S. 2686

One Hundred Sixth Congress

of the

United States of America

AT THE SECOND SESSION

Begun and held at the City of Washington on Monday,

the twenty-fourth day of January, two thousand

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.

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.
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‘‘(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 regularrate mailing.’’.

SEC. 2. 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.
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(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)’’.

Speaker of the House of Representatives.

Vice President of the United States and

President of the Senate.