I

106TH CONGRESS

2D SESSION S. 2686

IN THE HOUSE OF REPRESENTATIVES

OCTOBER 10, 2000

Referred to the Committee on Government Reform

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.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. SPECIAL RATEMAKING PROVISIONS.

2 (a) ESTABLISHMENT OF REGULAR RATES FOR MAIL

3 CLASSES WITH CERTAIN PREFERRED SUBCLASSES.—

4 Section 3622 of title 39, United States Code, is

5 amended—

6 (1) by redesignating subsection (c) as sub7 section (d); and

8 (2) by inserting after subsection (b) the fol9 lowing:

10 ‘‘(c) Regular rates for each class or subclass of mail

11 that includes 1 or more special rate categories for mail

12 under former section 4358 (d) or (e), 4452 (b) or (c), or

13 4554 (b) or (c) of this title shall be established by applying

14 the policies of this title, including the factors of section

15 3622(b) of this title, to the costs attributable to the reg16 ular rate mail in each class or subclass combined with the

17 mail in the corresponding special rate categories author18 ized by former section 4358 (d) or (e), 4452 (b) or (c),

19 or 4554 (b) or (c) of this title.’’.

20 (b) RESIDUAL RULE FOR PREFERRED PERIODICAL

21 MAIL.—Section 3626(a)(3)(A) of title 39, United States

22 Code, is amended to read as follows:

23 ‘‘(3)(A) Except as provided in paragraph (4) or

24 (5), rates of postage for a class of mail or kind of

25 mailer under former section 4358 of this title shall

26 be established in a manner such that the estimated
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1 revenues to be received by the Postal Service from

2 such class of mail or kind of mailer shall be equal

3 to the sum of—

4 ‘‘(i) the estimated costs attributable to

5 such class of mail or kind of mailer; and

6 ‘‘(ii) the product derived by multiplying the

7 estimated costs referred to in clause (i) by the

8 applicable percentage under subparagraph

9 (B).’’.

10 (c) SPECIAL RULE FOR NONPROFIT AND CLASSROOM

11 PERIODICALS.—Section 3626(a)(4) of title 39, United

12 States Code, is amended to read as follows:

13 ‘‘(4)(A) Except as specified in subparagraph

14 (B), rates of postage for a class of mail or kind of

15 mailer under former section 4358 (d) or (e) of this

16 title shall be established so that postage on each

17 mailing of such mail shall be as nearly as practicable

18 5 percent lower than the postage for a corresponding

19 regular-rate category mailing.

20 ‘‘(B) With respect to the postage for the adver21 tising pound portion of any mail matter under

22 former section 4358 (d) or (e) of this title, the 5-

23 percent discount specified in subparagraph (A) shall

24 not apply if the advertising portion exceeds 10 per25 cent of the publication involved.’’.
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1 (d) SPECIAL RULE FOR NONPROFIT STANDARD (A)

2 MAIL.—Section 3626(a) of title 39, United States Code,

3 is amended by adding at the end the following:

4 ‘‘(6) The rates for mail matter under former

5 sections 4452 (b) and (c) of this title shall be estab6 lished as follows:

7 ‘‘(A) The estimated average revenue per

8 piece to be received by the Postal Service from

9 each subclass of mail under former sections

10 4452 (b) and (c) of this title shall be equal, as

11 nearly as practicable, to 60 percent of the esti12 mated average revenue per piece to be received

13 from the most closely corresponding regular14 rate subclass of mail.

15 ‘‘(B) For purposes of subparagraph (A),

16 the estimated average revenue per piece of each

17 regular-rate subclass shall be calculated on the

18 basis of expected volumes and mix of mail for

19 such subclass at current rates in the test year

20 of the proceeding.

21 ‘‘(C) Rate differentials within each sub22 class of mail matter under former sections 4452

23 (b) and (c) shall reflect the policies of this title,

24 including the factors set forth in section

25 3622(b) of this title.’’.
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1 (e) SPECIAL RULE FOR LIBRARY AND EDUCATIONAL

2 MATTER.—Section 3626(a) of title 39, United States

3 Code, as amended by subsection (d) of this section, is

4 amended by adding at the end the following:

5 ‘‘(7) The rates for mail matter under former

6 sections 4554 (b) and (c) of this title shall be estab7 lished so that postage on each mailing of such mail

8 shall be as nearly as practicable 5 percent lower

9 than the postage for a corresponding regular-rate

10 mailing.’’.

11 SEC. 2. TRANSITIONAL AND TECHNICAL PROVISIONS.

12 (a) TRANSITIONAL PROVISION FOR NONPROFIT

13 STANDARD (A) MAIL.—In any proceeding in which rates

14 are to be established under chapter 36 of title 39, United

15 States Code, for mail matter under former sections 4452

16 (b) and (c) of that title, pending as of the date of enact17 ment of section 1 of this Act, the estimated reduction in

18 postal revenue from such mail matter caused by the enact19 ment of section 3626(a)(6)(A) of that title, if any, shall

20 be treated as a reasonably assignable cost of the Postal

21 Service under section 3622(b)(3) of that title.

22 (b) TECHNICAL AMENDMENT.—Section 3626(a)(1)

23 of title 39, United States Code, is amended by striking
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1 ‘‘4454(b), or 4454(c)’’ and inserting ‘‘4554(b), or

2 4554(c)’’.

Passed the Senate October 6 (legislative day, September 22), 2000.

Attest: GARY SISCO,

Secretary.