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[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 2686 Referred in House (RFH)]

  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.

    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.
            ``(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. 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.
    (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)''.

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

            Attest:

                                                    GARY SISCO,

                                                             Secretary.
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