II

Calendar No. 917

106TH CONGRESS

2D SESSION S. 2686

[Report No. 106–468]

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, Mr. AKAKA, Mr. INOUYE, Mr. LIEBERMAN, Mr.

DURBIN, Mr. LEVIN, Mr. STEVENS, Mr. KOHL, and Mr. CLELAND) introduced the following bill; which was read twice and referred to the Committee on Governmental Affairs

OCTOBER 3 (legislative day, SEPTEMBER 22), 2000

Reported by Mr. THOMPSON, without amendment

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.—
2

•S 2686 RS

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

2 amended—

3 (1) by redesignating subsection (c) as sub4 section (d); and

5 (2) by inserting after subsection (b) the fol6 lowing:

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

8 that includes 1 or more special rate categories for mail

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

10 4554 (b) or (c) of this title shall be established by applying

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

12 3622(b) of this title, to the costs attributable to the reg13 ular rate mail in each class or subclass combined with the

14 mail in the corresponding special rate categories author15 ized by former section 4358 (d) or (e), 4452 (b) or (c),

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

17 (b) RESIDUAL RULE FOR PREFERRED PERIODICAL

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

19 Code, is amended to read as follows:

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

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

22 mailer under former section 4358 of this title shall

23 be established in a manner such that the estimated

24 revenues to be received by the Postal Service from
3

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

2 to the sum of—

3 ‘‘(i) the estimated costs attributable to

4 such class of mail or kind of mailer; and

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

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

7 applicable percentage under subparagraph

8 (B).’’.

9 (c) SPECIAL RULE FOR NONPROFIT AND CLASSROOM

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

11 States Code, is amended to read as follows:

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

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

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

15 title shall be established so that postage on each

16 mailing of such mail shall be as nearly as practicable

17 5 percent lower than the postage for a corresponding

18 regular-rate category mailing.

19 ‘‘(B) With respect to the postage for the adver20 tising pound portion of any mail matter under

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

22 percent discount specified in subparagraph (A) shall

23 not apply if the advertising portion exceeds 10 per24 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

24 ‘‘4454(b), or 4454(c)’’ and inserting ‘‘4554(b), or

25 4554(c)’’.
Calendar No. 917

106TH CONGRESS

2D SESSION S. 2686

[Report No. 106–468]

A BILL

To amend chapter 36 of title 39, United States

Code, to modify rates relating to reduced ratemail matter, and for other purposes.

OCTOBER 3 (legislative day, SEPTEMBER 22), 2000

Reported by Mr. THOMPSON, without amendment