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[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 2686 Enrolled Bill (ENR)]

        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.
        ``(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)''.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.
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