the Commission shall by regulation prescribe, and in 
sufficient detail to demonstrate that all products 
during such year complied with all applicable re-
quirements of this title; and 
‘‘(2) which shall, for each market-dominant 
product provided in such year, provide— 
‘‘(A) product 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 level of service (described in 
terms of speed of delivery and reliability) 
provided; and 
‘‘(ii) the degree of customer satisfac-
tion with the service provided. 
The Inspector General shall regularly audit the data 
collection systems and procedures utilized in col-
lecting information and preparing such report (in-
cluding any annex thereto and the information re-
quired under subsection (b)). The results of any 
such audit shall be submitted to the Postal Service 
and the Postal Regulatory Commission. 
‘‘(b) INFORMATION RELATING TO WORKSHARE DIS-
COUNTS.—The Postal Service shall include, in each report 
VerDate Aug 31 2005 
05:09 Dec 08, 2006
Jkt 059200
PO 00000
Frm 00035
Fmt 6652
Sfmt 6201
E:\BILLS\H6407.IH
H6407
hmoore on PROD1PC68 with HMBILLS
under subsection (a), the following information with re-
spect to each market-dominant product for which a 
workshare discount was in effect during the period covered 
by such report: 
‘‘(1) The per-item cost avoided by the Postal 
Service by virtue of such discount. 
‘‘(2) The percentage of such per-item cost 
avoided that the per-item workshare discount rep-
resents. 
‘‘(3) The per-item contribution made to institu-
tional costs. 
‘‘(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 shall— 
‘‘(1) report data on the costs, revenues, and 
quality of service by market test, which may be re-
ported in summary form; and 
‘‘(2) report such data as the Postal Regulatory 
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 
VerDate Aug 31 2005 
05:09 Dec 08, 2006
Jkt 059200
PO 00000
Frm 00036
Fmt 6652
Sfmt 6201
E:\BILLS\H6407.IH
H6407
hmoore on PROD1PC68 with HMBILLS
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 to the 
report) to be provided by the Postal Service under 
this section. In carrying out this subsection, the 
Commission shall give due consideration to— 
‘‘(A) providing the public with timely, ade-
quate information 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 
VerDate Aug 31 2005 
05:09 Dec 08, 2006
Jkt 059200
PO 00000
Frm 00037
Fmt 6652
Sfmt 6201
E:\BILLS\H6407.IH
H6407
hmoore on PROD1PC68 with HMBILLS
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 under subsection (d) contains information 
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 writing, and de-
scribe with particularity the documents (or portions 
of documents) or other matter for which confiden-
tiality is sought and the reasons therefor. 
VerDate Aug 31 2005 
05:09 Dec 08, 2006
Jkt 059200
PO 00000
Frm 00038
Fmt 6652
Sfmt 6201
E:\BILLS\H6407.IH
H6407
hmoore on PROD1PC68 with HMBILLS
‘‘(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 the Postal Service is re-
quired 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. 
VerDate Aug 31 2005 
05:09 Dec 08, 2006
Jkt 059200
PO 00000
Frm 00039
Fmt 6652
Sfmt 6201
E:\BILLS\H6407.IH
H6407
hmoore on PROD1PC68 with HMBILLS
‘‘(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); or 
‘‘(2) whether any service standards in effect 
during such year were not met. 
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) NONCOMPLIANCE WITH REGARD TO RATES OR 
SERVICES.—If, for a year, a timely written determination 
of noncompliance is made under subsection (b), the Postal 
Regulatory Commission shall take appropriate action in 
accordance with subsections (c) and (e) of section 3662 
(as if a complaint averring such noncompliance had been 
duly filed and found under such section to be justified). 
‘‘(d) REVIEW OF PERFORMANCE GOALS.—The Postal 
Regulatory Commission shall also evaluate annually 
whether the Postal Service has met the goals established 
VerDate Aug 31 2005 
05:09 Dec 08, 2006
Jkt 059200
PO 00000
Frm 00040
Fmt 6652
Sfmt 6201
E:\BILLS\H6407.IH
H6407
hmoore on PROD1PC68 with HMBILLS
under sections 2803 and 2804, and may provide rec-
ommendations to the Postal Service related to the protec-
tion or promotion of public policy objectives set out in this 
title. 
‘‘(e) 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 
under paragraphs (1) and (2) of subsection (b)) during 
the year to which such determination relates. 
‘‘§ 3654. Additional financial reporting 
‘‘(a) ADDITIONAL FINANCIAL REPORTING.— 
‘‘(1) IN
GENERAL.—The Postal Service shall 
file with the Postal Regulatory Commission begin-
ning with the first full fiscal year following the effec-
tive date of this section— 
‘‘(A) within 40 days after the end of each 
fiscal quarter, a quarterly report containing the 
information required by the Securities and Ex-
change Commission to be included in quarterly 
reports under sections 13 and 15(d) of the Se-
curities Exchange Act of 1934 (15 U.S.C. 78m, 
78o(d)) on Form 10–Q, as such Form (or any 
VerDate Aug 31 2005 
05:09 Dec 08, 2006
Jkt 059200
PO 00000
Frm 00041
Fmt 6652
Sfmt 6201
E:\BILLS\H6407.IH
H6407
hmoore on PROD1PC68 with HMBILLS
successor form) may be revised from time to 
time; 
‘‘(B) within 60 days after the end of each 
fiscal year, an annual report containing the in-
formation required by the Securities and Ex-
change Commission to be included in annual re-
ports under such sections on Form 10–K, as 
such Form (or any successor form) may be re-
vised from time to time; and 
‘‘(C) periodic reports within the time frame 
and containing the information prescribed in 
Form 8–K of the Securities and Exchange 
Commission, as such Form (or any successor 
form) may be revised from time to time. 
‘‘(2) REGISTRANT DEFINED.—For purposes of 
defining the reports required by paragraph (1), the 
Postal Service shall be deemed to be the ‘registrant’ 
described in the Securities and Exchange Commis-
sion Forms, and references contained in such Forms 
to Securities and Exchange Commission regulations 
are incorporated herein by reference, as amended. 
‘‘(3) INTERNAL CONTROL REPORT.—For pur-
poses of defining the reports required by paragraph 
(1)(B), the Postal Service shall comply with the 
rules prescribed by the Securities and Exchange 
VerDate Aug 31 2005 
05:09 Dec 08, 2006
Jkt 059200
PO 00000
Frm 00042
Fmt 6652
Sfmt 6201
E:\BILLS\H6407.IH
H6407
hmoore on PROD1PC68 with HMBILLS
Commission implementing section 404 of the Sar-
banes-Oxley Act of 2002 (15 U.S.C. 7262), begin-
ning with the annual report for fiscal year 2010. 
‘‘(b) FINANCIAL REPORTING.— 
‘‘(1) The reports required by subsection 
(a)(1)(B) shall include, with respect to the Postal 
Service’s pension and post-retirement health obliga-
tions— 
‘‘(A) the funded status of the Postal Serv-
ice’s pension and postretirement health obliga-
tions; 
‘‘(B) components of the net change in the 
fund balances and obligations and the nature 
and cause of any significant changes; 
‘‘(C) components of net periodic costs; 
‘‘(D) cost methods and assumptions under-
lying the relevant actuarial valuations; 
‘‘(E) the effect of a one-percentage point 
increase in the assumed health care cost trend 
rate for each future year on the service and in-
terest costs components of net periodic post-
retirement health cost and the accumulated ob-
ligation; 
‘‘(F) actual contributions to and payments 
from the funds for the years presented and the 
VerDate Aug 31 2005 
05:09 Dec 08, 2006
Jkt 059200
PO 00000
Frm 00043
Fmt 6652
Sfmt 6201
E:\BILLS\H6407.IH
H6407
hmoore on PROD1PC68 with HMBILLS
estimated future contributions and payments 
for each of the following 5 years; 
‘‘(G) the composition of plan assets re-
flected in the fund balances; and 
‘‘(H) the assumed rate of return on fund 
balances and the actual rates of return for the 
years presented. 
‘‘(2) The Office of Personnel Management shall 
provide the data listed under paragraph (1) to the 
Postal Service not later than 30 days after the end 
of each fiscal year. 
‘‘(3)(A) Beginning with reports for the fiscal 
year 2010, for purposes of the reports required 
under subparagraphs (A) and (B) of subsection 
(a)(1), the Postal Service shall include segment re-
porting. 
‘‘(B) The Postal Service shall determine the ap-
propriate segment reporting under subparagraph (A) 
after consultation with the Postal Regulatory Com-
mission. 
‘‘(c) TREATMENT.—For purposes of the reports re-
quired by subsection (a)(1)(B), the Postal Service shall 
obtain an opinion from an independent auditor on whether 
the information listed in subsection (b) is fairly stated in 
VerDate Aug 31 2005 
05:09 Dec 08, 2006
Jkt 059200
PO 00000
Frm 00044
Fmt 6652
Sfmt 6201
E:\BILLS\H6407.IH
H6407
hmoore on PROD1PC68 with HMBILLS
all material respects, either in relation to the basic finan-
cial statements as a whole or on a stand-alone basis. 
‘‘(d) SUPPORTING MATTER.—The Postal Regulatory 
Commission shall have access to the audit documentation 
and any other supporting matter of the Postal Service and 
its independent auditor in connection with any information 
submitted under this section. 
‘‘(e) REVISED REQUIREMENTS.—The Postal Regu-
latory Commission may, on its own motion or on request 
of an interested party, initiate proceedings (to be con-
ducted in accordance with regulations that the Commis-
sion shall prescribe) to improve the quality, accuracy, or 
completeness of Postal Service data required under this 
section whenever it shall appear that— 
‘‘(1) the data have become significantly inac-
curate or can be significantly improved; or 
‘‘(2) those revisions are, in the judgment of the 
Commission, otherwise necessitated by the public in-
terest. 
‘‘(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-
VerDate Aug 31 2005 
05:09 Dec 08, 2006
Jkt 059200
PO 00000
Frm 00045
Fmt 6652
Sfmt 6201
E:\BILLS\H6407.IH
H6407
hmoore on PROD1PC68 with HMBILLS