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(D) minimize areas of inefficiency or waste 
and improve operations involved in the collec-
tion, processing, or delivery of mail; and 
(E) impact other matters that the Comp-
troller General or the research organization de-
termines are relevant to evaluating a viable 
long-term business model for the Postal Service. 
(3) EXPERIENCES OF OTHER COUNTRIES.—In 
preparing the report required by subsection (a), the 
research organization shall comprehensively and 
quantitatively investigate the experiences of other in-
dustrialized countries that have transformed the na-
tional post office. The research organization shall 
undertake such original research as it deems nec-
essary. In each case, the research organization shall 
describe as fully as possible the costs and benefits of 
transformation of the national post office on all af-
fected parties and shall identify any lessons that for-
eign experience may imply for each strategy identi-
fied by the research organization. 
(d) OUTSIDE EXPERTS.—In preparing its study, the 
research organization may retain the services of additional 
experts and consultants. 
(e) CONSULTATION.—In preparing its report, the re-
search organization shall consult fully with the Postal
120
Service, the Postal Regulatory Commission, other Federal 
agencies, postal employee unions and management asso-
ciations, mailers, private companies that provide delivery 
services, and the general public. The research organization 
shall include with its final report a copy of all formal writ-
ten comments received under this subsection. 
(f) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated from the Postal Service 
Fund such sums as may be necessary to carry out this 
section.
SEC. 711. STUDY ON CERTAIN PROPOSED AMENDMENTS. 
The Government Accountability Office shall study 
and, within 12 months after the date of the enactment 
of this Act, submit to the Congress a report on sections 
805 and 807 of H.R. 22 (109th Congress), as introduced. 
Such report shall include the following: 
(1) A description of the efficiencies of the cur-
rent system under section 5402 of title 39, United 
States Code. 
(2) The potential for cost savings to the United 
States Postal Service if the Postal Service, rather 
than the Department of Transportation, were to ad-
minister international mail carriage.
121
(3) The potential for harm to domestic air car-
riers and American workers currently employed by 
domestic air carriers. 
(4) The potential loss of revenue to domestic air 
carriers and American workers currently employed 
by domestic air carriers. 
(5) The process by which the United States 
Postal Service would administer any changes in cur-
rent law. 
(6) The process by which the Department of 
Transportation administers current law. 
(7) The potential for change in protection of 
national security by carriage by foreign carriers of 
international mail to and from the United States. 
SEC. 712. DEFINITION. 
For purposes of this title, the term ‘‘Board of Gov-
ernors’’ has the meaning given such term by section 102 
of title 39, United States Code. 
TITLE 
VIII—MISCELLANEOUS; 
TECHNICAL 
AND 
CON-
FORMING AMENDMENTS 
SEC. 801. EMPLOYMENT OF POSTAL POLICE OFFICERS. 
Section 3061 of title 18, United States Code, is 
amended by adding at the end the following:
122
‘‘(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 
the 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 United 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 regula-
tions 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
123
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 prescribe regulations necessary for the protection and 
administration of property owned or occupied by the Post-
al Service and persons on the property. The regulations 
may include reasonable penalties, within the limits pre-
scribed in subparagraph (B), for violations of the regula-
tions. 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. 802. 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 fol-
lowing: 
‘‘(6) For purposes of paragraph (5), any appeal re-
ceived by the Commission shall—
‘‘(A) if sent to the Commission through the 
mails, be considered 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
124
‘‘(B) if otherwise lawfully delivered to the Com-
mission, be considered to have been received on the 
date determined based on any appropriate docu-
mentation or other indicia (as determined under reg-
ulations of the Commission).’’. 
(b) EFFECTIVE DATE.—This section and the amend-
ments 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. 803. PROVISIONS RELATING TO BENEFITS UNDER 
CHAPTER 81 OF TITLE 5, UNITED STATES 
CODE, FOR OFFICERS AND EMPLOYEES OF 
THE FORMER POST OFFICE DEPARTMENT. 
(a) IN GENERAL.—Section 8 of the Postal Reorga-
nization Act (39 U.S.C. 1001 note) is amended by insert-
ing ‘‘(a)’’ after ‘‘8.’’ and by adding at the end the fol-
lowing: 
‘‘(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 offi-
cer or employee of the former Post Office Department, 
have the same authorities and responsibilities as it has
125
with respect to an officer or employee of the Postal Service 
receiving such benefits.’’. 
(b) EFFECTIVE DATE.—This section and the amend-
ments made by this section shall be effective as of the first 
day of the fiscal year in which this Act is enacted. 
SEC. 804. 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 amend-
ed—
(i) by striking paragraph (1), and by re-
designating 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 in-
serting ‘‘(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
126
(a)(4) of this section, or’’ and inserting ‘‘by contract 
under subsection (a)(3) of this section or’’. 
(b) ELIMINATING RESTRICTION ON LENGTH OF CON-
TRACTS.—(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 deter-
mined by the Postal Service to be advisable or appro-
priate)’’. 
(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 strik-
ing ‘‘for periods of not in excess of 4 years’’. 
(c) CLERICAL AMENDMENT.—The analysis for part 
V of title 39, United States Code, is amended by repealing 
the item relating to chapter 52. 
SEC. 805. INVESTMENTS. 
Subsection (c) of section 2003 of title 39, United 
States Code, is amended—
(1) by striking ‘‘(c) If’’ and inserting ‘‘(c)(1) 
Except as provided in paragraph (2), if’’; and 
(2) by adding at the end the following:
127
‘‘(2)(A) Nothing in this section shall be considered 
to authorize any investment in any obligations or securi-
ties of a commercial entity. 
‘‘(B) For purposes of this paragraph, the term ‘com-
mercial entity’ means any corporation, company, associa-
tion, partnership, joint stock company, firm, society, or 
other similar entity, as further defined under regulations 
prescribed by the Postal Regulatory Commission.’’.
SEC. 806. 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 established so that postage on each mailing
128
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 post-
age 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 publica-
tion (excluding any copies subject to paragraph (3)) shall 
be subject to rates of postage provided for under this para-
graph. 
‘‘(B) The rates of postage applicable to mail under 
this paragraph shall be established in accordance with sec-
tion 3622. 
‘‘(C) This paragraph shall not apply with respect to 
an issue of a publication unless the total paid circulation
129
of such issue outside the county of publication (not count-
ing 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 publica-
tions 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 cir-
culation at nominal rates, or fails to meet the require-
ments of former section 4354(a)(5).’’. 
SEC. 807. HAZARDOUS MATTER. 
(a) NONMAILABILITY GENERALLY.—Section 3001 of 
title 39, United States Code, is amended—
(1) by redesignating subsection (n) as sub-
section (o); and 
(2) by inserting after subsection (m) the fol-
lowing: 
‘‘(n)(1) Except as otherwise authorized by law or reg-
ulations of the Postal Service, hazardous material is non-
mailable. 
‘‘(2) In this subsection, the term ‘hazardous material’ 
means a substance or material designated by the Secretary 
of Transportation under section 5103(a) of title 49.’’.
130
(b) MAILABILITY.—Chapter 30 of title 39, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘§ 3018. Hazardous material 
‘‘(a) IN GENERAL.—The Postal Service shall pre-
scribe regulations for the safe transportation of hazardous 
material in the mail. 
‘‘(b) PROHIBITIONS.—No person may—
‘‘(1) mail or cause to be mailed hazardous ma-
terial that has been declared by statute or Postal 
Service regulation to be nonmailable; 
‘‘(2) mail or cause to be mailed hazardous ma-
terial 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 con-
tainer, packaging 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 stand-
ards for a container, packaging kit, or similar 
device used for the mailing of hazardous mate-
rial.