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process for engaging policy makers and the pub-
lic in related decisions;
(B) a discussion of what impact any facil-
ity changes may have on the postal workforce
and whether the Postal Service has sufficient
flexibility to make needed workforce changes;
(C) an identification of anticipated costs,
cost savings, and other benefits associated with
the infrastructure rationalization alternatives
discussed in the plan; and
(D) procedures that the Postal Service will
use to—
(i) provide adequate public notice to
communities potentially affected by a pro-
posed rationalization decision;
(ii) make available, upon request, any
data, analyses, or other information consid-
ered by the Postal Service in making the
proposed decision;
(iii) afford affected persons ample op-
portunity to provide input on the proposed
decision; and
(iv) take such comments into account
in making a final decision.
(4) ANNUAL REPORTS.—
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(A) IN GENERAL.—Not later than 90 days
after the end of each fiscal year, the Postal Serv-
ice shall prepare and submit a report to Con-
gress on how postal decisions have impacted or
will impact rationalization plans.
(B) CONTENTS.—Each report under this
paragraph shall include—
(i) an account of actions taken during
the preceding fiscal year to improve the effi-
ciency and effectiveness of its processing,
transportation, and distribution networks
while preserving the timely delivery of post-
al services, including overall estimated costs
and cost savings;
(ii) an account of actions taken to
identify any excess capacity within its
processing, transportation, and distribution
networks and implement savings through
realignment or consolidation of facilities in-
cluding overall estimated costs and cost sav-
ings;
(iii) an estimate of how postal deci-
sions related to mail changes, security, au-
tomation initiatives, worksharing, informa-
tion technology systems, excess capacity,
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consolidating and closing facilities, and
other areas will impact rationalization
plans;
(iv) identification of any statutory or
regulatory obstacles that prevented or will
prevent or hinder the Postal Service from
taking action to realign or consolidate fa-
cilities; and
(v) such additional topics and rec-
ommendations as the Postal Service con-
siders appropriate.
(5) EXISTING EFFORTS.—Effective on the date of
enactment of this Act, the Postal Service may not
close or consolidate any processing or logistics facili-
ties without using procedures for public notice and
input consistent with those described under para-
graph (3)(D).
(d) ALTERNATE RETAIL OPTIONS.—The Postal Service
plan shall include plans to expand and market retail access
to postal services, in addition to post offices, including—
(1) vending machines;
(2) the Internet;
(3) postage meters;
(4) Stamps by Mail;
(5) Postal Service employees on delivery routes;
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(6) retail facilities in which overhead costs are
shared with private businesses and other government
agencies; or
(7) any other nonpost office access channel pro-
viding market retail access to postal services.
(e) REEMPLOYMENT ASSISTANCE AND RETIREMENT
BENEFITS.—The Postal Service plan shall include—
(1) a plan under which reemployment assistance
shall be afforded to employees displaced as a result of
the automation of any of its functions or the closing
and consolidation of any of its facilities; and
(2) a plan, developed in consultation with the
Office of Personnel Management, to offer early retire-
ment benefits.
(f) INSPECTOR GENERAL REPORT.—
(1) IN GENERALBefore submitting the plan under
subsection (a) and each annual report under sub-
section (c) to Congress, the Postal Service shall submit
the plan and each annual report to the Inspector
General of the United States Postal Service in a time-
ly manner to carry out this subsection.
(2) REPORT.—The Inspector General shall pre-
pare a report describing the extent to which the Postal
Service plan and each annual report under subsection
(c)—
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(A) are consistent with the continuing obli-
gations of the Postal Service under title 39,
United States Code;
(B) provide for the Postal Service to meet
the service standards established under section
3691 of title 39, United States Code; and
(C) allow progress toward improving overall
efficiency and effectiveness consistent with the
need to maintain universal postal service at af-
fordable rates.
(g) CONTINUED AUTHORITY.—Nothing in this section
shall be construed to prohibit the Postal Service from imple-
menting any change to its processing, transportation, deliv-
ery, and retail networks under any authority granted to
the Postal Service for those purposes.
TITLE IV—PROVISIONS RELAT-
ING TO FAIR COMPETITION
SEC. 401. POSTAL SERVICE COMPETITIVE PRODUCTS FUND.
(a) PROVISIONS RELATING TO POSTAL SERVICE COM-
PETITIVE PRODUCTS FUND AND RELATED MATTERS.—
(1) IN GENERAL.—Chapter 20 of title 39, United
States Code, is amended by adding at the end the fol-
lowing:
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‘‘§ 2011. Provisions relating to competitive products
‘‘(a)(1) In this subsection, the term ‘costs attributable’
has the meaning given such term by section 3631.
‘‘(2) There is established in the Treasury of the United
States a revolving fund, to be called the Postal Service Com-
petitive Products Fund, which shall be available to the Post-
al Service without fiscal year limitation for the payment
of—
‘‘(A) costs attributable to competitive products;
and
‘‘(B) all other costs incurred by the Postal Serv-
ice, to the extent allocable to competitive products.
‘‘(b) There shall be deposited in the Competitive Prod-
ucts Fund, subject to withdrawal by the Postal Service—
‘‘(1) revenues from competitive products;
‘‘(2) amounts received from obligations issued by
Postal Service under subsection (e);
‘‘(3) interest and dividends earned on invest-
ments of the Competitive Products Fund; and
‘‘(4) any other receipts of the Postal Service (in-
cluding from the sale of assets), to the extent allocable
to competitive products.
‘‘(c) If the Postal Service determines that the moneys
of the Competitive Products Fund are in excess of current
needs, the Postal Service may request the investment of such
amounts as the Postal Service determines advisable by the
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Secretary of the Treasury in obligations of, or obligations
guaranteed by, the Government of the United States, and,
with the approval of the Secretary, in such other obligations
or securities as the Postal Service determines appropriate.
‘‘(d) With the approval of the Secretary of the Treas-
ury, the Postal Service may deposit moneys of the Competi-
tive Products Fund in any Federal Reserve bank, any de-
pository for public funds, or in such other places and in
such manner as the Postal Service and the Secretary may
mutually agree.
‘‘(e)(1)(A) Subject to the limitations specified in sec-
tion 2005(a), the Postal Service is authorized to borrow
money and to issue and sell such obligations as the Postal
Service determines necessary to provide for competitive
products and deposit such amounts in the Competitive
Products Fund.
‘‘(B) Subject to paragraph (5), any borrowings by the
Postal Service under subparagraph (A) shall be supported
and serviced by—
‘‘(i) the revenues and receipts from competitive
products and the assets related to the provision of
competitive products (as determined under subsection
(h)); or
‘‘(ii) for purposes of any period before account-
ing practices and principles under subsection (h) have
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been established and applied, the best information
available from the Postal Service, including the au-
dited statements required by section 2008(e).
‘‘(2) The Postal Service may enter into binding cov-
enants with the holders of such obligations, and with any
trustee under any agreement entered into in connection
with the issuance of such obligations with respect to—
‘‘(A) the establishment of reserve, sinking, and
other funds;
‘‘(B) application and use of revenues and re-
ceipts of the Competitive Products Fund;
‘‘(C) stipulations concerning the subsequent
issuance of obligations or the execution of leases or
lease purchases relating to properties of the Postal
Service; and
‘‘(D) such other matters as the Postal Service,
considers necessary or desirable to enhance the mar-
ketability of such obligations.
‘‘(3) Obligations issued by the Postal Service under
this subsection—
‘‘(A) shall be in such forms and denominations;
‘‘(B) shall be sold at such times and in such
amounts;
‘‘(C) shall mature at such time or times;
‘‘(D) shall be sold at such prices;
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‘‘(E) shall bear such rates of interest;
‘‘(F) may be redeemable before maturity in such
manner, at such times, and at such redemption pre-
miums;
‘‘(G) may be entitled to such relative priorities
of claim on the assets of the Postal Service with re-
spect to principal and interest payments; and
‘‘(H) shall be subject to such other terms and
conditions,
as the Postal Service determines.
‘‘(4) Obligations issued by the Postal Service under
this subsection—
‘‘(A) shall be negotiable or nonnegotiable and
bearer or registered instruments, as specified therein
and in any indenture or covenant relating thereto;
‘‘(B) shall contain a recital that such obligations
are issued under this subsection, and such recital
shall be conclusive evidence of the regularity of the
issuance and sale of such obligations and of their va-
lidity;
‘‘(C) shall be lawful investments and may be ac-
cepted as security for all fiduciary, trust, and public
funds, the investment or deposit of which shall be
under the authority or control of any officer or agen-
cy of the Government of the United States, and the
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Secretary of the Treasury or any other officer or
agency having authority over or control of any such
fiduciary, trust, or public funds, may at any time sell
any of the obligations of the Postal Service acquired
under this section;
‘‘(D) shall not be exempt either as to principal
or interest from any taxation now or hereafter im-
posed by any State or local taxing authority; and
‘‘(E) except as provided in section 2006(c), shall
not be obligations of, nor shall payment of the prin-
cipal thereof or interest thereon be guaranteed by, the
Government of the United States, and the obligations
shall so plainly state.
‘‘(5)(A) Subject to subparagraph (B), the Postal Serv-
ice shall make payments of principal, or interest, or both
on obligations issued under this subsection from—
‘‘(i) revenues and receipts from competitive prod-
ucts and assets related to the provision of competitive
products (as determined under subsection (h)); or
‘‘(ii) for purposes of any period before account-
ing practices and principles under subsection (h) have
been established and applied, the best information
available, including the audited statements required
by section 2008(e).
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‘‘(B) Based on the audited financial statements for the
most recently completed fiscal year, the total assets of the
Competitive Products Fund may not be less than the
amount determined by multiplying—
‘‘(i) the quotient resulting from the total revenue
of the Competitive Products Fund divided by the total
revenue of the Postal Service; and
‘‘(ii) the total assets of the Postal Service.
‘‘(f) The receipts and disbursements of the Competitive
Products Fund shall be accorded the same budgetary treat-
ment as is accorded to receipts and disbursements of the
Postal Service Fund under section 2009a.
‘‘(g) A judgment (or settlement of a claim) against the
Postal Service or the Government of the United States shall
be paid out of the Competitive Products Fund to the extent
that the judgment or claim arises out of activities of the
Postal Service in the provision of competitive products.
‘‘(h)(1)(A) The Secretary of the Treasury, in consulta-
tion with the Postal Service and an independent, certified
public accounting firm and other advisors as the Secretary
considers appropriate, shall develop recommendations
regarding—
‘‘(i) the accounting practices and principles that
should be followed by the Postal Service with the ob-
jectives of—
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‘‘(I) identifying and valuing the assets and
liabilities of the Postal Service associated with
providing competitive products, including the
capital and operating costs incurred by the Post-
al Service in providing such competitive prod-
ucts; and
‘‘(II) subject to subsection (e)(5), preventing
the subsidization of such products by market-
dominant products; and
‘‘(ii) the substantive and procedural rules that
should be followed in determining the assumed Fed-
eral income tax on competitive products income of the
Postal Service for any year (within the meaning of
section 3634).
‘‘(B) Not earlier than 6 months after the date of enact-
ment of this section, and not later than 12 months after
such date, the Secretary of the Treasury shall submit the
recommendations under subparagraph (A) to the Postal
Regulatory Commission.
‘‘(2)(A) Upon receiving the recommendations of the
Secretary of the Treasury under paragraph (1), the Com-
mission shall give interested parties, including the Postal
Service, users of the mails, and an officer of the Commission
who shall be required to represent the interests of the general
public, an opportunity to present their views on those rec-
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ommendations through submission of written data, views,
or arguments with or without opportunity for oral presen-
tation, or in such other manner as the Commission con-
siders appropriate.
‘‘(B)(i) After due consideration of the views and other
information received under subparagraph (A), the Commis-
sion shall by rule—
‘‘(I) provide for the establishment and applica-
tion of the accounting practices and principles which
shall be followed by the Postal Service;
‘‘(II) provide for the establishment and applica-
tion of the substantive and procedural rules described
under paragraph (1)(A)(ii); and
‘‘(III) provide for the submission by the Postal
Service to the Postal Regulatory Commission of an-
nual and other periodic reports setting forth such in-
formation as the Commission may require.
‘‘(ii) Final rules under this subparagraph shall be
issued not later than 12 months after the date on which
recommendations are submitted under paragraph (1) (or
by such later date on which the Commission and the Postal
Service may agree). The Commission may revise such rules.
‘‘(C)(i) 
Reports 
described 
under 
subparagraph
(B)(i)(III) shall be submitted at such time and in such
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form, and shall include such information, as the Commis-
sion by rule requires.
‘‘(ii) The Commission may, on its own motion or on
request of an interested party, initiate proceedings (to be
conducted in accordance with such rules as the Commission
shall prescribe) to improve the quality, accuracy, or com-
pleteness of Postal Service information under subparagraph
(B)(i)(III) whenever it shall appear that—
‘‘(I) the quality of the information furnished in
those reports has become significantly inaccurate or
can be significantly improved; or
‘‘(II) such revisions are, in the judgment of the
Commission, otherwise necessitated by the public in-
terest.
‘‘(D) A copy of each report described under subpara-
graph (B)(i)(III) shall be submitted by the Postal Service
to the Secretary of the Treasury and the Inspector General
of the United States Postal Service.
‘‘(i)(1) The Postal Service shall submit an annual re-
port to the Secretary of the Treasury concerning the oper-
ation of the Competitive Products Fund. The report shall
address such matters as risk limitations, reserve balances,
allocation or distribution of moneys, liquidity require-
ments, and measures to safeguard against losses.
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‘‘(2) A copy of the most recent report submitted under
paragraph (1) shall be included in the annual report sub-
mitted by the Postal Regulatory Commission under section
3652(g).’’.
(2) CLERICAL AMENDMENT.—The table of sec-
tions for chapter 20 of title 39, United States Code,
is amended by adding after the item relating to sec-
tion 2010 the following:
‘‘2011. Provisions relating to competitive products.’’.
(b) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) DEFINITION.—Section 2001 of title 39,
United States Code, is amended by striking ‘‘and’’ at
the end of paragraph (1), by redesignating paragraph
(2) as paragraph (3), and by inserting after para-
graph (1) the following:
‘‘(2) COMPETITIVE PRODUCTS FUND.—The term
‘Competitive Products Fund’ means the Postal Service
Competitive Products Fund established by section
2011; and’’.
(2) CAPITAL OF THE POSTAL SERVICE.—Section
2002(b) of title 39, United States Code, is amended
by striking ‘‘Fund,’’ and inserting ‘‘Fund and the
balance in the Competitive Products Fund,’’.
(3) POSTAL SERVICE FUND.—
(A) PURPOSES FOR WHICH AVAILABLE.—
Section 2003(a) of title 39, United States Code,
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is amended by striking ‘‘title.’’ and inserting
‘‘title (other than any of the purposes, functions,
or powers for which the Competitive Products
Fund is available).’’.
(B) DEPOSITS.—Section 2003(b) of title 39,
United States Code, is amended by striking
‘‘There’’ and inserting ‘‘Except as otherwise pro-
vided in section 2011, there’’.
(4) RELATIONSHIP
BETWEEN
THE
TREASURY
AND THE POSTAL SERVICE.—Section 2006 of title 39,
United States Code, is amended—
(A) in subsection (a), in the first sentence,
by inserting ‘‘or 2011’’ after ‘‘section 2005’’;
(B) in subsection (b)—
(i) in the first sentence, by inserting
‘‘under section 2005’’ before ‘‘in such
amounts’’; and
(ii) in the second sentence, by inserting
‘‘under section 2005’’ before ‘‘in excess of
such amount.’’; and
(C) in subsection (c), by inserting ‘‘or
2011(e)(4)(E)’’ after ‘‘section 2005(d)(5)’’.
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SEC. 402. ASSUMED FEDERAL INCOME TAX ON COMPETI-
TIVE PRODUCTS INCOME.
Subchapter II of chapter 36 of title 39, United States
Code, as amended by section 202, is amended by adding
at the end the following:
‘‘§ 3634. Assumed Federal income tax on competitive
products income
‘‘(a) DEFINITIONS.—For purposes of this section—
‘‘(1) the term ‘assumed Federal income tax on
competitive products income’ means the net income
tax that would be imposed by chapter 1 of the Inter-
nal Revenue Code of 1986 on the Postal Service’s as-
sumed taxable income from competitive products for
the year; and
‘‘(2) the term ‘assumed taxable income from com-
petitive products’, with respect to a year, refers to the
amount representing what would be the taxable in-
come of a corporation under the Internal Revenue
Code of 1986 for the year, if—
‘‘(A) the only activities of such corporation
were the activities of the Postal Service allocable
under section 2011(h) to competitive products;
and
‘‘(B) the only assets held by such corpora-
tion were the assets of the Postal Service allo-
cable under section 2011(h) to such activities.
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‘‘(b) COMPUTATION AND TRANSFER REQUIREMENTS.—
The Postal Service shall, for each year beginning with the
year in which occurs the deadline for the Postal Service’s
first report to the Postal Regulatory Commission under sec-
tion 3652(a)—
‘‘(1) compute its assumed Federal income tax on
competitive products income for such year; and
‘‘(2) transfer from the Competitive Products
Fund to the Postal Service Fund the amount of that
assumed tax.
‘‘(c) DEADLINE FOR TRANSFERS.—Any transfer re-
quired to be made under this section for a year shall be
due on or before the January 15th next occurring after the
close of such year.’’.
SEC. 403. UNFAIR COMPETITION PROHIBITED.
(a) SPECIFIC LIMITATIONS.—Chapter 4 of title 39,
United States Code, is amended by adding after section 404
the following:
‘‘§ 404a. Specific limitations
‘‘(a) Except as specifically authorized by law, the Post-
al Service may not—
‘‘(1) establish any rule or regulation (including
any standard) the effect of which is to preclude com-
petition or establish the terms of competition unless
the Postal Service demonstrates that the regulation
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does not create an unfair competitive advantage for
itself or any entity funded (in whole or in part) by
the Postal Service;
‘‘(2) compel the disclosure, transfer, or licensing
of intellectual property to any third party (such as
patents, copyrights, trademarks, trade secrets, and
proprietary information); or
‘‘(3) obtain information from a person that pro-
vides (or seeks to provide) any product, and then offer
any postal service that uses or is based in whole or
in part on such information, without the consent of
the person providing that information, unless sub-
stantially the same information is obtained (or ob-
tainable) from an independent source or is otherwise
obtained (or obtainable).
‘‘(b) The Postal Regulatory Commission shall prescribe
regulations to carry out this section.
‘‘(c) Any party (including an officer of the Commis-
sion representing the interests of the general public) who
believes that the Postal Service has violated this section may
bring a complaint in accordance with section 3662.’’.
(b) CONFORMING AMENDMENTS.—
(1) GENERAL POWERS.—Section 401 of title 39,
United States Code, is amended by striking ‘‘The’’
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and inserting ‘‘Subject to the provisions of section
404a, the’’.
(2) SPECIFIC POWERS.—Section 404(a) of title
39, United States Code, is amended by striking
‘‘Without’’ and inserting ‘‘Subject to the provisions of
section 404a, but otherwise without’’.
(c) CLERICAL AMENDMENT.—The analysis for chapter
4 of title 39, United States Code, is amended by inserting
after the item relating to section 404 the following:
‘‘404a. Specific limitations.’’.
SEC. 404. SUITS BY AND AGAINST THE POSTAL SERVICE.
(a) IN GENERAL.—Section 409 of title 39, United
States Code, is amended by striking subsections (d) and (e)
and inserting the following:
‘‘(d)(1) For purposes of the provisions of law cited in
paragraphs (2)(A) and (2)(B), respectively, the Postal
Service—
‘‘(A) shall be considered to be a ‘person’, as used
in the provisions of law involved; and
‘‘(B) shall not be immune under any other doc-
trine of sovereign immunity from suit in Federal
court by any person for any violation of any of those
provisions of law by any officer or employee of the
Postal Service.
‘‘(2) This subsection applies with respect to—