‘‘(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
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 action may include ordering unlawful
rates to be adjusted to lawful levels, ordering the cancella-
tion of market tests, ordering the Postal Service to dis-
continue providing loss-making products, and requiring
the Postal Service to make up for revenue shortfalls in
competitive products.
‘‘(d) 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-
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.
‘‘§ 3664. Enforcement of orders
‘‘The several district courts have jurisdiction specifi-
cally to enforce, and to enjoin and restrain the Postal
Service from violating, any order issued by the Postal Reg-
ulatory Commission.’’.
SEC. 206. 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:
‘‘CHAPTER 36—POSTAL RATES, CLASSES, AND SERVICES
‘‘SUBCHAPTER I—PROVISIONS RELATING TO MARKET-DOMINANT
PRODUCTS
Sec.
‘‘3621. Applicability; definitions.
‘‘3622. Modern rate regulation.
‘‘[3623. Repealed.]
‘‘[3624. Repealed.]
‘‘[3625. Repealed.]
‘‘3626. Reduced Rates.
‘‘3627. Adjusting free rates.
‘‘[3628. Repealed.]
‘‘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.
‘‘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. Change-of-address order involving a commercial mail receiving agency.
‘‘3687. Bonus authority.’’.
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
Service—
‘‘(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 invest such amounts as it considers appro-
priate in—
‘‘(1) obligations of, or obligations guaranteed
by, the Government of the United States; and
‘‘(2) in accordance with regulations which the
Secretary of the Treasury shall prescribe (by not
later than 18 months after the date of the enact-
ment of the Postal Accountability and Enhancement
Act), such other obligations or securities as it deems
appropriate.
‘‘(d) The Postal Service may, in its sole discretion,
provide that moneys of the Competitive Products Fund be
deposited in a Federal Reserve bank or a depository for
public funds.
‘‘(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-
essary to provide for competitive products and deposit
such amounts in the Competitive Products Fund, except
that the Postal Service may pledge only assets related to
the provision of competitive 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 section 2008(e)), and the revenues
and receipts from such products, for the payment of the
principal of or interest on such obligations, for the pur-
chase or redemption thereof, and for other purposes inci-
dental thereto, including creation of reserve, sinking, and
other funds which may be similarly pledged and used, to
such extent and in such manner as it deems necessary or
desirable.
‘‘(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
‘‘(D) such other matters as the Postal Service
considers necessary or desirable to enhance the mar-
ketability of such obligations.
‘‘(3) Obligations issued by the Postal Service under
this subsection—
‘‘(A) may not be purchased by the Secretary of
the Treasury;
‘‘(B) 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;
‘‘(C) 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; and
‘‘(D) notwithstanding the provisions of the Fed-
eral Financing Bank Act of 1973 or any other provi-
sion of law (except as specifically provided by ref-
erence to this subparagraph in a law enacted after
this subparagraph takes effect), shall not be eligible
for purchase by, commitment to purchase by, or sale
or issuance to, the Federal Financing Bank.
‘‘(4)(A) This paragraph applies with respect to the
period beginning on the date of the enactment of this
paragraph and ending at the close of the 5-year period
which begins on the date on which the Postal Service
makes its submission under subsection (h)(1).
‘‘(B) During the period described in subparagraph
(A), nothing in subparagraph (A) or (D) of paragraph (3)
or the last sentence of section 2006(b) shall, with respect
to any obligations sought to be issued by the Postal Serv-
ice under this subsection, be considered to affect such obli-
gations’ eligibility for purchase by, commitment to pur-
chase by, or sale or issuance to, the Federal Financing
Bank.
‘‘(C) The Federal Financing Bank may elect to pur-
chase such obligations under such terms, including rates
of interest, as the Bank and the Postal Service may agree,
but at a rate of yield no less than the prevailing yield on
outstanding marketable securities of comparable maturity
issued by entities with the same credit rating as the rating
then most recently obtained by the Postal Service under
subparagraph (D), as determined by the Bank.
‘‘(D) In order to be eligible to borrow under this
paragraph, the Postal Service shall first obtain a credit
rating from a nationally recognized credit rating organiza-
tion. Such rating—
‘‘(i) shall be determined taking into account
only those assets and activities of the Postal Service
which are described in section 3634(a)(2) (relating
to the Postal Service’s assumed taxable income from
competitive products); and
‘‘(ii) may, before final rules of the Postal Regu-
latory Commission under subsection (h) are issued
(or deemed to have been issued), be based on the
best information available from the Postal Service,
including the audited statements required by section
2008(e).
‘‘(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 Postal Service, in consultation with an
independent, certified public accounting firm and such
other advisors as it considers appropriate, shall develop
recommendations regarding—
‘‘(A) the accounting practices and principles
that should be followed by the Postal Service with
the objectives of identifying the capital and oper-
ating costs incurred by the Postal Service in pro-
viding competitive products, and preventing the
cross-subsidization of such products by market-domi-
nant 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
Postal Service under paragraph (1), the Commission shall
give interested parties, including the Postal Service, users
of the mails, and an officer of the Commission who shall
be required to represent the interests of the general public,
an opportunity to present their views on those rec-
ommendations through submission of written data, views,
or arguments with or without opportunity for oral presen-
tation, or in such other manner as the Commission con-
siders appropriate.
‘‘(B) After due consideration of the views and other
information received under subparagraph (A), the Com-
mission shall by rule—
‘‘(i) provide for the establishment and applica-
tion of the accounting practices and principles which
shall be followed by the Postal Service;
‘‘(ii) provide for the establishment and applica-
tion of the substantive and procedural rules de-
scribed in paragraph (1)(B); and
‘‘(iii) provide for the submission by the Postal
Service to the Postal Regulatory Commission of an-
nual and other periodic reports setting forth such in-
formation as the Commission may require.
Final rules under this subparagraph shall be issued not
later than 12 months after the date on which the Postal
Service makes its submission to the Commission under
paragraph (1) (or by such later date as the Commission
and the Postal Service may agree to). If final rules are
not issued by the Commission by the deadline under the
preceding sentence, the recommendations submitted by
the Postal Service under paragraph (1) shall be treated
as the final rules. The Commission is authorized to pro-
mulgate regulations revising such rules.
‘‘(C) Reports described in subparagraph (B)(iii) shall
be submitted at such time and in such form, and shall
include such information, as the Commission by rule re-
quires. The Commission may, on its own motion or on re-
quest of an interested party, initiate proceedings (to be
conducted in accordance with such rules as the Commis-
sion shall prescribe) to improve the quality, accuracy, or
completeness of Postal Service data under such subpara-
graph whenever it shall appear that—
‘‘(i) the quality of the information furnished in
those reports has become significantly inaccurate or
can be significantly improved; or
‘‘(ii) such revisions are, in the judgment of the
Commission, otherwise necessitated by the public in-
terest.
‘‘(D) A copy of each report described in subpara-
graph (B)(iii) shall also be transmitted by the Postal Serv-
ice to the Secretary of the Treasury and the Inspector
General of the United States Postal Service.
‘‘(i) The Postal Service shall render an annual report
to the Secretary of the Treasury concerning the operation
of the Competitive Products Fund, in which it shall ad-
dress such matters as risk limitations, reserve balances,
allocation or distribution of moneys, liquidity require-
ments, and measures to safeguard against losses. A copy
of its then most recent report under this subsection shall
be included with any other submission that it is required
to make to the Postal Regulatory Commission under sec-
tion 3652(g).’’.
(2) CLERICAL AMENDMENT.—The analysis for
chapter 20 of title 39, United States Code, is
amended by adding after the item relating to section
2010 the following:
‘‘2011. Provisions relating to competitive products.’’.
(b) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) DEFINITION.—Section 2001 of title 39,
United States Code, is amended by striking ‘‘and’’
at the end of paragraph (1), by redesignating para-
graph (2) as paragraph (3), and by inserting after
paragraph (1) the following:
‘‘(2) ‘Competitive Products Fund’ means the
Postal Service Competitive Products Fund estab-
lished by section 2011; and’’.
(2) CAPITAL OF THE POSTAL SERVICE.—Sec-
tion 2002(b) of title 39, United States Code, is
amended by striking ‘‘Fund,’’ and inserting ‘‘Fund
and the balance in the Competitive Products
Fund,’’.
(3) POSTAL SERVICE FUND.—
(A) PURPOSES FOR WHICH AVAILABLE.—
Section 2003(a) of title 39, United States Code,
is amended by striking ‘‘title.’’ and inserting
‘‘title (other than any of the purposes, func-
tions, or powers for which the Competitive
Products Fund is available).’’.
(B) DEPOSITS.—Section 2003(b) of title
39, United States Code, is amended by striking
‘‘There’’ and inserting ‘‘Except as otherwise
provided in section 2011, there’’.
(4) RELATIONSHIP BETWEEN THE TREASURY
AND THE POSTAL SERVICE.—Section 2006 of title
39, United States Code, is amended—
(A) in subsection (b), by adding at the end
the following: ‘‘Nothing in this chapter shall be
considered to permit or require the Secretary of
the Treasury to purchase any obligations of the
Postal Service other than those issued under
section 2005.’’; and
(B) in subsection (c), by inserting ‘‘under
section 2005’’ before ‘‘shall be obligations’’.
SEC. 302. ASSUMED FEDERAL INCOME TAX ON COMPETI-
TIVE PRODUCTS INCOME.
Subchapter II of chapter 36 of title 39, United States
Code, as amended by section 202, is amended by adding
at the end the following:
‘‘§ 3634. Assumed Federal income tax on competitive
products income
‘‘(a) DEFINITIONS.—For purposes of this section—
‘‘(1) the term ‘assumed Federal income tax on
competitive products income’ means the net income
tax that would be imposed by chapter 1 of the Inter-
nal Revenue Code of 1986 on the Postal Service’s
assumed taxable income from competitive products
for the year; and
‘‘(2) the term ‘assumed taxable income from
competitive products’, with respect to a year, refers
to the amount representing what would be the tax-
able income of a corporation under the Internal Rev-
enue Code of 1986 for the year, if—
‘‘(A) the only activities of such corporation
were the activities of the Postal Service allo-
cable under section 2011(h) to competitive
products; and
‘‘(B) the only assets held by such corpora-
tion were the assets of the Postal Service allo-
cable under section 2011(h) to such activities.
‘‘(b) COMPUTATION
AND
TRANSFER
REQUIRE-
MENTS.—The Postal Service shall, for each year beginning
with the year in which occurs the deadline for the Postal
Service’s first report to the Postal Regulatory Commission
under section 3652(a)—
‘‘(1) compute its assumed Federal income tax
on competitive products income for such year; and
‘‘(2) transfer from the Competitive Products
Fund to the Postal Service Fund the amount of that
assumed tax.
‘‘(c) DEADLINE FOR TRANSFERS.—Any transfer re-
quired to be made under this section for a year shall be
due on or before the January 15th next occurring after
the close of such year.’’.
SEC. 303. UNFAIR COMPETITION PROHIBITED.
(a) SPECIFIC LIMITATIONS.—Chapter 4 of title 39,
United States Code, is amended by adding after section
404 the following:
‘‘§ 404a. Specific limitations
‘‘(a) Except as specifically authorized by law, the
Postal Service may not:
‘‘(1) establish any rule or regulation (including
any standard) the effect of which is to preclude com-
petition or establish the terms of competition unless
the Postal Service demonstrates that the regulation
does not create an unfair competitive advantage for
itself or any entity funded (in whole or in part) by
the Postal Service;
‘‘(2) compel the disclosure, transfer, or licens-
ing of intellectual property to any third party (such
as patents, copyrights, trademarks, trade secrets,
and proprietary information); or
‘‘(3) obtain information from a person that pro-
vides (or seeks to provide) any product, and then
offer any product or service that uses or is based in
whole or in part on such information, without the
consent of the person providing that information,
unless substantially the same information is obtained
(or obtainable) from an independent source or is
otherwise obtained (or obtainable).
‘‘(b) The Postal Regulatory Commission shall pre-
scribe regulations to carry out this section.
‘‘(c) Any party (including an officer of the Commis-
sion representing the interests of the general public) who
believes that the Postal Service has violated this section
may bring a complaint in accordance with section 3662.’’.
(b) CONFORMING AMENDMENTS.—
(1) GENERAL
POWERS.—Section 401 of title
39, United States Code, is amended by striking
‘‘The’’ and inserting ‘‘Subject to the provisions of
section 404a, the’’.
(2) SPECIFIC POWERS.—Section 404(a) of title
39, United States Code, is amended by striking
‘‘Without’’ and inserting ‘‘Subject to the provisions
of section 404a, but otherwise without’’.
(c) CLERICAL AMENDMENT.—The analysis for chap-
ter 4 of title 39, United States Code, is amended by insert-
ing after the item relating to section 404 the following:
‘‘404a. Specific limitations.’’.
SEC. 304. SUITS BY AND AGAINST THE POSTAL SERVICE.
(a) IN GENERAL.—Section 409 of title 39, United
States Code, is amended by striking subsections (d) and
(e) and inserting the following:
‘‘(d)(1) For purposes of the provisions of law cited
in paragraphs (2)(A) and (2)(B), respectively, the Postal
Service—
‘‘(A) shall be considered to be a ‘person’, as
used in the provisions of law involved; and
‘‘(B) shall not be immune under any other doc-
trine of sovereign immunity from suit in Federal
court by any person for any violation of any of those
provisions of law by any officer or employee of the
Postal Service.
‘‘(2) This subsection applies with respect to—
‘‘(A) the Act of July 5, 1946 (commonly re-
ferred to as the ‘Trademark Act of 1946’ (15 U.S.C.
1051 and following)); and
‘‘(B) the provisions of section 5 of the Federal
Trade Commission Act to the extent that such sec-
tion 5 applies to unfair or deceptive acts or prac-
tices.
‘‘(e)(1) To the extent that the Postal Service, or other
Federal agency acting on behalf of or in concert with the
Postal Service, engages in conduct with respect to any
product which is not reserved to the United States under
section 1696 of title 18, the Postal Service or other Fed-
eral agency (as the case may be)—
‘‘(A) shall not be immune under any doctrine of
sovereign immunity from suit in Federal court by
any person for any violation of Federal law by such
agency or any officer or employee thereof; and
‘‘(B) shall be considered to be a person (as de-
fined in subsection (a) of the first section of the
Clayton Act) for purposes of—
‘‘(i) the antitrust laws (as defined in such
subsection); and
‘‘(ii) section 5 of the Federal Trade Com-
mission Act to the extent that such section 5
applies to unfair methods of competition.
For purposes of the preceding sentence, any private car-
riage of mail allowable by virtue of section 601 shall not
be considered a service reserved to the United States
under section 1696 of title 18.
‘‘(2) No damages, interest on damages, costs or at-
torney’s fees may be recovered under the antitrust laws
(as so defined) from the Postal Service or any officer or
employee thereof acting in an official capacity for any con-
duct with respect to a product in the market-dominant
category of mail.
‘‘(3) This subsection shall not apply with respect to
conduct occurring before the date of the enactment of this
subsection.
‘‘(f) To the extent that the Postal Service engages
in conduct with respect to the provision of competitive
products, it shall be considered a person for the purposes
of the Federal bankruptcy laws.
‘‘(g)(1) Each building constructed or altered by the
Postal Service shall be constructed or altered, to the max-
imum extent feasible as determined by the Postal Service,
in compliance with one of the nationally recognized model
building codes and with other applicable nationally recog-
nized codes.
‘‘(2) Each building constructed or altered by the
Postal Service shall be constructed or altered only after
consideration of all requirements (other than procedural
requirements) of zoning laws, land use laws, and applica-
ble environmental laws of a State or subdivision of a State
which would apply to the building if it were not a building
constructed or altered by an establishment of the Govern-
ment of the United States.
‘‘(3) For purposes of meeting the requirements of
paragraphs (1) and (2) with respect to a building, the
Postal Service shall—
‘‘(A) in preparing plans for the building, con-
sult with appropriate officials of the State or polit-
ical subdivision, or both, in which the building will
be located;
‘‘(B) upon request, submit such plans in a
timely manner to such officials for review by such
officials for a reasonable period of time not exceed-
ing 30 days; and
‘‘(C) permit inspection by such officials during
construction or alteration of the building, in accord-
ance with the customary schedule of inspections for
construction or alteration of buildings in the locality,
if such officials provide to the Postal Service—
‘‘(i) a copy of such schedule before con-
struction of the building is begun; and
‘‘(ii) reasonable notice of their intention to
conduct any inspection before conducting such
inspection.
Nothing in this subsection shall impose an obligation on
any State or political subdivision to take any action under
the preceding sentence, nor shall anything in this sub-
section require the Postal Service or any of its contractors
to pay for any action taken by a State or political subdivi-
sion to carry out this subsection (including reviewing
plans, carrying out on-site inspections, issuing building
permits, and making recommendations).
‘‘(4) Appropriate officials of a State or a political
subdivision of a State may make recommendations to the
Postal Service concerning measures necessary to meet the
requirements of paragraphs (1) and (2). Such officials
may also make recommendations to the Postal Service
concerning measures which should be taken in the con-
struction or alteration of the building to take into account
local conditions. The Postal Service shall give due consid-
eration to any such recommendations.
‘‘(5) In addition to consulting with local and State
officials under paragraph (3), the Postal Service shall es-
tablish procedures for soliciting, assessing, and incor-
porating local community input on real property and land
use decisions.
‘‘(6) For purposes of this subsection, the term ‘State’
includes the District of Columbia, the Commonwealth of
Puerto Rico, and a territory or possession of the United
States.
‘‘(h)(1) Notwithstanding any other provision of law,
legal representation may not be furnished by the Depart-
ment of Justice to the Postal Service in any action, suit,
or proceeding arising, in whole or in part, under any of
the following:
‘‘(A) Subsection (d) or (e) of this section.
‘‘(B) Subsection (f) or (g) of section 504 (relat-
ing to administrative subpoenas by the Postal Regu-
latory Commission).
‘‘(C) Section 3663 (relating to appellate re-
view).
The Postal Service may, by contract or otherwise, employ
attorneys to obtain any legal representation that it is pre-
cluded from obtaining from the Department of Justice
under this paragraph.
‘‘(2) In any circumstance not covered by paragraph
(1), the Department of Justice shall, under section 411,
furnish the Postal Service such legal representation as it
may require, except that, with the prior consent of the
Attorney General, the Postal Service may, in any such cir-
cumstance, employ attorneys by contract or otherwise to
conduct litigation brought by or against the Postal Service
or its officers or employees in matters affecting the Postal
Service.
‘‘(3)(A) In any action, suit, or proceeding in a court
of the United States arising in whole or in part under any
of the provisions of law referred to in subparagraph (B)
or (C) of paragraph (1), and to which the Commission
is not otherwise a party, the Commission shall be per-
mitted to appear as a party on its own motion and as
of right.
‘‘(B) The Department of Justice shall, under such
terms and conditions as the Commission and the Attorney
General shall consider appropriate, furnish the Commis-
sion such legal representation as it may require in connec-
tion with any such action, suit, or proceeding, except that,
with the prior consent of the Attorney General, the Com-
mission may employ attorneys by contract or otherwise for
that purpose.
‘‘(i) A judgment against the Government of the
United States arising out of activities of the Postal Service
shall be paid by the Postal Service out of any funds avail-
able to the Postal Service, subject to the restriction speci-
fied in section 2011(g).’’.
(b) TECHNICAL AMENDMENT.—Section 409(a) of
title 39, United States Code, is amended by striking ‘‘Ex-
cept as provided in section 3628 of this title,’’ and insert-
ing ‘‘Except as otherwise provided in this title,’’.
SEC. 305. INTERNATIONAL POSTAL ARRANGEMENTS.
(a) IN GENERAL.—Section 407 of title 39, United
States Code, is amended to read as follows:
‘‘§ 407. International postal arrangements
‘‘(a) It is the policy of the United States—
‘‘(1) to promote and encourage communications
between peoples by efficient operation of inter-
national postal services and other international deliv-
ery services for cultural, social, and economic pur-
poses;
‘‘(2) to promote and encourage unrestricted and
undistorted competition in the provision of inter-
national postal services and other international deliv-
ery services, except where provision of such services
by private companies may be prohibited by law of
the United States;
‘‘(3) to promote and encourage a clear distinc-
tion between governmental and operational respon-
sibilities with respect to the provision of inter-
national postal services and other international deliv-
ery services by the Government of the United States
and by intergovernmental organizations of which the
United States is a member; and
‘‘(4) to participate in multilateral and bilateral
agreements with other countries to accomplish these
objectives.
‘‘(b)(1) The Secretary of State shall be responsible
for formulation, coordination, and oversight of foreign pol-
icy related to international postal services and other inter-
national delivery services, and shall have the power to con-
clude treaties, conventions and amendments related to
international postal services and other international deliv-
ery services, except that the Secretary may not conclude
any treaty, convention, or other international agreement
(including those regulating international postal services)
if such treaty, convention, or agreement would, with re-
spect to any competitive product, grant an undue or un-
reasonable preference to the Postal Service, a private pro-
vider of international postal or delivery services, or any
other person.
‘‘(2) In carrying out the responsibilities specified in
paragraph (1), the Secretary of State shall exercise pri-
mary authority for the conduct of foreign policy with re-
spect to international postal services and international de-
livery services, including the determination of United
States positions and the conduct of United States partici-
pation in negotiations with foreign governments and inter-
national bodies. In exercising this authority, the
Secretary—
‘‘(A) shall coordinate with other agencies as ap-
propriate, and in particular, shall give full consider-
ation to the authority vested by law or Executive
order in the Postal Regulatory Commission, the De-
partment of Commerce, the Department of Trans-
portation, and the Office of the United States Trade
Representative in this area;
‘‘(B) shall maintain continuing liaison with
other executive branch agencies concerned with post-
al and delivery services;
‘‘(C) shall maintain continuing liaison with the
Committee on Government Reform of the House of
Representatives and the Committee on Govern-
mental Affairs of the Senate;
‘‘(D) shall maintain appropriate liaison with
both representatives of the Postal Service and rep-
resentatives of users and private providers of inter-
national postal services and other international deliv-
ery services to keep informed of their interests and
problems, and to provide such assistance as may be
needed to ensure that matters of concern are
promptly considered by the Department of State or
(if applicable, and to the extent practicable) other
executive branch agencies; and
‘‘(E) shall assist in arranging meetings of such
public sector advisory groups as may be established
to advise the Department of State and other execu-
tive branch agencies in connection with international
postal services and international delivery services.
‘‘(3) The Secretary of State shall establish an advi-
sory committee (within the meaning of the Federal Advi-
sory Committee Act) to perform such functions as the Sec-
retary considers appropriate in connection with carrying
out subparagraphs (A) through (D) of paragraph (2).
‘‘(c)(1) Before concluding any treaty, convention, or
amendment that establishes a rate or classification for a
product subject to subchapter I of chapter 36, the Sec-
retary of State shall request the Postal Regulatory Com-
mission to submit a decision on whether such rate or clas-
sification is consistent with the standards and criteria es-
tablished by the Commission under section 3622.
‘‘(2) The Secretary shall ensure that each treaty, con-
vention, or amendment concluded under subsection (b) is
consistent with a decision of the Commission adopted
under paragraph (1), except if, or to the extent, the Sec-
retary determines, by written order, that considerations of
foreign policy or national security require modification of
the Commission’s decision.
‘‘(d) Nothing in this section shall be considered to
prevent the Postal Service from entering into such com-
mercial or operational contracts related to providing inter-
national postal services and other international delivery
services as it deems appropriate, except that—
‘‘(1) any such contract made with an agency of
a foreign government (whether under authority of
this subsection or otherwise) shall be solely contrac-
tual in nature and may not purport to be inter-
national law; and
‘‘(2) a copy of each such contract between the
Postal Service and an agency of a foreign govern-
ment shall be transmitted to the Secretary of State
and the Postal Regulatory Commission not later
than the effective date of such contract.
‘‘(e)(1) With respect to shipments of international
mail that are competitive products within the meaning of
section 3631 that are exported or imported by the Postal
Service, the Customs Service and other appropriate Fed-
eral agencies shall apply the customs laws of the United
States and all other laws relating to the importation or
exportation of such shipments in the same manner to both
shipments by the Postal Service and similar shipments by
private companies.
‘‘(2) For purposes of this subsection, the term ‘pri-
vate company’ means a private company substantially
owned or controlled by persons who are citizens of the
United States.
‘‘(3) In exercising the authority pursuant to sub-
section (b) to conclude new treaties, conventions and
amendments related to international postal services and
to renegotiate such treaties, conventions and amendments,
the Secretary of State shall, to the maximum extent prac-
ticable, take such measures as are within the Secretary’s
control to encourage the governments of other countries
to make available to the Postal Service and private compa-
nies a range of nondiscriminatory customs procedures that
will fully meet the needs of all types of American shippers.
The Secretary of State shall consult with the United
States Trade Representative and the Commissioner of
Customs in carrying out this paragraph.
‘‘(4) The provisions of this subsection shall take ef-
fect 6 months after the date of the enactment of this sub-
section or such earlier date as the Customs Service may
determine in writing.’’.
(b) EFFECTIVE DATE.—Notwithstanding any provi-
sion of the amendment made by subsection (a), the au-
thority of the United States Postal Service to establish
the rates of postage or other charges on mail matter con-
veyed between the United States and other countries shall
remain available to the Postal Service until—
(1) with respect to market-dominant products,
the date as of which the regulations promulgated
under section 3622 of title 39, United States Code
(as amended by section 201(a)) take effect; and
(2) with respect to competitive products, the
date as of which the regulations promulgated under
section 3633 of title 39, United States Code (as
amended by section 202) take effect.
SEC. 306. CHANGE-OF-ADDRESS ORDER INVOLVING A COM-
MERCIAL MAIL RECEIVING AGENCY.
(a) REDESIGNATION.—Chapter 36 of title 39, United
States Code (as in effect before the amendment made by
section 204(a)) is amended by striking the heading for
subchapter V and inserting the following:
‘‘SUBCHAPTER VI—GENERAL’’.
(b) CHANGE-OF-ADDRESS ORDER INVOLVING A COM-
MERCIAL MAIL RECEIVING AGENCY.—Subchapter VI of
chapter 36 of title 39, United States Code (as so redesig-
nated by subsection (a)) is amended by adding at the end
the following:
‘‘§ 3686. Change-of-address order involving a commer-
cial mail receiving agency
‘‘(a) For the purpose of this section, the term ‘com-
mercial mail receiving agency’ or ‘CMRA’ means a private
business that acts as the mail receiving agent for specific
clients.
‘‘(b) Upon termination of an agency relationship be-
tween an addressee and a commercial mail receiving
agency—
‘‘(1) the addressee or, if authorized to do so,
the CMRA may file a change-of-address order with
the Postal Service with respect to such addressee;
‘‘(2) a change-of-address order so filed shall, to
the extent practicable, be given full force and effect;
and
‘‘(3) any mail for the addressee that is delivered
to the CMRA after the filing of an appropriate order
under this subsection shall be subject to subsection
(c).
‘‘(c) Mail described in subsection (b)(3) shall, if
marked for forwarding and remailed by the CMRA, be for-
warded by the Postal Service in the same manner as, and
subject to the same terms and conditions (including limita-
tions on the period of time for which a change-of-address
order shall be given effect) as apply to, mail forwarded
directly by the Postal Service to the addressee.’’.
SEC. 307. EXCEPTION FOR COMPETITIVE PRODUCTS.
(a) IN GENERAL.—Section 403(c) of title 39, United
States Code, is amended by striking ‘‘user.’’ and inserting
‘‘user, except that this subsection shall not apply to com-
petitive products.’’.
(b) EFFECTIVE DATE.—The amendments made by
this section shall apply with respect to services, classifica-
tions, rates, and fees, to the extent provided or applicable
(as the case may be) on or after the date as of which the
regulations promulgated under section 3633 of title 39,
United States Code (as amended by section 202) take ef-
fect.
TITLE IV—GENERAL
PROVISIONS
SEC. 
401. 
QUALIFICATION 
REQUIREMENTS 
FOR 
GOV-
ERNORS.
(a) IN GENERAL.—Section 202(a) of title 39, United
States Code, is amended by striking ‘‘(a)’’ and inserting
‘‘(a)(1)’’ and by striking the fourth sentence and inserting
the following: ‘‘The Governors shall represent the public
interest generally, and at least 4 of the Governors shall
be chosen solely on the basis of their demonstrated ability
in managing organizations or corporations (in either the
public or private sector) of substantial size; for purposes
of this sentence, an organization or corporation shall be
considered to be of substantial size if it employs at least
50,000 employees. The Governors shall not be representa-
tives of specific interests using the Postal Service, and
may be removed only for cause.’’.
(b) CONSULTATION REQUIREMENT.—Section 202(a)
of title 39, United States Code, is amended by adding at
the end the following:
‘‘(2) In selecting the individuals described in para-
graph (1) for nomination for appointment to the position
of Governor, the President should consult with the Speak-
er of the House of Representatives, the minority leader
of the House of Representatives, the majority leader of
the Senate, and the minority leader of the Senate.’’.
(c) RESTRICTION.—Section 202(b) of title 39, United
States Code, is amended by striking ‘‘(b)’’ and inserting
‘‘(b)(1)’’, and by adding at the end the following:
‘‘(2)(A) Notwithstanding any other provision of this
section, in the case of the office of the Governor the term
of which is the first one scheduled to expire at least 4
months after the date of the enactment of this
paragraph—
‘‘(i) such office may not, in the case of any per-
son commencing service after that expiration date,
be filled by any person other than an individual cho-
sen from among persons nominated for such office
with the unanimous concurrence of all labor organi-
zations described in section 206(a)(1); and
‘‘(ii) instead of the term that would otherwise
apply under the first sentence of paragraph (1), the
term of any person so appointed to such office shall
be 3 years.
‘‘(B) Except as provided in subparagraph (A), an ap-
pointment under this paragraph shall be made in conform-
ance with all provisions of this section that would other-
wise apply.’’.
(d) APPLICABILITY.—The amendment made by sub-
section (a) shall not affect the appointment or tenure of
any person serving as a Governor of the Board of Gov-
ernors of the United States Postal Service pursuant to an
appointment made before the date of the enactment of this
Act, or, except as provided in the amendment made by
subsection (c), any nomination made before that date;
however, when any such office becomes vacant, the ap-
pointment of any person to fill that office shall be made
in accordance with such amendment. The requirement set
forth in the fourth sentence of section 202(a)(1) of title
39, United States Code (as amended by subsection (a))
shall be met beginning not later than 9 years after the
date of the enactment of this Act.
SEC. 402. OBLIGATIONS.
(a) PURPOSES FOR WHICH OBLIGATIONS MAY BE
ISSUED.—The first sentence of section 2005(a)(1) of title
39, United States Code, is amended by striking ‘‘title.’’
and inserting ‘‘title, other than any of the purposes for
which the corresponding authority is available to the Post-
al Service under section 2011.’’.
(b) INCREASE RELATING TO OBLIGATIONS ISSUED
FOR CAPITAL IMPROVEMENTS.—The third sentence of
section 2005(a)(1) of title 39, United States Code, is
amended by striking ‘‘$2,000,000,000’’ and inserting
‘‘$3,000,000,000’’.
(c) INCREASE IN MAXIMUM OUTSTANDING OBLIGA-
TIONS ALLOWABLE.—Paragraph (2) of section 2005(a) of
title 39, United States Code, is amended—
(1) by striking ‘‘and’’ at the end of subpara-
graph (B); and
(2) by striking subparagraph (C) and inserting
the following:
‘‘(C) $15,000,000,000 for each of fiscal years
1992 through 2002; and
‘‘(D) $25,000,000,000 for fiscal year 2003 and
each fiscal year thereafter.’’.
(d) LIMITATIONS ON OBLIGATIONS OUTSTANDING.—
(1) IN
GENERAL.—Subsection (a) of section
2005 of title 39, United States Code, is amended by
adding at the end the following:
‘‘(3) For purposes of applying the respective limita-
tions under this subsection, the aggregate amount of obli-
gations issued by the Postal Service which are outstanding
as of any one time, and the net increase in the amount
of obligations outstanding issued by the Postal Service for
the purpose of capital improvements or for the purpose
of defraying operating expenses of the Postal Service in
any fiscal year, shall be determined by aggregating the
relevant obligations issued by the Postal Service under this
section with the relevant obligations issued by the Postal
Service under section 2011.’’.
(2) CONFORMING
AMENDMENT.—The second
sentence of section 2005(a)(1) of title 39, United
States Code, is amended by striking ‘‘any such obli-
gations’’ and inserting ‘‘obligations issued by the
Postal Service which may be’’.
(e) AMOUNTS WHICH MAY BE PLEDGED, ETC.—
(1) 
OBLIGATIONS
TO
WHICH
PROVISIONS
APPLY.—The first sentence of section 2005(b) of
title 39, United States Code, is amended by striking
‘‘such obligations,’’ and inserting ‘‘obligations issued
by the Postal Service under this section,’’.
(2) ASSETS, REVENUES, AND
RECEIPTS
TO
WHICH PROVISIONS APPLY.—Subsection (b) of sec-
tion 2005 of title 39, United States Code, is amend-
ed by striking ‘‘(b)’’ and inserting ‘‘(b)(1)’’, and by
adding at the end the following:
‘‘(2) Notwithstanding any other provision of this
section—
‘‘(A) the authority to pledge assets of the Post-
al Service under this subsection shall be available
only to the extent that such assets are not related
to the provision of competitive products (as deter-
mined under section 2011(h) or, for purposes of any
period before accounting practices and principles
under section 2011(h) have been established and ap-
plied, the best information available from the Postal
Service, including the audited statements required
by section 2008(e)); and
‘‘(B) any authority under this subsection relat-
ing to the pledging or other use of revenues or re-
ceipts of the Postal Service shall be available only to
the extent that they are not revenues or receipts of
the Competitive Products Fund.’’.
SEC. 403. PRIVATE CARRIAGE OF LETTERS.
(a) IN GENERAL.—Section 601 of title 39, United
States Code, is amended by striking subsection (b) and
inserting the following:
‘‘(b) A letter may also be carried out of the mails
when—
‘‘(1) the amount paid for the private carriage of
the letter is at least the amount equal to 6 times the
rate then currently charged for the 1st ounce of a
single-piece first class letter;
‘‘(2) the letter weighs at least 121⁄2 ounces; or
‘‘(3) such carriage is within the scope of serv-
ices described by regulations of the United States
Postal Service (as in effect on July 1, 2001) that
purport to permit private carriage by suspension of
the operation of this section (as then in effect).
‘‘(c) Any regulations necessary to carry out this sec-
tion shall be promulgated by the Postal Regulatory Com-
mission.’’.
(b) EFFECTIVE DATE.—This section shall take effect
on the date as of which the regulations promulgated under
section 3633 of title 39, United States Code (as amended
by section 202) take effect.
SEC. 404. RULEMAKING AUTHORITY.
Paragraph (2) of section 401 of title 39, United
States Code, is amended to read as follows:
‘‘(2) to adopt, amend, and repeal such rules
and regulations, not inconsistent with this title, as
may be necessary in the execution of its functions
under this title and such other functions as may be
assigned to the Postal Service under any provisions
of law outside of this title;’’.
SEC. 405. NONINTERFERENCE WITH COLLECTIVE BAR-
GAINING AGREEMENTS, ETC.
(a) NONINTERFERENCE WITH COLLECTIVE BAR-
GAINING AGREEMENTS.—Nothing in this Act or any
amendment made by this Act shall restrict, expand, or
otherwise affect any of the rights, privileges, or benefits
of either employees of or labor organizations representing
employees of the United States Postal Service under chap-
ter 12 of title 39, United States Code, the National Labor
Relations Act, any handbook or manual affecting employee
labor relations within the United States Postal Service,
or any collective bargaining agreement.
(b) FREE MAILING PRIVILEGES CONTINUE UN-
CHANGED.—Nothing in this Act or any amendment made
by this Act shall affect any free mailing privileges ac-
corded under section 3217 or sections 3403 through 3406
of title 39, United States Code.
SEC. 406. BONUS AUTHORITY.
Title 39, United States Code, is amended by adding
after section 3686 (as added by section 306(b)) the fol-
lowing:
‘‘§ 3687. Bonus authority
‘‘(a) IN GENERAL.—The Postal Service may establish
one or more programs to provide bonuses or other rewards
to officers and employees of the Postal Service to achieve
the objectives of this chapter.
‘‘(b) WAIVER OF LIMITATION ON COMPENSATION.—
‘‘(1) IN GENERAL.—Under any such program,
the Postal Service may award a bonus or other re-
ward in excess of the limitation set forth in the last
sentence of section 1003(a), if such program has
been approved under paragraph (2).
‘‘(2) APPROVAL PROCESS.—If the Postal Serv-
ice wishes to have the authority, under any program
described in subsection (a), to award bonuses or
other rewards in excess of the limitation referred to
in paragraph (1)—
‘‘(A) the Postal Service shall make an ap-
propriate request to the Postal Regulatory
Commission, in such form and manner as the
Commission requires; and
‘‘(B) the Postal Regulatory Commission
shall approve any such request if it finds that
the program is likely to achieve the objectives of
this chapter.
‘‘(3) REVOCATION AUTHORITY.—If the Postal
Regulatory Commission finds that a program pre-
viously approved under paragraph (2) is not achiev-
ing the objectives of this chapter, the Commission
may revoke or suspend the authority of the Postal
Service to continue such program until such time as
appropriate corrective measures have, in the judg-
ment of the Commission, been taken.
‘‘(c) REPORTING REQUIREMENT RELATING TO BO-
NUSES OR OTHER REWARDS.—Included in its comprehen-
sive statement under section 2401(e) for any period shall
be—
‘‘(1) the name of each person receiving a bonus
or other reward during such period which would not
have been allowable but for the provisions of sub-
section (a)(2);
‘‘(2) the amount of the bonus or other reward;
and
‘‘(3) the amount by which the limitation re-
ferred to in subsection (a)(2) was exceeded as a re-
sult of such bonus or other reward.’’.
TITLE V—ENHANCED
REGULATORY COMMISSION
SEC. 501. REORGANIZATION AND MODIFICATION OF CER-
TAIN PROVISIONS RELATING TO THE POSTAL
REGULATORY COMMISSION.
(a) TRANSFER
AND
REDESIGNATION.—Title 39,
United States Code, is amended—
(1) by inserting after chapter 4 the following:
‘‘CHAPTER 5—POSTAL REGULATORY
COMMISSION
‘‘Sec.
‘‘501. Establishment.
‘‘502. Commissioners.
‘‘503. Rules; regulations; procedures.
‘‘504. Administration.
‘‘§ 501. Establishment
‘‘The Postal Regulatory Commission is an inde-
pendent establishment of the executive branch of the Gov-
ernment of the United States.
‘‘§ 502. Commissioners
‘‘(a) The Postal Regulatory Commission is composed
of 5 Commissioners, appointed by the President, by and
with the advice and consent of the Senate. The Commis-
sioners shall be chosen solely on the basis of their technical
qualifications, professional standing, and demonstrated
expertise in economics, accounting, law, or public adminis-
tration, and may be removed by the President only for
cause. Each individual appointed to the Commission shall
have the qualifications and expertise necessary to carry
out the enhanced responsibilities accorded Commissioners
under the Postal Accountability and Enhancement Act.
Not more than 3 of the Commissioners may be adherents
of the same political party.
‘‘(b) No Commissioner shall be financially interested
in any enterprise in the private sector of the economy en-
gaged in the delivery of mail matter.
‘‘(c) A Commissioner may continue to serve after the
expiration of his term until his successor has qualified,
except that a Commissioner may not so continue to serve
for more than 1 year after the date upon which his term
otherwise would expire under subsection (f).
‘‘(d) One of the Commissioners shall be designated
as Chairman by, and shall serve in the position of Chair-
man at the pleasure of, the President.
‘‘(e) The Commissioners shall by majority vote des-
ignate a Vice Chairman of the Commission. The Vice
Chairman shall act as Chairman of the Commission in the
absence of the Chairman.
‘‘(f) The Commissioners shall serve for terms of 6
years.’’;
(2) by striking, in subchapter I of chapter 36
(as in effect before the amendment made by section
201(c)), the heading for such subchapter I and all
that follows through section 3602; and
(3) by redesignating sections 3603 and 3604 as
sections 503 and 504, respectively, and transferring
such sections to the end of chapter 5 (as inserted by
paragraph (1)).
(b) APPLICABILITY.—The amendment made by sub-
section (a)(1) shall not affect the appointment or tenure
of any person serving as a Commissioner on the Postal
Regulatory Commission (as so redesignated by section
504) pursuant to an appointment made before the date
of the enactment of this Act or any nomination made be-
fore that date, but, when any such office becomes vacant,
the appointment of any person to fill that office shall be
made in accordance with such amendment.
(c) CLERICAL AMENDMENT.—The analysis for part
I of title 39, United States Code, is amended by inserting
after the item relating to chapter 4 the following:
‘‘5. Postal Regulatory Commission .............................
501’’.
SEC. 502. AUTHORITY FOR POSTAL REGULATORY COMMIS-
SION TO ISSUE SUBPOENAS.
Section 504 of title 39, United States Code (as so
redesignated by section 501) is amended by adding at the
end the following:
‘‘(f)(1) Any Commissioner of the Postal Regulatory
Commission, any administrative law judge appointed by
the Commission under section 3105 of title 5, and any
employee of the Commission designated by the Commis-
sion may administer oaths, examine witnesses, take depo-
sitions, and receive evidence.
‘‘(2) The Chairman of the Commission, any Commis-
sioner designated by the Chairman, and any administra-
tive law judge appointed by the Commission under section
3105 of title 5 may, with respect to any proceeding con-
ducted by the Commission under this title—
‘‘(A) issue subpoenas requiring the attendance
and presentation of testimony by, or the production
of documentary or other evidence in the possession
of, any covered person; and
‘‘(B) order the taking of depositions and re-
sponses to written interrogatories by a covered per-
son.
The written concurrence of a majority of the Commis-
sioners then holding office shall, with respect to each sub-
poena under subparagraph (A), be required in advance of
its issuance.
‘‘(3) In the case of contumacy or failure to obey a
subpoena issued under this subsection, upon application
by the Commission, the district court of the United States
for the district in which the person to whom the subpoena
is addressed resides or is served may issue an order requir-
ing such person to appear at any designated place to tes-
tify or produce documentary or other evidence. Any failure
to obey the order of the court may be punished by the
court as a contempt thereof.
‘‘(4) For purposes of this subsection, the term ‘cov-
ered person’ means an officer, employee, agent, or con-
tractor of the Postal Service.
‘‘(g)(1) If the Postal Service determines that any doc-
ument or other matter it provides to the Postal Regulatory
Commission pursuant to a subpoena issued under sub-
section (f), or otherwise at the request of the Commission
in connection with any proceeding or other purpose under
this title, contains information which is described in sec-
tion 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, in writing, of its determination
(and the reasons therefor).
‘‘(2) No officer or employee of the Commission may,
with respect to any information as to which the Commis-
sion has been notified under paragraph (1)—
‘‘(A) use such information for purposes other
than the purposes for which it is supplied; or
‘‘(B) permit anyone who is not an officer or
employee of the Commission to have access to any
such information.
‘‘(3) Paragraph (2) shall not prevent information
from being furnished under any process of discovery estab-
lished under this title in connection with a proceeding
under this title. The Commission shall, by regulations
based on rule 26(c) of the Federal Rules of Civil Proce-
dure, establish procedures for ensuring appropriate con-
fidentiality for any information furnished under the pre-
ceding sentence.’’.
SEC. 503. APPROPRIATIONS FOR THE POSTAL REGU-
LATORY COMMISSION.
(a) AUTHORIZATION
OF
APPROPRIATIONS.—Sub-
section (d) of section 504 of title 39, United States Code
(as so redesignated by section 501) is amended to read
as follows:
‘‘(d) There are authorized to be appropriated, out of
the Postal Service Fund, such sums as may be necessary
for the Postal Regulatory Commission. In requesting an
appropriation under this subsection for a fiscal year, the
Commission shall prepare and submit to the Congress
under section 2009 a budget of the Commission’s ex-
penses, including expenses for facilities, supplies, com-
pensation, and employee benefits.’’.
(b) BUDGET PROGRAM.—
(1) IN GENERAL.—The next to last sentence of
section 2009 of title 39, United States Code, is
amended to read as follows: ‘‘The budget program
shall also include separate statements of the
amounts which (1) the Postal Service requests to be
appropriated under subsections (b) and (c) of section
2401, (2) the Office of Inspector General of the
United States Postal Service requests to be appro-
priated, out of the Postal Service Fund, under sec-
tion 8G(f) of the Inspector General Act of 1978, and
(3) the Postal Regulatory Commission requests to be
appropriated, out of the Postal Service Fund, under
section 504(d) of this title.’’.
(2) 
CONFORMING
AMENDMENT.—Section
2003(e)(1) of title 39, United States Code, is
amended by striking the first sentence and inserting
the following: ‘‘The Fund shall be available for the
payment of (A) all expenses incurred by the Postal
Service in carrying out its functions as provided by
law, subject to the same limitation as set forth in
the parenthetical matter under subsection (a); (B)
all expenses of the Postal Regulatory Commission,
subject to the availability of amounts appropriated
pursuant to section 504(d); and (C) all expenses of
the Office of Inspector General, subject to the avail-
ability of amounts appropriated pursuant to section
8G(f) of the Inspector General Act of 1978.’’.
(c) EFFECTIVE DATE.—
(1) IN GENERAL.—The amendments made by
this section shall apply with respect to fiscal years
beginning on or after October 1, 2002.
(2) SAVINGS
PROVISION.—The provisions of
title 39, United States Code, that are amended by
this section shall, for purposes of any fiscal year be-
fore the first fiscal year to which the amendments
made by this section apply, continue to apply in the
same way as if this section had never been enacted.
SEC. 504. REDESIGNATION OF THE POSTAL RATE COMMIS-
SION.
(a) AMENDMENTS TO TITLE 39, UNITED STATES
CODE.—Title 39, United States Code, is amended in sec-
tions 404, 503–504 (as so redesignated by section 501),
1001, 1002, by striking ‘‘Postal Rate Commission’’ each
place it appears and inserting ‘‘Postal Regulatory Com-
mission’’;
(b) AMENDMENTS
TO TITLE 5, UNITED STATES
CODE.—Title 5, United States Code, is amended in sec-
tions 104(1), 306(f), 2104(b), 3371(3), 5314 (in the item
relating to Chairman, Postal Rate Commission), 5315 (in
the item relating to Members, Postal Rate Commission),
5514(a)(5)(B), 
7342(a)(1)(A), 
7511(a)(1)(B)(ii),
8402(c)(1), 8423(b)(1)(B), and 8474(c)(4) by striking
‘‘Postal Rate Commission’’ and inserting ‘‘Postal Regu-
latory Commission’’.
(c) AMENDMENT TO THE ETHICS IN GOVERNMENT
ACT OF 1978.—Section 101(f)(6) of the Ethics in Govern-
ment Act of 1978 (5 U.S.C. App.) is amended by striking
‘‘Postal Rate Commission’’ and inserting ‘‘Postal Regu-
latory Commission’’.
(d) AMENDMENT TO THE REHABILITATION ACT OF
1973.—Section 501(b) of the Rehabilitation Act of 1973
(29 U.S.C. 791(b)) is amended by striking ‘‘Postal Rate
Office’’ and inserting ‘‘Postal Regulatory Commission’’.
(e) AMENDMENT
TO TITLE 44, UNITED STATES
CODE.—Section 3502(5) of title 44, United States Code,
is amended by striking ‘‘Postal Rate Commission’’ and in-
serting ‘‘Postal Regulatory Commission’’.
(f) OTHER REFERENCES.—Whenever a reference is
made in any provision of law (other than this Act or a
provision of law amended by this Act), regulation, rule,
document, or other record of the United States to the
Postal Rate Commission, such reference shall be consid-
ered a reference to the Postal Regulatory Commission.
TITLE VI—INSPECTORS
GENERAL
SEC. 601. INSPECTOR GENERAL OF THE POSTAL REGU-
LATORY COMMISSION.
(a) IN GENERAL.—Paragraph (2) of section 8G(a)
of the Inspector General Act of 1978 is amended by insert-
ing ‘‘the Postal Regulatory Commission,’’ after ‘‘the
United States International Trade Commission,’’.
(b) ADMINISTRATION.—Section 504 of title 39,
United States Code (as so redesignated by section 501)
is amended by adding after subsection (g) (as added by
section 502) the following:
‘‘(h)(1) Notwithstanding any other provision of this
title or of the Inspector General Act of 1978, the authority
to select, appoint, and employ officers and employees of
the Office of Inspector General of the Postal Regulatory
Commission, and to obtain any temporary or intermittent
services of experts or consultants (or an organization of
experts or consultants) for such Office, shall reside with
the Inspector General of the Postal Regulatory Commis-
sion.
‘‘(2) Except as provided in paragraph (1), any exer-
cise of authority under this subsection shall, to the extent
practicable, be in conformance with the applicable laws
and regulations that govern selections, appointments and
employment, and the obtaining of any such temporary or
intermittent services, within the Postal Regulatory Com-
mission.’’.
(c) DEADLINE.—No later than 180 days after the
date of the enactment of this Act—
(1) the first Inspector General of the Postal
Regulatory Commission shall be appointed; and
(2) the Office of Inspector General of the Post-
al Regulatory Commission shall be established.
SEC. 602. INSPECTOR GENERAL OF THE UNITED STATES
POSTAL SERVICE TO BE APPOINTED BY THE
PRESIDENT.
(a) DEFINITIONAL AMENDMENTS TO THE INSPEC-
TOR GENERAL ACT OF 1978.—Section 11 of the Inspector
General Act of 1978 is amended—
(1) in paragraph (1)—
(A) by striking ‘‘and’’ before ‘‘the chief ex-
ecutive officer of the Resolution Trust Corpora-
tion’’;
(B) by striking ‘‘and’’ before ‘‘the Chair-
person of the Federal Deposit Insurance Cor-
poration’’; and
(C) by inserting ‘‘the Postmaster General;’’
after ‘‘Social Security Administration;’’; and
(2) in paragraph (2)—
(A) by striking ‘‘or’’ before ‘‘the Veterans’
Administration’’; and
(B) by inserting ‘‘the United States Postal
Service,’’ after ‘‘Social Security Administra-
tion,’’.
(b) SPECIAL PROVISIONS CONCERNING THE UNITED
STATES POSTAL SERVICE.—
(1) IN GENERAL.—The Inspector General Act
of 1978 is amended—
(A) by redesignating sections 8G (as
amended by section 601(a)), 8H, and 8I as sec-
tions 8H through 8J, respectively; and
(B) by inserting after section 8F the fol-
lowing:
‘‘SPECIAL PROVISIONS CONCERNING THE UNITED STATES
POSTAL SERVICE
‘‘SEC. 8G. (a) Notwithstanding the last two sentences
of section 3(a), the Inspector General of the United States
Postal Service shall report to and be under the general
supervision of the Postmaster General, but shall not re-
port to, or be subject to supervision by, any other officer
or employee of the United States Postal Service or its
Board of Governors. No such officer or employee (includ-
ing the Postmaster General) or member of such Board
shall prevent or prohibit the Inspector General from initi-
ating, carrying out, or completing any audit or investiga-
tion, or from issuing any subpoena during the course of
any audit or investigation.
‘‘(b) In carrying out the duties and responsibilities
specified in this Act, the Inspector General of the United
States Postal Service shall have oversight responsibility
for all activities of the Postal Inspection Service, including
any internal investigation performed by the Postal Inspec-
tion Service. The Chief Postal Inspector shall promptly re-
port the significant activities being carried out by the
Postal Inspection Service to such Inspector General.
‘‘(c) Any report required to be transmitted by the
Postmaster General to the appropriate committees or sub-
committees of the Congress under section 5(d) shall also
be transmitted, within the 7-day period specified under
such section, to the Committee on Government Reform of
the House of Representatives and the Committee on Gov-
ernmental Affairs of the Senate.
‘‘(d) Notwithstanding any provision of paragraph (7)
or (8) of section 6(a), the Inspector General of the United
States Postal Service may select, appoint, and employ
such officers and employees as may be necessary for car-
rying out the functions, powers and duties of the Office
of Inspector General and to obtain the temporary or inter-
mittent services of experts or consultants or an organiza-
tion of experts or consultants, subject to the applicable
laws and regulations that govern such selections, appoint-
ments, and employment, and the obtaining of such serv-
ices, within the United States Postal Service.
‘‘(e) Nothing in this Act shall restrict, eliminate, or
otherwise adversely affect any of the rights, privileges, or
benefits of employees of the United States Postal Service,
or labor organizations representing employees of the
United States Postal Service, under chapter 12 of title 39,
United States Code, the National Labor Relations Act,
any handbook or manual affecting employee labor rela-
tions with the United States Postal Service, or any collec-
tive bargaining agreement.
‘‘(f) There are authorized to be appropriated, out of
the Postal Service Fund, such sums as may be necessary
for the Office of Inspector General of the United States
Postal Service.
‘‘(g) As used in this section, ‘Board of Governors’ and
‘Board’ each has the meaning given it by section 102 of
title 39, United States Code.’’.
(2) RELATED PROVISIONS.—
For certain related provisions, see section 503(b).
(c) AUDITS OF THE POSTAL SERVICE.—
(1) AUDITS.—Subsection (e) of section 2008 of
title 39, United States Code, is amended to read as
follows:
‘‘(e)(1) At least once each year beginning with the
fiscal year commencing after the date of the enactment
of the Postal Accountability and Enhancement Act, the
financial statements of the Postal Service (including those
used in determining and establishing postal rates) shall
be audited by the Inspector General or by an independent
external auditor selected by the Inspector General.
‘‘(2) Audits under this section shall be conducted in
accordance with applicable generally accepted government
auditing standards.
‘‘(3) Upon completion of the audit required by this
subsection, the person who audits the statement shall sub-
mit a report on the audit to the Postmaster General.’’.
(2) RESULTS OF INSPECTOR GENERAL’S AUDIT
TO
BE
INCLUDED
IN
ANNUAL
REPORT.—Section
2402 of title 39, United States Code, is amended by
inserting after the first sentence the following:
‘‘Each report under this section shall include, for the
most recent fiscal year for which a report under sec-
tion 2008(e) is available (unless previously trans-
mitted under the following sentence), a copy of such
report.’’.
(3) 
COORDINATION
PROVISIONS.—Section
2008(d) of title 39, United States Code, is
amended—
(A) by striking ‘‘(d) Nothing’’ and insert-
ing ‘‘(d)(1) Except as provided in paragraph
(2), nothing’’; and
(B) by adding at the end the following:
‘‘(2) An audit or report under paragraph (1) may not
be obtained without the prior written approval of the In-
spector General.’’.
(4) SAVINGS PROVISION.—For purposes of any
fiscal year preceding the first fiscal year com-
mencing after the date of the enactment of this Act,
the provisions of title 39, United States Code, shall
be applied as if the amendments made by this sub-
section had never been enacted.
(d) REPORTS.—Section 3013 of title 39, United
States Code, is amended by striking ‘‘Postmaster Gen-
eral’’ each place it appears and inserting ‘‘Chief Postal
Inspector’’.
(e) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) RELATING
TO
THE
INSPECTOR
GENERAL
ACT OF 1978.—(A) Subsection (a) of section 8H of
the Inspector General Act of 1978 (as amended by
section 601(a) and redesignated by subsection (b) of
this section) is further amended—
(i) in paragraph (2) by striking ‘‘the Post-
al Regulatory Commission, and the United
States Postal Service;’’ and inserting ‘‘and the
Postal Regulatory Commission;’’ and
(ii) in paragraph (4) by striking ‘‘except
that’’ and all that follows through ‘‘Code);’’ and
inserting ‘‘except that, with respect to the Na-
tional Science Foundation, such term means the
National Science Board;’’.
(B)(i) Subsection (f) of section 8H of such Act
(as so redesignated) is repealed.
(ii) Subsection (c) of section 8H of such Act (as
so redesignated) is amended by striking ‘‘Except as
provided under subsection (f) of this section, the’’
and inserting ‘‘The’’.
(C) Section 8J of such Act (as so redesignated)
is amended—
(i) by striking all after ‘‘8D,’’ and before
‘‘of this Act’’ and inserting ‘‘ 8E, 8F, 8G, or
8I’’; and
(ii) by striking ‘‘8G(a)’’ and inserting
‘‘8H(a)’’.
(2) RELATING TO TITLE 39, UNITED STATES
CODE.—(A) Subsection (e) of section 202 of title 39,
United States Code, is repealed.
(B) Paragraph (4) of section 102 of such title
39 (as amended by section 101) is amended to read
as follows:
‘‘(4) ‘Inspector General’ means the Inspector
General of the United States Postal Service, ap-
pointed under section 3(a) of the Inspector General
Act of 1978;’’.
(C) The first sentence of section 1003(a) of
such title 39 is amended by striking ‘‘chapters 2 and
12 of this title, section 8G of the Inspector General
Act of 1978, or other provision of law,’’ and insert-
ing ‘‘chapter 2 or 12 of this title, subsection (b) or
(c) of section 1003 of this title, or any other provi-
sion of law,’’.
(D) Section 1003(b) of such title 39 is amended
by striking ‘‘respective’’ and inserting ‘‘other’’.
(E) Section 1003(c) of such title 39 is amended
by striking ‘‘included’’ and inserting ‘‘includes’’.
(3) RELATING
TO
THE
FEDERAL
PROPERTY
AND ADMINISTRATIVE SERVICES ACT OF 1949.—Sec-
tion 304C(b)(1) of the Federal Property and Admin-
istrative 
Services 
Act 
of 
1949 
(41 
U.S.C.
254d(b)(1)) is amended by striking ‘‘8G’’ and insert-
ing ‘‘8H’’.
(4) RELATING TO THE ENERGY POLICY ACT OF
1992.—Section 160(a) of the Energy Policy Act of
1992 (42 U.S.C. 8262f(a)) is amended (in the mat-
ter before paragraph (1)) by striking all that follows
‘‘(5 U.S.C. App.)’’ and before ‘‘shall—’’.
(f) EFFECTIVE DATE; ELIGIBILITY OF PRIOR IN-
SPECTOR GENERAL.—
(1) EFFECTIVE DATE.—
(A) IN GENERAL.—Except as provided in
subparagraph (B) or subsection (c), this section
and the amendments made by this section shall
take effect on the date of the enactment of this
Act.
(B) SPECIAL RULES.—
(i) IN GENERAL.—If the position of
Inspector General of the United States
Postal Service is occupied on the date of
enactment of this Act (other than by an in-
dividual serving due to a vacancy arising in
that position before the expiration of his or
her predecessor’s term), then, for purposes
of the period beginning on such date of en-
actment and ending on January 5, 2004,
or, if earlier, the date on which such indi-
vidual ceases to serve in that position, title
39, United States Code, and the Inspector
General Act of 1978 shall be applied as if
the amendments made by this section had
not been enacted, except—
(I) for those made by subsections
(c) and (d); and
(II) as provided in clause (ii).
(ii) AUTHORIZATION
OF
APPROPRIA-
TIONS.—
(I) 
IN
GENERAL.—Notwith-
standing any other provision of this
paragraph, subsection (f) of section
8G of the Inspector General Act of
1978 (as amended by this section)
shall be effective for purposes of fiscal
years beginning on or after October 1,
2002.
(II) SAVINGS
PROVISION.—For
purposes of the fiscal year ending on
September 30, 2002, funding for the
Office of Inspector General of the
United States Postal Service shall be
made available in the same manner as
if this Act had never been enacted.
(2) ELIGIBILITY
OF
PRIOR
INSPECTOR
GEN-
ERAL.—Nothing in this Act shall prevent any indi-
vidual who has served as Inspector General of the
United States Postal Service at any time before the
date of the enactment of this Act from being ap-
pointed to that position pursuant to the amendments
made by this section.
TITLE VII—NATIONAL
COMMISSION; EVALUATIONS
SEC. 701. NATIONAL COMMISSION ON THE FUTURE OF THE
POSTAL SERVICE.
(a) ESTABLISHMENT.—There is established a com-
mission to be known as the National Commission on the
Future of the Postal Service (hereinafter in this section
referred to as the ‘‘Commission’’).
(b) DUTIES OF THE COMMISSION.—The Commission
shall examine the mission and role of the Postal Service
and shall make recommendations on how to improve the
efficiency and long-term viability of the Postal Service. In
carrying out this responsibility, the Commission shall
study and make recommendations on—
(1) the appropriate scope and standards for
universal postal service;
(2) how to address the human-capital chal-
lenges facing the Postal Service, including how em-
ployee-management relations within the Postal Serv-
ice may be improved;
(3) how to optimize the postal infrastructure,
including the best methods for providing retail serv-
ices that ensure convenience and access to cus-
tomers;
(4) how to ensure the safety and security of the
mail and of postal employees;
(5) how to minimize areas of inefficiency or
waste and improve operations involved in the collec-
tion, processing, or delivery of mail;
(6) what business model would best promote an
efficient, reliable, and innovative Postal Service that
can meet the needs of the Nation and its citizens;
and
(7) other issues that the Commission deter-
mines are relevant to ensuring the long-term viabil-
ity of the Postal Service.
(c) POSTAL SERVICE TRANSFORMATION.—In car-
rying out its responsibilities under this section, the Com-
mission shall examine issues raised and options presented
for the long term transformation of the Postal Service
in—
(1) the April 2002 report of the Postal Service
entitled ‘‘United States Postal Service Trans-
formation Plan’’; and
(2) the February 2002 report of the General
Accounting Office entitled ‘‘U.S. Postal Service: De-
teriorating Financial Outlook Increases Need for
Transformation’’.
(d) MEMBERSHIP.—
(1) NUMBER AND APPOINTMENT.—The Com-
mission shall be composed of 11 members, of
whom—
(A) 2 shall be appointed by the President;
(B) 2 shall be appointed by the majority
leader of the Senate;
(C) 2 shall be appointed by the minority
leader of the Senate;
(D) 2 shall be appointed by the Speaker of
the House of Representatives;
(E) 2 shall be appointed by the minority
leader of the House of Representatives; and
(F) 1 shall be appointed jointly by the
President, the majority leader of the Senate,
and the Speaker of the House of Representa-
tives, and shall serve as chair of the Commis-
sion.
(2) DEADLINE FOR APPOINTMENT.—Members
of the Commission shall be appointed by not later
than 90 days after the date of the enactment of this
Act.
(3) MEETINGS.—The Commission shall meet at
the call of its chair or a majority of its members.
(4) QUORUM.—A quorum shall consist of 6
members of the Commission, except that 4 members
may conduct a hearing under subsection (f).
(5) VOTING.—The votes of at least 8 Commis-
sioners shall be required in order for any rec-
ommendation to be considered a recommendation of
the Commission.
(6) COMPENSATION.—Members of the Commis-
sion shall be paid at a rate to be established by the
President, not to exceed the rate payable for level I
of the Executive Schedule under section 5312 of title
5, United States Code.
(7) QUALIFICATIONS.—An individual appointed
to serve on the Commission shall have expertise in
mail delivery, organizational efficiency, labor rela-
tions, or other relevant subject areas.
(e) STAFF AND SUPPORT SERVICES.—
(1) EXECUTIVE
DIRECTOR.—The Chairman
shall appoint an executive director of the Commis-
sion who shall be paid the rate of basic pay for level
V of the Executive Schedule.
(2) STAFF.—With the approval of the Commis-
sion, the executive director may appoint such per-
sonnel as the executive director considers appro-
priate.
(3) APPLICABILITY OF CIVIL SERVICE LAWS.—
The staff of the Commission shall be appointed with-
out regard to the provisions of title 5, United States
Code, governing appointments in the competitive
service, and shall be paid without regard to the pro-
visions of chapter 51 and subchapter III of chapter
53 of such title (relating to classification and Gen-
eral Schedule pay rates).
(4) EXPERTS
AND
CONSULTANTS.—With the
approval of the Commission, the executive director
may procure temporary and intermittent services
under section 3109(b) of title 5, United States Code.
(5) PHYSICAL FACILITIES.—The Administrator
of the General Services Administration shall locate
suitable office space for the operation of the Com-
mission. The facilities shall serve as the head-
quarters of the Commission and shall include all
necessary equipment and incidentals required for the
proper functioning of the Commission.
(f) POWERS OF THE COMMISSION.—
(1) HEARINGS
AND
OTHER
ACTIVITIES.—For
the purpose of carrying out its duties, the Commis-
sion may hold such hearings and undertake such
other activities as the Commission determines to be
necessary to carry out its duties.
(2) STUDIES
BY
THE
GENERAL
ACCOUNTING
OFFICE.—Upon the request of the Commission, the
Comptroller General shall conduct such studies or
investigations as the Commission determines to be
necessary to carry out its duties.
(3) COST ESTIMATES BY THE POSTAL SERVICE
AND THE POSTAL REGULATORY COMMISSION.—The
Postal Service and the Postal Regulatory Commis-
sion, or both, shall provide to the Commission, upon
its request, such cost estimates as the Commission
determines to be necessary to carry out its duties.
(4) TECHNICAL
ASSISTANCE.—Upon the re-
quest of the Commission, the head of a Federal
agency shall provide such technical assistance to the
Commission as the Commission determines to be
necessary to carry out its duties.
(5) OBTAINING
INFORMATION.—The Commis-
sion may secure directly from any Federal agency
information necessary to enable it to carry out its
duties. Upon request of the chair of the Commission,
the head of such agency shall furnish such informa-
tion to the Commission.
(6) ADMINISTRATIVE
SUPPORT
SERVICES.—
Upon the request of the Commission, the Adminis-
trator of General Services shall provide to the Com-
mission on a reimbursable basis such administrative
support services as the Commission may request.
(7) PRINTING.—For purposes of costs relating
to printing and binding, including the cost of per-
sonnel detailed from the Government Printing Of-
fice, the Commission shall be deemed to be a com-
mittee of the Congress.
(g) REPORT.—Not later than 30 months after date
of the enactment of this Act, the Commission shall submit
a report to the President and Congress which shall contain
a detailed statement of the findings and conclusions of the
Commission, together with its recommendations for any
legislation or administrative action which the Commission
considers appropriate.
(h) TERMINATION.—The Commission shall terminate
30 days after the date of submission of the report required
under section (g).
(i) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated from the Postal Service
100
Fund such sums as may be necessary to carry out this
section.
SEC. 702. ASSESSMENTS OF RATEMAKING, CLASSIFICA-
TION, AND OTHER PROVISIONS.
(a) IN GENERAL.—The Postal Regulatory Commis-
sion shall, at least every 5 years, submit a report to the
President and the Congress concerning—
(1) the operation of the amendments made by
the Postal Accountability and Enhancement Act;
and
(2) recommendations for any legislation or
other measures necessary to improve the effective-
ness or efficiency of the postal laws of the United
States.
(b) POSTAL SERVICE VIEWS.—A report under this
section shall be submitted only after reasonable oppor-
tunity has been afforded to the Postal Service to review
such report and to submit written comments thereon. Any
comments timely received from the Postal Service under
the preceding sentence shall be attached to the report sub-
mitted under subsection (a).
(c) SPECIFIC INFORMATION REQUIRED.—The Postal
Regulatory Commission shall include, as part of at least
its first report under subsection (a), the following:
101
(1) COST-COVERAGE REQUIREMENT RELATING
TO COMPETITIVE PRODUCTS COLLECTIVELY.—With
respect to section 3633 of title 39, United States
Code (as amended by this Act)—
(A) a description of how such section has
operated; and
(B) recommendations as to whether or not
such section should remain in effect and, if so,
any suggestions as to how it might be improved.
(2) COMPETITIVE PRODUCTS FUND.—With re-
spect to the Postal Service Competitive Products
Fund (under section 2011 of title 39, United States
Code, as amended by section 301), in consultation
with the Secretary of the Treasury—
(A) a description of how such Fund has
operated;
(B) any suggestions as to how the oper-
ation of such Fund might be improved; and
(C) a description and assessment of alter-
native accounting or financing mechanisms that
might be used to achieve the objectives of such
Fund.
(3) ASSUMED FEDERAL INCOME TAX ON COM-
PETITIVE PRODUCTS FUND.—With respect to section
3634 of title 39, United States Code (as amended by
102
this Act), in consultation with the Secretary of the
Treasury—
(A) a description of how such section has
operated; and
(B) recommendations as to whether or not
such section should remain in effect and, if so,
any suggestions as to how it might be improved.
SEC. 703. STUDY ON EQUAL APPLICATION OF LAWS TO
COMPETITIVE PRODUCTS.
(a) IN GENERAL.—The Federal Trade Commission
shall prepare and submit to the President and Congress,
within 1 year after the date of the enactment of this Act,
a comprehensive report identifying Federal and State laws
that apply differently to products of the United States
Postal Service in the competitive category of mail (within
the meaning of section 102 of title 39, United States Code,
as amended by section 101) and similar products provided
by private companies.
(b) RECOMMENDATIONS.—The Federal Trade Com-
mission shall include such recommendations as it con-
siders appropriate for bringing such legal discrimination
to an end.
(c) CONSULTATION.—In preparing its report, the
Federal Trade Commission shall consult with the United
States Postal Service, the Postal Regulatory Commission,
103
other Federal agencies, mailers, private companies that
provide delivery services, and the general public, and shall
append to such report any written comments received
under this subsection.
SEC. 704. GREATER DIVERSITY IN POSTAL SERVICE EXECU-
TIVE AND ADMINISTRATIVE SCHEDULE MAN-
AGEMENT POSITIONS.
(a) STUDY.—The Board of Governors shall study
and, within 1 year after the date of the enactment of this
Act, submit to the President and Congress a report con-
cerning the extent to which women and minorities are rep-
resented in supervisory and management positions within
the United States Postal Service. Any data included in the
report shall be presented in the aggregate and by pay level.
(b) PERFORMANCE
EVALUATIONS.—The United
States Postal Service shall, as soon as practicable, take
such measures as may be necessary to ensure that, for
purposes of conducting performance appraisals of super-
visory or managerial employees, appropriate consideration
shall be given to meeting affirmative action goals, achiev-
ing equal employment opportunity requirements, and im-
plementation of plans designed to achieve greater diversity
in the workforce.
104
SEC. 705. PLAN FOR ASSISTING DISPLACED WORKERS.
(a) PLAN.—The United States Postal Service shall,
before the deadline specified in subsection (b), develop and
be prepared to implement, whenever necessary, a com-
prehensive plan under which reemployment assistance
shall be afforded to employees displaced as a result of the
automation or privatization of any of its functions.
(b) REPORT.—Not later than 1 year after the date
of the enactment of this Act, the United States Postal
Service shall submit to its Board of Governors and Con-
gress a written report describing its plan under this sec-
tion.
SEC. 706. CONTRACTS WITH WOMEN, MINORITIES, AND
SMALL BUSINESSES.
The Board of Governors shall study and, within 1
year after the date of the enactment of this Act, submit
to the President and the Congress a report concerning the
number and value of contracts and subcontracts the Post-
al Service has entered into with women, minorities, and
small businesses.
SEC. 707. RATES FOR PERIODICALS.
(a) IN GENERAL.—The United States Postal Service,
acting jointly with the Postal Regulatory Commission and
the General Accounting Office, shall study and submit to
the President and Congress a report concerning—
105
(1) the quality, accuracy, and completeness of
the information used by the Postal Service in deter-
mining the direct and indirect postal costs attrib-
utable to periodicals; and
(2) any opportunities that might exist for im-
proving efficiencies in the collection, handling, trans-
portation, or delivery of periodicals by the Postal
Service, including any pricing incentives for mailers
that might be appropriate.
(b) RECOMMENDATIONS.—The report shall include
recommendations for any administrative action or legisla-
tion that might be appropriate.
SEC. 708. ASSESSMENT OF CERTAIN RATE DEFICIENCIES.
(a) IN GENERAL.—Within 12 months after the date
of the enactment of this Act, the Office of Inspector Gen-
eral of the United States Postal Service shall study and
submit to the President, the Congress, and the United
States Postal Service, a report concerning the administra-
tion of section 3626(k) of title 39, United States Code.
(b) SPECIFIC REQUIREMENTS.—The study and re-
port shall specifically address the adequacy and fairness
of the process by which assessments under section 3626(k)
of title 39, United States Code, are determined and ap-
pealable, including—
106
(1) whether the Postal Regulatory Commission
or any other body outside the Postal Service should
be assigned a role; and
(2) whether a statute of limitations should be
established for the commencement of proceedings by
the Postal Service thereunder.
SEC. 709. 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 404 of title 39, United States Code, as
amended by sections 102 and 808(f), is further amended
by adding at the end the following:
‘‘(f)(1) The Postal Service may employ guards for all
buildings and areas owned or occupied by the Postal Serv-
ice or under the charge and control of the Postal Service,
and such guards shall have, with respect to such property,
the powers of special policemen provided by the first sec-
tion of the Act cited in paragraph (2), and, as to such
property, the Postmaster General (or his designee) may
take any action that the Administrator of General Services
107
(or his designee) may take under section 2 or 3 of such
Act, attaching thereto penalties under the authority and
within the limits provided in section 4 of such Act.
‘‘(2) The Act cited in this paragraph is the Act of
June 1, 1948 (62 Stat. 281), commonly known as the
‘Protection of Public Property Act’.’’.
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
‘‘(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
108
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
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 take effect on October
1, 2001.
SEC. 804. OBSOLETE PROVISIONS.
(a) REPEAL.—
109
(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 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
(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
110
inserting ‘‘(or such length of time as may be determined
by the Postal Service to be advisable or appropriate)’’.
(2) Section 5402(c) 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. EXPANDED CONTRACTING AUTHORITY.
(a) AMENDMENT
TO TITLE 39, UNITED STATES
CODE.—
(1) CONTRACTS
WITH
AIR
CARRIERS.—Sub-
section (d) of section 5402 of title 39, United States
Code, is amended to read as follows:
‘‘(d)(1) The Postal Service may contract with any air
carrier for the transportation of mail by aircraft in inter-
state air transportation, including the rates therefor, ei-
ther through negotiations or competitive bidding.
‘‘(2) Notwithstanding subsections (a) through (c), the
Postal Service may contract with any air carrier or foreign
air carrier for the transportation of mail by aircraft in
foreign air transportation, including the rates therefor, ei-
ther through negotiations or competitive bidding, except
that—
111
‘‘(A) any such contract may be awarded only to
(i) an air carrier holding a certificate required by
section 41101 of title 49 or an exemption therefrom
issued by the Secretary of Transportation, (ii) a for-
eign air carrier holding a permit required by section
41301 of title 49 or an exemption therefrom issued
by the Secretary of Transportation, or (iii) a com-
bination of such air carriers or foreign air carriers
(or both);
‘‘(B) mail transported under any such contract
shall not be subject to any duty-to-carry requirement
imposed by any provision of subtitle VII of title 49
or by any certificate, permit, or corresponding ex-
emption authority issued by the Secretary of Trans-
portation under that subtitle;
‘‘(C) every contract that the Postal Service
awards to a foreign air carrier under this paragraph
shall be subject to the continuing requirement that
air carriers shall be afforded the same opportunity
to carry the mail of the country to and from which
the mail is transported and the flag country of the
foreign air carrier, if different, as the Postal Service
has afforded the foreign air carrier; and
‘‘(D) the Postmaster General shall consult with
the Secretary of Defense concerning actions that af-
112
fect the carriage of military mail transported in for-
eign air transportation.
‘‘(3) Paragraph (2) shall not be interpreted as sus-
pending or otherwise diminishing the authority of the Sec-
retary of Transportation under section 41310 of title 49.’’.
(2) DEFINITIONS.—Subsection (e) of section
5402 of title 39, United States Code, is amended to
read as follows:
‘‘(e) For purposes of this section, the terms ‘air car-
rier’, ‘air transportation’, ‘foreign air carrier’, ‘foreign air
transportation’, ‘interstate air transportation’, and ‘mail’
shall have the meanings given such terms in section 40102
of title 49.’’.
(b) AMENDMENTS TO TITLE 49, UNITED STATES
CODE.—
(1) AUTHORITY OF POSTAL SERVICE TO PRO-
VIDE
FOR
INTERSTATE
AIR
TRANSPORTATION
OF
MAIL.—Section 41901(a) of title 49, United States
Code, is amended to read as follows:
‘‘(a) TITLE 39.—The United States Postal Service
may provide for the transportation of mail by aircraft in
air transportation under this chapter and under chapter
54 of title 39.’’.
(2) SCHEDULES
FOR
CERTAIN
TRANSPOR-
TATION OF MAIL.—Section 41902(b)(1) of title 49,
113
United States Code, is amended by inserting before
the semicolon at the end the following: ‘‘(other than
foreign air transportation of mail)’’.
(3) PRICES FOR FOREIGN TRANSPORTATION OF
MAIL.—Section 41907 of title 49, United States
Code, is amended—
(A) by striking ‘‘(a) LIMITATIONS.—’’; and
(B) by striking subsection (b).
(4) 
CONFORMING
AMENDMENTS.—Sections
41107, 41901(b)(1), 
41902(a), 
41903(a), 
and
41903(b) of title 49, United States Code, are
amended by striking ‘‘in foreign air transportation
or’’.
SEC. 806. 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:
‘‘(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
114
other similar entity, as further defined under regulations
prescribed by the Postal Regulatory Commission.’’.
SEC. 807. REPEAL OF SECTION 5403.
(a) IN GENERAL.—Section 5403 of title 39, United
States Code, is repealed.
(b) CLERICAL AMENDMENT.—The analysis for chap-
ter 54 of title 39, United States Code, is amended by re-
pealing the item relating to section 5403.
SEC. 808. TECHNICAL AND CONFORMING AMENDMENTS.
(a) REDUCED RATES.—Section 3626 of title 39,
United States Code, is amended—
(1) in subsection (a)—
(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).’’; and
115
(B) 
by 
redesignating 
paragraphs 
(4)
through (7) as paragraphs (3) through (6), re-
spectively;
(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
116
of such issue outside the county of publication (not count-
ing recipients of copies subject to paragraph (3)) is less
than 5,000.’’;
(3) in subsection (j)(1)(D)—
(A) by striking ‘‘and’’ at the end of sub-
clause (I); and
(B) by adding after subclause (II) the fol-
lowing:
‘‘(III) clause (i) shall not apply to space
advertising in mail matter that otherwise quali-
fies for rates under former section 4452(b) or
4452(c) of this title, and satisfies the content
requirements established by the Postal Service
for periodical publications.’’; and
(4) 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).’’.
(b) REIMBURSEMENT.—Section 3681 of title 39,
United States Code, is amended by striking ‘‘section
3628’’ and inserting ‘‘sections 3662 through 3664’’.
117
(c) SIZE AND WEIGHT LIMITS.—Section 3682 of title
39, United States Code, is amended to read as follows:
‘‘§ 3682. Size and weight limits
‘‘The Postal Service may establish size and weight
limitations for mail matter in the market-dominant cat-
egory of mail consistent with regulations the Postal Regu-
latory Commission may prescribe under section 3622. The
Postal Service may establish size and weight limitations
for mail matter in the competitive category of mail con-
sistent with its authority under section 3632.’’.
(d) REVENUE FOREGONE, ETC.—Title 39, United
States Code, is amended—
(1) in section 503 (as so redesignated by sec-
tion 501) by striking ‘‘this chapter.’’ and inserting
‘‘this title.’’; and
(2) in section 2401(d) by inserting ‘‘(as last in
effect before enactment of the Postal Accountability
and Enhancement Act)’’ after ‘‘3626(a)’’ and after
‘‘3626(a)(3)(B)(ii)’’.
(e) APPROPRIATIONS
AND REPORTING REQUIRE-
MENTS.—
(1) APPROPRIATIONS.—Subsection (e) of sec-
tion 2401 of title 39, United States Code, is
amended—
118
(A) by striking ‘‘Committee on Post Office
and Civil Service’’ each place it appears and in-
serting ‘‘Committee on Government Reform’’;
and
(B) by striking ‘‘Not later than March 15
of each year,’’ and inserting ‘‘Each year,’’.
(2) 
REPORTING
REQUIREMENTS.—Sections
2803(a) and 2804(a) of title 39, United States
Code, are amended by striking ‘‘2401(g)’’ and in-
serting ‘‘2401(e)’’.
(f) AUTHORITY TO FIX RATES AND CLASSES GEN-
ERALLY; REQUIREMENT RELATING TO LETTERS SEALED
AGAINST INSPECTION.—Section 404 of title 39, United
States Code (as amended by section 102) is further
amended by redesignating subsections (b) and (c) as sub-
sections (d) and (e), respectively, and by inserting after
subsection (a) the following:
‘‘(b) Except as otherwise provided, the Governors are
authorized to establish reasonable and equitable classes of
mail and reasonable and equitable rates of postage and
fees for postal services in accordance with the provisions
of chapter 36. Postal rates and fees shall be reasonable
and equitable and sufficient to enable the Postal Service,
under best practices of honest, efficient, and economical
management, to maintain and continue the development
119
of postal services of the kind and quality adapted to the
needs of the United States.
‘‘(c) The Postal Service shall maintain one or more
classes of mail for the transmission of letters sealed
against inspection. The rate for each such class shall be
uniform throughout the United States, its territories, and
possessions. One such class shall provide for the most ex-
peditious handling and transportation afforded mail mat-
ter by the Postal Service. No letter of such a class of do-
mestic origin shall be opened except under authority of
a search warrant authorized by law, or by an officer or
employee of the Postal Service for the sole purpose of de-
termining an address at which the letter can be delivered,
or pursuant to the authorization of the addressee.’’.
(g) LIMITATIONS.—Section 3684 of title 39, United
States Code, is amended by striking all that follows ‘‘any
provision’’ and inserting ‘‘of this title.’’.
(h) MISCELLANEOUS.—Title 39, United States Code,
is amended—
(1) in section 410(b), by moving the left margin
of paragraph (10) 2 ems to the left;
(2) in section 1005(d)(2)—
(A) by striking ‘‘subsection (g) of section
5532,’’; and
120
(B) by striking ‘‘8344,’’ and inserting
‘‘8344’’;
(3) in the analysis for part III, by striking the
item relating to chapter 28 and inserting the fol-
lowing:
‘‘28. Strategic Planning and Performance Management ..... 2801’’;
(4) in subsections (h)(2) and (i)(2) of section
3001, by moving the left margin of subparagraph
(C) of each 2 ems to the left;
(5) in section 3005(a)—
(A) in the matter before paragraph (1), by
striking all that follows ‘‘nonmailable’’ and pre-
cedes ‘‘(h),’’ and inserting ‘‘under section
3001(d),’’; and
(B) in the sentence following paragraph
(3), by striking all that follows ‘‘nonmailable’’
and precedes ‘‘(h),’’ and inserting ‘‘under such
section 3001(d),’’;
(6) in section 3210(a)(6)(C), by striking the
matter after ‘‘if such mass mailing’’ and before
‘‘than 60 days’’ and inserting ‘‘is postmarked
fewer’’;
(7) in section 3626(a), by moving the left mar-
gin of paragraphs (3), (5), and (6) (as so redesig-
nated by subsection (a)(1)(B), and including each
subparagraph thereunder (if any)) 2 ems to the left;
121
(8) by striking the heading for section 3627
and inserting the following:
‘‘§ 3627. Adjusting free rates’’; and
(9) in section 5402(g)(1), by moving the left
margin of subparagraph (D) (including each clause
thereunder) 2 ems to the left.
Æ