H. R. 6407—53
‘‘(C) As of the close of the fiscal years ending September 30, 
2015, 2025, 2035, and 2039, if the result is a surplus, that amount 
shall be transferred to the Postal Service Retiree Health Benefits 
Fund, and any prior amortization schedule for payments shall be 
terminated. 
‘‘(D) Amortization schedules established under this paragraph 
shall be set in accordance with generally accepted actuarial prac-
tices and principles, with interest computed at the rate used in 
the most recent valuation of the Civil Service Retirement System. 
‘‘(E) The United States Postal Service shall pay the amounts 
so determined to the Office, with payments due not later than 
the date scheduled by the Office. 
‘‘(3) Notwithstanding any other provision of law, in computing 
the amount of any payment under any other subsection of this 
section that is based upon the amount of the unfunded liability, 
such payment shall be computed disregarding that portion of the 
unfunded liability that the Office determines will be liquidated 
by payments under this subsection.’’. 
(b) CREDIT ALLOWED FOR MILITARY SERVICE.—In the applica-
tion of section 8348(g)(2) of title 5, United States Code, for the 
fiscal year 2007, the Office of Personnel Management shall include, 
in addition to the amount otherwise computed under that para-
graph, the amounts that would have been included for the fiscal 
years 2003 through 2006 with respect to credit for military service 
of former employees of the United States Postal Service as though 
the Postal Civil Service Retirement System Funding Reform Act 
of 2003 (Public Law 108–18) had not been enacted, and the Sec-
retary of the Treasury shall make the required transfer to the 
Civil Service Retirement and Disability Fund based on that amount. 
(c) REVIEW.— 
(1) IN GENERAL.— 
(A) REQUEST FOR REVIEW.—Notwithstanding any other 
provision of this section (including any amendment made 
by this section), any determination or redetermination 
made by the Office of Personnel Management under this 
section (including any amendment made by this section) 
shall, upon request of the United States Postal Service, 
be subject to a review by the Postal Regulatory Commission 
under this subsection. 
(B) REPORT.—Upon receiving a request under subpara-
graph (A), the Commission shall promptly procure the serv-
ices of an actuary, who shall hold membership in the Amer-
ican Academy of Actuaries and shall be qualified in the 
evaluation of pension obligations, to conduct a review in 
accordance with generally accepted actuarial practices and 
principles and to provide a report to the Commission con-
taining the results of the review. The Commission, upon 
determining that the report satisfies the requirements of 
this paragraph, shall approve the report, with any com-
ments it may choose to make, and submit it with any 
such comments to the Postal Service, the Office of Per-
sonnel Management, and Congress. 
(2) RECONSIDERATION.—Upon receiving the report from the 
Commission under paragraph (1), the Office of Personnel 
Management shall reconsider its determination or redetermina-
tion in light of such report, and shall make any appropriate 
adjustments. The Office shall submit a report containing the
H. R. 6407—54
results of its reconsideration to the Commission, the Postal 
Service, and Congress. 
SEC. 803. HEALTH INSURANCE. 
(a) IN GENERAL.—
(1) FUNDING.—Chapter 89 of title 5, United States Code, 
is amended—
(A) in section 8906(g)(2)(A), by striking ‘‘shall be paid 
by the United States Postal Service.’’ and inserting ‘‘shall 
through September 30, 2016, be paid by the United States 
Postal Service, and thereafter shall be paid first from the 
Postal Service Retiree Health Benefits Fund up to the 
amount contained in the Fund, with any remaining amount 
paid by the United States Postal Service.’’; and 
(B) by inserting after section 8909 the following: 
‘‘§ 8909a. Postal Service Retiree Health Benefit Fund 
‘‘(a) There is in the Treasury of the United States a Postal 
Service Retiree Health Benefits Fund which is administered by 
the Office of Personnel Management. 
‘‘(b) The Fund is available without fiscal year limitation for 
payments required under section 8906(g)(2)(A). 
‘‘(c) The Secretary of the Treasury shall immediately invest, 
in interest-bearing securities of the United States such currently 
available portions of the Fund as are not immediately required 
for payments from the Fund. Such investments shall be made 
in the same manner as investments for the Civil Service Retirement 
and Disability Fund under section 8348. 
‘‘(d)(1) Not later than June 30, 2007, and by June 30 of each 
succeeding year, the Office shall compute the net present value 
of the future payments required under section 8906(g)(2)(A) and 
attributable to the service of Postal Service employees during the 
most recently ended fiscal year. 
‘‘(2)(A) Not later than June 30, 2007, the Office shall compute, 
and by June 30 of each succeeding year, the Office shall recompute 
the difference between—
‘‘(i) the net present value of the excess of future payments 
required under section 8906(g)(2)(A) for current and future 
United States Postal Service annuitants as of the end of the 
fiscal year ending on September 30 of that year; and 
‘‘(ii)(I) the value of the assets of the Postal Retiree Health 
Benefits Fund as of the end of the fiscal year ending on Sep-
tember 30 of that year; and 
‘‘(II) the net present value computed under paragraph (1). 
‘‘(B) Not later than June 30, 2017, the Office shall compute, 
and by June 30 of each succeeding year shall recompute, a schedule 
including a series of annual installments which provide for the 
liquidation of any liability or surplus by September 30, 2056, or 
within 15 years, whichever is later, of the net present value deter-
mined under subparagraph (A), including interest at the rate used 
in that computation. 
‘‘(3)(A) The United States Postal Service shall pay into such 
Fund—
‘‘(i) $5,400,000,000, not later than September 30, 2007; 
‘‘(ii) $5,600,000,000, not later than September 30, 2008; 
‘‘(iii) $5,400,000,000, not later than September 30, 2009; 
‘‘(iv) $5,500,000,000, not later than September 30, 2010;
H. R. 6407—55
‘‘(v) $5,500,000,000, not later than September 30, 2011; 
‘‘(vi) $5,600,000,000, not later than September 30, 2012; 
‘‘(vii) $5,600,000,000, not later than September 30, 2013; 
‘‘(viii) $5,700,000,000, not later than September 30, 2014; 
‘‘(ix) $5,700,000,000, not later than September 30, 2015; 
and 
‘‘(x) $5,800,000,000, not later than September 30, 2016. 
‘‘(B) Not later than September 30, 2017, and by September 
30 of each succeeding year, the United States Postal Service shall 
pay into such Fund the sum of—
‘‘(i) the net present value computed under paragraph (1); 
and 
‘‘(ii) any annual installment computed under paragraph 
(2)(B). 
‘‘(4) Computations under this subsection shall be made con-
sistent with the assumptions and methodology used by the Office 
for financial reporting under subchapter II of chapter 35 of title 
31. 
‘‘(5)(A)(i) Any computation or other determination of the Office 
under this subsection shall, upon request of the United States 
Postal Service, be subject to a review by the Postal Regulatory 
Commission under this paragraph. 
‘‘(ii) Upon receiving a request under clause (i), the Commission 
shall promptly procure the services of an actuary, who shall hold 
membership in the American Academy of Actuaries and shall be 
qualified in the evaluation of healthcare insurance obligations, to 
conduct a review in accordance with generally accepted actuarial 
practices and principles and to provide a report to the Commission 
containing the results of the review. The Commission, upon deter-
mining that the report satisfies the requirements of this subpara-
graph, shall approve the report, with any comments it may choose 
to make, and submit it with any such comments to the Postal 
Service, the Office of Personnel Management, and Congress. 
‘‘(B) Upon receiving the report under subparagraph (A), the 
Office of Personnel Management shall reconsider its determination 
or redetermination in light of such report, and shall make any 
appropriate adjustments. The Office shall submit a report con-
taining the results of its reconsideration to the Commission, the 
Postal Service, and Congress. 
‘‘(6) After consultation with the United States Postal Service, 
the Office shall promulgate any regulations the Office determines 
necessary under this subsection.’’. 
(2) TECHNICAL AND CONFORMING AMENDMENT.—The table 
of sections for chapter 89 of title 5, United States Code, is 
amended by inserting after the item relating to section 8909 
the following:
‘‘8909a. Postal Service Retiree Health Benefits Fund.’’.
(b) REVIEW.— 
(1) IN GENERAL.— 
(A) REQUEST FOR REVIEW.—Any regulation established 
under section 8909a(d)(5) of title 5, United States Code 
(as added by subsection (a)), shall, upon request of the 
United States Postal Service, be subject to a review by 
the Postal Regulatory Commission under this paragraph.
H. R. 6407—56
(B) REPORT.—Upon receiving a request under subpara-
graph (A), the Commission shall promptly procure the serv-
ices of an actuary, who shall hold membership in the Amer-
ican Academy of Actuaries and shall be qualified in the 
evaluation of healthcare insurance obligations, to conduct 
a review in accordance with generally accepted actuarial 
practices and principles and to provide a report to the 
Commission containing the results of the review. The 
Commission, upon determining that the report satisfies 
the requirements of this paragraph, shall approve the 
report, with any comments it may choose to make, and 
submit it with any such comments to the Postal Service, 
the Office of Personnel Management, and Congress. 
(2) RECONSIDERATION.—Upon receiving the report under 
paragraph (1), the Office of Personnel Management shall 
reconsider its determination or redetermination in light of such 
report, and shall make any appropriate adjustments. The Office 
shall submit a report containing the results of its reconsider-
ation to the Commission, the Postal Service, and Congress. 
SEC. 804. REPEAL OF DISPOSITION OF SAVINGS PROVISION. 
(a) IN GENERAL.—Section 3 of the Postal Civil Service Retire-
ment System Funding Reform Act of 2003 (Public Law 108–18) 
is repealed. 
(b) SAVINGS.—Savings accrued to the Postal Service as a result 
of enactment of Public Law 108–18 and attributable to fiscal year 
2006 shall be transferred to the Postal Service Retiree Health 
Benefits Fund established under section 8909a of title 5, United 
States Code, as added by section 803 of this Act. 
SEC. 805. EFFECTIVE DATES. 
(a) IN GENERAL.—Except as provided under subsection (b), this 
title shall take effect on October 1, 2006. 
(b) TERMINATION OF EMPLOYER CONTRIBUTION.—The amend-
ment made by paragraph (1) of section 802(a) shall take effect 
on the first day of the first pay period beginning on or after 
October 1, 2006. 
TITLE IX—COMPENSATION FOR WORK 
INJURIES 
SEC. 901. TEMPORARY DISABILITY; CONTINUATION OF PAY. 
(a) TIME OF ACCRUAL OF RIGHT.—Section 8117 of title 5, United 
States Code, is amended—
(1) by striking ‘‘An employee’’ and inserting ‘‘(a) An 
employee other than a Postal Service employee’’; and 
(2) by adding at the end the following: 
‘‘(b) A Postal Service employee is not entitled to compensation 
or continuation of pay for the first 3 days of temporary disability, 
except as provided under paragraph (3) of subsection (a). A Postal 
Service employee may use annual leave, sick leave, or leave without 
pay during that 3-day period, except that if the disability exceeds 
14 days or is followed by permanent disability, the employee may 
have their sick leave or annual leave reinstated or receive pay 
for the time spent on leave without pay under this section.’’.
H. R. 6407—57
(b) 
TECHNICAL
AND
CONFORMING
AMENDMENT.—Section 
8118(b)(1) of title 5, United States Code, is amended to read as 
follows: 
‘‘(1) without a break in time, except as provided under 
section 8117(b), unless controverted under regulations of the 
Secretary;’’. 
TITLE X—MISCELLANEOUS 
SEC. 1001. EMPLOYMENT OF POSTAL POLICE OFFICERS. 
Section 3061 of title 18, United States Code, is amended by 
adding at the end the following: 
‘‘(c)(1) The Postal Service may employ police officers for duty 
in connection with the protection of property owned or occupied 
by the Postal Service or under the charge and control of the Postal 
Service, and persons on that property, including duty in areas 
outside the property to the extent necessary to protect the property 
and persons on the property. 
‘‘(2) With respect to such property, such officers shall have 
the power to—
‘‘(A) enforce Federal laws and regulations for the protection 
of persons and property; 
‘‘(B) carry firearms; and 
‘‘(C) make arrests without a warrant for any offense against 
the Unites States committed in the presence of the officer 
or for any felony cognizable under the laws of the United 
States if the officer has reasonable grounds to believe that 
the person to be arrested has committed or is committing 
a felony. 
‘‘(3) With respect to such property, such officers may have, 
to such extent as the Postal Service may by regulations prescribe, 
the power to—
‘‘(A) serve warrants and subpoenas issued under the 
authority of the United States; and 
‘‘(B) conduct investigations, on and off the property in 
question, of offenses that may have been committed against 
property owned or occupied by the Postal Service or persons 
on the property. 
‘‘(4)(A) As to such property, the Postmaster General may pre-
scribe regulations necessary for the protection and administration 
of property owned or occupied by the Postal Service and persons 
on the property. The regulations may include reasonable penalties, 
within the limits prescribed in subparagraph (B), for violations 
of the regulations. The regulations shall be posted and remain 
posted in a conspicuous place on the property. 
‘‘(B) A person violating a regulation prescribed under this 
subsection shall be fined under this title, imprisoned for not 
more than 30 days, or both.’’. 
SEC. 1002. OBSOLETE PROVISIONS. 
(a) REPEAL.—
(1) IN GENERAL.—Chapter 52 of title 39, United States 
Code, is repealed. 
(2) CONFORMING AMENDMENTS.—(A) Section 5005(a) of title 
39, United States Code, is amended—
H. R. 6407—58
(i) by striking paragraph (1), and by redesignating 
paragraphs (2) through (4) as paragraphs (1) through (3), 
respectively; and 
(ii) in paragraph (3) (as so designated by clause (i)), 
by striking ‘‘(as defined in section 5201(6) of this title)’’. 
(B) Section 5005(b) of such title 39 is amended by striking 
‘‘(a)(4)’’ each place it appears and inserting ‘‘(a)(3)’’. 
(C) Section 5005(c) of such title 39 is amended by striking 
‘‘by carrier or person under subsection (a)(1) of this section, 
by contract under subsection (a)(4) of this section, or’’ and 
inserting ‘‘by contract under subsection (a)(3) of this section 
or’’. 
(b) ELIMINATING RESTRICTION
ON LENGTH
OF CONTRACTS.—
(1) Section 5005(b)(1) of title 39, United States Code, is amended 
by striking ‘‘(or where the Postal Service determines that special 
conditions or the use of special equipment warrants, not in excess 
of 6 years)’’ and inserting ‘‘(or such longer period of time as may 
be determined by the Postal Service to be advisable or appropriate)’’. 
(2) Section 5402(d) of such title 39 is amended by striking 
‘‘for a period of not more than 4 years’’. 
(3) Section 5605 of such title 39 is amended by striking ‘‘for 
periods of not in excess of 4 years’’. 
(c) TECHNICAL AND CONFORMING AMENDMENT.—The table of 
chapters for part V of title 39, United States Code, is amended 
by repealing the item relating to chapter 52. 
SEC. 1003. REDUCED RATES. 
Section 3626 of title 39, United States Code, is amended—
(1) in subsection (a), by striking all before paragraph (4) 
and inserting the following: 
‘‘(a)(1) Except as otherwise provided in this section, rates of 
postage for a class of mail or kind of mailer under former section 
4358, 4452(b), 4452(c), 4554(b), or 4554(c) of this title shall be 
established in accordance with section 3622. 
‘‘(2) For the purpose of this subsection, the term ‘regular-rate 
category’ means any class of mail or kind of mailer, other than 
a class or kind referred to in section 2401(c). 
‘‘(3) Rates of postage for a class of mail or kind of mailer 
under former section 4358(a) through (c) of this title shall be estab-
lished so that postage on each mailing of such mail reflects its 
preferred status as compared to the postage for the most closely 
corresponding regular-rate category mailing.’’; 
(2) in subsection (g), by adding at the end the following: 
‘‘(3) For purposes of this section and former section 4358(a) 
through (c) of this title, those copies of an issue of a publication 
entered within the county in which it is published, but distributed 
outside such county on postal carrier routes originating in the 
county of publication, shall be treated as if they were distributed 
within the county of publication. 
‘‘(4)(A) In the case of an issue of a publication, any number 
of copies of which are mailed at the rates of postage for a class 
of mail or kind of mailer under former section 4358(a) through 
(c) of this title, any copies of such issue which are distributed 
outside the county of publication (excluding any copies subject to 
paragraph (3)) shall be subject to rates of postage provided for 
under this paragraph.
H. R. 6407—59
‘‘(B) The rates of postage applicable to mail under this para-
graph shall be established in accordance with section 3622. 
‘‘(C) This paragraph shall not apply with respect to an issue 
of a publication unless the total paid circulation of such issue 
outside the county of publication (not counting recipients of copies 
subject to paragraph (3)) is less than 5,000.’’; and 
(3) by adding at the end the following: 
‘‘(n) In the administration of this section, matter that satisfies 
the circulation standards for requester publications shall not be 
excluded from being mailed at the rates for mail under former 
section 4358 solely because such matter is designed primarily for 
free circulation or for circulation at nominal rates, or fails to meet 
the requirements of former section 4354(a)(5).’’. 
SEC. 1004. SENSE OF CONGRESS REGARDING POSTAL SERVICE PUR-
CHASING REFORM. 
It is the sense of Congress that the Postal Service should—
(1) ensure the fair and consistent treatment of suppliers 
and contractors in its current purchasing policies and any revi-
sion or replacement of such policies, such as through the use 
of competitive contract award procedures, effective dispute reso-
lution mechanisms, and socioeconomic programs; and 
(2) implement commercial best practices in Postal Service 
purchasing policies to achieve greater efficiency and cost 
savings by taking full advantage of private-sector partnerships 
as recommended in July 2003 by the President’s Commission 
on the United States Postal Service. 
SEC. 1005. CONTRACTS FOR TRANSPORTATION OF MAIL BY AIR. 
(a) DEFINITIONS.—Section 5402(a) of title 39, United States 
Code, is amended—
(1) in paragraph (4), by striking ‘‘(g)(1)(D)(i)’’ and inserting 
‘‘(g)(1)(A)(iv)(I)’’; 
(2) in paragraph (5), by striking ‘‘(g)(1)(D)(i)’’ and inserting 
‘‘(g)(1)(A)(iv)(I)’’; 
(3) in paragraph (8), by striking ‘‘rates paid to a bush 
carrier’’ and inserting ‘‘linehaul rates and a single terminal 
handling payment at a bush terminal handling rate paid to 
a bush carrier’’; 
(4) in paragraph (11), by striking ‘‘(g)(1)(D)(ii)’’ and 
inserting ‘‘(g)(1)(A)(iv)(II)’’; and 
(5) in paragraph (13)—
(A) in subparagraph (A)—
(i) by striking ‘‘clause (i) or (ii) of subsection 
(g)(1)(D)’’ and inserting ‘‘subclause (I) or (II) of sub-
section (g)(1)(A)(iv)’’; and 
(ii) by striking ‘‘and’’ after the semicolon; 
(B) in subparagraph (B), by adding ‘‘and’’ after the 
semicolon; and 
(C) by adding at the end the following: 
‘‘(C) is not comprised of previously qualified existing 
mainline carriers as a result of merger or sale;’’. 
(b) NONPRIORITY BYPASS MAIL.—Section 5402(g) of title 39, 
United States Code, is amended—
(1) in paragraph (3), by adding at the end the following: 
‘‘(C) When a new hub results from a change in a 
determination under subparagraph (B), mail tender from 
that hub during the 12-month period beginning on the
H. R. 6407—60
effective date of that change shall be based on the pas-
senger and freight shares to the destinations of the affected 
hub or hubs resulting in the new hub.’’; and 
(2) in paragraph (5)(A)(i), by striking ‘‘(g)(1)(D)(ii)’’ and 
inserting ‘‘(g)(1)(A)(iv)(II)’’. 
(c) EQUITABLE TENDER.—Section 5402(h) of title 39, United 
States Code, is amended—
(1) in paragraph (1), by inserting ‘‘bush’’ after ‘‘providing 
scheduled’’; 
(2) by striking paragraph (3) and inserting the following: 
‘‘(3)(A) Except as provided under subparagraph (C), a new 
or existing 121 bush passenger carrier qualified under sub-
section (g)(1) shall be exempt from the requirements under 
paragraphs (1)(B) and (2)(A) on a city pair route for a period 
which shall extend for—
‘‘(i) 1 year; 
‘‘(ii) 1 year in addition to the extension under clause 
(i) if, as of the conclusion of the first year, such carrier 
has been providing not less than 5 percent of the passenger 
service on that route (as calculated under paragraph (5)); 
and 
‘‘(iii) 1 year in addition to the extension under clause 
(ii) if, as of the conclusion of the second year, such carrier 
has been providing not less than 10 percent of the pas-
senger service on that route (as calculated under paragraph 
(5)). 
‘‘(B)(i) The first 3 121 bush passenger carriers entitled 
to the exemptions under subparagraph (A) on any city pair 
route shall divide no more than an additional 10 percent of 
the mail, apportioned equally, comprised of no more than—
‘‘(I) 5 percent of the share of each qualified passenger 
carrier servicing that route that is not a 121 bush passenger 
carrier; and 
‘‘(II) 5 percent of the share of each nonpassenger carrier 
servicing that route that transports 25 percent or more 
of the total nonmail freight under subsection (i)(1). 
‘‘(ii) Additional 121 bush passenger carriers entering service 
on that city pair route after the first 3 shall not receive any 
additional mail share. 
‘‘(iii) If any 121 bush passenger carrier on a city pair 
route receiving an additional share of the mail under clause 
(ii) discontinues service on that route, the 121 bush passenger 
carrier that has been providing the longest period of service 
on that route and is otherwise eligible but is not receiving 
a share by reason of clause (ii), shall receive the share of 
the carrier discontinuing service. 
‘‘(C) Notwithstanding the requirements of this subsection, 
if only 1 passenger carrier or aircraft is qualified to be tendered 
nonpriority bypass mail as a passenger carrier or aircraft on 
a city pair route in the State of Alaska, the Postal Service 
shall tender 20 percent of the nonpriority bypass mail described 
under paragraph (1) to the passenger carrier or aircraft pro-
viding at least 10 percent of the passenger service on such 
route.’’; 
(3) in paragraph (5)(A)—
(A) by striking ‘‘(i)’’ after ‘‘(A)’’; and 
(B) by striking clause (ii).
H. R. 6407—61
(d) PERCENT OF NONMAIL FREIGHT.—Section 5402(i)(6) of title 
39, United States Code, is amended—
(1) by striking ‘‘(A)’’ after ‘‘(6)’’; and 
(2) by striking subparagraph (B). 
(e) PERCENT OF TENDER RATE.—Section 5402(j)(3)(B) of title 
39, United States Code, is amended by striking ‘‘bush routes in 
the State of Alaska’’ and inserting ‘‘routes served exclusively by 
bush carriers in the State of Alaska’’. 
(f) DETERMINATION
OF RATES.—Section 5402(k) of title 39, 
United States Code, is amended by striking paragraph (5). 
(g) 
TECHNICAL
AND
CONFORMING
AMENDMENT.—Section 
5402(p)(3) of title 39, United States Code, is amended by striking 
‘‘(g)(1)(D)’’ and inserting ‘‘(g)(1)(A)(iv)’’. 
(h) EFFECTIVE DATE.—
(1) IN GENERAL.—Except as provided under paragraph (2), 
this section shall take effect on the date of enactment of this 
Act. 
(2) EQUITABLE TENDER.—Subsection (c) shall take effect 
on December 1, 2006. 
SEC. 1006. DATE OF POSTMARK TO BE TREATED AS DATE OF APPEAL 
IN CONNECTION WITH THE CLOSING OR CONSOLIDATION 
OF POST OFFICES. 
(a) IN GENERAL.—Section 404(b) of title 39, United States Code, 
is amended by adding at the end the following: 
‘‘(6) For purposes of paragraph (5), any appeal received by 
the Commission shall—
‘‘(A) if sent to the Commission through the mails, be consid-
ered to have been received on the date of the Postal Service 
postmark on the envelope or other cover in which such appeal 
is mailed; or 
‘‘(B) if otherwise lawfully delivered to the Commission, 
be considered to have been received on the date determined 
based on any appropriate documentation or other indicia (as 
determined under regulations of the Commission).’’. 
(b) EFFECTIVE DATE.—This section and the amendments made 
by this section shall apply with respect to any determination to 
close or consolidate a post office which is first made available, 
in accordance with paragraph (3) of section 404(b) of title 39, 
United States Code, after the end of the 3-month period beginning 
on the date of the enactment of this Act. 
SEC. 1007. PROVISIONS RELATING TO BENEFITS UNDER CHAPTER 81 
OF TITLE 5, UNITED STATES CODE, FOR OFFICERS AND 
EMPLOYEES OF THE FORMER POST OFFICE DEPART-
MENT. 
(a) IN GENERAL.—Section 8 of the Postal Reorganization Act 
(39 U.S.C. 1001 note) is amended by inserting ‘‘(a)’’ after ‘‘8.’’ and 
by adding at the end the following: 
‘‘(b) For purposes of chapter 81 of title 5, United States Code, 
the Postal Service shall, with respect to any individual receiving 
benefits under such chapter as an officer or employee of the former 
Post Office Department, have the same authorities and responsibil-
ities as it has with respect to an officer or employee of the Postal 
Service receiving such benefits.’’. 
(b) EFFECTIVE DATE.—This section and the amendments made 
by this section shall be effective as of the first day of the fiscal 
year in which this Act is enacted.
H. R. 6407—62
SEC. 1008. HAZARDOUS MATTER. 
(a) NONMAILABILITY GENERALLY.—Section 3001 of title 39, 
United States Code, is amended—
(1) by redesignating subsection (n) as subsection (o); and 
(2) by inserting after subsection (m) the following: 
‘‘(n)(1) Except as otherwise authorized by law or regulations 
of the Postal Service, hazardous material is nonmailable. 
‘‘(2) In this subsection, the term ‘hazardous material’ means 
a substance or material designated by the Secretary of Transpor-
tation under section 5103(a) of title 49.’’. 
(b) MAILABILITY.—Chapter 30 of title 39, United States Code, 
is amended by adding at the end the following: 
‘‘§ 3018. Hazardous material 
‘‘(a) IN GENERAL.—The Postal Service shall prescribe regula-
tions for the safe transportation of hazardous material in the mail. 
‘‘(b) PROHIBITIONS.—No person may—
‘‘(1) mail or cause to be mailed hazardous material that 
has been declared by statute or Postal Service regulation to 
be nonmailable; 
‘‘(2) mail or cause to be mailed hazardous material in 
violation of any statute or Postal Service regulation restricting 
the time, place, or manner in which hazardous material may 
be mailed; or 
‘‘(3) manufacture, distribute, or sell any container, pack-
aging kit, or similar device that—
‘‘(A) is represented, marked, certified, or sold by such 
person for use in the mailing of hazardous material; and 
‘‘(B) fails to conform with any statute or Postal Service 
regulation setting forth standards for a container, pack-
aging kit, or similar device used for the mailing of haz-
ardous material. 
‘‘(c) CIVIL PENALTY; CLEAN-UP COSTS AND DAMAGES.—
‘‘(1) IN GENERAL.—A person who knowingly violates this 
section or a regulation prescribed under this section shall be 
liable for—
‘‘(A) a civil penalty of at least $250, but not more 
than $100,000, for each violation; 
‘‘(B) the costs of any clean-up associated with each 
violation; and 
‘‘(C) damages. 
‘‘(2) KNOWING ACTION.—A person acts knowingly for pur-
poses of paragraph (1) when—
‘‘(A) the person has actual knowledge of the facts giving 
rise to the violation; or 
‘‘(B) a reasonable person acting in the circumstances 
and exercising reasonable care would have had that knowl-
edge. 
‘‘(3) SEPARATE VIOLATIONS.—
‘‘(A) VIOLATIONS
OVER
TIME.—A separate violation 
under this subsection occurs for each day hazardous mate-
rial, mailed or caused to be mailed in noncompliance with 
this section, is in the mail. 
‘‘(B) SEPARATE ITEMS.—A separate violation under this 
subsection occurs for each item containing hazardous mate-
rial that is mailed or caused to be mailed in noncompliance 
with this section.
H. R. 6407—63
‘‘(d) HEARINGS.—The Postal Service may determine that a per-
son has violated this section or a regulation prescribed under this 
section only after notice and an opportunity for a hearing. Pro-
ceedings under this section shall be conducted in accordance with 
section 3001(m). 
‘‘(e) PENALTY CONSIDERATIONS.—In determining the amount 
of a civil penalty for a violation of this section, the Postal Service 
shall consider—
‘‘(1) the nature, circumstances, extent, and gravity of the 
violation; 
‘‘(2) with respect to the person who committed the violation, 
the degree of culpability, any history of prior violations, the 
ability to pay, and any effect on the ability to continue in 
business; 
‘‘(3) the impact on Postal Service operations; and 
‘‘(4) any other matters that justice requires. 
‘‘(f) CIVIL ACTIONS TO COLLECT.—
‘‘(1) IN
GENERAL.—In accordance with section 409(d), a 
civil action may be commenced in an appropriate district court 
of the United States to collect a civil penalty, clean-up costs, 
and damages assessed under subsection (c). 
‘‘(2) COMPROMISE.—The Postal Service may compromise the 
amount of a civil penalty, clean-up costs, and damages assessed 
under subsection (c) before commencing a civil action with 
respect to such civil penalty, clean-up costs, and damages under 
paragraph (1). 
‘‘(g) CIVIL JUDICIAL PENALTIES.—
‘‘(1) IN GENERAL.—At the request of the Postal Service, 
the Attorney General may bring a civil action in an appropriate 
district court of the United States to enforce this section or 
a regulation prescribed under this section. 
‘‘(2) RELIEF.—The court in a civil action under paragraph 
(1) may award appropriate relief, including a temporary or 
permanent injunction, civil penalties as determined in accord-
ance with this section, or punitive damages. 
‘‘(3) CONSTRUCTION.—A civil action under this subsection 
shall be in lieu of civil penalties for the same violation under 
subsection (c)(1)(A). 
‘‘(h) DEPOSIT OF AMOUNTS COLLECTED.—
‘‘(1) POSTAL
SERVICE
FUND.—Except as provided under 
paragraph (2), amounts collected under subsection (c)(1)(B) and 
(C) shall be deposited into the Postal Service Fund under 
section 2003. 
‘‘(2) 
TREASURY.—Amounts 
collected 
under 
subsection 
(c)(1)(A) and any punitive damages collected under subsection 
(c)(1)(C) shall be deposited into the Treasury of the United 
States.’’. 
(c) CONFORMING AMENDMENTS.—(1) Section 2003(b) of title 39, 
United States Code, is amended—
(A) in paragraph (7), by striking ‘‘and’’ after the semicolon; 
(B) in paragraph (8), by striking ‘‘purposes.’’ and inserting 
‘‘purposes; and’’; and 
(C) by adding at the end the following: 
‘‘(9) any amounts collected under section 3018.’’. 
(2) The analysis for chapter 30 of title 39, United States Code, 
is amended by adding at the end the following:
‘‘3018. Hazardous material.’’.
H. R. 6407—64
(d) INJURIOUS ARTICLES AS NONMAILABLE.—Section 1716(a) of 
title 18, United States Code, is amended by inserting after ‘‘explo-
sives,’’ the following: ‘‘hazardous materials,’’. 
SEC. 1009. ZIP CODES AND RETAIL HOURS. 
(a) ZIP CODES.—Not later than September 30, 2007, the United 
States Postal Service shall assign a single, unified ZIP code to 
serve, as nearly as practicable, each of the following communities: 
(1) Auburn Township, Ohio. 
(2) Hanahan, South Carolina. 
(3) Bradbury, California. 
(4) Discovery Bay, California. 
(b) RETAIL HOURS.—Not later than 60 days after the date 
of the enactment of this Act, the United States Postal Service 
shall provide the same window service hours for the Fairport Harbor 
Branch of the United States Post Office in Painesville, Ohio, as 
were in effect as of December 1, 2005.
SEC. 1010. TECHNICAL AND CONFORMING AMENDMENTS. 
(a) REIMBURSEMENT.—Section 3681 of title 39, United States 
Code, is amended by striking ‘‘section 3628’’ and inserting ‘‘sections 
3662 through 3664’’. 
(b) SIZE AND WEIGHT LIMITS.—Section 3682 of title 39, United 
States Code, is amended to read as follows: 
‘‘§ 3682. Size and weight limits 
‘‘The Postal Service may establish size and weight limitations 
for mail matter in the market-dominant category of mail consistent 
with regulations the Postal Regulatory Commission may prescribe 
under section 3622. The Postal Service may establish size and 
weight limitations for mail matter in the competitive category of 
mail consistent with its authority under section 3632.’’. 
(c) REVENUE FOREGONE, ETC.—Title 39, United States Code, 
is amended—
(1) in section 503 (as so redesignated by section 601), 
by striking ‘‘this chapter.’’ and inserting ‘‘this title.’’; and 
(2) in section 2401(d), by inserting ‘‘(as last in effect before 
enactment of the Postal Accountability and Enhancement Act)’’ 
after ‘‘3626(a)’’ and after ‘‘3626(a)(3)(B)(ii)’’. 
(d) APPROPRIATIONS AND REPORTING REQUIREMENTS.—
(1) APPROPRIATIONS.—Subsection (e) of section 2401 of title 
39, United States Code, is amended—
(A) by striking ‘‘Committee on Post Office and Civil 
Service’’ each place it appears and inserting ‘‘Committee 
on Government Reform’’; and 
(B) by striking ‘‘Not later than March 15 of each year,’’ 
and inserting ‘‘Each year,’’. 
(2) REPORTING
REQUIREMENTS.—Sections 2803(a) and 
2804(a) of title 39, United States Code, are amended by striking 
‘‘2401(g)’’ and inserting ‘‘2401(e)’’.
(e) AUTHORITY
TO
FIX
RATES
AND
CLASSES
GENERALLY; 
REQUIREMENT RELATING
TO LETTERS SEALED AGAINST INSPEC-
TION.—Section 404 of title 39, United States Code (as amended 
by section 102) is further amended by redesignating subsections 
(b) and (c) as subsections (d) and (e), respectively, and by inserting 
after subsection (a) the following: 
‘‘(b) Except as otherwise provided, the Governors are authorized 
to establish reasonable and equitable classes of mail and reasonable
H. R. 6407—65
and equitable rates of postage and fees for postal services in accord-
ance with the provisions of chapter 36. Postal rates and fees shall 
be reasonable and equitable and sufficient to enable the Postal 
Service, under best practices of honest, efficient, and economical 
management, to maintain and continue the development of postal 
services of the kind and quality adapted to the needs of the United 
States. 
‘‘(c) The Postal Service shall maintain one or more classes 
of mail for the transmission of letters sealed against inspection. 
The rate for each such class shall be uniform throughout the United 
States, its territories, and possessions. One such class shall provide 
for the most expeditious handling and transportation afforded mail 
matter by the Postal Service. No letter of such a class of domestic 
origin shall be opened except under authority of a search warrant 
authorized by law, or by an officer or employee of the Postal 
Service for the sole purpose of determining an address at which 
the letter can be delivered, or pursuant to the authorization of 
the addressee.’’. 
(f) LIMITATIONS.—Section 3684 of title 39, United States Code, 
is amended by striking all that follows ‘‘any provision’’ and inserting 
‘‘of this title.’’. 
(g) 
MISCELLANEOUS.—Title 
39, 
United 
States 
Code, 
is 
amended—
(1) in section 1005(d)(2)—
(A) by striking ‘‘subsection (g) of section 5532,’’; and 
(B) by striking ‘‘8344,’’ and inserting ‘‘8344’’; 
(2) in the analysis for part III, by striking the item relating 
to chapter 28 and inserting the following:
‘‘28. Strategic Planning and Performance Management ........................... 2801’’;
(3) in section 3005(a)—
(A) in the matter before paragraph (1), by striking 
all that follows ‘‘nonmailable’’ and precedes ‘‘(h),’’ and 
inserting ‘‘under section 3001(d),’’; and 
(B) in the sentence following paragraph (3), by striking 
all that follows ‘‘nonmailable’’ and precedes ‘‘(h),’’ and 
inserting ‘‘under such section 3001(d),’’; 
(4) in section 3210(a)(6)(C), by striking the matter after 
‘‘if such mass mailing’’ and before ‘‘than 60 days’’ and inserting 
‘‘is postmarked fewer’’; and
H. R. 6407—66
(5) by striking the heading for section 3627 and inserting 
the following: 
‘‘§ 3627. Adjusting free rates’’.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.