I
107TH CONGRESS
2D SESSION
H. R. 4970
To reform the postal laws of the United States.
IN THE HOUSE OF REPRESENTATIVES
JUNE 20, 2002
Mr. MCHUGH (for himself and Mr. BURTON of Indiana) introduced the
following bill; which was referred to the Committee on Government Reform
A BILL
To reform the postal laws of the United States.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Postal Accountability and Enhancement Act’’.
(b) TABLE OF CONTENTS.—The table of contents for
this Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I—DEFINITIONS; POSTAL SERVICES
Sec. 101. Definitions.
Sec. 102. Postal services.
TITLE II—MODERN RATE REGULATION
Sec. 201. Provisions relating to market-dominant products.
Sec. 202. Provisions relating to competitive products.
Sec. 203. Provisions relating to experimental and new products.
Sec. 204. Reporting requirements and related provisions.
Sec. 205. Complaints; appellate review and enforcement.
Sec. 206. Clerical amendment.
TITLE III—PROVISIONS RELATING TO FAIR COMPETITION
Sec. 301. Postal Service Competitive Products Fund.
Sec. 302. Assumed Federal income tax on competitive products income.
Sec. 303. Unfair competition prohibited.
Sec. 304. Suits by and against the Postal Service.
Sec. 305. International postal arrangements.
Sec. 306. Change-of-address order involving a commercial mail receiving
agency.
Sec. 307. Exception for competitive products.
TITLE IV—GENERAL PROVISIONS
Sec. 401. Qualification requirements for Governors.
Sec. 402. Obligations.
Sec. 403. Private carriage of letters.
Sec. 404. Rulemaking authority.
Sec. 405. Noninterference with collective bargaining agreements, etc.
Sec. 406. Bonus authority.
TITLE V—ENHANCED REGULATORY COMMISSION
Sec. 501. Reorganization and modification of certain provisions.
Sec. 502. Authority for Postal Regulatory Commission to issue subpoenas.
Sec. 503. Appropriations for the Postal Regulatory Commission.
Sec. 504. Redesignation of the Postal Rate Commission.
TITLE VI—INSPECTORS GENERAL
Sec. 601. Inspector General of the Postal Regulatory Commission.
Sec. 602. Inspector General of the United States Postal Service to be appointed
by the President.
TITLE VII—NATIONAL COMMISSION; EVALUATIONS
Sec. 701. National Commission on the Future of the Postal Service.
Sec. 702. Assessments of ratemaking, classification, and other provisions.
Sec. 703. Study on equal application of laws to competitive products.
Sec. 704. Greater diversity in Postal Service executive and administrative
schedule management positions.
Sec. 705. Plan for assisting displaced workers.
Sec. 706. Contracts with women, minorities, and small businesses.
Sec. 707. Rates for periodicals.
Sec. 708. Assessment of certain rate deficiencies.
Sec. 709. Definition.
TITLE VIII—MISCELLANEOUS; TECHNICAL AND CONFORMING
AMENDMENTS
Sec. 801. Employment of postal police officers.
Sec. 802. Date of postmark to be treated as date of appeal in connection with
the closing or consolidation of post offices.
Sec. 803. Provisions relating to benefits under chapter 81 of title 5, United
States Code, for officers and employees of the former Post Of-
fice Department.
Sec. 804. Obsolete provisions.
Sec. 805. Expanded contracting authority.
Sec. 806. Investments.
Sec. 807. Repeal of section 5403.
Sec. 808. Technical and conforming amendments.
TITLE I—DEFINITIONS; POSTAL
SERVICES
SEC. 101. DEFINITIONS.
Section 102 of title 39, United States Code, is
amended by striking ‘‘and’’ at the end of paragraph (3),
by striking the period at the end of paragraph (4) and
inserting a semicolon, and by adding at the end the fol-
lowing:
‘‘(5) ‘postal service’ refers to the physical deliv-
ery of letters, printed matter, or packages weighing
up to 70 pounds, including physical acceptance, col-
lection, sorting, transportation, or other services an-
cillary thereto;
‘‘(6) ‘product’ means a postal service with a
distinct cost or market characteristic for which a
rate is applied;
‘‘(7) ‘rates’, as used with respect to products,
includes fees for postal services;
‘‘(8) ‘market-dominant product’ or ‘product in
the market-dominant category of mail’ means a
product subject to subchapter I of chapter 36; and
‘‘(9) ‘competitive product’ or ‘product in the
competitive category of mail’ means a product sub-
ject to subchapter II of chapter 36;
‘‘(10) ‘Consumer Price Index’ means the Con-
sumer Price Index for All Urban Consumers pub-
lished monthly by the Bureau of Labor Statistics of
the Department of Labor; and
‘‘(11) ‘year’, as used in chapter 36 (other than
subchapters I and VI thereof), means a fiscal year.’’.
SEC. 102. POSTAL SERVICES.
(a) IN GENERAL.—Section 404 of title 39, United
States Code, is amended—
(1) in subsection (a), by striking paragraph (6)
and by redesignating paragraphs (7) through (9) as
paragraphs (6) through (8), respectively; and
(2) by adding at the end the following:
‘‘(c) Nothing in this title shall be considered to permit
or require that the Postal Service provide any special non-
postal or similar services.’’.
(b) 
CONFORMING
AMENDMENTS.—(1) 
Section
1402(b)(1)(B)(ii) of the Victims of Crime Act of 1984 (98
Stat. 2170; 42 U.S.C. 10601(b)(1)(B)(ii)) is amended by
striking ‘‘404(a)(8)’’ and inserting ‘‘404(a)(7)’’.
(2) Section 2003(b)(1) of title 39, United States
Code, is amended by striking ‘‘and nonpostal’’.
TITLE II—MODERN RATE
REGULATION
SEC. 201. PROVISIONS RELATING TO MARKET-DOMINANT
PRODUCTS.
(a) IN GENERAL.—Chapter 36 of title 39, United
States Code, is amended by striking sections 3621 and
3622 and inserting the following:
‘‘§ 3621. Applicability; definitions
‘‘(a) APPLICABILITY.—This subchapter shall apply
with respect to—
‘‘(1)(A) single piece first-class letters (both do-
mestic and international);
‘‘(B) single piece first-class cards (both domes-
tic and international);
‘‘(C) single piece parcels (both domestic and
international); and
‘‘(D) special services;
‘‘(2) all first-class mail not included under
paragraph (1);
‘‘(3) periodicals;
‘‘(4) standard mail (except for parcel post);
‘‘(5) media mail;
‘‘(6) library mail; and
‘‘(7) bound printed matter,
subject to any changes the Postal Regulatory Commission
may make under section 3642.
‘‘(b) RULE
OF CONSTRUCTION.—Mail matter re-
ferred to in subsection (a) shall, for purposes of this sub-
chapter, be considered to have the meaning given to such
mail matter under the mail classification schedule.
‘‘§ 3622. Modern rate regulation
‘‘(a) AUTHORITY GENERALLY.—The Postal Regu-
latory Commission shall, within 24 months after the date
of the enactment of this section, by regulation establish
(and may from time to time thereafter by regulation re-
vise) a modern system for regulating rates and classes for
market-dominant products.
‘‘(b) OBJECTIVES.—Such system shall be designed to
achieve the following objectives:
‘‘(1) To maximize incentives to reduce costs
and increase efficiency.
‘‘(2) To create predictability and stability in
rates.
‘‘(3) To maintain high quality service stand-
ards.
‘‘(4) To allow the Postal Service pricing flexi-
bility.
‘‘(5) To assure adequate revenues, including re-
tained earnings, to maintain financial stability.
‘‘(6) To reduce the administrative burden of the
ratemaking process.
‘‘(c) FACTORS.—In establishing or revising such sys-
tem, the Postal Regulatory Commission shall take into
account—
‘‘(1) the establishment and maintenance of a
fair and equitable schedule for rates and classifica-
tion system;
‘‘(2) the value of the mail service actually pro-
vided each class or type of mail service to both the
sender and the recipient, including but not limited to
the collection, mode of transportation, and priority
of delivery;
‘‘(3) the direct and indirect postal costs attrib-
utable to each class or type of mail service plus that
portion of all other costs of the Postal Service rea-
sonably assignable to such class or type;
‘‘(4) the effect of rate increases upon the gen-
eral public, business mail users, and enterprises in
the private sector of the economy engaged in the de-
livery of mail matter other than letters;
‘‘(5) the available alternative means of sending
and receiving letters and other mail matter at rea-
sonable costs;
‘‘(6) the degree of preparation of mail for deliv-
ery into the postal system performed by the mailer
and its effect upon reducing costs to the Postal
Service;
‘‘(7) simplicity of structure for the entire sched-
ule and simple, identifiable relationships between the
rates or fees charged the various classes of mail for
postal services;
‘‘(8) the relative value to the people of the
kinds of mail matter entered into the postal system
and the desirability and justification for special clas-
sifications and services of mail;
‘‘(9) the importance of providing classifications
with extremely high degrees of reliability and speed
of delivery and of providing those that do not re-
quire high degrees of reliability and speed of deliv-
ery;
‘‘(10) the desirability of special classifications
from the point of view of both the user and of the
Postal Service;
‘‘(11) the educational, cultural, scientific, and
informational value to the recipient of mail matter;
and
‘‘(12) the policies of this title as well as such
other factors as the Commission deems appropriate.
‘‘(d) ALLOWABLE PROVISIONS.—The system for reg-
ulating rates and classes for market-dominant products
may include one or more of the following:
‘‘(1) Price caps, revenue targets, or other form
of incentive regulation.
‘‘(2) Cost-of-service regulation.
‘‘(3) Such other form of regulation as the Com-
mission considers appropriate to achieve, consistent
with subsection (c), the objectives of subsection (b).
‘‘(e) LIMITATION.—In the administration of this sec-
tion, the Commission shall not permit the average rate in
any subclass of mail to increase at an annual rate greater
than the comparable increase in the Consumer Price
Index, unless it has, after notice and opportunity for a
public hearing and comment, determined that such in-
crease is reasonable and equitable and necessary to enable
the Postal Service, under best practices of honest, effi-
cient, and economical management, to maintain and con-
tinue the development of postal services of the kind and
quality adapted to the needs of the United States.
‘‘(f) TRANSITION RULE.—Until regulations under
this section first take effect, rates and classes for market-
dominant products shall remain subject to modification in
accordance with the provisions of this chapter and section
407, as such provisions were last in effect before the date
of the enactment of this section.’’.
(b) REPEALED SECTIONS.—Sections 3623, 3624,
3625, and 3628 of title 39, United States Code, are re-
pealed.
(c) REDESIGNATION.—Chapter 36 of title 39, United
States Code (as in effect after the amendment made by
section 501, but before the amendment made by section
202) is amended by striking the heading for subchapter
II and inserting the following:
‘‘SUBCHAPTER I—PROVISIONS RELATING TO
MARKET-DOMINANT PRODUCTS’’.
SEC. 202. PROVISIONS RELATING TO COMPETITIVE PROD-
UCTS.
Chapter 36 of title 39, United States Code, is amend-
ed by inserting after section 3629 the following:
‘‘SUBCHAPTER II—PROVISIONS RELATING TO
COMPETITIVE PRODUCTS
‘‘§ 3631. Applicability; definitions and updates
‘‘(a) APPLICABILITY.—This subchapter shall apply
with respect to—
‘‘(1) priority mail;
‘‘(2) expedited mail;
‘‘(3) mailgrams;
‘‘(4) international mail; and
‘‘(5) parcel post,
subject to subsection (d) and any changes the Postal Reg-
ulatory Commission may make under section 3642.
‘‘(b) DEFINITION.—For purposes of this subchapter,
the term ‘costs attributable’, as used with respect to a
product, means the direct and indirect postal costs attrib-
utable to such product.
‘‘(c) RULE
OF CONSTRUCTION.—Mail matter re-
ferred to in subsection (a) shall, for purposes of this sub-
chapter, be considered to have the meaning given to such
mail matter under the mail classification schedule.
‘‘(d) LIMITATION.—Notwithstanding any other provi-
sion of this section, nothing in this subchapter shall be
considered to apply with respect to any product then cur-
rently in the market-dominant category of mail.
‘‘§ 3632. Action of the Governors
‘‘(a) AUTHORITY TO ESTABLISH RATES AND CLASS-
ES.—The Governors, with the written concurrence of a
majority of all of the Governors then holding office, shall
establish rates and classes for products in the competitive
category of mail in accordance with the requirements of
this subchapter and regulations promulgated under sec-
tion 3633.
‘‘(b) PROCEDURES.—
‘‘(1) IN GENERAL.—Rates and classes shall be
established in writing, complete with a statement of
explanation and justification, and the date as of
which each such rate or class takes effect.
‘‘(2) PUBLICATION.—The Governors shall cause
each rate and class decision under this section and
the record of the Governors’ proceedings in connec-
tion with such decision to be published in the Fed-
eral Register by such date before the effective date
of any new rates or classes as the Governors con-
sider appropriate.
‘‘(c) TRANSITION RULE.—Until regulations under
section 3633 first take effect, rates and classes for com-
petitive products shall remain subject to modification in
accordance with the provisions of this chapter and section
407, as such provisions were as last in effect before the
date of the enactment of this section.
‘‘§ 3633. Provisions applicable to rates for competitive
products
‘‘The Postal Regulatory Commission shall, within
180 days after the date of the enactment of this section,
promulgate (and may from time to time thereafter revise)
regulations—
‘‘(1) to prohibit the subsidization of competitive
products by market-dominant products;
‘‘(2) to ensure that each competitive product
covers its costs attributable; and
‘‘(3) to ensure that all competitive products col-
lectively make a reasonable contribution to the insti-
tutional costs of the Postal Service.’’.
SEC. 203. PROVISIONS RELATING TO EXPERIMENTAL AND
NEW PRODUCTS.
Subchapter III of chapter 36 of title 39, United
States Code, is amended to read as follows:
‘‘SUBCHAPTER III—PROVISIONS RELATING TO
EXPERIMENTAL AND NEW PRODUCTS
‘‘§ 3641. Market tests of experimental products
‘‘(a) AUTHORITY.—
‘‘(1) IN
GENERAL.—The Postal Service may
conduct market tests of experimental products in ac-
cordance with this section.
‘‘(2) PROVISIONS
WAIVED.—A product shall
not, while it is being tested under this section, be
subject to the requirements of sections 3622, 3633,
or 3642, or regulations promulgated under those
sections.
‘‘(b) CONDITIONS.—A product may not be tested
under this section unless it satisfies each of the following:
‘‘(1) SIGNIFICANTLY
DIFFERENT
PRODUCT.—
The product is, from the viewpoint of the mail users,
significantly different from all products offered by
the Postal Service within the 2-year period preceding
the start of the test.
‘‘(2) MARKET DISRUPTION.—The introduction
or continued offering of the product will not create
an unfair or otherwise inappropriate competitive ad-
vantage for the Postal Service or any mailer, par-
ticularly in regard to small business concerns (as de-
fined under subsection (h)).
‘‘(3) CORRECT CATEGORIZATION.—The Postal
Service identifies the product, for the purpose of a
test under this section, as either market dominant or
competitive, consistent with the criteria under sec-
tion 3642(b)(1). Costs and revenues attributable to
a product identified as competitive shall be included
in any determination under section 3633(3)(relating
to provisions applicable to competitive products col-
lectively).
‘‘(c) NOTICE.—
‘‘(1) IN GENERAL.—At least 30 days before ini-
tiating a market test under this section, the Postal
Service shall file with the Postal Regulatory Com-
mission and publish in the Federal Register a
notice—
‘‘(A) setting out the basis for the Postal
Service’s determination that the market test is
covered by this section; and
‘‘(B) describing the nature and scope of
the market test.
‘‘(2) SAFEGUARDS.—For a competitive experi-
mental product, the provisions of section 504(g)
shall be available with respect to any information re-
quired to be filed under paragraph (1) to the same
extent and in the same manner as in the case of any
matter described in section 504(g)(1). Nothing in
paragraph (1) shall be considered to permit or re-
quire the publication of any information as to which
confidential treatment is accorded under the pre-
ceding sentence (subject to the same exception as set
forth in section 504(g)(3)).
‘‘(d) DURATION.—
‘‘(1) IN GENERAL.—A market test of a product
under this section may be conducted over a period
of not to exceed 24 months.
‘‘(2) EXTENSION AUTHORITY.—If necessary in
order to determine the feasibility or desirability of a
product being tested under this section, the Postal
Regulatory Commission may, upon written applica-
tion of the Postal Service (filed not later than 60
days before the date as of which the testing of such
product would otherwise be scheduled to terminate
under paragraph (1)), extend the testing of such
product for not to exceed an additional 12 months.
‘‘(e) DOLLAR-AMOUNT LIMITATION.—
‘‘(1) IN
GENERAL.—A product may only be
tested under this section if the total revenues that
are anticipated, or in fact received, by the Postal
Service 
from 
such 
product 
do 
not 
exceed
$10,000,000 in any year, subject to paragraph (2)
and subsection (g).
‘‘(2) EXEMPTION
AUTHORITY.—The Postal
Regulatory Commission may, upon written applica-
tion of the Postal Service, exempt the market test
from the limit in paragraph (1) if the total revenues
that are anticipated, or in fact received, by the Post-
al Service from such product do not exceed
$50,000,000 in any year, subject to subsection (g).
In reviewing an application under this paragraph,
the Postal Regulatory Commission shall approve
such application if it determines that—
‘‘(A) the product is likely to benefit the
public and meet an expected demand;
‘‘(B) the product is likely to contribute to
the financial stability of the Postal Service; and
‘‘(C) the product is not likely to result in
unfair or otherwise inappropriate competition.
‘‘(f) CANCELLATION.—If the Postal Regulatory Com-
mission at any time determines that a market test under
this section fails, with respect to any particular product,
to meet one or more of the requirements of this section,
it may order the cancellation of the test involved or take
such other action as it considers appropriate. A determina-
tion under this subsection shall be made in accordance
with such procedures as the Commission shall by regula-
tion prescribe.
‘‘(g) ADJUSTMENT FOR INFLATION.—For purposes
of each year following the year in which occurs the dead-
line for the Postal Service’s first report to the Postal Reg-
ulatory Commission under section 3652(a), each dollar
amount contained in this section shall be adjusted by the
change in the Consumer Price Index for such year (as de-
termined under regulations of the Commission).
‘‘(h) DEFINITION
OF
A SMALL BUSINESS CON-
CERN.—The criteria used in defining small business con-
cerns or otherwise categorizing business concerns as small
business concerns shall, for purposes of this section, be
established by the Postal Regulatory Commission in con-
formance with the requirements of section 3 of the Small
Business Act.
‘‘(i) EFFECTIVE DATE.—Market tests under this
subchapter may be conducted in any year beginning with
the first year in which occurs the deadline for the Postal
Service’s first report to the Postal Regulatory Commission
under section 3652(a).
‘‘§ 3642. New products and transfers of products be-
tween the market-dominant and competi-
tive categories of mail
‘‘(a) IN GENERAL.—Upon request of the Postal Serv-
ice or users of the mails, or upon its own initiative, the
Postal Regulatory Commission may change the list of
market-dominant products under section 3621 and the list
of competitive products under section 3631 by adding new
products to the lists, removing products from the lists, or
transferring products between the lists.
‘‘(b) CRITERIA.—All determinations by the Postal
Regulatory Commission under subsection (a) shall be
made in accordance with the following criteria:
‘‘(1) The market-dominant category of products
shall consist of each product in the sale of which the
Postal Service exercises sufficient market power that
it can effectively set the price of such product sub-
stantially above costs, raise prices significantly, de-
crease quality, or decrease output, without risk of
losing business to other firms offering similar prod-
ucts. The competitive category of products shall con-
sist of all other products.
‘‘(2) EXCLUSION OF PRODUCTS COVERED BY
POSTAL MONOPOLY.—A product covered by the post-
al monopoly shall not be subject to transfer under
this section from the market-dominant category of
mail. For purposes of the preceding sentence, the
term ‘product covered by the postal monopoly’
means any product the conveyance or transmission
of which is reserved to the United States under sec-
tion 1696 of title 18, subject to the same exception
as set forth in the last sentence of section 409(e)(1).
‘‘(3) ADDITIONAL CONSIDERATIONS.—In mak-
ing any decision under this section, due regard shall
be given to—
‘‘(A) the availability and nature of enter-
prises in the private sector engaged in the deliv-
ery of the product involved;
‘‘(B) the views of those who use the prod-
uct involved on the appropriateness of the pro-
posed action; and
‘‘(C) the likely impact of the proposed ac-
tion on small business concerns (within the
meaning of section 3641(h)).
‘‘(c) TRANSFERS OF SUBCLASSES AND OTHER SUB-
ORDINATE UNITS ALLOWABLE.—Nothing in this title
shall be considered to prevent transfers under this section
from being made by reason of the fact that they would
involve only some (but not all) of the subclasses or other
subordinate units of the class of mail or type of postal
service involved (without regard to satisfaction of min-
imum quantity requirements standing alone).
‘‘(d) NOTIFICATION
AND PUBLICATION REQUIRE-
MENTS.—
‘‘(1) NOTIFICATION REQUIREMENT.—The Post-
al Service shall, whenever it requests to add a prod-
uct or transfer a product to a different category, file
with the Postal Regulatory Commission and publish
in the Federal Register a notice setting out the basis
for its determination that the product satisfies the
criteria under subsection (b) and, in the case of a
request to add a product or transfer a product to
the competitive category of mail, that the product
meets the regulations promulgated by the Postal
Regulatory Commission pursuant to section 3633.
The provisions of section 504(g) shall be available
with respect to any information required to be filed.
‘‘(2) PUBLICATION REQUIREMENT.—The Postal
Regulatory Commission shall, whenever it changes
the list of products in the market-dominant or com-
petitive category of mail, prescribe new lists of prod-
ucts. The revised lists shall indicate how and when
any previous lists (including the lists under sections
3621 and 3631) are superseded, and shall be pub-
lished in the Federal Register.
‘‘(e) PROHIBITION.—Except as provided in section
3641, no product that involves the physical delivery of let-
ters, printed matter, or packages may be offered by the
Postal Service unless it has been assigned to the market-
dominant or competitive category of mail (as appropriate)
either—
‘‘(1) under this subchapter; or
‘‘(2) by or under any other provision of law.’’.
SEC. 204. REPORTING REQUIREMENTS AND RELATED PRO-
VISIONS.
(a) REDESIGNATION.—Chapter 36 of title 39, United
States Code (as in effect before the amendment made by
subsection (b)) is amended by striking the heading for
subchapter IV and inserting the following:
‘‘SUBCHAPTER V—POSTAL SERVICES,
COMPLAINTS, AND JUDICIAL REVIEW’’.
(b) REPORTS AND COMPLIANCE.—Chapter 36 of title
39, United States Code, is amended by inserting after sub-
chapter III the following:
‘‘SUBCHAPTER IV—REPORTING
REQUIREMENTS AND RELATED PROVISIONS
‘‘§ 3651. Annual reports by the Commission
‘‘(a) IN GENERAL.—The Postal Regulatory Commis-
sion shall submit an annual report to the President and
the Congress concerning the operations of the Commission
under this title, including the extent to which regulations
are achieving the objectives under sections 3622 and 3633,
respectively.
‘‘(b) ADDITIONAL INFORMATION.—In addition to the
information required under subsection (a), each report
under this section shall also include, with respect to the
period covered by such report, an estimate of the costs
incurred by the Postal Service in providing—
‘‘(1) postal services to areas of the Nation
where, in the judgment of the Postal Regulatory
Commission, the Postal Service either would not
provide services at all or would not provide such
services in accordance with the requirements of this
title if the Postal Service were not required to pro-
vide prompt, reliable, and efficient services to pa-
trons in all areas and all communities, including as
required under the first sentence of section 101(b);
‘‘(2) free or reduced rates for postal services as
required by this title; and
‘‘(3) other public services or activities which, in
the judgment of the Postal Regulatory Commission,
would not otherwise have been provided by the Post-
al Service but for the requirements of law.
The Commission shall detail the bases for its estimates
and the statutory requirements giving rise to the costs
identified in each report under this section.
‘‘(c) INFORMATION FROM POSTAL SERVICE.—The
Postal Service shall provide the Postal Regulatory Com-
mission with such information as may, in the judgment
of the Commission, be necessary in order for the Commis-
sion to prepare its reports under this section.
‘‘§ 3652. Annual reports to the Commission
‘‘(a) COSTS, REVENUES, AND RATES.—Except as
provided in subsection (c), the Postal Service shall, no
later than 90 days after the end of each year, prepare and
submit to the Postal Regulatory Commission a report (to-
gether with such nonpublic annex thereto as the Commis-
sion may require under subsection (e))—
‘‘(1) which shall analyze costs, revenues, and
rates in sufficient detail to demonstrate that the
rates in effect for all products during such year com-
plied with all applicable requirements of this title;
and
‘‘(2) which shall, for each market-dominant
product provided in such year, provide—
‘‘(A) market information, including mail
volumes; and
‘‘(B) measures of the quality of service af-
forded by the Postal Service in connection with
such product, including—
‘‘(i) the service standard applicable to
such product;
‘‘(ii) the level of service (described in
terms of speed of delivery and reliability)
provided; and
‘‘(iii) the degree of customer satisfac-
tion with the service provided.
Before submitting a report under this subsection (includ-
ing any annex thereto and the information required under
subsection (b)), the Postal Service shall have the informa-
tion contained in such report (and annex) audited by the
Inspector General. The results of any such audit shall be
submitted along with the report to which it pertains.
‘‘(b) INFORMATION RELATING TO WORKSHARE DIS-
COUNTS.
‘‘(1) IN GENERAL.—The Postal Service shall in-
clude, in each report under subsection (a), the fol-
lowing information with respect to each market-dom-
inant product for which a workshare discount was in
effect during the period covered by such report:
‘‘(A) The per-item cost avoided by the
Postal Service by virtue of such discount.
‘‘(B) The percentage of such per-item cost
avoided that the per-item workshare discount
represents.
‘‘(C) The per-item contribution made to in-
stitutional costs.
‘‘(2) WORKSHARE
DISCOUNT
DEFINED.—For
purposes of this subsection, the term ‘workshare dis-
count’ refers to presorting, barcoding, dropshipping,
and other similar discounts, as further defined under
regulations which the Postal Regulatory Commission
shall prescribe.
‘‘(c) MARKET TESTS.—In carrying out subsections
(a) and (b) with respect to experimental products offered
through market tests under section 3641 in a year, the
Postal Service—
‘‘(1) may report summary data on the costs,
revenues, and quality of service by market test; and
‘‘(2) shall report such data as the Postal Regu-
latory Commission requires.
‘‘(d) SUPPORTING MATTER.—The Postal Regulatory
Commission shall have access, in accordance with such
regulations as the Commission shall prescribe, to the
working papers and any other supporting matter of the
Postal Service and the Inspector General in connection
with any information submitted under this section.
‘‘(e) CONTENT AND FORM OF REPORTS.—
‘‘(1) IN
GENERAL.—The Postal Regulatory
Commission shall, by regulation, prescribe the con-
tent and form of the public reports (and any non-
public annex and supporting matter relating thereto)
to be provided by the Postal Service under this sec-
tion. In carrying out this subsection, the Commis-
sion shall give due consideration to—
‘‘(A) providing the public with adequate in-
formation to assess the lawfulness of rates
charged;
‘‘(B) avoiding unnecessary or unwarranted
administrative effort and expense on the part of
the Postal Service; and
‘‘(C) protecting the confidentiality of com-
mercially sensitive information.
‘‘(2) REVISED REQUIREMENTS.—The Commis-
sion may, on its own motion or on request of an in-
terested party, initiate proceedings (to be conducted
in accordance with regulations that the Commission
shall prescribe) to improve the quality, accuracy, or
completeness of Postal Service data required by the
Commission under this subsection whenever it shall
appear that—
‘‘(A) the attribution of costs or revenues to
products has become significantly inaccurate or
can be significantly improved;
‘‘(B) the quality of service data has be-
come significantly inaccurate or can be signifi-
cantly improved; or
‘‘(C) such revisions are, in the judgment of
the Commission, otherwise necessitated by the
public interest.
‘‘(f) CONFIDENTIAL INFORMATION.—
‘‘(1) IN GENERAL.—If the Postal Service deter-
mines that any document or portion of a document,
or other matter, which it provides to the Postal Reg-
ulatory Commission in a nonpublic annex under this
section or pursuant to subsection (d) contains infor-
mation which is described in section 410(c) of this
title, or exempt from public disclosure under section
552(b) of title 5, the Postal Service shall, at the
time of providing such matter to the Commission,
notify the Commission of its determination, in writ-
ing, and describe with particularity the documents
(or portions of documents) or other matter for which
confidentiality is sought and the reasons therefor.
‘‘(2) TREATMENT.—Any information or other
matter described in paragraph (1) to which the
Commission gains access under this section shall be
subject to paragraphs (2) and (3) of section 504(g)
in the same way as if the Commission had received
notification with respect to such matter under sec-
tion 504(g)(1).
‘‘(g) OTHER REPORTS.—The Postal Service shall
submit to the Postal Regulatory Commission, together
with any other submission that it is required to make
under this section in a year, copies of its then most
recent—
‘‘(1) comprehensive statement under section
2401(e);
‘‘(2) performance plan under section 2803; and
‘‘(3) program performance reports under sec-
tion 2804.
‘‘§ 3653. Annual determination of compliance
‘‘(a) OPPORTUNITY FOR PUBLIC COMMENT.—After
receiving the reports required under section 3652 for any
year, the Postal Regulatory Commission shall promptly
provide an opportunity for comment on such reports by
users of the mails, affected parties, and an officer of the
Commission who shall be required to represent the inter-
ests of the general public.
‘‘(b) DETERMINATION
OF COMPLIANCE
OR NON-
COMPLIANCE.—Not later than 90 days after receiving the
submissions required under section 3652 with respect to
a year, the Postal Regulatory Commission shall make a
written determination as to—
‘‘(1) whether any rates or fees in effect during
such year (for products individually or collectively)
were not in compliance with applicable provisions of
this chapter (or regulations promulgated there-
under);
‘‘(2) whether any performance goals established
under section 2803 or 2804 for such year were not
met; and
‘‘(3) whether any market-dominant product
failed to meet any service standard during such
year.
If, with respect to a year, no instance of noncompliance
is found under this subsection to have occurred in such
year, the written determination shall be to that effect.
‘‘(c) IF ANY NONCOMPLIANCE IS FOUND.—If, for a
year, a timely written determination of noncompliance is
made under subsection (b), the Postal Regulatory Com-
mission shall take appropriate action in accordance with
section 3662.
‘‘(d) REBUTTABLE PRESUMPTION.—A timely written
determination described in the last sentence of subsection
(b) shall, for purposes of any proceeding under section
3662, create a rebuttable presumption of compliance by
the Postal Service (with regard to the matters described
in paragraphs (1) through (3) of subsection (b)) during
the year to which such determination relates.’’.
SEC. 205. COMPLAINTS; APPELLATE REVIEW AND EN-
FORCEMENT.
Chapter 36 of title 39, United States Code, is amend-
ed by striking sections 3662 and 3663 and inserting the
following:
‘‘§ 3662. Rate and service complaints
‘‘(a) IN GENERAL.—Interested persons (including an
officer of the Postal Regulatory Commission representing
the interests of the general public) who believe the Postal
Service is not operating in conformance with the require-
ments of chapter 1, 4, or 6, or this chapter (or regulations
promulgated under any of those chapters) may lodge a
complaint with the Postal Regulatory Commission in such
form and manner as the Commission may prescribe.
‘‘(b) PROMPT RESPONSE REQUIRED.—