only be used to purchase books on the same terms 
as are customarily available in the book industry to 
entities carrying out nonprofit bulk book purchase 
and distribution programs. 
(2) TERMS.—An entity offering books for pur-
chase under this Act shall be present to have met 
the requirements of paragraph (1), absent contrary 
evidence, if the terms include a discount of 43 per-
cent off the catalogue price of the books, with no ad-
ditional charge for shipping and handling of the 
books. 
(d) ADMINISTRATION.—The child care resource and 
referral agency may not use more than 6 percent of the 
funds made available through the contract for administra-
tive costs. 
SEC. 7. REPORT TO CONGRESS. 
Not later than 2 years of the date of enactment of 
this Act, the Secretary shall prepare and submit to Con-
gress a report on the implementation of the activities car-
ried out under this Act. 
SEC. 8. SPECIAL POSTAGE STAMPS FOR CHILD LITERACY. 
(a) IN GENERAL.—Chapter 4 of title 39, United 
States Code is amended by adding at the end the fol-
lowing:
‘‘§ 417. Special postage stamps for child literacy 
‘‘(a) In order to afford the public a convenient way 
to contribute to funding for child literacy, the Postal Serv-
ice shall establish a special rate of postage for first-class 
mail under this section. The stamps that bear the special 
rate of postage shall promote childhood literacy and shall, 
to the extent practicable, contain an image relating to a 
character in a children’s book or cartoon. 
‘‘(b)(1) The rate of postage established under this 
section—
‘‘(A) shall be equal to the regular first-class 
rate of postage, plus a differential of not to exceed 
25 percent; 
‘‘(B) shall be set by the Governors in accord-
ance with such procedures as the Governors shall by 
regulation prescribe (in lieu of the procedures de-
scribed in chapter 36); and 
‘‘(C) shall be offered as an alternative to the 
regular first-class rate of postage. 
‘‘(2) The use of the special rate of postage established 
under this section shall be voluntary on the part of postal 
patrons. 
‘‘(c)(1) Of the amounts becoming available for child 
literacy pursuant to this section, the Postal Service shall 
pay 100 percent to the Department of Health and Human 
Services.
‘‘(2) Payments made under this subsection to the De-
partment shall be made under such arrangements as the 
Postal Service shall by mutual agreement with such De-
partment establish in order to carry out the objectives of 
this section, except that, under those arrangements, pay-
ments to such agency shall be made at least twice a year. 
‘‘(3) In this section, the term ‘amounts becoming 
available for child literacy pursuant to this section’ 
means—
‘‘(A) the total amounts received by the Postal 
Service that the Postal Service would not have re-
ceived but for the enactment of this section; reduced 
by 
‘‘(B) an amount sufficient to cover reasonable 
costs incurred by the Postal Service in carrying out 
this section, including costs attributable to the print-
ing, sale, and distribution of stamps under this sec-
tion, 
as determined by the Postal Service under regulations that 
the Postal Service shall prescribe. 
‘‘(d) It is the sense of Congress that nothing in this 
section should—
‘‘(1) directly or indirectly cause a net decrease 
in total funds received by the Department of Health 
and Human Services, or any other agency of the
Government (or any component or program of the 
Government), below the level that would otherwise 
have been received but for the enactment of this sec-
tion; or 
‘‘(2) affect regular first-class rates of postage 
or any other regular rates of postage. 
‘‘(e) Special postage stamps made available under 
this section shall be made available to the public beginning 
on such date as the Postal Service shall by regulation pre-
scribe, but in no event later than 12 months after the date 
of enactment of this section. 
‘‘(f) The Postmaster General shall include in each re-
port provided under section 2402, with respect to any pe-
riod during any portion of which this section is in effect, 
information concerning the operation of this section, ex-
cept that, at a minimum, each report shall include infor-
mation on—
‘‘(1) the total amounts described in subsection 
(c)(3)(A) that were received by the Postal Service 
during the period covered by such report; and 
‘‘(2) of the amounts described in paragraph (1), 
how much (in the aggregate and by category) was 
required for the purposes described in subsection 
(c)(3)(B).
‘‘(g) This section shall cease to be effective at the 
end of the 2-year period beginning on the date on which 
special postage stamps made available under this section 
are first made available to the public.’’. 
(b) CONFORMING AMENDMENT.—The analysis for 
chapter 4 of title 39, United States Code, is amended by 
adding at the end the following:
‘‘417. Special postage stamps for child literacy.’’.
SEC. 9. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated to carry out 
this Act $50,000,000 for each of fiscal years 2003 through 
2007.
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