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‘‘(1) without a break in time, except as provided
under section 8117(b), unless controverted under regu-
lations of the Secretary’’.
SEC. 902. DISABILITY RETIREMENT FOR POSTAL EMPLOY-
EES.
(a) TOTAL DISABILITY.—Section 8105 of title 5,
United States Code, is amended—
(1) in subsection (a), by adding at the end the
following: ‘‘This section applies to a Postal Service
employee, except as provided under subsection (c).’’;
and
(2) by adding at the end the following:
‘‘(c)(1) In this subsection, the term ‘retirement age’ has
the meaning given under section 216(l)(1) of the Social Se-
curity Act (42 U.S.C. 416(l)(1)).
‘‘(2) Notwithstanding any other provision of law, for
any injury occurring on or after the date of enactment of
the Postal Accountability and Enhancement Act, and for
any new claim for a period of disability commencing on
or after that date, the compensation entitlement for total
disability is converted to 50 percent of the monthly pay of
the employee on the later of—
‘‘(A) the date on which the injured employee
reaches retirement age; or
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‘‘(B) 1 year after the employee begins receiving
compensation.’’.
(b) PARTIAL DISABILITY.—Section 8106 of title 5,
United States Code, is amended—
(1) in subsection (a), by adding at the end the
following: ‘‘This section applies to a Postal Service
employee, except as provided under subsection (d).’’;
and
(2) by adding at the end the following:
‘‘(d)(1) In this subsection, the term ‘retirement age’ has
the meaning given under section 216(l)(1) of the Social Se-
curity Act (42 U.S.C. 416(l)(1)).
‘‘(2) Notwithstanding any other provision of law,
for any injury occurring on or after the date of enact-
ment of this subsection, and for any new claim for a
period of disability commencing on or after that date,
the compensation entitlement for partial disability is
converted to 50 percent of the difference between the
monthly pay of an employee and the monthly wage
earning capacity of the employee after the beginning
of partial disability on the later of—
‘‘(A) the date on which the injured employee
reaches retirement age; or
‘‘(B) 1 year after the employee begins re-
ceiving compensation.’’.
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TITLE X—MISCELLANEOUS
SEC. 1001. EMPLOYMENT OF POSTAL POLICE OFFICERS.
Section 404 of title 39, United States Code (as amend-
ed by this Act), is further amended by adding at the end
the following:
‘‘(d) The Postal Service may employ guards for all
buildings and areas owned or occupied by the Postal Service
or under the charge and control of the Postal Service, and
may give such guards, with respect to such property, any
of the powers of special policemen provided under section
1315 of title 40. The Postmaster General, or the designee
of the Postmaster General, may take any action that the
Secretary of Homeland Security may take under section
1315 of title 40, with respect to that property.
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—
(i) by striking paragraph (1), and by redes-
ignating paragraphs (2) through (4) as para-
graphs (1) through (3), respectively; and
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(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 insert-
ing ‘‘(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 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 insert-
ing ‘‘(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 strik-
ing ‘‘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.
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SEC. 1003. REDUCED RATES.
Section 3626 of title 39, United States Code, is
amended—
(1) in subsection (a), by striking all before para-
graph (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 ‘reg-
ular-rate category’ means any class of mail or kind of mail-
er, 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 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
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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 (ex-
cluding any copies subject to paragraph (3)) shall be subject
to rates of postage provided for under this paragraph.
‘‘(B) The rates of postage applicable to mail under this
paragraph 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 de-
signed primarily for free circulation or for circulation at
nominal rates, or fails to meet the requirements of former
section 4354(a)(5).’’.
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SEC. 1004. SENSE OF CONGRESS REGARDING POSTAL SERV-
ICE PURCHASING 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 revision or replacement of such poli-
cies, such as through the use of competitive contract
award procedures, effective dispute resolution mecha-
nisms, and socioeconomic programs; and
(2) implement commercial best practices in Post-
al Service purchasing policies to achieve greater effi-
ciency and cost savings as recommended in July 2003
by the President’s Commission on the United States
Postal Service, in a manner that is compatible with
the fair and consistent treatment of suppliers and
contractors, as befitting an establishment in the
United States Government.
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)’’;
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(3) in paragraph (6), by striking ‘‘only’’;
(4) 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’’;
(5) 
in 
paragraph 
(11), 
by 
striking
‘‘(g)(1)(D)(ii)’’ and inserting ‘‘(g)(1)(A)(iv)(II)’’;
(6) in paragraph (13)—
(A) in subparagraph (A)—
(i) by striking ‘‘clause (i) or (ii) of
subsection (g)(1)(D)’’ and inserting ‘‘sub-
clause 
(I) 
or 
(II) 
of 
subsection
(g)(1)(A)(iv)’’; and
(ii) by striking ‘‘and’’ after the semi-
colon;
(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 quali-
fied existing mainline carriers as a result of
merger or sale;’’;
(7) in paragraph (18), by striking ‘‘bush routes’’
and inserting ‘‘routes’’; and
(8) in paragraph (22), by striking ‘‘bush routes’’
and inserting ‘‘routes’’.
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(b) NONPRIORITY BYPASS MAIL.—Section 5402(g) of
title 39, United States Code, is amended—
(1) in paragraph (2)(C), by inserting ‘‘or a des-
tination city’’ after ‘‘acceptance point and a hub’’;
(2) 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 effective date of that
change shall be based on the passenger and
freight shares to the destinations of the affected
hub or hubs resulting in the new hub.’’; and
(3) 
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 subsection (g)(1) shall be exempt from
the requirements under paragraphs (1)(B) and (2)(A)
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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 passenger 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 ad-
ditional 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 nonpas-
senger carrier servicing that route that trans-
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ports 25 percent or more of the total nonmail
freight under subsection (i)(1).
‘‘(ii) Additional 121 bush passenger carriers en-
tering 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 air-
craft providing 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).
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(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 insert-
ing ‘‘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 para-
graph (5).
(g) TECHNICAL AND CONFORMING AMENDMENT.—Sec-
tion 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 July 1, 2006.
Attest:
Secretary.