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[106th Congress Public Law 384]
[From the U.S. Government Printing Office]

<DOC>
[DOCID: f:publ384.106]

[[Page 1459]]

                REDUCED RATE MAIL MODIFICATION PROVISIONS

[[Page 114 STAT. 1460]]

Public Law 106-384
106th Congress

                                 An Act

 
  To amend chapter 36 of title 39, United States Code, to modify rates 
          relating to reduced rate mail matter, and for other 
             purposes. <<NOTE: Oct. 27, 2000 -  [S. 2686]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SPECIAL RATEMAKING PROVISIONS.

    (a) Establishment of Regular Rates for Mail Classes With Certain 
Preferred Subclasses.--Section 3622 of title 39, United States Code, is 
amended--
            (1) by redesignating subsection (c) as subsection (d); and
            (2) by inserting after subsection (b) the following:

    ``(c) Regular rates for each class or subclass of mail that includes 
1 or more special rate categories for mail under former section 4358 (d) 
or (e), 4452 (b) or (c), or 4554 (b) or (c) of this title shall be 
established by applying the policies of this title, including the 
factors of section 3622(b) of this title, to the costs attributable to 
the regular rate mail in each class or subclass combined with the mail 
in the corresponding special rate categories authorized by former 
section 4358 (d) or (e), 4452 (b) or (c), or 4554 (b) or (c) of this 
title.''.
    (b) Residual Rule for Preferred Periodical Mail.--Section 
3626(a)(3)(A) of title 39, United States Code, is amended to read as 
follows:
            ``(3)(A) Except as provided in paragraph (4) or (5), rates 
        of postage for a class of mail or kind of mailer under former 
        section 4358 of this title shall be established in a manner such 
        that the estimated revenues to be received by the Postal Service 
        from such class of mail or kind of mailer shall be equal to the 
        sum of--
                    ``(i) the estimated costs attributable to such class 
                of mail or kind of mailer; and
                    ``(ii) the product derived by multiplying the 
                estimated costs referred to in clause (i) by the 
                applicable percentage under subparagraph (B).''.

    (c) Special Rule for Nonprofit and Classroom Periodicals.--Section 
3626(a)(4) of title 39, United States Code, is amended to read as 
follows:
            ``(4)(A) Except as specified in subparagraph (B), rates of 
        postage for a class of mail or kind of mailer under former 
        section 4358 (d) or (e) of this title shall be established so 
        that postage on each mailing of such mail shall be as nearly as 
        practicable 5 percent lower than the postage for a corresponding 
        regular-rate category mailing.

[[Page 114 STAT. 1461]]

            ``(B) With respect to the postage for the advertising pound 
        portion of any mail matter under former section 4358 (d) or (e) 
        of this title, the 5-percent discount specified in subparagraph 
        (A) shall not apply if the advertising portion exceeds 10 
        percent of the publication involved.''.

    (d) Special Rule for Nonprofit Standard (A) Mail.--Section 3626(a) 
of title 39, United States Code, is amended by adding at the end the 
following:
            ``(6) The rates for mail matter under former sections 4452 
        (b) and (c) of this title shall be established as follows:
                    ``(A) The estimated average revenue per piece to be 
                received by the Postal Service from each subclass of 
                mail under former sections 4452 (b) and (c) of this 
                title shall be equal, as nearly as practicable, to 60 
                percent of the estimated average revenue per piece to be 
                received from the most closely corresponding regular-
                rate subclass of mail.
                    ``(B) For purposes of subparagraph (A), the 
                estimated average revenue per piece of each regular-rate 
                subclass shall be calculated on the basis of expected 
                volumes and mix of mail for such subclass at current 
                rates in the test year of the proceeding.
                    ``(C) Rate differentials within each subclass of 
                mail matter under former sections 4452 (b) and (c) shall 
                reflect the policies of this title, including the 
                factors set forth in section 3622(b) of this title.''.

    (e) Special Rule for Library and Educational Matter.--Section 
3626(a) of title 39, United States Code, as amended by subsection (d) of 
this section, is amended by adding at the end the following:
            ``(7) The rates for mail matter under former sections 4554 
        (b) and (c) of this title shall be established so that postage 
        on each mailing of such mail shall be as nearly as practicable 5 
        percent lower than the postage for a corresponding regular-rate 
        mailing.''.

SEC. 2. <<NOTE: 39 USC 3622 note.>> TRANSITIONAL AND TECHNICAL 
            PROVISIONS.

    (a) Transitional Provision for Nonprofit Standard (A) Mail.--In any 
proceeding in which rates are to be established under chapter 36 of 
title 39, United States Code, for mail matter under former sections 4452 
(b) and (c) of that title, pending as of the date of enactment of 
section 1 of this Act, the estimated reduction in postal revenue from 
such mail matter caused by the enactment of section 3626(a)(6)(A) of 
that title, if any, shall be treated as a reasonably assignable cost of 
the Postal Service under section 3622(b)(3) of that title.

[[Page 114 STAT. 1462]]

    (b) Technical Amendment.--Section 3626(a)(1) of title 39, United 
States Code, is amended by striking ``4454(b), or 4454(c)'' and 
inserting ``4554(b), or 4554(c)''.

    Approved October 27, 2000.

LEGISLATIVE HISTORY--S. 2686:
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SENATE REPORTS: No. No. 106-468 (Comm. on Governmental Affairs).
CONGRESSIONAL RECORD, Vol. 146 (2000):
            Oct. 6, considered and passed Senate.
            Oct. 11, considered and passed House.

                                  <all>
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