I
104TH CONGRESS
2D SESSION
H. R. 3717
To reform the postal laws of the United States.
IN THE HOUSE OF REPRESENTATIVES
JUNE 25, 1996
Mr. MCHUGH (for himself and Mr. CLINGER) introduced the following bill;
which was referred to the Committee on Government Reform and Over-
sight, and in addition to the Committee on the Judiciary, for a period
to be subsequently determined by the Speaker, in each case for consider-
ation of such provisions as fall within the jurisdiction of the committee
concerned
A BILL
To reform the postal laws of the United States.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Postal Reform Act of 1996’’.
(b) TABLE OF CONTENTS.—The table of contents for
this Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I—ORGANIZATION
Sec. 101. Redesignations relating to the Governors and the Board of
Governors.
Sec. 102. Redesignations relating to the Postmaster General and the Deputy
Postmaster General.
Sec. 103. Change in salary of Directors.
Sec. 104. Amendments relating to establishing an Office of Inspector General
within the United States Postal Service and certain other
matters.
Sec. 105. Clarification relating to execution of amendments.
TITLE II—GENERAL AUTHORITY
Sec. 201. Employment of postal police officers.
Sec. 202. Date of postmark to be treated as date of appeal in connection with
the closing or consolidation of post offices.
TITLE III—PRESIDENTIAL POSTAL EMPLOYEE-MANAGEMENT
COMMISSION
Sec. 301. Presidential Postal Employee-Management Commission.
TITLE IV—FINANCE
Sec. 401. End of Treasury control of Postal Service banking.
Sec. 402. Postal Service investments.
Sec. 403. Exclusion from Federal Financing Bank.
Sec. 404. Elimination of Treasury preemption of borrowing by the Postal
Service.
Sec. 405. Elimination of Postal Service ‘‘put’’ on Treasury.
TITLE V—BUDGET AND APPROPRIATIONS PROCESS
Sec. 501. Repeal of provision relating to transitional appropriations.
Sec. 502. Provisions relating to benefits under chapter 81 of title 5, United
States Code, for officers and employees of the former Post
Office Department.
Sec. 503. Repeal of authorizations of appropriations for public service costs,
revenue forgone, and certain compensatory appropriations.
Sec. 504. Congressional oversight preserved.
TITLE VI—MISCELLANEOUS PROVISIONS RELATING TO POSTAL
RATES, CLASSES, AND SERVICES
Sec. 601. Change-of-address order involving a commercial mail receiving
agency.
Sec. 602. Reduced rates for certain nonprofit organizations.
Sec. 603. Powers of the Postal Rate Commission.
Sec. 604. Volume discounts.
TITLE VII—PROVISIONS RELATING TO THE TRANSPORTATION,
CARRIAGE, OR DELIVERY OF MAIL
Sec. 701. Obsolete provisions.
Sec. 702. Expanded contracting authority.
Sec. 703. Private carriage of letters.
Sec. 704. Mailbox demonstration project.
TITLE VIII—DIRECT APPEAL OF DECISIONS OF THE MERIT
SYSTEMS PROTECTION BOARD
Sec. 801. Direct appeal of decisions of the Merit Systems Protection Board.
TITLE IX—LAW ENFORCEMENT
Subtitle A—Amendments to Title 39, United States Code
Sec. 901. Make Federal assault statutes applicable to postal contract
employees.
Sec. 902. Sexually oriented advertising.
Sec. 903. Allow Postal Service to retain asset forfeiture recoveries.
Sec. 904. Hazardous matter.
Subtitle B—Other Provisions
Sec. 911. Stalking Federal officers and employees.
Sec. 912. Nonmailability of controlled substances.
Sec. 913. Enhanced penalties.
Sec. 914. Postal burglary provisions.
Sec. 915. Mail, money, or other property of the United States.
TITLE X—NEW SYSTEM RELATING TO POSTAL RATES, CLASSES,
AND SERVICES
Sec. 1001. Establishment.
Sec. 1002. Termination of ratemaking authority under chapter 36 and related
matters.
TITLE I—ORGANIZATION
SEC. 101. REDESIGNATIONS RELATING TO THE GOVERNORS
AND THE BOARD OF GOVERNORS.
(a) REFERENCES IN TITLE 39.—Title 39, United
States Code, is amended—
(1) by striking ‘‘Board of Governors’’ each
place it appears and inserting ‘‘Board of Directors’’;
(2) by striking ‘‘Governors’’ each place it ap-
pears (except wherever it appears in ‘‘Board of Gov-
ernors’’) and inserting ‘‘Directors’’; and
(3) by striking ‘‘Governor’’ each place it ap-
pears and inserting ‘‘Director’’.
(b) REFERENCES OUTSIDE TITLE 39.—Any ref-
erence in any provision of law outside title 39, United
States Code, enacted before the date of the enactment of
this Act—
(1) to the Board of Governors, within the
meaning of section 102(2) of title 39, United States
Code, as in effect before the date of the enactment
of this Act, shall be treated as referring to the
Board of Directors, within the meaning of such sec-
tion 102(2), as amended by subsection (a); or
(2) to any of the Governors, within the meaning
of section 102(3) of title 39, United States Code, as
in effect before the date of the enactment of this
Act, shall be treated as referring to the correspond-
ing Director or Directors, within the meaning of
such section 102(3), as amended by subsection (a).
SEC. 102. REDESIGNATIONS RELATING TO THE POST-
MASTER GENERAL AND THE DEPUTY POST-
MASTER GENERAL.
(a) IN GENERAL.—(1) Section 202(c) of title 39,
United States Code, is amended by striking ‘‘Postmaster
General’’ and inserting ‘‘Chief Executive Officer of the
United States Postal Service’’.
(2) Section 202(d) of such title 39 is amended by
striking ‘‘Deputy Postmaster General’’ and inserting
‘‘Deputy Chief Executive Officer of the United States
Postal Service’’.
(3) Section 102 of such title 39 is amended by strik-
ing ‘‘and’’ at the end of paragraph (2), by striking the
period at the end of paragraph (3) and inserting a semi-
colon, and by adding after paragraph (3) the following:
‘‘(4) ‘Chief Executive Officer’, unless the con-
text otherwise requires, means the Chief Executive
Officer of the United States Postal Service ap-
pointed under section 202(c); and
‘‘(5) ‘Deputy Chief Executive Officer’, unless
the context otherwise requires, means the Deputy
Chief Executive Officer of the United States Postal
Service appointed under section 202(d).’’.
(b) OTHER REFERENCES IN TITLE 39.—Title 39,
United States Code, is further amended—
(1) by striking ‘‘Postmaster General’’ each
place it appears (except wherever it appears in
‘‘Deputy Postmaster General’’) and inserting ‘‘Chief
Executive Officer’’; and
(2) by striking ‘‘Deputy Postmaster General’’
each place it appears and inserting ‘‘Deputy Chief
Executive Officer’’.
(c) REFERENCES OUTSIDE TITLE 39.—Any ref-
erence in any provision of law outside title 39, United
States Code, enacted before the date of the enactment of
this Act—
(b) TRANSFER OF FUNCTIONS.—Paragraph (1) of
section 9(a) of the Inspector General Act of 1978 is
amended—
(1) in subparagraph (U) by striking ‘‘and’’
after the semicolon; and
(2) by adding at the end the following:
‘‘(X) of the United States Postal Service,
that portion of the Postal Inspection Service
which is engaged in internal audit activities or
program review activities; and’’.
(c) SPECIAL PROVISIONS.—The Inspector General
Act of 1978 is amended by redesignating the first and sec-
ond sections 8G as sections 8H and 8I, respectively, and
by inserting after section 8F the following:
‘‘SPECIAL PROVISIONS CONCERNING THE UNITED STATES
POSTAL SERVICE
‘‘SEC. 8G. (a) In carrying out the duties and respon-
sibilities specified in this Act, the Inspector General of the
United States Postal Service shall have oversight respon-
sibility for all activities of the Postal Inspection Service,
including any internal investigation performed by the
Postal Inspection Service. The Chief Postal Inspector shall
promptly report to such Inspector General the significant
activities being carried out by the Postal Inspection Serv-
ice.
‘‘(b) Notwithstanding paragraphs (7) and (8) of sec-
tion 6(a), the Inspector General of the United States Post-
al Service may select, appoint, and employ such officers
and employees as may be necessary for carrying out the
functions, powers, and duties of the Office of Inspector
General, and to obtain the temporary or intermittent serv-
ices of experts or consultants or an organization of experts
or consultants, subject to the applicable laws and regula-
tions that govern such selections, appointments, and em-
ployment, and the obtaining of such services, within the
United States Postal Service.’’.
(d) OFFICE OF THE INSPECTOR GENERAL AS A SEP-
ARATE ITEM IN ANNUAL BUDGET AND OTHER REQUIRE-
MENTS.—
(1) SEPARATE ITEM IN ANNUAL BUDGET.—For
purposes of the fifth sentence of section 2009 of title
39, United States Code, the operations of the Office
of Inspector General of the United States Postal
Service shall be considered a major type of activity.
(2) PAY.—Section 5315 of title 5, United
States Code, is amended by adding at the end the
following:
‘‘Inspector General, United States Postal Serv-
ice.’’.
The amendment made by this paragraph shall apply
notwithstanding section 410 or any other provision
of title 39, United States Code.
(3) STRATEGIC PLANS.—
(A) OFFICE OF INSPECTOR GENERAL OF
THE
UNITED
STATES
POSTAL
SERVICE.—The
first Inspector General of the United States
Postal Service appointed pursuant to the
amendments made by this section shall prepare
a strategic plan addressing staffing require-
ments, general goals and objectives for major
functions and operations of the Office, and a
description of how goals and objectives of the
Office are to be achieved (including a descrip-
tion of operational processes, skills and tech-
nology, and the human, capital, information,
and other resources required to meet those
goals and objectives). Such plan shall be pre-
pared in time to be included with the annual
budget under section 2009 of title 39, United
States Code, next due to be submitted after the
end of the 6-month period beginning on the
date of appointment.
(B) POSTAL
INSPECTION
SERVICE.—The
Chief Postal Inspector shall, with respect to the
Postal Inspection Service, prepare a strategic
plan similar in content to that required under
subparagraph (A) with respect to the Office of
Inspector General of the United States Postal
Service. Such plan shall be prepared in time to
be included with the annual budget under sec-
tion 2009 of such title 39 next due to be sub-
mitted after the end of the 30-day period begin-
ning on the date of the enactment of this Act.
(4) COMPENSATION AND BENEFITS.—
(A) OFFICE OF INSPECTOR GENERAL OF
THE UNITED STATES POSTAL SERVICE.—Com-
pensation and benefits for all officers and em-
ployees serving in or under the Office of Inspec-
tor General of the United States Postal Service
shall be maintained on a standard of com-
parability to the compensation and benefits paid
for comparable levels of work in the Office of
Inspector General of other establishments
(within the meaning of section 11(2) of the In-
spector General Act of 1978).
(B) POSTAL INSPECTORS.—Compensation
and benefits for all Postal Inspectors shall be
maintained on a standard of comparability to
the compensation and benefits paid for com-
parable levels of work in the executive branch of
the Government outside of the United States
Postal Service. As used in this subparagraph,
the term ‘‘Postal Inspector’’ includes any agent
to whom any investigative powers are granted
under section 3061 of title 18, United States
Code.
(e) POSTAL RATE COMMISSION.—Section 8H of the
Inspector General Act of 1978 (as so redesignated by sub-
section (c)) is amended in subsection (a)(2) by inserting
‘‘the Postal Rate Commission,’’ after ‘‘the Smithsonian
Institution,’’.
(f) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) RELATING TO TITLE 39, UNITED STATES
CODE.—(A) Section 410(b) of title 39, United States
Code, is amended—
(i) by striking ‘‘and’’ at the end of para-
graph (9); and
(ii) by amending paragraph (10) to read as
follows:
‘‘(10) the Inspector General Act of 1978; and’’.
(B)(i) Section 204 of such title 39 is amend-
ed—
(I) by amending the section heading to
read as follows:
‘‘§ 204. General Counsel; Judicial Officer; Chief Postal
Inspector’’;
(II) in the first sentence by striking ‘‘such
number of Assistant Postmasters General as
the Board shall consider appropriate, and a Ju-
dicial Officer.’’ and inserting ‘‘a Judicial Offi-
cer, and a Chief Postal Inspector.’’;
(III) in the second sentence by striking
‘‘and the Judicial Officer’’ and inserting ‘‘the
Judicial Officer, and the Chief Postal Inspec-
tor’’; and
(IV) by adding at the end the following:
‘‘The Chief Postal Inspector shall report to, and
be under the general supervision of, the Chief
Executive Officer. The Chief Executive Officer
shall promptly notify the Directors and both
Houses of Congress in writing if he or she re-
moves the Chief Postal Inspector or transfers
the Chief Postal Inspector to another position
or location within the Postal Service, and shall
include in any such notification the reasons for
the removal or transfer.’’.
(ii) The table of sections for chapter 2 of such
title 39 is amended by striking the item relating to
section 204 and inserting the following:
‘‘204. General Counsel; Judicial Officer; Chief Postal Inspector.’’.
(2) RELATING
TO
THE
INSPECTOR
GENERAL
ACT OF 1978.—The Inspector General Act of 1978 is
amended—
(A) in section 8H (as so redesignated by
subsection (c))—
(i) in subsection (a)(2) by striking
‘‘Tennessee Valley Authority,’’ and all that
follows through the semicolon and insert-
ing ‘‘Tennessee Valley Authority, and the
United States International Trade Com-
mission;’’; and
(ii)(I) by striking subsection (f) and
redesignating subsections (g) and (h) as
subsections (f) and (g), respectively;
(II) in paragraphs (3) and (4) of sub-
section (a) by striking ‘‘(h)(1)’’ and insert-
ing ‘‘(g)(1)’’; and
(III) in subsection (c) by striking
‘‘Except as provided under subsection (f)
of this section, the’’ and inserting ‘‘The’’;
and
(B) in section 8I (as so redesignated by
subsection (c)) by striking ‘‘or 8E’’ and insert-
ing ‘‘8E, or 8G’’.
(3) RELATED PROVISION.—Section 304C(b)(1)
of the Federal Property and Administrative Services
Act (41 U.S.C. 254d(b)(1)) is amended by striking
‘‘8G’’ and inserting ‘‘8H’’.
(g) EFFECTIVE DATE; INTERIM SERVICE.—
(1) EFFECTIVE DATE.—This section and the
amendments made by this section shall take effect
upon the expiration of the 3-month period beginning
on the date of the enactment of this Act.
(2) INTERIM SERVICE.—The individual serving
as Inspector General of the United States Postal
Service on the day before this section takes effect
may continue to serve in that capacity until—
(A) an Inspector General of the United
States Postal Service has been appointed and
taken office pursuant to the amendments made
by this section; or
(B) if earlier, such individual ceases to be
the Chief Postal Inspector.
SEC. 105. CLARIFICATION RELATING TO EXECUTION OF
AMENDMENTS.
Any amendment made in this title to a term ‘‘each
place it appears’’ (or other words to the same effect) shall
be considered to include such term when it appears in a
table of contents or a section heading.
TITLE II—GENERAL AUTHORITY
SEC. 201. EMPLOYMENT OF POSTAL POLICE OFFICERS.
Section 404 of title 39, United States Code, is
amended by adding at the end the following:
‘‘(c)(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 Chief Executive Officer (or his designee)
may take any action that the Administrator of General
Services (or his designee) may take under section 2 or 3
of such Act, attaching thereto penalties under the author-
ity 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 Pro-
tection of Public Property Act.’’.
SEC. 202. 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 follow-
ing:
‘‘(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 lawfully delivered to the Commission by
an enterprise in the private sector of the economy
engaged in the delivery of mail, be considered to
have been received on the date determined based on
any appropriate documentation or other indicia (as
determined under regulations of the Commission).’’.
(b) EFFECTIVE DATE.—This section and the amend-
ments made by this section shall apply with respect to any
determination to close or consolidate a post office which
is first made available, in accordance with paragraph (3)
of section 404(b) of title 39, United States Code, after
the end of the 3-month period beginning on the date of
the enactment of this Act.
TITLE III—PRESIDENTIAL POST-
AL EMPLOYEE-MANAGEMENT
COMMISSION
SEC. 301. PRESIDENTIAL POSTAL EMPLOYEE-MANAGE-
MENT COMMISSION.
(a) IN GENERAL.—Section 206 of title 39, United
States Code, is amended to read as follows:
‘‘§ 206. Presidential Postal Employee-Management
Commission
‘‘(a) There shall be established a Presidential Postal
Employee-Management Commission (hereinafter in this
section referred to as the ‘Commission’).
‘‘(b)(1) The Commission shall study and make rec-
ommendations, in accordance with this section, on how
employee-management relations within the Postal Service
might be improved.
‘‘(2) The Commission shall submit its recommenda-
tions—
‘‘(A) to the President and the Congress, to the
extent that they involve any legislation; and
‘‘(B) to the Postal Service, to the extent that
no legislation would be involved.
‘‘(3) All recommendations shall be submitted in the
form of a written report, with the first set of reports due
within 18 months after the Commission is first con-
stituted, and the second and third sets of reports in 12-
month intervals thereafter.
‘‘(4) The Commission shall terminate after submit-
ting its third set of reports.
‘‘(c)(1) The Commission shall be composed of 7 mem-
bers, all of whom shall be appointed by the President. Of
the members—
‘‘(A) 2 shall be appointed from among persons
who will represent the views of nonpostal labor orga-
nizations familiar with issues common to postal em-
ployees;
‘‘(B) 2 shall be appointed from among persons
who will represent the views of the management of
private corporations similar in size to the Postal
Service;
‘‘(C) 2 shall be appointed from among persons
well known in the fields of employee-management re-
lations, labor mediation, and collective bargaining;
and
‘‘(D) 1 shall be appointed from among persons
well known in the fields described in subparagraph
(C), who are also generally viewed as not being pre-
disposed to the interests of employees or manage-
ment.
‘‘(2) All members shall be appointed for the life of
the Commission.
‘‘(3) Not more than 4 members may be of the same
political party.
‘‘(4) Members shall serve without compensation, but
shall be reimbursed for necessary travel and reasonable
expenses incurred in attending meetings of the Commis-
sion.
‘‘(5) The member appointed under paragraph (1)(D)
shall serve as chairman of the Commission.
‘‘(d)(1) The Commission shall have a Director who
shall be appointed by the Commission and paid at a rate
not to exceed the rate of basic pay payable for level IV
of the Executive Schedule under section 5315 of title 5.
‘‘(2) Upon request of the Commission, the Federal
Mediation and Conciliation Service may detail, on a reim-
bursable basis, any of the personnel of that agency to the
Commission to assist it in carrying out its duties under
this Act.
‘‘(3) The Commission may not appoint or retain any
staff, except as provided in paragraph (1) or (2).’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of chapter 2 of title 39, United States
Code, is amended by striking the item relating to section
206 and inserting the following:
‘‘206. Presidential Postal Employee-Management Commission.’’.
TITLE IV—FINANCE
SEC. 401. END OF TREASURY CONTROL OF POSTAL SERV-
ICE BANKING.
(a) IN GENERAL.—Subsection (d) of section 2003 of
title 39, United States Code, is amended to read as fol-
lows:
‘‘(d)(1) The Postal Service, in its sole discretion—
‘‘(A) may provide that amounts which would
otherwise be deposited in the revolving fund referred
to in subsection (a) shall instead, to the extent con-
sidered appropriate by the Postal Service, be directly
deposited in a Federal Reserve bank or a depository
for public funds selected by the Postal Service; and
‘‘(B) may provide for transfers of amounts
under this subsection between or among—
‘‘(i) Federal Reserve banks;
‘‘(ii) depositories for public funds; and
‘‘(iii) the revolving fund referred to in sub-
section (a).
‘‘(2) The Postal Service, after consultation with the
Secretary of the Treasury, shall prepare and may from
time to time revise a master plan for the exercise of any
authority under this subsection. Such plan shall address—
‘‘(A) the criteria that shall be applied by the
Postal Service in deciding when and how any such
authority shall be exercised;
‘‘(B) matters such as risk limitations, reserve
balances, allocation or distribution of monies, liquid-
ity requirements, and measures to safeguard against
losses;
‘‘(C) the types of notification or consultation re-
quirements the Postal Service shall follow in connec-
tion with any exercise or proposed exercise of au-
thority under this subsection; and
‘‘(D) procedures under which the Postal Service
shall, at least annually, render a full accounting as
to how any authority under this subsection has been
exercised during the period involved.
‘‘(3)(A) Authority under this subsection may not be
exercised except in accordance with applicable provisions
of the master plan under paragraph (2).
‘‘(B) The Postal Service shall submit its master plan
(and any revision thereof) to the President, the Secretary
of the Treasury, and each House of Congress at least 30
days before the date of its proposed implementation.’’.
(b) SAVINGS PROVISION.—Until the authority under
section 2003(d) of title 39, United States Code, as amend-
ed by subsection (a), becomes available, the provisions of
such section 2003(d), as last in effect before being so
amended, shall be treated as if still in effect.
(c) STATUS
OF MONIES UNCHANGED.—(1) Any
amounts invested under section 2003(c) of title 39, United
States Code, as amended by this title, shall be considered
to be part of the Postal Service Fund, to the same extent
as if they had been invested under section 2003(c) of such
title 39, as last in effect before the date of the enactment
of this Act.
(2) Any amounts deposited or transferred under sec-
tion 2003(d) of title 39, United States Code, as amended
by this title, shall be considered to be part of the Postal
Service Fund, to the same extent as if they had been
transferred under section 2003(d) of such title 39, as last
in effect before the date of the enactment of this Act.
SEC. 402. POSTAL SERVICE INVESTMENTS.
Section 2003(c) of title 39, United States Code, is
amended by striking all after ‘‘it may’’ and inserting the
following: ‘‘invest such amounts as it considers appro-
priate in obligations of, or obligations guaranteed by, the
Government of the United States.’’.
SEC. 403. EXCLUSION FROM FEDERAL FINANCING BANK.
Section 2005(d) of title 39, United States Code, is
amended—
(1) in paragraph (4) by striking ‘‘and’’ after
the semicolon;
(2) in paragraph (5) by striking the period and
inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(6) notwithstanding the provisions of the Fed-
eral Financing Bank Act of 1973 or any other provi-
sion of law (except as may be specifically provided
by reference to this paragraph in any Act enacted
after this paragraph takes effect), not be eligible for
purchase by, or commitment to purchase by, or sale
or issuance to, the Federal Financing Bank.’’.
SEC. 404. ELIMINATION OF TREASURY PREEMPTION OF
BORROWING BY THE POSTAL SERVICE.
Section 2006(a) of title 39, United States Code, is
amended by striking all after the first sentence.
SEC. 405. ELIMINATION OF POSTAL SERVICE ‘‘PUT’’ ON
TREASURY.
Section 2006(b) of title 39, United States Code, is
amended to read as follows:
‘‘(b) The Secretary of the Treasury may purchase ob-
ligations of the Postal Service in such amounts as the Sec-
retary of the Treasury and the Postal Service, in their dis-
cretion, may agree.’’.
TITLE V—BUDGET AND
APPROPRIATIONS PROCESS
SEC. 501. REPEAL OF PROVISION RELATING TO TRANSI-
TIONAL APPROPRIATIONS.
(a) REPEAL.—(1) Section 2004 of title 39, United
States Code, is repealed.
(2) The item relating to section 2004 in the table of
sections at the beginning of chapter 20 of such title 39
is repealed.
(3) Section 2003(e)(2) of such title 39 is amended
by striking ‘‘sections 2401 and 2004’’ each place it ap-
pears and inserting ‘‘section 2401’’.
(b) CLARIFICATION THAT LIABILITIES FORMERLY
PAID PURSUANT TO SECTION 2004 REMAIN LIABILITIES
PAYABLE BY THE POSTAL SERVICE.—Section 2003 of
title 39, United States Code, is amended by adding at the
end the following:
‘‘(h) Liabilities of the former Post Office Department
to the Employees’ Compensation Fund (appropriations for
which were authorized by former section 2004, as in effect
before the effective date of this subsection) shall be liabil-
ities of the Postal Service payable out of the Fund.’’.
(c) EFFECTIVE DATE.—This section and the amend-
ments made by this section shall take effect on October
1, 1997.
SEC. 502. 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 follow-
ing:
‘‘(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, 1997.
SEC. 503. REPEAL OF AUTHORIZATIONS OF APPROPRIA-
TIONS FOR PUBLIC SERVICE COSTS, REVE-
NUE 
FORGONE, 
AND 
CERTAIN 
COMPEN-
SATORY APPROPRIATIONS.
(a) IN GENERAL.—Section 2401 of title 39, United
States Code, is amended by striking subsections (b), (c),
(d), (f), and (g), and by redesignating subsection (e) as
subsection (b).
(b) CONFORMING AMENDMENTS.—(1) Section 2003
of title 39, United States Code, is amended—
(A) in subsection (e) by striking paragraph (2)
and by redesignating subsection (e)(1) as subsection
(e); and
(B) by striking subsection (f) and by redesig-
nating subsection (g) as subsection (f).
(2) Section 2009 of such title 39 is amended by strik-
ing the last two sentences.
(3) Sections 2803(a) and 2804(a) of such title 39 are
amended by striking ‘‘2401(g)’’ and inserting ‘‘2401(b)’’.
(4) Section 3626(a)(2)(B) of such title 39 is amended
by striking ‘‘paragraph (3)(A) or section 2401(c);’’ and
inserting ‘‘paragraph (3)(A), section 3217, or sections
3403–3406;’’.
(5)(A) Section 3627 of such title 39 is repealed.
(B) The item relating to section 3627 in the table
of sections at the beginning of chapter 36 of such title
39 is repealed.
(C) Section 3684 of such title 39 is amended by strik-
ing ‘‘Except as provided in section 3627 of this title, no’’
and inserting ‘‘No’’.
(c) EFFECTIVE DATE.—This section and the amend-
ments made by this section shall take effect on October
1, 1997.
SEC. 504. CONGRESSIONAL OVERSIGHT PRESERVED.
Subsection (b) of section 2401 of title 39, United
States Code, as so redesignated by section 503(a), is
amended—
(1) by striking ‘‘Committee on Post Office and
Civil Service’’ each place it appears and inserting
‘‘Committee on Government Reform and Oversight’’;
(2) by striking ‘‘and the Committees on Appro-
priations of the Senate and the House of Represent-
atives’’;
(3) in the matter before paragraph (1)—
(A) by striking ‘‘2009 of this title,’’ and
inserting ‘‘2009 for a fiscal year,’’; and
(B) by striking ‘‘for the fiscal year for
which funds are requested to be appropriated,’’
and inserting ‘‘for such fiscal year,’’;
(4) in paragraph (3) by striking ‘‘during the
fiscal year for which funds are requested to be ap-
propriated,’’ and inserting ‘‘during the fiscal year re-
ferred to in the matter before paragraph (1),’’;
(5) by striking ‘‘Not later than March 15 of
each year,’’ and inserting ‘‘Each year,’’; and
(6) by striking ‘‘any such committee considers
necessary to determine the amount of funds to be
appropriated for the operation of the Postal Serv-
ice,’’ and inserting ‘‘either such committee considers
necessary,’’.
TITLE 
VI—MISCELLANEOUS
PROVISIONS 
RELATING 
TO
POSTAL 
RATES, 
CLASSES,
AND SERVICES
SEC. 601. CHANGE-OF-ADDRESS ORDER INVOLVING A COM-
MERCIAL MAIL RECEIVING AGENCY.
(a) IN GENERAL.—Subchapter V of chapter 36 of
title 39, United States Code, 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 agen-
cy—
‘‘(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.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of chapter 36 of title 39, United States
Code, is amended by adding after the item relating to sec-
tion 3685 the following:
‘‘3686. Change-of-address order involving a commercial mail receiving agency.’’.
SEC. 602. REDUCED RATES FOR CERTAIN NONPROFIT OR-
GANIZATIONS.
(a) RATES FOR CERTAIN NONPROFIT EDUCATIONAL
INSTITUTIONS.—Section 3626(b)(3) of title 39, United
States Code, is amended by striking the period and insert-
ing ‘‘, and includes a nonprofit organization that coordi-
nates a network of college-level courses that is sponsored
primarily by nonprofit educational institutions for an older
adult constituency.’’.
(b) RATES
FOR MAIL UNDER FORMER SECTION
4358.—Section 3626 of title 39, United States Code, is
amended by adding at the end the following:
‘‘(n) In the administration of this section, matter
shall not be excluded from being mailed at the rates for
mail under former section 4358 solely because such matter
does not meet the requirements of former section
4354(a)(5).’’.
SEC. 603. POWERS OF THE POSTAL RATE COMMISSION.
Section 3604 of title 39, United States Code, is
amended by adding at the end the following:
‘‘(f)(1) Any Commissioner of the Commission, any
administrative law judge appointed by the Commission
under section 3105 of title 5, and any employee of the
Commission designated by the Commission may admin-
ister oaths, examine witnesses, take depositions, and re-
ceive 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 under
section 3624 or 3661 or chapter 37—
‘‘(A) issue subpenas requiring the attendance
and presentation of testimony of any individual, and
the production of documentary or other evidence,
from any place in the United States, any territory
or possession of the United States, the Common-
wealth of Puerto Rico, or the District of Columbia;
and
‘‘(B) order the taking of depositions and re-
sponses to written interrogatories.
The written concurrence of a majority of the Commis-
sioners then holding office shall, with respect to each sub-
pena under subparagraph (A), be required in advance of
its issuance.
‘‘(3) In the case of contumacy or failure to obey a
subpena 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 subpena
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.
‘‘(g)(1) If the Postal Service determines that any doc-
ument or other matter it provides to the Commission pur-
suant to a subpena issued under subsection (f), or other-
wise at the request of the Commission in connection with
any proceeding or other purpose under this chapter or
chapter 37, 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 chapter or chapter 37 which is conducted in
accordance with sections 556 and 557 of title 5. The Com-
mission shall, by regulations based on rule 26(c) of the
Federal Rules of Civil Procedure, establish appropriate ad-
ministrative and other safeguards to ensure the security
and confidentiality of any information furnished under the
preceding sentence.’’.
SEC. 604. VOLUME DISCOUNTS.
(a) IN GENERAL.—Subsection (c) of section 403 of
title 39, United States Code, is amended by striking ‘‘(c)’’
and inserting ‘‘(c)(1)’’ and by adding at the end the fol-
lowing:
‘‘(2) Nothing in this title shall be considered to pre-
clude the Postal Service from offering any discount in a
rate or fee, on the basis of volume, so long as—
‘‘(A) all persons are, with respect to the class
of mail or postal service involved, eligible for the
same volume discount; and
‘‘(B) the discounted rate—
‘‘(i) if a product in the noncompetitive cat-
egory of mail is involved, does not exceed the
maximum rate then allowable for such product
under subchapter II of chapter 37; or
‘‘(ii) if a product in the competitive cat-
egory of mail is involved, satisfies the require-
ment under section 3742(b) that each such
product bear the direct and indirect postal costs
attributable to such product plus a reasonable
contribution to all other costs of the Postal
Service.’’.
(b) DEMONSTRATION PROJECT.—
(1) IN GENERAL.—
(A) PURPOSE.—As soon as practicable
after the date of the enactment of this Act, the
United States Postal Service shall conduct a
demonstration project, the purpose of which
shall be to determine the feasibility and desir-
ability of affording volume discounts to mailers
on a negotiated basis.
(B) 
LIMITATION.—The 
demonstration
project shall be limited to products in the com-
petitive category of mail (within the meaning of
section 3741(2) of title 39, United States Code,
as amended by section 1001).
(C) DISCOUNTS.—Under the demonstra-
tion project, any discounts shall be on such
terms and conditions as may be mutually
agreed to by the Postal Service and the mailer,
subject to section 403(c)(2)(B)(ii) of title 39,
United States Code (as amended by subsection
(a)).
(2) 
OTHER
REQUIREMENTS.—Subsections
(c)(1)(A), (d)(1) (excluding subparagraphs (A)(i),
(B)(ii), and (C)(ii) thereof), and (e) of section 704
shall apply with respect to the demonstration project
under this subsection.
(c) EFFECTIVE DATE.—This section and the amend-
ments made by this section shall take effect on the date
on which section 1002 (relating to termination of rate-
making authority under chapter 36 and related matters)
takes effect.
TITLE VII—PROVISIONS RELAT-
ING 
TO 
TRANSPORTATION,
CARRIAGE, OR DELIVERY OF
MAIL
SEC. 701. OBSOLETE PROVISIONS.
(a) REPEAL.—Chapter 52 of title 39, United States
Code, is repealed.
(b) 
CONFORMING
AMENDMENTS.—(1) 
Section
5005(a) of title 39, United States Code, is amended—
(A) by repealing paragraph (1); and
(B) in paragraph (4) by striking ‘‘(as defined in
section 5201(6) of this title)’’.
(2) Section 10721(b)(1) of title 49, United States
Code, is amended by striking ‘‘chapters 50 and 52’’ and
inserting ‘‘chapter 50’’.
(c) ELIMINATING RESTRICTION ON LENGTH OF CON-
TRACTS.—(1) Section 5005(b)(1) of title 39, United
States Code, is amended by striking ‘‘shall be for periods
not in excess of 4 years (or where the Postal Service deter-
mines that special conditions or the use of special equip-
ment warrants, not in excess of 6 years) and’’.
(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’’.
SEC. 702. EXPANDED CONTRACTING AUTHORITY.
Subsection (d) of section 5402 of title 39, United
States Code, is amended to read as follows:
‘‘(d) Notwithstanding the provisions of subsections
(a) through (c), the Postal Service may contract for the
transportation of mail by aircraft, except as provided in
subsections (f) and (g).’’.
SEC. 703. PRIVATE CARRIAGE OF LETTERS.
Section 601(a) of title 39, United States Code, is
amended by inserting ‘‘when the amount paid for private
carriage of the letter is at least $2, or’’ before ‘‘when’’.
SEC. 704. MAILBOX DEMONSTRATION PROJECT.
(a) PURPOSE.—The purpose of this section is to de-
termine the feasibility and desirability of allowing non-
postage bearing matter to be deposited in private
letterboxes.
(b) PROJECT.—As soon as practicable after the date
of the enactment of this Act, the United States Postal
Service shall—
(1) develop a plan for the conducting of a dem-
onstration project under this section; and
(2) within 18 months after the date of the en-
actment of this Act, commence implementation of
such plan.
(c) SPECIFICATIONS.—
(1) IN GENERAL.—The demonstration project—
(A) shall be conducted over a 3-year pe-
riod;
(B) shall include such areas as the Postal
Service considers appropriate, except that such
project shall include at least 1 urban area, 1
rural area, and 1 suburban area, each of which
shall involve a sufficient level of participation so
as to ensure meaningful results; and
(C) shall include provisions under which
any person may elect not to participate, or to
cease to participate, in the project.
(2) TEMPORARY SUSPENSION OF SECTION 1725
OF
TITLE
18.—Section 1725 of title 18, United
States Code, shall not apply with respect to conduct
occurring—
(A) within an area included in the dem-
onstration project; and
(B) while the demonstration project is on-
going.
(d) PROCEDURES.—
(1) IN GENERAL.—The Postal Service shall—
(A) develop a plan for the demonstration
project which identifies—
(i) the specific areas to be included in
the project;
(ii) the commencement and termi-
nation dates of the project;
(iii) the legal authority for the project;
and
(iv) specific details as to what the
project will entail;
(B) at least 90 days before commencing
implementation of the project—
(i) publish the proposed plan in the
Federal Register, including notice as to the
time and manner in which interested per-
sons may submit written comments; and
(ii) provide notification of the pro-
posed plan to persons served within the
areas to be included in the project, includ-
ing the relevant information as to the time,
form, and manner in which any such per-
son shall have the opportunity to present
their views, in writing or by oral presen-
tation, as they may elect; and
(C) after considering the comments and
views and any other information received under
subparagraph (B), prepare the final version of
the plan for such project and, not later than 30
days before commencing implementation of the
project—
(i) publish the final plan in the Fed-
eral Register; and
(ii) provide notification of the final
plan to persons served within the areas to
be included in the project.
(2) FACTORS TO BE TAKEN INTO ACCOUNT IN
SELECTING AREAS FOR INCLUSION.—In identifying
areas for inclusion in the demonstration project, the
Postal Service shall take into account—
(A) what types of data are needed in order
to permit a meaningful evaluation under sub-
section (e); and
(B) such other factors as the Postal Serv-
ice considers appropriate.
(3) WRITTEN
DETERMINATIONS.—Any deter-
mination of the Postal Service to commence imple-
mentation of the demonstration project shall be in
writing and shall include the findings of the Postal
Service with respect to the factors required to be
taken into account under paragraph (2). Such deter-
mination and findings shall be made available to the
persons served by the Postal Service within each
area included in the project.
(e) EVALUATION.—Not later than 1 year after the
demonstration project ends, the Comptroller General of
the United States shall submit to each House of Congress
a written evaluation of such project, including rec-
ommendations as to whether or not the authority tested
by the project should be broadened in scope and made per-
manent and, if so, with what modifications (if any).
TITLE VIII—DIRECT APPEAL OF
DECISIONS OF THE MERIT
SYSTEMS 
PROTECTION
BOARD
SEC. 801. DIRECT APPEAL OF DECISIONS OF THE MERIT
SYSTEMS PROTECTION BOARD.
Section 7703 of title 5, United States Code, is
amended by adding at the end the following:
‘‘(e)(1) The Chief Executive Officer may, with respect
to any employee of the Postal Service or applicant for em-
ployment with the Postal Service, and subject to the provi-
sions of sections 409(b)–(e) and 411 of title 39, obtain
review of any final order or decision of the Board by filing
a petition for judicial review in the United States Court
of Appeals for the Federal Circuit if the Chief Executive
Officer determines, in his or her discretion, that the Board
erred in interpreting a civil service law, rule, or regulation
affecting personnel management and that the Board’s de-
cision will have a substantial impact on a civil service law,
rule, regulation, or policy directive, as applied with respect
to the Postal Service. If the Chief Executive Officer did
not intervene in a matter before the Board, the Chief Ex-
ecutive Officer may not petition for review of a Board deci-
sion under this section unless the Chief Executive Officer
first petitions the Board for a reconsideration of its deci-
sion, and such petition is denied. In addition to the named
respondent, the Board and all other parties to the proceed-
ings before the Board shall have the right to appear in
the proceeding before the Court of Appeals. The granting
of the petition for judicial review shall be at the discretion
of the Court of Appeals.
‘‘(2) For purposes of applying the provisions of sec-
tion 7701(e) in the case of a decision that relates to an
employee of the Postal Service or applicant for employ-
ment with the Postal Service, such provisions shall be ap-
plied by substituting ‘Director or Chief Executive Officer
of the United States Postal Service’ for ‘Director’.
‘‘(3) For purposes of this subsection—
‘‘(A) the term ‘Chief Executive Officer’ means
the Chief Executive Officer of the United States
Postal Service; and
‘‘(B) the term ‘Postal Service’ means the Unit-
ed States Postal Service.’’.
TITLE IX—LAW ENFORCEMENT
Subtitle A—Amendments to Title
39, United States Code
SEC. 901. MAKE FEDERAL ASSAULT STATUTES APPLICABLE
TO POSTAL CONTRACT EMPLOYEES.
Section 1008 of title 39, United States Code, is
amended—
(1) in subsection (a) by inserting ‘‘or entrusted
with mail under contract with the Postal Service’’
after ‘‘mail’’; and
(2) in subsection (b) by inserting ‘‘an employee
of the Postal Service for the purposes of sections
111 and 1114 of title 18, and’’ after ‘‘deemed’’.
Subtitle B—Other Provisions
SEC. 911. STALKING FEDERAL OFFICERS AND EMPLOYEES.
(a) IN GENERAL.—Chapter 41 of title 18, United
States Code, is amended by adding at the end the follow-
ing:
‘‘§ 881. Stalking Federal and postal officers and em-
ployees
‘‘(a) Whoever—
‘‘(1) repeatedly engages in a pattern of conduct
(including maintaining a visual or physical proximity
or verbal or written threat) directed at another per-
son who is or was an officer or employee—
‘‘(A) in the executive, legislative, or judicial
branch of the Federal Government; or
‘‘(B) in the United States Postal Service;
while such other person is engaged in official duties
or on account of such duties;
‘‘(2) knows that such conduct is likely to place
that other person in reasonable fear of sexual bat-
tery, bodily injury, or death; and
‘‘(3) thereby induces such fear in that other
person;
shall be punished as provided in subsection (b) of this sec-
tion.