purposes of this sentence,
an organization or corporation shall be considered to be of substantial
size if it employs at least 50,000 employees. The Governors shall not
be representatives of specific interests using the Postal Service, and
may be removed only for cause.''.
(b) Consultation Requirement.--Section 202(a) of title 39, United
States Code, is amended by adding at the end the following:
``(2) In selecting the individuals described in paragraph (1) for
nomination for appointment to the position of Governor, the President
should consult with the Speaker of the House of Representatives, the
minority leader of the House of Representatives, the majority leader of
the Senate, and the minority leader of the Senate.''.
(c) Restriction.--Section 202(b) 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 Governor the term of which is the first
one scheduled to expire at least 4 months after the date of the
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.''.
(d) Applicability.--The amendment made by subsection (a) shall not
affect the appointment or tenure of any person serving as a Governor of
the Board of Governors of the United States Postal Service pursuant to
an appointment made before the date of the enactment of this Act, or,
except as provided in the amendment made by subsection (c), any
nomination made before that date; however, when any such office becomes
vacant, the appointment of any person to fill that office shall be made
in accordance with such amendment. The requirement set forth in the
fourth sentence of section 202(a)(1) of title 39, United States Code
(as amended by subsection (a)) shall be met beginning not later than 9
years after the date of the enactment of this Act.

SEC. 502. OBLIGATIONS.

(a) Purposes for Which Obligations May Be Issued.--The first
sentence of section 2005(a)(1) of title 39, United States Code, is
amended by striking ``title.'' and inserting ``title, other than any of
the purposes for which the corresponding authority is available to the
Postal Service under section 2011.''.
(b) Increase Relating to Obligations Issued for Capital
Improvements.--The third sentence of section 2005(a)(1) of title 39,
United States Code, is amended by striking ``$2,000,000,000'' and
inserting ``$3,000,000,000''.
(c) Increase in Maximum Outstanding Obligations Allowable.--
Paragraph (2) of section 2005(a) of title 39, United States Code, is
amended--
(1) by striking ``and'' at the end of subparagraph (B); and
(2) by striking subparagraph (C) and inserting the
following:
``(C) $15,000,000,000 for each of fiscal years 1992 through
2002; and
``(D) $25,000,000,000 for fiscal year 2003 and each fiscal
year thereafter.''.
(d) Limitations on Obligations Outstanding.--
(1) In general.--Subsection (a) of section 2005 of title
39, United States Code, is amended by adding at the end the
following:
``(3) For purposes of applying the respective limitations under
this subsection, the aggregate amount of obligations issued by the
Postal Service which are outstanding as of any one time, and the net
increase in the amount of obligations outstanding issued by the Postal
Service for the purpose of capital improvements or for the purpose of
defraying operating expenses of the Postal Service in any fiscal year,
shall be determined by aggregating the relevant obligations issued by
the Postal Service under this section with the relevant obligations
issued by the Postal Service under section 2011.''.
(2) Conforming amendment.--The second sentence of section
2005(a)(1) of title 39, United States Code, is amended by
striking ``any such obligations'' and inserting ``obligations
issued by the Postal Service which may be''.
(e) Amounts Which May Be Pledged, etc.--
(1) Obligations to which provisions apply.--The first
sentence of section 2005(b) of title 39, United States Code, is
amended by striking ``such obligations,'' and inserting
``obligations issued by the Postal Service under this
section,''.
(2) Assets, revenues, and receipts to which provisions
apply.--Subsection (b) of section 2005 of title 39, United
States Code, is amended by striking ``(b)'' and inserting
``(b)(1)'', and by adding at the end the following:
``(2) Notwithstanding any other provision of this section--
``(A) the authority to pledge assets of the Postal Service
under this subsection shall be available only to the extent
that such assets are not related to the provision of
competitive products (as determined under section 2011(h) or,
for purposes of any period before accounting practices and
principles under section 2011(h) have been established and
applied, the best information available from the Postal
Service, including the audited statements required by section
2008(e)); and
``(B) any authority under this subsection relating to the
pledging or other use of revenues or receipts of the Postal
Service shall be available only to the extent that they are not
revenues or receipts of the Competitive Products Fund.''.

SEC. 503. PRIVATE CARRIAGE OF LETTERS.

(a) In General.--Section 601 of title 39, United States Code, is
amended by striking subsection (b) and inserting the following:
``(b) A letter may also be carried out of the mails when--
``(1) the amount paid for the private carriage of the
letter is at least the amount equal to 6 times the rate then
currently charged for the 1st ounce of a single-piece first
class letter;
``(2) the letter weighs at least 12\1/2\ ounces; or
``(3) such carriage is within the scope of services
described by regulations of the United States Postal Service
(as in effect on July 1, 2001) that purport to permit private
carriage by suspension of the operation of this section (as
then in effect).
``(c) Any regulations necessary to carry out this section shall be
promulgated by the Postal Regulatory Commission.''.
(b) Effective Date.--This section shall take effect on the date as
of which the regulations promulgated under section 3633 of title 39,
United States Code (as amended by section 202) take effect.

SEC. 504. 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
and such other functions as may be assigned to the Postal
Service under any provisions of law outside of this title;''.

SEC. 505. NONINTERFERENCE WITH COLLECTIVE BARGAINING AGREEMENTS, ETC.

(a) Noninterference With Collective Bargaining Agreements.--Nothing
in this Act or any amendment made by this Act shall restrict, expand,
or otherwise affect any of the rights, privileges, or benefits of
either employees of or labor organizations representing employees of
the United States Postal Service under chapter 12 of title 39, United
States Code, the National Labor Relations Act, any handbook or manual
affecting employee labor relations within the United States Postal
Service, or any collective bargaining agreement.
(b) Free Mailing Privileges Continue Unchanged.--Nothing in this
Act or any amendment made by this Act shall affect any free mailing
privileges accorded under section 3217 or sections 3403 through 3406 of
title 39, United States Code.

SEC. 506. BONUS AUTHORITY.

Title 39, United States Code, is amended by adding after section
3686 (as added by section 406(b)) the following:
``Sec. 3687. Bonus authority
``(a) In General.--The Postal Service may establish one or more
programs to provide bonuses or other rewards to officers and employees
of the Postal Service to achieve the objectives of this chapter.
``(b) Waiver of Limitation on Compensation.--
``(1) In general.--Under any such program, the Postal
Service may award a bonus or other reward in excess of the
limitation set forth in the last sentence of section 1003(a),
if such program has been approved under paragraph (2).
``(2) Approval process.--If the Postal Service wishes to
have the authority, under any program described in subsection
(a), to award bonuses or other rewards in excess of the
limitation referred to in paragraph (1)--
``(A) the Postal Service shall make an appropriate
request to the Postal Regulatory Commission, in such
form and manner as the Commission requires; and
``(B) the Postal Regulatory Commission shall
approve any such request if it finds that the program
is likely to achieve the objectives of this chapter.
``(3) Revocation authority.--If the Postal Regulatory
Commission finds that a program previously approved under
paragraph (2) is not achieving the objectives of this chapter,
the Commission may revoke or suspend the authority of the
Postal Service to continue such program until such time as
appropriate corrective measures have, in the judgment of the
Commission, been taken.
``(c) Reporting Requirement Relating to Bonuses or Other Rewards.--
Included in its comprehensive statement under section 2401(e) for any
period shall be--
``(1) the name of each person receiving a bonus or other
reward during such period which would not have been allowable
but for the provisions of subsection (a)(2);
``(2) the amount of the bonus or other reward; and
``(3) the amount by which the limitation referred to in
subsection (a)(2) was exceeded as a result of such bonus or
other reward.''.

TITLE VI--ENHANCED REGULATORY COMMISSION

SEC. 601. REORGANIZATION AND MODIFICATION OF CERTAIN PROVISIONS
RELATING TO THE POSTAL REGULATORY COMMISSION.

(a) Transfer and Redesignation.--Title 39, United States Code, is
amended--
(1) by inserting after chapter 4 the following:

``CHAPTER 5--POSTAL REGULATORY COMMISSION

``Sec.
``501. Establishment.
``502. Commissioners.
``503. Rules; regulations; procedures.
``504. Administration.
``Sec. 501. Establishment
``The Postal Regulatory Commission is an independent establishment
of the executive branch of the Government of the United States.
``Sec. 502. Commissioners
``(a) The Postal Regulatory Commission is composed of 5
Commissioners, appointed by the President, by and with the advice and
consent of the Senate. The Commissioners shall be chosen solely on the
basis of their technical qualifications, professional standing, and
demonstrated expertise in economics, accounting, law, or public
administration, and may be removed by the President only for cause.
Each individual appointed to the Commission shall have the
qualifications and expertise necessary to carry out the enhanced
responsibilities accorded Commissioners under the Postal Accountability
and Enhancement Act. Not more than 3 of the Commissioners may be
adherents of the same political party.
``(b) No Commissioner shall be financially interested in any
enterprise in the private sector of the economy engaged in the delivery
of mail matter.
``(c) A Commissioner may continue to serve after the expiration of
his term until his successor has qualified, except that a Commissioner
may not so continue to serve for more than 1 year after the date upon
which his term otherwise would expire under subsection (f).
``(d) One of the Commissioners shall be designated as Chairman by,
and shall serve in the position of Chairman at the pleasure of, the
President.
``(e) The Commissioners shall by majority vote designate a Vice
Chairman of the Commission. The Vice Chairman shall act as Chairman of
the Commission in the absence of the Chairman.
``(f) The Commissioners shall serve for terms of 6 years.'';
(2) by striking, in subchapter I of chapter 36 (as in
effect before the amendment made by section 201(c)), the
heading for such subchapter I and all that follows through
section 3602; and
(3) by redesignating sections 3603 and 3604 as sections 503
and 504, respectively, and transferring such sections to the
end of chapter 5 (as inserted by paragraph (1)).
(b) Applicability.--The amendment made by subsection (a)(1) shall
not affect the appointment or tenure of any person serving as a
Commissioner on the Postal Regulatory Commission (as so redesignated by
section 604) pursuant to an appointment made before the date of the
enactment of this Act or any nomination made before that date, but,
when any such office becomes vacant, the appointment of any person to
fill that office shall be made in accordance with such amendment.
(c) Clerical Amendment.--The analysis for part I of title 39,
United States Code, is amended by inserting after the item relating to
chapter 4 the following:

``5. Postal Regulatory Commission.............                501''

SEC. 602. AUTHORITY FOR POSTAL REGULATORY COMMISSION TO ISSUE
SUBPOENAS.

Section 504 of title 39, United States Code (as so redesignated by
section 601) is amended by adding at the end the following:
``(f)(1) Any Commissioner of the Postal Regulatory Commission, any
administrative law judge appointed by the Commission under section 3105
of title 5, and any employee of the Commission designated by the
Commission may administer oaths, examine witnesses, take depositions,
and receive evidence.
``(2) The Chairman of the Commission, any Commissioner designated
by the Chairman, and any administrative law judge appointed by the
Commission under section 3105 of title 5 may, with respect to any
proceeding conducted by the Commission under this title--
``(A) issue subpoenas requiring the attendance and
presentation of testimony by, or the production of documentary
or other evidence in the possession of, any covered person; and
``(B) order the taking of depositions and responses to
written interrogatories by a covered person.
The written concurrence of a majority of the Commissioners then holding
office shall, with respect to each subpoena under subparagraph (A), be
required in advance of its issuance.
``(3) In the case of contumacy or failure to obey a subpoena issued
under this subsection, upon application by the Commission, the district
court of the United States for the district in which the person to whom
the subpoena is addressed resides or is served may issue an order
requiring such person to appear at any designated place to testify or
produce documentary or other evidence. Any failure to obey the order of
the court may be punished by the court as a contempt thereof.
``(4) For purposes of this subsection, the term `covered person'
means an officer, employee, agent, or contractor of the Postal Service.
``(g)(1) If the Postal Service determines that any document or
other matter it provides to the Postal Regulatory Commission 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 title, contains information which is described in section
410(c) of this title, or exempt from public disclosure under section
552(b) of title 5, the Postal Service shall, at the time of providing
such matter to the Commission, notify the Commission, in writing, of
its determination (and the reasons therefor).
``(2) 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 title. The Commission shall,
by regulations based on rule 26(c) of the Federal Rules of Civil
Procedure, establish procedures for ensuring appropriate
confidentiality for any information furnished under the preceding
sentence.''.

SEC. 603. APPROPRIATIONS FOR THE POSTAL REGULATORY COMMISSION.

(a) Authorization of Appropriations.--Subsection (d) of section 504
of title 39, United States Code (as so redesignated by section 601) is
amended to read as follows:
``(d) There are authorized to be appropriated, out of the Postal
Service Fund, such sums as may be necessary for the Postal Regulatory
Commission. In requesting an appropriation under this subsection for a
fiscal year, the Commission shall prepare and submit to the Congress
under section 2009 a budget of the Commission's expenses, including
expenses for facilities, supplies, compensation, and employee
benefits.''.
(b) Budget Program.--
(1) In general.--The next to last sentence of section 2009
of title 39, United States Code, is amended to read as follows:
``The budget program shall also include separate statements of
the amounts which (1) the Postal Service requests to be
appropriated under subsections (b) and (c) of section 2401, (2)
the Office of Inspector General of the United States Postal
Service requests to be appropriated, out of the Postal Service
Fund, under section 8G(f) of the Inspector General Act of 1978,
and (3) the Postal Regulatory Commission requests to be
appropriated, out of the Postal Service Fund, under section
504(d) of this title.''.
(2) Conforming amendment.--Section 2003(e)(1) of title 39,
United States Code, is amended by striking the first sentence
and inserting the following: ``The Fund shall be available for
the payment of (A) all expenses incurred by the Postal Service
in carrying out its functions as provided by law, subject to
the same limitation as set forth in the parenthetical matter
under subsection (a); (B) all expenses of the Postal Regulatory
Commission, subject to the availability of amounts appropriated
pursuant to section 504(d); and (C) all expenses of the Office
of Inspector General, subject to the availability of amounts
appropriated pursuant to section 8G(f) of the Inspector General
Act of 1978.''.
(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, 2002.
(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. 604. REDESIGNATION OF THE POSTAL RATE COMMISSION.

(a) Amendments to Title 39, United States Code.--Title 39, United
States Code, is amended in sections 404, 503-504 (as so redesignated by
section 601), 1001, 1002, by striking ``Postal Rate Commission'' each
place it appears and inserting ``Postal Regulatory Commission'';
(b) Amendments to Title 5, United States Code.--Title 5, United
States Code, is amended in sections 104(1), 306(f), 2104(b), 3371(3),
5314 (in the item relating to Chairman, Postal Rate Commission), 5315
(in the item relating to Members, Postal Rate Commission),
5514(a)(5)(B), 7342(a)(1)(A), 7511(a)(1)(B)(ii), 8402(c)(1),
8423(b)(1)(B), and 8474(c)(4) by striking ``Postal Rate Commission''
and inserting ``Postal Regulatory Commission''.
(c) Amendment to the Ethics in Government Act of 1978.--Section
101(f)(6) of the Ethics in Government Act of 1978 (5 U.S.C. App.) is
amended by striking ``Postal Rate Commission'' and inserting ``Postal
Regulatory Commission''.
(d) Amendment to the Rehabilitation Act of 1973.--Section 501(b) of
the Rehabilitation Act of 1973 (29 U.S.C. 791(b)) is amended by
striking ``Postal Rate Office'' and inserting ``Postal Regulatory
Commission''.
(e) Amendment to Title 44, United States Code.--Section 3502(5) of
title 44, United States Code, is amended by striking ``Postal Rate
Commission'' and inserting ``Postal Regulatory Commission''.
(f) Other References.--Whenever a reference is made in any
provision of law (other than this Act or a provision of law amended by
this Act), regulation, rule, document, or other record of the United
States to the Postal Rate Commission, such reference shall be
considered a reference to the Postal Regulatory Commission.

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 504 of title 39, United States Code
(as so redesignated by section 601) is amended by adding after
subsection (g) (as added by section 602) the following:
``(h)(1) Notwithstanding any other provision of this title or of
the Inspector General Act of 1978, the authority to select, appoint,
and employ officers and employees of the Office of Inspector General of
the Postal Regulatory Commission, and to obtain any temporary or
intermittent services of experts or consultants (or an organization of
experts or consultants) for such Office, shall reside with the
Inspector General of the Postal Regulatory Commission.
``(2) Except as provided in paragraph (1), any exercise of
authority under this subsection shall, to the extent practicable, be in
conformance with the applicable laws and regulations that govern
selections, appointments and employment, and the obtaining of any such
temporary or intermittent services, within the Postal Regulatory
Commission.''.
(c) Deadline.--No later than 180 days after the date of the
enactment of this Act--
(1) the first Inspector General of the Postal Regulatory
Commission shall be appointed; and
(2) the Office of Inspector General of the Postal
Regulatory Commission shall be established.

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''; and
(C) by inserting ``the Postmaster General;'' after
``Social Security Administration;''; and
(2) in paragraph (2)--
(A) by striking ``or'' before ``the Veterans'
Administration''; and
(B) by inserting ``the United States Postal
Service,'' after ``Social Security Administration,''.
(b) Special Provisions Concerning the United States Postal
Service.--The Inspector General Act of 1978 is amended--
(1) by redesignating sections 8G (as amended by section
701(a)), 8H, and 8I as sections 8H through 8J, respectively;
and
(2) 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 Governors. 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 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, `Board of Governors' and `Board'
each has the meaning given it by section 102 of title 39, United States
Code.''.
(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 the enactment of the Postal Accountability
and Enhancement Act, 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.--Section 2008(d) 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
the 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.--Section 3013 of title 39, United States Code, is
amended by striking ``Postmaster General'' each place it appears and
inserting ``Chief Postal Inspector''.
(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(a) 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''.
(C) Section 8J of such Act (as so redesignated) is
amended--
(i) by striking all after ``8D,'' and before ``of
this Act'' and inserting ``8E, 8F, 8G, or 8I''; and
(ii) by striking ``8G(a)'' and inserting ``8H(a)''.
(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 section 101) 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) Section 1003(b) of such title 39 is amended by striking
``respective'' and inserting ``other''.
(E) Section 1003(c) of such title 39 is amended by striking
``included'' and inserting ``includes''.
(3) Relating to the federal property and administrative
services act of 1949.--Section 304C(b)(1) of the Federal
Property and Administrative Services Act of 1949 (41 U.S.C.
254d(b)(1)) is amended by striking ``8G'' and inserting ``8H''.
(4) Relating to the energy policy act of 1992.--Section
160(a) of the Energy Policy Act of 1992 (42 U.S.C. 8262f(a)) is
amended (in the matter before paragraph (1)) by striking all
that follows ``(5 U.S.C. App.)'' and before ``shall--''.
(f) Effective Date; Eligibility of Prior Inspector General.--
(1) Effective date.--
(A) In general.--Except as provided in subparagraph
(B) or subsection (c), this section and the amendments
made by this section shall take effect on the date of
the enactment of this Act.
(B) Special rules.--
(i) In general.--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, for purposes of the
period beginning on such date of enactment and
ending on January 5, 2004, or, if earlier, the
date on which such individual ceases to serve
in that position, title 39, United States Code,
and the Inspector General Act of 1978 shall be
applied as if the amendments made by this
section had not been enacted, except--
(I) for those made by subsections
(c) and (d); and
(II) as provided in clause (ii).
(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, 2002.
(II) Savings provision.--For
purposes of the fiscal year ending on
September 30, 2002, 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 the enactment of this Act from being
appointed to that position pursuant to the amendments made by
this section.

TITLE VIII--EVALUATIONS

SEC. 801. DEFINITION.

For purposes of this title, the term ``Board of Governors'' has the
meaning given such term by section 102 of title 39, United States Code.

SEC. 802. ASSESSMENTS OF RATEMAKING, CLASSIFICATION, AND OTHER
PROVISIONS.

(a) In General.--The Postal Regulatory Commission shall, at least
every 5 years, submit a report to the President and the Congress
concerning--
(1) the operation of the amendments made by the Postal
Accountability and Enhancement Act; and
(2) recommendations for any legislation or other measures
necessary to improve the effectiveness or efficiency of the
postal laws of the United States.
(b) Postal Service Views.--A report under this section shall be
submitted only after reasonable opportunity has been afforded to the
Postal Service to review such report and to submit written comments
thereon. Any comments timely received from the Postal Service under the
preceding sentence shall be attached to the report submitted under
subsection (a).
(c) Specific Information Required.--The Postal Regulatory
Commission shall include, as part of at least its first report under
subsection (a), the following:
(1) Cost-coverage requirement relating to competitive
products collectively.--With respect to section 3633 of title
39, United States Code (as amended by this Act)--
(A) a description of how such section has operated;
and
(B) recommendations as to whether or not such
section should remain in effect and, if so, any
suggestions as to how it might be improved.
(2) Competitive products fund.--With respect to the Postal
Service Competitive Products Fund (under section 2011 of title
39, United States Code, as amended by section 401), in
consultation with the Secretary of the Treasury--
(A) a description of how such Fund has operated;
(B) any suggestions as to how the operation of such
Fund might be improved; and
(C) a description and assessment of alternative
accounting or financing mechanisms that might be used
to achieve the objectives of such Fund.
(3) Assumed federal income tax on competitive products
fund.--With respect to section 3634 of title 39, United States
Code (as amended by this Act), in consultation with the
Secretary of the Treasury--
(A) a description of how such section has operated;
and
(B) recommendations as to whether or not such
section should remain in effect and, if so, any
suggestions as to how it might be improved.

SEC. 803. STUDY ON EQUAL APPLICATION OF LAWS TO COMPETITIVE PRODUCTS.

(a) In General.--The Federal Trade Commission shall prepare and
submit to the President and Congress, within 1 year after the date of
the 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 (within the meaning
of section 102 of title 39, United States Code, as amended by section
101) and similar products provided by private companies.
(b) Recommendations.--The Federal Trade Commission shall include
such recommendations as it considers appropriate for bringing such
legal discrimination to an end.
(c) Consultation.--In preparing its report, the Federal Trade
Commission shall consult with the United States Postal Service, the
Postal Regulatory Commission, other Federal agencies, mailers, private
companies that provide delivery services, and the general public, and
shall append to such report any written comments received under this
subsection.

SEC. 804. GREATER DIVERSITY IN POSTAL SERVICE EXECUTIVE AND
ADMINISTRATIVE SCHEDULE MANAGEMENT POSITIONS.

(a) Study.--The Board of Governors shall study and, within 1 year
after the date of the enactment of this Act, submit to the President
and Congress a report concerning the extent to which women and
minorities are represented in supervisory and management positions
within the United States Postal Service. Any data included in the
report shall be presented in the aggregate and by pay level.
(b) Performance Evaluations.--The United States Postal Service
shall, as soon as 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.

SEC. 805. CONTRACTS WITH WOMEN, MINORITIES, AND SMALL BUSINESSES.

The Board of Governors shall study and, within 1 year after the
date of the enactment of this Act, submit to the President and the
Congress a report concerning the number and value of contracts and
subcontracts the Postal Service has entered into with women,
minorities, and small businesses.

SEC. 806. RATES FOR PERIODICALS.

(a) In General.--The United States Postal Service, acting jointly
with the Postal Regulatory Commission and the General Accounting
Office, shall study and submit to the President and Congress a report
concerning--
(1) the quality, accuracy, and completeness of the
information used by the Postal Service in determining the
direct and indirect postal costs attributable to periodicals;
and
(2) any opportunities that might exist for improving
efficiencies in the collection, handling, transportation, or
delivery of periodicals by the Postal Service, including any
pricing incentives for mailers that might be appropriate.
(b) Recommendations.--The report shall include recommendations for
any administrative action or legislation that might be appropriate.

SEC. 807. ASSESSMENT OF CERTAIN RATE DEFICIENCIES.

(a) In General.--Within 12 months after the date of the enactment
of this Act, the Office of Inspector General of the United States
Postal Service shall study and submit to the President, the Congress,
and the United States Postal Service, a report concerning the
administration of section 3626(k) of title 39, United States Code.
(b) Specific Requirements.--The study and report shall specifically
address the adequacy and fairness of the process by which assessments
under section 3626(k) of title 39, United States Code, are determined
and appealable, including--
(1) whether the Postal Regulatory Commission or any other
body outside the Postal Service should be assigned a role; and
(2) whether a statute of limitations should be established
for the commencement of proceedings by the Postal Service
thereunder.

TITLE IX--MISCELLANEOUS; TECHNICAL AND CONFORMING AMENDMENTS

SEC. 901. EMPLOYMENT OF POSTAL POLICE OFFICERS.

Section 404 of title 39, United States Code, as amended by sections
102 and 908(f), is further amended by adding at the end the following:
``(f)(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. 902. 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 the
enactment of this Act.

SEC. 903. 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, 2001.

SEC. 904. OBSOLETE PROVISIONS.

(a) Repeal.--
(1) In general.--Chapter 52 of title 39, United States
Code, is repealed.
(2) Conforming amendments.--(A) Section 5005(a) of title
39, United States Code, is amended--
(i) by striking paragraph (1), and by redesignating
paragraphs (2) through (4) as paragraphs (1) through
(3), respectively; and
(ii) in paragraph (3) (as so designated by clause
(i)) by striking ``(as defined in section 5201(6) of
this title)''.
(B) Section 5005(b) of such title 39 is amended by striking
``(a)(4)'' each place it appears and inserting ``(a)(3)''.
(C) Section 5005(c) of such title 39 is amended by striking
``by carrier or person under subsection (a)(1) of this section,
by contract under subsection (a)(4) of this section, or'' and
inserting ``by contract under subsection (a)(3) of this section
or''.
(b) Eliminating Restriction on Length of Contracts.--(1) Section
5005(b)(1) of title 39, United States Code, is amended by striking
``(or where the Postal Service determines that special conditions or
the use of special equipment warrants, not in excess of 6 years)'' and
inserting ``(or such 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''.
(c) Clerical Amendment.--The analysis for part V of title 39,
United States Code, is amended by repealing the item relating to
chapter 52.

SEC. 905. EXPANDED CONTRACTING AUTHORITY.

(a) Amendment to Title 39, United States Code.--
(1) Contracts with air carriers.--Subsection (d) of section
5402 of title 39, United States Code, is amended to read as
follows:
``(d)(1) The Postal Service may contract with any air carrier for
the transportation of mail by aircraft in interstate air
transportation, including the rates therefor, either through
negotiations or competitive bidding.
``(2) Notwithstanding subsections (a) through (c), the Postal
Service may contract with any air carrier or foreign air carrier for
the transportation of mail by aircraft in foreign air transportation,
including the rates therefor, either through negotiations or
competitive bidding, except that--
``(A) any such contract may be awarded only to (i) an air
carrier holding a certificate required by section 41101 of
title 49 or an exemption therefrom issued by the Secretary of
Transportation, (ii) a foreign air carrier holding a permit
required by section 41301 of title 49 or an exemption therefrom
issued by the Secretary of Transportation, or (iii) a
combination of such air carriers or foreign air carriers (or
both);
``(B) mail transported under any such contract shall not be
subject to any duty-to-carry requirement imposed by any
provision of subtitle VII of title 49 or by any certificate,
permit, or corresponding exemption authority issued by the
Secretary of Transportation under that subtitle;
``(C) every contract that the Postal Service awards to a
foreign air carrier under this paragraph shall be subject to
the continuing requirement that air carriers shall be afforded
the same opportunity to carry the mail of the country to and
from which the mail is transported and the flag country of the
foreign air carrier, if different, as the Postal Service has
afforded the foreign air carrier; and
``(D) the Postmaster General shall consult with the
Secretary of Defense concerning actions that affect the
carriage of military mail transported in foreign air
transportation.
``(3) Paragraph (2) shall not be interpreted as suspending or
otherwise diminishing the authority of the Secretary of Transportation
under section 41310 of title 49.''.
(2) Definitions.--Subsection (e) of section 5402 of title
39, United States Code, is amended to read as follows:
``(e) For purposes of this section, the terms `air carrier', `air
transportation', `foreign air carrier', `foreign air transportation',
`interstate air transportation', and `mail' shall have the meanings
given such terms in section 40102 of title 49.''.
(b) Amendments to Title 49, United States Code.--
(1) Authority of postal service to provide for interstate
air transportation of mail.--Section 41901(a) of title 49,
United States Code, is amended to read as follows:
``(a) Title 39.--The United States Postal Service may provide for
the transportation of mail by aircraft in air transportation under this
chapter and under chapter 54 of title 39.''.
(2) Schedules for certain transportation of mail.--Section
41902(b)(1) of title 49, United States Code, is amended by
inserting before the semicolon at the end the following:
``(other than foreign air transportation of mail)''.
(3) Prices for foreign transportation of mail.--Section
41907 of title 49, United States Code, is amended--
(A) by striking ``(a) Limitations.--''; and
(B) by striking subsection (b).
(4) Conforming amendments.--Sections 41107, 41901(b)(1),
41902(a), 41903(a), and 41903(b) of title 49, United States
Code, are amended by striking ``in foreign air transportation
or''.

SEC. 906. INVESTMENTS.

Subsection (c) of section 2003 of title 39, United States Code, is
amended--
(1) by striking ``(c) If'' and inserting ``(c)(1) Except as
provided in paragraph (2), if''; and
(2) by adding at the end the following:
``(2)(A) Nothing in this section shall be considered to authorize
any investment in any obligations or securities of 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.''.

SEC. 907. REPEAL OF SECTION 5403.

(a) In General.--Section 5403 of title 39, United States Code, is
repealed.
(b) Clerical Amendment.--The analysis for chapter 54 of title 39,
United States Code, is amended by repealing the item relating to
section 5403.

SEC. 908. TECHNICAL AND CONFORMING AMENDMENTS.

(a) Reduced Rates.--Section 3626 of title 39, United States Code,
is amended--
(1) in subsection (a)--
(A) by striking all before paragraph (4) and
inserting the following:
``(a)(1) Except as otherwise provided in this section, rates of
postage for a class of mail or kind of mailer under former section
4358, 4452(b), 4452(c), 4554(b), or 4554(c) of this title shall be
established in accordance with section 3622.
``(2) For the purpose of this subsection, the term `regular-rate
category' means any class of mail or kind of mailer, other than a class
or kind referred to in section 2401(c).''; and
(B) by redesignating paragraphs (4) through (7) as
paragraphs (3) through (6), respectively;
(2) in subsection (g) by adding at the end the following:
``(3) For purposes of this section and former section 4358(a)
through (c) of this title, those copies of an issue of a publication
entered within the county in which it is published, but distributed
outside such county on postal carrier routes originating in the county
of publication, shall be treated as if they were distributed within the
county of publication.
``(4)(A) In the case of an issue of a publication, any number of
copies of which are mailed at the rates of postage for a class of mail
or kind of mailer under former section 4358(a) through (c) of this
title, any copies of such issue which are distributed outside the
county of publication (excluding any copies subject to paragraph (3))
shall be subject to rates of postage provided for under this paragraph.
``(B) The rates of postage applicable to mail under this paragraph
shall be established in accordance with section 3622.
``(C) This paragraph shall not apply with respect to an issue of a
publication unless the total paid circulation of such issue outside the
county of publication (not counting recipients of copies subject to
paragraph (3)) is less than 5,000.'';
(3) in subsection (j)(1)(D)--
(A) by striking ``and'' at the end of subclause
(I); and
(B) by adding after subclause (II) the following:
``(III) clause (i) shall not apply to space
advertising in mail matter that otherwise qualifies for
rates under former section 4452(b) or 4452(c) of this
title, and satisfies the content requirements
established by the Postal Service for periodical
publications.''; and
(4) 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).''.
(b) Reimbursement.--Section 3681 of title 39, United States Code,
is amended by striking ``section 3628'' and inserting ``sections 3662
through 3664''.
(c) Size and Weight Limits.--Section 3682 of title 39, United
States Code, is amended to read as follows:
``Sec. 3682. Size and weight limits
``The Postal Service may establish size and weight limitations for
mail matter in the market-dominant category of mail consistent with
regulations the Postal Regulatory Commission may prescribe under
section 3622. The Postal Service may establish size and weight
limitations for mail matter in the competitive category of mail
consistent with its authority under section 3632.''.
(d) Revenue Foregone, etc.--Title 39, United States Code, is
amended--
(1) in section 503 (as so redesignated by section 601) by
striking ``this chapter.'' and inserting ``this title.''; and
(2) in section 2401(d) by inserting ``(as last in effect
before enactment of the Postal Accountability and Enhancement
Act)'' after ``3626(a)'' and after ``3626(a)(3)(B)(ii)''.
(e) Appropriations and Reporting Requirements.--
(1) Appropriations.--Subsection (e) of section 2401 of
title 39, United States Code, is amended--
(A) by striking ``Committee on Post Office and
Civil Service'' each place it appears and inserting
``Committee on Government Reform''; and
(B) by striking ``Not later than March 15 of each
year,'' and inserting ``Each year,''.
(2) Reporting requirements.--Sections 2803(a) and 2804(a)
of title 39, United States Code, are amended by striking
``2401(g)'' and inserting ``2401(e)''.
(f) Authority To Fix Rates and Classes Generally; Requirement
Relating to Letters Sealed Against Inspection.--Section 404 of title
39, United States Code (as amended by section 102) is further amended
by redesignating subsections (b) and (c) as subsections (d) and (e),
respectively, and by inserting after subsection (a) the following:
``(b) Except as otherwise provided, the Governors are authorized to
establish reasonable and equitable classes of mail and reasonable and
equitable rates of postage and fees for postal services in accordance
with the provisions of chapter 36. Postal rates and fees shall be
reasonable and equitable and sufficient to enable the Postal Service,
under best practices of honest, efficient, and economical management,
to maintain and continue the development of postal services of the kind
and quality adapted to the needs of the United States.
``(c) The Postal Service shall maintain one or more classes of mail
for the transmission of letters sealed against inspection. The rate for
each such class shall be uniform throughout the United States, its
territories, and possessions. One such class shall provide for the most
expeditious handling and transportation afforded mail matter by the
Postal Service. No letter of such a class of domestic origin shall be
opened except under authority of a search warrant authorized by law, or
by an officer or employee of the Postal Service for the sole purpose of
determining an address at which the letter can be delivered, or
pursuant to the authorization of the addressee.''.
(g) Limitations.--Section 3684 of title 39, United States Code, is
amended by striking all that follows ``any provision'' and inserting
``of this title.''.
(h) Miscellaneous.--Title 39, United States Code, is amended--
(1) in section 410(b), by moving the left margin of
paragraph (10) 2 ems to the left;
(2) in section 1005(d)(2)--
(A) by striking ``subsection (g) of section
5532,''; and
(B) by striking ``8344,'' and inserting ``8344'';
(3) in the analysis for part III, by striking the item
relating to chapter 28 and inserting the following:

``28. Strategic Planning and Performance Management............ 2801'';
(4) in subsections (h)(2) and (i)(2) of section 3001, by
moving the left margin of subparagraph (C) of each 2 ems to the
left;
(5) in section 3005(a)--
(A) in the matter before paragraph (1), by striking
all that follows ``nonmailable'' and precedes ``(h),''
and inserting ``under section 3001(d),''; and
(B) in the sentence following paragraph (3), by
striking all that follows ``nonmailable'' and precedes
``(h),'' and inserting ``under such section 3001(d),'';
(6) in section 3210(a)(6)(C), by striking the matter after
``if such mass mailing'' and before ``than 60 days'' and
inserting ``is postmarked fewer'';
(7) in section 3626(a), by moving the left margin of
paragraphs (3), (5), and (6) (as so redesignated by subsection
(a)(1)(B), and including each subparagraph thereunder (if any))
2 ems to the left;
(8) by striking the heading for section 3627 and inserting
the following:
``Sec. 3627. Adjusting free rates'';
and
(9) in section 5402(g)(1), by moving the left margin of
subparagraph (D) (including each clause thereunder) 2 ems to
the left.
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