‘‘(2) EXEMPTION AUTHORITY.—The Postal Regu-
latory Commission may, upon written application of 
the Postal Service, exempt the market test from the 
limit in paragraph (1) if the total revenues that are 
anticipated, or in fact received, by the Postal Service 
from such product do not exceed $50,000,000 in any 
year, subject to subsection (g). In reviewing an appli-
cation under this paragraph, the Postal Regulatory 
Commission shall approve such application if it de-
termines that— 
‘‘(A) the product is likely to benefit the pub-
lic and meet an expected demand; 
‘‘(B) the product is likely to contribute to 
the financial stability of the Postal Service; and 
‘‘(C) the product is not likely to result in 
unfair or otherwise inappropriate competition. 
‘‘(f) CANCELLATION.—If the Postal Regulatory Com-
mission at any time determines that a market test under 
this section fails, with respect to any particular product, 
to meet one or more of the requirements of this section, it 
may order the cancellation of the test involved or take such 
other action as it considers appropriate. A determination 
under this subsection shall be made in accordance with such 
procedures as the Commission shall by regulation prescribe.
‘‘(g) ADJUSTMENT FOR INFLATION.—For purposes of 
each year following the year in which occurs the deadline 
for the Postal Service’s first report to the Postal Regulatory 
Commission under section 3652(a), each dollar amount con-
tained in this section shall be adjusted by the change in 
the Consumer Price Index for such year (as determined 
under regulations of the Commission). 
‘‘(h) DEFINITION OF A SMALL BUSINESS CONCERN.— 
The criteria used in defining small business concerns or oth-
erwise categorizing business concerns as small business con-
cerns shall, for purposes of this section, be established by 
the Postal Regulatory Commission in conformance with the 
requirements of section 3 of the Small Business Act. 
‘‘(i) EFFECTIVE DATE.—Market tests under this sub-
chapter may be conducted in any year beginning with the 
first year in which occurs the deadline for the Postal Serv-
ice’s first report to the Postal Regulatory Commission under 
section 3652(a). 
‘‘§ 3642. New products and transfers of products be-
tween the market-dominant and competi-
tive categories of mail 
‘‘(a) IN GENERAL.—Upon request of the Postal Service 
or users of the mails, or upon its own initiative, the Postal 
Regulatory Commission may change the list of market-dom-
inant products under section 3621 and the list of competi-
tive products under section 3631 by adding new products 
to the lists, removing products from the lists, or transferring 
products between the lists. 
‘‘(b) CRITERIA.—All determinations by the Postal Reg-
ulatory Commission under subsection (a) shall be made in 
accordance with the following criteria: 
‘‘(1) The market-dominant category of products 
shall consist of each product in the sale of which the 
Postal Service exercises sufficient market power that 
it can effectively set the price of such product substan-
tially above costs, raise prices significantly, decrease 
quality, or decrease output, without risk of losing 
business to other firms offering similar products. The 
competitive category of products shall consist of all 
other products. 
‘‘(2) EXCLUSION
OF
PRODUCTS
COVERED
BY 
POSTAL MONOPOLY.—A product covered by the postal 
monopoly shall not be subject to transfer under this 
section from the market-dominant category of mail. 
For purposes of the preceding sentence, the term 
‘product covered by the postal monopoly’ means any 
product the conveyance or transmission of which is 
reserved to the United States under section 1696 of 
title 18, subject to the same exception as set forth in 
the last sentence of section 409(e)(1).
‘‘(3) ADDITIONAL CONSIDERATIONS.—In making 
any decision under this section, due regard shall be 
given to— 
‘‘(A) the availability and nature of enter-
prises in the private sector engaged in the deliv-
ery of the product involved; 
‘‘(B) the views of those who use the product 
involved on the appropriateness of the proposed 
action; and 
‘‘(C) the likely impact of the proposed ac-
tion on small business concerns (within the 
meaning of section 3641(h)). 
‘‘(c) TRANSFERS OF SUBCLASSES AND OTHER SUBOR-
DINATE UNITS ALLOWABLE.—Nothing in this title shall be 
considered to prevent transfers under this section from being 
made by reason of the fact that they would involve only 
some (but not all) of the subclasses or other subordinate 
units of the class of mail or type of postal service involved 
(without regard to satisfaction of minimum quantity re-
quirements standing alone). 
‘‘(d) NOTIFICATION
AND
PUBLICATION
REQUIRE-
MENTS.— 
‘‘(1) NOTIFICATION REQUIREMENT.—The Postal 
Service shall, whenever it requests to add a product 
or transfer a product to a different category, file with
the Postal Regulatory Commission and publish in the 
Federal Register a notice setting out the basis for its 
determination that the product satisfies the criteria 
under subsection (b) and, in the case of a request to 
add a product or transfer a product to the competi-
tive category of mail, that the product meets the regu-
lations promulgated by the Postal Regulatory Com-
mission pursuant to section 3633. The provisions of 
section 504(g) shall be available with respect to any 
information required to be filed. 
‘‘(2) PUBLICATION
REQUIREMENT.—The Postal 
Regulatory Commission shall, whenever it changes the 
list of products in the market-dominant or competi-
tive category of mail, prescribe new lists of products. 
The revised lists shall indicate how and when any 
previous lists (including the lists under sections 3621 
and 3631) are superseded, and shall be published in 
the Federal Register. 
‘‘(e) NOTIFICATION REQUIREMENT.—The Postal Regu-
latory Commission shall, whenever it reaches a conclusion 
that a product or products should be transferred between 
the list of market-dominant products under section 3621 
and the list of competitive products under section 3631, im-
mediately notify the appropriate committees of the Con-
gress. No such transfer may take effect less than 12 months 
after such conclusion. 
‘‘(f) PROHIBITION.—Except as provided in section 
3641, no product that involves the carriage of letters, print-
ed matter, or mailable packages may be offered by the Post-
al Service unless it has been assigned to the market-domi-
nant or competitive category of mail (as appropriate) ei-
ther— 
‘‘(1) under this subchapter; or 
‘‘(2) by or under any other provision of law.’’. 
SEC. 204. REPORTING REQUIREMENTS AND RELATED PRO-
VISIONS. 
(a) REDESIGNATION.—Chapter 36 of title 39, United 
States Code (as in effect before the amendment made by sub-
section (b)) is amended by striking the heading for sub-
chapter IV and inserting the following: 
‘‘SUBCHAPTER V—POSTAL SERVICES, 
COMPLAINTS, AND JUDICIAL REVIEW’’. 
(b) REPORTS AND COMPLIANCE.—Chapter 36 of title 
39, United States Code, is amended by inserting after sub-
chapter III the following:
‘‘SUBCHAPTER IV—REPORTING REQUIREMENTS 
AND RELATED PROVISIONS 
‘‘§ 3651. Annual reports by the Commission 
‘‘(a) IN GENERAL.—The Postal Regulatory Commis-
sion shall submit an annual report to the President and 
the Congress concerning the operations of the Commission 
under this title, including the extent to which regulations 
are achieving the objectives under sections 3622 and 3633, 
respectively. 
‘‘(b) ADDITIONAL INFORMATION.—In addition to the 
information required under subsection (a), each report 
under this section shall also include, with respect to the pe-
riod covered by such report, an estimate of the costs in-
curred by the Postal Service in providing— 
‘‘(1) postal services to areas of the Nation where, 
in the judgment of the Postal Regulatory Commission, 
the Postal Service either would not provide services at 
all or would not provide such services in accordance 
with the requirements of this title if the Postal Service 
were not required to provide prompt, reliable, and ef-
ficient services to patrons in all areas and all com-
munities, including as required under the first sen-
tence of section 101(b); 
‘‘(2) free or reduced rates for postal services as 
required by this title; and
‘‘(3) other public services or activities which, in 
the judgment of the Postal Regulatory Commission, 
would not otherwise have been provided by the Postal 
Service but for the requirements of law. 
The Commission shall detail the bases for its estimates and 
the statutory requirements giving rise to the costs identified 
in each report under this section. 
‘‘(c) INFORMATION
FROM
POSTAL
SERVICE.—The 
Postal Service shall provide the Postal Regulatory Commis-
sion with such information as may, in the judgment of the 
Commission, be necessary in order for the Commission to 
prepare its reports under this section. 
‘‘§ 3652. Annual reports to the Commission 
‘‘(a) COSTS, REVENUES, AND RATES.—Except as pro-
vided in subsection (c), the Postal Service shall, no later 
than 90 days after the end of each year, prepare and submit 
to the Postal Regulatory Commission a report (together 
with such nonpublic annex thereto as the Commission may 
require under subsection (e))— 
‘‘(1) which shall analyze costs, revenues, and 
rates, using such methodologies as the Commission 
shall by regulation prescribe, and in sufficient detail 
to demonstrate that the rates in effect for all products 
during such year complied with all applicable re-
quirements of this title; and
‘‘(2) which shall, for each market-dominant 
product provided in such year, provide— 
‘‘(A) market information, including mail 
volumes; and 
‘‘(B) measures of the quality of service af-
forded by the Postal Service in connection with 
such product, including— 
‘‘(i) the service standard applicable to 
such product; 
‘‘(ii) the level of service (described in 
terms of speed of delivery and reliability) 
provided; and 
‘‘(iii) the degree of customer satisfac-
tion with the service provided. 
The Inspector General shall regularly audit the data collec-
tion systems and procedures utilized in collecting informa-
tion and preparing such report (including any annex there-
to and the information required under subsection (b)). The 
results of any such audit shall be submitted to the Postal 
Service and the Postal Regulatory Commission. 
‘‘(b) INFORMATION RELATING TO WORKSHARE DIS-
COUNTS.— 
‘‘(1) IN GENERAL.—The Postal Service shall in-
clude, in each report under subsection (a), the fol-
lowing information with respect to each market-domi-
nant product for which a workshare discount was in 
effect during the period covered by such report: 
‘‘(A) The per-item cost avoided by the Post-
al Service by virtue of such discount. 
‘‘(B) The percentage of such per-item cost 
avoided that the per-item workshare discount 
represents. 
‘‘(C) The per-item contribution made to in-
stitutional costs. 
‘‘(2) WORKSHARE
DISCOUNT
DEFINED.—For 
purposes of this subsection, the term ‘workshare dis-
count’ has the meaning given such term under section 
3687. 
‘‘(c) MARKET TESTS.—In carrying out subsections (a) 
and (b) with respect to experimental products offered 
through market tests under section 3641 in a year, the Post-
al Service— 
‘‘(1) may report summary data on the costs, rev-
enues, and quality of service by market test; and 
‘‘(2) shall report such data as the Postal Regu-
latory Commission requires. 
‘‘(d) SUPPORTING MATTER.—The Postal Regulatory 
Commission shall have access, in accordance with such reg-
ulations as the Commission shall prescribe, to the working 
papers and any other supporting matter of the Postal Serv-
ice and the Inspector General in connection with any infor-
mation submitted under this section. 
‘‘(e) CONTENT AND FORM OF REPORTS.— 
‘‘(1) IN GENERAL.—The Postal Regulatory Com-
mission shall, by regulation, prescribe the content and 
form of the public reports (and any nonpublic annex 
and supporting matter relating thereto) to be pro-
vided by the Postal Service under this section. In car-
rying out this subsection, the Commission shall give 
due consideration to— 
‘‘(A) providing the public with adequate in-
formation to assess the lawfulness of rates 
charged; 
‘‘(B) avoiding unnecessary or unwarranted 
administrative effort and expense on the part of 
the Postal Service; and 
‘‘(C) protecting the confidentiality of com-
mercially sensitive information. 
‘‘(2) REVISED
REQUIREMENTS.—The Commis-
sion may, on its own motion or on request of an in-
terested party, initiate proceedings (to be conducted 
in accordance with regulations that the Commission 
shall prescribe) to improve the quality, accuracy, or 
completeness of Postal Service data required by the
Commission under this subsection whenever it shall 
appear that— 
‘‘(A) the attribution of costs or revenues to 
products has become significantly inaccurate or 
can be significantly improved; 
‘‘(B) the quality of service data has become 
significantly inaccurate or can be significantly 
improved; or 
‘‘(C) those revisions are, in the judgment of 
the Commission, otherwise necessitated by the 
public interest. 
‘‘(f) CONFIDENTIAL INFORMATION.— 
‘‘(1) IN GENERAL.—If the Postal Service deter-
mines that any document or portion of a document, 
or other matter, which it provides to the Postal Regu-
latory Commission in a nonpublic annex under this 
section or pursuant to subsection (d) contains infor-
mation which is described in section 410(c) of this 
title, or exempt from public disclosure under section 
552(b) of title 5, the Postal Service shall, at the time 
of providing such matter to the Commission, notify 
the Commission of its determination, in writing, and 
describe with particularity the documents (or portions 
of documents) or other matter for which confiden-
tiality is sought and the reasons therefor.
‘‘(2) TREATMENT.—Any information or other 
matter described in paragraph (1) to which the Com-
mission gains access under this section shall be sub-
ject to paragraphs (2) and (3) of section 504(g) in the 
same way as if the Commission had received notifica-
tion with respect to such matter under section 
504(g)(1). 
‘‘(g) OTHER REPORTS.—The Postal Service shall sub-
mit to the Postal Regulatory Commission, together with any 
other submission that it is required to make under this sec-
tion in a year, copies of its then most recent— 
‘‘(1) comprehensive statement under section 
2401(e); 
‘‘(2) performance plan under section 2803; and 
‘‘(3) program performance reports under section 
2804. 
‘‘§ 3653. Annual determination of compliance 
‘‘(a) OPPORTUNITY FOR PUBLIC COMMENT.—After re-
ceiving the reports required under section 3652 for any 
year, the Postal Regulatory Commission shall promptly 
provide an opportunity for comment on such reports by 
users of the mails, affected parties, and an officer of the 
Commission who shall be required to represent the interests 
of the general public.
‘‘(b) DETERMINATION OF COMPLIANCE OR NONCOMPLI-
ANCE.—Not later than 90 days after receiving the submis-
sions required under section 3652 with respect to a year, 
the Postal Regulatory Commission shall make a written de-
termination as to— 
‘‘(1) whether any rates or fees in effect during 
such year (for products individually or collectively) 
were not in compliance with applicable provisions of 
this chapter (or regulations promulgated thereunder); 
‘‘(2) whether any performance goals established 
under section 2803 or 2804 for such year were not 
met; and 
‘‘(3) whether any market-dominant product 
failed to meet any service standard during such year. 
If, with respect to a year, no instance of noncompliance 
is found under this subsection to have occurred in such year, 
the written determination shall be to that effect. 
‘‘(c) IF ANY NONCOMPLIANCE IS FOUND.—If, for a 
year, a timely written determination of noncompliance is 
made under subsection (b), the Postal Regulatory Commis-
sion shall take appropriate action in accordance with sub-
sections (c)–(e) of section 3662 (as if a complaint averring 
such noncompliance had been duly filed and found under 
such section to be justified).
‘‘(d) REBUTTABLE PRESUMPTION.—A timely written 
determination described in the last sentence of subsection 
(b) shall, for purposes of any proceeding under section 3662, 
create a rebuttable presumption of compliance by the Postal 
Service (with regard to the matters described in paragraphs 
(1) through (3) of subsection (b)) during the year to which 
such determination relates. 
‘‘§ 3654. Additional financial reporting 
‘‘(a) ADDITIONAL FINANCIAL REPORTING.— 
‘‘(1) IN GENERAL.—The Postal Service shall file 
with the Postal Regulatory Commission beginning 
with the first full fiscal year following the effective 
date of this section— 
‘‘(A) within 35 days after the end of each 
fiscal quarter, a quarterly report containing the 
information required by the Securities and Ex-
change Commission to be included in quarterly 
reports under sections 13 and 15(d) of the Secu-
rities Exchange Act of 1934 (15 U.S.C. 78m, 
78o(d)) on Form 10-Q, as such Form (or any 
successor form) may be revised from time to 
time; 
‘‘(B) within 60 days after the end of each 
fiscal year, an annual report containing the in-
formation required by the Securities and Ex-
change Commission to be included in annual re-
ports under such sections on Form 10-K, as such 
Form (or any successor form) may be revised 
from time to time; and 
‘‘(C) periodic reports within the time frame 
and containing the information prescribed in 
Form 8-K of the Securities and Exchange Com-
mission, as such Form (or any successor form) 
may be revised from time to time. 
‘‘(2) REGISTRANT
DEFINED.—For purposes of 
defining the reports required by paragraph (1), the 
Postal Service shall be deemed to be the ‘registrant’ 
described in the Securities and Exchange Commission 
Forms, and references contained in such Forms to Se-
curities and Exchange Commission regulations are 
incorporated herein by reference, as amended. 
‘‘(3) INTERNAL CONTROL REPORT.—For purposes 
of defining the reports required by paragraph (1)(B), 
the Postal Service shall comply with the rules pre-
scribed by the Securities and Exchange Commission 
implementing section 404 of the Sarbanes-Oxley Act 
of 2002 (15 U.S.C. 7262), beginning with the annual 
report for fiscal year 2007. 
‘‘(b) FINANCIAL REPORTING.—
‘‘(1) The reports required by subsection (a)(1)(B) 
shall include, with respect to the Postal Service’s pen-
sion and post-retirement health obligations— 
‘‘(A) the funded status of the Postal Serv-
ice’s pension and ––postretirement health obliga-
tions; 
‘‘(B) components of the net change in the 
fund balances and obligations and the nature 
and cause of any significant changes; 
‘‘(C) components of net periodic costs; 
‘‘(D) cost methods and assumptions under-
lying the relevant actuarial valuations; 
‘‘(E) the effect of a one-percentage point in-
crease in the assumed health care cost trend rate 
for each future year on the service and interest 
costs components of net periodic postretirement 
health cost and the accumulated obligation; 
‘‘(F) actual contributions to and payments 
from the funds for the years presented and the 
estimated future contributions and payments for 
each of the following 5 years; 
‘‘(G) the composition of plan assets reflected 
in the fund balances; and
‘‘(H) the assumed rate of return on fund 
balances and the actual rates of return for the 
years presented. 
‘‘(2)(A) Beginning with reports for the fiscal 
year 2007, for purposes of the reports required under 
subparagraphs (A) and (B) of subsection (a)(1), the 
Postal Service shall include segment reporting. 
‘‘(B) The Postal Service shall determine the ap-
propriate segment reporting under subparagraph (A) 
after consultation with the Postal Regulatory Com-
mission. 
‘‘(c) TREATMENT.—For purposes of the reports re-
quired by subsection (a)(1)(B), the Postal Service shall ob-
tain an opinion from an independent auditor on whether 
the information listed in subsection (b) is fairly stated in 
all material respects, either in relation to the basic finan-
cial statements as a whole or on a stand-alone basis. 
‘‘(d) SUPPORTING MATTER.—The Postal Regulatory 
Commission shall have access to the audit documentation 
and any other supporting matter of the Postal Service and 
its independent auditor in connection with any informa-
tion submitted under this section. 
‘‘(e) REVISED REQUIREMENTS.—The Postal Regu-
latory Commission may, on its own motion or on request 
of an interested party, initiate proceedings (to be conducted
in accordance with regulations that the Commission shall 
prescribe) to improve the quality, accuracy, or completeness 
of Postal Service data required under this section whenever 
it shall appear that— 
‘‘(1) the data have become significantly inac-
curate or can be significantly improved; or 
‘‘(2) those revisions are, in the judgment of the 
Commission, otherwise necessitated by the public in-
terest. 
‘‘(f) CONFIDENTIAL INFORMATION.— 
‘‘(1) IN GENERAL.—If the Postal Service deter-
mines that any document or portion of a document, 
or other matter, which it provides to the Postal Regu-
latory Commission in a nonpublic annex under this 
section or pursuant to subsection (d) contains infor-
mation which is described in section 410(c) of this 
title, or exempt from public disclosure under section 
552(b) of title 5, the Postal Service shall, at the time 
of providing such matter to the Commission, notify 
the Commission of its determination, in writing, and 
describe with particularity the documents (or portions 
of documents) or other matter for which confiden-
tiality is sought and the reasons therefor. 
‘‘(2) TREATMENT.—Any information or other 
matter described in paragraph (1) to which the Com-
mission gains access under this section shall be sub-
ject to paragraphs (2) and (3) of section 504(g) in the 
same way as if the Commission had received notifica-
tion with respect to such matter under section 
504(g)(1).’’. 
SEC. 205. COMPLAINTS; APPELLATE REVIEW AND ENFORCE-
MENT. 
Chapter 36 of title 39, United States Code, is amended 
by striking sections 3662 and 3663 and inserting the fol-
lowing: 
‘‘§ 3662. Rate and service complaints 
‘‘(a) IN GENERAL.—Interested persons (including an 
officer of the Postal Regulatory Commission representing 
the interests of the general public) who believe the Postal 
Service is not operating in conformance with the require-
ments of chapter 1, 4, or 6, or this chapter (or regulations 
promulgated under any of those chapters) may lodge a com-
plaint with the Postal Regulatory Commission in such form 
and manner as the Commission may prescribe. 
‘‘(b) PROMPT RESPONSE REQUIRED.— 
‘‘(1) IN GENERAL.—The Postal Regulatory Com-
mission shall, within 90 days after receiving a com-
plaint 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 Commission 
fails to act in the time and manner required by para-
graph (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 Serv-
ice take such action as the Commission considers appro-
priate in order to achieve compliance with the applicable 
requirements and to remedy the effects of any noncompli-
ance (such as ordering unlawful rates to be adjusted to law-
ful levels, ordering the cancellation of market tests, ordering 
the Postal Service to discontinue providing loss-making 
products, or requiring the Postal Service to make up for 
revenue shortfalls in competitive products). 
‘‘(d) SUSPENSION AUTHORITY.—The Postal Regu-
latory Commission may suspend implementation of rates 
or classifications under section 3632(b)(3) for a limited pe-
riod of time pending expedited proceedings under this sec-
tion. In evaluating whether circumstances warrant suspen-
sion, the Commission shall consider factors such as (1) 
whether there is a substantial likelihood that such rate or 
classification will violate the requirements of chapter 1, 4, 
or 6, or this chapter (or regulations promulgated under any 
of those chapters), (2) whether any persons would suffer sub-
stantial injury, loss, or damage absent a suspension, (3) 
whether the Postal Service or any other persons would suffer 
substantial injury, loss, or damage under a suspension, and 
(4) the public interest. 
‘‘(e) AUTHORITY TO ORDER FINES IN CASES OF DE-
LIBERATE NONCOMPLIANCE.—In addition, in cases of delib-
erate noncompliance by the Postal Service with the require-
ments of this title, the Postal Regulatory Commission may 
order, based on the nature, circumstances, extent, and seri-
ousness of the noncompliance, a fine (in the amount speci-
fied by the Commission in its order) for each incidence of 
noncompliance. Fines resulting from the provision of com-
petitive products shall be paid out of the Competitive Prod-
ucts 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 District of 
Columbia. The court shall review the order or decision in 
accordance with section 706 of title 5, and chapter 158 and 
section 2112 of title 28, on the basis of the record before 
the Commission. For purposes of this section, the term ‘per-
son’ includes the Postal Service. 
‘‘§ 3664. Enforcement of orders 
‘‘The several district courts have jurisdiction specifi-
cally to enforce, and to enjoin and restrain the Postal Serv-
ice from violating, any order issued by the Postal Regu-
latory Commission.’’. 
SEC. 206. WORKSHARE DISCOUNTS. 
(a) IN GENERAL.—Title 39, United States Code, is 
amended by adding after section 3686 (as added by section 
406) the following: 
‘‘§ 3687. Workshare discounts 
‘‘(a) IN GENERAL.—As part of the regulations estab-
lished under section 3622(a), the Postal Regulatory Com-
mission shall establish rules for workshare discounts that 
ensure that such discounts do not exceed the cost that the
Postal Service avoids as the result of workshare activity, 
unless— 
‘‘(1) the discount is— 
‘‘(A) associated with a new postal service, a 
change to an existing postal service, or a new 
workshare initiative related to an existing postal 
service; and 
‘‘(B) necessary to induce mailer behavior 
that furthers the economically efficient operation 
of the Postal Service and the portion of the dis-
count in excess of the cost that the Postal Service 
avoids as a result of the workshare activity will 
be phased out over a limited period of time; 
‘‘(2) a reduction in the discount would— 
‘‘(A) lead to a loss of volume in the affected 
category or subclass of mail and reduce the ag-
gregate contribution to the institutional costs of 
the Postal Service from the category or subclass 
subject to the discount below what it otherwise 
would have been if the discount had not been re-
duced to costs avoided; 
‘‘(B) result in a further increase in the 
rates paid by mailers not able to take advantage 
of the discount; or
‘‘(C) impede the efficient operation of the 
Postal Service; 
‘‘(3) the amount of the discount above costs 
avoided— 
‘‘(A) is necessary to mitigate rate shock; 
and 
‘‘(B) will be phased out over time; or 
‘‘(4) the discount is provided in connection with 
subclasses of mail consisting exclusively of mail mat-
ter of educational, cultural, scientific, or informa-
tional value. 
‘‘(b) REPORT.—Whenever the Postal Service establishes 
or maintains a workshare discount, the Postal Service shall, 
at the time it publishes the workshare discount rate, submit 
to the Postal Regulatory Commission a detailed report 
that— 
‘‘(1) explains the Postal Service’s reasons for es-
tablishing or maintaining the rate; 
‘‘(2) sets forth the data, economic analyses, and 
other information relied on by the Postal Service to 
justify the rate; and 
‘‘(3) certifies that the discount will not adversely 
affect rates or services provided to users of postal serv-
ices who do not take advantage of the discount rate.
‘‘(c) DEFINITION.—For purposes of this section, the 
term ‘workshare discount’ refers to rate discounts provided 
to mailers for the presorting, prebarcoding, handling, or 
transportation of mail, as further defined by the Postal Reg-
ulatory Commission under section 3622(a).’’. 
(b) CLERICAL AMENDMENT.—The analysis for chapter 
36 of title 39, United States Code (as amended by section 
207) is amended by adding after the item relating to section 
3686 the following: 
‘‘3687. Workshare discounts.’’. 
SEC. 207. CLERICAL AMENDMENT. 
Chapter 36 of title 39, United States Code, is amended 
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. 
‘‘3626. Reduced rates. 
‘‘3627. Adjusting free rates. 
‘‘3629. Reduced rates for voter registration purposes. 
‘‘SUBCHAPTER II—PROVISIONS RELATING TO COMPETITIVE PRODUCTS 
‘‘3631. Applicability; definitions and updates. 
‘‘3632. Action of the Governors. 
‘‘3633. Provisions applicable to rates for competitive products. 
‘‘3634. Assumed Federal income tax on competitive products. 
‘‘SUBCHAPTER III—PROVISIONS RELATING TO EXPERIMENTAL AND NEW 
PRODUCTS 
‘‘3641. Market tests of experimental products. 
‘‘3642. New products and transfers of products between the market-dominant and 
competitive categories of mail.