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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 
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 Com-
mission, 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
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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 
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 2007. 
‘‘(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 obli-
gations; 
‘‘(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
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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 
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)(A) Beginning with reports for the fiscal 
year 2007, 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
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the information listed in subsection (b) is fairly stated in 
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
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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).’’. 
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
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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.— 
‘‘(1) IN
GENERAL.—The Postal Regulatory 
Commission shall, within 90 days after receiving a 
complaint under subsection (a), either— 
‘‘(A) begin proceedings on such complaint; 
or 
‘‘(B) issue an order dismissing the com-
plaint (together with a statement of the reasons 
therefor). 
‘‘(2) TREATMENT OF COMPLAINTS NOT TIMELY 
ACTED ON.—For purposes of section 3663, any com-
plaint under subsection (a) on which the Commis-
sion fails to act in the time and manner required by 
paragraph (1) shall be treated in the same way as 
if it had been dismissed pursuant to an order issued 
by the Commission on the last day allowable for the 
issuance of such order under paragraph (1). 
‘‘(c) ACTION REQUIRED IF COMPLAINT FOUND TO 
BE JUSTIFIED.—If the Postal Regulatory Commission 
finds the complaint to be justified, it shall order that the
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Postal Service take such action as the Commission con-
siders appropriate in order to achieve compliance with the 
applicable requirements and to remedy the effects of any 
noncompliance (such as ordering unlawful rates to be ad-
justed to lawful levels, ordering the cancellation of market 
tests, ordering the Postal Service to discontinue providing 
loss-making products, or requiring the Postal Service to 
make up for revenue shortfalls in competitive products). 
‘‘(d) SUSPENSION AUTHORITY.—The Postal Regu-
latory Commission may suspend implementation of rates 
or classifications under section 3632(b)(3) for a limited 
period of time pending expedited proceedings under this 
section. In evaluating whether circumstances warrant sus-
pension, the Commission shall consider factors such as (1) 
whether there is a substantial likelihood that such rate or 
classification will violate the requirements of chapter 1, 
4, or 6, or this chapter (or regulations promulgated under 
any of those chapters), (2) whether any persons would suf-
fer substantial injury, loss, or damage absent a suspen-
sion, (3) whether the Postal Service or any other persons 
would suffer substantial injury, loss, or damage under a 
suspension, and (4) the public interest. 
‘‘(e) AUTHORITY TO ORDER FINES IN CASES OF DE-
LIBERATE NONCOMPLIANCE.—In addition, in cases of de-
liberate noncompliance by the Postal Service with the re-
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quirements of this title, the Postal Regulatory Commission 
may order, based on the nature, circumstances, extent, 
and seriousness of the noncompliance, a fine (in the 
amount specified by the Commission in its order) for each 
incidence of noncompliance. Fines resulting from the pro-
vision of competitive products shall be paid out of the 
Competitive Products Fund established in section 2011. 
All receipts from fines imposed under this subsection shall 
be deposited in the general fund of the Treasury of the 
United States. 
‘‘§ 3663. Appellate review 
‘‘A person adversely affected or aggrieved by a final 
order or decision of the Postal Regulatory Commission 
may, within 30 days after such order or decision becomes 
final, institute proceedings for review thereof by filing a 
petition in the United States Court of Appeals for the Dis-
trict of Columbia. The court shall review the order or deci-
sion in accordance with section 706 of title 5, and chapter 
158 and section 2112 of title 28, on the basis of the record 
before the Commission. For purposes of this section, the 
term ‘person’ includes the Postal Service. 
‘‘§ 3664. Enforcement of orders 
‘‘The several district courts have jurisdiction specifi-
cally to enforce, and to enjoin and restrain the Postal
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Service from violating, any order issued by the Postal Reg-
ulatory Commission.’’. 
SEC. 206. WORKSHARE DISCOUNTS. 
(a) IN GENERAL.—Title 39, United States Code, is 
amended by adding after section 3686 (as added by sec-
tion 406) the following: 
‘‘§ 3687. Workshare discounts 
‘‘(a) IN GENERAL.—As part of the regulations estab-
lished under section 3622(a), the Postal Regulatory Com-
mission shall establish rules for workshare discounts that 
ensure that such discounts do not exceed the cost that the 
Postal Service avoids as the result of workshare activity, 
unless— 
‘‘(1) the discount is— 
‘‘(A) associated with a new postal service, 
a change to an existing postal service, or a new 
workshare initiative related to an existing postal 
service; and 
‘‘(B) necessary to induce mailer behavior 
that furthers the economically efficient oper-
ation of the Postal Service and the portion of 
the discount in excess of the cost that the Post-
al Service avoids as a result of the workshare 
activity will be phased out over a limited period 
of time;
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‘‘(2) a reduction in the discount would— 
‘‘(A) lead to a loss of volume in the af-
fected category or subclass of mail and reduce 
the aggregate contribution to the institutional 
costs of the Postal Service from the category or 
subclass subject to the discount below what it 
otherwise would have been if the discount had 
not been reduced to costs avoided; 
‘‘(B) result in a further increase in the 
rates paid by mailers not able to take advan-
tage of the discount; or 
‘‘(C) impede the efficient operation of the 
Postal Service; 
‘‘(3) the amount of the discount above costs 
avoided— 
‘‘(A) is necessary to mitigate rate shock; 
and 
‘‘(B) will be phased out over time; or 
‘‘(4) the discount is provided in connection with 
subclasses of mail consisting exclusively of mail mat-
ter of educational, cultural, scientific, or informa-
tional value. 
‘‘(b) REPORT.—Whenever the Postal Service estab-
lishes or maintains a workshare discount, the Postal Serv-
ice shall, at the time it publishes the workshare discount
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rate, submit to the Postal Regulatory Commission a de-
tailed report that— 
‘‘(1) explains the Postal Service’s reasons for 
establishing or maintaining the rate; 
‘‘(2) sets forth the data, economic analyses, and 
other information relied on by the Postal Service to 
justify the rate; and 
‘‘(3) certifies that the discount will not ad-
versely affect rates or services provided to users of 
postal services who do not take advantage of the dis-
count rate. 
‘‘(c) DEFINITION.—For purposes of this section, the 
term ‘workshare discount’ refers to rate discounts pro-
vided to mailers for the presorting, prebarcoding, han-
dling, or transportation of mail, as further defined by the 
Postal Regulatory Commission under section 3622(a).’’. 
(b) CLERICAL AMENDMENT.—The analysis for chap-
ter 36 of title 39, United States Code (as amended by 
section 207) is amended by adding after the item relating 
to section 3686 the following: 
‘‘3687. Workshare discounts.’’. 
SEC. 207. CLERICAL AMENDMENT. 
Chapter 36 of title 39, United States Code, is amend-
ed by striking the heading and analysis for such chapter 
and inserting the following:
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‘‘CHAPTER 36—POSTAL RATES, CLASSES 
AND SERVICES 
‘‘SUBCHAPTER I—PROVISIONS RELATING TO MARKET-DOMINANT PRODUCTS 
‘‘Sec. 
‘‘3621. Applicability; definitions. 
‘‘3622. Modern rate regulation. 
‘‘3626. Reduced rates. 
‘‘3627. Adjusting free rates. 
‘‘3629. Reduced rates for voter registration purposes. 
‘‘SUBCHAPTER II—PROVISIONS RELATING TO COMPETITIVE PRODUCTS 
‘‘3631. Applicability; definitions and updates. 
‘‘3632. Action of the Governors. 
‘‘3633. Provisions applicable to rates for competitive products. 
‘‘3634. Assumed Federal income tax on competitive products. 
‘‘SUBCHAPTER III—PROVISIONS RELATING TO EXPERIMENTAL AND NEW 
PRODUCTS 
‘‘3641. Market tests of experimental products. 
‘‘3642. New products and transfers of products between the market-dominant 
and competitive categories of mail. 
‘‘SUBCHAPTER IV—REPORTING REQUIREMENTS AND RELATED PROVISIONS 
‘‘3651. Annual reports by the Commission. 
‘‘3652. Annual reports to the Commission. 
‘‘3653. Annual determination of compliance. 
‘‘3654. Additional financial reporting. 
‘‘SUBCHAPTER V—POSTAL SERVICES, COMPLAINTS, AND JUDICIAL REVIEW 
‘‘3661. Postal services. 
‘‘3662. Rate and service complaints. 
‘‘3663. Appellate review. 
‘‘3664. Enforcement of orders. 
‘‘SUBCHAPTER VI—GENERAL 
‘‘3681. Reimbursement. 
‘‘3682. Size and weight limits. 
‘‘3683. Uniform rates for books; films, other materials. 
‘‘3684. Limitations. 
‘‘3685. Filing of information relating to periodical publications. 
‘‘3686. Bonus authority.’’.
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TITLE III—PROVISIONS RELAT-
ING TO FAIR COMPETITION 
SEC. 
301. 
POSTAL 
SERVICE 
COMPETITIVE 
PRODUCTS 
FUND. 
(a) PROVISIONS RELATING
TO POSTAL SERVICE 
COMPETITIVE PRODUCTS FUND
AND RELATED MAT-
TERS.— 
(1) IN
GENERAL.—Chapter 20 of title 39, 
United States Code, is amended by adding at the 
end the following: 
‘‘§ 2011. Provisions relating to competitive products 
‘‘(a) There is established in the Treasury of the 
United States a revolving fund, to be called the Postal 
Service Competitive Products Fund, which shall be avail-
able to the Postal Service without fiscal year limitation 
for the payment of— 
‘‘(1) costs attributable to competitive products; 
and 
‘‘(2) all other costs incurred by the Postal Serv-
ice, to the extent allocable to competitive products. 
For purposes of this subsection, the term ‘costs attrib-
utable’ has the meaning given such term by section 3631. 
‘‘(b) There shall be deposited in the Competitive 
Products Fund, subject to withdrawal by the Postal Serv-
ice—
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‘‘(1) revenues from competitive products; 
‘‘(2) amounts received from obligations issued 
by the Postal Service under subsection (e); 
‘‘(3) interest and dividends earned on invest-
ments of the Competitive Products Fund; and 
‘‘(4) any other receipts of the Postal Service 
(including from the sale of assets), to the extent al-
locable to competitive products. 
‘‘(c) If the Postal Service determines that the moneys 
of the Competitive Products Fund are in excess of current 
needs, it may request the investment of such amounts as 
it deems advisable by the Secretary of the Treasury in ob-
ligations of, or obligations guaranteed by, the Government 
of the United States, and, with the approval of the Sec-
retary, in such other obligations or securities as it deems 
appropriate. 
‘‘(d) With the approval of the Secretary of the Treas-
ury, the Postal Service may deposit moneys of the Com-
petitive Products Fund in any Federal Reserve bank, any 
depository for public funds, or in such other places and 
in such manner as the Postal Service and the Secretary 
may mutually agree. 
‘‘(e)(1) Subject to the limitations specified in section 
2005(a), the Postal Service is authorized to borrow money 
and to issue and sell such obligations as it determines nec-
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essary to provide for competitive products and deposit 
such amounts in the Competitive Products Fund. Any 
such borrowings by the Postal Service shall be supported 
and serviced by the revenues and receipts from competitive 
products and the assets related to the provision of com-
petitive products (as determined under subsection (h) or, 
for purposes of any period before accounting practices and 
principles under subsection (h) have been established and 
applied, the best information available from the Postal 
Service, including the audited statements required by sec-
tion 2008(e), but in either case subject to paragraph (5)). 
‘‘(2) The Postal Service may enter into binding cov-
enants with the holders of such obligations, and with the 
trustee, if any, under any agreement entered into in con-
nection with the issuance thereof with respect to— 
‘‘(A) the establishment of reserve, sinking, and 
other funds; 
‘‘(B) application and use of revenues and re-
ceipts of the Competitive Products Fund; 
‘‘(C) stipulations concerning the subsequent 
issuance of obligations or the execution of leases or 
lease purchases relating to properties of the Postal 
Service; and
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‘‘(D) such other matters as the Postal Service 
considers necessary or desirable to enhance the mar-
ketability of such obligations. 
‘‘(3) The obligations issued by the Postal Service 
under this section— 
‘‘(A) shall be in such forms and denominations; 
‘‘(B) shall be sold at such times and in such 
amounts; 
‘‘(C) shall mature at such time or times; 
‘‘(D) shall be sold at such prices; 
‘‘(E) shall bear such rates of interest; 
‘‘(F) may be redeemable before maturity in 
such manner, at such times, and at such redemption 
premiums; 
‘‘(G) may be entitled to such relative priorities 
of claim on the assets of the Postal Service with re-
spect to principal and interest payments; and 
‘‘(H) shall be subject to such other terms and 
conditions; 
as the Postal Service determines. 
‘‘(4) Obligations issued by the Postal Service under 
this subsection— 
‘‘(A) shall be negotiable or nonnegotiable and 
bearer or registered instruments, as specified therein 
and in any indenture or covenant relating thereto;
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‘‘(B) shall contain a recital that they are issued 
under this section, and such recital shall be conclu-
sive evidence of the regularity of the issuance and 
sale of such obligations and of their validity; 
‘‘(C) shall be lawful investments and may be ac-
cepted as security for all fiduciary, trust, and public 
funds, the investment or deposit of which shall be 
under the authority or control of any officer or agen-
cy of the Government of the United States, and the 
Secretary of the Treasury or any other officer or 
agency having authority over or control of any such 
fiduciary, trust, or public funds, may at any time 
sell any of the obligations of the Postal Service ac-
quired under this section; 
‘‘(D) shall not be exempt either as to principal 
or interest from any taxation now or hereafter im-
posed by any State or local taxing authority; and 
‘‘(E) except as provided in section 2006(c) of 
this title, shall not be obligations of, nor shall pay-
ment of the principal thereof or interest thereon be 
guaranteed by, the Government of the United 
States, and the obligations shall so plainly state. 
‘‘(5) The Postal Service shall make payments of prin-
cipal, or interest, or both on obligations issued under this 
section out of revenues and receipts from competitive
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products and assets related to the provision of competitive 
products (as determined under subsection (h) or, for pur-
poses of any period before accounting practices and prin-
ciples under subsection (h) have been established and ap-
plied, the best information available, including the audited 
statements required by section 2008(e)). For purposes of 
this subsection, the total assets of the Competitive Prod-
ucts Fund shall be the greater of— 
‘‘(A) the assets related to the provision of com-
petitive products; or 
‘‘(B) the percentage of total Postal Service rev-
enues and receipts from competitive products times 
the total assets of the Postal Service. 
‘‘(f) The receipts and disbursements of the Competi-
tive Products Fund shall be accorded the same budgetary 
treatment as is accorded to receipts and disbursements of 
the Postal Service Fund under section 2009a. 
‘‘(g) A judgment against the Postal Service or the 
Government of the United States (or settlement of a 
claim) shall, to the extent that it arises out of activities 
of the Postal Service in the provision of competitive prod-
ucts, be paid out of the Competitive Products Fund. 
‘‘(h)(1) The Secretary of the Treasury, in consulta-
tion with the Postal Service and an independent, certified 
public accounting firm and such other advisors as the Sec-
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retary considers appropriate, shall develop recommenda-
tions regarding— 
‘‘(A) the accounting practices and principles 
that should be followed by the Postal Service with 
the objectives of (i) identifying and valuing the as-
sets and liabilities of the Postal Service associated 
with providing, and the capital and operating costs 
incurred by the Postal Service in providing, competi-
tive products, and (ii) subject to subsection (e)(5), 
preventing the subsidization of such products by 
market-dominant products; and 
‘‘(B) the substantive and procedural rules that 
should be followed in determining the Postal Serv-
ice’s assumed Federal income tax on competitive 
products income for any year (within the meaning of 
section 3634). 
Such recommendations shall be submitted to the Postal 
Regulatory Commission no earlier than 6 months, and no 
later than 12 months, after the effective date of this sec-
tion. 
‘‘(2)(A) Upon receiving the recommendations of the 
Secretary of the Treasury under paragraph (1), the Com-
mission shall give interested parties, including the Postal 
Service, users of the mails, and an officer of the Commis-
sion who shall be required to represent the interests of