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[House Report 106-734]
[From the U.S. Government Publishing Office]

106th Congress                                            Rept. 106-734
                        HOUSE OF REPRESENTATIVES
 2d Session                                                      Part 1

======================================================================

 
                      SEMIPOSTAL AUTHORIZATION ACT

                                _______
                                

 July 17, 2000.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

    Mr. Burton of Indiana, from the Committee on Government Reform, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 4437]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Government Reform, to whom was referred 
the bill (H.R. 4437) to grant to the United States Postal 
Service the authority to issue semipostals, and for other 
purposes, having considered the same, report favorably thereon 
with an amendment and recommend that the bill as amended do 
pass.

                                CONTENTS

                                                                   Page
  I. Purpose and Summary..............................................3
 II. Background and Need for the Legislation..........................5
III. Legislative Hearings and Committee Actions.......................6
 IV. Committee Hearings and Written Testimony.........................6
  V. Explanation of the Bill..........................................6
 VI. Commitee Oversight Findings......................................9
VII. Budget Analysis and Projections..................................9
VIII.Cost Estimate of the Congressional Budget Office.................9

 IX. Statement of Constitutional Authority...........................11
  X. Committee Recommendation........................................11
 XI. Congressional Accountability Act; P.L. 104-1....................11
XII. Unfunded Mandates Reform Act; P.L. 104-4, Section 423...........12
XIII.Federal Advisory Committee Act (5 U.S.C. App.) Section 5(b).....12

XIV. Changes in Existing Law.........................................12

    The amendment is as follows:
    Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Semipostal Authorization Act''.

SEC. 2. AUTHORITY TO ISSUE SEMIPOSTALS.

  (a) In General.--Chapter 4 of title 39, United States Code, is 
amended by adding at the end the following:

``Sec. 416. Authority to issue semipostals

  ``(a) Definitions.--For purposes of this section--
          ``(1) the term `semipostal' means a postage stamp which is 
        issued and sold by the Postal Service, at a premium, in order 
        to help provide funding for a cause described in subsection 
        (b); and
          ``(2) the term `agency' means an Executive agency within the 
        meaning of section 105 of title 5.
  ``(b) Discretionary Authority.--The Postal Service is hereby 
authorized to issue and sell semipostals under this section in order to 
advance such causes as the Postal Service considers to be in the 
national public interest and appropriate.
  ``(c) Rate of Postage.--The rate of postage on a semipostal issued 
under this section shall be established by the Governors, in accordance 
with such procedures as they shall by regulation prescribe (in lieu of 
the procedures under chapter 36), except that--
          ``(1) the rate established for a semipostal under this 
        section shall be equal to the rate of postage that would 
        otherwise regularly apply, plus a differential of not to exceed 
        25 percent; and
          ``(2) no regular rates of postage or fees for postal services 
        under chapter 36 shall be any different from what they 
        otherwise would have been if this section had not been enacted.
The use of any semipostal issued under this section shall be voluntary 
on the part of postal patrons.
  ``(d) Amounts Becoming Available.--
          ``(1) In general.--The amounts becoming available from the 
        sale of a semipostal under this section shall be transferred to 
        the appropriate agency or agencies under such arrangements as 
        the Postal Service shall by mutual agreement with each such 
        agency establish.
          ``(2) Identification of appropriate causes and agencies.--
        Decisions concerning the identification of appropriate causes 
        and agencies to receive amounts becoming available from the 
        sale of a semipostal under this section shall be made in 
        accordance with applicable regulations under subsection (e).
          ``(3) Determination of amounts.--
                  ``(A) In general.--The amounts becoming available 
                from the sale of a semipostal under this section shall 
                be determined in a manner similar to that provided for 
                under section 414(c)(2) (as in effect on July 1, 2000).
                  ``(B) Administrative costs.--Regulations under 
                subsection (e) shall specifically address how the costs 
                incurred by the Postal Service in carrying out this 
                section shall be computed, recovered, and kept to a 
                minimum.
          ``(4) Other funding not to be affected.--Amounts which have 
        or may become available from the sale of a semipostal under 
        this section shall not be taken into account in any decision 
        relating to the level of appropriations or other Federal 
        funding to be furnished to an agency in any year.
          ``(5) Recovery of costs.--Before transferring to an agency in 
        accordance with paragraph (1) any amounts becoming available 
        from the sale of a semipostal over any period, the Postal 
        Service shall ensure that it has recovered the full costs 
        incurred by the Postal Service in connection with such 
        semipostal through the end of such period.
  ``(e) Regulations.--
          ``(1) In general.--Except as provided in subsection (c), the 
        Postal Service shall prescribe any regulations necessary to 
        carry out this section, including provisions relating to--
                  ``(A) which office or other authority within the 
                Postal Service shall be responsible for making the 
                decisions described in subsection (d)(2);
                  ``(B) what criteria and procedures shall be applied 
                in making those decisions; and
                  ``(C) what limitations shall apply, if any, relating 
                to the issuance of semipostals (such as whether more 
                than 1 semipostal may be offered for sale at the same 
                time).
          ``(2) Notice and comment.--Before any regulation is issued 
        under this section, a copy of the proposed regulation shall be 
        published in the Federal Register, and an opportunity shall be 
        provided for interested parties to present written and, where 
        practicable, oral comment. All regulations necessary to carry 
        out this section shall be issued not later than 30 days before 
        the date on which semipostals are first made available to the 
        public under this section.
  ``(f) Annual Reports.--
          ``(1) In general.--The Postmaster General shall include in 
        each report rendered under section 2402, with respect to any 
        period during any portion of which this section is in effect, 
        information concerning the operation of any program established 
        under this section.
          ``(2) Specific requirement.--If any semipostal ceases to be 
        offered during the period covered by such a report, the 
        information contained in that report shall also include--
                  ``(A) the commencement and termination dates for the 
                sale of such semipostal;
                  ``(B) the total amount that became available from the 
                sale of such semipostal; and
                  ``(C) of that total amount, how much was applied 
                toward administrative costs.
        For each year before the year in which a semipostal ceases to 
        be offered, any report under this subsection shall include, 
        with respect to that semipostal (for the year covered by such 
        report), the information described in subparagraphs (B) and 
        (C).
  ``(g) Termination.--This section shall cease to be effective at the 
end of the 10-year period beginning on the date on which semipostals 
are first made available to the public under this section.''.
  (b) Reports by Agencies.--Each agency that receives any funding in a 
year under section 416 of title 39, United States Code (as amended by 
this section) shall submit a written report under this subsection, with 
respect to such year, to the congressional committees with jurisdiction 
over the United States Postal Service. Each such report shall include--
          (1) the total amount of funding received by such agency under 
        such section 416 during the year;
          (2) an accounting of how any funds received by such agency 
        under such section 416 were allocated or otherwise used by such 
        agency in such year; and
          (3) a description of any significant advances or 
        accomplishments in such year that were funded, in whole or in 
        part, out of amounts received by such agency under such section 
        416.
  (c) Reports by the General Accounting Office.--
          (1) Interim report.--The General Accounting Office shall 
        submit to the President and each House of Congress an interim 
        report on the operation of the program established under 
        section 416 of title 39, United States Code (as amended by this 
        section) not later than 4 years after semipostals are first 
        made available to the public under such section.
          (2) Final report.--The General Accounting Office shall 
        transmit to the President and each House of Congress a final 
        report on the operation of the program established under such 
        section 416, not later than 6 months before the date on which 
        it is scheduled to expire. The final report shall contain a 
        detailed statement of the findings and conclusions of the 
        General Accounting Office, together with any recommendations it 
        considers appropriate.
  (d) Clerical Amendment.--The table of sections for chapter 4 of title 
39, United States Code, is amended by adding at the end the following:

``416. Authority to issue semipostals.''.

  (e) Effective Date.--The program under section 416 of title 39, 
United States Code (as amended by this section) shall be established 
within 6 months after the date of enactment of this Act.

SEC. 3. EXTENSION OF AUTHORITY TO ISSUE SEMIPOSTALS FOR BREAST CANCER 
                    RESEARCH.

  (a) In General.--Section 414(g) of title 39, United States Code, is 
amended to read as follows:
  ``(g) This section shall cease to be effective after July 29, 2002, 
or the end of the 2-year period beginning on the date of enactment of 
the Semipostal Authorization Act, whichever is later.''.
  (b) Reporting Requirement.--No later than 3 months and no earlier 
than 6 months before the date as of which section 414 of title 39, 
United States Code (as amended by this section) is scheduled to expire, 
the Comptroller General of the United States shall submit to the 
Congress a report on the operation of such section. Such report shall 
be in addition to the report required by section 2(b) of Public Law 
105-41, and shall address at least the same matters as were required to 
be included in that earlier report.

                         I. Purpose and Summary

    As originally introduced, H.R. 4437 grants authority to the 
Postal Service to issue special stamps to help provide funding 
for a particular area of medical research. It specifies that 
the Board of Governors, according to procedures, set the rates 
of postage for the semipostals that must be equal to the rate 
of postage that would normally apply, plus the addition of a 
differential, not to exceed 25 percent. The legislation also 
extends the Breast Cancer Research Stamp, which was authorized 
in 1997 and first went on sale in July 1998, for an additional 
two years. The purpose of the legislation is to raise money for 
worthy causes by active participation of postal patrons on a 
voluntary basis.
    H.R. 4437 as amended by the substitute agreed to by the 
Committee on Government Reform on June 29, 2000, authorizes the 
Postal Service to issue and sell semipostal stamps, expanding 
the scope from purely areas of medical research, that would 
advance causes that the Postal Service considers to be in the 
national public interest and appropriate. Additionally, the 
amended bill specifies that the Postal Service shall ensure 
that it has recovered the full costs incurred in connection 
with the production of a semipostal before funds are made 
available to an agency for any specific period.
    The bill states that the amounts raised by the sale of a 
semipostal will be conveyed to the appropriate executive agency 
or agencies under mutual arrangement of the Postal Service and 
the agency.
    The Postal Service will identify which office or authority 
within the Service would be responsible for determining the 
appropriate causes to benefit from the sale and issuance of a 
semipostal. That responsibility would include the criteria and 
procedure in making those decisions and limitations in issuing 
semipostal (such as whether more than one semipostal may be 
offered for sale at the same time).
    A copy of the proposed regulations must be published in the 
Federal Register prior to issuance. This would give interested 
parties an opportunity to provide comment. Regulations are to 
be issued no later than 30 days prior to the issuance to the 
public of the first semipostal. The regulations would 
specifically address how the cost incurred by the Postal 
Service shall be computed, recovered, and kept to a minimum. 
Appropriations to an agency will not be affected in any year 
because of amounts that may be received by the agency because 
of funds from semipostals.
    The Postmaster General must issue an annual report which 
includes certain elements, including information regarding the 
commencement and termination dates of the sale of each 
semipostal; the total amount available from the sale of the 
semipostal and the total amount applied to administrative 
costs.
    The authority to issue semipostals by the Postal Service 
will terminate at the end of the 10-year period beginning on 
the date on which these special postage stamps are first made 
available to the public (this does not include the already 
existing breast cancer research stamp or its extension).
    Each agency that receives any funding from the sale of a 
semipostal is required to submit a report to the congressional 
committees with jurisdiction over the United States Postal 
Service. The report should include information regarding the 
total amount of funding received by the agency during that 
year, an accounting of how the funds were used by the agency, 
and a description of any significant advances or 
accomplishments that were realized because of the funding.
    Additionally, no later than four years after the semipostal 
is first made available to the public, the General Accounting 
Office (GAO) is required to submit an interim report to the 
President and each House of Congress regarding the operation of 
the program. The GAO will prepare a final report for the same 
recipients no later than six months before the date on which 
the program is scheduled to expire. This report will contain 
detailed statements of the findings and conclusions of the GAO 
along with any recommendations it deems appropriate.
    This new semipostal legislation is to be established six 
months after the date of enactment.
    Section 3, which extends the authority to issue semipostal 
for breast cancer research, is based on a bill introduced by 
Representative Bass extending the existing Breast Cancer 
Research Stamp for an additional two-year period. The 
Comptroller General of the United States will submit a report 
to the Congress on the operation of program no later than 3 
months and no earlier than 6 months before the date that this 
section is due to expire, and would contain the same 
information as required in Public Law 105-41 which first 
authorized the Breast Cancer Research Stamp.
    The availability to participate in the Breast Cancer 
Research has been well accepted by the American public. The 
total number of stamps sold by June 16, 2000 was 214 million. 
These sales have raised more than $15 million for breast cancer 
research.

              II. Background and Need for the Legislation

    The Stamp Out Breast Cancer Act, Public Law 105-41, August 
13, 1997, was the first semipostal issued by the Postal 
Service, though this method of raising funds for a designated 
beneficiary has been used in varying degrees of success by 
foreign postal administrations since 1897 when money was raised 
in Australia for a tuberculosis medical facility in Sydney. 
Because the success of the Breast Cancer Research Stamp has 
been significant, Members of Congress have introduced more than 
14 bills for the issuance of semipostals to raise funds for (1) 
AIDS research and education, (2) Alzheimer's disease research, 
(3) diabetes research, (4) domestic violence programs, (5) 
emergency food relief within the United States, (6) highway-
rail crossing safety, (7) organ and tissue donation awareness, 
(8) prostate cancer research; (9) American Battle Monuments 
commission funding, and (10) World War II Memorial funding. Not 
all of the legislation deals with medical research. It was 
clear that if the Postal Service was authorized to issue 
semipostals dealing with only medical research, there would be 
countless other worthy causes which would be suggested for 
subjects for semipostals for enactment by Congress. The bill, 
therefore, gives the Postal Service the authority to design a 
fair process by which to offer specially priced semipostal 
stamps for voluntary purchase by the public as long as they are 
of public interest and appropriate. This process takes the 
legislative branch out of the process of issuing semipostal 
stamps in the same spirit that commemorative stamps are the 
purview of the Postal Service.

            III. Legislative Hearings and Committee Actions

    H.R. 4437 was introduced on May 11, 2000 sponsored by Mr. 
McHugh and originally cosponsored by Mr. Fattah, Chairman and 
Ranking Minority Member of the Subcommittee on the Postal 
Service, respectively. The bill was referred to the Committee 
on Government Reform, the Committee on Commerce, and Armed 
Services, for a period to be subsequently determined by the 
Speaker, in each case for consideration of such provisions as 
fall within the jurisdiction of the committee concerned. On May 
17, the Committees on Government Reform and Commerce referred 
the legislation to the following subcommittees: Subcommittee on 
the Postal Service, Subcommittee on Health and Environment. On 
June 28, the Subcommittee on the Postal Service considered H.R. 
4377 and held a mark-up session on the bill in the nature of a 
substitute as offered by Chairman McHugh and Mr. Fattah. The 
amended bill as forwarded to the Committee on Government Reform 
passed the Committee, as amended, by voice vote on June 29.

              IV. Committee Hearings and Written Testimony

    Both the Senate and House have had several bills introduced 
regarding the extension of the breast cancer research stamp. 
Additionally, several bills have been introduced to raise funds 
through issuance of semipostal stamps. The Senate held a 
hearing on the issuance of semipostal stamps on May 25, 2000. 
The testimony from the Senate hearing held on May 25, 2000, 
along with the GAO Report (GAO/GGD-00-80) were studied in 
preparing the amendment in the nature of a substitute that has 
been accepted by the Committee. Neither the Subcommittee on the 
Postal Service nor the Committee on Government Reform conducted 
hearings on this issue.

                       V. Explanation of the Bill

                      section-by-section analysis

Section 1. Short title

    ``Semipostal Authorization Act''.

Section 2. Authority to issue semipostals

    (a) In General.--This section adds Sec. 416 to Chapter 4 of 
title 39, USC.
            Section 416(a). Definitions
    This amendment defines the term `semipostal' as a postage 
stamp issued and sold by the Postal Service, at a premium, to 
help provide funding as described in Subsection (b); the term 
`agency' means an Executive agency within the meaning of 
section 105 of title 5.
            Section 416(b). Discretionary authority
    This amendment is authorized to issue and sell semipostals 
in order to advance such causes as the Postal Service considers 
being in the national public interest and appropriate.
            Section 416(c). Rate of postage
    The amendment specifies that the Governors, according to 
procedures and regulations that they have established, will set 
the rates of postage for semipostals. The rate established for 
a semipostal must be equal to the rate of postage that would 
normally apply, plus the addition of a differential, not to 
exceed 25 percent. Regular rates of postage or fees will not be 
different from what they would be had this section not been 
enacted. The use of the semipostal by postal patrons is 
voluntary
            Section 416(d). Amounts becoming available
    This section provides that the funds that become available 
from the sale of semipostal stamps will be transferred to the 
appropriate Executive agency (as defined in section 105 of 
title 5) or agencies by mutual agreement of the Postal Service 
and the agency involved. Decisions regarding the identification 
of appropriate causes and agencies to receive money from the 
sale of semipostals will be made according to prescribed 
regulations as enumerated in subsection (e).
    The provisions to determine the amounts to be made 
available from the sale of semipostals under this section is 
provided for in current section 414(c)(2) as was in effect on 
July 1, 2000. That is, the total amount received by the Postal 
Service that it would not have received but for enactment of 
this section, reduced by an amount sufficient to cover 
reasonable costs incurred by the Service in carrying out this 
section. This includes those amounts attributable to the 
printing, sale, and distribution of stamps under this section, 
as determined by the Postal Service.
    Additional language requires that regulations under 
subsection (e) specifically address how the costs incurred by 
the Postal Service in carrying out this section shall be 
computed, recovered, and kept to a minimum.
    This legislation provides that decisions for other funding 
to an agency will not be affected when making appropriations or 
other Federal funding as a result of the money which may or may 
not have become available to the agency from the sale of the 
semipostal. Additionally, it provides that the Postal Service 
will ensure that it has fully recovered the entire cost 
incurred in connection with the semipostal through that period.
            Section 416(e). Regulations
    This provision stipulates that the Postal Service shall set 
regulations necessary to carry out this section, including 
provisions concerning: which office or authority within the 
Postal Service will be responsible for making decisions 
regarding identification of appropriate causes and agencies 
that will receive the benefits of the sale of semipostal 
stamps; what criteria and procedures will be applied in making 
those decisions; and imposing limitations on the number of 
semipostals that may be offered for sale at any given time.
    Prior to the prescribing regulations, a copy of the 
proposed regulations must be published in the Federal Register 
and interested parties must be provided with an opportunity to 
present written comment and, where practicable, oral comment. 
Initial regulations must be approved no later than 30 days 
before the date on which semipostals are first made available 
to the public.
            Section 416(f). Annual reports
    Under section 2402, title 39, the Postmaster General is 
mandated to make an annual report available to the Board of 
Governors and the finalized report must be transmitted to the 
President and the Congress. Section 416(f)(1) further provides 
that the Postmaster General must include in each report 
information concerning the operation of any program established 
under this section. There is a specific requirement that if any 
semipostal issue concludes during the time period covered by a 
report, that information must be included in the report along 
with: the commencement and termination dates of the sale of the 
semipostal; the total amount that became available from the 
sale of the semipostal; and, of the total amount, how much was 
applied toward administrative costs. The same types of 
information must be included in any report that is issued 
annually prior to the end of that semipostal program.
            Section 416(g). Termination
    The provision requires that this section will terminate at 
the end of the 10-year period beginning on the date on which 
semipostals are first made available to the public under this 
section.
    (b) [of Sec. 2] Reports by Agencies.--Each agency that 
receives funds from the sale of semipostal stamps is required 
to submit a written report to the congressional committees with 
jurisdiction over the United States Postal Service. The reports 
will include the amount of funding that was received, an 
accounting of how the allocated funds were utilized and a 
description of any accomplishments or significant advances.
    (c) [of Sec. 2] Reports by the General Accounting Office.--
This amendment requires that the General Accounting Office 
submit to the President and each House of Congress, an interim 
report on the operation of the semipostal program established 
under this act not later than four years after semipostals are 
first made available to the public under the section. A final 
report from the General Accounting Office shall be transmitted 
to the President and each House of Congress on the operation of 
the semipostal program, not later than six months before the 
date it is scheduled to terminate. This report must include a 
detailed statement of the findings and conclusions of the GAO, 
along with any recommendations that the GAO considers 
appropriate.
    (c) Clerical Amendment.--The table of sections for chapter 
4 of title 39 United States Code is amended by adding, 
``Sec. 416. Authority to issue semipostals.''
    (d) Effective Date.--The semipostal program shall be 
established within 6 months after the date of enactment of the 
legislation.

Section 3. Extension of authority to issue semipostals for breast 
        cancer research

    (a) In General.--This subsection amends subsection (g) of 
section 414 of title 39, United States Code to extend the 
existing Stamp Out Breast Cancer Authorization Act until July 
29, 2002 or the end of the 2-year period beginning on the date 
of enactment of the Semipostal Authorization Act, whichever is 
later.
    (b) Reporting Requirement.--The Comptroller General of the 
United States is required to submit a report to Congress on the 
operation of this section no later than three months and no 
earlier than six months before section 414 is due to expire. 
This report will be in addition to the report required by 
Public Law 105-41 and should address at least the same matters 
as were required to be included in that report.

                    VI. Committee Oversight Findings

    Pursuant to rule XIII, clause 3(c)(1), of the Rules of the 
House of Representatives, the results and findings for those 
oversight activities are incorporated in the recommendations 
found in the bill and in this report.

                  VII. Budget Analysis and Projections

    The budget analysis and projections required by Section 
308(a) of the congressional Budget Act of 1974 are contained in 
the estimate of the Congressional Budget Office.

        VIII. Cost Estimate of the Congressional Budget Office,

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, July 12, 2000.
Hon. Dan Burton,
Chairman, Committee on Government Reform,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 4437, the 
Semipostal Authorization Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Mark 
Grabowicz.
            Sincerely,
                                          Barry B. Anderson
                                   (For Dan L. Cripppen, Director).
    Enclosure.

H.R. 4437--Semipostal Authorization Act

    Summary: The Stamp Out Breast Cancer Act (Public Law 105-
41) authorized a special postage stamp for first-class mail. 
The United States Postal Service set the price of this stamp 
(called a semipostal) at 40 cents, 7 cents above the regular 
rate of 33 cents, and the authority to issue this stamp expires 
on July 28, 2000. Amounts above the regular postal rate 
collected from sales of the special stamp are later transferred 
to the National Institutes of Health (NIH) and the Department 
of Defense (DoD) to spend for breast cancer research (after 
accounting for the Postal Service's administrative costs). H.R. 
4437 would extend this program for two years after enactment of 
the bill, or until July 29, 2002, whichever is later. In 
addition, the bill would require the General Accounting Office 
(GAO) to prepare a report on the breast cancer stamp.
    The bill also would authorize the Postal Service to issue 
additional semipostals, involving issues and federal agencies 
that the service would determine, for a ten-year period after 
the first such semipostal is issued. Over the period, the bill 
would direct GAO to prepare two reports on the extended 
semipostal program.
    Over the 2000-2005 period, CBO estimates that enacting H.R. 
4437 would result in a negligible net effect on direct 
spending. In addition, the GAO report would cost about $300,000 
in 2002, assuming the availability of appropriated funds. 
Because enactment of the bill would affect direct spending, 
pay-as-you-go procedures would apply. H.R. 4437 contains no 
intergovernmental or private-sector mandates as defined in the 
Unfunded Mandates Reform Act (UMRA) and would not affect the 
budgets of state, or tribal governments.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 4437 is shown in the following table. 
The costs of this legislation fall within budget functions 050 
(national defense), 370 (commerce and housing credit), and 550 
(health).

----------------------------------------------------------------------------------------------------------------
                                                                  By fiscal year, in millions of dollars--
                                                           -----------------------------------------------------
                                                              2000     2001     2002     2003     2004     2005
----------------------------------------------------------------------------------------------------------------
                                           CHANGES IN DIRECT SPENDING
                                               Off-Budget Effects

Net impact on the Postal Service:
    Estimated budget authority............................       -1       -2        1        2        0        0
    Estimated outlays.....................................       -1       -2        1        2        0        0

                                                On-Budget Effects

Net impact on NIH and DoD:
    Estimated budget authority............................        0       -2       -2        1        2        1
    Estimated outlays.....................................        0       -2       -2        1        2        1

                                                  Total Changes

Estimated budget authority................................       -1       -4       -1        3        2        1
Estimated outlays.........................................       -1       -4       -1        3        2        1
----------------------------------------------------------------------------------------------------------------
Note.--In addition to the effects on direct spending shown in the table, GAO would have to spend about $300,000
  in appropriated funds in 2002 to prepare a report required by the bill.

    Basis of estimate.--For this estimate, CBO assumes that the 
bill will be enacted by August 1, 2000.
    Extension of breast cancer stamp.--Since the program's 
inception in July 1998, sales of these stamps have resulted in 
collections of about $15 million for breast cancer research. 
CBO estimates that enacting H.R. 4437 would increase such 
collections by the Postal Service by about $1 million in fiscal 
year 2000, $5 million in 2001, and $4 million in 2002. After 
covering its administrative costs, the Postal Service would 
transfer the collections to NIH and DoD in April and November 
of each year. Thus, the net impact on the Postal Service over 
the 2000-2005 period would be zero. Spending and receipts of 
the Postal Service are defined as off-budget.
    We estimate that enacting H.R. 4437 would increase NIH and 
DoD collections by $3 million in 2001, $5 million in 2002, and 
$2 million in 2003. Spending of these collections by those two 
agencies would be about $1 million in fiscal year 2001, $3 
million a year in 2002 and 2003, $2 million in 2004, and about 
$1 million in 2005. Thus, the changes in spending would sum to 
the changes in collections but outlays would lag behind 
collections. CBO estimates that the change in net outlays for 
NIH and DoD over the 2000-2005 period would be near zero.
    Additional semipostals.--CBO has no basis for predicting 
the extent to which the Postal Service would issue additional 
semipostals under H.R. 4437. However, the budgetary impact of 
each semipostal would be similar to that of the breast cancer 
stamp. The net budgetary effects of any additional semipostals 
would be near zero because amounts collected above regular 
postal rates would eventually be spent.
    GAO report.--Based on information from GAO, we estimate 
that each of the three reports required by the bill would cost 
about $300,000, assuming appropriation of the necessary 
amounts. We expect the report on the breast cancer stamp to be 
completed in fiscal year 2002 and the other two reports to be 
completed sometime after 2005.
    Pay-as-you-go considerations: The Balanced Budget and 
Emergency Deficit Control Act sets up pay-as-you-go procedures 
for legislation affecting direct spending or receipts. Because 
cash flows of the Postal Service are categorized as off-budget, 
only the transfer and spending of these funds by NIH and DoD 
under H.R. 4437 would be subject to pay-as-you-go procedures. 
Over the 2000-2005 period, such spending would sum to near 
zero. The bill's pay-as-you-go effects are summarized in the 
following table.

----------------------------------------------------------------------------------------------------------------
                                                       By fiscal year, in millions of dollars--
                                    ----------------------------------------------------------------------------
                                      2000   2001   2002   2003   2004   2005   2006   2007   2008   2009   2010
----------------------------------------------------------------------------------------------------------------
Changes in outlays.................      0     -2     -2      1      2      1      0      0      0      0      0
Changes in receipts................                                 Not applicable
----------------------------------------------------------------------------------------------------------------

    Intergovernmental and private-sector impact: H.R. 4437 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would not affect the budgets of state, 
local, or tribal governments.
    Previous CBO estimate: On June 27, 2000, CBO transmitted a 
cost estimate for S. 2386, the Breast Cancer Research Stamp 
Reauthorization Act of 2000, as ordered reported by the Senate 
Committee on Governmental Affairs on June 14, 2000. That 
legislation would extend the Stamp Out Breast Cancer Act for 
two years but would not authorize additional semipostals or 
require GAO reports.
    Estimate prepared by: Federal costs: Mark Grabowicz; Impact 
on State, local, and tribal governments: Susan Sieg; impact on 
the private sector: John Harris.
    Estimate approved by: Robert A. Sunshine, Assistant 
Director for Budget Analysis.

                IX. Statement of Constitutional Authority

    Pursuant to rule XIII, clause 3(d)(1), the Committee finds 
that clause 7 of Article 1, Section 8 of the U.S. Constitution 
grants congress the power to enact this law.

                      X. Committee Recommendations

    On June 29, 2000, a quorum being present, the Committee by 
voice vote ordered the bill favorably reported to the House for 
consideration.

         XI. Congressional Accountability Act; Public Law 104-1

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(B)(3) of the congressional Accountability Act (P.L. 104-1).

    XII. Unfunded Mandates Reform Act; Public Law 104-4, Section 423

    The Committee finds that the legislation does not impose 
Federal mandates within the meaning of section 423 of the 
Unfunded Mandates Reform Act (P.L. 104-4); enactment of H.R. 
4437 should also result in no significant regulatory impact to 
the private sector. The Congressional Budget Office has 
determined that H.R. 4437 contains no intergovernmental or 
private-sector mandates as defined in UMRA and would not affect 
the budgets of state, local, or tribal governments.

   XIII. Federal Advisory Committee Act (5 U.S.C. App.) Section 5(b)

    The Committee finds that the legislation does not establish 
or authorize establishment of an advisory committee within the 
definition of 5 U.S.C. App., Section 5(b).

       XIV. Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

TITLE 39, UNITED STATES CODE

           *       *       *       *       *       *       *

PART I--GENERAL

           *       *       *       *       *       *       *

                      CHAPTER 4--GENERAL AUTHORITY

Sec.
401. General powers of the Postal Service.
     * * * * * * *
416. Authority to issue semipostals.
     * * * * * * *

Sec. 414. Special postage stamps

  (a)  * * *

           *       *       *       *       *       *       *

  [(g) This section shall cease to be effective at the end of 
the 2-year period beginning on the date on which special 
postage stamps under this section are first made available to 
the public.]
  (g) This section shall cease to be effective after July 29, 
2002, or the end of the 2-year period beginning on the date of 
enactment of the Semipostal Authorization Act, whichever is 
later.

           *       *       *       *       *       *       *

Sec. 416. Authority to issue semipostals

  (a) Definitions.--For purposes of this section--
          (1) the term ``semipostal'' means a postage stamp 
        which is issued and sold by the Postal Service, at a 
        premium, in order to help provide funding for a cause 
        described in subsection (b); and
          (2) the term ``agency'' means an Executive agency 
        within the meaning of section 105 of title 5.
  (b) Discretionary Authority.--The Postal Service is hereby 
authorized to issue and sell semipostals under this section in 
order to advance such causes as the Postal Service considers to 
be in the national public interest and appropriate.
  (c) Rate of Postage.--The rate of postage on a semipostal 
issued under this section shall be established by the 
Governors, in accordance with such procedures as they shall by 
regulation prescribe (in lieu of the procedures under chapter 
36), except that--
          (1) the rate established for a semipostal under this 
        section shall be equal to the rate of postage that 
        would otherwise regularly apply, plus a differential of 
        not to exceed 25 percent; and
          (2) no regular rates of postage or fees for postal 
        services under chapter 36 shall be any different from 
        what they otherwise would have been if this section had 
        not been enacted.
The use of any semipostal issued under this section shall be 
voluntary on the part of postal patrons.
  (d) Amounts Becoming Available.--
          (1) In general.--The amounts becoming available from 
        the sale of a semipostal under this section shall be 
        transferred to the appropriate agency or agencies under 
        such arrangements as the Postal Service shall by mutual 
        agreement with each such agency establish.
          (2) Identification of appropriate causes and 
        agencies.--Decisions concerning the identification of 
        appropriate causes and agencies to receive amounts 
        becoming available from the sale of a semipostal under 
        this section shall be made in accordance with 
        applicable regulations under subsection (e).
          (3) Determination of amounts.--
                  (A) In general.--The amounts becoming 
                available from the sale of a semipostal under 
                this section shall be determined in a manner 
                similar to that provided for under section 
                414(c)(2) (as in effect on July 1, 2000).
                  (B) Administrative costs.--Regulations under 
                subsection (e) shall specifically address how 
                the costs incurred by the Postal Service in 
                carrying out this section shall be computed, 
                recovered, and kept to a minimum.
          (4) Other funding not to be affected.--Amounts which 
        have or may become available from the sale of a 
        semipostal under this section shall not be taken into 
        account in any decision relating to the level of 
        appropriations or other Federal funding to be furnished 
        to an agency in any year.
          (5) Recovery of costs.--Before transferring to an 
        agency in accordance with paragraph (1) any amounts 
        becoming available from the sale of a semipostal over 
        any period, the Postal Service shall ensure that it has 
        recovered the full costs incurred by the Postal Service 
        in connection with such semipostal through the end of 
        such period.
  (e) Regulations.--
          (1) In general.--Except as provided in subsection 
        (c), the Postal Service shall prescribe any regulations 
        necessary to carry out this section, including 
        provisions relating to--
                  (A) which office or other authority within 
                the Postal Service shall be responsible for 
                making the decisions described in subsection 
                (d)(2);
                  (B) what criteria and procedures shall be 
                applied in making those decisions; and
                  (C) what limitations shall apply, if any, 
                relating to the issuance of semipostals (such 
                as whether more than 1 semipostal may be 
                offered for sale at the same time).
          (2) Notice and comment.--Before any regulation is 
        issued under this section, a copy of the proposed 
        regulation shall be published in the Federal Register, 
        and an opportunity shall be provided for interested 
        parties to present written and, where practicable, oral 
        comment. All regulations necessary to carry out this 
        section shall be issued not later than 30 days before 
        the date on which semipostals are first made available 
        to the public under this section.
  (f) Annual Reports.--
          (1) In general.--The Postmaster General shall include 
        in each report rendered under section 2402, with 
        respect to any period during any portion of which this 
        section is in effect, information concerning the 
        operation of any program established under this 
        section.
          (2) Specific requirement.--If any semipostal ceases 
        to be offered during the period covered by such a 
        report, the information contained in that report shall 
        also include--
                  (A) the commencement and termination dates 
                for the sale of such semipostal;
                  (B) the total amount that became available 
                from the sale of such semipostal; and
                  (C) of that total amount, how much was 
                applied toward administrative costs.
        For each year before the year in which a semipostal 
        ceases to be offered, any report under this subsection 
        shall include, with respect to that semipostal (for the 
        year covered by such report), the information described 
        in subparagraphs (B) and (C).
  (g) Termination.--This section shall cease to be effective at 
the end of the 10-year period beginning on the date on which 
semipostals are first made available to the public under this 
section.

           *       *       *       *       *       *       *

                        Committee Correspondence

                          House of Representatives,
                                     Committee on Commerce,
                                     Washington, DC, July 10, 2000.
Hon. Dan Burton,
Chairman, Committee on Government Reform,
Washington, DC.
    Dear Dan: I am writing with regard to H.R. 4437, the 
Semipostal Authorization Act. As you know, Rule X of the Rules 
of the House of Representatives grants the Committee on 
Commerce jurisdiction over public health and quarantine, as 
well as biomedical research and development. Accordingly, the 
Committee on Commerce received an additional referral of H.R. 
4437, which includes a section extending the authorization of 
the issuance of the breast cancer research semipostal, and 
providing for an additional report. This legislation was 
ordered reported by the Committee on Government Reform on June 
29, 2000.
    Because of the importance of this legislation, I recognize 
your desire to bring it before the House in an expeditious 
manner, and I will not exercise the Committee's right to its 
referral. By agreeing to waive its consideration of the bill, 
however, the Committee on Commerce does not waive its 
jurisdiction over H.R. 4437. In addition, the Commerce 
Committee reserves its authority to seek conferees on any 
provisions of the bill that are within its jurisdiction during 
any House-Senate conference that may be convened on this 
legislation. I ask for your commitment to support any request 
by the Commerce Committee for conferees on H.R. 4437 or similar 
legislation.
    I request that you include this letter and your response in 
your committee report on the bill and as part of the Record 
during consideration of the legislation on the House floor.
    Thank you for your attention to these matters.
            Sincerely,
                                              Tom Bliley, Chairman.
                                ------                                

                          House of Representatives,
                            Committee on Government Reform,
                                     Washington, DC, July 10, 2000.
Hon. Tom Bliley,
Chairman, Committee on Commerce,
House of Representatives, Washington, DC.
    Dear Tom: Thank you for your letter regarding your 
committee's jurisdictional interest in H.R. 4437, the 
Semipostal Authorization Act.
    I acknowledge your committee's jurisdiction over this 
legislation and appreciate your cooperation in moving the bill 
to the House floor expeditiously. I agree that your decision to 
forego further action on the bill will not prejudice the 
Commerce Committee with respect to its jurisdictional 
prerogatives on this or similar legislation, and will support 
your request for conferees on those provisions within the 
Committee on Commerce's jurisdiction should they be the subject 
of a House-Senate conference. I will also include a copy of 
your letter and this response in our report on the legislation 
and as part of the Congressional Record when the legislation is 
considered by the House.
    Thank you again for your cooperation.
            Sincerely,
                                              Dan Burton, Chairman.
                                ------                                

                          House of Representatives,
                            Committee on Government Reform,
                                      Washington, DC, July 6, 2000.
Hon. Floyd Spence,
Chairman, Committee on Armed Services,
Washington, DC.
    Dear Chairman Spence: I am writing to request that the 
Committee on Armed Services waive its jurisdiction over H.R. 
4437, as introduced on May 11, 2000. The Committee on Armed 
Services received an additional referral of H.R. 4437.
    This legislation was ordered reported as amended by the 
Committee on Government Reform on June 29, 2000; a copy of the 
Committee-approved legislation is attached for your 
convenience.
    H.R. 4437, as amended, would grant to the United States 
Postal Service the authority to issue and sell semipostal 
stamps that are in the public interest and are appropriate for 
the purpose of raising money for worthy causes as determined by 
the Postal Service. Additionally, the legislation would extend 
the authority to issue and sell the Breast Cancer Research 
Stamp, which is due to expire by the end of July, 2000, for an 
additional two years.
    Because of the importance of this legislation, and in our 
effort to move H.R. 4437, prior to the expiration of the Breast 
Cancer Research Stamp, I request that the Committee on Armed 
Services discharge further consideration of the bill.
    I acknowledge your committee's jurisdiction over this 
legislation and appreciate your cooperation in moving H.R. 4437 
to the House floor expeditiously. If you should decide to 
forego further action on this legislation, it will not 
prejudice the Armed Services Committee with respect to its 
jurisdictional prerogatives on this or similar legislation, and 
I will support a request for conferees on those provisions 
within the Committee on Armed Services' jurisdiction should 
they be the subject of a House-Senate conference. I will also 
include a copy of this letter and your response in our report 
on the legislation and as part of the Congressional Record when 
the House considers the legislation.
    With best wishes and appreciation for your cooperation in 
this matter,
            Sincerely yours,
                                              Dan Burton, Chairman.

                                
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