II

106TH CONGRESS

2D SESSION S. 2686

To amend chapter 36 of title 39, United States Code, to modify rates

relating to reduced rate mail matter, and for other purposes.

IN THE SENATE OF THE UNITED STATES

JUNE 7 (legislative day, JUNE 6), 2000

Mr. COCHRAN (for himself and Mr. AKAKA) introduced the following bill;

which was read twice and referred to the Committee on Governmental Affairs

A BILL

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,

3 SECTION 1. SPECIAL RATEMAKING PROVISIONS.

4 (a) ESTABLISHMENT OF REGULAR RATES FOR MAIL

5 CLASSES WITH CERTAIN PREFERRED SUBCLASSES.—

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

7 amended—

8 (1) by redesignating subsection (c) as sub9 section (d); and
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1 (2) by inserting after subsection (b) the fol2 lowing:

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

4 that includes 1 or more special rate categories for mail

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

6 4554 (b) or (c) of this title shall be established by applying

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

8 3622(b) of this title, to the costs attributable to the reg9 ular rate mail in each class or subclass combined with the

10 mail in the corresponding special rate categories author11 ized by former section 4358 (d) or (e), 4452 (b) or (c),

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

13 (b) RESIDUAL RULE FOR PREFERRED PERIODICAL

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

15 Code, is amended to read as follows:

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

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

18 mailer under former section 4358 of this title shall

19 be established in a manner such that the estimated

20 revenues to be received by the Postal Service from

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

22 to the sum of—

23 ‘‘(i) the estimated costs attributable to

24 such class of mail or kind of mailer; and
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1 ‘‘(ii) the product derived by multiplying the

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

3 applicable percentage under subparagraph

4 (B).’’.

5 (c) SPECIAL RULE FOR NONPROFIT AND CLASSROOM

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

7 States Code, is amended to read as follows:

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

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

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

11 title shall be established so that postage on each

12 mailing of such mail shall be as nearly as practicable

13 5 percent lower than the postage for a corresponding

14 regular-rate category mailing.

15 ‘‘(B) With respect to the postage for the adver16 tising pound portion of any mail matter under

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

18 percent discount specified in subparagraph (A) shall

19 not apply if the advertising portion exceeds 10 per20 cent of the publication involved.’’.

21 (d) SPECIAL RULE FOR NONPROFIT STANDARD (A)

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

23 is amended by adding at the end the following:
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1 ‘‘(6) The rates for mail matter under former

2 sections 4452 (b) and (c) of this title shall be estab3 lished as follows:

4 ‘‘(A) The estimated average revenue per

5 piece to be received by the Postal Service from

6 each subclass of mail under former sections

7 4452 (b) and (c) of this title shall be equal, as

8 nearly as practicable, to 60 percent of the esti9 mated average revenue per piece to be received

10 from the most closely corresponding regular11 rate subclass of mail.

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

13 the estimated average revenue per piece of each

14 regular-rate subclass shall be calculated on the

15 basis of expected volumes and mix of mail for

16 such subclass at current rates in the test year

17 of the proceeding.

18 ‘‘(C) Rate differentials within each sub19 class of mail matter under former sections 4452

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

21 including the factors set forth in section

22 3622(b) of this title.’’.

23 (e) SPECIAL RULE FOR LIBRARY AND EDUCATIONAL

24 MATTER.—Section 3626(a) of title 39, United States
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1 Code, as amended by subsection (d) of this section, is

2 amended by adding at the end the following:

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

4 sections 4554 (b) and (c) of this title shall be estab5 lished so that postage on each mailing of such mail

6 shall be as nearly as practicable 5 percent lower

7 than the postage for a corresponding regular-rate

8 mailing.’’.

9 SEC. 2. TRANSITIONAL AND TECHNICAL PROVISIONS.

10 (a) TRANSITIONAL PROVISION FOR NONPROFIT

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

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

13 States Code, for mail matter under former sections 4452

14 (b) and (c) of that title, pending as of the date of enact15 ment of section 1 of this Act, the estimated reduction in

16 postal revenue from such mail matter caused by the enact17 ment of section 3626(a)(6)(A) of that title, if any, shall

18 be treated as a reasonably assignable cost of the Postal

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

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

21 of title 39, United States Code, is amended by striking

22 ‘‘4454(b), or 4454(c)’’ and inserting ‘‘4554(b), or

23 4554(c)’’.

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