I
106TH CONGRESS
1ST SESSION
H. R. 2535
To preserve, protect, and promote the viability of the United States Postal
Service.
IN THE HOUSE OF REPRESENTATIVES
JULY 15, 1999
Mr. WAXMAN (for himself, Mr. FATTAH, Mr. OWENS, Mr. DAVIS of Illinois,
Mrs. MALONEY of New York, Ms. NORTON, Mr. CUMMINGS, Mr.
KUCINICH, and Ms. SCHAKOWSKY) introduced the following bill; which
was referred to the Committee on Government Reform
A BILL
To preserve, protect, and promote the viability of the United
States Postal Service.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SEC. 1. SHORT TITLE.
This Act may be cited as the ‘‘Postal Service En-
hancement Act’’.
TITLE I—RATEMAKING
FLEXIBILITIES
SEC. 101. COMPETITIVE AND NONCOMPETITIVE PRODUCTS
DEFINED.
Section 102 of title 39, United States Code, is
amended by striking ‘‘and’’ at the end of paragraph (3),
by striking the period at the end of paragraph (4) and
inserting a semicolon, and by adding at the end the fol-
lowing:
‘‘(5) ‘competitive product’ refers to any postal
product which the Postal Rate Commission has de-
termined, based on appropriate economic factors
prescribed by the Commission, competes for business
in a competitive market; and
‘‘(6) ‘noncompetitive product’ refers to any
postal product that is not a competitive product.’’.
SEC. 102. RATES AND FEES FOR NONCOMPETITIVE PROD-
UCTS.
(a) CURRENT RATEMAKING PROCEDURES CEASE TO
APPLY WITH RESPECT TO COMPETITIVE PRODUCTS.—
Section 3622(a) of title 39, United States Code, is amend-
ed by adding at the end the following: ‘‘This section shall
apply only in the case of noncompetitive products.’’.
(b) PROHIBITION
ON SUBSIDIZING COMPETITIVE
PRODUCTS.—Section 3622(b) of title 39, United States
Code, is amended by striking ‘‘and’’ at the end of para-
graph (8), by redesignating paragraph (9) as paragraph
(10), and by inserting after paragraph (8) the following:
‘‘(9) the requirement that no rate or fee for a
noncompetitive product shall subsidize any rate or
fee for a competitive product; and’’.
SEC. 103. AUTHORITY TO INCREASE RATES FOR NON-
COMPETITIVE PRODUCTS INCREMENTALLY.
Section 3624 of title 39, United States Code, is
amended by adding at the end the following:
‘‘(e) If a request made by the Postal Service under
section 3622 proposes that one or more rates of postage
or fees for postal services be changed incrementally, the
recommended decision of the Commission may include
provisions responsive to that proposal.’’.
SEC. 104. NEGOTIATED SERVICE AGREEMENTS.
Title 39, United States Code, is amended by inserting
after section 3642 the following:
‘‘§ 3643. Negotiated service agreements
‘‘(a) The Postal Service may enter into negotiated
service agreements with mail users under this section and
in accordance with the policies of this title.
‘‘(b) A negotiated service agreement may not be en-
tered into unless each of the following conditions is met:
‘‘(1) The agreement can reasonably be expected
to result in net benefits to the operation of a nation-
wide postal system.
‘‘(2) The Postal Service remains willing and
able to enter into similar negotiated service agree-
ments with other similarly situated mail users (de-
termined without regard to size).
‘‘(3) Rates and fees payable during the term of
the negotiated service agreement are reasonably cal-
culated to yield to the Postal Service total revenues
(after taking into account any costs avoided, and
any additional costs incurred, by the Postal Service
pursuant to the agreement) at least equal to the rev-
enues that would be generated over that same period
of time by application of the rate or rates chargeable
under the classification or classifications of mail
service most similar to the services performed under
the agreement.
‘‘(c) A negotiated service agreement that involves one
or more noncompetitive products shall not become effec-
tive unless the Postal Rate Commission first certifies, in
accordance with such expedited procedures as the Com-
mission shall by regulation establish, that the agreement
meets the requirements of this section. Certifications
under this subsection may, notwithstanding section 3628,
be appealed to any court of appeals of the United States.
‘‘(d) For purposes of this section, the term ‘nego-
tiated service agreement’ means an agreement between a
mail user and the Postal Service requiring performance
by the mail user, the Postal Service, or both, of any com-
bination of activities that, with respect to one or more
classes of mail, differs significantly from those that would
otherwise apply.’’.
SEC. 105. COMPETITIVE PRODUCTS.
Subchapter II of chapter 36 of title 39, United States
Code, is amended by adding at the end the following:
‘‘§ 3630. Competitive products
‘‘(a) The Postal Service may offer competitive prod-
ucts under this section and in accordance with the policies
of this title.
‘‘(b) A competitive product may not be offered unless
each of the following conditions is met:
‘‘(1) The product can reasonably be expected to
result in net benefits to the operation of a nation-
wide postal system.
‘‘(2) The rates or fees for the product—
‘‘(A) comply with the factors specified in
section 3622(b); and
‘‘(B) are not subsidized by any rates or
fees for noncompetitive products.
‘‘(c)(1) Interested parties who believe the Postal
Service is offering a competitive product which does not
conform to the policies set out in this title may lodge a
complaint with the Postal Rate Commission in such form
and in such manner as it may prescribe. The Commission
may, in its discretion, hold hearings on such complaint
and may issue an order providing for such interim relief
as the Commission considers appropriate. The Commis-
sion shall issue an order deciding the complaint as expedi-
tiously as possible.
‘‘(2) The Postal Service shall comply with orders of
the Commission under this subsection. Such orders may,
notwithstanding section 3628, be appealed to any court
of appeals of the United States.
‘‘(3) Section 3662 shall not apply to complaints relat-
ing to competitive products.’’.
SEC. 106. TECHNICAL AND CONFORMING AMENDMENTS.
(a) The heading for section 3622 of title 39, United
States Code, is amended to read as follows:
‘‘§ 3622. Rates and fees for noncompetitive products’’.
(b) The table of sections for chapter 36 of title 39,
United States Code, is amended—
(1) by striking the item relating to section 3622
and inserting the following:
‘‘3622. Rates and fees for noncompetitive products.’’;
(2) by adding after the item relating to section
3629 the following:
‘‘3630. Competitive products.’’; and
(3) by inserting after the item relating to sec-
tion 3642 the following:
‘‘3643. Negotiated service agreements.’’.
SEC. 107. SAVINGS PROVISIONS.
(a) POSTAL PRODUCTS; RATES AND FEES.—Until
otherwise provided in accordance with title 39, United
States Code (as amended by this title or as deemed to
have remained in effect under subsection (b), as the case
may be)—
(1) all postal products offered immediately be-
fore this Act takes effect shall continue being of-
fered; and
(2) all rates and fees in effect under such title
immediately before this Act takes effect shall remain
in effect.
(b) PROCEEDINGS PENDING.—This title shall not af-
fect any proceedings pending immediately before the date
of enactment of this Act, and any such proceedings shall
continue under applicable provisions of title 39, United
States Code, as last in effect before such date of enact-
ment, until completed or terminated in accordance there-
with.
TITLE 
II—NATIONAL 
COMMIS-
SION ON POSTAL EFFICIENCY
AND ENHANCEMENT
SEC. 201. ESTABLISHMENT.
There is established a commission to be known as the
‘‘National Commission on Postal Efficiency and Enhance-
ment’’ (hereinafter in this title referred to as the ‘‘Com-
mission’’).
SEC. 202. FUNCTIONS OF THE COMMISSION.
The Commission shall review the present practices
and organizational structure of the United States Postal
Service, with a view toward identifying—
(1) areas of inefficiency or waste; and
(2) methods for improving operations involved
in the collection, processing, or delivery of mail.
SEC. 203. MEMBERSHIP.
(a) NUMBER AND APPOINTMENT.—The Commission
shall be composed of 8 members appointed by the Presi-
dent, except that of those members—
(1) 2 shall be appointed from among individuals
recommended by the majority leader of the Senate;
and
(2) 2 shall be appointed from among individuals
recommended by the Speaker of the House of Rep-
resentatives.
(b) QUALIFICATIONS.—An individual appointed to
serve on the Commission shall have expertise in mail deliv-
ery, organizational efficiency, labor relations, or other rel-
evant subject areas.
(c) INITIAL APPOINTMENTS.—It is the sense of the
Congress that the members of the Commission should be
appointed within 90 days after the date of enactment of
this Act.
(d) CHAIRMAN.—The Chairman of the Commission
shall be designated by the President.
(e) PAY.—Members shall be paid at a rate to be es-
tablished 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.
SEC. 204. ADMINISTRATION.
(a) IN GENERAL.—The Chairman of the Commission
shall exercise the executive and administrative functions
of the Commission, and may appoint such staff as may
be necessary for the operation of the Commission.
(b) INFORMATION FROM AGENCIES.—The Commis-
sion may secure from any department, agency, inde-
pendent establishment, or other instrumentality of the
United States, any information necessary to enable it to
carry out its functions under this title. Upon receiving a
request under the preceding sentence, the head of the in-
strumentality involved shall, to the extent authorized by
law, furnish such information directly to the Commission.
SEC. 205. REPORTING REQUIREMENTS.
The Commission shall transmit to the President and
the Congress, within 2 years after the date of enactment
of this Act, a report containing a detailed statement of
the findings and conclusions of the Commission, together
with its recommendations for any legislation or adminis-
trative actions which the Commission considers appro-
priate.
SEC. 206. TERMINATION.
The Commission shall terminate as of the date on
which the work of the Commission has been completed.
TITLE III—ENHANCED AUTHORI-
TIES FOR THE POSTAL RATE
COMMISSION
SEC. 301. ENHANCED AUTHORITIES.
Section 3604 of title 39, United States Code, is
amended by adding at the end the following:
‘‘(f)(1) Any Commissioner of the Postal Rate Com-
mission, any administrative law judge appointed by the
Commission under section 3105 of title 5, and any em-
ployee of the Commission designated by the Commission,
may administer oaths, examine witnesses, take deposi-
tions, 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, or the production of
documentary or other evidence in the possession, of
any covered individual; and
‘‘(B) order the taking of depositions or re-
sponses to written interrogatories by a covered indi-
vidual.
‘‘(3) In the case of contumacy or failure to obey a
subpoena or order issued under this subsection, upon ap-
plication by the Commission, the district court of the
United States for the district in which the person to whom
the subpoena or order is addressed resides or is served
may issue an order requiring such person to appear at
any designated place to testify 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 individual’ means an officer or employee or agent of
the Postal Service or of a contractor of the Postal Service.
‘‘(g)(1) If the Postal Service determines that any tes-
timony, document, or other matter provided pursuant to
a subpoena or order issued under subsection (f), or other-
wise provided by the Postal Service to the Postal Rate
Commission in connection with any proceeding or other
purpose under this title, contains information which is de-
scribed in section 410(c) of this title, or exempt from pub-
lic disclosure under section 552(b) of title 5, the Postal
Service shall, at the time such matter is provided to the
Commission, notify the Commission, in writing, of its de-
termination (and the reasons therefor).
‘‘(2) The Commission shall establish procedures for
ensuring, where appropriate, the confidentiality of any in-
formation as to which it has been notified under para-
graph (1).’’.
Æ